Legislature(2015 - 2016)HOUSE FINANCE 519
04/14/2016 08:30 AM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB196 | |
| SB210 | |
| HB81 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 81 | TELECONFERENCED | |
| + | SB 196 | TELECONFERENCED | |
| + | SB 210 | TELECONFERENCED | |
| += | HB 194 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE BILL NO. 81
"An Act relating to an exemption from the regulation
of construction contractors."
10:30:21 AM
Co-Chair Neuman MOVED to ADOPT the proposed committee
substitute for HB 81, Work Draft 29-LS0346\P (Bruce,
4/12/16). There being NO OBJECTION, it was so ordered.
JANE PIERSON, STAFF, REPRESENTATIVE STEVE THOMPSON,
explained the changes in the Committee Substitute and read
from a prepared statement:
HB 81 Version P differs from CSHB 81 (L&C), HB 81 Version
H, in three ways:
1. Deletes "in order" from the legislative intent
language from page 1, line 6, of HB 81 Version H
because the words are not needed, as many grammarians
often say.
2. Adds a new section 2 (page 1, lines 8 through 14) that
adds a new subsection to AS 08.18.116 to require the
Alaska Department of Commerce, Community, and Economic
Development or the Alaska Department of Labor and
Workforce Development to investigate and take
appropriate action if an owner-builder tries to sell a
structure while not licensed as a contractor during
the time of constructing the building or two years
after construction begins. See "begins" on line 11.
3. Replaces language in section 3 (page 3, lines 2
through 6) to require an owner-builder to notify the
Alaska Department of Commerce, Community, and Economic
Development on a form provided by the agency when
advertising or selling a home built if an owner-
builder tries to sell it while not licensed as a
contractor during the time of constructing the
building or two years after construction begins. See
"begins" on line 4.
The previous versions of the bill would have required the
owner-builder to get permission from the department to
sell a building. HB 81 Version N changes this to require
disclosure.
Representative Wilson asked for clarification regarding the
two year provision. Ms. Pierson answered that the two year
provision was consistent with current law. Representative
Wilson asked when the two year period began. Ms. Pierson
deferred the question to the sponsor.
REPRESENTATIVE CATHY TILTON, SPONSOR, replied that the
question had been asked the prior session and was something
the sponsors struggled with over the interim and
extensively researched. The two year period began at the
start of construction because the start was the point that
defined the permitting process. She discussed the
legislation. She relayed that HB 81 provided stronger
protection to homebuyers that required an unlicensed
builder to disclose the fact that the building was
constructed by an unlicensed builder. The intent was to
allow individuals to continue to construct their own homes.
Unfortunately, there were people who built with the intent
to sell and avoided attaining the required licensures. She
stated that contractor law had been on the books in Alaska
since 1968. She detailed that the current homeowner/builder
exemption was enacted in 1982 and modified in 2006. The
current law provided an exemption allowing a person to
build their own home or commercial building every two years
without a license. A growing number of individuals were
exploiting the provision to build and operate construction
businesses without attaining required licensure. Homeowners
who purchase a home from the unlicensed builder had no
recourse in the law if the home had issues and was not
built properly. She declared that the bill provided for
transparency and disclosure.
Co-Chair Thompson OPENED public testimony.
RICHARD CARR, OWNER, BEMA CONSTRUCTION (via
teleconference), spoke in support of the bill. He relayed
that he specialized in restoration and remodeling. He had
received many "frantic calls from insurance agents and
homeowners" with serious issue due to faulty work. He
shared personal experience with customers who had no
financial recourse because the builder did not have a
"performance bond." The bill would protect the consumers of
Alaska from "unscrupulous builders" that "hide behind the
two year allowance."
ANDRE SPINELLI, PRESIDENT, ALASKA HOME BUILDERS ASSOCIATION
(via teleconference), stated his strong support of the
bill. He shared that the association worked on the issue
for many years.
PATRICK DALTON, CONTRACTOR, DELTA JUNCTION (via
teleconference), testified against Section 11 of the
current version of the bill. He felt that the provision was
extreme and "interfered with the right of private
property." He agreed with the regulations for organized
boroughs. He proposed an exemption for unorganized
boroughs. He believed the provision protected a
professional group at the expense of rural homebuilders.
10:42:27 AM
JAMES SQUYRES, SELF, RURAL DELTANA (via teleconference),
testified against the bill. He believed the bill had
unintended consequences for rural residents. He stressed
that "the contractor lobby was tenacious and was
terrorizing" regular Alaskans. He opposed the provision
that required the owner/builder to fill out a form and
provide proof to the Department of Labor and Workforce
Development (DOL) and Department of Commerce, Community and
Economic Development (DCCED) in order to sell their owner-
built home. He opined that the provision increased the
agencies bureaucratic functions and impinged on individual
freedoms.
