SB 197: "An Act relating to residential building codes; relating to construction contractors and residential contractor endorsements; establishing the Alaska State Building Code Council; and providing for an effective date."
00 SENATE BILL NO. 197 01 "An Act relating to residential building codes; relating to construction contractors and 02 residential contractor endorsements; establishing the Alaska State Building Code 03 Council; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 08.18.025 is amended to read: 06 Sec. 08.18.025. Residential contractors. (a) A general contractor may not 07 undertake the construction or alteration, or submit a bid to undertake the construction 08 or alteration of a [PRIVATELY-OWNED] residential structure of one to four units 09 that is covered by the state residential building code or advertise or publicly 10 represent that the general contractor may undertake work of this type in the state 11 without a residential contractor endorsement issued under this section. In this 12 subsection, "alteration" means changes that have a value greater than 25 percent of the 13 value of the structure being altered. 14 (b) The department shall issue a residential contractor endorsement to a person
01 who 02 (1) has a certificate of registration as a general contractor; 03 (2) passes a residential contractor examination, which shall be offered 04 by the department at least once each year in each judicial district; the examination, 05 which may be written or practical, must test the person's knowledge of the state 06 residential building code and may test competence in relation to arctic structural and 07 thermal construction techniques and other matters as determined by the department in 08 consultation with representatives of the construction industry; 09 (3) applies for an endorsement within 12 months after passing the 10 examination required under (2) of this subsection; 11 (4) within the two years preceding the date of application for the 12 endorsement, has satisfactorily completed either the Alaska craftsman home program 13 sponsored by the department, or its equivalent, or a postsecondary course in arctic 14 engineering, or its equivalent; 15 (5) within the seven years preceding the date of application, has not 16 been under a sentence for an offense related to forgery, theft in the first or second 17 degree, extortion, or conspiracy to defraud creditors or for a felony involving 18 dishonesty; and 19 (6) pays the appropriate fees. 20 (c) The department may not renew an endorsement issued under this section 21 unless the applicant submits proof of continued competency relating to residential 22 contracting and the state residential building code that satisfies the department. A 23 lapsed endorsement may be reinstated, within two years after the lapse, upon proof of 24 continued competency relating to residential contracting and the state residential 25 building code, payment of a renewal fee for the intervening time period, and payment 26 of any penalty fee established under AS 08.01.100(b). If the endorsement has been 27 lapsed for more than two years, the department may not reinstate it until the person 28 also passes the residential contractor examination described in (b) of this section. 29 * Sec. 2. AS 08.18.025 is amended by adding a new subsection to read: 30 (d) To maintain a residential contractor endorsement under this section, a 31 residential contractor shall comply with the state residential building code when
01 providing residential contractor services to residential buildings covered by the code, 02 except when the residential contractor is providing residential contractor services to a 03 building under another nationally recognized residential building code adopted by a 04 municipality under AS 18.60.860(b). 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 of one to four units, including a 09 dwelling covered by the state residential building code, that is used or intended to 10 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 18.56.088(c) is amended to read: 15 (c) The board may adopt regulations to carry out the purposes of this chapter, 16 and shall adopt regulations necessary for the following purposes: 17 (1) determination of borrower eligibility, including [, BUT NOT 18 LIMITED TO,] income limitations and the determination of remote, underdeveloped, 19 or blighted areas of the state; 20 (2) loan guidelines and terms, including [BUT NOT LIMITED TO] 21 maximum loan amounts and required loan-to-value ratios, but excluding mortgage 22 loan interest rates; 23 (3) characteristics of housing eligible for loans or purchase of loans, 24 including compliance with the requirements of AS 18.56.300; 25 (4) the qualifications of loan originators and servicers and the method 26 of allocating amounts available for the purchase of loans; 27 (5) establishment of a procedure, including a fee schedule, for the 28 commitment for one year or less of money for the purchase of an individual mortgage 29 loan at a specific interest rate; [AND] 30 (6) establishment of the program of housing assistance authorized by 31 AS 18.56.090(b), including program regulations that, at minimum,
01 (A) establish priorities and criteria for providing money and 02 other forms of authorized assistance in response to housing assistance 03 proposals; 04 (B) define the forms of housing assistance authorized under 05 AS 18.56.090(b); 06 (C) set out procedures to evaluate housing assistance proposals; 07 (D) set out procedures to approve the award of housing 08 assistance; and 09 (E) prescribe methods of monitoring the use of money paid out 10 under AS 18.56.090(b) and the progress of activity under the approved housing 11 assistance program; and 12 (7) adoption and administration of the state residential building 13 code under AS 18.60.860(a). 14 * Sec. 6. 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 standards [CODE]; 22 or 23 (2) the unit is in compliance with the comparable standards for similar 24 housing established by the state residential building standards [CODE] 25 (A) if the unit is located 26 (i) within a municipality whose construction codes do 27 not meet the standards for similar housing established by the state 28 residential building standards [CODE]; 29 (ii) within a municipality that does not enforce 30 construction codes; or 31 (iii) outside a municipality; or
