Alabama House Bill HB214 Introduced / Bill

                    HB214INTRODUCED
Page 0
PI45GG-1
By Representative Brown
RFD: Insurance
First Read: 23-Mar-23
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5 PI45GG-1 03/21/2023 CMH (L)bm 2023-888
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SYNOPSIS:
Existing law provides the Home Builders
Licensure Board with authority to adopt residential
building codes and standards of practices for
residential home builders within this state and allows
county commissions and municipalities to adopt building
laws and codes within their respective jurisdictions.
This bill would create the Alabama Residential
Building Code Advisory Council to recommend an Alabama
Residential Building Code, to be based upon the
International Residential Code and the residential
chapters of the International Energy Conservation Code,
to be adopted by the Home Builders Licensure Board.
This bill would require counties and
municipalities that enforce residential building laws
or codes, when adopting new codes or amending existing
codes, to adopt or amend the codes in accordance with
the minimum standards set by the Alabama Residential
Building Code.
This bill would require residential home
builders in this state to build, renovate, and repair
residences in accordance with the minimum standards set
by the Alabama Residential Building Code.
This bill would establish the Alabama
Residential Building Code Division within the Home
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Builders Licensure Board and provide for the authority
and jurisdiction of the division.
This bill would establish the Alabama
Residential Building Code Fund within the State
Treasury and would provide for the distribution of
funds and administration thereof by the Alabama
Residential Building Code Division for purposes of
implementing the Alabama Residential Building Code.
This bill would allow the Alabama Residential
Building Code Division to provide funds for grants
designed to promote residential building code
enforcement operations among local jurisdictions.
This bill would change the name of the Alabama
Energy and Residential Codes Board to the Alabama
Commercial Energy Code Board and would further provide
for the membership of the board.
A BILL
TO BE ENTITLED
AN ACT
Relating to building codes; to amend Section 27-2-39,
Code of Alabama 1975, to provide for a portion of fees and
taxes collected by the Department of Insurance to the Alabama
Residential Building Code Fund; to designate Sections 34-14A-1
through 34-14A-20 as Article 1 of Chapter 14A of Title 34,
Code of Alabama 1975; to amend Sections 34-14A-1, 34-14A-2,
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34-14A-7, 34-14A-12, 34-14A-20, Code of Alabama 1975, to
provide for the establishment of the Alabama Residential
Building Code and its authority; to further provide for the
practice of residential home building; to further provide for
the duties of the Home Builders Licensure Board; to add
Article 2, commencing with Section 34-14A-41, to Chapter 14A
of Title 34, Code of Alabama 1975, to establish the Alabama
Residential Building Code Division within the Home Builders
Licensure Board and provide for its duties; to establish the
Alabama Residential Building Code Fund in the State Treasury
and provide for its administration; to add Article 6A,
commencing of Section 41-9-175, to Chapter 9 of Title 41, Code
of Alabama 1975, to establish the Alabama Residential Building
Code Advisory Council and provide for its membership and
duties; to amend Sections 41-23-80, 41-23-81, 41-23-82,
41-23-84, 41-23-85, Code of Alabama 1975, to provide for the
change of the name of the Alabama Energy and Residential Codes
Board to the Alabama Commercial Energy Code Board and further
provide for the membership of the board; and to provide
requirements for certain local building codes adopted or
amended after a date certain.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 27-2-39, Code of Alabama 1975, is
amended to read as follows:
"§27-2-39
(a) There is created a fund in the State Treasury
designated the Insurance Department Fund to be used for the
operation of the Department of Insurance. Receipts deposited
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into this fund shall be disbursed only by warrants of the
state Comptroller drawn upon the State Treasury on itemized
vouchers approved by the Commissioner of Insurance. No funds
shall be withdrawn or expended except as budgeted and allotted
according to Sections 41-4-80 to 41-4-96, inclusive, and
41-19-1 to 41-19-12, inclusive, and only in amounts as
stipulated in the general appropriations act, other
appropriation acts, or this section. At the end of each fiscal
year, any unencumbered and unexpended balance of up to 25
percent of the amount appropriated for that fiscal year shall
not revert to the State General Fund under Section 41-4-93,
but shall carry over to the next fiscal year.
(b) Notwithstanding any other provision of law, the
Commissioner of Insurance shall promptly pay all sums, fees,
taxes, licenses, renewals, and other miscellaneous charges
collected pursuant to Sections 27-2-16, 27-3-29, 27-4-2,
27-13-5, 27-13-24, 27-13-62, 27-21A-21, 27-34-6, 27-34-36,
27-34-47, and 27-39-6, other than those fines, penalties, and
deposit requirements collected pursuant to Section 27-3-29,
into the State Treasury with 50 to be distributed as follows:
(1) Fifty percent credited to the Insurance Department
Fund;.
(2) Five percent credited to the Alabama Residential
Building Code Fund.
(3) Forty-five percent credited as follows:
a. The first one million five hundred thousand dollars
($1,500,000) credited collected each fiscal year to be
credited to the Center for Risk and Insurance Research Fund ;
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and the remainder .
b. The remaining balance credited to the State General
Fund."
Section 2. Sections 34-4A-1 through 34-14A-20 are
designated as Article 1 of Chapter 14A, Title 34, Code of
Alabama 1975.
Section 3. Sections 34-14A-1, 34-14A-2, 34-14A-7,
34-14A-12, and 34-14A-20, Code of Alabama 1975, are amended to
read as follows:
"§34-14A-1
(a) In the interest of the public health, safety,
welfare, and consumer protection , and to regulate the home
building and private residence construction industry, the
purpose of this chapter , and the intent of the Legislature in
passing it, is to:
(1) To provide for the licensure of those persons who
engage in home building, private residence construction, and
home improvement industries, including remodeling , and to.
provide home building standards 
(2) To establish an Alabama Residential Building Code.
(3) To provide guidance, assistance, promotion, and
support for code inspections of residential construction.	and
to
(4) To support education within the construction trades
and construction inspections in the State of Alabama.
(b) The Legislature recognizes that the home building
and home improvement construction industries are significant
industries. Home builders may pose significant and that
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significant harm to the public may result from the provision
of when unqualified, incompetent, or dishonest home builders
and remodelers provide inadequate, unsafe, or inferior
building services by unqualified, incompetent, or dishonest
home builders and remodelers . The Legislature finds it
necessary to regulate the residential home building and home
improvement industries."
