02/12/2024 01:30 PM Senate LABOR & COMMERCE

                SB 197-RESIDENTIAL BUILDING CODE                                                                            
                                                                                                                                
1:47:41 PM                                                                                                                    
CHAIR  BJORKMAN   reconvened  the   meeting  and   announced  the                                                               
consideration  of  SENATE  BILL  NO. 197,  "An  Act  relating  to                                                               
residential building codes;  relating to construction contractors                                                               
and residential contractor  endorsements; establishing the Alaska                                                               
State  Building  Code Council;  and  providing  for an  effective                                                               
date."                                                                                                                          
                                                                                                                                
1:48:14 PM                                                                                                                    
LAURA  ACHEE,   Staff,  Senator  Jesse  Bjorkman,   Alaska  State                                                               
Legislature, Juneau,  Alaska, presented SB  197 on behalf  of the                                                               
sponsor. She read from the following statement:                                                                                 
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
      When an Alaskan buys a new home or has a custom home                                                                      
     built, they should have confidence that the home that                                                                      
     they and their family are living in is safe.                                                                               
                                                                                                                                
     There are municipalities in  Alaska that have municipal                                                                    
     residential  building codes,  but  for  homes that  are                                                                    
     built  outside of  those communities,  Senate Bill  197                                                                    
     would establish a statewide residential building code.                                                                     
                                                                                                                                
     The   bill   directs   the   Alaska   Housing   Finance                                                                    
     Corporation   to   adopt   by   regulation   the   2018                                                                    
     International  Residential Building  Code published  by                                                                    
     the  International Code  Council,  with allowances  for                                                                    
     Alaska-specific   amendments   and   adopting   updated                                                                    
     versions of the Code.                                                                                                      
                                                                                                                                
     The  residential  building  code  would  not  supersede                                                                    
     municipal  codes  where  they currently  exist  or  are                                                                    
     adopted in the future, and  it would not interfere with                                                                    
     any  other  state  building   codes  or  the  statutory                                                                    
     requirements  for other  contractors  such as  plumbers                                                                    
     and electricians.                                                                                                          
                                                                                                                                
1:49:59 PM                                                                                                                    
JEFF  TWAIT,   Owner,  Cornerstone  Custom  Homes   and  Designs,                                                               
Soldotna, Alaska, testified  by invitation on SB 197.  He said he                                                               
is a  member of the  Kenai Peninsula Builders  Association (KPBA)                                                               
and the  Alaska State Home  Building Association (ASHBA).  He has                                                               
been  working  over  the  last  decade  with  ASHBA  to  place  a                                                               
statewide  residential  building  code.  He  explained  that  the                                                               
backbone of SB  197 is to provide a minimum  building standard in                                                               
areas without  building code jurisdiction.  This will  help level                                                               
the playing  field for licensed  builders and  provide protection                                                               
for  purchasers  who  may  not be  aware  of  potential  building                                                               
deficiencies.  He compared  a home  to a  human body  - a  set of                                                               
systems  that   need  to  work   together  and  make   the  house                                                               
affordable, healthy,  comfortable, and sustainable over  time. He                                                               
shared an example  of the way various systems within  a home need                                                               
to work together to ensure safety and proper functioning.                                                                       
                                                                                                                                
1:53:00 PM                                                                                                                    
MR.  TWAIT  explained that,  currently,  a  contract between  the                                                               
builder  and  the  purchaser  is meant  to  ensure  that  minimum                                                               
building  standards  are met;  however,  there  is little  to  no                                                               
recourse in  the event  that the  builder does  not hold  to this                                                               
agreement. He compared a declaration  that a builder is "building                                                               
to the code" to  attaining a D- in school and  added that this is                                                               
not  a  high  bar  to attain.  Therefore,  creating  a  statewide                                                               
building code  should not be  considered something that  will add                                                               
extra  costs to  building a  house. Additionally,  he shared  his                                                               
belief   that  codifying   statewide  building   standards  would                                                               
lengthen the housing life cycle  and create healthier markets and                                                               
more efficient homes.  He stated that housing  affordability is a                                                               
big concern and  explained that while this might  appear to raise                                                               
housing costs, it  will reduce total costs of the  home over time                                                               
by  lowering  the costs  of  utilities  and maintenance,  and  an                                                               
increased  appreciation  in value.  He  said  that federal  funds                                                               
require the  adoption of  the energy code  and building  code. He                                                               
opined that ASHBA  experts are the right people to  help create a                                                               
statewide  building  code  and   suggested  that  AHFC  oversight                                                               
combined with recommendations made  by volunteer industry experts                                                               
would mean a minimal fiscal burden and large benefit.                                                                           
                                                                                                                                
