Legislature(2011 - 2012)BARNES 124

02/14/2011 03:15 PM House LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 114 OPT-OUT CHARITABLE GIVING PROGRAM TELECONFERENCED
Moved CSHB 114(L&C) Out of Committee
+ HB 130 RESIDENTIAL SPRINKLER SYSTEMS TELECONFERENCED
Moved CSHB 130(L&C) Out of Committee
                                                                                                                                
              HB 130-RESIDENTIAL SPRINKLER SYSTEMS                                                                          
                                                                                                                                
3:48:41 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced  that the final order of  business would be                                                               
HOUSE BILL NO.  130, "An Act relating to  municipal building code                                                               
requirements for  fire sprinkler  systems in  certain residential                                                               
buildings; and providing for an effective date."                                                                                
                                                                                                                                
3:49:06 PM                                                                                                                    
                                                                                                                                
ROB  EARL,   Staff,  Representative  Bob  Herron,   Alaska  State                                                               
Legislature, on behalf of Representative  Bob Herron, stated that                                                               
HB 130  was sponsored  by the House  Labor and  Commerce Standing                                                               
Committee.  He explained the main  purpose of HB 130 is to expand                                                               
the public process  necessary for a municipality if  it wishes to                                                               
consider  mandating  fire  sprinklers  in  all  new  construction                                                               
projects.   The parties  affected tend to  fall into  two groups,                                                               
with homebuilders and  realtors who are concerned  about the cost                                                               
associated with a blanket mandate  for fire sprinkler systems and                                                               
the  Fire Chiefs'  Association, who  rightfully promote  expanded                                                               
installation of  fire sprinklers in residential  homes to provide                                                               
for additional safety.  After  multiple hearings on these issues,                                                               
a compromise  between these  two groups has  been reached  and is                                                               
incorporated  in  HB  130.   He  said  he  is  not aware  of  any                                                               
opposition to  the bill.   The bill  is neither "pro"  nor "anti"                                                               
fire  sprinkler  systems.   The  proposed  legislation  does  not                                                               
prohibit  Alaskans  from  installing fire  sprinkler  systems  in                                                               
their homes.                                                                                                                    
                                                                                                                                
MR.  EARL   highlighted  that  HB   130  includes   language,  "a                                                               
municipality may  not adopt an  ordinance to require  a sprinkler                                                               
system in all new residential  buildings with one or two dwelling                                                               
units"  unless   the  municipality  performs   additional  public                                                               
noticing.    At least  30  days  prior  to  the hearing  for  the                                                               
ordinance a municipality must publish  a summary of the ordinance                                                               
and notice  of the time and  place of each public  hearing, and a                                                               
municipality must schedule  at least three public  hearings to be                                                               
held within  a 60 to 180  day time period.   The sponsor stresses                                                               
that any decisions on fire  sprinklers should be decided at local                                                               
level.  The  question is whether the  requirement, with potential                                                               
financial  costs   associated  with  installing   fire  sprinkler                                                               
systems, should have  a more robust public hearing  process.  The                                                               
sponsor  thinks   the  additional   public  hearing   process  is                                                               
necessary.                                                                                                                      
                                                                                                                                
3:51:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  acknowledged that  this bill  would apply                                                               
to all  new single  family dwellings.   He  asked whether  HB 130                                                               
would apply to retrofitting existing  residences and if so, would                                                               
the noticing requirements be the same.                                                                                          
                                                                                                                                
MR. EARL  offered his  belief that  such a  change could  be made                                                               
without additional  notice since a municipality  could require an                                                               
area to  have fire  sprinklers.  Under  the bill,  a municipality                                                               
could not  require fire sprinklers  for new residences  unless it                                                               
submitted to the three requirements just listed.                                                                                
                                                                                                                                
CHAIR OLSON reiterated that there  is not any known opposition to                                                               
HB 130.                                                                                                                         
                                                                                                                                
