Legislature(2001 - 2002)

05/12/2002 09:06 PM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                                                                                                                                
     SENATE CS FOR CS FOR HOUSE BILL NO. 27(JUD)                                                                                
     "An  Act  relating  to  the  registration  of  individuals  who                                                            
     perform   home   inspections;   relating   to   regulation   of                                                            
     contractors;   relating  to registration   fees  for  specialty                                                            
     contractors,  home inspectors,  and associate home inspectors;                                                             
     relating to home inspection  requirements for residential loans                                                            
     purchased   or   approved  by   the  Alaska   Housing   Finance                                                            
     Corporation;  relating  to civil  actions by  and against  home                                                            
     inspectors  and to civil actions arising from  residential unit                                                            
     inspections; and providing for an effective date."                                                                         
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  NORM ROKEBERG, sponsor, testified  to his four years                                                            
of  effort on  this  matter.  He explained  this  legislation  would                                                            
regulate home inspectors,  which Alaska currently does not regulate.                                                            
He noted "every other aspect"  of home sales are regulated. He spoke                                                            
to the importance  of this legislation  to consumers, pointing  out,                                                            
"anybody  can go  out and  call himself  a home  inspector now;  and                                                            
that's not good and that's not right."                                                                                          
                                                                                                                                
Representative  Rokeberg stated the  legislation is lengthy  because                                                            
of  the  necessary  changes  to  the specialty   contractor  license                                                            
statutes. He noted this  legislation imposes a $250 biannual license                                                            
fee, which he stated is  less than would be required if a regulatory                                                            
board were established.                                                                                                         
                                                                                                                                
Senator  Wilken relayed  his experiences  involving  two "bad"  home                                                            
inspectors.                                                                                                                     
                                                                                                                                
Senator Wilken  "moved to report House  Bill 27 from Committee  with                                                            
individual recommendations and attached fiscal notes."                                                                          
                                                                                                                                
Senator Olson  objected to ask about the impact of  this legislation                                                            
on inspections of homes in Rural Alaska.                                                                                        
                                                                                                                                
Representative  Rokeberg replied that currently home  sales financed                                                            
by the  Alaska Housing  Finance  Corporation (AHFC)  must obtain  an                                                            
inspection  by an International  Brotherhood  of Electrical  Workers                                                            
(IBEW)  member home  inspector.   He noted  that at  the request  of                                                            
AHFC,  this practice  would continue  under the  provisions in  this                                                            
legislation.   However,  he  pointed  out,  the  current   statutory                                                            
immunity from lawsuits, is removed for these inspectors.                                                                        
                                                                                                                                
Senator Olson  asked how  a rural homeowner  or homebuyer obtains  a                                                            
home inspection.                                                                                                                
                                                                                                                                
Representative Rokeberg  responded that if a home inspector does not                                                            
reside  in the area,  a home inspector  from another  area could  be                                                            
retained. He  noted several hundred  home inspectors operate  in the                                                            
State and that many reside in smaller communities.                                                                              
                                                                                                                                
Senator  Olson next  asked about  inspections of  homes financed  by                                                            
regional housing authorities and not through the AHFC.                                                                          
                                                                                                                                
Representative  Rokeberg explained  there is  no statutory  required                                                            
that a home inspection  be conducted in the sale of  a home. Rather,                                                            
he  stated,  lenders  require  the  majority  of  home inspections.                                                             
Therefore,  he assured,  this legislation  would  have no impact  on                                                            
regional housing authorities' activities.                                                                                       
                                                                                                                                
Senator Olson  removed his  objection to the  motion to report  this                                                            
bill from Committee.                                                                                                            
                                                                                                                                
Without  objection CS  HB 27 (FIN)  MOVED from  Committee with  zero                                                            
fiscal note  #5 from the Department  of Revenue, and $64,500  fiscal                                                            
note #6 from the  Department of Community and Economic  Development.                                                            
                                                                                                                                

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