Legislature(2025 - 2026)BARNES 124
02/12/2025 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Role of Apprenticeships in Alaska's Workforce Development | |
| HB80 | |
| HB74 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 80 | TELECONFERENCED | |
| *+ | HB 74 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HB 80-RESIDENTIAL BUILDING CODE
3:54:32 PM
CO-CHAIR FIELDS announced that the next order of business would
be HOUSE BILL NO. 80, "An Act relating to minimum standards for
residential buildings; relating to construction contractors and
residential contractor endorsements; establishing the Alaska
State Residential Building Safety Council; and providing for an
effective date."
CO-CHAIR FIELDS noted that HB 80 was a request from the Alaska
State Home Building Association (ASHBA).
3:55:00 PM
CO-CHAIR FIELDS opened public testimony on HB 80.
3:55:20 PM
AARON WELTERLEN, Vice President, Interior Alaska Building
Association, Alaska State Home Building Association, testified
in support in HB 80. He explained that building a "code-minimum
house" is the "bare bones standard" and further emphasized that
many builders build far beyond that [standard]. He stated that
HB 80 would create consumer protection and provide for legal
pathways were a building not constructed to a minimum standard.
He reiterated that ASHBA would like to see HB 80 move forward.
3:56:26 PM
CO-CHAIR FIELDS thanked Mr. Welterlen for his work on expanding
affordable housing opportunities in Interior Alaska. Further,
he asked about lifecycle savings from building well-insulated
homes, given the rising costs of heating in Alaska.
3:56:43 PM
MR. WELTERLEN responded that lifecycle is dependent on the use
of the house. He further stated that energy use decreases
through installation of more energy-efficient features, thereby
extending the lifecycle and creating a healthy house. He noted
that HB 80 pertains to structural standards, not energy
[standards].
3:57:27 PM
DAVID MILLER, Past President, Board of Directors, Mat-Su Home
Builders Association (MSHBA), testified during the hearing on HB
80. He stated that he is a lifelong builder of 34 years. He
noted that Alaska currently has adopted a standard of building
codes through the Alaska Housing Finance Corporation (AHFC), by
which the majority of builders in the state abide. He
recognized that, occasionally, some do not build to AHFC's
standard and remarked that it is a concern to all builders.
MR. MILLER stated that the majority of MSHBA opposes HB 80 in
its current form. He asserted that, when builders follow a high
standard, it drives competition that creates an environment of
high-quality construction. He remarked that his organization
does not see lack of standards as an issue and offered his
belief that the Matanuska-Susitna ("Mat-Su") Valley would be
most affected by HB 80. He said that the Matanuska-Susitna
Borough is the fastest growing area in the state. He clarified
his belief that a building code is important but opined that [HB
80] may be premature. He stated that MSHBA adopted AHFC's
building codes [in 2024].
MR. MILLER emphasized the importance of preventing housing costs
from increasing with the administration of HB 80. Additionally,
he shared his concern that there are no provisions in the
current legislation to prevent permitting processes from being
protracted. Nonetheless, he stated that he would support the
proposed legislation in its current form.
4:01:17 PM
CO-CHAIR FIELDS asked Mr. Miller to clarify whether he was in
support of the proposed legislation.
MR. MILLER responded that, were HB 80 to be adopted at the
statewide level, it would eventually necessitate enforcement.
He asserted that the process of enforcement should be
facilitated by local governments.
4:02:10 PM
REPRESENTATIVE COULOMBE noted that Mat-Su is the fastest growing
region in Alaska. She queried the relationship between the pace
of homebuilding and building codes.
4:02:32 PM
MR. MILLER responded that they are not directly linked. He
provided an anecdote about homebuilding in Chugiak. He stated
that his company began construction the prior summer [2024], but
the project was stalled over the winter due to the time it took
to acquire materials necessitated by the Municipality of
Anchorage (MOA).
4:03:57 PM
LEAH WINTERS, Public Policy Fellow, Cold Climate Housing
Research Center, testified in support of HB 80. She reported
that she had been researching building codes in collaboration
with AHFC. She explained that Alaska currently has a patchwork
of local regulations. She argued that communities that have
adopted residential codes have adopted national standards that
are not suitable for Alaska's climate. Additionally, she stated
that local code adoption is expensive and time-consuming for
local governments. Further, she stated that it creates
inconsistencies across regions, making it more difficult for
contractors.
