Legislature(2003 - 2004)

05/02/2003 04:05 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 268-LICENSING SPECIALTY CONTRACTORS                                                                                        
                                                                                                                                
CHAIR ANDERSON announced  that the final order  of business would                                                               
be  HOUSE BILL  NO. 268,  "An Act  relating to  an exemption  for                                                               
specialty  contractors  under  the  laws  regulating  architects,                                                               
engineers, land surveyors, and landscape architects."                                                                           
                                                                                                                                
HEATH  HILYARD, Staff  to  Representative  Lesil McGuire,  Alaska                                                               
State Legislature,  presented HB  268 on  behalf of  the sponsor,                                                               
Representative McGuire.  Mr. Hilyard paraphrased the sponsor                                                                    
statement, which read as follows:                                                                                               
                                                                                                                                
     I have introduced HB 268  by request of the state Board                                                                    
     of  Registration  for  Architects, Engineers  and  Land                                                                    
     Surveyors   (AELS   Board),    the   regulatory   board                                                                    
     responsible  to  ensure  minimum competency  of  design                                                                    
     professionals  it  regulates  and to  ensure  that  the                                                                    
     public health,  safety, and welfare  is met.   The AELS                                                                    
     Board is  also responsible for overseeing  the scope of                                                                    
     work practices of those professionals.                                                                                     
                                                                                                                                
     There  currently  exists  an  exemption  for  specialty                                                                    
     contractors in  AS 08.48.331  that reads:   "...  (7) a                                                                    
     specialty  contractor  licensed  under AS  08.18  while                                                                    
     engaged in the business  of construction contracting or                                                                    
     designing systems  for work within the  specialty to be                                                                    
     performed  or supervised  by the  specialty contractor,                                                                    
     or a  contractor preparing shop  or field  drawings for                                                                    
     work that  the specialty  contractor has  contracted to                                                                    
     perform;".                                                                                                                 
                                                                                                                                
     The  AELS Board  is  concerned,  and its  investigators                                                                    
     have  indicated, that  specialty contractors  are using                                                                    
     this  statutory   exemption  to  go   beyond  specialty                                                                    
     contracting  and  actually   perform  the  design  work                                                                    
     without   licensed   professionals  on   nonresidential                                                                    
     projects.    The  work could  encompass  nonresidential                                                                    
     facilities such  as commercial, civic,  and educational                                                                    
     uses, and  should be designed by  registered architects                                                                    
     and engineers.   The AELS Board  believes the statutory                                                                    
     exemption has created a  loophole that allows specialty                                                                    
     contractors to perform work  beyond their expertise and                                                                    
     believe  there  may  be serious  public  health  and/or                                                                    
     safety  concerns when  a building  used by  the general                                                                    
     public is designed without  the expertise of registered                                                                    
     Alaskan architects and engineers.                                                                                          
                                                                                                                                
     The  Board's investigators  indicated  that there  have                                                                    
     been    numerous   incidents    of   construction    of                                                                    
     nonresidential projects  that did not have  an engineer                                                                    
     or an  architect involved in  the design process.   The                                                                    
     AELS Board  wants specialty contractors  to be  able to                                                                    
     perform  specialty contractor  residential work  and to                                                                    
     be  able to  produce shop  drawings for  nonresidential                                                                    
     work  based   upon  designs  created   by  professional                                                                    
     architects, engineers, or landscape architects.                                                                            
                                                                                                                                
Number 1890                                                                                                                     
                                                                                                                                
PATRICK KALEN, Member, AELS Board,  thanked the committee for its                                                               
action  on  HB  252.    Mr. Kalen  confirmed  that  AELS  Board's                                                               
investigator highlighted that there were  cases that he wanted to                                                               
bring  forward, but  couldn't because  the specialty  contractors                                                               
are using  the earlier mentioned  statutory exemption.   He urged                                                               
the committee to pass HB 268.                                                                                                   
                                                                                                                                
Number 1934                                                                                                                     
                                                                                                                                
COLIN   MAYNARD,   Principle,    BPF   Engineers   (ph);   Alaska                                                               
Professional  Design Council  (APDC),  related that  it has  been                                                               
brought to  [APDC's] attention that some  mechanical, electrical,                                                               
and  specialty contractors  are  designing  projects without  the                                                               
benefit  of training  required to  be a  licensed engineer.   The                                                               
aforementioned  can create  a  hazard for  life  and safety,  and                                                               
therefore he urged the committee to pass HB 268.                                                                                
                                                                                                                                
REPRESENTATIVE ROKEBERG remarked that  this is an extraordinarily                                                               
controversial provision in  the law and thus care  must be taken.                                                               
He turned  attention to page 2,  line 26, and inquired  as to the                                                               
meaning of  "field drawings for  work."   He also inquired  as to                                                               
whether any  specialty contractor couldn't use  field drawings or                                                               
prepared shop drawings for work in the field.                                                                                   
                                                                                                                                
MR.  MAYNARD explained  that the  design for  whatever system  is                                                               
designed by an engineer in  conjunction with the other trades and                                                               
the architect for the project in  order to develop a cohesive set                                                               
of documents.  Those documents  are turned over to the contractor                                                               
who prepares shop  drawings, which specify each part  and how the                                                               
parts fit together.  The shop  drawings are the drawings that are                                                               
used  in  the field  to  put  the  project  together.   The  shop                                                               
drawings can  be prepared by  the specialty contractor  while the                                                               
base drawings should be designed by the licensed engineer.                                                                      
                                                                                                                                
