SB 45-EXEMPTION: LICENSING OF CONTRACTORS  1:35:01 PM CHAIR COSTELLO announced the consideration of SB 45. She stated that this is the second hearing and the intent is to go over the answers to questions previously asked, take Senator Hughes' question, and move the bill from committee. 1:35:29 PM JULIANA MELIN, Staff, Senate Labor and Commerce Standing Committee, directed attention to the handout that responds to Senator Steven's request for data on the number of contractors throughout Alaska. She noted that Senator Hughes also wanted clarification about the implication of the bill for Alaskans. She deferred to Ms. Hovenden to go over the answers that were asked during the previous hearing. 1:36:37 PM JANEY HOVENDEN, Director, Division of Corporations, Business and Professional Licensing, Department of Commerce, Community and Economic Development (DCCED), Juneau, Alaska reviewed her written response to the questions that were posed during the previous hearing: 1. What is the penalty for unlicensed practice by contractors? AS 08.18.125 allows for an administrative fine of $1,000 for the first offense and $1,500 for the second or subsequent offense. 2. What is the cost to obtain a contractor's license? Application fee for initial registration or residential endorsement: $65 New license $235 Renewal license $235 3. Is it true that in 2013 almost half of the new construction home sales in the Mat-Su area were from unlicensed construction companies as claimed by the Mat-Su Home Builders Association? The division does not track the number of homes built or sold. The Department of Labor and Workforce Development reported that they conducted 315 inspections to what appeared to be new homes in Mat-Su in calendar year 2013. On 75 of those new homes, they were unable to determine who the builder was. Of the remaining 240 homes, they issued 8 Cease and Desist Orders and 7 Administrative Fines for failure to have proper licensure. Of those licensing actions, there were only three instances where the defendant was acting as an unlicensed homebuilder, the remaining were for unlicensed sub-contractors. 1:38:41 PM SENATOR HUGHES asked if a homebuilder would be cited if they failed to file the required form even though they were honestly unaware of SB 45 and the obligation it imposes on an owner/builder who has to sell his house within the timeframe set out in the bill. MS. HOVENDEN clarified that there is no penalty provision in the bill for not filling out and sending in the form. The only potential penalty would be trying to circumvent the licensure requirements. That would fall under unlicensed practice rules. SENATOR HUGHES summarized that the only time someone would be subject to a citation is if they were also found to be conducting a business without a license. MS. HOVENDEN agreed with the recap. CHAIR COSTELLO thanked Senator Hughes for bringing that forward and making it part of the public record. 1:43:17 PM SENATOR STEVENS asked if this is a state licensure issue or if local communities handle this through building codes. MS. HOVENDEN replied every municipality has its own building codes. She didn't know about municipal licensure requirements, but it is a statewide requirement to be licensed to conduct business. 1:44:05 PM SENATOR HUGHES moved to report SB 45 from committee with individual recommendations and attached fiscal note(s). CHAIR COSTELLO found no objection and announced that SB 45 was reported from the Senate Labor and Commerce Standing Committee.