"§34-14A-2
As used in this chapter, the following terms shall have
the following meanings, respectively, unless the context
clearly indicates otherwise:
(1) ADVERTISING. Engaging or offering to engage in any
acts or services as a residential home builder by the act or
practice of offering for sale professional services by
promoting those services through print, radio or television
media, on billboards, through social media, through
promotional sponsorships, on vehicles, by the placement of
signs in front of ongoing or completed worksites, or by
displaying credentials, including licensure, to perform
residential home building.
(2) ALABAMA RESIDENTIAL BUILDING CODE. The code adopted
by the board, as amended by the board, and based on a
published edition of the International Residential Code, and
the residential chapters of a published edition of the
International Energy Conservation Code.
(3) APPLICABLE RESIDENTIAL BUILDING CODE. The Alabama
Residential Building Code or a local residential building code
adopted by a county or municipality, pursuant to this chapter,
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where the construction, renovation, or repairs will take
place.
(1) ADVISORY COUNCIL. The Alabama Construction Trade
Advisory Council.
(2)(4) BOARD. The Home Builders Licensure Board.
(5) BUILDING INSPECTOR. An individual who performs
inspections upon any structure governed by this chapter on
behalf of any local or state governing authority or as a
private code inspector as provided in this chapter.
(6) CODE INSPECTION. The oversight, review, and
approval of the phases of residential home building,
including, but not limited to, the inspection of foundation,
framing, plumbing, electrical, heating, ventilation, air
conditioning, roof, rough-in, and final inspection phase,
conducted on behalf of either a local or state governing
authority or by a private code inspector as required by a
local jurisdiction or the Alabama Residential Building Code.
(3)(7) COST OF THE UNDERTAKING. The total cost of the
materials, labor, supervision, overhead, and profit.
(8) COUNCIL. The Alabama Residential Building Code
Advisory Council.
(9) DIVISION. The Alabama Residential Building Code
Division.
(4)(10) HOMEOWNER. A person who owns and resides in or
intends to reside in a structure constructed or remodeled by a
licensee of the board, or who contracts with a licensee for
the purchase, construction, repair, improvement, or
reimprovement of a structure to be used as a residence.
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(5)(11) IMPROVEMENT. Any site-built addition or
enhancement attached to or detached from a residence or
structure for use and enjoyment by the homeowner.
(6)(12) INACTIVE LICENSE. A license issued at the
request of a licensee, or a building official or a building
inspector, that is renewable, but that is not currently valid.
(7)(13) LICENSE. Any license issued by the board
pursuant to this chapter.
(8)(14) LICENSEE. A holder of any license issued
pursuant to this chapter.
(9)(15) PERSON. Any natural person individual, limited
or general partnership, corporation, association, limited
liability company, or other legal entity, or any combination
thereof.
(10)(16) QUALIFYING REPRESENTATIVE. The individual
designated by a general partnership, limited partnership,
corporation, limited liability company, or not-for-profit
organization applying for a license who either holds a license
individually or meets the experience and ability requirements
for licensure, and who is one of the following:
a. A general partner in the case of any partnership.
b. An officer in the case of a corporation.
c. A member in the case of a member-managed limited
liability company.
d. A manager in the case of a manager-managed limited
liability company.
e. An individual who is affiliated with one of the
member entities of the limited liability company and who has
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been identified and authorized through the operating agreement
to manage day-to-day operations as it relates to operations of
the limited liability company for purposes of licensure.
(11)(17) RESIDENCE. A single unit providing complete
independent residential living facilities for one or more
persons, including permanent provisions for living, sleeping,
eating, cooking, and sanitation.
(12)(18) RESIDENTIAL HOME BUILDER. A person who
constructs a residence or structure for sale or who, for a
fixed price, commission, fee, or wage, undertakes or offers to
undertake the construction or superintending of the
construction, or who manages, supervises, assists, or provides
consultation to a homeowner regarding the construction or
superintending of the construction, of any residence or
structure that is not over three floors in height and that
does not have more than four residential units, or the repair,
improvement, or reimprovement thereof, to be used by another
as a residence when the cost of the undertaking exceeds ten
thousand dollars ($10,000). Notwithstanding the foregoing, the
term includes a residential roofer when the cost of the
undertaking exceeds two thousand five hundred dollars
($2,500). Nothing herein shall prevent any person from
performing these acts on his or her own residence or on his or
her other real estate holdings. Anyone who engages or offers
to engage in any acts described in this subdivision, through
advertising or otherwise, shall be deemed to have engaged in
the business of residential home building.
(13)(19) RESIDENTIAL ROOFER. A person who installs
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products or repairs surfaces on the external upper covering of
a residence or structure that seals, waterproofs, or
weatherproofs the residence or structure.
(14)(20) STRUCTURE. A residence on a single lot,
including a site-built home, a condominium, a duplex or
multi-unit residential building consisting of not more than
four residential units, or any improvement thereto.
(15)(21) TRANSACTION. The act of entering into a
contract with a licensee to engage in the business of
residential home building."
"§34-14A-7
(a) Any residential home builder who desires to receive
a new or renewal license under this chapter shall make and
file with the board 30 days prior to the next meeting of the
board a written application on a form prescribed by the board.
Each applicant shall be a citizen of the United States or, if
not a citizen of the United States, a person who is legally
present in the United States with appropriate documentation
from the federal government. Such The application shall be
accompanied by the payment of the annual license fee required
by the board. After the board accepts the application, the
applicant may be examined by the board at its next meeting.
The board, in examining the applicant, shall consider the
following qualifications of the applicant:
(1) Experience.
(2) Ability.
(3) Character.
(4) Business-related financial condition.
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a. The board may require a financial statement on a
form prescribed by the board and a public records search
directly from a credit reporting agency.
b. The board may require a positive net worth or other
evidence of business-related financial condition sufficient to
reasonably satisfy the board of the applicant's financial
responsibility.
c. The board may require that business-related
judgments, judgment liens, and other perfected liens must be
satisfied and released.
d. Any information obtained by the board pursuant to
this subsection relating to the financial condition of an
applicant shall not be public information.
