Legislature(2005 - 2006)HOUSE FINANCE 519

03/15/2006 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 312 FETAL ALCOHOL SYNDROME/EFFECTS PREVENTION TELECONFERENCED
Heard & Held
+ HB 377 EXEMPTION: RES. BLDG. DRAWINGS & SPECS TELECONFERENCED
Heard & Held
+ HB 446 PENALTY FOR UNLAWFUL TRADE PRACTICE TELECONFERENCED
Moved CSHB 446(JUD) Out of Committee
+ HB 478 MUNICIPAL HARBOR FACILITY GRANTS TELECONFERENCED
Scheduled But Not Heard
+ SB 232 APPROPS: ENERGY-RELATED, PIPELINE & MISC. TELECONFERENCED
<Pending Referral><Bill Hearing Canceled>
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 377                                                                                                            
                                                                                                                                
     An   Act  relating   to   an  exemption   from   certain                                                                   
     registration  and  practice   requirements  for  persons                                                                   
     preparing  drawings  or specifications  related  to  the                                                                   
     construction of certain buildings.                                                                                         
                                                                                                                                
1:56:52 PM                                                                                                                    
                                                                                                                                
MICHAEL PAWLOWSKI, STAFF, REPRESENTATIVE  KEVIN MEYER, stated                                                                   
that  State  law  requires  that  an  engineer  or  architect                                                                   
prepare drawings for specifications  for a residence if it is                                                                   
more than two stories high.  However,  building codes adopted                                                                   
by the State Fire Marshal and  many municipalities require an                                                                   
engineer or architect only if  a residence is more than three                                                                   
stories high.                                                                                                                   
                                                                                                                                
The process of consulting with  an engineer or architect adds                                                                   
an unnecessary  expense to the construction or  renovation of                                                                   
a  home.    HB 377  amends  Alaska  Statute  to  reflect  the                                                                   
standard  already present  in  the adopted  codes across  the                                                                   
State.  The bill would allow contractors  and homebuilders to                                                                   
build or  expand a  residence if  it is  not more than  three                                                                   
stories high.                                                                                                                   
                                                                                                                                
1:58:11 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer pointed  out that  the  Alaska Home  Builders                                                                   
Association  does support  the  legislation.   Mr.  Pawlowski                                                                   
understood there  was a new  letter addressing  the committee                                                                   
substitute  and had  not yet seen  it.   He indicated  safety                                                                   
concerns that  had been voiced.   The current  exemptions are                                                                   
listed on Page  2, Line 19 & 20, for a four  family residence                                                                   
and  not more  than  two  stories  high.   The  international                                                                   
building  and  residential  codes  identify  buildings  three                                                                   
stories,  which is  the  issue  addressed by  HB  377.   With                                                                   
present building codes, a builder  would need to go through a                                                                   
planning review process to obtain a building permit.                                                                            
                                                                                                                                
2:00:02 PM                                                                                                                    
                                                                                                                                
Representative  Kelly inquired  why it was  not left  to four                                                                   
families  -  three  stories.   Mr.  Pawlowski  explained  the                                                                   
original  version had  been drafted  that  way, however,  the                                                                   
dilemma was:                                                                                                                    
                                                                                                                                
   · So not directly meet with the code reference of two                                                                        
     families and three stories, and/or                                                                                         
   · Once expanded from two to four families and three                                                                          
     stories, the buildings became bigger than a duplex - a                                                                     
     change made in the House Labor and Commerce Committee.                                                                     
                                                                                                                                
2:00:51 PM                                                                                                                    
                                                                                                                                
MARK   MORRIS,   PROFESSIONAL   ENGINEER,  STATE   BOARD   of                                                                   
REGISTRATION  FOR ARCHITECTS,  ENGINEERS  AND LAND  SURVEYORS                                                                   
(AELS), JUNEAU, spoke in opposition  to HB 377.  He noted the                                                                   
                                                           th                                                                   
two letters  of opposition dated  February 24 and  March 14.                                                                    
The State AELS Board was unanimous  in its opposition because                                                                   
of the height,  not the size of a structure.   Increasing the                                                                   
height  affects the  design  load expeditiously  &  radically                                                                   
modifies what an engineer must take into consideration.                                                                         
                                                                                                                                
Mr.  Morris discussed  these concerns,  emphasizing that  the                                                                   
statute  was  initially  written   to  protect  the  public's                                                                   
safety.   Contractors and home  builders are not  required by                                                                   
the  State of  Alaska to  have the  education, training,  and                                                                   
exam  verification  to  ensure   that  they  are  capable  of                                                                   
designing  that level  building.   Design  professionals  are                                                                   
trained to  ensure buildings are  safe for human  habitation.                                                                   
He  reiterated that  in the  interest of  public safety,  the                                                                   
AELS  Board strongly  opposes  the proposed  modification  to                                                                   
statute.                                                                                                                        
                                                                                                                                
