Alabama Senate Bill SB244

Alabama 2023 Regular Session

• Introduced: 4/25/23
• Refer: 4/25/23
• Report Pass: 5/3/23
• Engrossed: 5/23/23
• Refer: 5/23/23
• Report Pass: 5/24/23
• Enrolled: 6/6/23
• Passed: 6/6/23

Caption

Relating to design professionals; to add Section 41-9A-3.1 to the Code of Alabama 1975, to require an agreement with a design professional who does not have professional liability insurance coverage to disclose that fact in writing to the client, who shall sign and notarize the disclosure.

Impact

The introduction of SB244 has a significant impact on state law, particularly in enhancing the accountability of design professionals. By requiring written and notarized acknowledgments from clients regarding the lack of liability insurance, the bill aims to protect clients from potential issues that may arise during the execution of design services. This change in the law could also lead to increased awareness and discussions in the industry regarding the importance of professional liability coverage.

Summary

SB244 is an act introduced to regulate the practices of design professionals in Alabama concerning professional liability insurance. The bill mandates that design professionals who do not possess professional liability insurance must disclose this information to their clients in writing. This disclosure must be signed by the client and notarized before any work can commence. The intent is to promote transparency in the contractual relationship between clients and design professionals.

Sentiment

The sentiment surrounding SB244 has been generally positive, with broad support noted among legislators and stakeholders who see the value in protecting clients. While specific dissenting opinions were not explicitly recorded in the provided materials, the bill's straightforward nature and focus on client rights suggest minimal contention. Supporters argue that this legislation is a necessary step forward in ensuring that clients are not left vulnerable to unrepresented risks.

Contention

Although SB244 was passed unanimously, its implications may raise discussions on whether such disclosures will dissuade potential clients from engaging with certain design professionals. Furthermore, the additional step of notarization could be viewed by some as an unnecessary burden, particularly for smaller firms or freelance professionals. Nonetheless, the overall consensus appears to prioritize client protection.