(5) Ability and willingness to serve the public and
conserve the public health and safety.
(6) Any other pertinent information the board may
require.
(b)(1) If the board finds the applicant qualified to
engage in residential home building in Alabama, the applicant
shall be issued a license. An applicant rejected by the board
shall be given an opportunity to be reexamined after a new
application has been filed and an additional application fee
paid.
(2) A record shall be made and preserved by the board
of each examination and the findings of the board pertaining
to the examination. A copy of the record shall be made
available to any applicant requesting it upon the payment of a
reasonable fee to the board.
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(c) The board, by rule, may require proof of and
maintenance of insurance as a qualification for licensure.
(d) The board, by rule, may establish or adopt, or
both, education requirements and may approve, administer, or
financially support the program or programs providing
residential construction education.
(e)(1) Each licensee shall notify the board within 10
days after notice of the institution of any criminal
prosecution against him or her. The notification shall be in
writing, by certified mail, and shall include a copy of the
specific charge made together with a copy of the indictment,
information, or complaint, affidavit, and warrant making the
charges.
(2) Each licensee shall notify the board in writing by
certified mail within 10 days after he or she receives the
notice that any criminal verdict has been rendered against him
or her, or that a criminal action pending against him or her
has been dismissed.
(f) Each licensee shall utilize use a valid written
contract when engaging in the business of residential home
building. In addition to any other requirements provided by
law, the contract shall contain the licensee's license number
issued by the board.
(g) Whenever a licensee engages in advertising, the
licensee shall ensure that the licensee's valid license number
issued by the board is displayed.
(h) A contract for the performance of work and
activities for which a license is required by this chapter
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shall provide the following disclosure information:
(1) That the work is performed in compliance with
either the adopted residential building code in a local
jurisdiction or the Alabama Residential Building Code as
adopted by the board and enforced in those local jurisdictions
without an adopted residential building code.
(2) Unless the inspection has been waived pursuant to
subsection (i), that the work has been inspected by the local
jurisdiction or inspected by private code inspectors where the
local jurisdiction does not have an inspection program; except
that if a local jurisdiction has not adopted a residential
building code or does not have an inspection program, the
local jurisdiction shall not be responsible for the conduct of
a private code inspector.
(i) A residential building code inspection may be
waived only as provided in this subsection:
(1) A homeowner, subject to the provisions of Section
34-14A-6, or a licensee, may waive code inspections within a
local jurisdiction without an adopted residential building
code. The waiver shall include both of the following:
a. A signed acknowledgment by the homeowner that
mortgage and insurance providers may require proof of code
inspections as a condition of lending and insuring.
b. Any code inspection rebate voucher for which the
homeowner is eligible, as well as the rebate voucher
requirements when private code inspections are the only
option.
(2) Prior to the commencement of any construction on a
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residential structure within a local jurisdiction without an
adopted residential building code or inspection program, a
licensee may waive a private code inspection on the
residential structure by doing all of the following:
a. Disclosing the waiver in any contract for purchase
or sale within the local jurisdiction.
b. Disclosing to the homeowner that the homeowner may
request a code inspection of the work to the extent
practicable and that code inspections may be required by
insurance and mortgage providers.
c. Disclosing to the homeowner, prior to a contract for
purchase of the residential structure, that any code
inspections have been waived.
d. Having the waiver of private code inspections signed
by the homeowner and the licensee.
(3)a. Except as provided in paragraph b., no
inspections shall be waived in a local jurisdiction with an
adopted residential building code.
b. In a local jurisdiction with an adopted residential
building code, where the local jurisdiction only permits but
does not inspect, or that performs some but not all
inspections, only the non-inspected phases by the local
jurisdiction may be waived, provided the applicable disclosure
requirements described in subdivisions (1) or (2) are made.
(4) A local jurisdiction that has not adopted a
residential building code or does not have an inspection
program shall not be responsible for any harm related to
residential construction that occur following the execution of
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a waiver.
(g)(j) When any residential home building to be
performed will comply with a program designed to enhance the
resiliency of the structure beyond the requirements of the
applicable building codes, the licensee shall disclose this
compliance to the homeowner in writing prior to the
commencement of the residential home building.
(h)(1)(k)(1) Any licensee who desires to receive an
inactive license shall make and file with the board a written
application for an inactive license on a form prescribed by
the board prior to the expiration of his or her current
license. The application shall be accompanied by the payment
of the annual inactive license fee required by the board. No
act for which a license is required may be performed under an
inactive license. In the event a person holding a current
inactive license applies for a license, he or she may rely
upon his or her inactive license as evidence of the experience
and ability requirements for licensure under subdivisions (1)
and (2) of subsection (a).
(2) A person holding an expired license who seeks to
reactivate his or her license within three years of the date
of expiration shall be deemed to have satisfied the experience
and ability requirements for licensure if application is made
within the three-year time period and all other licensing
requirements pursuant to subsection (a) have been met.
(3) Any building official or building inspector who
desires to receive an inactive license shall make and file
with the board 30 days prior to the next meeting of the board
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a written application for an inactive license on a form
prescribed by the board. After the board accepts the
application, the applicant may be examined by the board at its
next board meeting. The board, in examining the applicant,
shall consider the following qualifications of the applicant
as satisfying the experience and ability requirements for
licensure:
a. That the building inspector is an employee of the
United States, the State of Alabama, or any municipality,
county, or other political subdivision and, by virtue of that
employment, is exempted or prohibited by law from holding a
license; and
b. That the building inspector does any of the
following:
1. Maintains current certification from the Southern
Building Code Congress International as one of the following:
(i) Chief building official.
(ii) Deputy building official.
(iii) Building inspector.
(iv) Housing inspector.
(v) Design professional.
(vi) Plan reviewer.
2. Maintains current certification from the
International Code Council as one of the following:
(i) Certified building official.
(ii) Building inspector.
(iii) Residential building inspector.
(iv) Property maintenance and housing inspector.
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(v) Building plans examiner.
(vi) Design professional.
3. Possesses sufficient building qualifications and
experience to receive a license, as demonstrated by
satisfactory evidence presented to the board.
(4) In the event a building official or building
inspector holding a current inactive license applies for a
license, he or she may rely upon his or her inactive license
as evidence of the experience and ability requirements for
licensure under subdivisions (1) and (2) of subsection (a)."