2:05:37 PM                                                                                                                    
                                                                                                                                
Vice   Chair  Stoltze   questioned  the   typical  cost   for                                                                   
architectural  services and/or  the general percentage  used.                                                                   
Mr. Morris  responded that  is difficult  to determine;  on a                                                                   
home  as  proposed,  an  electrical  engineer  would  not  be                                                                   
needed,  only  a structural  engineer  and  that would  be  a                                                                   
smaller percentage.   On a commercial building,  typically it                                                                   
would  be somewhere  between 6%  and 8%  of the  cost of  the                                                                   
structure; on a home, it might amount to 3%.                                                                                    
                                                                                                                                
2:06:40 PM                                                                                                                    
                                                                                                                                
Vice Chair Stoltze  voiced concerned on  engineering failures                                                                   
of some public  buildings and asked if a "statute  of repose"                                                                   
could be traded,  giving the consumer more.  He  asked if the                                                                   
legislation had resulted from a "turf war".                                                                                     
                                                                                                                                
2:08:19 PM                                                                                                                    
                                                                                                                                
Mr. Morris did  not understand the question.   He stated that                                                                   
as a  professional, he  had nothing to  gain by the  proposed                                                                   
modification.    The  issue results  from  structural  design                                                                   
concerns.  A  person would be foolish to build  a three-story                                                                   
home  without   a  registered   professional  providing   the                                                                   
appropriate calculations.   A  contractor would not  be aware                                                                   
of those requirements.                                                                                                          
                                                                                                                                
2:08:30 PM                                                                                                                    
                                                                                                                                
Mr. Morris continued that with  regards to design, loads must                                                                   
be addressed.  He thought that  a professional must determine                                                                   
the numbers affecting a nailing schedule and wall design.                                                                       
                                                                                                                                
2:09:57 PM                                                                                                                    
                                                                                                                                
Representative   Hawker  worried   that  the  bill   proposes                                                                   
something  not supported by  the State  AELS Board  and asked                                                                   
the  applicability  of the  Alaska  Homebuilders  Association                                                                   
request.   Mr. Morris could not  comment on exactly  what the                                                                   
codes say.   He warned that codes are an  established minimum                                                                   
standard for  safety.  To  remove someone with  the knowledge                                                                   
on how to run calculations to  determine the loads on certain                                                                   
portions  of a structure  and  make sure that  the loads  are                                                                   
adequate would be  the intent of a code.   Only professionals                                                                   
are trained to do that.                                                                                                         
                                                                                                                                
2:12:50 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  asked if  it was  correct that when  building                                                                   
one's  own home,  any standard  could  be used.   Mr.  Morris                                                                   
understood that  in statute, if  a home were built  over that                                                                   
size, a professional would need to review the plan.                                                                             
                                                                                                                                
Co-Chair  Meyer mentioned  an existing  conflict between  the                                                                   
Homebuilders  Association and  the Anchorage Municipal  Code.                                                                   
Mr. Morris did not know about codes outside of Juneau.                                                                          
                                                                                                                                
Co-Chair  Meyer  thought  that the  legislation  could  bring                                                                   
consistency statewide.                                                                                                          
                                                                                                                                
2:15:01 PM                                                                                                                    
                                                                                                                                
BILL  TAYLOR,   (TESTIFIED  VIA  TELECONFERENCE),   ANCHORAGE                                                                   
HOMEBUILDER'S  ASSOCIATION,  TAYLOR  ENTERPRISES,  ANCHORAGE,                                                                   
said  the bill's  language  proposes merely  a  "housekeeping                                                                   
measure".   It is intended  to clean  up the statute  and the                                                                   
codes.   He believed  that the  change would  have no  safety                                                                   
concern,  as  all  areas  where  the  codes  do  apply,  have                                                                   
scrutiny and design review schedules.                                                                                           
                                                                                                                                
Representative  Kerttula  asked  clarification  if  the  plan                                                                   
would  be  reviewed  for  safety   provisions.    Mr.  Taylor                                                                   
responded that  there would be  a level of scrutiny  by every                                                                   
plan review section.                                                                                                            
                                                                                                                                
2:17:55 PM                                                                                                                    
                                                                                                                                
Representative  Joule   requested  a  definition   of  "three                                                                   
stories".     Mr.  Taylor  read   the  definition   from  the                                                                   
International  Residential Code (IRC):   "Anything  more than                                                                   
6' above the great  plain or more than 6' above  the finished                                                                   
ground  level  for  more  than  50%  of  the  total  building                                                                   
perimeter or  more than 12'  above the finished  ground level                                                                   
at any point."                                                                                                                  
                                                                                                                                
