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.