FN-76P82V-1
Page 1
FISCAL NOTE
Senate Bill 136
Committee: Banking and Insurance Sponsor: Senator Sam Givhan
Analyst: JT Mathis Date: 04/05/2023
Senate Bill 136 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 the 5% of license fee receipts to this new fund. This bill further requires
the unencumbered year-end balance of the fund in excess of 25% of the amount appropriated for
the fiscal year to be transferred to the Strengthen Alabama Homes Fund, with the remainder of
the monies staying in the fund.
Further, this bill would increase the obligations of the Board by an undetermined amount to 1)
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.