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FISCAL NOTE
House Bill 214
Committee: Insurance Sponsor: Representative Chip Brown
Analyst: Jennifer Farish Date: 04/03/2023
House Bill 214 as introduced would decrease receipts to the State General Fund (SGF) by an
estimated $2.3 million annually, beginning in fiscal year 2024, by revising the distribution of
certain insurance license fees from 50% to the State General Fund (SGF), under current law, to
45%, as provided by this bill. This bill would correspondingly increase receipts to the Alabama
Residential Building Code Fund (Fund), which would be created by this bill within the State
Treasury and administered by the Home Builders Licensure Board, by the same estimated
amount by reallocating this 5% of license fee receipts to this new fund. This bill requires 25% of
the year-end balance of the fund to be transferred to the Strengthen Alabama Home Funds, with
the remainder of the monies remaining in the fund.
Further, this bill would increase the obligations of the Board by an undetermined amount to 1)
require the Board to adopt a minimum statewide residential building code (the Alabama
Residential Building Code); 2) create the Alabama Residential Building Code Division within
the Board, which may employ staff, provide funding to local jurisdictions, and apply for funding
from other sources; and 3) create the Alabama Residential Building Code Advisory Council.
However, this increase in obligations may be offset, in whole or in part, by the allocation of
insurance license fees to the Fund, for the administration and enforcement of the Alabama
Residential Building Code.