05/11/2022 01:30 PM Senate LABOR & COMMERCE

            SB 181-IDENTIFICATION OF CONTRACTOR IN ADS                                                                      
                                                                                                                                
2:46:11 PM                                                                                                                    
CHAIR  COSTELLO announced  the consideration  of SENATE  BILL NO.                                                               
181  "An   Act  relating   to  identification   requirements  for                                                               
contractors."                                                                                                                   
                                                                                                                                
She noted that  this was the first hearing and  the intention was                                                               
to  hear  the introduction,  take  public  testimony, respond  to                                                               
questions, and look to the will of the committee.                                                                               
                                                                                                                                
2:46:40 PM                                                                                                                    
SENATOR  SHELLEY   HUGHES,  Alaska  State   Legislature,  Juneau,                                                               
Alaska,  sponsor of  SB 181,  paraphrased  the following  sponsor                                                               
statement:                                                                                                                      
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Since  1968, contractors  and  home  inspectors in  the                                                                    
     State of Alaska have  been statutorily required to list                                                                    
     their  name, mailing  address, and  registration number                                                                    
     in all advertising.  Additionally, contractors have had                                                                    
     a fourth  requirement of listing their  principal place                                                                    
     of  business in  any  advertisements. This  requirement                                                                    
     can incur  great expense for  contractors, particularly                                                                    
     those  looking   to  advertise  in  print,   radio,  or                                                                    
     television   where  each   additional   word  or   line                                                                    
     increases the  cost. Furthermore, contractors  and home                                                                    
     inspectors  in   Alaska  may  operate  more   than  one                                                                    
     registered  business  which  are  advertised  together.                                                                    
     This  may  require  the  contractor  to  list  multiple                                                                    
     registration numbers within the same advertisement.                                                                        
                                                                                                                                
     Senate  Bill 181  amends the  current statute  by allow                                                                    
     contractors  and home  inspectors  to substitute  their                                                                    
     internet   website    or   landing   page    in   their                                                                    
     advertisements which contains  the statutorily required                                                                    
     identifying  information  rather   that  list  all  the                                                                    
     required     information     directly    within     the                                                                    
     advertisement.   Additionally,   this   bill   requires                                                                    
     contractors  to specify  that the  internet website  or                                                                    
     landing   page   provided  contains   the   information                                                                    
     required under  statute for the  benefit of  the viewer                                                                    
     of the ad.                                                                                                                 
                                                                                                                                
     These amendments  are proposed in order  to spare costs                                                                    
     and   streamline   the    advertisement   process   for                                                                    
     contractors and home inspectors.                                                                                           
                                                                                                                                
2:48:48 PM                                                                                                                    
DANIEL PHELPS, Staff, Senator Shelley Hughes, Alaska State                                                                      
Legislature, Juneau, Alaska, presented the sectional analysis                                                                   
for SB 181 on behalf of the sponsor:                                                                                            
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
          SB 181: IDENTIFICATION OF CONTRACTOR IN ADS                                                                         
                           Version G                                                                                          
     "An  Act relating  to  identification requirements  for                                                                    
     contractors."                                                                                                              
                                                                                                                                
                  Sectional Analysis Version B                                                                                
                                                                                                                                
     Section 1    AS 08.18.051 (b)   Page 1,  Line 3 through                                                                  
     Page 1, Line 12                                                                                                          
     Amends    AS    08.18.051   regarding    identification                                                                    
     requirements  for  contractors in  advertisements.  The                                                                    
     new  language specifies  that  a contractor's  internet                                                                    
     website  or  landing  page satisfies  the  contractor's                                                                    
     identification requirements  in advertisements  so long                                                                    
     as  it  contains  the  identifiers  required  under  AS                                                                    
     08.18.051  and   the  advertisement  states   that  the                                                                    
     required information  is contained on  the contractor's                                                                    
     Internet website or landing page.                                                                                          
                                                                                                                                
     Section 2   AS 08.18.053 (b)    Page 1, Line 13 through                                                                  
     Page 2, Line 6                                                                                                           
     Amends    AS    08.18.053   regarding    identification                                                                    
     requirements  for  home inspectors  in  advertisements.                                                                    
     The  new language  specifies  that  a home  inspector's                                                                    
     internet  website or  landing page  satisfies the  home                                                                    
     inspector's     identification      requirements     in                                                                    
     advertisements so  long as it contains  the identifiers                                                                    
     required  under  AS  08.18.051  and  the  advertisement                                                                    
     states that  the required  information is  contained on                                                                    
     the home inspector's Internet website or landing page.                                                                     
                                                                                                                                
