03/20/2014 01:30 PM Senate LABOR & COMMERCE

           SB 189-EXEMPTION: LICENSING OF CONTRACTORS                                                                       
                                                                                                                                
1:42:39 PM                                                                                                                    
VICE-CHAIR MICCICHE  announced the  consideration of SB  189. "An                                                               
Act relating to an exemption  from the regulation of construction                                                               
contractors." [This  was the second hearing  and public testimony                                                               
was open.]                                                                                                                      
                                                                                                                                
1:43:55 PM                                                                                                                    
ALAN  WILSON,   Legislative  Chair,  Alaska   State  Homebuilding                                                               
Association  (ASHA), said  that  SB 189  closes  a loophole  that                                                               
affects  builders across  the  state. The  problem  is that  some                                                               
people  in  the state  are  building  homes under  the  homeowner                                                               
exemption   when   they're   actually  contractors.   This   puts                                                               
legitimate  contractors who  are licensed,  bonded, and  purchase                                                               
insurance at a disadvantage. Consumer  safety is also potentially                                                               
affected when work is done without proper licensing.                                                                            
                                                                                                                                
SENATOR STEDMAN asked Mr. Wilson if he supports the bill.                                                                       
                                                                                                                                
MR. WILSON confirmed he did support SB 189.                                                                                     
                                                                                                                                
1:46:02 PM                                                                                                                    
PATRICK  DALTON, representing  himself,  Delta Junction,  Alaska,                                                               
said he was  a contractor testifying in opposition to  SB 189. He                                                               
cited three problems with the  bill. First, he believes that this                                                               
problem  could   be  addressed  by   local  government   in  each                                                               
jurisdiction.   The   second   problem  is   availability;   when                                                               
contractors  aren't  available, the  job  will  get done  anyway.                                                               
Finally,  the bill  infringes on  individual rights  and protects                                                               
contractors more than the individual property owner.                                                                            
                                                                                                                                
1:51:17 PM                                                                                                                    
GARNET  BROWN,  President,   Ketchikan  Homebuilders  Association                                                               
(KHA),  Ketchikan, Alaska,  stated that  KHA supports  SB 189  as                                                               
well as the right for a  person to build their own home. However,                                                               
if  they're doing  it  as  a speculative  endeavor  they need  to                                                               
follow  the building  codes, including  hiring licensed  plumbers                                                               
and  electricians. It's  a matter  of safety.  He noted  that the                                                               
bill provides  just a minor  change to  existing law that  says a                                                               
person cannot build  a house for speculative reasons  and sell it                                                               
within two years unless it's a financial hardship.                                                                              
                                                                                                                                
VICE-CHAIR MICCICHE  clarified that  the bill doesn't  talk about                                                               
hardship.  Paragraph (12)  in Section  1  says the  owner has  to                                                               
demonstrate that  the sale would not  circumvent the requirements                                                               
under the chapter.                                                                                                              
                                                                                                                                
1:53:55 PM                                                                                                                    
JESS  HALL representing  himself,  Palmer,  Alaska, testified  in                                                               
support of SB 189. He recapped  the problem and observed that the                                                               
statute  is  so vague  it  makes  it  difficult to  enforce.  The                                                               
language  in  the  bill  will  clarify the  meaning  of  both  an                                                               
owner/builder and a contractor.                                                                                                 
                                                                                                                                
1:55:41 PM                                                                                                                    
VICE-CHAIR  MICCICHE closed  public  testimony  and announced  he                                                               
would hold SB 189 in committee for further consideration.