01 (B) as to each specific code within the construction codes of 02 the municipality that has adopted and enforces construction codes if the 03 specific code does not meet or exceed the comparable standard for similar 04 housing established by the state residential building standards [CODE]. 05 * Sec. 7. AS 18.56.300(b) is amended to read: 06 (b) As a condition of a commitment to purchase or approve a loan under this 07 section for residential housing the construction of which begins after June 30, 1992, 08 the corporation shall require inspection of the unit of residential housing that is the 09 subject of the loan. The inspection must be performed by a municipal building 10 inspector, by an individual who is registered under AS 08.18 to perform home 11 inspections for new construction, by an architect registered under AS 08.48, by an 12 engineer registered under AS 08.48, or by another person approved by the corporation. 13 When the unit of residential housing is located in a rural area, the person who makes 14 the inspection may use methods other than a personal physical inspection to make the 15 inspection if the method is approved by the corporation, and variations from the 16 applicable code may be accepted at the corporation's discretion, if the person 17 authorized to inspect the unit under this subsection satisfies the corporation that the 18 variation does not adversely affect the structural integrity of the unit or the health and 19 safety of the occupants [RESIDENTS]. The person who makes the inspection shall 20 determine whether the construction conforms to relevant provisions of the 21 construction codes of the municipality or of the state residential building standards 22 [CODE], as applicable, at each of the following stages of construction: 23 (1) plan approval; 24 (2) completion of footings and foundations; 25 (3) completion of electrical installation, plumbing, and framing; 26 (4) completion of installation of insulation; 27 (5) final approval. 28 * Sec. 8. AS 18.56.300(e)(3) is amended to read: 29 (3) "state residential building standards [CODE]" means 30 (A) for building standards, the standards set out in the state 31 residential building code [VERSION OF THE UNIFORM BUILDING
01 CODE] adopted by the Alaska Housing Finance Corporation 02 [DEPARTMENT OF PUBLIC SAFETY] under AS 18.60.860(a) 03 [AS 18.70.080, INCLUDING THE PROVISIONS OF THAT CODE 04 APPLICABLE TO BUILDINGS USED FOR RESIDENTIAL PURPOSES 05 CONTAINING FEWER THAN FOUR DWELLING UNITS, 06 NOTWITHSTANDING THE EXCLUSION OF THOSE BUILDINGS FROM 07 THE DEPARTMENT OF PUBLIC SAFETY'S JURISDICTION MADE BY 08 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. 9. AS 18.60 is amended by adding new sections to read: 20 Article 12A. State Residential Building Code. 21 Sec. 18.60.860. State residential building code. (a) Except as provided in (b) 22 of this section, the Alaska Housing Finance Corporation shall adopt by regulation as 23 the state residential building code the 2018 International Residential Code published 24 by the International Code Council, or a later version of the International Residential 25 Code published by the International Code Council if the corporation determines that 26 adoption of the later version is necessary to promote the best interests of the state. The 27 corporation may modify the state residential building code as necessary. The state 28 residential building code must allow for use of load-bearing dimensional lumber that 29 is graded and certified under AS 41.17.630 for one-, two-, and three-family dwellings 30 in this state. The state residential building code is the minimum standard of 31 construction in the state for residential structures of one to four units. The corporation
01 shall administer the state residential building code. 02 (b) A municipality may adopt a nationally recognized residential building 03 code to use in place of the state residential building code if the municipality 04 determines that adoption of the nationally recognized residential building code is 05 necessary to promote the best interests of the municipality. The municipality may 06 modify the nationally recognized residential building code as necessary. 07 (c) If another statute conflicts with this section by requiring the application of 08 a code other than the state residential building code adopted under this section, that 09 statute governs to the extent of the conflict. 10 (d) A building is exempt from the state residential building code if the 11 building is 12 (1) an owner-built home that is not subject to a residential building 13 code other than the state residential building code; or 14 (2) a recreational cabin. 15 (e) In this section, 16 (1) "owner-built home" means a single-family home that is constructed 17 by the owner acting as the owner's own contractor under AS 08.18.161(11); 18 (2) "recreational cabin" means a building that 19 (A) is inhabited only occasionally for noncommercial hunting, 20 fishing, or other recreational purposes; 21 (B) lacks available public utility services; 22 (C) is two or fewer stories high; 23 (D) is not used by a person as a mailing address; and 24 (E) is not listed as a place of residence on a person's tax return, 25 driver's license, vehicle registration, or voter registration. 26 Sec. 18.60.865. Alaska State Building Code Council. (a) The Alaska State 27 Building Code Council is established as an advisory council in the Alaska Housing 28 Finance Corporation. 29 (b) The purpose of the council is to provide independent analysis, objective 30 advice, and recommendations to the board of directors of the Alaska Housing Finance 31 Corporation during the process of formulating, adopting, and periodically updating the
01 state residential building code. 02 (c) The council consists of 11 public members appointed by the board of 03 directors of the Alaska Housing Finance Corporation. The board may remove 04 members and fill vacancies. The board shall appoint to the council 05 (1) six general contractors with a residential contractor endorsement 06 from the Department of Commerce, Community, and Economic Development, each 07 from a different geographic region of the state; and 08 (2) five members with building code experience or statewide business 09 or economic development experience. 10 (d) The council shall elect a chair and vice-chair from among its membership. 11 (e) The council shall meet on an as-needed basis at the request of the board of 12 directors of the Alaska Housing Finance Corporation or by a call of the chair. 13 (f) Members of the council serve without compensation, but are entitled to per 14 diem and travel expenses authorized for boards and commissions under AS 39.20.180. 15 (g) Alaska Housing Finance Corporation staff shall provide administrative 16 support to the council. 17 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 APPLICABILITY. (a) AS 08.18.025, as amended by sec. 1 of this Act, and 20 AS 08.18.025(d), added by sec. 2 of this Act, apply to a residential contractor who is issued a 21 residential contractor endorsement under AS 08.18.025(a), as amended by sec. 1 of this Act, 22 on or after the effective date of this Act. In this subsection, "residential contractor" has the 23 meaning given in AS 08.18.171, as amended by sec. 3 of this Act. 24 (b) AS 18.60.860, added by sec. 9 of this Act, applies to new buildings that are built 25 on or after the effective date of this Act. 26 * Sec. 11. This Act takes effect January 1, 2025.