HB404 Summary

• Defines three new terms for the Alabama Electronic Security Board of Licensure: "branch office" (any office location other than principal place of business), "helper" (registrant with limited responsibilities while learning), and "trainee" (registrant who has applied to become licensed).

• Establishes licensing requirements including that applicants must be U.S. citizens or legally present in Alabama, complete training certifications, pass examinations, and undergo criminal background checks.

• Requires branch offices to maintain separate and independent licenses from the principal place of business and specifies that qualifying agents must serve in management/supervisory positions for at least 33 hours per week.

• Prohibits unlicensed activity and specifies violations including operating without a license, falsifying service records, impersonating board representatives, and defrauding individuals age 60 or older.

• Establishes enforcement mechanisms including cease and desist orders, administrative fines up to $5,000 per violation, criminal penalties as Class A misdemeanors, and civil injunctions with attorney fees and court costs.

• Effective October 1, 2024.