SB292 Alabama 2024 Session

Summary

Primary Sponsor

Chris ElliottSenator

Republican

Session

Regular Session 2024

Title

State Licensing Board for General Contractors; minimum cost of undertaking subject to licensure requirements, increased

Summary

SB292 raises the general contractor threshold to 100,000, adds a small pool work threshold, and creates a labor-broker exemption while tightening subcontractor licensing requirements.

What This Bill Does

It increases the threshold for being considered a general contractor from 50,000 to 100,000 and treats swimming pool projects over 5,000 as general contracting for licensure purposes. It creates a licensing exemption for labor brokers or temporary labor providers who supply workers to licensed contractors, with workers treated under the contractor's license and brokers barred from acting as subcontractors. It adds new licensing rules for subcontractors, including half the general contractor fees, no bid limits, required financial statements and references, licensure before starting work, and license numbers indicating subcontractor status, with an effective date of October 1, 2024.

Who It Affects

• General contractors and prospective contractors: Projects costing up to 100,000 may not require board licensure as general contractors, while swimming pool work above 5,000 will be treated as general contracting and require licensure.
• Labor brokers and other temporary-labor providers: They are exempt from general contractor licensing when providing workers to licensed contractors, but their workers must be licensed under the general contractor’s license and brokers cannot act as subcontractors.

Key Provisions

• Threshold for general contractor status changed from 50,000 to 100,000 in 34-8-1(a).
• Swimming pool projects exceed 5,000 are defined as general contracting and subject to licensure in 34-8-1(b).
• New exemptions added for labor brokers and temporary labor providers in 34-8-7(a)(8), with workers treated under the general contractor's license and brokers not allowed to function as subcontractors.
• Subcontractor licensing provisions added in 34-8-1(c): subcontractors must pay half of the required fees, no bid limits for subcontractors, must submit a financial-condition statement and three references, and must be licensed before starting work; license numbers will denote subcontractor status and exams are not required.
• Effective date of 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