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HB 150: "An Act relating to residential building codes; relating to construction contractors and residential contractor endorsements; and providing for an effective date."

00 HOUSE BILL NO. 150 01 "An Act relating to residential building codes; relating to construction contractors and 02 residential contractor endorsements; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 08.18.025 is amended to read: 05 Sec. 08.18.025. Residential contractors. (a) A general contractor may not 06 undertake the construction or alteration, or submit a bid to undertake the construction 07 or alteration of a [PRIVATELY-OWNED] residential dwelling that is covered by the 08 state residential building code [STRUCTURE OF ONE TO FOUR UNITS] or 09 advertise or publicly represent that the general contractor may undertake work of this 10 type in the state without a residential contractor endorsement issued under this section. 11 In this subsection, "alteration" means changes that have a value greater than 25 12 percent of the value of the structure being altered. 13 (b) The department shall issue a residential contractor endorsement to a person 14 who

01 (1) has a certificate of registration as a general contractor; 02 (2) passes a residential contractor examination, which shall be offered 03 by the department at least once each year in each judicial district; the examination, 04 which may be written or practical, must test the person's knowledge of the state 05 residential building code and may test competence in relation to arctic structural and 06 thermal construction techniques and other matters as determined by the department in 07 consultation with representatives of the construction industry; 08 (3) applies for an endorsement within 12 months after passing the 09 examination required under (2) of this subsection; 10 (4) within the two years preceding the date of application for the 11 endorsement, has satisfactorily completed either the Alaska craftsman home program 12 sponsored by the department, or its equivalent, or a postsecondary course in arctic 13 engineering, or its equivalent; 14 (5) within the seven years preceding the date of application, has not 15 been under a sentence for an offense related to forgery, theft in the first or second 16 degree, extortion, or conspiracy to defraud creditors or for a felony involving 17 dishonesty; and 18 (6) pays the appropriate fees. 19 (c) The department may not renew an endorsement issued under this section 20 unless the applicant submits proof of continued competency relating to residential 21 contracting and the state residential building code that satisfies the department. A 22 lapsed endorsement may be reinstated, within two years after the lapse, upon proof of 23 continued competency relating to residential contracting and the state residential 24 building code, payment of a renewal fee for the intervening time period, and payment 25 of any penalty fee established under AS 08.01.100(b). If the endorsement has been 26 lapsed for more than two years, the department may not reinstate it until the person 27 also passes the residential contractor examination described in (b) of this section. 28 * Sec. 2. AS 08.18.025 is amended by adding a new subsection to read: 29 (d) To maintain a residential contractor endorsement under this section, a 30 residential contractor shall comply with the state residential building code when 31 providing residential contractor services to residential buildings covered by the code,

01 except when the residential contractor is providing residential contractor services to a 02 building under a later version of the state residential building code or another 03 nationally recognized residential building code adopted under AS 18.60.860(c) by a 04 municipality or the Alaska Housing Finance Corporation. 05 * Sec. 3. AS 08.18.171(16) is amended to read: 06 (16) "residential contractor" means a general contractor whose 07 business and operation involve undertaking the construction or alteration of a 08 [PRIVATELY-OWNED] residential structure, including a dwelling covered by the 09 state residential building code, [OF ONE TO FOUR UNITS THAT IS USED OR] 10 intended to be used as a habitable [HUMAN] dwelling; 11 * Sec. 4. AS 08.18.171 is amended by adding a new paragraph to read: 12 (20) "state residential building code" means the state residential 13 building code adopted under AS 18.60.860(a). 14 * Sec. 5. AS 18.56.300(a) is amended to read: 15 (a) The corporation may not make or purchase a housing loan for residential 16 housing the construction of which begins after June 30, 1992, unless the seller of the 17 mortgage loan complies with the provisions of this section and unless 18 (1) the unit is in compliance with the construction codes of the 19 municipality, if the unit is located within a municipality that has adopted and enforces 20 construction codes and each of those codes meets or exceeds the comparable standards 21 for similar housing established by the state residential building codes [CODE]; or 22 (2) the unit is in compliance with the comparable standards for similar 23 housing established by the state residential building codes [CODE] 24 (A) if the unit is located 25 (i) within a municipality whose construction codes do 26 not meet the standards for similar housing established by the state 27 residential building codes [CODE]; 28 (ii) within a municipality that does not enforce 29 construction codes; or 30 (iii) outside a municipality; or 31 (B) as to each specific code within the construction codes of

