HB198ENROLLED Page 0 HB198 TMLF199-2 By Representative Brown RFD: County and Municipal Government First Read: 20-Feb-24 1 2 3 4 5 HB198 Enrolled Page 1 First Read: 20-Feb-24 Enrolled, An Act, Relating to building codes; 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, 34-14A-7, 34-14A-12, and 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 Sections 34-14A-12.1 and 34-14A-12.2 to the Code of Alabama 1975, 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 3, commencing with Section 34-14A-80, to Chapter 14A of Title 34, Code of Alabama 1975, to establish the Alabama Residential Building Code Advisory Council and provide for its membership and duties; to add Article 3, commencing with Section 34-8-80, to Chapter 8 of Title 34, Code of Alabama 1975, to establish the Alabama Commercial Energy Code Advisory Committee within the State Licensing Board for General Contractors and provide for its membership and duties; to repeal Article 5, commencing with Section 41-23-80, of Chapter 23, Title 41, Code of Alabama 1975, relating to the Alabama Energy and Residential Codes Board 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 HB198 Enrolled Page 2 relating to the Alabama Energy and Residential Codes Board within the Alabama Department of Economic and Community Affairs; 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. Sections 34-14A-1 through 34-14A-20 are designated as Article 1 of Chapter 14A, Title 34, Code of Alabama 1975. Section 2. 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 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 HB198 Enrolled Page 3 and home improvement construction industries are significant industries. Home builders may pose significant and that 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 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 HB198 Enrolled Page 4 Residential Building Code or a local residential building code adopted by a county or municipality, pursuant to this chapter, 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. (3)(5) COST OF THE UNDERTAKING. The total cost of the materials, labor, supervision, overhead, and profit. (6) COUNCIL. The Alabama Residential Building Code Advisory Council. (7) DIVISION. The Alabama Residential Building Code Division. (4)(8) 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. (5)(9) IMPROVEMENT. Any site-built addition or enhancement attached to or detached from a residence or structure for use and enjoyment by the homeowner. (6)(10) 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)(11) LICENSE. Any license issued by the board pursuant to this chapter. (8)(12) LICENSEE. A holder of any license issued pursuant to this chapter. (9)(13) PERSON. Any natural person individual, limited 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 HB198 Enrolled Page 5 (9)(13) PERSON. Any natural person individual, limited or general partnership, corporation, association, limited liability company, or other legal entity, or any combination thereof. (10)(14) 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 a limited liability company and who has 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)(15) 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)(16) 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 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 HB198 Enrolled Page 6 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)(17) RESIDENTIAL ROOFER. A person who installs products or repairs surfaces on the external upper covering of a residence or structure that seals, waterproofs, or weatherproofs the residence or structure. (14)(18) 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)(19) TRANSACTION. The act of entering into a contract with a licensee to engage in the business of residential home building." "§34-14A-7 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 HB198 Enrolled Page 7 "§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. 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 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 HB198 Enrolled Page 8 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. (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, 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 HB198 Enrolled Page 9 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. (g)(h) 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)(i)(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 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 HB198 Enrolled Page 10 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 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: 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 HB198 Enrolled Page 11 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. (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 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 HB198 Enrolled Page 12 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) The board shall have the sole authority to adopt the following codes: (1) The Alabama Residential Building Code, which shall apply to all construction and improvements governed by this chapter. (2) The Alabama Residential Energy Code, which shall apply to all residential construction and improvements. (b)(1) The Alabama Residential Building Code shall be enforced by local jurisdictions that have permitting and inspection programs for residential construction and improvements that are adhered to by residential home builders. The Alabama Residential Building Code shall not supersede any local residential building code adopted by any county or municipality in effect on January 1, 2027. (2) The Alabama Residential Energy Code shall be enforced by local jurisdictions that have adopted energy code provisions for residential and commercial construction and improvements. Provided however, provisions adopted by local jurisdictions may not exceed those contained within the Alabama Residential Energy Code. (3) A local building code adopted by any county or municipality after January 1, 2027, shall meet the minimum standards of the Alabama