HB182 Alabama 2018 Session

Summary

Primary Sponsor

Steve McMillan

Republican

Session

Regular Session 2018

Title

Home Builders Licensure Board, hearing costs, collection, fines increased for violations, revocation of certain licenses, Secs. 34-14A-1 to 34-14A-8, inclusive, 34-14A-14, 34-14A-15 am'd.

Summary

HB 182 would expand licensing for roofing work, adjust Home Builders Licensure Board rules and finances, increase penalties, and strengthen homeowner protections through the Homeowners' Recovery Fund.

What This Bill Does

It requires a roofer to be licensed by the Home Builders Licensure Board when roofing projects exceed $2,500 and expands the definition of residential home builders to include roofers above that threshold. It revises board membership and allows the board to recover hearing costs, while increasing administrative fines for violations. It also lets the board set by rule the maximum payout from the Homeowners' Recovery Fund, and it can revoke or deny licenses if a licensee has unpaid judgment claims from the fund. The act also updates how funds are collected and used for the board and the Recovery Fund, with an effective date three months after passage.

Who It Affects

• Residential roofers and other residential home builders who would now need licensure for roofing work costing over $2,500 and who must meet licensing requirements and potential disciplinary actions.
• Homeowners and consumers who could see changes to the amount paid out from the Homeowners' Recovery Fund, the rules governing those payouts, and the consequences for licensees who fail to pay judgments or who commit violations.

Key Provisions

• Roofers must hold a Home Builders Licensure Board license when the cost of a roofing project exceeds $2,500; residential roofers are included in the definition of residential home builders above that amount.
• Definition and board membership are revised to specify a nine-member board with seven residential home builders, one building official/inspector, and one consumer member, plus outlines for appointment, terms, and diversity requirements.
• The board is authorized to collect costs related to disciplinary hearing actions and may impose administrative fines for violations (up to $5,000 per violation for certain misconduct; up to $2,000 per other violations when specified by the board).
• The maximum payment from the Homeowners' Recovery Fund to an aggrieved homeowner can be set by the board through rule, with caps governing amounts paid per licensee (e.g., up to $50,000 per licensee) and per transaction (e.g., up to $20,000).
• Licensees may have their licenses revoked or refused if they fail to pay a judgment claim from the Homeowners' Recovery Fund; if funds are paid from the Recovery Fund, the licensee or their qualifying representative may be barred from license recognition until repaid with interest (12% annually).
• Annual contributions to the Homeowners' Recovery Fund (up to $60 per license) are required, with inactive licensees exempt; funds are used to defend or settle claims and may be transferred between Recovery Fund and related funds as needed.
• The act outlines procedures for claims, subrogation rights, court processes for payment from the Recovery Fund, and consequences if funds are insufficient or misused, including the potential termination of licenses if amounts are paid from the Fund.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Home Builders Licensure Board