00                            HOUSE BILL NO. 340                                                                          
01 "An Act relating to damages in an action for a defect in the design, construction, and                                  
02 remodeling of certain dwellings; and providing for an effective date."                                                  
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 09.45.895 is repealed and reenacted to read:                                                      
05            Sec. 09.45.895.  Limitation on damages; collateral sources.  (a)  In an action                             
06       covered under AS 09.45.881 - 09.45.899, a claimant may recover only the following                                 
07       damages caused by a defect:                                                                                       
08                 (1)  the reasonable cost of repairs necessary to cure a defect, including                               
09       reasonable and necessary engineering or consulting fees required to evaluate and cure                             
10       the defect, that the construction professional is responsible for repairing;                                      
11                 (2)  the reasonable expenses of temporary housing reasonably                                            
12       necessary during the repair period;                                                                               
13                 (3)  the reduction in market value, if any, to the extent that the                                      
14       reduction is due to the defect; and                                                                               

01                 (4)  reasonable and necessary attorney fees.                                                            
02            (b)  The total damages awarded for an action covered under AS 09.45.881 -                                    
03       09.45.899 may not exceed the greater of the claimant's purchase price for the                                     
04       residence or the current fair market value of the residence without the defect.                                   
05            (c)  In an action under AS 09.45.881 - 09.45.899, a court shall deduct from the                              
06       compensation awarded to a claimant any compensation paid to the claimant under a                                  
07       homeowner's warranty contract or a homeowner's insurance policy as compensation                                   
08       for the defects that are the subject of the action.  The amount of this deduction does                            
09       not include any compensation paid by the construction professional to the claimant to                             
10       satisfy the claim or any compensation paid under an insurance policy issued to the                                
11       construction professional to satisfy the claim.                                                                   
12    * Sec. 2.  The uncodified law of the State of Alaska is amended by adding a new section to                         
13 read:                                                                                                                   
14       APPLICABILITY.  This Act applies to an action covered under AS 09.45.881 -                                        
15 09.45.899 that accrues on or after the effective date of this Act.                                                      
16    * Sec. 3.  This Act takes effect July 1, 2004.