1:54:55 PM                                                                                                                    
SENATOR GRAY-JACKSON  expressed concern that  recreational cabins                                                               
and owner-built homes are exempt.                                                                                               
                                                                                                                                
1:55:33 PM                                                                                                                    
MR.   TWAIT   expressed   his  agreement.   He   explained   that                                                               
recreational  cabins are  exempt  primarily  because some  energy                                                               
codes included in the updated  building codes can be difficult to                                                               
obtain  in remote  locations. He  shared  his personal  agreement                                                               
that  owner-built homes  should  be included  and expressed  hope                                                               
that  they will  be  included at  a later  date.  He offered  his                                                               
understanding that several legislators  have districts with a low                                                               
number of contract  builders and a high  number of owner-builders                                                               
and suggested that this may be why  this group was left out of SB
.                                                                                                                            
                                                                                                                                
1:56:54 PM                                                                                                                    
SENATOR DUNBAR  asked if  the building code  would only  apply to                                                               
structures of 1-4 units.                                                                                                        
                                                                                                                                
1:57:17 PM                                                                                                                    
MR. TWAIT  replied yes. He  explained that  when a building  is a                                                               
fourplex  or larger,  the international  building code  kicks in,                                                               
which is under the jurisdiction of the State Fire Marshal.                                                                      
                                                                                                                                
1:57:41 PM                                                                                                                    
SENATOR  DUNBAR commented  that there  is interest  in increasing                                                               
housing construction  and housing  density in Alaskan  cities. He                                                               
expressed his understanding that  the international building code                                                               
restricts  the construction  of certain  types of  buildings with                                                               
single stairwells. He asked for  clarification that this does not                                                               
apply to SB 197.                                                                                                                
                                                                                                                                
1:58:13 PM                                                                                                                    
MR. TWAIT said that he is not familiar with this issue.                                                                         
                                                                                                                                
1:58:30 PM                                                                                                                    
SENATOR DUNBAR  shared his  understanding that the  US is  one of                                                               
the only  countries in the  world that forbids  single stairwells                                                               
in  buildings  with  more  than  four  units  due  to  fire  code                                                               
concerns.   He   said   that  this   has   limited   multi-family                                                               
construction in  certain places. He reiterated  his understanding                                                               
that SB 197 does not apply  to this issue, because buildings with                                                               
more than four  units are under the purview of  the Fire Marshal.                                                               
He asked if this is correct.                                                                                                    
                                                                                                                                
1:58:55 PM                                                                                                                    
MR. TWAIT replied yes.                                                                                                          
                                                                                                                                
1:59:35 PM                                                                                                                    
CHAIR BJORKMAN provided  his rationale for sponsoring  SB 197. He                                                               
explained his  hope that, when  Alaskans hire someone to  build a                                                               
home  for them,  they  hire  a contractor  who  is qualified  and                                                               
builds a home to a standard that  is safe for them to live in. He                                                               
stated that  professionals are expected  to have a  certain level                                                               
of training and expertise and to  perform a certain level of care                                                               
to  a  standard  set  by government  licensing  requirements.  He                                                               
explained  that there  have been  several instances  in his  home                                                               
community where builders have built  unsafe homes. He added that,                                                               
without  a statewide  building code  to refer  to as  the minimum                                                               
standard to  which homes  should be  built, Alaskans  have little                                                               
recourse  in  these  situations.  He  stated that  SB  197  is  a                                                               
consumer protection bill and pointed  out that it only applies to                                                               
contractors who are  licensed by the state as builders  - it does                                                               
not apply to  someone who is building their own  house. He shared                                                               
his belief that someone who is  building their own house can take                                                               
their   own  risks;   however,  when   a  contractor   advertises                                                               
themselves as  a professional who  can build  a safe house  - and                                                               
receives money in exchange for  this service - a minimum standard                                                               
should be in place.                                                                                                             
                                                                                                                                