REPRESENTATIVE   JOHNSON   expressed    concern   that   if   new                                                               
construction  requires  additional  noticing  that  an  ordinance                                                               
requiring  retrofitting  should  also require  additional  public                                                               
notices since it would be  more expensive to install fire systems                                                               
in  existing homes,  which could  be onerous  to homeowners.   He                                                               
said he  did not want  to "throw a wrench  in it" but  noted this                                                               
aspect is worth considering.                                                                                                    
                                                                                                                                
MR. EARL said he had no comments.                                                                                               
                                                                                                                                
3:53:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MILLER said he liked the  intention of HB 130.  He                                                               
pointed out that he has a  number of constituents with dry cabins                                                               
and it would  be impossible for them to  install fire sprinklers.                                                               
He  related his  understanding that  HB  130 would  defer to  the                                                               
local municipality.   He wondered  if anyone had any  thoughts on                                                               
that issue.                                                                                                                     
                                                                                                                                
MR.  EARL answered  that he  raised a  good point,  which is  the                                                               
reason  for  the expanded  public  process.   Alaska  is  unique.                                                               
People live in dry cabins.   He offered his belief that this bill                                                               
takes that into consideration.                                                                                                  
                                                                                                                                
3:54:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER referred  to page  2  of HB  130, to  the                                                               
publishing  requirement in  subparagraphs (A)  and (B)  and asked                                                               
for the specific publication requirements.                                                                                      
                                                                                                                                
MR.  EARL answered  that the  bill  does not  impose as  specific                                                               
requirement for the  scope of the publications  necessary to meet                                                               
this provision.   He reviewed the  current statutory requirements                                                               
and  stated   that  under  AS  29.25.020,   a  municipality  must                                                               
introduce the ordinance in writing,  that a public hearing may be                                                               
required by  majority vote,  and at  least five  days prior  to a                                                               
public hearing a summary of  the ordinance must be published with                                                               
the time and place  of the hearing.  Thus, the  time and place is                                                               
not specified in current statute, he said.                                                                                      
                                                                                                                                
3:56:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  pointed  out  if the  intent  is  to  be                                                               
certain  the  public  is  adequately   informed  that  it  seemed                                                               
important to be certain adequate public noticing occurs.                                                                        
                                                                                                                                
3:57:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE THOMPSON recalled from  his experience as a former                                                               
mayor that upcoming matters were  published in the newspaper, but                                                               
his  agency discovered  some  "wiggle room"  that  allowed it  to                                                               
publish notices  on the Internet.   He reported that  this action                                                               
saved advertising  monies and that the  newspaper notices advised                                                               
the public  of the upcoming meeting  and to check online  for the                                                               
specific agenda.                                                                                                                
                                                                                                                                
CHAIR  OLSON recalled  similar testimony  on  the fire  sprinkler                                                               
issue last year.                                                                                                                
                                                                                                                                
REPRESENTATIVE HOLMES recalled  discussing publication issues but                                                               
she not  certain which  bill.   She offered  her belief  that the                                                               
requirements vary between municipalities.                                                                                       
                                                                                                                                
3:59:07 PM                                                                                                                    
                                                                                                                                
ERROL  CHAMPION,  Secretary,   Alaska  Association  of  Realtors,                                                               
Southeast Chapter,  thanked the  committee.   He related  that he                                                               
testified last  year on a  similar bill which  did not pass.   He                                                               
said HB  130 is  important to  realtors in terms  of the  sale of                                                               
homes and to keep the prices of  homes down.  He urged members to                                                               
adopt HB 130.                                                                                                                   
                                                                                                                                
4:00:10 PM                                                                                                                    
                                                                                                                                
ALAN  WILSON, Director;  Legislative  Committee Co-Chair,  Alaska                                                               
State  Home Building  Association (ASHBA),  stated that  he is  a                                                               
local builder.   He offered  that the Alaska State  Home Building                                                               
Association supports  HB 130.   He offered to address  an earlier                                                               
question with respect  to fire sprinkler requirements  for new or                                                               
existing  construction.   The  main reason  ASHBA  is before  the                                                               
legislature  is  to address  revisions  to  the overall  building                                                               
codes.   Sprinkler systems were  previously in the  building code                                                               
appendix, but the  soon to be adopted revised  building code will                                                               
place sprinkler systems  into the body of the code.   The concern                                                               
is that  when various code  agencies review the codes  during the                                                               
adoption  process, the  agencies  may overlook  how adopting  the                                                               
revised  code  will  change  the   local  requirements  for  fire                                                               
sprinklers.    Typically,  code   agency  reviews  address  local                                                               
requirements by  amendment to address vapor  barriers, insulation                                                               
values  and similar  things.   He  related  ASHBA's concern  that                                                               
"that would  be overlooked,  the codes would  be adopted  and one                                                               
day  you'd  wake   up  and  you'd  have   a  mandatory  sprinkler                                                               
requirement."   He offered his  belief that in terms  of existing                                                               
construction  everyone  is  more  tuned in  to  the  cost  factor                                                               
associated with retrofitting the property.   In response to Chair                                                               
Olson, he agreed that the  extended hearing process especially if                                                               
sprinkler systems  are mentioned  would address  the retrofitting                                                               
sprinkler issue.                                                                                                                
                                                                                                                                
4:02:13 PM                                                                                                                    
                                                                                                                                
KATHIE  WASSERMAN, Executive  Director,  Alaska Municipal  League                                                               
(AML), stated that she is  primarily acting as an observer today.                                                               
She offered  that the  AML is  not opposed to  bill and  is happy                                                               
with the bill as it is currently written.                                                                                       
                                                                                                                                
CHAIR  OLSON asked  whether  public  noticing requirements  would                                                               
vary by political subdivision.                                                                                                  
                                                                                                                                
MS. WASSERMAN  answered many  municipalities already  comply with                                                               
the notice requirements  in HB 130.  She offered  her belief that                                                               
very few  municipalities would be  affected by changes in  HB 130                                                               
and municipalities will be "ready and willing" to comply.                                                                       
                                                                                                                                
4:03:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOLMES referred  to page  2,  line 8  of HB  130,                                                               
which requires  that a summary  of the ordinance be  published 30                                                               
days  prior  to  the  first  scheduled  public  hearing  for  the                                                               
ordinance.  She  asked whether the term "publish"  to some extent                                                               
may  be  determined by  municipal  code  and may  differ  between                                                               
municipalities.                                                                                                                 
                                                                                                                                
MS. WASSERMAN  answered yes.   She  recalled that  she previously                                                               
lived in Pelican and in that  community it meant publish in three                                                               
places,  which  could  be  on  the wall  at  city  hall,  on  the                                                               
boardwalk, in  front of the  bar, or  any place the  city thought                                                               
the  notice would  most likely  be seen.  She offered  her belief                                                               
that in most large communities  an ordinance states which papers,                                                               
radio,   or  other   media  would   satisfy  the   public  notice                                                               
requirement.   She offered  that most  communities have  a pretty                                                               
good record in terms of public noticing.                                                                                        
                                                                                                                                
4:04:41 PM                                                                                                                    
                                                                                                                                
AMY KRIER, Owner/Broker, Advantage  Alaska Realty, explained that                                                               
the  requirement  for  single  family  homes  to  have  sprinkler                                                               
systems would increase the already  high cost of new construction                                                               
in the Interior and would  prohibit many families from being able                                                               
to afford a  new home.  She reported that  rent is extremely high                                                               
and  any increase  in  the  cost of  building  duplexes would  be                                                               
passed  on to  renters and  may  result in  fewer duplexes  being                                                               
built.   She  pointed out  that maintaining  a sprinkler  system,                                                               
which  would   likely  require   inspections  could   be  costly.                                                               
Additionally,  there  may not  be  enough  inspectors to  perform                                                               
inspections  for  single  family  homes or  duplexes.    Further,                                                               
inspections would be  necessary and would add to  the sales cost,                                                               
especially  if  the  system  needed repairs.    She  related  her                                                               
understanding  that the  code change  was developed  to apply  to                                                               
densely populated, urban multi-family housing.   Alaska has a lot                                                               
of  rural  homes  not  connected  to  public  water  systems  and                                                               
maintaining  a  pressurized system  in  a  home  with a  well  or                                                               
holding  tank  isn't  very  practical.    It  could  require  the                                                               
homeowner  to  purchase a  generator  since  well pumps  are  not                                                               
functional  during power  outages.   Alaska has  "dry" cabins  as                                                               
previously mentioned  and the risk  of freezing pipes  could also                                                               
cause  serious  water  damage  and  related  mold  issues.    She                                                               
expressed concern that requiring  fire sprinkler systems in homes                                                               
could result in  more insurance claims and higher  premiums.  She                                                               
also  shared  concerns about  retrofitting  with  regard to  home                                                               
remodels.   The cost of  retrofitting could be  astronomical, she                                                               
said.                                                                                                                           
                                                                                                                                
