Legislature(2013 - 2014)BELTZ 105 (TSBldg)

04/10/2014 01:30 PM Senate LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 241 EXTEND BOARD OF MARITAL & FAMILY THERAPY TELECONFERENCED
Moved HB 241 Out of Committee
+ HB 239 EXTEND BOARD OF EXAMINERS IN OPTOMETRY TELECONFERENCED
Moved HB 239 Out of Committee
+ HB 240 EXTEND BOARD OF CHIROPRACTIC EXAMINERS TELECONFERENCED
Moved HB 240 Out of Committee
+ HB 242 EXTEND PT & OCCUPATIONAL THERAPY BOARD TELECONFERENCED
Moved HB 242 Out of Committee
+ HB 302 PUBLIC ACCOUNTANTS TELECONFERENCED
Moved CSHB 302(L&C) Out of Committee
+ Bills Previously Heard/Scheduled: TELECONFERENCED
*+ SB 189 EXEMPTION: LICENSING OF CONTRACTORS TELECONFERENCED
Moved CSSB 189(L&C) Out of Committee
*+ SB 193 CONTRACTORS: BONDS; LICENSING TELECONFERENCED
Moved SB 193 Out of Committee
           SB 189-EXEMPTION: LICENSING OF CONTRACTORS                                                                       
                                                                                                                                
1:31:08 PM                                                                                                                    
CHAIR DUNLEAVY  announced the  consideration of  SB 189.  "An Act                                                               
relating  to an  exemption  from the  regulation of  construction                                                               
contractors." He noted that this  was the third hearing and there                                                               
was a committee substitute (CS).                                                                                                
                                                                                                                                
1:31:15 PM                                                                                                                    
SENATOR MICCICHE  moved to adopt  the work  draft CS for  SB 189,                                                               
labeled 28-LS1322\O, as the working document.                                                                                   
                                                                                                                                
CHAIR DUNLEAVY objected for discussion purposes.                                                                                
                                                                                                                                
1:31:43 PM                                                                                                                    
STEVE RICCI,  Aide, Senate Labor &  Commerce Committee, presented                                                               
the  changes in  Version  O for  SB 189.  He  explained that  the                                                               
changes  to  the   exemption  of  who  is  a   contractor  in  AS                                                               
08.18.161(12)  are confined  to those  who live  in a  home rule,                                                               
first class,  or second class  borough, or  unified municipality.                                                               
The language in  this paragraph was further  amended to recognize                                                               
that  it's not  unusual  for Alaskans  to leave  a  portion of  a                                                               
project unfinished. The phrase "after  the period of construction                                                               
ends" was  amended to say  "after the structure is  completed for                                                               
its  intended  purpose"  thereby  removing the  ambiguity  as  to                                                               
whether construction is complete. If  the person is occupying the                                                               
home, the  assumption is  that it's being  used for  its intended                                                               
purpose  regardless  of the  fact  that  the  home may  still  be                                                               
covered in Tyvek instead of siding.                                                                                             
                                                                                                                                
CHAIR DUNLEAVY removed his objection.                                                                                           
                                                                                                                                
MR RICCI reminded members of the  purpose of SB 189. It addresses                                                               
the issue  that a  growing number  of individuals  are exploiting                                                               
the  owner-builder  exemption  in   AS  08.18.161  to  avoid  the                                                               
licensing,  bonding, and  insurance  requirements  that apply  to                                                               
contractors. Under current statute  the exemption under paragraph                                                               
(12) provides that an owner who  acts as their own contractor may                                                               
construct  one home,  duplex, triplex,  four-plex, or  commercial                                                               
building every  two years. The  bill refines this by  adding that                                                               
someone can sell earlier if  they demonstrate to the satisfaction                                                               
of   the  [Department   of  Commerce,   Community  and   Economic                                                               
Development  (DCCED)] that  an earlier  sale is  not intended  to                                                               
circumvent the requirements under  this chapter. The intention is                                                               
to capture those who are building for income purposes.                                                                          
                                                                                                                                
SENATOR OLSON asked about the unorganized borough.                                                                              
                                                                                                                                
MR. RICCI replied  there will be not changes  for the individuals                                                               
living in unorganized boroughs.                                                                                                 
                                                                                                                                
CHAIR DUNLEAVY opened public testimony.                                                                                         
                                                                                                                                