MS. WINTERS argued that HB 80 would create an "Alaska-specific"
starting point, from which local governments can adopt, amend,
and enforce regulations at a local level. She stated HB 80 is
designed to be flexible out of an understanding that the "one-
size-fits-all" approach does not work in Alaska communities.
She asserted that HB 80 creates a baseline that is tailored to
Alaska's conditions, therefore reducing the burden on local
governments.
MS. WINTERS stressed that HB 80 would not apply to owner
builders. She asserted that HB 80 would improve [building]
standards and consistencies while protecting the right to build
independently. She concluded by urging committee members to
support HB 80.
4:06:15 PM
REPRESENTATIVE SADDLER offered his understanding that HB 80
would require a minimum residential building code statewide, and
local governments could only exercise flexibility by making the
code stricter.
MS. WINTERS cited Colorado and Maine, which have allowed
exceptions and flexibilities for communities, typically remote,
that do not have the capacities or institutions to enforce a
statewide code. She offered her understanding that a statewide
residential building code is not inherently enforceable, and
that HB 80 would "set the baseline for the capability of local
adoption." She further echoed another speaker in stating that
local jurisdictions could adopt a code stricter than the
provisions under the proposed legislation.
REPRESENTATIVE SADDLER asked for clarification of Ms. Winters'
position on the proposed legislation.
MS. WINTERS responded that she is in support of HB 80,
particularly with the increase of natural disasters on the West
Coast. She noted that the Federal Emergency Management Agency
(FEMA) has research indicating that building codes save both
lives and money. Further, she remarked that Alaska is one of
few states lacking a statewide building code while being the
most seismically active.
REPRESENTATIVE SADDLER asked whether building codes save money
for the homebuyers or the homebuilders.
MS. WINTERS gave an anecdote about earthquakes, stating that,
when there is an earthquake, buildings that collapse must be
rebuilt. She asserted that money is saved by both the
homebuyers and the homebuilders when buildings are constructed
to withstand natural disasters, such as earthquakes.
4:09:30 PM
EDNA DEVRIES, Mayor, Matanuska-Susitna Borough, testified in
opposition to HB 80. She offered her agreement with Ms.
Winters' point on the "one-size-fits-all" approach not working
for Alaska but disagreed that the proposed legislation would
offer a solution. She asserted that HB 80 would remove local
control. She explained that the Matanuska-Susitna Borough has
limited government and is not typically receptive to state or
federal government overreach. She predicted that, were HB 80 to
pass, the borough would be required to construct a building
department. She stated that the [Mat-Su Borough] has very
qualified builders and financing agencies. In conclusion, Ms.
Devries shared her concern that the proposed legislation would
create an additional unnecessary layer of government.
4:11:33 PM
REPRESENTATIVE SADDLER asked whether the local governments in
the Matanuska-Susitna Borough currently have any local building
codes.
MS. DEVRIES answered that they have conditional use permits
regarding junk cars and marijuana shops and setbacks. She
explained that many subdivisions in the Mat-Su Borough have
homeowners' associations (HOAs) that enforce "covenants."
Additionally, she stated that if HB 80 were to pass, the Mat-Su
Borough would be required to set up a building department "as
large as Anchorage," given the size of the borough.
4:12:54 PM
CO-CHAIR FIELDS stated that HB 80, as currently drafted, would
not require the borough to construct a building department.
MS. DEVRIES acknowledged that the proposed legislation does not
currently require a building department. However, she argued,
the State of Alaska has historically put restrictions and
guidance upon local governments, like the school bond
reimbursement or the senior citizen exemption, that have fallen
to the [local] taxpayer.
4:14:02 PM
PETER MICCICHE, Mayor, Kenai Peninsula Borough (KPB) and former
legislator testified in opposition to HB 80. He stated that the
Kenai Peninsula Borough is the size of West Virgina. He stated
that, of his 61,000 constituents, approximately two-thirds live
in areas without local building codes. He asserted that people
are moving out of the cities in the Kenai Peninsula Borough to
areas without local building codes because of the cost of
building in cities.
MAYOR MICCICHE asserted that, through the creation of a mayor's
working group with inputs from citizens, state agencies,
builders, developers, and economists from the DOLWD, a statewide
building code would not address the "extreme lack of affordable
housing." He stated that the KPB is tackling the problem with
other solutions. He reported that the KPB is making borough
land available for construction. Additionally, he reported that
KPB worked with local homebuilders to create affordable housing
units that would not meet the code requirements of the proposed
legislation.
