Legislature(2003 - 2004)
03/18/2003 01:35 PM Senate L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 9-HOME INSPECTORS/CONTRACTORS
CHAIR BUNDE announced HB 9 to be up for consideration.
REPRESENTATIVE ROKEBERG, sponsor, said this was the 23rd public
hearing on this bill. He explained that 25% of the state
domestic product (GDP) is real estate transactions. This
legislation sets forth the requirements for becoming a home
inspector including continuing education and the regulatory
scheme under which one would be working.
SENATOR FRENCH asked why he would choose such a short period of
time for bringing an action if the statute of limitations for
contract law is three years.
REPRESENTATIVE ROKEBERG referenced page 10, section 17, and
answered he thought it was important that the timeframe to bring
an action forward should be quite limited because any defect or
omission should be discoverable within one year or with a new
home, within a two year period. The basis for that is that there
is a warranty by homebuilders for condos for a two-year period.
He noted this was only for residential activities. He intended
to keep the commerce of the state moving forward by limiting the
time in which a lawsuit can be brought forward.
SENATOR SEEKINS said language on page 4, line 26, says there are
three different examining organizations for existing homes and
one for new homes and asked him to explain those.
REPRESENTATIVE ROKEBERG replied that the American Society of
Home Inspectors (ASHI) is the primary national organization for
existing home inspectors. The other two are the American Home
Inspectors Training Institute and the National Association of
Home Inspectors that are somewhat competing organizations and
are recognized by various states to a lesser degree than ASHI
is. New home inspectors use International Conference of Building
Officials. He just codified existing practice.
SENATOR SEEKINS asked if he was satisfied that any examinations
offered by those organizations would meet the nation-wide
standard and be adequate in protecting the home buyer if they
passed the test.
REPRESENTATIVE ROKEBERG replied yes.
MR. RICK JARVIS, Anchorage resident, supported HB 9. He said
that they are looking for continuity of education for all home
inspectors who might have different industrial backgrounds.
Nearly half the states regulate home inspectors.
MR. BILL BRADY, Chairman, Anchorage Board of Realtors, said he
was a member of Alaska Association of Realtors and that both
associations supported this bill. He said that this is the
biggest purchase some people are going to make in their lifetime
and it would be nice to know that all home inspectors are on a
level playing field with the same basic knowledge and
requirements. "If one consumer gets hurt, that's one consumer
too many."
MS. CAROL PERKINS said she is a new construction inspector and
has followed this bill for three years. "With a few more
tweakings, I think I can live with this bill and make a living
and continue to serve my constituents out here."
One of her biggest concerns was section 41 that repeals
protection from Alaska Housing. Any city inspector has that
protection given to them through the building codes. She is a
private building inspector and doesn't have a building
department to back her up and if they repeal that, she will have
very little protection from anyone who thought she didn't
interpret codes the way they wanted her to.
2:22 p.m.
TAPE 03-13, SIDE B
MS. PERKINS explained that new home and existing home
inspections are two different reports. She saw a lot of
improvement in the current version and a few more tweaks and
they would be there.
MR. DAVID OWENS, Owens Inspection Services, said he had opposed
HB 9 for the last five years, but changed his position to
support. However, he requested some amendments especially the
liability clause being removed from Alaska Housing statutes.
With the insurance crisis, he is no longer able to buy errors
and omissions insurance in the state of Alaska for new
construction. Existing construction inspectors have that luxury.
He suggested three amendments, one a partial title change and
another deals with the liability that might impact small
inspectors in rural areas who does only 10-15 houses per year.
CHAIR BUNDE asked him to make sure he faxed his amendments to
his office.
REPRESENTATIVE ROKEBERG asked if two of the amendments were a
title change that went with the section 41 repeal.
MR. OWENS replied yes, the second amendment would be changing
the language from two years to one year on page 10, line 6, so
it would be consistent with the existing home inspectors and the
general warranty that builders offer new home owners on new
construction.
REPRESENTATIVE ROKEBERG said he had an amendment on page 8, line
19.
SENATOR SEEKINS moved amendment #1. 23-LS0029\SA.1
Lauterbach
4/7/03
A M E N D M E N T
OFFERED IN THE SENATE
TO: CSHB 9(FIN) am
Page 8, line 19, before "unless":
Insert "or "home inspector""
CHAIR BUNDE objected for discussion purposes.
REPRESENTATIVE ROKEBERG explained that it closed a loophole
about who can hold themselves out to be a home inspector.
CHAIR BUNDE removed his objection and amendment #1 was adopted.
He asked him to speak to the repeal issue.
REPRESENTATIVE ROKEBERG said the public's good is best served by
taking the immunity out for Alaska Housing, because no other
lender has it. One of the witnesses said the municipal
inspectors inspecting homes have immunity under the locally
adopted codes. If there are complaints, people do have recourse,
but here a private homeowner engages a private home inspector to
make a home inspection. It seems that there is a duty owed by
the inspector to the builder under new home construction.
CHAIR BUNDE thanked him and said he would hold this bill for
further work.
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