Residential Building Code and the 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 HB198 Enrolled Page 13 standards of the Alabama Residential Building Code and the Alabama Residential Energy Code in effect at the time of the local building code adoption. The local building code may amend the standards as local conditions require, but no such adoption or amendment shall exceed the provisions of the Alabama Residential Energy Code unless local conditions or compliance with any federal mandate requires such adoption. (4) Notwithstanding any other provision of law to the contrary, 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 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) The building laws and codes of the county commission shall not apply within any municipal police jurisdiction, in which that municipality is exercising its building laws or codes, without the express consent of the 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 HB198 Enrolled Page 14 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 be enforced within a municipality's police jurisdiction outside of the municipality's corporate limits as provided in Section 11-40-10(b)(2). 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, 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 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 HB198 Enrolled Page 15 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 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. The board's statutory obligations pursuant to this chapter shall be contingent upon the appropriation of funding. 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 HB198 Enrolled Page 16 chapter shall be contingent upon the appropriation of funding. (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 State 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. 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 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441 442 443 444 445 446 447 448 HB198 Enrolled Page 17 (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. (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 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 474 475 476 HB198 Enrolled Page 18 (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. (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: 477 478 479 480 481 482 483 484 485 486 487 488 489 490 491 492 493 494 495 496 497 498 499 500 501 502 503 504 HB198 Enrolled Page 19 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 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 505 506 507 508 509 510 511 512 513 514 515 516 517 518 519 520 521 522 523 524 525 526 527 528 529 530 531 532 HB198 Enrolled Page 20 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 3. 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 applicable 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) Beginning on October 1, 2024, the Home Builders Licensure Board and any other state, 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 or structure as defined by this chapter. (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, 533 534 535 536 537 538 539 540 541 542 543 544 545 546 547 548 549 550 551 552 553 554 555 556 557 558 559 560 HB198 Enrolled Page 21 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 4. Article 2, commencing with Section 34-14A-41, is added to Chapter 14A of Title 34, Code of 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 may coordinate with the state energy office to identify and apply for funds from federal grant programs and other applicable funding sources authorized by law. (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 and implementation of the Alabama Residential Building Code. 561 562 563 564 565 566 567 568 569 570 571 572 573 574 575 576 577 578 579 580 581 582 583 584 585 586 587 588 HB198 Enrolled Page 22 Residential Building Code. §34-14A-43 (a) The division shall use funds distributed to the Alabama Residential Building Code Fund for the purpose of administering the Alabama Residential Building Code. (b) Subject to availability of funds and upon request from a local jurisdiction, the division shall provide matching funds to local jurisdictions that have also applied 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. (c) 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 (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. (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, 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. (d) At the end of each fiscal year, any unencumbered 589 590 591 592 593 594 595 596 597 598 599 600 601 602 603 604 605 606 607 608 609 610 611 612 613 614 615 616 HB198 Enrolled Page 23 (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 revert to the State General Fund. Section 5. Article 3, commencing with Section 34-14A-80, is added to Chapter 14A of Title 34, Code of Alabama 1975, to read as follows: Article 3. §34-14A-80 (a) The Alabama Residential Building Code Advisory Council is established. (b) The council shall consist of the following members: (1) The State Fire Marshal, or his or her designee. (2) The Director of the Emergency Management Agency, or his or her designee. (3) The Executive Director of the Home Builders Licensure Board, or his or her designee. (4) One member appointed by the Home Builders Licensure Board. (5) One member appointed by the State Board of Heating, Air Conditioning, and Refrigeration Contractors. (6) One member appointed by the State of Alabama Plumbers and Gas Fitters Examining Board. (7) One member appointed by the Governor to represent the private, investor-owned, electric utility industry. 