"§34-14A-12
(a) The board may establish or adopt residential
building codes and standards of practice for residential home
builders within the state. A residential building code or
standard of practice adopted or established by the board does
not supersede or otherwise exempt residential home builders
from a local building law or code adopted by the governing
body of a county or municipality or from a local or general
law.
(a)(1) The board shall adopt a minimum statewide
residential building code, called the Alabama Residential
Building Code, based upon the recommendations of the Alabama
Residential Building Code Advisory Council pursuant to 
Article 6A of Chapter 9 of Title 41.
(2) The board shall establish minimum standards for
private code inspectors for the areas of the state where no
local jurisdiction is operating a residential permitting and
inspection program.
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(b)(1) This section shall be the sole statewide
statutory authority establishing minimum standards for
residential construction within this state.
(2) A local building code adopted or amended by any
county or municipality after October 1, 2023, shall meet the
minimum standards of the Alabama Residential Building Code in
effect at the time of the local building code adoption or
amendment and shall not exceed the energy provisions of the
Alabama Residential Building Code, unless compliance with any
federal mandate requires such adoption or amendment.
(3) Notwithstanding any other provision of law to the
contrary:
a. The Alabama Residential Building Code does not
supersede any local residential building code adopted by any
county or municipality prior to October 1, 2023.
b. The Alabama Residential Building Code does not apply
to any agricultural building except for any residence
contained therein.
(b)(c)(1) The county commissions of the several
counties A county commission, by resolution, may adopt
building laws and codes by ordinance which that shall apply in
the unincorporated areas of the county. The county commission
shall provide a copy of any resolution adopted pursuant to
this subsection to the board within 10 business days of
adopting the resolution.
(2) A local building law or code adopted pursuant to
this subsection may not take effect until 120 days after the
resolution was adopted; provided, in the case of an insurance
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claim requiring work and activities for which a license is
required by this chapter, the effective date for the building
law or code shall be the date of adoption by the local
jurisdiction.
(3) TheExcept as provided in Section 11-40-10(b)(2),
the building laws and codes of the county commission shall not
apply within any municipal police jurisdiction outside of the
corporate limits of the municipality , in which that
municipality is exercising its building laws or codes, without
the express consent of the governing body of that
municipality. The building laws and codes of the county
commission may apply within the corporate limits of any
municipality only with the express consent of the governing
body of the municipality.
(4) The county commission may employ building
inspectors to see that its laws or codes are not violated and
that the plans and specifications for buildings are not in
conflict with the ordinanceslaws and codes of the county and
may exact fees to be paid by the owners of the property
inspected.
(5) The county commission, by resolution, may
discontinue its administration and enforcement of the building
laws and codes. However, the discontinuation shall not take
effect until 120 days after the resolution was adopted. The
county commission shall provide a copy of the resolution to
the board within 10 business days of adopting the resolution.
(c)(d) Utilizing the same authority and procedures as
municipalities pursuant to Sections 11-53A-20 to 11-53A-26,
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inclusive, the county commission may condemn buildings, parts
of buildings, or structures dangerous to the public and
prohibit the use thereof and abate the same as a nuisance.
(d)(e) The county commissions, municipalities, and
other public entities may enter into mutual agreements,
compacts, and contracts for the administration and enforcement
of their respective building laws and codes. A county
commission or municipality shall provide a copy of the mutual
agreement, compact, or contract to the board within 10
business days of its execution.
(f) A county commission or municipality shall provide
to the board a copy of any resolution, ordinance, or agreement
adopted pursuant to Section 11-40-10(b)(2) within 10 business
days of its adoption.
(g) Nothing in this section shall be construed to
restrict the power of any county or municipality to adopt and
enforce local building laws or codes that either comply with
or exceed the minimum standards of the Alabama Residential
Building Code; provided the local laws or codes are adopted or
amended in accordance with this chapter. "
"§34-14A-20
(a) The Alabama Construction Trade Academy Fund is
established in the State Treasury. The fund shall be comprised
of federal, state, and private funding through direct
budgetary funding and grants for the expansion of construction
trade education. To the extent practicable, monies in the fund
shall be used to leverage other forms of funding from private
sources. A percentage of matching funds, as established by the
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advisory council, must come from private, non-governmental
sources. The board may not use more than 15 percent of the
monies in the fund for administrative and operational costs
incurred in the implementation and administration of this
section.
(b) The board, in cooperation with public and private
sector partners, shall establish a program to provide funding
mechanisms for tool grants, program incentives, supplies,
mobile facilities, and other programs to support the
development and continuation of construction trade education
programs in the state.
(c) The board shall administer the program and shallmay
apply for funds from federal grant programs and other
applicable funding sources authorized by law.
(d)(1) The Alabama Construction Trade Advisory Council
is established. The advisory council shall consist of the
following members:
a. One member appointed by and currently serving on the
Home Builders Licensure Board.
b. One member appointed by and currently serving on the
State of Alabama Plumbers and Gas Fitters Examining Board.
c. One member appointed by and currently serving on the
Licensing Board for General Contractors.
d. One member appointed by and currently serving on the
State Board of Heating, Air Conditioning, and Refrigeration
Contractors.
e. One member appointed by and currently serving on the
Alabama Board of Electrical Contractors.
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f. One appointee of the State Department of Education
who specializes in technical trade education.
g. One appointee of the Alabama Community College
System who specializes in technical trade education.
(2) Members of the advisory council shall be appointed
for a period of one year. Membership on the advisory council
shall be without compensation, except for reimbursement of
necessary travel expenses as is paid to state employees for
attending meetings and other necessary events of the advisory
council. Any expenses paid to a member of the advisory council
shall be paid by the member's appointing authority.
(e) The advisory council shall make recommendations to
the board, and the board shall establish program guidelines,
promote the program statewide, evaluate applications for
funds, distribute funds, and monitor and report the effect of
the funding on the availability of construction trade
education. The board may adopt rules to implement and
administer this section.
(f) The advisory council shall recommend and the board
shall establish monitoring and accountability mechanisms for
projects receiving funding. Not later than the fifth
legislative day of each regular legislative session, the board
shall file a report to the Legislature on the projects funded,
the geographic distribution of projects funded, the private
sector participation rates in funded projects, the
administrative costs of the program, and the outcomes of the
program, including the number of students and adult learners
trained by each project funded through the program.
