04/10/2014 01:30 PM Senate LABOR & COMMERCE

              SB 193-CONTRACTORS: BONDS; LICENSING                                                                          
                                                                                                                                
1:54:35 PM                                                                                                                    
CHAIR  DUNLEAVY   reconvened  the   meeting  and   announced  the                                                               
consideration of SB  193. "An Act relating to  bonds required for                                                               
contractors." This was the third hearing.                                                                                       
                                                                                                                                
1:54:39 PM                                                                                                                    
MINDY   ROWLAND,   Staff,    Senator   Micciche,   Alaska   State                                                               
Legislature,  Juneau, Alaska,  sponsor  of SB  193, reminded  the                                                               
committee that the bill increases  the bonding for contractors to                                                               
reflect inflation since the amounts  were set in the early 1980s.                                                               
Bonding amounts will be increased as follows:                                                                                   
                                                                                                                                
General contractors                                    $25,000                                                                  
Residential endorsement Contractors                    $20,000                                                                  
Mechanical or Specialty Contractors                    $10,000                                                                  
Handyman Contractors performing minimal work           $ 5,000                                                                  
                                                                                                                                
These  bonds provide  recourse for  consumers in  the event  of a                                                               
default or  faulty work, and  the Department of Law  supports the                                                               
increases.  She clarified  that the  handyman provision  does not                                                               
apply to  nonprofessional workers  and reported that  the sponsor                                                               
has heard no opposition to the bill.                                                                                            
                                                                                                                                
CHAIR DUNLEAVY opened public testimony.                                                                                         
                                                                                                                                
1:58:00 PM                                                                                                                    
JOHN  MACKINNON,  Executive   Director,  Association  of  General                                                               
Contractors of Alaska,  Anchorage, Alaska, described SB  193 as a                                                               
consumer protection bill that has  wide support among the various                                                               
construction  trade  associations  in   the  state.  It  provides                                                               
recourse for a  property owner when a  contractor doesn't perform                                                               
properly and  for a  vender when a  contractor doesn't  pay their                                                               
bill. The  bonding rates  were established in  1982 and  the bill                                                               
provides an inflation adjustment.                                                                                               
                                                                                                                                
CHAIR  DUNLEAVY  closed  public  testimony.  Finding  no  further                                                               
questions or comments, he solicited a motion.                                                                                   
                                                                                                                                
1:59:59 PM                                                                                                                    
SENATOR  MICCICHE  moved  to  report  SB  193,  Version  N,  from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s).                                                                                                                        
                                                                                                                                
CHAIR  DUNLEAVY  announced that  without  objection,  SB 193  was                                                               
reported from the Senate Labor and Commerce Standing Committee.