617 618 619 620 621 622 623 624 625 626 627 628 629 630 631 632 633 634 635 636 637 638 639 640 641 642 643 644 HB198 Enrolled Page 24 the private, investor-owned, electric utility industry. (8) One member appointed by the Governor to represent the natural gas industry. (9) One member appointed by the Governor to represent the property and casualty insurance industry. (10) One member appointed by the Governor to represent the consumers of the state. (11) One member appointed by the American Council of Engineering Companies of Alabama. (12) One member appointed by the Alabama League of Municipalities. (13) One member appointed by the Association of County Commissions of Alabama. (14) One member appointed by the Alabama Council of the American Institute of Architects. (15) One member appointed by the Home Builders Association of Alabama. (16) One member appointed by the Code Officials Association of Alabama. (17) One member appointed by the Alabama Rural Electric Association of Cooperatives. (c) Membership of the council shall be inclusive and reflect the racial, gender, geographic, urban, rural, and economic diversity of the state. (d) The initial appointments shall begin January 1, 2025. Appointments shall be for a term of six years. Each appointee may be reappointed for one second six-year term. Each of the appointed members of the council shall be appointed for a six-year term and may be reappointed for a 645 646 647 648 649 650 651 652 653 654 655 656 657 658 659 660 661 662 663 664 665 666 667 668 669 670 671 672 HB198 Enrolled Page 25 appointed for a six-year term and may be reappointed for a second six-year term. §34-14A-81 (a) The first meeting of the council shall be called by the executive director of the Home Builders Licensure Board no later than March 1, 2025. The executive director shall preside until a chair and a vice chair are selected by the council. The council shall elect 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 of the council to propose a recommended Alabama Residential Building Code to the Home Builders Licensure Board. Thereafter, the council shall meet from time to time, at the call of the chair of the council or at the request of the executive director 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 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 Title 36. (e) The administrator of the Alabama Residential 673 674 675 676 677 678 679 680 681 682 683 684 685 686 687 688 689 690 691 692 693 694 695 696 697 698 699 700 HB198 Enrolled Page 26 (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. §34-14A-82 (a) By October 1, 2025, the council shall submit to the Home Builders Licensure Board for adoption the proposed Alabama Residential Building Code. The board may adopt or reject the code as proposed by the council. (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 construction. (c) The council shall make recommendations with respect to all matters pertaining to the implementation of the Alabama 701 702 703 704 705 706 707 708 709 710 711 712 713 714 715 716 717 718 719 720 721 722 723 724 725 726 727 728 HB198 Enrolled Page 27 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. §34-14A-83 At the direction of the board, the council may perform any of the following: (1) Propose to the board for consideration of adoption of an Alabama Residential Building Code and Alabama Residential Energy Code or amendments to the codes. (2) Evaluate, assess, advise, and counsel the division on the Alabama Residential Building Code and Alabama Residential Energy Code and the impact of the codes 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 and Alabama Residential Energy 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 and energy codes. (7) The council shall work with the state energy office 729 730 731 732 733 734 735 736 737 738 739 740 741 742 743 744 745 746 747 748 749 750 751 752 753 754 755 756 HB198 Enrolled Page 28 (7) The council shall work with the state energy office to review applicable federal regulations regarding the residential energy codes and any amendments thereto, and upon notification of any applicable federal regulation or law, consider and review the most recent published version of the Alabama Residential Building Code and Alabama Residential Energy Code. Section 6. Article 3, commencing with Section 34-8-50, is added to Chapter 8 of Title 34, Code of Alabama 1975, to read as follows: Article 3. §34-8-50 As used in this article, the following terms shall have the following meanings: (1) ALABAMA COMMERCIAL ENERGY CODE. The commercial energy code adopted by the board, and any subsequent amendments, editions, changes, or recompilations thereof. (2) BOARD. The State Licensing Board for General Contractors. (3) COMMITTEE. The Alabama Commercial Energy Code Advisory Committee. (4) DIVISION. The Alabama Commercial Energy Code Division established within the State Licensing Board for General Contractors. §34-8-51 (a) The Alabama Commercial Energy Code Division is established within the State Licensing Board for General Contractors. (b) The division shall be responsible for administering 757 758 759 760 761 762 763 764 765 766 767 768 769 770 771 772 773 774 775 776 777 778 779 780 781 782 783 784 HB198 Enrolled Page 29 (b) The division shall be responsible for administering meetings of the Alabama Commercial Energy Code Advisory Committee and advising the board on recommendations made by the committee for adoption of the Alabama Commercial Energy Code. (c) The executive director of the board may employ staff as necessary to carry out the duties of the division. (d) The board may apply for funds from federal grant programs and other applicable funding sources authorized by law. (e) The division and its duties shall expire upon sunset of the board unless expressly reauthorized by the Legislature. §34-8-52 (a) The Alabama Commercial Energy Code Advisory Committee is established within the Alabama Commercial Energy Code Division of the State Licensing Board for General Contractors. (b) The committee shall consist of the following members: (1) The Commissioner of Insurance, or his or her designee. (2) The Director of the Division of Construction Management within the Department of Finance, or his or her designee. (3) The State Fire Marshal, or his or her designee. (4) One member appointed by the State Licensing Board for General Contractors. (5) One member appointed by the Alabama Board for 785 786 787 788 789 790 791 792 793 794 795 796 797 798 799 800 