Legislature(2003 - 2004)
04/29/2004 09:10 AM House RLS
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 542-CONSTRUCTION CONTRACTORS CHAIR ROKEBERG announced that the next order of business would be HOUSE BILL NO. 542, "An Act relating to specialty construction contractors and to construction contractor exemptions." Number 093 REPRESENTATIVE McGUIRE moved to adopt CSHB 542, Version 23- LS1874\D, Bannister, 4/9/04, as the working document. REPRESENTATIVE BERKOWITZ objected for discussion purposes. Number 098 SUE STANCLIFF, House Majority Office, Alaska State Legislature, explained that the only change in Version D is the title, which has been tightened. REPRESENTATIVE BERKOWITZ withdrew his objection. Therefore, Version D was before the committee. CHAIR ROKEBERG asked if there has been any opposition to this legislation. MS. STANCLIFF answered that those in the real estate industry have expressed concern that this would increase the costs for homeowners who are selling properties that need minor work to complete the sale. The aforementioned is one of the reasons the [title] wasn't made any tighter than it is. "We'd like to take a small bite of the apple, instead of a very big one that's going to bring huge opposition," she said. Number 123 REPRESENTATIVE KOTT suggested that he has worked with the Division of Occupational Licensing to develop a very calculated way in which to address this issue. The issue is with regard to handymen working beyond the scope of their authority. Representative Kott explained that as a contractor he has certain requirements to be in the business. However, there are handymen who don't meet the same requirements, although they are performing the job of a contractor, which is well beyond the scope of the statute. Representative Kott noted that he disagrees with the claim that this will increase the cost for homeowners. Beyond placing some enforcement in the law and placing these handymen out of business, this legislation offers a careful way to address the issue on a voluntary basis. REPRESENTATIVE BERKOWITZ remarked that the $5,000 [ceiling for a contract price] doesn't allow for much work. Therefore, he inquired as to why a limit is necessary. Number 154 RICK URION, Director, Division of Occupational Licensing, Department of Community & Economic Development (DCED), informed the committee that the handyman category has caused more complaints than any other the division licenses. This legislation will help solve some of the problems, and therefore he urged the committee to pass the legislation in its current form. CHAIR ROKEBERG suggested that the key issue is enforcement. Therefore, he asked if [the committee] should look at the home inspectors template and consider licensing handymen in order to obtain some revenue for enforcement. MR. URION pointed out that the term "handyman" has been used for some time, although it doesn't appear in the statutes. He explained that handymen are no longer licensed under construction, rather an entire new category has been created. The problem is that some handymen are acting as contractors rather than performing small repairs. REPRESENTATIVE BERKOWITZ returned to the $5,000 ceiling. He posed a situation in which an individual performs two different projects on the same job site. In the aforementioned situation would the two projects be considered separately with each having the $5,000 limit or does the aggregate cost of the two projects have to fall under $5,000. MR. URION answered that it would be the aggregate amount. REPRESENTATIVE BERKOWITZ asked whether the ceiling would be the aggregate amount even if the two projects are done at different times. MR. URION said that he was sure there are ways to skirt the law. However, there is a need for handymen to do small repairs and if a contractor is necessary, then a contractor should be hired. He stressed that the problem is that [some handymen] are performing [contractor] work for which they aren't insured and bonded. Number 199 REPRESENTATIVE McGUIRE moved to report CSHB 542, Version 23- LS1874\D, Bannister, 4/9/04, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 542(RLS) was reported from the House Rules Standing Committee.
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