     Section 3   AS 08.18.171    Page 2, Line 7 through Page                                                                  
     2, Line 10                                                                                                               
     Amends AS 08.18.171 by adding  a definition of "landing                                                                    
     page"  to the  definitions for  Alaska Statute  Title 8                                                                    
     Chapter 18.                                                                                                                
                                                                                                                                
CHAIR COSTELLO asked if other  states had similar legislation and                                                               
if  the original  notice requirements  apply in  communities that                                                               
don't have internet access.                                                                                                     
                                                                                                                                
MR. PHELPS replied  that this provides an  option for contractors                                                               
to use  the internet.  The original  language remains  in statute                                                               
and   the  required   information   is  the   same  whether   the                                                               
advertisement is online or not.                                                                                                 
                                                                                                                                
CHAIR  COSTELLO  asked  if  there was  any  specific  support  or                                                               
opposition to the legislation.                                                                                                  
                                                                                                                                
SENATOR HUGHES  said her  office had heard  no opposition  to the                                                               
bill and the industry was  supportive. She deferred to Mr. Phelps                                                               
to discuss the support.                                                                                                         
                                                                                                                                
2:51:25 PM                                                                                                                    
MR.  PHELPS advised  that the  bill had  received verbal  support                                                               
from  ADT  and  the  Division   of  Corporations,  Business,  and                                                               
Professional Licensing  and the companion House  bill had written                                                               
support  from  the  Alaska General  Contractors  Association.  He                                                               
offered to provide a copy of that letter.                                                                                       
                                                                                                                                
CHAIR  COSTELLO  asked  if there  were  any  consumer  protection                                                               
concerns the committee  should be aware of, and if  an agency was                                                               
charged with  checking that the contractor's  internet website or                                                               
landing page for the required information actually existed.                                                                     
                                                                                                                                
SENATOR HUGHES  said it would  have to  come to the  attention of                                                               
the Department  of Commerce,  Community and  Economic Development                                                               
(DCCED) and she believes the  department is open to such reports.                                                               
To the question about a business  that advertises in an area that                                                               
has  no  internet, she  said  she  believes  a business  in  that                                                               
situation  would make  sure their  information  was available  as                                                               
required under the current statute.                                                                                             
                                                                                                                                
SENATOR MICCICHE asked if someone  who advertises on a website or                                                               
Facebook page would fall under  the definition of "contractor" if                                                               
this legislation were to pass.                                                                                                  
                                                                                                                                
2:54:32 PM                                                                                                                    
GLENN  HOSKINSON,  Deputy   Director,  Division  of  Corporations                                                               
Business  and  Professional  Licensing, Department  of  Commerce,                                                               
Community and Economic Development,  Juneau, Alaska, advised that                                                               
anyone who is advertising, offering,  or performing services that                                                               
fall under  the definition of  "construction contractor"  must be                                                               
licensed  and  this legislation  doesn't  change  that. The  only                                                               
change  SB  181 makes  is  to  allow  contractors to  show  their                                                               
website address  in lieu of  listing the required  information on                                                               
the advertisement.                                                                                                              
                                                                                                                                
2:55:22 PM                                                                                                                    
CHAIR COSTELLO opened  public testimony on SB  181; finding none,                                                               
she closed public testimony on the bill.                                                                                        
                                                                                                                                
She stated she would hold the bill for future consideration.                                                                    
                                                                                                                                
2:55:52 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:56:09 PM                                                                                                                    
CHAIR COSTELLO reconvened the meeting.                                                                                          
                                                                                                                                
2:56:12 PM                                                                                                                    
SENATOR MICCICHE  moved to report  CSSB 181(CRA), work  order 32-                                                               
LS1404\G,  from  committee  with individual  recommendations  and                                                               
attached fiscal note(s).                                                                                                        
                                                                                                                                
CHAIR COSTELLO found no objection  and CSSB 181(CRA) was reported                                                               
from the Senate Labor and Commerce Standing Committee.