TERRY DUSYNSKI, MEMBER, ALASKA STATE HOMEBUILDER'S
ASSOCIATION (via teleconference), testified in support of
the bill. He shared that he was a home inspector since 1978
and had seen many owner-built homes. He voiced that the
exemption in the bill allowed people to build their own
homes. He explained that the bill merely required a person
building a house and selling it before the two year period
to notify the department and explain why the individual was
selling the house. He emphasized that the bill did not
prohibit constructing an owner built home.
Co-Chair Thompson CLOSED public testimony.
Representative Wilson asked who would enforce the issue -
DOL or DCCED.
CHRISTOPHER CLARK, STAFF, REPRESENTATIVE CATHY TILTON,
replied that the provision in Section 2 of the bill was
enforced by both DCCED and DOL. He added that the provision
in Section 3 was enforced by DCCED. Representative Wilson
wanted to know how the bill would be enforced.
10:48:12 AM
AL NAGEL, DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT
(via teleconference), answered that the details had not yet
been worked out between the departments; the regulations
would be written after the bill was adopted. He delineated
that both departments had investigators that were dedicated
to license enforcement.
Representative Wilson wondered whether the bill was
necessary. She asked how the bill changed what was supposed
to currently be done. Mr. Nagel replied that he was not
sure what the department was not doing now. He stated that
the bill offered more structure about when a two-year
exemption period started. He emphasized that the department
was seriously enforcing the existing statute.
Representative Wilson asked what paper work would be
required to prove the starting date of the two year
construction period. Mr. Nagel answered that the statute
would require notice that the homeowner was divesting
herself of a property; not for a business reason. The
department would investigate and determine whether the
activity was unlicensed. Representative Wilson asked
whether updated fiscal notes were forthcoming.
Co-Chair Neuman spoke to the fiscal notes. He noted that
the Division of Corporations, Businesses, and Professional
Licensing (DCBPL) submitted a zero note (FN 1 CED). He
detailed that the division noted that the licensing costs
covered the regulatory costs. He noted the Department of
Labor and Workforce Development zero fiscal note (FN 2
DOL).
10:52:25 AM
Representative Wilson spoke to the fiscal notes. She
believed the bill carried fiscal impacts to the agencies.
Co-Chair Neuman stated that according to the fiscal notes
the department determined that its fees and staff were
sufficient to enforce the legislation.
Co-Chair Thompson reminded the committee that
investigations were presently happening on a regular basis.
Co-Chair Neuman MOVED to report CSHB 81(FIN) out of
committee with individual recommendations and the
accompanying fiscal notes.
Representative Wilson OBJECTED. She was concerned over how
the regulations would be written and believed that the bill
impacted personal property rights. She WITHDREW her
OBJECTION.
CSHB 81(FIN) was REPORTED out of committee with a "do pass"
recommendation and with one new zero fiscal note from the
House Finance Committee for the Department of Commerce,
Community and Economic Development and one new zero fiscal
note from the Department of Labor and Workforce
Development.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 194 CS WORKDRAFT FIN GH1060-S.pdf |
HFIN 4/14/2016 8:30:00 AM |
HB 194 |
| HB 81 CS WORKDRAFT vP.pdf |
HFIN 4/14/2016 8:30:00 AM |
HB 81 |
| House Members - SB 196ce.pdf |
HFIN 4/14/2016 8:30:00 AM |
SB 196 |
| SB 196 Fin updated sectional.pdf |
HFIN 4/14/2016 8:30:00 AM |
SB 196 |
| sb 196 Leg finance spread sheets.pdf |
HFIN 4/14/2016 8:30:00 AM |
SB 196 |
| CSSB 210(FIN) AM - Sectional Analysis.pdf |
HFIN 4/14/2016 8:30:00 AM |
SB 210 |
| CSSB 210(FIN) AM E.A.PDF |
HFIN 4/14/2016 8:30:00 AM |
SB 210 |
| CSSB 210(FIN) AM Sponsor Statement.pdf |
HFIN 4/14/2016 8:30:00 AM |
SB 210 |
| CSSB210(FIN) AM - Community Assistance Distribution.pdf |
HFIN 4/14/2016 8:30:00 AM |
SB 210 |
| HB 81 Summary of Changes Pversion 8 March 2016.pdf |
HFIN 4/14/2016 8:30:00 AM |
HB 81 |
| 196 new sponsor statement.pdf |
HFIN 4/14/2016 8:30:00 AM |
SB 196 |
| 4 14 16 SB 210 by Borough.pdf |
HFIN 4/14/2016 8:30:00 AM |
SB 210 |