Legislature(2013 - 2014)BELTZ 105 (TSBldg)
03/20/2014 01:30 PM Senate LABOR & COMMERCE
Audio | Topic |
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Start | |
SB193 | |
SB183 | |
SB189 | |
SB156 | |
SB190 | |
SB99 | |
Confirmation Hearings | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+= | SB 193 | TELECONFERENCED | |
+= | SB 189 | TELECONFERENCED | |
+= | SB 190 | TELECONFERENCED | |
+= | SB 156 | TELECONFERENCED | |
+= | SB 99 | TELECONFERENCED | |
*+ | SB 183 | TELECONFERENCED | |
+ | TELECONFERENCED |
SB 193-CONTRACTORS: BONDS; LICENSING 1:31:44 PM VICE CHAIR MICCICHE announced the consideration of SB 193."An Act relating to bonds required for contractors." This was the first hearing. 1:32:02 PM MINDY ROWLAND, Staff, Senator Micciche, Alaska State Legislature, Juneau, Alaska, introduced SB 193 on behalf of the sponsor speaking to the following sponsor statement: AS 08.18.071 requires contractors operating in Alaska to file a license bond with the Department of Commerce, Community and Economic Development. The purpose of the bond is not only to ensure the contractor has financial resources to pay tax and other obligations, it is established in order to provide the public an avenue to seek recourse in the event there is negligent or improper work or breach of contract. It also helps provide protection to the business community to help contractors and vendors collect upon default for unpaid work or equipment rental. The statute is an important component of Alaska's consumer protection laws. The bond amounts were established in 1982 and have not been updated since. The current level of$10,000 for general contractors and $5,000 for specialty contractors is too low and is no longer providing the intended public protection. In many cases, the recoverable amount is not worth the legal and other costs associated with pursing a claim against a bond. SB 193 proposes to increase the license bond amounts to the following: General Contractors $25,000 General Contractors only residential $20,000 Mechanical or Specialty Contractors $10,000 Contractors performing minimal work $ 5,000 The construction industry, which will be impacted by this legislation, brought forth the recommendation to make an adjustment in the bond amounts. Given the increase in inflation over the last 30 years, the industry felt an increase was long overdue. Purchasing a bond generally costs a small percentage of the total amount of coverage, thus providing a significant benefit to the public and other businesses in relation to the small cost increase as a result of this legislation. SB 193 also corrects a loophole in the statute. All professional contractors are required to be licensed and file a bond. A notable exemption is that the law does not intend to impose license and bond requirement upon non-professional contractors such as family members, friends, neighbors, etc., who get paid for a small amount of work. However, current law allows work under $10,000 to be exempt and this wording has allowed individuals who sell themselves as professionals to avoid the statutory licensure requirements. In these cases, the public has no recourse against unlicensed and unbonded contractors. The bill corrects this by establishing a very modest bond level for those professional contractors performing work on projects less than $10,000. Non- professional handymen are still exempt from the license and bond requirements under the definition provided in AS 08.18.171(4), which states "'contractor' means a person who, in the pursuit of an independent business...." This language is not intended to include a person undertaking a small project for a friend or relative. She reported no outright opposition to the bill. 1:35:26 PM VICE-CHAIR MICCICHE named the people available to testify. ED SNIFFEN, Assistant Attorney General, Civil Division, Consumer Protection Unit, Department of Law, stated that DOL likes the changes incorporated in SB 193. It provides an inflation adjustment of the bonding amounts that have been in statute since 1982. Hopefully the increased bond amounts will result in more consumers holding contractors accountable if their work is faulty. ALVIN NAGEL, Mechanical Inspection Manager, Division of Labor Standards and Safety, Department of Labor and Workforce Development (DOLWD), said he was available to answer questions related to SB 193. 1:37:45 PM ALAN WILSON, Legislative Chair, Alaska State Homebuilding Association (ASHA), Juneau, Alaska, stated that the Board of Directors of ASHA supports SB 193. They see it as an inflationary adjustment, he said. VICE-CHAIR MICCICHE announced that he would hold SB 193 in committee for further consideration. Public testimony was open.
Document Name | Date/Time | Subjects |
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SB 183 Version A.pdf |
SL&C 3/20/2014 1:30:00 PM |
SB 183 |
SB 183 Sponsor Statement.pdf |
SL&C 3/20/2014 1:30:00 PM SL&C 3/27/2014 1:30:00 PM |
SB 183 |
SB183-DCCED-AEA-03-17-14.pdf |
SL&C 3/20/2014 1:30:00 PM SL&C 3/27/2014 1:30:00 PM |
SB 183 |
SB 183- Supporting Document- EETF Fund Award Project Write Ups 11 16 12.pdf |
SL&C 3/20/2014 1:30:00 PM SL&C 3/27/2014 1:30:00 PM |
SB 183 |
SB 183- Supporting Document- EETF Award News Release 11 16 12.pdf |
SL&C 3/20/2014 1:30:00 PM SL&C 3/27/2014 1:30:00 PM |
SB 183 |
SB 183- Supporting Document- EETF Round 1 Project Status Updates - Feb 2014 (2).pdf |
SL&C 3/20/2014 1:30:00 PM SL&C 3/27/2014 1:30:00 PM |
SB 183 |
SLA2014_Senate L&C_Confirmations.doc |
SL&C 3/20/2014 1:30:00 PM |
Confirmation Hearings |
SB99_OppositionLetter_Claus.pdf |
SL&C 3/20/2014 1:30:00 PM |
SB 99 |
SB183_AEA Project Status Updates_Feb 2014.pdf |
SL&C 3/20/2014 1:30:00 PM SL&C 3/27/2014 1:30:00 PM |
SB 183 |
SB183_AEA_EETF Presentation.pdf |
SL&C 3/20/2014 1:30:00 PM SL&C 3/27/2014 1:30:00 PM |
SB 183 |