801 802 803 804 805 806 807 808 809 810 811 812 HB198 Enrolled Page 30 (5) One member appointed by the Alabama Board for Registration of Architects. (6) One member appointed by the Alabama Board of Licensure for Professional Engineers and Professional Land Surveyors. (7) One member appointed by the Alabama Electrical Contractors Board. (8) One member appointed by the Alabama Board of Heating, Air Conditioning, and Refrigeration Contractors. (9) One member appointed by the Governor to represent the private, investor-owned, electric utility industry. (10) One member appointed by the Alabama Rural Electric Association of Cooperatives. (11) One member appointed by the Code Officials Association of Alabama. (12) One member appointed by the Alabama League of Municipalities. (13) One member appointed by the Association of County Commissions of Alabama. (c) The members appointed to the committee shall be legal residents of the state and the appointing authorities shall coordinate appointments to reflect the racial, gender, geographic, urban, rural, and economic diversity of the state. (d) Each member of the committee shall be appointed for a five-year term, with initial terms to begin on January 1, 2025, and may be reappointed for a second five-year term. §34-8-53 (a) The first meeting of the committee shall be called by the executive director of the board as soon as practicable 813 814 815 816 817 818 819 820 821 822 823 824 825 826 827 828 829 830 831 832 833 834 835 836 837 838 839 840 HB198 Enrolled Page 31 by the executive director of the board as soon as practicable after January 1, 2025. The executive director of the board, or his or her designee, shall preside until a chair and a vice chair are selected by the committee. The committee shall elect annually from its own members a chair, a vice chair, and other officers as it may deem desirable. (b) The committee shall hold a regular meeting at least once during each calendar year at a time and place designated by the board or specified by the committee. Special or additional meetings may be held upon the call of the chair, a call signed by at least seven members, or the call of the executive director of the board. All meetings of the committee shall be held in accordance with the Alabama Open Meetings Act, Chapter 25A of Title 36. (c) A majority of the members of the committee shall constitute a quorum at all meetings, and adoption or resolution of any business shall require the concurrence of a majority of all members of the committee. (d) The committee may establish subcommittees among its membership, as it deems necessary, to assist in the conduct of its business. (e) The committee may adopt bylaws for the conduct of the meetings, procedures, and execution of the purpose, functions, powers, and duties delegated to it by the board. §34-8-54 The committee shall make recommendations to the board with respect to the acceptance, adoption, and implementation of the Alabama Commercial Energy Code. In so doing, the committee may perform any of the following functions: 841 842 843 844 845 846 847 848 849 850 851 852 853 854 855 856 857 858 859 860 861 862 863 864 865 866 867 868 HB198 Enrolled Page 32 committee may perform any of the following functions: (1) Propose to the board for consideration of adoption of an Alabama Commercial Energy Code or amendments to the code no less than two years after the date of publication of the most recent version of the code. (2) Evaluate, assess, advise, and counsel the board or division on the Alabama Commercial Energy 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 for input and information to carry out its duties and implement this article. (4) Make continuing studies, evaluations, and surveys, on its own initiative or upon the request of the board, of the needs and impacts of the Alabama Commercial Energy Code. (5) Make recommendations to the division for the enactment of additional legislation or rules as it deems necessary. (6) Work with the State Energy Office to review applicable federal regulations regarding the commercial energy code. §34-8-55 (a) By December 31, 2025, the committee shall submit to the board for adoption the proposed Alabama Commercial Energy Code. Thereafter, the committee shall review and propose adoption of the code or amendments to the code no less than two years after the date of publication of the most recent version of the code. (b) The proposed Alabama Commercial Energy Code, and 869 870 871 872 873 874 875 876 877 878 879 880 881 882 883 884 885 886 887 888 889 890 891 892 893 894 895 896 HB198 Enrolled Page 33 (b) The proposed Alabama Commercial Energy Code, and any amendments, changes, editions, or recompilations thereof, shall be based upon the most recent versions of the International Energy Conservation Code (IECC) or the ANSI/ASHRAE/IES Standard 90.1. (c) The board shall review the proposed Alabama Commercial Energy Code from the committee and publish the final version of the Alabama Commercial Energy Code. Section 7. Article 5, comprised of Sections 41-23-80 through 41-23-85, Code of Alabama 1975, relating to the Alabama Energy and Residential Codes Board within the Alabama Department of Economic and Community Affairs, is repealed. Section 8. (a) A local building code adopted or amended by any county or municipality after January 1, 2027, 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, 2024. 897 898 899 900 901 902 903 904 905 906 907 908 909 910 911 912 913 914 915 916 917 918 919 920 HB198 Enrolled Page 34 1, 2024. ________________________________________________ Speaker of the House of Representatives ________________________________________________ President and Presiding Officer of the Senate House of Representatives I hereby certify that the within Act originated in and was passed by the House 02-Apr-24, as amended. John Treadwell Clerk Senate 08-May-24 Amended and Passed House 09-May-24 Concurred in Senate Amendment 921 922 923 924 925 926 927 928 929 930 931 932 933 934 935 936 937 938 939 940 941 942 943 944 945 946 947 948 949 950 951 952 953