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(g) The advisory council shall recommend and the board
shall create eligibility guidelines and provide project
funding through an application process. Projects eligible for
funding include the following:
(1) Mobile demonstration units that show the various
systems of a structure and how they interconnect.
(2) Tool and supply grants for public and private
educational providers that provide construction trade
education.
(3) Incentives for newly established construction trade
education courses, with priority given to carpentry courses.
(4) Adult education initiatives that provide continued
learning opportunities through mobile training facilities or
distance learning opportunities with priority focus on those
serving underserved areas and widely offered trainings.
(5) Any other proposal that in the opinion of the board
would address the need for construction trade education in the
state.
(h) An applicant may be a nonprofit organization,
not-for-profit entity, public school system, two-year college,
university, or other governmental entity. An applicant for
funding shall do all of the following:
(1) Demonstrate its capacity to successfully implement
the proposal.
(2) Demonstrate how the proposal shall positively
impact construction trade education in the state.
(3) Demonstrate private sector support through matching
funding.
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(4) Establish an advisory council consisting of at
least three active trade representatives from the construction
trade being funded.
(5) For a period of not less than five years, agree to
comply with the following conditions:
a. Offer the courses funded through this section for a
period of not less than five years.
b. Comply with all data collection and reporting
requirements established by the board.
(i) In determining which qualified projects to fund,
the board shall consider all of the following factors:
(1) The level of private sector support for the
project.
(2) The level of need in the area in which the funding
is directed.
(3) The projected number of students that will be
served.
(4) The degree to which the project will have a
positive impact on the availability of construction trade
education in the area to be served.
(5) The degree to which the project will leverage
public and private sector funds.
(j) The board shall establish program guidelines that
require matching funds on all funded projects. A minimum of 10
percent of matching funds shall be provided by private,
non-governmental sources. Total matching funds required may
not be required to exceed 25 percent of awarded state funds,
although additional consideration may be provided to projects
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that exceed this amount.
(k) In the event that a recipient of funding provided
by this section fails to provide the proposed project in
accordance with the guidelines set forth by the board, any
equipment, supplies, or materials acquired with the funding
shall be transferred to the Alabama Home Builders Foundation
for redistribution to public or private programs that provide
construction trade education to high school, postsecondary, or
adult learners supported by this section.
(l) Any and all proceeds from the sale of equipment,
supplies, or materials acquired through academy funding shall
go into the fund."
Section 4. Sections 34-14A-12.1 and 34-14A-12.2 are
added to the Code of Alabama 1975, to read as follows:
§34-14A-12.1
Beginning January 1, 2027, a residential home builder
within this state who constructs, renovates, or repairs a
residence or structure shall do so in accordance with the
Alabama Residential Building Code adopted pursuant to Section
34-14A-12 or, if applicable, the local jurisdiction's
residential building code.
§34-14A-12.2
(a) When a residential home builder completes
residential construction, renovation, or repair work or
activities for which a license is required by this chapter,
the homeowner shall provide to the insurance and mortgage
provider all code inspection reports, the certification of
occupancy, or if applicable, any executed waiver of code
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inspections signed by the homeowner and licensee, as provided
in Section 34-14A-7.
(b) After closing or receiving the certificate of
insurance, the homeowner, pursuant to policies established by
the board by rule, may apply for a rebate voucher for the
private code inspection of work performed by a licensee.
(c)(1) The board shall adopt rules to establish the
specific eligibility requirements and amount of rebate
voucher.
(2) A homeowner shall be ineligible for a rebate
voucher if the inspected residence or structure was subject to
a local jurisdiction's permitting and inspection program.
§34-14A-12.3
(a) Beginning on October 1, 2023, the Home Builders
Licensure Board and any municipal or county governing body may
not adopt or amend a building code, ordinance, resolution, or
rule that would restrict a consumer's ability to elect to
install, by the consumer's choice and for a fee, or require
the installation of, a residential fire sprinkler system in
any residence. 
(b) Notwithstanding subsection (a), a county commission
or municipal governing body that adopted any ordinance,
resolution, or other building code on or before March 9, 2010,
relating to the installation of a residential fire sprinkler
system, may continue to enforce or amend the ordinance,
resolution, or building code.
Section 5. Article 2, commencing with Sections
34-14A-41, is added to Chapter 14A of Title 34, Code of
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Alabama 1975, to read as follows:
Article 2.
§34-14A-41
(a)(1) The Alabama Residential Building Code Division
is established within the Home Builders Licensure Board. The
executive director of the board may employ staff as necessary
to carry out the duties of the division.
(2) The board and the division's statutory
administration and enforcement obligations pursuant to this
chapter shall be contingent upon the appropriation of funding.
(b) The division shall be responsible for taking action
upon any and all recommendations made by the Alabama
Residential Building Code Advisory Council and ratified by the
board for the furtherance of its statutory purpose.
§34-14A-42
The executive director of the board may employ staff
necessary to carry out the duties of the division, including a
division administrator, programs support personnel,
administrative support personnel, and any other personnel
necessary to carry out the statutory purpose of the division
for the administration, implementation, and enforcement of the
Alabama Residential Building Code.
§34-14A-43
(a) The division shall use funds distributed to the
Alabama Residential Building Code Fund for the purpose of
administrating and enforcing the Alabama Residential Building
Code.
(b) The division shall do all of the following:
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(1) Establish and administer a rebate voucher program
for homeowners to seek reimbursement for private code
inspections, where applicable, for work performed by
licensees.
(2) Provide funds to local jurisdictions to assist with
residential building code adoption and enforcement, including,
but not limited to, assisting with the development of local
government cooperatives for the permitting, inspection, and
enforcement of a residential building code in the respective
jurisdiction.
(3) Provide standards and certification requirements
for private code inspectors, including, but not limited to,
International Code Council certifications, licensed
architects, licensed structural engineers, and licensed home
builders.
(4) Provide incentives for and promote code inspectors
for local jurisdictions that do not have a residential
building permit and inspection program.
