SB 161: "An Act relating to an exemption from the regulation of construction contractors."

00 SENATE BILL NO. 161 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. The uncodified law of the State of Alaska is amended by adding a new section 04 to read: 05 LEGISLATIVE INTENT. It is the intent of the legislature that the exemptions listed 06 in AS 08.18.161, as amended by sec. 3 of this Act, be construed broadly in order to allow 07 individuals the freedom and ability to construct and sell their own homes based on their own 08 discretion. 09 * Sec. 2. AS 08.18.116 is amended by adding a new subsection to read: 10 (b) If an owner files a notice of the advertisement of a structure for sale or the 11 sale of a structure during the period of construction or for two years after the period of 12 construction ends under AS 08.18.161(11), the department shall investigate and take 13 appropriate action under this chapter if the notice and circumstances indicate that the 14 owner is operating a business for which the owner is required to register as a 15 contractor under this chapter.

01 * Sec. 3. AS 08.18.161 is amended to read: 02 Sec. 08.18.161. Exemptions. To the extent that this chapter governs 03 contractors, this chapter does not apply to 04 (1) an authorized representative of the United States government, the 05 State of Alaska, or a political subdivision or agency of the state; 06 (2) an officer of a court when acting within the scope of office; 07 (3) a public utility operating under the regulations of the Regulatory 08 Commission of Alaska in construction, maintenance, or development work incidental 09 to its own business; 10 (4) a construction, repair, or operation incidental to the discovering or 11 producing of petroleum or gas, or the drilling, testing, abandoning, or other operation 12 of a petroleum or gas well or a surface or underground mine or mineral deposit when 13 performed by an owner or lessee; 14 (5) the sale or installation of finished products, materials, or articles of 15 merchandise that are not actually fabricated into and do not become a permanent, 16 fixed part of a structure; 17 (6) construction, alteration, or repair of personal property; 18 (7) a person who only furnished materials, supplies, or equipment 19 without fabricating them into, or consuming them in the performance of, the work of 20 the contractor; 21 (8) [REPEALED 22 (9)] an owner who contracts for a project with a registered contractor; 23 (9) [(10)] a person working on an existing structure on that person's 24 own property, whether occupied by the person or not, and a person working on that 25 person's own existing residence, whether owned by the person or not; 26 (10) [(11)] an owner or tenant of commercial property who uses the 27 owner's or tenant's own employees to do maintenance, repair, and alteration work on 28 [UPON] that property; 29 (11) [(12)] an owner who acts as the owner's own contractor and in 30 doing so performs the work independently or hires workers or [ON AN HOURLY 31 BASIS, HIRES] subcontractors, purchases materials, and, as such, sees to the paying

01 for all labor, subcontractors, and materials; in this case, the owner shall be limited to 02 construction of one home, duplex, triplex, four-plex, or commercial building every 03 two years; an owner who advertises the structure under construction for sale or 04 sells the structure during the period of construction or within two years after the 05 period of construction ends shall file, on forms provided by the department, a 06 notice indicating that the owner is not engaged in a business for which the owner 07 is required to register as a contractor under this chapter; 08 (12) [(13)] a person performing construction work incidental to 09 farming, dairying, agriculture, horticulture, stock or poultry raising, mining, logging, 10 fishing, clearing, or other work on [UPON] the land in rural districts for fire 11 prevention purposes, or access road building, unless the person is a licensee. 12 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 APPLICABILITY. This Act applies to construction begun under AS 08.18.161(11), as 15 amended by sec. 3 of this Act, on or after the effective date of this Act. For the purposes of 16 this section, construction begins on the date that is the earlier of when the owner 17 (1) begins the actual construction work; or 18 (2) enters into an agreement with another person for the other person to 19 provide labor, to act as a subcontractor, or to provide materials for the construction.