The bill authorizes Alabama counties and municipalities to impose an additional residential building permit fee of up to $20, which will be directed to the Alabama Construction Trade Academy Fund. This fee aims to address the shortage of skilled tradesmen in the residential construction industry, thereby improving housing affordability. The bill specifies that the fee will apply to various residential construction permits and mandates that all collected fees be allocated to the fund dedicated to construction trade education. Additionally, it amends Section 34-14A-20 of the Code of Alabama 1975, removing specific funding requirements and introducing a grant program to support construction trade education initiatives.

Moreover, the bill modifies the funding guidelines for projects supported by the Alabama Home Builders Foundation by eliminating the previous requirement for matching funds from private sources, which was set at a minimum of 10 percent and capped at 25 percent of awarded state funds. Instead, it stipulates that the board shall not award funds exceeding the amount deposited into the fund from the respective county or municipality unless authorized by the Alabama Home Builders Foundation. The bill also requires quarterly distribution of funds to recipients, annual reporting on programs and financial statements, and mandates that proceeds from the sale of equipment or materials acquired with the funding be returned to the fund. Importantly, funds collected under this act cannot be used for continuing education required by any professional licensing board or agency in the state, with the act set to take effect on October 1, 2025.

Statutes affected:
Introduced: 34-14A-20, 34-14A-2
Engrossed: 34-14A-20, 34-14A-2, 34-14A-2, 34-14A-20
Enrolled: 34-14A-20, 34-14A-2, 34-14A-2, 34-14A-20