CSSB 161(L&C): "An Act relating to an exemption from the regulation of construction contractors."

00                      CS FOR SENATE BILL NO. 161(L&C)                                                                    
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 to allow individuals                            
07 the freedom and ability to construct and sell their own homes based on their own discretion.                            
08    * Sec. 2. AS 08.18.116 is amended by adding a new subsection to read:                                              
09            (b)  If an owner files a notice of the advertisement of a structure for sale or the                          
10       sale of a structure during the period of construction or for two years after the period of                        
11       construction begins under AS 08.18.161(11), the department shall investigate and take                             
12       appropriate action under this chapter if the notice and circumstances indicate that the                           
13       owner is operating a business for which the owner is required to register as a                                    
14       contractor under this chapter.                                                                                    
15    * Sec. 3. AS 08.18.161 is amended to read:                                                                         
01            Sec. 08.18.161. Exemptions. To the extent that this chapter governs                                        
02       contractors, this chapter does not apply to                                                                       
03                 (1)  an authorized representative of the United States government, the                                  
04       State of Alaska, or a political subdivision or agency of the state;                                               
05                 (2)  an officer of a court when acting within the scope of office;                                      
06                 (3)  a public utility operating under the regulations of the Regulatory                                 
07       Commission of Alaska in construction, maintenance, or development work incidental                                 
08       to its own business;                                                                                              
09                 (4)  a construction, repair, or operation incidental to the discovering or                              
10       producing of petroleum or gas, or the drilling, testing, abandoning, or other operation                           
11       of a petroleum or gas well or a surface or underground mine or mineral deposit when                               
12       performed by an owner or lessee;                                                                                  
13                 (5)  the sale or installation of finished products, materials, or articles of                           
14       merchandise that are not actually fabricated into and do not become a permanent,                                  
15       fixed part of a structure;                                                                                        
16                 (6)  construction, alteration, or repair of personal property;                                          
17                 (7)  a person who only furnished materials, supplies, or equipment                                      
18       without fabricating them into, or consuming them in the performance of, the work of                               
19       the contractor;                                                                                                   
20                 (8)  [REPEALED                                                                                          
21                 (9)]  an owner who contracts for a project with a registered contractor;                                
22                 (9) [(10)]  a person working on an existing structure on that person's                          
23       own property, whether occupied by the person or not, and a person working on that                                 
24       person's own existing residence, whether owned by the person or not;                                          
25                 (10) [(11)]  an owner or tenant of commercial property who uses the                                 
26       owner's or tenant's own employees to do maintenance, repair, and alteration work on                           
27       [UPON] that property;                                                                                             
28                 (11) [(12)]  an owner who acts as the owner's own contractor and in                                 
29       doing so performs the work independently or hires workers or [ON AN HOURLY                                
30       BASIS, HIRES] subcontractors, purchases materials, and, as such, sees to the paying                           
31       for all labor, subcontractors, and materials; in this case, the owner shall be limited to                         
01       construction of one home, duplex, triplex, four-plex, or commercial building every                                
02       two years; an owner who advertises the structure under construction for sale or                               
03       sells the structure during the period of construction or within two years after the                           
04       period of construction begins shall file, on forms provided by the department, a                              
05       notice indicating that the owner is not engaged in a business for which the owner                             
06       is required to register as a contractor under this chapter;                                                   
07                 (12) [(13)]  a person performing construction work incidental to                                    
08       farming, dairying, agriculture, horticulture, stock or poultry raising, mining, logging,                          
09       fishing, clearing, or other work on [UPON] the land in rural districts for fire                               
10       prevention purposes, or access road building, unless the person is a licensee.                                    
11    * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to                          
12 read:                                                                                                                   
13       APPLICABILITY. This Act applies to construction begun under AS 08.18.161(11), as                                  
14 amended by sec. 3 of this Act, on or after the effective date of this Act. For the purposes of                          
15 this section, construction begins on the date that is the earlier of when the owner                                     
16            (1)  begins the actual construction work; or                                                                 
17            (2)  enters into an agreement with another person for the other person to                                    
18 provide labor, to act as a subcontractor, or to provide materials for the construction.