Legislature(2013 - 2014)HOUSE FINANCE 519
04/19/2014 08:30 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB74 | |
| SB193 | |
| SB108 | |
| SB140 | |
| SB71 | |
| SB218 | |
| SB64 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 74 | TELECONFERENCED | |
| += | SB 193 | TELECONFERENCED | |
| += | SB 108 | TELECONFERENCED | |
| += | SB 218 | TELECONFERENCED | |
| += | SB 71 | TELECONFERENCED | |
| += | SB 140 | TELECONFERENCED | |
| += | SB 64 | TELECONFERENCED | |
SENATE BILL NO. 193
"An Act relating to bonds required for contractors."
8:53:19 AM
Co-Chair Stoltze noted that the bill was debated in a
previous committee hearing. He stated that the proposed CS
deleted the provision for "handyman."
Representative Wilson MOVED to ADOPT the proposed committee
substitute for SB 193, Work Draft 28-LS0697\Y (Martin,
4/17/14). Representative Guttenberg objected for the
purpose of discussion.
Co-Chair Stoltze asked if the senator was familiar with the
intent of the language change in the CS.
SENATOR PETER MICCICHE suggested a misunderstanding
regarding the term "handyman." He clarified that the
handyman category protected the handyman's interests. A
handyman would require a $5 thousand bond rather than the
$10 thousand expected from a contractor. If a person was
not a contractor, the regulations would not be changed. He
explained that the decreased bond cost was requested by
Alaskan handymen.
8:55:30 AM
SARA CHAMBERS, DIRECTOR, DIVISION OF CORPORATIONS, BUSINESS
AND PROFESSIONAL LICENSING, DEPARTMENT OF COMMERCE,
COMMUNITY AND ECONOMIC DEVELOPMENT, stated that Department
of Commerce, Community and Economic Development experienced
frequent requests from handymen for state licensure. She
noted that a misconception existed within the community
regarding the complex exemption list provided by the
department.
Co-Chair Stoltze asked if a handyman would obtain a regular
business license.
Ms. Chambers concurred, but noted that the guidelines
regarding the necessity of a contractor's license were
often confusing. The department believed that codifying a
handyman license for the correct professional and business
license categories would assist those people seeking the
licensure.
8:57:30 AM
Senator Micciche stated that the change in the CS would
move the handyman into a higher category and cost them more
for licensing. He believed that the objective of the CS was
to save money for the handyman, but instead the change
moved them into a more expensive level of bonding. He
stated that the bond would cost $150 to $250 annually for
the entry level, which would protect the handyman and the
customer.
8:58:45 AM
Representative Wilson asked how the CS and original version
affected the handyman.
Senator Micciche responded that for earnings less than
$2500 per job nothing changed. He noted that the bill did
not alter the laws governing contractors. He clarified that
the action of advertising would lead to establishment of a
contractor status.
Co-Chair Stoltze noted that advertising was the trigger.
9:00:27 AM
Representative Wilson pointed out the qualification figure
of $10 thousand.
Senator Micciche responded that prior to the legislation, a
contractor required insurance at $2500, but did not require
a bond.
Representative Wilson asked if the CS would cause an
expense for the handyman category that was prevented in the
original legislation.
Senator Micciche responded that that a lower-level handyman
would pay between $150 and $250 more for the bond with the
CS.
9:01:52 AM
Ms. Chambers added that the department served many Alaskans
seeking business licenses. Many handymen advertised, which
required licensure as a general or specialty contractor.
She spoke of 516 investigative matters last year for the
construction contractor category. She stated that the
Department of Labor and Workforce Development would
investigative matters for unlicensed practice. She stated
that the legislation would help avoid a $1000 daily fine
for being in business as a handyman without a license.
Representative Wilson understood that the solution was
licensure.
Ms. Chambers concurred.
9:04:04 AM
Vice-Chair Neuman asked for CS version clarification during
the committee discussion.
Senator Micciche stated that he had been referring to the
original legislation.
Representative Costello asked for version clarification
throughout Ms. Chambers' testimony.
Ms. Chambers replied that maintaining the bonding
requirement for the handyman category would help accomplish
the goal.
Representative Costello asked if Ms. Chambers referred to
the original version.
Ms. Chambers concurred.
Representative Holmes OBJECTED. She stated that she would
express OBJECTION to the CS as it might cost more money.
9:06:15 AM
Senator Micciche spoke to the adoption of the CS. He stated
that when a handyman advertised in Alaska, a minimum bond
of $10 thousand was required. The cost of the bond was
dropped to $5 thousand for the handyman category.
A roll call vote was taken on the motion to adopt the CS,
version Y.
IN FAVOR:
OPPOSED: Neuman, Thompson, Wilson, Costello, Edgmon, Gara,
Guttenberg, Holmes, Munoz, Austerman, Stoltze
The MOTION FAILED (11/0).
The workdraft was not adopted.
Representative Holmes expressed better understanding of the
bill because of the CS.
9:09:12 AM
Co-Chair Stoltze asked for amendments.
Representative Costello discussed the two zero fiscal
notes.
9:09:53 AM
Representative Holmes MOVED to REPORT SB 193 (FIN) out of
committee with individual recommendations and the
accompanying fiscal notes.
9:10:20 AM
AT EASE
9:10:33 AM
RECONVENED
Representative Holmes rescinded the prior motion to move
the bill. She MOVED conceptual amendment 1, which added the
effective date of January 1, 2015. There being NO
OBJECTION, it was so ordered.
9:11:16 AM
Representative Holmes MOVED to REPORT SB 193(FIN), as
amended out of committee with individual recommendations
and the accompanying fiscal notes. There being NO
OBJECTION, it was so ordered.
HCSSB 193(FIN) was REPORTED out of committee with a "do
pass" recommendation and with one new zero fiscal note from
the Department of Labor and Workforce Development and one
new zero fiscal note from the Department of Commerce,
Community and Economic Development.
9:21:55 AM
AT EASE
9:36:17 AM
RECONVENED
| Document Name | Date/Time | Subjects |
|---|---|---|
| HFC CS SB 108 (FIN).pdf |
HFIN 4/19/2014 8:30:00 AM |
SB 108 |
| CS WORKDRAFT FIN Y version.pdf |
HFIN 4/19/2014 8:30:00 AM |
SB 193 |
| SB 108 Court View Disclaimer.pdf |
HFIN 4/19/2014 8:30:00 AM |
SB 108 |
| SB 64 CS WORKDRAFT HFIN 28-LS0116Q.pdf |
HFIN 4/19/2014 8:30:00 AM |
SB 64 |
| SB 140 CS WORKDRAFT FIN 28-LS1246B.pdf |
HFIN 4/19/2014 8:30:00 AM |
SB 140 |
| SB 71 CS WORKDRAFT FIN 28-LS0594H.pdf |
HFIN 4/19/2014 8:30:00 AM |
SB 71 |
| SB 64 MADD Document.pdf |
HFIN 4/19/2014 8:30:00 AM |
SB 64 |
| SB 218 CS WORKDRAFT HFIN 28-LS1567-P.pdf |
HFIN 4/19/2014 8:30:00 AM |
SB 218 |
| SB 71 Amendment Munoz #1 HFIN.pdf |
HFIN 4/19/2014 8:30:00 AM |
SB 71 |
| SB 64 Amendment #1 Holmes.pdf |
HFIN 4/19/2014 8:30:00 AM |
SB 64 |
| SB 64 Amendment Replacement #1 Holmes.pdf |
HFIN 4/19/2014 8:30:00 AM |
SB 64 |