REPRESENTATIVE  ROKEBERG  surmised  that  the  intention  of  the                                                               
statute is that  the specialty contractor could  prepare the shop                                                               
or field drawings  based on the design drawings  developed by the                                                               
professional.                                                                                                                   
                                                                                                                                
MR. MAYNARD said  that would be correct.  However,  he noted that                                                               
residential construction is different  because, in theory, anyone                                                               
can design for residential construction.   In further response to                                                               
Representative   Rokeberg,  Mr.   Maynard  specified   that  this                                                               
residential exemption is found on page 2, line 12-16.                                                                           
                                                                                                                                
REPRESENTATIVE ROKEBERG asked if this  is a recommendation of the                                                               
[AELS] Board.                                                                                                                   
                                                                                                                                
MR.  MAYNARD  replied  yes,  through the  request  of  the  [AELS                                                               
Board's] investigator.                                                                                                          
                                                                                                                                
MR. KALEN  confirmed the  above.   In response  to Representative                                                               
Rokeberg,  Mr. Kalen  said that  he  hadn't spoken  with all  the                                                               
specialty contractors in  the state, although he  is one himself.                                                               
Mr.  Kalen  said  that  he  didn't  know  whether  the  specialty                                                               
contractors will  have a  problem with  being allowed  to design.                                                               
However, great care was taken  to allow the specialty contractors                                                               
to prepare shop and field drawings.                                                                                             
                                                                                                                                
REPRESENTATIVE  ROKEBERG asked  if it  was common  for mechanical                                                               
contractors to do their own shop  drawings.  He asked if having a                                                               
mechanical  engineer   do  the  drawings  is   necessary  when  a                                                               
mechanical contractor is doing  modifications to an off-the-shelf                                                               
system.                                                                                                                         
                                                                                                                                
MR.  MAYNARD  answered that  he  believes  that if  a  mechanical                                                               
contractor does  design-build work, the mechanical  contractor is                                                               
usually  owned  or operated  by  a  mechanical engineer  or  have                                                               
mechanical engineers  on staff.   If  a mechanical  contractor is                                                               
going  to design  a system  completely from  scratch without  any                                                               
engineer drawings, someone  who is licensed would  need to create                                                               
shop drawings from  a set of [base] drawings  and [the mechanical                                                               
contractor] wouldn't need to have a license.                                                                                    
                                                                                                                                
REPRESENTATIVE ROKEBERG  surmised that the enactment  of this law                                                               
would mean that  someone with 30 years of  experience wouldn't be                                                               
able to prepare shop drawings.                                                                                                  
                                                                                                                                
MR. MAYNARD replied  no, the individual would be  able to prepare                                                               
shop drawings but wouldn't be able to do the original design.                                                                   
                                                                                                                                
Number 2270                                                                                                                     
                                                                                                                                
SAM  KITO,  III,  Alaska   Professional  Design  Council  (APDC),                                                               
related  his   understanding  that  Representative   Rokeberg  is                                                               
concerned  that  a  mechanical contractor  wouldn't  be  able  to                                                               
prepare shop  drawings.  The  exemption in the  licensure statute                                                               
is to allow mechanical administrators  and contractors to prepare                                                               
shop drawings,  but those shop  drawings would be completed  by a                                                               
registered professional engineer.                                                                                               
                                                                                                                                
REPRESENTATIVE  ROKEBERG  remarked that  he  believes  HB 268  is                                                               
going  to cause  a lot  of people  problems, and  therefore there                                                               
should be serious  review of it.  He expressed  the need to craft                                                               
this legislation such that it  doesn't harm commerce and business                                                               
in the  state.  Furthermore, Representative  Rokeberg pointed out                                                               
that HB  268 has only  one committee  of referral.   He mentioned                                                               
the need  to inform the parties  which would be impacted  by this                                                               
legislation.                                                                                                                    
                                                                                                                                
REPRESENTATIVE   DAHLSTROM  inquired   as   to   how  long   this                                                               
legislation has been noticed.                                                                                                   
                                                                                                                                
CHAIR ANDERSON replied that it has been noticed for a week.                                                                     
                                                                                                                                
REPRESENTATIVE DAHLSTROM  noted that  she wonders  whether anyone                                                               
has any  concerns if no one  has expressed concern over  the week                                                               
the legislation has been noticed.                                                                                               
                                                                                                                                
MR.  KITO  said   that  he  has  spoken   with  the  homebuilders                                                               
representative who  said that  HB 268  doesn't propose  to impact                                                               
anything the  homebuilders are working  on.     He noted  that he                                                               
has  had   brief  conversations   with  the   Associated  General                                                               
Contractors, who haven't  had an opportunity to  fully review the                                                               
legislation but aren't concerned at this point.                                                                                 
                                                                                                                                
REPRESENTATIVE ROKEBERG stated that  this legislation impacts the                                                               
specialty contractors.   The legislation  requires that  there be                                                               
an architectural or engineering stamp.                                                                                          
                                                                                                                                
TAPE 03-46, SIDE B                                                                                                            
                                                                                                                                
CHAIR ANDERSON announced that HB 268 would be held over.                                                                        

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