HOUSE BILL NO. 81 "An Act relating to an exemption from the regulation of construction contractors." 3:14:10 PM Co-Chair Thompson relayed that the committee had not previously heard the legislation; therefore, he did not intend to report the bill from committee that day. REPRESENTATIVE CATHY TILTON, SPONSOR, spoke to the legislation. She shared that she had introduced the bill at the request of the Mat-Su Homebuilders, the Alaska Homebuilders, and the Alaska Board of Realtors. She read from a prepared statement: After speaking with some contractors, realtors, and certain individuals throughout our state, it became clear that there are individuals who are exploiting an unintended loophole in the existing statutory language. Thus creating an uneven playing field for licensed professionals who abide by the law and potentially exposing unwitting homebuyers to substandard construction. In short, HB 81 is really a consumer protection bill and is not a bill to restrict fair trade. In order to better understand HB 81 it is important to understand what it is not and what it does not do. HB 81 does not prevent Alaskans from building their own home, HB 81 does not prevent Alaskans from ever selling a home that they've built, and HB 81 does not propose a new licensure. It is not, nor was it ever my intent to do any of those things. Under current state law the licensed contractor exemption opens up a situation where an unlicensed contractor can operate a substantial business enterprise while avoiding licensure, bonding, and insurance requirements. HB 81 provides a means of notifying the department if an owner/builder sells their home before a two-year period in existing statute. The department is not required to take action on the notification, but simply is provided with the ability to see if homes were being built repeatedly by someone without a licensure. The language before you is a result of a long process of working with the Homebuilders' Association, the Department of Labor and Workforce Development, and individual Alaskans that ally concerns of subjectivity on the part of the department, while making violations to the exemption enforceable. I am certain that my fellow committee members can remember when they purchased their first home and what a financial risk that is. It's one of the biggest financial obligations that we make in our life. HB 81 helps us ensure those homebuyers that they have the expectations of a uniform standard of professionalism. HB 81 simply seeks to reasonably include all individuals engaged in home construction as a regular course of business in the existing residential contractor licensure. 3:17:40 PM Representative Gattis communicated that she had signed on as a co-sponsor during the bill's early stages. She noted that there were several things she had questions about. She shared that she had been raised in a house that had been built by her father out-of-pocket. She spoke to her mother's complaint over the years that the house had never been completed. She discussed that there were many Alaskans who built their own homes out-of-pocket and sometimes never completed the project. She referenced the two-year period in the bill. She provided an example of a family living in and building their home. She wondered what happened in the third year if the home was still under construction. She reasoned that some homes in Alaska had been under construction for 10 to 15 years. She believed the bill still had some struggles related to the timeline (i.e. when construction started, stopped, etcetera). She was supportive of the bill's purpose, but wondered at what point the house became "completed." HEATH HILYARD, STAFF, REPRESENTATIVE CATHY TILTON, answered that language had been included in the most recent bill version (Work Draft 29-LS0346\E, Strasbaugh, 3/19/15) to ensure that Alaskans were not unfairly prevented from selling their home. He addressed questions related to when a home was determined to be complete. 3:20:24 PM AT EASE 3:22:29 PM RECONVENED Co-Chair Thompson set the bill aside [to obtain the most recent CS]. HB 81 was HEARD and HELD in committee for further consideration.