District of Columbia to Alabama: residential contractor license reciprocity

1. 1Trade exam. Pass the destination's trade exam. Alabama HBLB Skill Exam through Prov: 80 questions, 4 hours, 66% to pass, open book against the 2015 International Residential Code and the Residential Home Builder Study Guide, covering plan reading, sitework and foundations, concrete, masonry, carpentry, roofing, interior and exterior finish, associated trades and OSHA. No Board authorization is needed before booking, and a passing score stays valid for three years..
2. 2Law / code exam. Pass a law, rules, or code exam. Alabama HBLB Business and Law exam through Prov: 40 questions, 2 hours, 70% to pass, open book against the NASCLA Contractors Guide to Business, Law and Project Management, Alabama Residential Construction edition. This exam is never waived..
3. 3Exam fee. Pay the exam fee ($130). $130 if the Skill and Business and Law exams are taken on the same day, or $80 for each exam taken on separate days. Testing fees are paid directly to Prov, not to the Board..
4. 4Application fee. Pay the application fee ($100). Non-refundable new license application processing fee (Ala. Admin. Code r. 465-X-4-.04(3)). It is paid together with the annual license fee in a single payment and is not returned if the application is withdrawn or denied..
5. 5License fee. Pay the license or certificate fee ($250). Annual license fee of $235 plus the $15 annual Homeowners' Recovery Fund fee, sent with the application as one $350 payment together with the $100 processing fee. The license fee is refunded on written request if the application is rejected or denied. A license limited to residential roofing costs $150 a year and pays no Recovery Fund fee. Cheque or money order only; the Board does not take cash or credit cards..
6. 6Financial responsibility. Show financial responsibility. Business-related credit report including a public records search, ordered by the applicant at a fee of $35 and sent to the Board directly by the credit reporting agency. There is no net worth or working capital minimum, but outstanding business-related collection or foreclosure accounts must not exceed $500 in total, and outstanding judgments, judgment liens or perfected liens must not exceed $500 in total ($1,000 where the matter is under dispute or on appeal), unless the applicant documents payment, a payment plan or the circumstances to the Board's satisfaction. An application pending more than 90 days may need an updated report..
7. 7Business license. Obtain a business license. The license is issued to the legal entity that will contract. A corporation, limited liability company or limited partnership files a Certificate of Compliance from the Alabama Department of Revenue, and an entity organized outside Alabama also files a Certificate of Existence from the Alabama Secretary of State. Conducting residential homebuilding through an entity that does not itself hold an Alabama Home Builders license is a violation of the Act..
8. 8Surety bond. Post a surety bond ($10,000) (if applicable). Required only for a license limited to residential roofing: a surety bond of not less than $10,000 naming the Home Builders Licensure Board as obligee, valid through December 31 of the licensure year and submitted to the Board directly by the surety (Ala. Admin. Code r. 465-X-3-.04(5)). Roofers file this instead of a credit report. Unlimited and limited licenses require no bond..
9. 9Insurance. Carry the required insurance (if applicable). The Board states that the law regulating residential home builders does not address insurance, so no policy is required for licensure. Other Alabama laws, and most lenders and homeowners, still expect general liability and workers compensation coverage; the Alabama Department of Labor answers questions about workers compensation..
10. 10Continuing education. Complete continuing education. Renewal condition rather than an entry requirement: six credit hours of Board-approved continuing education each year, two of them in Alabama-specific subjects, taken by the designated qualifying representative where the license is held by an entity. Licenses run for the calendar year and renewal applications are due by November 30 of the preceding year (Ala. Admin. Code r. 465-X-3-.06)..
11. 11Other. Notarised application on the Board's form (no photocopies), notarized corporate minutes or equivalent naming the designated qualifying representative as an officer, general partner, member or manager, and proof of United States citizenship or lawful presence for every applicant..

Published fees on this path total $480, excluding exam-vendor fees, bonds, and insurance.