HB418ENROLLED
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HB418
5SV5M33-2
By Representatives Kirkland, Underwood
RFD: Commerce and Small Business
First Read: 04-Apr-24
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First Read: 04-Apr-24
Enrolled, An Act,
Relating to the State Licensing Board for General
Contractors; to amend Sections 34-8-1 and 34-8-7, Code of
Alabama 1975, as last amended by Act 2023-99, 2023 Regular
Session, to increase the threshold cost of undertaking where
an individual is deemed to engage in the business of general
contracting; and to exempt labor brokers and other temporary
labor providers from certain licensing requirements.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 34-8-1 and 34-8-7, Code of Alabama
1975, as last amended by Act 2023-99, 2023 Regular Session,
are amended to read as follows:
"§34-8-1
(a) For the purpose of this chapter, a "general
contractor" is defined to be one who, for a fixed price,
commission, fee, or wage , undertakes to construct or
superintend or engage in the construction, alteration,
maintenance, repair, rehabilitation, remediation, reclamation,
or demolition of any building, highway, sewer, structure, site
work, grading, paving , or project or any improvement in the
State of Alabama where the cost of the undertaking is fifty
thousand dollars ($50,000) one hundred thousand dollars
($100,000) or more,. A person who does any of the activities
described in this subsection shall be deemed and held to have
engaged in the business of general contracting in the State of
Alabama.
(b) For the purpose of this chapter, a "general
contractor" is defined to include one who, for a fixed price,
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contractor" is defined to include one who, for a fixed price,
commission, fee, or wage exceeding five thousand dollars
($5,000), undertakes to construct, superintend the
construction of, repair, or renovate, any swimming pool , and
anyone. Anyone who shall engageengages in the construction,
superintending of the construction, repair, or renovation of
any swimming pool in the State of Alabama, where the cost of
the undertaking exceeds five thousand dollars ($5,000), shall
be deemed and held to have engaged in the business of general
contracting in the State of Alabama and shall be subject to
this chapter.
(c) For the purpose of this chapter , a "subcontractor"
is defined to be one who constructs, superintends, or engages
in the construction, alteration, maintenance, repair,
rehabilitation, remediation, reclamation, or demolition of any
building, highway, sewer, structure, site work, grading,
paving, or project or any improvement in the State of Alabama
where the cost of the undertaking is fifty thousand dollars
($50,000) one hundred thousand dollars ($100,000) or more
under contract to a general contractor , as defined in
subsection (a), or another subcontractor."
"§34-8-7
(a) The following shall be exempted from this chapter:
(1) The practice of general contracting, as defined in
Section 34-8-1, by an authorized representative or
representatives of the United States Government, State of
Alabama, incorporated town, city, or county in this state,
which is under the supervision of a licensed architect or
engineer, provided any work contracted out by the authorized
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engineer, provided any work contracted out by the authorized
representative shall comply with the definition in this
chapter for general contractor.
(2) The construction of any residence or private
dwelling.
(3) A person, firm, or corporation constructing a
building or other improvements on his, her, or its own
property, provided that any of the work contracted out
complies with the definition in this chapter for general
contractor. A municipal governing body or municipal regulatory
body may not enact any ordinance or law restricting or
altering this exemption. Any municipal ordinance or regulation
that conflicts with this exemption is repealed effective June
11, 2015.
(4) The installation, repair, maintenance, or removal
of facilities, equipment, or systems used in or substantially
related to the generation, transmission, or distribution of
electric power, natural gas, or telecommunications in an
emergency by a utility regulated by the Public Service
Commission, or any entity engaged in the generation,
transmission, or distribution of electric power, natural gas,
or telecommunications, or any of their respective general
contractors or subcontractors, provided the work is performed
under the supervision of a licensed architect or engineer. For
purposes of this subdivision, the term "emergency" is defined
as a situation whereby service to the consumer has been
interrupted or may be interrupted if work to remedy the
emergency is not performed and completed within 60 days, and
such other situations that are determined to be an emergency
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such other situations that are determined to be an emergency
in the discretion of the board.
(5) The repair, maintenance, replacement,
reinstallation, or removal of facilities, equipment, or
systems used in or substantially related to the generation,
transmission, or distribution of electric power, natural gas,
or telecommunications on a routine, regular, or recurring
basis by a utility regulated by the Public Service Commission
or any entity engaged in the generation, transmission, or
distribution of electric power, natural gas, or
telecommunications or any of their respective general
contractors or subcontractors, provided the work is performed
under the supervision of a licensed architect or engineer.
(6) Routine or regular maintenance, repair,
replacement, reinstallation, or removal of equipment,
specialized technological processes, or equipment facility
systems as determined by the board with regard to scope,
frequency, and specialty of the work to be performed.
(7) Routine landscape maintenance work that includes
cutting grass; trimming, replacing, and removal of bushes,
shrubs, and similar items; the placement and removal of pine
straw, mulch, bark, and similar ground covers; and other
routine ground maintenance.
(8) The provision of temporary labor by a labor broker
or other temporary labor provider that provides workers to a
general contractor to perform work under the supervision and
control of that general contractor. For the purposes of
licensing, temporary workers are deemed to fall under the
license of the general contractor to whom they are provided.
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license of the general contractor to whom they are provided.
This exemption does not allow labor brokers or other temporary
labor providers to act as subcontractors or to assume a scope
of work for a project as a subcontractor.
(b) The aforementioned exemptions provided in
subsection (a) shall exclude a swimming pool contractor.
Provided, however, a person, firm, or corporation constructing
a swimming pool on his, her, or its own property shall be
exempted from this chapter.
(c) A subcontractor, as defined in Section 34-8-1(c),
is subject to and shall comply with this chapter as specified
for a general contractor except as follows:
(1) A subcontractor shall pay one-half of the fees as
required in this chapter for a general contractor.
(2) No bid limits shall be established for a
subcontractor.
(3) A subcontractor shall submit with license
application and renewals a statement of financial condition as
prescribed by the board.
(4) A subcontractor shall furnish three references from
any combination of the following: Licensed general
contractors, registered professional engineers, or registered
architects, or qualified person, as declared by the board, for
whom they have worked. If a subcontractor has only been
employed by one company, the subcontractor shall provide the
following: Three or more jobs he or she has worked on, the
amounts of the contracts, the time period of the contracts,
the location of the contracts, and a statement of experience.
(5) A subcontractor is not required to be licensed at
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(5) A subcontractor is not required to be licensed at
the time a project is bid, but must be licensed with the board
prior to beginning work on the project.
(6) A general contractor license and license number
issued by the board to subcontractors shall denote
subcontractor status.
(7) A subcontractor is not required to sit for any
examination before being licensed."
Section 2. This act shall become effective on October
1, 2024.
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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 18-Apr-24.
John Treadwell
Clerk
Senate 02-May-24 Passed
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