The bill amends Sections 34-8-1 and 34-8-7 of the Code of Alabama 1975 to increase the threshold cost for an individual to be considered a general contractor from $50,000 to $100,000. This change means that individuals undertaking construction projects costing $100,000 or more will be required to obtain a general contractor's license. Additionally, the bill introduces a new exemption for labor brokers and temporary labor providers, allowing them to provide workers to general contractors without needing a separate license, as long as the temporary workers operate under the supervision of the general contractor.
Furthermore, the bill clarifies that certain exemptions from licensing requirements remain in place, including for government representatives, construction on personal property, and specific utility-related work. It also specifies that subcontractors must comply with the same regulations as general contractors, albeit with reduced fees and no bid limits. The act is set to take effect on October 1, 2024.