04/26/2023 03:15 PM House LABOR & COMMERCE

                HB 150-RESIDENTIAL BUILDING CODE                                                                            
                                                                                                                                
4:26:40 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced  that the next order of  business would be                                                               
HOUSE  BILL NO.  150, "An  Act relating  to residential  building                                                               
codes;  relating  to  construction  contractors  and  residential                                                               
contractor endorsements; and providing for an effective date."                                                                  
                                                                                                                                
4:27:08 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:27 p.m. to 4:31 p.m.                                                                       
                                                                                                                                
4:31:53 PM                                                                                                                    
                                                                                                                                
STEVE MENARD,  Staff, Representative  Jesse Sumner, on  behalf of                                                               
Representative  Sumner,  prime  sponsor,  explained  HB  150  and                                                               
provided the  sectional analysis.   He  stated that  the proposed                                                               
legislation  would   update  residential  building  codes.     He                                                               
explained  that  the  reason for  building  codes,  permits,  and                                                               
inspections is  to keep  homes safe,  especially with  the unique                                                               
structural challenges  the state faces, such  as frequent seismic                                                               
activity.   He said that  building codes also ensure  the quality                                                               
and energy  efficiency of building materials  used in residential                                                               
construction.                                                                                                                   
                                                                                                                                
4:34:20 PM                                                                                                                    
                                                                                                                                
MR. MENARD began  the sectional analysis, stating  that Section 1                                                               
of  HB  150  would  update and  change  definitions  relating  to                                                               
residential construction; Section 2 would  add a subsection to AS                                                               
08.18.025 requiring residential contractors  to comply with state                                                               
residential building  codes; Section  3 would  define residential                                                               
contractor; Sections 4 through 6  would add conforming amendments                                                               
to  the  state   building  codes;  Section  7   would  amend  the                                                               
definition of  state building code;  Section 8 would  require the                                                               
Department  of  Commerce,   Community  and  Economic  Development                                                               
(DCCED)  to  adopt  a national  building  code  using  regulatory                                                               
authority;    and  Section  9  would  add  a  section  subjecting                                                               
contractors  to the  new  building codes  and  applying the  code                                                               
adopted  via Section  8 to  new residential  buildings.   He said                                                               
that Section 10 would add an effective date of January 1, 2024.                                                                 
                                                                                                                                
4:39:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX asked  whether  residential contractors  are                                                               
currently required to follow building codes.                                                                                    
                                                                                                                                
MR. MENARD  answered there are  12 municipalities in  Alaska with                                                               
residential building  codes, but  there is not  one at  the state                                                               
level.   He stated that HB  150 would create a  state residential                                                               
building  code  which  all  contractors in  the  state  would  be                                                               
required  to follow.   In  response to  a follow-up  question, he                                                               
said that financers, such as  banks, are the de facto enforcement                                                               
mechanism, but  creating a state residential  building code would                                                               
create  an  avenue  for  litigation   for  issues  pertaining  to                                                               
substandard built homes.                                                                                                        
                                                                                                                                
4:44:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CARRICK   asked  whether  there  is   a  national                                                               
standard that most states have adopted.                                                                                         
                                                                                                                                
4:45:55 PM                                                                                                                    
                                                                                                                                
ERIC VISSER,  President, Alaska State Home  Builders Association,                                                               
answered yes.   He said that many states  adopt the International                                                               
Residential Building Code (IRBC) and  add their own amendments as                                                               
needed.                                                                                                                         
                                                                                                                                
4:47:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER asked what  percentage of Alaskans live in                                                               
a municipality which has adopted IRBC.                                                                                          
                                                                                                                                
MR. MENARD expressed uncertainty.                                                                                               
                                                                                                                                
4:48:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS asked  why  DCCED would  be  chosen to  be                                                               
responsible for enforcing the state  residential building code if                                                               
one were created.                                                                                                               
                                                                                                                                
MR. VISSER answered  that each locality can create  a council and                                                               
vote  on aspects  of IRBC,  and the  most important  part of  the                                                               
proposed  legislation  is  creating   a  minimum  standard.    In                                                               
response  to   a  follow-up  question,   he  said   that  DCCED's                                                               
involvement would keep the industry involved with the process.                                                                  
                                                                                                                                
4:51:59 PM                                                                                                                    
                                                                                                                                
DAVID OWENS, Alaska State Home  Builders Association, stated that                                                               
the Alaska  State Home Builders  Association has been  working on                                                               
similar  legislation  for several  years,  and  he expressed  the                                                               
opinion  that Alaska  is overdue  for state  residential building                                                               
codes.                                                                                                                          
                                                                                                                                
4:53:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS asked  whether  the  building codes  would                                                               
account for energy efficiency.                                                                                                  
                                                                                                                                
MR. OWENS  answered that the  Alaska Housing  Finance Corporation                                                               
has a section of standards pertaining to energy efficiency.                                                                     
                                                                                                                                
4:54:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  asked how  home prices would  be affected                                                               
by creating a state residential building code.                                                                                  
                                                                                                                                
MR.  OWENS   expressed  uncertainty;  however,  he   stated  that                                                               
building  a home  to a  higher standard  would save  money versus                                                               
having to regularly repair a home built to a lower standard.                                                                    
                                                                                                                                
MR. MENARD added that the  bill would not require individuals who                                                               
build their own homes to adhere to the building code.                                                                           
                                                                                                                                
4:57:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CARRICK  asked  whether offering  the  contractor                                                               
examination once per year is frequent enough.                                                                                   
                                                                                                                                
CHAIR SUMNER  answered that the  bill requires a minimum  of once                                                               
per year, although in practice there could be more.                                                                             
                                                                                                                                
4:58:19 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced that HB 150 was held over.