(c) The division may apply for funds from federal grant
programs and other applicable funding sources authorized by
law to support local adoption and implementation of the
Alabama Residential Building Code. The division may also
partner with other state agencies to receive and distribute
additional funds that may become available for this purpose.
(d) The division shall work with the State Energy
Office to ensure that all applicable federal regulations
regarding the residential energy code are met.
§34-14A-44
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(a) For those structures located outside of any local
jurisdiction that exercises its authority to adopt and enforce
a local building code, if the private code inspection has not
been conducted, the division shall authorize construction to
resume on the beginning of the following third business day
after a licensee has requested an inspection.
(b) The board shall establish a process of
documentation, which may include a self-reporting form,
electronic verification, photographic or video verification,
or any other method the board deem appropriate, that the home
builder shall perform and provide to the division and
inspector prior to resumption of construction.
§34-14A-45
(a) The Alabama Residential Building Code Fund is
established within the State Treasury. The fund shall be
administered by the board for the administration and operation
of the division and the enforcement of the Alabama Residential
Building Code.
(b) Receipts deposited into the fund shall be disbursed
only by warrants of the state Comptroller drawn upon the State
Treasury on itemized vouchers approved by the Executive
Director of the board.
(c) No funds shall be withdrawn or expended except as
budgeted and allotted according to Sections 41-4-80 to
41-4-96, Code of Alabama 1975, inclusive, and 41-19-1 to
41-19-12, Code of Alabama 1975, inclusive, and only in amounts
as stipulated in the general appropriations act, other
appropriation acts, or this section.
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(d) At the end of each fiscal year, any unencumbered
balance of up to 25 percent of the amount appropriated for
that fiscal year shall not revert to the State General Fund
under Section 41-4-93, but shall carry over to the next fiscal
year within the Alabama Residential Building Code Fund, and
any unencumbered balance over 25 percent of the amount
appropriated for that fiscal year shall be transferred to the
Strengthen Alabama Homes Fund.
Section 6. Article 6A, commencing of Section 41-9-175,
is added to Chapter 9 of Title 41, Code of Alabama 1975, to
read as follows:
Article 6A.
§41-9-175
(a) The Alabama Residential Building Code Advisory
Council is established. 
(b) The council shall consist the following members:
(1) The Commissioner of Insurance, or his or her
designee.
(2) The State Fire Marshal, or his or her designee.
(3) The Director of the Emergency Management Agency, or
his or her designee.
(4) The Executive Director of the Home Builders
Licensure Board, or his or her designee.
(5) One member appointed by the Home Builders Licensure
Board.
(6) One member appointed by the State Board of Heating,
Air Conditioning, and Refrigeration Contractors.
(7) One member appointed by the Governor to represent
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the private, investor-owned, electric utility industry.
(8) One member appointed by the Lieutenant Governor to
represent the natural gas industry.
(9) One member appointed by the American Council of
Engineering Companies of Alabama.
(10) One member appointed by the Alabama League of
Municipalities.
(11) One member appointed by the Association of County
Commissions of Alabama.
(12) One member appointed by the Alabama Council of the
American Institute of Architects.
(13) One member appointed by the Home Builders
Association of Alabama.
(14) One member appointed by the Code Officials
Association of Alabama.
(15) One member appointed by the Commissioner of
Insurance to represent the property and casualty insurance
industry.
(16) One member appointed by the State of Alabama
Plumbers and Gas Fitters Examining Board.
(17) One member appointed by the Alabama Rural Electric
Association of Cooperatives to represent the rural electric
cooperative industry.
(c) The appointing authorities shall coordinate their
appointments to assure that membership of the council is
inclusive and reflects the racial, gender, geographic, urban,
rural, and economic diversity of the state.
(d) Each of the appointed members of the council shall
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be appointed for a six-year term, the term to begin on January
1, 2024, and may be reappointed for a second six-year term
pursuant to the appointing authority. 
§41-9-175.01
(a) The first meeting of the council shall be called by
the executive director of the board no later than March 1,
2024. The executive director shall preside until a chair and a
vice chair are selected by the council. The council shall
elect annually from its own members a chair, a vice chair, and
other officers as it may deem desirable.
(b) The council shall hold meetings at the call of the
chair or the recommendation of the board, to propose a
recommended Alabama Residential Building Code to the Home
Builders Licensure Board. Thereafter, the board shall meet
from time to time, at the call of the chair or at the request
of the board, to consider updates and amendments to the code.
Meetings shall be held at a time and place as designated or
specified in its rules.
(c) A majority of the members of the council shall
constitute a quorum at all of its meetings, and adoption or
resolution of any business shall require the concurrence of a
majority of all the members of the council. An agenda for the
meetings in sufficient detail to indicate the terms on which
final action is contemplated shall be submitted by the
administrator to the chair, vice chair, and council members
prior to the meeting.
(d) All meetings of the council shall be held in
accordance with the Alabama Open Meetings Act, Chapter 25A of
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Title 36.
(e) The administrator of the Alabama Residential
Building Code Division shall serve as ex officio secretary of
the council, keep a record of the proceedings of all council
meetings, and perform other duties as may be directed by the
council.
(f) The council may establish committees among its
membership, as it deems necessary, to assist in the conduct of
its business.
§41-9-175.02
(a) By October 1, 2024, the council shall submit to the
Home Builders Licensure Board for adoption the proposed
Alabama Residential Building Code. The board may adopt or
amend the proposed minimum statewide residential building code
prior to adoption.
(b) The proposed Alabama Residential Building Code, and
any subsequent amendment to the code, shall be based upon a
published edition of the Alabama Energy and Residential Code
as adopted and amended from the International Residential Code
(IRC) and the International Energy Conservation Code (IECC).
Subsequent recommendations for adoptions or amendments to the
Alabama Residential Building Code shall be based upon
published editions of the IRC and IECC. In addition, the
council shall take into consideration provisions for sealed
roof decks and related roof construction standards contained
in either the Coastal Construction Code Supplement or the
Inland Construction Code Supplement as well as standards
related to energy efficiency pertaining to residential
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construction.
(c) The council shall make recommendations with respect
to all matters pertaining to the implementation of the Alabama
Residential Building Code.
(d) When adopted by the board, recommendations of the
council shall be administered by the division.