MAYOR MICCICHE asserted that there are "two Alaskas." He
maintained that the concrete foundation requirements discussed
in a previous hearing on HB 80 are non-existent in a large
portion of Alaska. He argued that the issues of insurability
and resale value are null during an unprecedented housing
shortage. He contended that middle- and low-income individuals
would have no housing under the additional constraints of the
proposed legislation. He spoke to local control, commenting
that cities have the right to institute building codes - some
cities in KPB have chosen to do so, but the borough itself has
not.
MAYOR MICCICHE offered some alternative suggestions for ensuring
that residential buildings are constructed to a high standard,
including utilizing a 5-star builders group and builder
warranties. He recognized the intent of the proposed
legislation but argued that it would not accomplish what it
intended. He shared that he strongly felt creating a [statewide
residential] building code during an unprecedented housing
shortage would create an additional barrier. He concluded by
urging committee members to consider alternative solutions for
low-cost quality housing.
4:20:28 PM
REPRESENTATIVE SADDLER asked if there have been any changes in
adoption or recension of building codes in Mayor Micciche's area
of governance.
MAYOR MICCICHE stated that the cities in KPB update their
building codes every two to three years and can opt out of
certain stipulations. He stated that people choose to live in
or outside of the cities based on what best suits them and
further stated that the cities have the infrastructure to
support building codes. He stated that outside of city limits,
individuals are not required to build to code. He emphasized
that rent has doubled in the last five years on the Kenai
Peninsula. He asserted that there is a demographic of people,
low- and middle-income, who are struggling to afford housing and
"every incremental cost that's added to unaffordable housing
pushed that build out another several years."
REPRESENTATIVE SADDLER queried about region-specific hazards
that building codes might address in KPB.
MAYOR MICCICHE responded that the biggest hazard to housing for
residents in KPB is lack of housing. He remarked that a
building code is the minimum expectation in the "right place
...for a certain demographic - the more traditional homebuyer."
He stated that a building code is a requirement for most
conventional loans and for AHFC. He noted that, due to the
extreme housing shortage, there are people building yurts,
cabins, and nonconventional housing as primary residences. He
stated that KPB provides local option zoning districts (LOZDs).
Finally, he commented that, of the 61,000 residents in KPB,
41,000 residents have opted to live outside of zoning districts.
4:24:56 PM
DEAN BARTSCH, representing self, testified in opposition to HB
80. He said that he is a "substandard" builder. He stated that
the legislature does not have the authority to dictate how he
builds his house. He asserted that a uniform building code from
rainforest to permafrost is impossible. He argued that licensed
contractors would be prohibited from repairing his house,
because it is not built to code. He provided a personal
anecdote to illustrate that systems not built to code could
outlast systems that are built to code.
4:29:26 PM
CO-CHAIR FIELDS stated that HB 80 was the result of requests
from homebuilders.
CO-CHAIR FIELDS, after ascertaining that there was no one else
who wished to testify, closed public testimony on HB 80.
4:30:03 PM
REPRESENTATIVE COULOMBE reiterated her concern that the proposed
legislation would increase both the cost and red tape regarding
housing. She stated that the Anchorage Assembly passed an
ordinance last night [February 11, 2025], to halt design
standards for multi-family housing as part of the assembly's
"10,000 homes in 10 years strategy." She maintained that the
assembly is doing so to remove "cost-adding rules and the time
delay." She commented that "even Anchorage understands that ...
more rules and more codes ... will increase the cost of housing
and ... does increase delays."
[HB 80 was held over.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 74 Version A.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |
| HB 74 Sponsor Statement.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |
| HB 74 Sectional Analysis.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |
| HB 74 Letter of Support - A2C2_Airbag-Support_AK-House.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |
| HB074-DOA-OPA-2-7-24.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |
| HB074-DOA-PDA-1-14-25.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |
| HB074-DOC-IDO-2-7-2025.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |
| HB074-DPS-AST-2-7-25.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |
| HB074-JUD-ACS-02-06-25.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |
| HB74-LAW-CJL-01-30-25.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |
| HB 80 Letter of Support - ICC Testimony in Support.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 80 |
| HB 74 Supporting Document - Deadly Counterfeit Air Bags Are Making Their Way Into Vehicles - WSJ.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |
| HB 74 Supporting Document - Alaska one pager.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |