00                            SENATE BILL NO. 189                                                                         
01 "An Act relating to an exemption from the regulation of construction contractors."                                      
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1. AS 08.18.161 is amended to read:                                                                      
04            Sec. 08.18.161. Exemptions. To the extent that this chapter governs                                        
05       contractors, this chapter does not apply to                                                                       
06                 (1)  an authorized representative of the United States government, the                                  
07       State of Alaska, or a political subdivision or agency of the state;                                               
08                 (2)  an officer of a court when acting within the scope of office;                                      
09                 (3)  a public utility operating under the regulations of the Regulatory                                 
10       Commission of Alaska in construction, maintenance, or development work incidental                                 
11       to its own business;                                                                                              
12                 (4)  a construction, repair, or operation incidental to the discovering or                              
13       producing of petroleum or gas, or the drilling, testing, abandoning, or other operation                           
14       of a petroleum or gas well or a surface or underground mine or mineral deposit when                               
15       performed by an owner or lessee;                                                                                  

01                 (5)  the sale or installation of finished products, materials, or articles of                           
02       merchandise that are not actually fabricated into and do not become a permanent,                                  
03       fixed part of a structure;                                                                                        
04                 (6)  construction, alteration, or repair of personal property;                                          
05                 (7)  a person who only furnished materials, supplies, or equipment                                      
06       without fabricating them into, or consuming them in the performance of, the work of                               
07       the contractor;                                                                                                   
08                 (8)  work on one project under one or more contracts, the aggregate                                     
09       contract price of which for labor and materials and all other items is less than $10,000;                         
10       this exemption does not apply when the work is only a part of a larger or major                                   
11       operation, whether undertaken by the same or a different contractor, or when the work                             
12       is divided into contracts of amounts less than $10,000 for the purpose of evasion of                              
13       this chapter or otherwise; this exemption does not apply to a person who advertises or                            
14       puts out a sign or card or other device that might indicate to the public that the person                         
15       is a contractor, or that the person is qualified to engage in the contracting business; a                         
16       contractor who performs work priced at $2,500 or more, under this exemption, shall                                
17       nevertheless keep in force public liability and property damage insurance with                                    
18       coverage in at least the amounts set out in AS 08.18.101;                                                         
19                 (9)  an owner who contracts for a project with a registered contractor;                                 
20                 (10)  a person working on that person's own property, whether occupied                                  
21       by the person or not, and a person working on that person's own residence, whether                                
22       owned by the person or not;                                                                                       
23                 (11)  an owner or tenant of commercial property who uses the owner's                                    
24       or tenant's own employees to do maintenance, repair, and alteration work upon that                                
25       property;                                                                                                         
26                 (12)  an owner who acts as the owner's own contractor and in doing so                                   
27       performs the work independently or hires workers or [ON AN HOURLY BASIS,                                  
28       HIRES] subcontractors, purchases materials, and, as such, sees to the paying for all                          
29       labor, subcontractors, and materials; in this case, the owner shall be limited to                                 
30       construction of one home, duplex, triplex, four-plex, or commercial building every                                
31       two years; the exemption in this paragraph does not apply if the structure under                              

01       construction is advertised for sale or sold during the period of construction or for                          
02       two years after the period of construction ends, unless the owner can                                         
03       demonstrate to the department's satisfaction that the sale would not result in                                
04       circumvention of the requirements under this chapter;                                                         
05                 (13)  a person performing construction work incidental to farming,                                      
06       dairying, agriculture, horticulture, stock or poultry raising, mining, logging, fishing,                          
07       clearing, or other work upon the land in rural districts for fire prevention purposes, or                         
08       access road building, unless the person is a licensee.                                                            
09    * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to                          
10 read:                                                                                                                   
11       APPLICABILITY. This Act applies to construction begun under AS 08.18.161(12), as                                  
12 amended by sec. 1 of this Act, on or after the effective date of this Act. For the purposes of                          
13 this section, construction begins on the date that is the earlier of when the owner                                     
14            (1)  begins the actual construction work; or                                                                 
15            (2)  enters into an agreement with another person for the other person to                                    
16 provide labor, to act as a subcontractor, or to provide materials for the construction.