§41-9-175.03
(a) At the direction of the board, the council shall do
all the following:
(1) Propose to the board for consideration of adoption
of an Alabama Residential Building Code or amendments to the
code.
(2) Evaluate, assess, advise, and counsel the division
on the Alabama Residential Building Code and the impact of the
code upon the economy and the environment.
(3) Solicit and enlist the cooperation of all
appropriate private-sector and community-based organizations
to implement this article.
(4) Make continuing studies, evaluations, and surveys,
upon the request of the board, of the needs and impacts of the
Alabama Residential Building Code.
(5) Adopt rules for the conduct of the council
meetings, procedures, and execution of the purpose, functions,
powers, and duties delegated to it by this section. 
(6) Conduct a program of public information in order to
inform the units of local government, residential home
builders, and the residents of the state on the importance of
the residential building code.
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(7) Recommend to the board qualifications and
certification for third party fee-based code inspectors.
Section 7. Sections 41-23-80, 41-23-81, 41-23-82,
41-23-84, and 41-23-85, Code of Alabama 1975, are amended to
read as follows:
"§41-23-80
The Legislature finds that the development, management,
efficient consumption, and conservation of residential energy
resources are of prime importance throughout this state and
this nation. It is also important to ensure the protection of
the economic and environmental values of Alabama's
citizensresidents. It is the intent of the Legislature to do
each of the following pursuant to this article:
(1) Encourage the conservation and efficient use of
residential energy resources within this state's counties and
municipalities.
(2) Provide a governmental environment that will
promote an initiative for the implementation of the Alabama
Energy and Residential Codes Alabama Commercial Energy Code by
the units of local government.
(3) Advise and assist the units of local government in
adopting the Alabama Energy and Residential Codes Alabama
Commercial Energy Code and implementing those code provisions
within their boundaries.
(4) Promote the identification of energy management
technologies available for residentialcommercial uses, and to
disseminate information to the units of local government about
such technologies and their uses.
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(5) Promote the acceptance and adoption of those energy
management technologies for use in all energy-consuming
residentialcommercial facilities throughout this state.
(6) Provide a process for the adoption of modern
building and energy codes by the State of Alabama.
(7) Provide a process by which the State of Alabama
shall adopt required commercial codes in compliance with
federal law."
"§41-23-81
The following terms shall have the meanings
respectively prescribed for them, except when the context
otherwise requires:
(1) ALABAMA ENERGY AND RESIDENTIAL CODES ALABAMA
COMMERCIAL ENERGY CODE . The codes adopted by the board, as
amended by the board, and based on the 2006 Edition of the
International Energy Conservation Code , and ANSI/ASHRAE/IESNA
Standard 90.1-2007 for commercial buildings, and the 2006
International Residential Code published by the International
Code Council, or any subsequent editions, changes, or
recompilations thereof, or any other code which the board
officially adopts.
(2) BOARD. The Alabama Energy and Residential
CodesCommercial Energy Code Board created by this article.
(3) DEPARTMENT. The Alabama Department of Economic and
Community Affairs.
(4) DIVISION. The Energy Division of the Alabama
Department of Economic and Community Affairs.
(5) UNIT OF LOCAL GOVERNMENT. Any county or
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municipality within the State of Alabama."
"§41-23-82
(a) The Alabama Energy and Residential Codes Commercial
Energy Code Board is established.
(b) The board shall consist of 1513 members appointed
by the Governor and two additional members, numbered 1614 and
1715, appointed by the Chair of the Permanent Joint
Legislative Committee on Energy Policy. The members appointed
by the Governor shall be legal residents of the state, and
shall be selected on the basis of their representation of the
following organizations, industries, entities, and
professions:
(1) One member shall represent the Home Builders
Association.
(2)(1) One member shall represent the Board of General
Contractors.
(3)(2) One member shall represent the State Board of
Heating, Air Conditioning, and Refrigeration.
(4)(3) One member shall represent the private,
investor-owned, electric utility industry.
(5)(4) One member shall represent the rural electric
cooperative industry.
(6)(5) One member shall represent the natural gas
industry.
(7)(6) One member shall be a licensed professional
engineer.
(8)(7) One member shall represent municipalities.
(9)(8) One member shall represent county governments.
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(10)(9) One member shall represent the Alabama Council,
American Institute of Architects.
(11)(10) One member shall represent the Alabama
Liquefied Petroleum Gas Board.
(12)(11) One member shall represent the International
Code Council (ICC) Alabama Chapter, Code Officials Association
of Alabama.
(13) One member shall represent the Home Builders
Licensure Board.
(14)(12) One member shall represent the Alabama Joint
Fire Council.
(15)(13) One member shall represent the Property and
Casualty Insurance Industry.
(16)(14) One member shall be a Senate member of the
Permanent Joint Legislative Committee on Energy Policy
selected by the chair of the committee.
(17)(15) One member shall be a House of Representatives
member of the Permanent Joint Legislative Committee on Energy
Policy selected by the chair of the committee.
(c) Each member appointed by the Governor shall be
selected from a list of three candidates provided to the
Governor by the division from each entity listed above. Board
appointees shall be selected on the basis of their interest in
problems concerning residentialcommercial energy resources,
consumption, and conservation, and without regard to political
affiliation. Appointments shall be of such a nature as to aid
the work of the board and to inspire the highest degree of
coordination and cooperation. All members of the board shall
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be deemed members at-large charged with the responsibility of
serving the best interests of the board, the division, the
units of local government, and the state. No member shall act
as the representative of any particular region, United States
congressional district in Alabama, or state Senate or
legislative district in Alabama.
(d) The board shall exercise authority with respect to
all matters pertaining to the acceptance, adoption, and
implementation of the Alabama Energy and Residential
CodesCommercial Energy Code by the State of Alabama. Decisions
of the board shall be administered by the chief of the
division with the assistance of such other officers and
department employees as are deemed necessary to carry out the
purpose, functions, duties, and activities of the board.
(e) The membership of the board shall be inclusive and
should reflect the racial, gender, geographic,
urban/ruralurban, rural, and economic diversity of the state.
(f) This article shall not apply to the erection or
construction of a farm structure. The term farm structure, for
the purposes of this actsubsection, means a structure that is
constructed on a farm, other than a residence or a structure
attached to it, for use on the farm including, but not limited
to, barns, sheds, and poultry houses. A farm structure does
not include a structure originally qualifying as a farm
structure but later converted to another use."
