Legislature(2003 - 2004)
05/04/2004 01:55 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
CSHB 542(RLS)-CONSTRUCTION CONTRACTORS CHAIR CON BUNDE announced CSHB 542(RLS) to be up for consideration. MS. SUE STANCLIFF, staff to Speaker Kott, sponsor, explained that the bill is meant to provide a solution to the growing issue of unregistered contractors providing construction services illegally under the guise of a handyman license. Current law states minimum requirements for a person who represents himself as either a contractor or a specialty contractor. Instead of meeting qualification standards and insurance requirements, 1,600 business licenses have been issued to these construction-related, exempt-from-contractor registrations. This bill lowers the project limit from $10,000 to $5,000 and expands the work that can be done by a specialty contractor. MS. EDEN LARSON, President and CEO, Associated Builders and Contractors, supported HB 542. MR. RICK URION, Director, Division of Occupational Licensing, said his division had more complaints in this area than anywhere else. The problem is that unlicensed people are uninsured and not bonded and the consumer has no recourse if he or she does a bad job. He explained that a category of handyman has been created helping clarify the situation. SENATOR FRENCH asked if a handyman can be a specialty contractor and asked what section 3 does. MR. URION answered that the way the law was written they were a specialty contractor, but they were exempt from construction. Section 3 changes that. SENATOR FRENCH asked what problems lowering the project limit from $10,000 to $5,000 would correct. MR. URION replied that it would keep handymen in the repair business and out of the construction business. SENATOR FRENCH put on the record that he owns apartment houses in Anchorage and couldn't get along without his handyman. He didn't want to threaten his ability to do work. SENATOR GARY STEVENS asked if this would possibly raise the cost of hiring a handyman by adding costs to be passed on to the consumer. MR. URION explained that no overhead was being added to the handyman category for projects under $5,000. SENATOR GARY STEVENS moved to pass CSHB 542(RLS) from committee with individual recommendations and attached fiscal note. Senators French, Davis, Seekins, Gary Stevens and Chair Bunde voted yea and CSHB 542(RLS) moved from committee.
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