01 the municipality that has adopted and enforces construction codes if the 02 specific code does not meet or exceed the comparable standard for similar 03 housing established by the state residential building codes [CODE]. 04 * Sec. 6. AS 18.56.300(b) is amended to read: 05 (b) As a condition of a commitment to purchase or approve a loan under this 06 section for residential housing the construction of which begins after June 30, 1992, 07 the corporation shall require inspection of the unit of residential housing that is the 08 subject of the loan. The inspection must be performed by a municipal building 09 inspector, by an individual who is registered under AS 08.18 to perform home 10 inspections for new construction, by an architect registered under AS 08.48, by an 11 engineer registered under AS 08.48, or by another person approved by the corporation. 12 When the unit of residential housing is located in a rural area, the person who makes 13 the inspection may use methods other than a personal physical inspection to make the 14 inspection if the method is approved by the corporation, and variations from the 15 applicable code may be accepted at the corporation's discretion, if the person 16 authorized to inspect the unit under this subsection satisfies the corporation that the 17 variation does not adversely affect the structural integrity of the unit or the health and 18 safety of the occupants [RESIDENTS]. The person who makes the inspection shall 19 determine whether the construction conforms to relevant provisions of the 20 construction codes of the municipality or of the state residential building codes 21 [CODE], as applicable, at each of the following stages of construction: 22 (1) plan approval; 23 (2) completion of footings and foundations; 24 (3) completion of electrical installation, plumbing, and framing; 25 (4) completion of installation of insulation; 26 (5) final approval. 27 * Sec. 7. AS 18.56.300(e)(3) is amended to read: 28 (3) "state residential building codes [CODE]" means 29 (A) for building standards, the standards set out in the state 30 residential building code [VERSION OF THE UNIFORM BUILDING 31 CODE] adopted by the Department of Commerce, Community, and

01 Economic Development [PUBLIC SAFETY] under AS 18.60.860(a) or 02 another nationally recognized residential building code adopted by the 03 corporation under AS 18.56.088 or AS 18.60.860(c) [AS 18.70.080, 04 INCLUDING THE PROVISIONS OF THAT CODE APPLICABLE TO 05 BUILDINGS USED FOR RESIDENTIAL PURPOSES CONTAINING 06 FEWER THAN FOUR DWELLING UNITS, NOTWITHSTANDING THE 07 EXCLUSION OF THOSE BUILDINGS FROM THE DEPARTMENT OF 08 PUBLIC SAFETY'S JURISDICTION MADE BY AS 18.70.080(a)(2)]; 09 (B) for mechanical standards, the standards set out in the 10 version of the Uniform Mechanical Code adopted by the Department of Public 11 Safety under AS 18.70.080, including the provisions of that code applicable to 12 buildings used for residential purposes containing fewer than four dwelling 13 units, notwithstanding the exclusion of those buildings from the Department of 14 Public Safety's jurisdiction made by AS 18.70.080(a)(2); 15 (C) for plumbing standards, the minimum plumbing code 16 adopted for the state under AS 18.60.705; and 17 (D) for electrical standards, the minimum electrical standards 18 prescribed by AS 18.60.580. 19 * Sec. 8. AS 18.60 is amended by adding a new section to read: 20 Article 12B. State Residential Building Code. 21 Sec. 18.60.860. State residential building code. (a) Except as provided in (b) 22 and (c) of this section, the Department of Commerce, Community, and Economic 23 Development shall adopt by regulation a nationally recognized residential building 24 code as the state residential building code. The department may modify the nationally 25 recognized residential building code as necessary. The state residential building code 26 adopted under this subsection will serve as the minimum standard for residential 27 construction in the state for residential dwellings covered by the code. The department 28 shall administer the state residential building code. 29 (b) A municipality may adopt a nationally recognized residential building 30 code to use in place of the state residential building code adopted under (a) of this 31 section if the municipality determines that adoption is necessary to promote the best

01 interests of the municipality. The municipality may modify the nationally recognized 02 residential building code as necessary. A code adopted by a municipality under this 03 subsection will serve as the minimum residential building code for that municipality. 04 (c) The Alaska Housing Finance Corporation may adopt a nationally 05 recognized residential building code to use in place of the state residential building 06 code adopted under (a) of this section if the corporation determines that adoption is 07 necessary to carry out the duties of the corporation and is in the best interest of the 08 state. The corporation may modify the nationally recognized residential building code 09 as necessary. A code adopted by the Alaska Housing Finance Corporation under this 10 subsection will serve as the minimum residential building code for purposes of the 11 corporation's activities. 12 (d) If another statute conflicts with this section by requiring the application of 13 a code other than the state residential building code adopted under this section, that 14 statute governs to the extent of the conflict. 15 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 APPLICABILITY. (a) AS 08.18.025, as amended by sec. 1 of this Act, and 18 AS 08.18.025(d), added by sec. 2 of this Act, apply to a residential contractor that is issued a 19 residential contractor endorsement under AS 08.18.025(a), as amended by sec. 1 of this Act, 20 on or after the effective date of this Act. In this subsection, "residential contractor" has the 21 meaning given in AS 08.18.171, as amended by sec. 3 of this Act. 22 (b) AS 18.60.860, added by sec. 8 of this Act, applies to new buildings that are built 23 on or after the effective date of this Act. 24 * Sec. 10. This Act takes effect January 1, 2024.