LEGISLATIVE UPDATE

For Week Ending March 22, 2013

Subcontractor's Association of Alabama

Prepared for SubAla by Miller Development Group

Legislature Takes Scheduled Break As Halfway Mark Is Reached

As expected the legislature is adjourned for a scheduled break this week and
will reconvene on Tuesday April 2rd. With many hot button proposals still
un-debated the pace of the legislature should pick up but as veterans have
seen in many years sometimes the already high tensions cause legislative
programs to become derailed. Your SubAla team will continue to look for
opportunities to advance your proposals amidst the other legislative drama.
The lawsuits filed this week by AEA against several Republican lawmakers due
to the Accountability Act can only make matters worse. Ads for both sides
are now being run to sway public support.

ABC Supports "SubAla's License Prior To Bid" Concept / Final Ok Still
Unknown

SubAla will take advantage of the legislative week off to make final
revisions if needed to the license prior to bid legislation in hopes of
introducing the bill the first week back from the break. While an additional
draft of the legislation incorporated the requested language from ABC, ABC
said that one more look is required for final sign off. David Campbell has
been in constant contact with ABC's President, Jay Reed and Chairman, Bruce
Taylor to discuss further requested language prior to adding ABC in the
support column to the material being provided to the legislature which
outlines the provisions of the bill.

Since most bills have been caught in the logjam essentially no time has been
wasted in getting the proposal considered. Further the SubAla strategy was
to avoid getting in the cross-fires that have ensued since the introduction
of the CM at Risk legislation.

CM At Risk Continues To Take Center Stage And Draws Further Opposition

A host of members from ABC continued to walk the halls of the legislature to
gather support for the CM at Risk legislation. While the main opposition to
the bill has been from AGC, another prominent group has now emerged. The
bill has now been revised at least 5 times after introduction.

In the latest legislative update from the Association of County
Commissioners the bill was reported as problematic and they asked their
members to oppose. According to the news article they are urging
legislators to oppose the bill unless their concerns are met. The article
does not point out what the specific concerns are.

Both the House and Senate bills remain in committee but a Senate vote should
come the first week the legislature reconvenes. SubAla has been involved in
many of the meetings and supports the intent of this legislation, but
continues to diligently review any changes in the language that may
negatively impact subcontractors and specialty contractors.

County Commissioners Association Opposes Engineer Liability and Prompt Pay

Two other construction related bills are also opposed by the Association of
County Commissioners according to their latest newsletter. The newsletter
stated that HB335, by Rep. Ison shifts the liability for professional
engineers but adds responsibilities to the county engineers and government.
The article stated that many counties employ private companies to inspect
work on construction sites and this bill takes away any liability on their
end and places it at the feet of the county. The bill had a public hearing
and passed out of the House State Government Committee with a favorable
report.

HB303, by Rep. Roberts, amends the Prompt Payment for public works and
requires payments to be made to contractors within 30 days of receipt of
invoices. The previous timeline was 45 days. The 45 days was instituted
last year in a compromise that exempted contracts funded through grants or
other non-county funding that may not be available at the beginning of a
project. According to the County Commissioner's newsletter, the new bill is
believed to be unworkable because it changes the timeline to 30 days and
repeals the provision regarding projects funded with grants or other outside
revenue. Counties, ALDOT and the Alabama Building Commission testified
against the legislation. The House State Government Committee was carried
over at the urging of the concerned parties who testified against it.

Construction Materials Tax Exemption:

Paperwork Reduction Sails Out Of Committee/SubAla Lends A Hand

With no opposition HB419 sailed out of the House Education Committee.
SubAla joined ABC in requesting the bill be placed on the agenda and
following up with the committee clerk. Prior to the release of the agenda,
SubAla lobbyists were given the word that the bill would be in committee as
requested. It could be voted on by the full House as early as the week
after the break. SubAla strongly supports the legislation.

As previously reported, the bill by Rep. DeMarco changes current law that
provides a way for contractors to buy tax exempt materials directly. The
current law states that contractors on public projects must pay the sales
tax or use the tax on their materials to get a government entity to buy the
materials directly. The bill was amended in committee and language was
adopted that allows the exemption only on materials that will become a
permanent part of the project build. The bill also exempts road building.

Employment Forms For New Hires Required By May 8th / Fine Imposed

All businesses should mark their calendar for May 7th to continue to comply
with current immigration laws and avoid a fine. The U.S. Citizenship and
Immigration Services has issued new I-9 forms that all employers can begin
using now but are required to use no later than May 7th. While it is
required for new employees, existing employees do not need a new form if the
old form is on file. The revision is more detailed and is expected to take
longer to complete. Use of an outdated I-9 could result in a fine due if it
is determined that the employer has not fulfilled his obligations.

Employers may access the new Form I-9 (Rev. 03/08/13) online by Clicking
Here. You can also order USCIS forms by calling the toll-free number at
1-800-870-3676. The public can obtain USCIS forms and information on
immigration laws, regulations and procedures by calling the National
Customer Service Center at 1-800-375-5283 or by visiting USCIS's I-9 Central
web page at www.uscis.gov/I-9Central.

HOW TO IDENTIFY YOUR LEGISLATOR

http://www.legislature.state.al.us/house/house_zipsearch.html

http://www.legislature.state.al.us./misc/zipsearch.html

HOW TO CONTACT YOUR LEGISLATOR

http://www.legislature.state.al.us./house/representatives/houseroster_alpha.html

www.legislature.state.al.us./senate/senators/senateroster_alpha.html

House: 334-242-7600 Senate: 334-242-7800

SubAla
David Campbell
COO/General Counsel