One of the prime functions of Alabama AGC is to act as a voice of the construction industry at the state legislature. Over the course of this session, we will keep our members informed of relevant legislation and seek feedback on how it might impact your business. With your input and engagement, Alabama AGC is able to effectively advocate for the construction industry in Montgomery. Below are a few things we are working on this year.
First, the Alabama Licensing Board for General Contractors must be "reauthorized" via legislation. All state boards are required to go through this process every few years. In addition to advocating for a three-year extension, we are also looking at increasing the threshold amount needed for licensure from $50k to $100k (to mirror Title 39) and adding an exemption from licensure for staffing agencies/labor brokers.
Second, there are ongoing discussions about amending Title 39 to allow for alternative project delivery on certain public works projects. This initiative is being led by owners and public entities and there is not a consensus among these groups as to what will be authorized or what projects will be impacted. They are seeking input from the construction industry, including AGC, as they consider its use. While your AGC Board of Directors supports the use of alternative project delivery for certain public works projects, this legislation must ensure that the process is fair and transparent for all parties. We recognize this will affect many of our members and we encourage your feedback on this issue.
Finally, we have been hearing about issues with the Dept. of Revenue’s sales tax exemption process for both general and subcontractors. If you recall, we passed a bill last year expanding this process to projects for nonprofits. However, the current issues stem from ambiguities about the types of materials which are exempt and the application process to obtain a certificate. We are discussing this issue with other organizations and the Dept. of Revenue to determine the best path forward for reform.