SB 161-EXEMPTION: LICENSING OF CONTRACTORS  1:51:00 PM CHAIR COSTELLO reconvened the meeting and announced consideration of SB 161. She relayed that this is the second hearing, public testimony is open, and there is a proposed committee substitute (CS). 1:51:27 PM JAMES SQUYRES, representing himself, Rural Deltana, Alaska, testified in opposition to SB 161. He said the bill tries to close a contractor loophole, but it has an unintended consequence. Many people living in rural areas build their own homes and move in before they are finished. Should SB 161 pass, an owner/builder who wants or needs to sell within the two-year timeframe would have to demonstrate to the department's satisfaction that they are not a contractor. He described this new burden as a liberty bite. He maintained the bill does not fix the problem; it does unintentionally affect one man's liberty; and it will impact state finances. He suggested the bill needs a fiscal note because new regulations and enforcement will be needed. He mentioned previous versions of the bill and claimed that it keeps coming up because of the contractor's lobby that tenaciously chips away at the people. He urged the committee to hold SB 161. CHAIR COSTELLO told the committee that SB 161 is different than the versions just described. Additionally, the committee substitute clarifies the two-year timeframe and the period of construction. 1:56:03 PM PAM GOODE, representing herself, Rural Deltana, Alaska, testified in opposition to SB 161. She said this is the third year in a row she has had to testify against this bill. She noted this is a Labor and Commerce Committee bill and listed entities that may be pushing it. She maintained that the people of Alaska should not have to file anything with the state in order to sell their homes. It goes against an individual right. She urged the committee to hold SB 161. 1:58:44 PM RICHARD CARR, BEMA Construction, Wasilla, Alaska, testified in support of SB 161. He said he is a homebuilder who specializes in disaster restoration and remodeling so he has a better perspective than most about the need for this legislation. He frequently receives calls from homeowners who are upset and heartbroken that their new home has faulty plumbing or electrical breakers that keep tripping. Sometimes the homeowner is unable to find out who built the home. SB 161 does not prohibit someone from building their own home, but it will impede unscrupulous builders and protect Alaska consumers. 2:00:31 PM CHAIR COSTELLO closed public testimony on SB 161 and solicited a motion to adopt the committee substitute (CS). SENATOR GIESSEL moved to adopt the CS for SB 161, labeled 29- LS1319\W as working document. CHAIR COSTELLO objected for an explanation of the changes. WESTON EILER, Staff, Senate Labor and Commerce Standing Committee and Senator Costello, explained that the CS replaces the term "ends" with "begins" in two places. These appear on page 1, line 11 and page 3, line 4, of the CS. The consensus of the Department of Commerce, Community and Economic Development and stakeholders is that two years after construction ends is a more nebulous timeframe than two years after construction begins. The practical implication is that the two year clock begins when the foundation and footings of a residential structure are put in place. CHAIR COSTELLO asked if an owner/builder would be affected by the bill if it takes him/her four years from the beginning to the end of construction. MR. EILER answered no; it only affects individuals who build a home and advertise to sell it within two years of the start of construction. In that situation, the individual would be required to file a form to satisfy the department that they are not a contractor. The intent is to provide oversight of individuals who are taking advantage of the owner/builder exemption provided in state law. CHAIR COSTELLO asked why there is no fiscal note. MR. EILER explained that DCCED issued a zero fiscal note because they don't anticipate that processing the forms that owner/builders file will have a fiscal impact. CHAIR COSTELLO asked him to speak to the public value the bill intends to promote. MR. EILER explained that this is a consumer protection bill for those who are buying homes in Alaska. The legislative intent is to maintain the owner/builder exemption while ensuring that individuals that should have a contractor license aren't able to take advantage of the exemption. CHAIR COSTELLO removed her objection to the adoption of the CS and solicited a motion. SENATOR GIESSEL moved to report the CS for SB 161, labeled 29- LS1319\W, from committee with individual recommendations and attached zero fiscal note. CHAIR COSTELLO announced that without objection, CSSB 161(L&C) is reported from the Senate Labor and Commerce Standing Committee.