2:19:22 PM                                                                                                                    
                                                                                                                                
PAUL  MICHAELSON,  (TESTIFIED VIA  TELECONFERENCE),  NATIONAL                                                                   
ASSOCIATION  OF  HOMEBUILDERS,   BUILDER,  ANCHORAGE,  echoed                                                                   
comments  made by  Mr.  Taylor.   He  added  that most  three                                                                   
story,  single  family  dwelling  structures  are  drawn  and                                                                   
designed by professionals.   The designers have  the right to                                                                   
self-engineer  the building  and then  it would move  through                                                                   
the  Plan Review  Committee.    The builders  are  instructed                                                                   
where sheer walls & nails are  placed.  Each designer has the                                                                   
option to  hire an  engineer.  Mr.  Michaelson did  not think                                                                   
that self-engineering would be dangerous to the public.                                                                         
                                                                                                                                
Co-Chair  Meyer  noted  that testimony  had  not  taken  into                                                                   
consideration   how  it  would   affect  the  areas   outside                                                                   
Anchorage.                                                                                                                      
                                                                                                                                
2:22:13 PM                                                                                                                    
                                                                                                                                
Co-Chair  Chenault  assumed  that  if  any  municipality  had                                                                   
building  codes, they  would  be required  to  build to  that                                                                   
code.   Mr.  Michaelson explained  that the  manner in  which                                                                   
International  Residential Code  (IRC)  was developed,  there                                                                   
were several codes used throughout  the entire United States.                                                                   
Most jurisdictions that adopt  codes have provisions allowing                                                                   
building  three  stories,  while considering  safety  of  the                                                                   
occupants.      Co-Chair   Chenault   clarified   that   each                                                                   
municipality adopts  their codes.   Mr. Michaelson  said they                                                                   
do.                                                                                                                             
                                                                                                                                
Representative  Kelly  questioned if  current  law was  being                                                                   
enforced.  Mr. Pawlowski did not  know.  Individuals building                                                                   
their own homes do not have to go through the process.                                                                          
                                                                                                                                
2:25:09 PM                                                                                                                    
                                                                                                                                
Mr.  Pawlowski   noted  that   the  building  community   has                                                                   
indicated that in areas that have  a code and planning review                                                                   
committee, that process is strictly enforced.                                                                                   
                                                                                                                                
Vice Chair  Stoltze pointed out  the absence of  letters from                                                                   
municipalities outside  of Anchorage.  Mr.  Pawlowski replied                                                                   
their office had requested comments  from other areas but did                                                                   
not receive any.                                                                                                                
                                                                                                                                
Representative Kerttula  asked if a  plan review done  by the                                                                   
architect could  meet necessary safety concerns.   Mr. Morris                                                                   
said  that  if  the person  performing  the  review  has  the                                                                   
expertise to  run the calculations,  then a safety  net would                                                                   
be available.   The  concern is  given to  the loads  and the                                                                   
complexity of  the structures,  it becomes more  complex when                                                                   
vertically building-up.   The State has a method  to register                                                                   
structural  engineers to  run the calculations  and  make the                                                                   
necessary  changes.    Building  codes require  much  in  the                                                                   
interest  of  public  safety,   but  if  the  loads  are  not                                                                   
determined, the  situation becomes  vulnerable.   All designs                                                                   
must  meet  the national  electrical  codes.   The  codes  by                                                                   
themselves  are not  enough; someone  with  the expertise  is                                                                   
essential.  He knew that the City  and Borough of Juneau does                                                                   
not have a registered structural engineer on staff.                                                                             
                                                                                                                                
2:30:46 PM                                                                                                                    
                                                                                                                                
Mr.  Michaelson interjected  that  most lending  institutions                                                                   
require that their  structure have an ICPO  inspector provide                                                                   
the proper  engineering.  He  did not believe  anything would                                                                   
slip through the cracks.                                                                                                        
                                                                                                                                
Co-Chair Meyer  acknowledged he was "uneasy"  moving the bill                                                                   
from  Committee and  requested  Mr. Morris  be available  for                                                                   
further discussion with Mr. Pawlowski.                                                                                          
                                                                                                                                
Vice  Chair   Stoltze  reiterated  his  concerns   and  asked                                                                   
assurance  that the consideration  is  a public safety  issue                                                                   
and not an industry protection bill.                                                                                            
                                                                                                                                
2:33:51 PM                                                                                                                    
                                                                                                                                
Representative  Holm mentioned  his  own situation  regarding                                                                   
costs  resulting   from  homeowner  withholding   information                                                                   
regarding a vapor  barrier and the costs that  accumulated to                                                                   
more than $90,000 dollars for  him and his family.  He agreed                                                                   
with   the  concerns   regarding  building   codes  and   the                                                                   
protection of assets when buying homes.                                                                                         
                                                                                                                                
HB 377 was HELD in Committee for further consideration.                                                                         
                                                                                                                                

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