Legislature(2013 - 2014)BELTZ 105 (TSBldg)
04/10/2014 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB189 | |
| SB193 | |
| HB241 | |
| HB239 | |
| HB240 | |
| HB242 | |
| HB302 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 241 | TELECONFERENCED | |
| + | HB 239 | TELECONFERENCED | |
| + | HB 240 | TELECONFERENCED | |
| + | HB 242 | TELECONFERENCED | |
| + | HB 302 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| *+ | SB 189 | TELECONFERENCED | |
| *+ | SB 193 | TELECONFERENCED | |
SB 189-EXEMPTION: LICENSING OF CONTRACTORS
1:31:08 PM
CHAIR DUNLEAVY announced the consideration of SB 189. "An Act
relating to an exemption from the regulation of construction
contractors." He noted that this was the third hearing and there
was a committee substitute (CS).
1:31:15 PM
SENATOR MICCICHE moved to adopt the work draft CS for SB 189,
labeled 28-LS1322\O, as the working document.
CHAIR DUNLEAVY objected for discussion purposes.
1:31:43 PM
STEVE RICCI, Aide, Senate Labor & Commerce Committee, presented
the changes in Version O for SB 189. He explained that the
changes to the exemption of who is a contractor in AS
08.18.161(12) are confined to those who live in a home rule,
first class, or second class borough, or unified municipality.
The language in this paragraph was further amended to recognize
that it's not unusual for Alaskans to leave a portion of a
project unfinished. The phrase "after the period of construction
ends" was amended to say "after the structure is completed for
its intended purpose" thereby removing the ambiguity as to
whether construction is complete. If the person is occupying the
home, the assumption is that it's being used for its intended
purpose regardless of the fact that the home may still be
covered in Tyvek instead of siding.
CHAIR DUNLEAVY removed his objection.
MR RICCI reminded members of the purpose of SB 189. It addresses
the issue that a growing number of individuals are exploiting
the owner-builder exemption in AS 08.18.161 to avoid the
licensing, bonding, and insurance requirements that apply to
contractors. Under current statute the exemption under paragraph
(12) provides that an owner who acts as their own contractor may
construct one home, duplex, triplex, four-plex, or commercial
building every two years. The bill refines this by adding that
someone can sell earlier if they demonstrate to the satisfaction
of the [Department of Commerce, Community and Economic
Development (DCCED)] that an earlier sale is not intended to
circumvent the requirements under this chapter. The intention is
to capture those who are building for income purposes.
SENATOR OLSON asked about the unorganized borough.
MR. RICCI replied there will be not changes for the individuals
living in unorganized boroughs.
CHAIR DUNLEAVY opened public testimony.
1:36:38 PM
JAMES SQUYRES, representing himself, Delta Junction, Alaska,
stated that he and a number of others just received a copy of
the most recent version of SB 189 and there wasn't much time to
review it. He noted that this bill was just scheduled today and
a lot of people who might want to testify either couldn't
arrange their schedule on such short notice or didn't have time
to prepare an appropriate response. He requested the committee
allow more time for people to understand the bill and how it
would affect them.
MR. SQUIRES expressed concern about the unintended consequences
because he reads the exemption in paragraph (12) to now apply to
homes in the unorganized borough and not in the organized
borough. He also pointed out that owner-builders invest their
own capital which is a different relationship than a contractor
who is using capital from another source. This burdens the
owner-builder. He suggested that this matter should be handled
at the borough level and further suggested that the bill raises
constitutional issues.
1:40:43 PM
PAMELA GOODE, representing herself, Delta Junction, stated
agreement with Mr. Squire that the bill was noticed at the 11th
hour and for that reason alone it should be postponed. She
described some of the language in the sponsor statement as
offensive and questioned the notion of the state protecting
consumers. She offered her perspective that the government
should stay out.
1:43:07 PM
JEFF HALL, representing himself, Palmer, Alaska, said he's a
homebuilder in Palmer who supports the original version of SB
189. He maintained that the owner-builder exemption should be
applied statewide.
1:44:32 PM
PATRICK DALTON, representing himself, Delta Junction, Alaska,
expressed concern that SB 189 limits a person's free use of
their private property when it sets parameters on when they can
sell their home. He questioned the broad application because
many people in the organized areas of the state are in very
remote locations living out the Alaskan dream of building their
own home. He concluded that this matter should be addressed at
the borough level.
1:49:02 PM
SENATOR MICCICHE asked Mr. Ricci to clarify that the unorganized
borough is no longer included in this exemption.
MR. RICCI stated that the limitation to selling one home every
two years, only applies to construction in a home rule, first
class, or second class borough or unified municipality. The
additions to the exemption in paragraph (12) only apply in those
specific areas. Owners in the unorganized borough are held to
existing statute.
SENATOR MICCICHE summarized that licensing and bonding are a
state responsibility as opposed to building codes that are
adopted by a municipality.
MR. RICCI confirmed that the [Department of Commerce, Community
and Economic Development (DCCED)] does set licensing and bonding
requirements.
1:50:55 PM
SARA CHAMBERS, Director, Division of Corporations, Business and
Professional Licensing, Department of Commerce, Community and
Economic Development (DCCED), clarified for the record that the
Department of Commerce, Community and Economic Development
(DCCED) handles licensing and bonding matters.
SENATOR MICCICHE asked Ms. Chambers to confirm that this is a
state agency.
MS. CHAMBERS explained that the legislature establishes
statewide licensing and bonding requirements and DCCED
implements these through regulations.
MR. RICCI, responding to a question from the Chair, confirmed
that the CS was delivered to committee members a few hours ago
and it was posted on BASIS. Staff was informed of the changes
before Version O was released.
CHAIR DUNLEAVY found no further questions or comments and
solicited a motion.
1:52:31 PM
SENATOR MICCICHE moved to report CS for SB 189, Version O, from
committee with individual recommendations and attached fiscal
note(s).
CHAIR DUNLEAVY announced that without objection CSSB 189(L&C)
moved from the Senate Labor & Commerce Standing Committee.