2:01:50 PM                                                                                                                    
CHAIR BJORKMAN opened public testimony on SB 197.                                                                               
                                                                                                                                
2:02:23 PM                                                                                                                    
ERIC VISSER,  representing self, Anchorage, Alaska,  testified in                                                               
support of SB  197. He said he  is a past president  for both the                                                               
Alaska  State Home  Building  Association  (ASHBA) and  Anchorage                                                               
Home Builders  Association (AHBA).  He said  that ASHBA  has been                                                               
working to  create a statewide  building code for the  past 10-15                                                               
years.   He  stated   that  ASHBA   has  learned   from  previous                                                               
legislation that was  introduced and opined that  SB 197 "strikes                                                               
the right balance,"  adopting a building code that  is already in                                                               
place.  He estimated  that 99  percent of  ASHBA members  already                                                               
build to  the code  requirements in  SB 197.  He stated  that the                                                               
Alaska Housing  Finance Corporation adopts this  code regularly -                                                               
and most builders  are familiar with this  standard. He explained                                                               
that  adopting a  statewide building  code protects  the consumer                                                               
from outliers who do not build to this standard.                                                                                
                                                                                                                                
2:03:50 PM                                                                                                                    
SENATOR  DUNBAR  inquired  about   the  standard  of  Anchorage's                                                               
building code.                                                                                                                  
                                                                                                                                
2:04:17 PM                                                                                                                    
MR. VISSER replied that the housing  code has a lot of grey area,                                                               
which  is  left  up  to   the  authority  with  jurisdiction.  He                                                               
explained that Anchorage  does not have a  good building official                                                               
to make  these determinations,  and shared  his belief  that this                                                               
drives up the cost of housing in Anchorage.                                                                                     
                                                                                                                                
2:04:55 PM                                                                                                                    
SENATOR  DUNBAR asked  if the  current  structure of  Anchorage's                                                               
building code would meet the standard set by SB 197.                                                                            
                                                                                                                                
2:05:09 PM                                                                                                                    
MR. VISSER replied yes.                                                                                                         
                                                                                                                                
2:05:14 PM                                                                                                                    
SENATOR GRAY-JACKSON thanked Mr. Visser for his testimony.                                                                      
                                                                                                                                
2:05:28 PM                                                                                                                    
DAVID  OWENS, representing  self, Wasilla,  Alaska, testified  in                                                               
support  of  SB 197.  He  said  that  he owns  Owen's  Inspection                                                               
Services in Palmer, Alaska and  has been a building inspector for                                                               
almost  40 years.  He  shared  his belief  that  SB  197 is  well                                                               
thought out and addresses concerns  that need to be addressed. He                                                               
shared his  understanding that it  applies to contractors  with a                                                               
residential  endorsement,  giving  them  a  minimum  standard  to                                                               
inspect to. He  said that it gives inspectors a  minimum level to                                                               
inspect to  and builders a minimum  level to build to.  In answer                                                               
to an  earlier question  from Senator  Dunbar, he  explained that                                                               
the amount of  stairwells in a building depends on  the amount of                                                               
occupants  in the  building. The  occupancy must  be very  low to                                                               
have  a single  exit  or  stairwell. He  said  that  this is  why                                                               
nationwide fire and building codes have this standard in place.                                                                 
                                                                                                                                
2:07:26 PM                                                                                                                    
AARON WELTERLEN, representing  self, Fairbanks, Alaska, testified                                                               
in support  of SB  197. He  said he  is a  past president  of the                                                               
Interior Alaska Building Association  (IABA) and the Alaska State                                                               
Home Builders  Association (ASHBA). He  said that ASHBA  has been                                                               
working on  a statewide building code  for a long time  as a form                                                               
of consumer protection.  He explained that Fairbanks  has a small                                                               
city building  department and most  structures are  built outside                                                               
of  the  city.  He  acknowledged   that  certain  home  financing                                                               
organizations will require that  homes pass inspection standards.                                                               
However, SB  197 provides long-term  protection for  consumers. A                                                               
statewide  building code  would provide  a standardized  building                                                               
system so that consumers know they are protected.                                                                               
                                                                                                                                
2:09:47 PM                                                                                                                    
CHAIR  BJORKMAN  closed  public  testimony and  held  SB  197  in                                                               
committee.