HCS SB 193(FIN): "An Act relating to bonds required for contractors; and providing for an effective date."
00 HOUSE CS FOR SENATE BILL NO. 193(FIN) 01 "An Act relating to bonds required for contractors; and providing for an effective 02 date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 08.18.024(b) is amended to read: 05 (b) Notwithstanding (a) of this section, a specialty contractor may perform 06 work that 07 [(1)] requires the use of not more than three trades [; OR 08 (2) IS EXEMPT UNDER AS 08.18.161(8)]. 09 * Sec. 2. AS 08.18.071(b) is repealed and reenacted to read: 10 (b) The amount of the bond for a 11 (1) general contractor shall be $25,000; 12 (2) general contractor with a residential contractor endorsement under 13 AS 08.18.025 who performs exclusively residential work shall be $20,000; 14 (3) for a mechanical or specialty contractor or home inspector shall be
01 $10,000; or 02 (4) contractor whose work on one project with an aggregate contract 03 price of $10,000 or less, including all labor, materials, and other items, when the work 04 is not part of a larger or major operation or otherwise divided into contracts of less 05 than $10,000 to evade a higher bonding requirement, shall be $5,000. 06 * Sec. 3. AS 08.18.071(c) is amended to read: 07 (c) The bond required by this section remains in effect until cancelled by 08 action of the surety, the principal, or the commissioner. An action may not be 09 commenced upon the bond later than three years after its cancellation. In lieu of the 10 surety bond required by this section, the applicant may file with the 11 commissioner a cash deposit or other negotiable security acceptable to the 12 commissioner in the amount specified for bonds. 13 * Sec. 4. AS 08.18.101(a) is amended to read: 14 (a) Each applicant, at the time of applying for registration or upon renewal of 15 registration, shall file with the commissioner satisfactory evidence that the applicant 16 has in effect 17 (1) to the extent required under AS 23.30, workers' compensation 18 insurance that is purchased from a private insurer who is admitted to do business in the 19 state and that shows coverage in this state, appropriate employee classifications, and 20 rates applicable in this state, or a valid workers' compensation self-insurance 21 certificate issued by the Alaska Workers' Compensation Board; and 22 (2) public liability and property damage insurance covering the 23 applicant's contracting operations in this state in the sum of not less than $20,000 for 24 damage to property, $50,000 for injury, including death, to any one person, and 25 $100,000 for injury, including death, to more than one person; this requirement does 26 not apply to an applicant whose contracting operations are for work on projects 27 where each project has an aggregate contract price, including all labor, 28 materials, and other items of $2,500 or less. 29 * Sec. 5. AS 08.18.161(8) is repealed. 30 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 31 read:
01 APPLICABILITY. The bonding requirement in AS 08.18.071(b), as amended by sec. 02 2 of this Act, applies 03 (1) immediately to a person who is not registered as a contractor or home 04 inspector in this state under AS 08.18.011 on the effective date of this Act; and 05 (2) January 1, 2015, or upon the next renewal of the contractor's registration, 06 whichever is earlier, to a person who is registered as a contractor on the effective date of this 07 Act. 08 * Sec. 7. This Act takes effect January 1, 2015.