1:36:38 PM                                                                                                                    
JAMES  SQUYRES,  representing  himself, Delta  Junction,  Alaska,                                                               
stated that  he and a  number of others  just received a  copy of                                                               
the most recent  version of SB 189 and there  wasn't much time to                                                               
review it. He  noted that this bill was just  scheduled today and                                                               
a  lot  of people  who  might  want  to testify  either  couldn't                                                               
arrange their schedule  on such short notice or  didn't have time                                                               
to prepare  an appropriate response.  He requested  the committee                                                               
allow more  time for  people to  understand the  bill and  how it                                                               
would affect them.                                                                                                              
                                                                                                                                
MR. SQUIRES  expressed concern about the  unintended consequences                                                               
because he reads the exemption in  paragraph (12) to now apply to                                                               
homes  in  the  unorganized  borough and  not  in  the  organized                                                               
borough.  He also  pointed out  that owner-builders  invest their                                                               
own capital which  is a different relationship  than a contractor                                                               
who  is  using capital  from  another  source. This  burdens  the                                                               
owner-builder. He  suggested that  this matter should  be handled                                                               
at the borough  level and further suggested that  the bill raises                                                               
constitutional issues.                                                                                                          
                                                                                                                                
1:40:43 PM                                                                                                                    
PAMELA  GOODE,  representing   herself,  Delta  Junction,  stated                                                               
agreement with Mr.  Squire that the bill was noticed  at the 11th                                                               
hour  and for  that  reason  alone it  should  be postponed.  She                                                               
described  some  of the  language  in  the sponsor  statement  as                                                               
offensive  and  questioned the  notion  of  the state  protecting                                                               
consumers.  She  offered  her  perspective  that  the  government                                                               
should stay out.                                                                                                                
                                                                                                                                
1:43:07 PM                                                                                                                    
JEFF  HALL, representing  himself,  Palmer, Alaska,  said he's  a                                                               
homebuilder in  Palmer who  supports the  original version  of SB
189.  He maintained  that the  owner-builder exemption  should be                                                               
applied statewide.                                                                                                              
                                                                                                                                
1:44:32 PM                                                                                                                    
PATRICK  DALTON, representing  himself,  Delta Junction,  Alaska,                                                               
expressed  concern that  SB 189  limits  a person's  free use  of                                                               
their private property  when it sets parameters on  when they can                                                               
sell  their home.  He questioned  the  broad application  because                                                               
many  people in  the organized  areas of  the state  are in  very                                                               
remote locations living  out the Alaskan dream  of building their                                                               
own home.  He concluded that  this matter should be  addressed at                                                               
the borough level.                                                                                                              
                                                                                                                                
1:49:02 PM                                                                                                                    
SENATOR MICCICHE asked Mr. Ricci  to clarify that the unorganized                                                               
borough is no longer included in this exemption.                                                                                
                                                                                                                                
MR. RICCI  stated that the  limitation to selling one  home every                                                               
two years,  only applies  to construction in  a home  rule, first                                                               
class,  or  second class  borough  or  unified municipality.  The                                                               
additions to the exemption in  paragraph (12) only apply in those                                                               
specific areas.  Owners in  the unorganized  borough are  held to                                                               
existing statute.                                                                                                               
                                                                                                                                
SENATOR  MICCICHE summarized  that  licensing and  bonding are  a                                                               
state  responsibility  as  opposed  to building  codes  that  are                                                               
adopted by a municipality.                                                                                                      
                                                                                                                                
MR. RICCI  confirmed that the [Department  of Commerce, Community                                                               
and Economic Development (DCCED)]  does set licensing and bonding                                                               
requirements.                                                                                                                   
                                                                                                                                
1:50:55 PM                                                                                                                    
SARA CHAMBERS,  Director, Division of Corporations,  Business and                                                               
Professional  Licensing, Department  of  Commerce, Community  and                                                               
Economic Development  (DCCED), clarified for the  record that the                                                               
Department  of  Commerce,   Community  and  Economic  Development                                                               
(DCCED) handles licensing and bonding matters.                                                                                  
                                                                                                                                
SENATOR MICCICHE  asked Ms.  Chambers to confirm  that this  is a                                                               
state agency.                                                                                                                   
                                                                                                                                
MS.   CHAMBERS  explained   that   the  legislature   establishes                                                               
statewide   licensing   and   bonding  requirements   and   DCCED                                                               
implements these through regulations.                                                                                           
                                                                                                                                