4:07:37 PM                                                                                                                    
                                                                                                                                
MS. KRIER opined  that the cost and  potential downsides outweigh                                                               
the benefits for single family  homes and duplexes.  She asserted                                                               
that she  agreed with the  expanded public notice outlined  in HB
130.  She  suggested that a cost benefit analysis  should be made                                                               
available  and  public  input  should   be  considered  before  a                                                               
municipality is  allowed to adopt a  requirement for installation                                                               
of mandatory fire sprinkler systems  in single family residential                                                               
homes or in duplexes.                                                                                                           
                                                                                                                                
4:07:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON asked  in terms  of her  experience as  a                                                               
real estate broker,  whether a bank would treat  the financing in                                                               
a scenario  during sales,  and if it  would affect  a homeowner's                                                               
financing if the person did not  retrofit his/her home.  He asked                                                               
whether the bank  could require retrofitting as a  condition of a                                                               
sale.                                                                                                                           
                                                                                                                                
MS.  KRIER answered  she did  not  think an  inspection would  be                                                               
required for a  refinancing, but it could "come into  play" if an                                                               
inspection was required, if the  code included upgrades requiring                                                               
fire sprinklers, and  the lender wanted a copy  of the inspection                                                               
report.    She  offered  her  belief  it  is  possible  in  those                                                               
circumstance that  the issue of  fire sprinklers could  arise and                                                               
financing would be denied.                                                                                                      
                                                                                                                                
4:09:11 PM                                                                                                                    
                                                                                                                                
GLENDA  FEEKAN, Owner,  RE/MAX of  the Peninsula;  Member, Alaska                                                               
Association  of Realtors,  stated she  strongly urges  members to                                                               
support HB 130.   She explained that  realtors support affordable                                                               
housing.  She  offered her belief that  mandatory fire sprinklers                                                               
for  single family  homes and  duplexes would  cause considerable                                                               
costs for construction, maintenance,  resale, and insurance.  She                                                               
asked  members to  keep in  mind that  current homeowners  do not                                                               
upkeep the  batteries in their  smoke alarms  so she has  no idea                                                               
what they would  do to maintain sprinkler systems.   She stressed                                                               
that affected people  should be advised of  the incredible burden                                                               
associated with sprinkler systems  before a governing body adopts                                                               
a new  rule.  She stated  that citizens should not  be subject to                                                               
this mandate without notification.  She  offered that HB 130 is a                                                               
great  bill since  it  is  proactive in  response  to a  national                                                               
movement to require  fire sprinkler systems, which  would be very                                                               
detrimental to Alaskans.                                                                                                        
                                                                                                                                
4:10:36 PM                                                                                                                    
                                                                                                                                
JEFF TUCKER,  President, Alaska  Fire Chiefs  Association (AFCA),                                                               
stated that  the issues  in HB  130 have been  worked on  for the                                                               
past two  years in the  legislature.  He  said the AFCA  does not                                                               
oppose the bill and encourages adoption  of HB 130 in its current                                                               
form.  He  concluded, "We'd like to see it  passed in its current                                                               
format."                                                                                                                        
                                                                                                                                
