Talking Points on AIA Legislative Issues

One Building Code Authority
Last year, the Alabama Legislature appointed a special task force to study the possibility of implementing a uniform building code for Alabama.  The task force met throughout the year and developed some recommendations to the Legislature.  Some of those recommendations are included in HB 526, by Rep. Mike Hill.

HB 526 would create the Alabama Building Code Council, which would be operated by the Alabama Department of Economic and Community Affairs.  The Council would adopt a statewide building code which would be the standard for the building of residential and commercial structures in Alabama.  The Council would consist design professionals and construction and insurance industry representatives and a building code official. 

We believe this legislation is a positive step toward improving Alabama’s built environment and protecting the health, safety and welfare of all Alabamians.  There are still some questions regarding how the Code will be developed and implemented and who will ultimately be responsible for enforcing its guidelines.
The past two hurricane seasons have left devastating results across the gulf coast.  Some industry experts believe the damage could have been substantially reduced if buildings were constructed using more stringent building codes, especially regarding wind and flood damage.

Statute of Repose – Why So Long?
The Alabama Council AIA believes the public is best served by legislative and regulatory reforms that curtail the cost and risks of professional liability for architects and their clients without jeopardizing the interest of the public.  Under current Alabama law, the statute of repose for bringing an action against an architect, engineer or contractor is 13 years from the date of the service.  This is much longer than the statute of repose for other businesses and providers of professional services.  Studies have shown that there are virtually no

Buildings typically last a long time.  Indeed, with proper care and maintenance, many buildings can have an almost indefinite life span.  However, after construction is completed, an architect is powerless to control the fate of a building as the natural aging process begins.  Personal injury can occur due to a situation out of the architect’s control and, if the building isn’t properly maintained, an architect can find himself or herself exposed to a lawsuit for an injury that occurred in a building designed long ago.  It is absolutely fair to hold an architect responsible the performance of his or her design, but it is unreasonable and unfair to hold an architect responsible for the natural aging process and poor maintenance practices.  According to our records, 23 states use a time frame of 10 years, and 10 states use a time frame of 6 years.  

Actually, a recent study of such claims in Alabama illustrates that 96% of claims are filed in the first six years of the building’s life.
SB 259, by Sen. Arthur Orr (R) of Decatur, would decrease the statute of repose for claims against an architect, engineer or contractor from eleven years to six years.  The bill is pending in the Senate Judiciary Committee.  We urge your support of this bill.

Tax Credits for Historical Preservation
Alabama is a state rich in history with a number of outstanding commercial buildings and residences that deserve preservation.  The Alabama Council AIA strongly encourages you to support any measure that would help our communities save and preserve these treasures. 

SB 113, by Sen. Phil Poole, would create a tax credit for rehabilitation and preservation of historic buildings against the tax liability of the taxpayer.  The bill is pending on the Senate calendar.

Restoration of the Contractor’s Material Sales Tax Exemption
In 2000, a bill was passed allowing materials purchased by contractors and subcontractors that were used in the construction of roads, bridges, government buildings or school buildings to be exempt from sales taxes.  In 2004, the budget was so short of funds, a deal was struck with the Alabama Road Builders Association and the Associated General Contractors and the Associated Builders and Contractors that, rather than transfer money from the road and bridge fund to make up the shortfall, they would allow this exemption to be repealed for a period of 2 years – until October 1, 2006.

This was intended to be a one-time loan.  Now, those associations want the exemption back.  SB 175, by Sen. Larry Means (D) of Gadsden, would reinstate the  sales tax exemption.  The Alabama Education Association is opposing the bill as they contend it would cost the state $28 - $45 million in tax revenue.  The Alabama Council believes a deal should be a deal and all parties should honor their commitments.  However, architects should be compensated for the true value of the projects they design.

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