MR. RICCI,  responding to  a question  from the  Chair, confirmed                                                               
that the  CS was delivered to  committee members a few  hours ago                                                               
and it  was posted on  BASIS. Staff  was informed of  the changes                                                               
before Version O was released.                                                                                                  
                                                                                                                                
CHAIR  DUNLEAVY  found  no  further  questions  or  comments  and                                                               
solicited a motion.                                                                                                             
                                                                                                                                
1:52:31 PM                                                                                                                    
SENATOR MICCICHE moved  to report CS for SB 189,  Version O, from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s).                                                                                                                        
                                                                                                                                
CHAIR  DUNLEAVY announced  that without  objection CSSB  189(L&C)                                                               
moved from the Senate Labor & Commerce Standing Committee.                                                                      

Document Name Date/Time Subjects
HB241 Version A.pdf SL&C 4/10/2014 1:30:00 PM
HB 241
HB241 Sponsor Statement.pdf SL&C 4/10/2014 1:30:00 PM
HB 241
HB241-CED-CBPL-03-13-14.pdf SL&C 4/10/2014 1:30:00 PM
HB 241
HB241 Supporting Documents-Legislative Audit Recommendations.pdf SL&C 4/10/2014 1:30:00 PM
HB 241
HB239 Version A.pdf SL&C 4/10/2014 1:30:00 PM
HB 239
HB239 Sponsor Statement.pdf SL&C 4/10/2014 1:30:00 PM
HB 239
HB239-CED-CBPL-03-13-14.pdf SL&C 4/10/2014 1:30:00 PM
HB 239
HB239 Supporting Documents-Legislative Audit Recommendations.pdf SL&C 4/10/2014 1:30:00 PM
HB 239
HB240 Version A.pdf SL&C 4/10/2014 1:30:00 PM
HB 240
HB240 Sponsor Statement.pdf SL&C 4/10/2014 1:30:00 PM
HB 240
HB0240-CED-CBPL-03-13-14.pdf SL&C 4/10/2014 1:30:00 PM
HB 240
HB240 Supporting Documents-Legislative Audit Recommendations.pdf SL&C 4/10/2014 1:30:00 PM
HB 240
HB242 Version A.pdf SL&C 4/10/2014 1:30:00 PM
HB 242
HB242-CED-CBPL-03-13-14.pdf SL&C 4/10/2014 1:30:00 PM
HB 242
HB242 Supporting Documents-Legislative Audit Recommendations.pdf SL&C 4/10/2014 1:30:00 PM
HB 242
HB242 Sponsor Statement.pdf SL&C 4/10/2014 1:30:00 PM
HB 242
HB 302 ver U.pdf SL&C 4/10/2014 1:30:00 PM
HB 302
CSHB 302 (L&C) ver C.pdf SL&C 4/10/2014 1:30:00 PM
HB 302
CSHB 302 (L&C) Explanation of Changes ver U to ver C.pdf SL&C 4/10/2014 1:30:00 PM
HB 302
CSHB 302 (L&C)- Sponsor Statement.pdf SL&C 4/10/2014 1:30:00 PM
HB 302
CSHB 302 (L&C) Fiscal Note- DCCED-CBPL- 03-31-14.pdf SL&C 4/10/2014 1:30:00 PM
HB 302
CSHB 302 Supporting Document- AK State Board of Public Accountancy FY13 Annual Report- Page Six 3-28-14.pdf SL&C 4/10/2014 1:30:00 PM
HB 302
HB 302 Supporting Document- Letter - Amy Cooper-AKCPA 2-13-14.pdf SL&C 4/10/2014 1:30:00 PM
HB 302
HB 302 Supporting Document- Letter - Jeffrey Johnson- AK Board of Public Accounting 2-13-14.pdf SL&C 4/10/2014 1:30:00 PM
HB 302
SB 193 Support Document- AK Independent Ins Agents Brokers.pdf SL&C 4/10/2014 1:30:00 PM
SB 193
SB189_DOL_Infractions.pdf SL&C 4/10/2014 1:30:00 PM
SB 189
SB189_FiscalNote_DOLWD.pdf SL&C 4/10/2014 1:30:00 PM
SB 189
SB189_Version O.PDF SL&C 4/10/2014 1:30:00 PM
SB 189
SB189 Support Document - Borough Map.PDF SL&C 4/10/2014 1:30:00 PM
SB 189
SB189 Support Letter - MSHBA.pdf SL&C 4/10/2014 1:30:00 PM
SB 189