"§41-23-84
(a) The first meeting of the board shall be called by
the chief of the division as soon as is practicable after July
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31, 1995. The division chief shall preside until a chair and a
vice chair are selected by the board. The board shall elect
annually from its own members a chair, a vice chair, and such
other officers as it may deem desirable, and shall adopt rules
for its organization in the conduct of its business.
(b) The board shall hold a regular meeting at least
once during each calendar year at a time and place as
designated or specified in its rules. Special or additional
meetings may be held on a call of the chair, upon a call
signed by at least seven members, or upon a call by the
division chief.
(c) A majority of the members of the board shall
constitute a quorum at all its meetings, and adoption or
resolution of any business shall require the concurrence of a
majority of all the members of the board. An agenda for the
meetings in sufficient detail to indicate the terms on which
final action is contemplated shall be mailedprovided by the
division chief to the chair, vice chair, and board members 	at
least 30 days prior to the meeting.
(d) The division chief shall serve as ex officio
secretary of the board, and shall keep a record of the
proceedings of all board meetings , and perform such other
duties as may be delegated by the board. The division chief
shall not receive any additional compensation for the
performance of those duties on the board or pursuant to this
article.
(e) The board may establish committees among its
membership, as it deems necessary, to assist in the conduct of
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its business. Subcommittees shall include representation from
suppliers or others interested in the subject matter assigned
to the subcommittees, or both.
(f) All meetings of the board shall be held in
accordance with the Alabama Open Meetings Act, Chapter 25A of
Title 36."
"§41-23-85
(a) The board shall exercise authority with respect to
all matters pertaining to the acceptance and adoption, and
implementation of the Alabama Energy and Residential Codes
Commercial Energy Code by the State of Alabama. In so doing,
the board may perform any of the following functions:
(1) Review, amend, and adopt the Alabama Energy and
Residential Codes Commercial Energy Code . The board shall
consider updates and changes to the codes referenced herein no
less than two years after the date of publication of the most
recent version of the codes.
(2) Evaluate, assess, advise, and counsel the division
and the units of local government, on residential energy codes
and the impact of those codes upon the economy and the
environment.
(3) Solicit and enlist the cooperation of all
appropriate private-sector and community-based organizations
to implement the purpose of this article.
(4) Make recommendations to the division for the
enactment of additional legislation as it deems necessary
which proposes to further enhance the capabilities of the
state and the units of local government in accepting,
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adopting, and implementing the Alabama Energy and Residential
CodesCommercial Energy Code , and in meeting the need for
increasing residential energy resources and conservation due
to trends in residential population and the change in
technical requirements of the economy.
(5) Make continuing studies, on its own initiative or
upon the request of the division, of the residential energy
resources, conservation, and consumption needs throughout the
state, and issue those reports to the division and to the
units of local government as may result from its studies.
(6) Submit to the chief of the division, on an annual
basis, a written report covering the activities of the board.
(7) Make rules and regulations for the conduct of its
board meetings, procedures, and execution of the purpose,
functions, powers, and duties delegated to it by this article.
(8) Conduct a program of public information in order to
inform the units of local government and the citizensresidents
of the state on the importance of residential andcommercial
energy codes, conservation, and consumption.
(9) Identify any and all resources needed or required
for the board to implement the purpose, functions, powers, and
duties of this article.
(b) The division shall be responsible for taking action
upon any and all recommendations to which the board may from
time to time submit.
(c)(1) Except as provided in this section, any code
adopted by any state or county entity or agency after March 9,
2010, shall not conflict with the codes adopted by the board.
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A county entity or agency may elect to amend the Alabama
Energy and Residential Codes Commercial Energy Code as local
conditions require, but shall not make any amendment to
mandate residential fire sprinklers or to provisions which are
mandated or required by any federal law or federal regulation.
(2) As of March 9, 2010, any municipality which that
does not have a code in effect adopted pursuant to Section
11-45-8 shall not adopt any energy or residential code other
than the Alabama Energy and Residential Codes adopted by the
board or any newer versions thereof. Provided, however, a
municipality may elect to amend the Alabama Energy and
Residential Codes Commercial Energy Code as local conditions
require, but shall not make any amendment to mandate
residential fire sprinklers or to provisions which are
mandated or required by any federal law or federal regulation.
(3) Except as provided in subsection (d), nothing
Nothing contained in this article shall apply to any
municipality with a code adopted pursuant to Section 11-45-8
in effect as of March 9, 2010, nor shall it anything in this
article prevent any such municipality from making any changes
or amendments to existing codes after March 9, 2010. Provided,
however, that a municipality shall not make any amendment to
provisions which are mandated by any federal law or federal
regulation.
(d) A municipal, county, or state governing entity or
agency may not enact an ordinance, rule, bylaw, order,
building code, or other legal device that would restrict a
consumer's ability to elect to install, by the consumer's
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choice and for a fee, a residential fire sprinkler system in
any new or existing one-family or two-family dwelling. A
municipal, county, or state governing entity or agency may not
enact an ordinance, rule, bylaw, order, building code, or
other legal device that would require the installation of a
residential fire sprinkler system in any new or existing
one-family or two-family dwelling. Provided, however, all
municipalities governed by subdivision (3) of subsection (c)
which have enacted any ordinance, rule, bylaw, order, building
code, or other legal device as of March 9, 2010, relating to
the installation of a residential fire sprinkler system may
continue to enforce or amend such ordinance, rule, bylaw,
order, building code, or other legal device. "
Section 8. (a) A local building code adopted or
amended by any county or municipality after October 1, 2023,
shall meet the minimum standards of the Alabama Residential
Building Code in effect at the time of the local building code
adoption or amendment and shall not exceed the energy
provisions of the Alabama Residential Building Code, unless
compliance with any federal mandate requires such adoption or
amendment.
(b) A county commission or municipality shall provide
to the board a copy of any resolution, ordinance, or agreement
adopted pursuant to Section 11-40-10(b)(2), Code of Alabama
1975, within 10 business days of its adoption.
Section 9. This act shall become effective on October
1, 2023, following its passage and approval by the Governor,
or its otherwise becoming law.
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