HB418 Alabama 2024 Session

Updated Feb 23, 2026

Notable

Summary

Primary Sponsor: Mike KirklandRepresentative
Republican
Session: Regular Session 2024
Title: State Licensing Board for General Contractors; minimum cost of undertaking subject to licensure requirements, increased
Summary: HB418 raises the general contractor license threshold to $100,000 and adds an exemption for labor brokers/temporary labor providers, while preserving various existing exemptions for specific activities and actors.
What This Bill Does
It increases the cost threshold for being deemed a general contractor from $50,000 to $100,000 (with a separate $5,000 threshold still applying to swimming pool work). It exempts labor brokers and other temporary labor providers from licensing requirements when they supply workers to licensed contractors (with those workers treated as if they are under the general contractor's license). It also outlines licensing-related rules for subcontractors, including when licensing is required and how status is shown, and preserves several exemptions for government projects, owner-occupied work, emergencies, routine maintenance, and other specific scenarios. The act becomes effective on October 1, 2024.

Who It Affects
General contractors and firms: the new $100,000 threshold changes who must be licensed under the general contracting umbrella (pool work has its own $5,000 pool-specific trigger).
Swimming pool contractors: generally subject to licensing under the chapter, with an owner-constructed pool on the owner's property exempt from licensing.
Subcontractors: must be licensed before starting work on a project, though bidding can occur before licensing; they must meet specific documentation and reference requirements and their license will indicate subcontractor status.
Labor brokers and temporary labor providers: exempt from licensing requirements; their workers are treated as if licensed under the general contractor who uses them, and they cannot act as subcontractors.
Government entities and property owners: certain government-related work and owner-occupied construction remain exempt from licensing if they meet the defined conditions.
Utilities and emergency work crews: certain emergency or routine maintenance activities are exempt or subject to special provisions.

Key Provisions
Section 34-8-1(a): General contracting threshold increased to $100,000 for most projects (up from $50,000).
Section 34-8-1(b): Swimming pool work by a general contractor is defined to be subject to licensing if the undertaking exceeds $5,000; pool work is treated under the general contractor framework with exceptions noted elsewhere.
Section 34-8-7(a): Exemptions from licensing include certain government-related work, construction of residences, owner-occupied projects, emergencies, routine maintenance, and temporary labor provided by labor brokers under supervision of a licensed professional; however, swimming pool contractors are not exempt (unless constructing a pool on the owner’s property).
Section 34-8-7(c): Subcontractors must comply with licensing requirements tailored for subcontractors, including paying half the general contractor fees, no bid limits, providing financial and reference information, and licensing before starting work (though not necessarily at bid time).
Section 34-8-7(a)(8): Temporary labor providers are treated as supplying workers under the general contractor’s license; such workers cannot independently act as subcontractors.
Section 2: Effective date is October 1, 2024.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Authorities, Boards, & Commissions