4:11:50 PM                                                                                                                    
                                                                                                                                
PAUL  MICHELSOHN, Co-Chair,  Legislature  Committee, Alaska  Home                                                               
Building  Association (ASHBA),  stated  that  he appreciated  the                                                               
committee introducing  HB 130.   He  said he  has worked  on this                                                               
issue  for  five years  with  the  National Association  of  Home                                                               
Builders.   He stressed  he is in  total support of  HB 130.   He                                                               
related his  understanding that the  legislature ran out  of time                                                               
last year.  He urged members to pass the bill out today.                                                                        
                                                                                                                                
CHAIR OLSON  commended the work  that last year's sponsor  did on                                                               
this bill.                                                                                                                      
                                                                                                                                
4:13:13 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON,  after first  determining  no  one else  wished  to                                                               
testify, closed public testimony on HB 130.                                                                                     
                                                                                                                                
4:13:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON referred  to page 2, line 18 of  HB 130, to                                                               
the effective date of  the bill of July 1, 2011.   He offered his                                                               
belief the  effective date would  not allow time  for regulations                                                               
to  be  promulgated,  although  he  did not  think  it  would  be                                                               
necessary for municipalities to do so.                                                                                          
                                                                                                                                
MR. EARL said he did not have any comment on the effective date.                                                                
                                                                                                                                
4:14:23 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:14 p.m. to 4:15 p.m.                                                                       
                                                                                                                                
4:15:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SEATON  asked   whether  the   committee  should                                                               
consider  amending HB  130 to  remove the  effective date  of the                                                               
bill.   He related his  understanding that some  confusion exists                                                               
on how the effective date  might affect municipalities.  He asked                                                               
for any other committee discussion on the effective date.                                                                       
                                                                                                                                
REPRESENTATIVE HOLMES offered her  belief that the effective date                                                               
is not  critical since  the bill would  become effective  90 days                                                               
after the  governor signed the bill.   She commented if  the bill                                                               
were to languish until the  next legislature session that someone                                                               
would need to amend HB 130 to address the effective date.                                                                       
                                                                                                                                
REPRESENTATIVE JOHNSON  remarked that the effective  date in also                                                               
in the title of the bill.                                                                                                       
                                                                                                                                
4:17:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON   made  a   motion  to   adopt  Conceptual                                                               
Amendment  1 to  delete proposed  Section 3  and the  appropriate                                                               
language in the  title to reflect removal of  the effective date.                                                               
There being no objection, Conceptual Amendment 1 was adopted.                                                                   
                                                                                                                                
4:18:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  THOMPSON expressed  his initial  concern with  HB
130  since  it  appeared  the   bill  created  an  imposition  on                                                               
residents.  He  related his subsequent understanding  that HB 130                                                               
actually  provides  consumer  protection  since  it  offers  some                                                               
protection against  the requirement for mandatory  fire sprinkler                                                               
systems.  He offered his support for HB 130.                                                                                    
                                                                                                                                
REPRESENTATIVE THOMPSON moved  to report HB 130,  as amended, out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying  fiscal  notes.  There   being  no  objection,  CSHB
130(L&C) was reported from the  House Labor and Commerce Standing                                                               
Committee.                                                                                                                      

Document Name Date/Time Subjects
HB130 Fiscal Note-DPS-FLS-02-05-11.pdf HL&C 2/14/2011 3:15:00 PM
HB 130
HB130 Supporting Documents - Letter Alaska HBA 2-1-2011.pdf HL&C 2/14/2011 3:15:00 PM
HB 130
HB130 Supporting Documents - Letter AK Assoc of Realtors 2-4-2011.pdf HL&C 2/14/2011 3:15:00 PM
HB 130
HB130 Supporting Documents - Summary of HB 130 Effects.pdf HL&C 2/14/2011 3:15:00 PM
HB 130
HB130 Supporting Documents Letter AFCA 2-14-2011.pdf HL&C 2/14/2011 3:15:00 PM
HB 130