00 CS FOR HOUSE BILL NO. 9(L&C) 01 "An Act relating to the registration of individuals who perform home inspections; 02 relating to regulation of contractors; relating to registration fees for specialty 03 contractors, home inspectors, and associate home inspectors; relating to home inspection 04 requirements for residential loans purchased or approved by the Alaska Housing 05 Finance Corporation; relating to civil actions by and against home inspectors and to 06 civil actions arising from residential unit inspections; and providing for an effective 07 date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09  * Section 1. AS 08.01.010(12) is amended to read: 10 (12) regulation of construction contractors and home inspectors under 11 AS 08.18; 12  * Sec. 2. AS 08.01.065(c) is amended to read: 13 (c) Except as provided in (f) - (i) [(f) - (h)] of this section, the department shall 01 establish fee levels under (a) of this section so that the total amount of fees collected 02 for an occupation approximately equals the actual regulatory costs for the occupation. 03 The department shall annually review each fee level to determine whether the 04 regulatory costs of each occupation are approximately equal to fee collections related 05 to that occupation. If the review indicates that an occupation's fee collections and 06 regulatory costs are not approximately equal, the department shall calculate fee 07 adjustments and adopt regulations under (a) of this section to implement the 08 adjustments. In January of each year, the department shall report on all fee levels and 09 revisions for the previous year under this subsection to the office of management and 10 budget. If a board regulates an occupation covered by this chapter, the department 11 shall consider the board's recommendations concerning the occupation's fee levels and 12 regulatory costs before revising fee schedules to comply with this subsection. In this 13 subsection, "regulatory costs" means costs of the department that are attributable to 14 regulation of an occupation plus 15 (1) all expenses of the board that regulates the occupation if the board 16 regulates only one occupation; 17 (2) the expenses of a board that are attributable to the occupation if the 18 board regulates more than one occupation. 19  * Sec. 3. AS 08.01.065 is amended by adding a new subsection to read: 20 (i) Notwithstanding (c) of this section, the department shall establish fee levels 21 under (a) of this section so that the total amount of fees collected by the Department of 22 Community and Economic Development for specialty contractors, home inspectors, 23 and associate home inspectors approximately equals the total regulatory costs of the 24 department for those three registration categories. The department shall set the fee 25 levels for the issuance and renewal of a certificate of registration issued under 26 AS 08.18 so that the fee levels are the same for all three of these registration 27 categories and so that the fee level for a home inspector with a joint registration is not 28 different from the fee level for a home inspector who does not have a joint 29 registration. In this subsection, "joint registration" has the meaning given in 30 AS 08.18.171. 31  * Sec. 4. AS 08.18.011 is amended to read: 01 Sec. 08.18.011. Registration required. (a) A person may not submit a bid or 02 work as a contractor until that person has been issued a certificate of registration as a  03 contractor by the department. A partnership or joint venture shall be considered 04 registered as a contractor if one of the general partners or venturers whose name 05 appears in the name under which the partnership or venture does business is registered 06 as a contractor. 07 (b) A general contractor may not use a bid or proposal from, award a bid or 08 proposal to, contract with, or allow a person required to be registered under this 09 chapter to work for the general contractor as a specialty contractor unless the person is 10 registered as a specialty contractor under this chapter. 11  * Sec. 5. AS 08.18.011 is amended by adding new subsections to read: 12 (c) Unless exempt under AS 08.18.156 or serving lawfully as an associate 13 home inspector under (d) of this section, an individual may not perform a home 14 inspection 15 (1) for a residence not previously occupied as a residence unless that 16 individual is registered as a home inspector for new homes under this chapter; 17 (2) for a residence previously occupied as a residence unless that 18 individual is registered as a home inspector for existing homes under this chapter. 19 (d) Notwithstanding (c) of this section, an individual who is not registered as a 20 home inspector under this chapter may perform a home inspection as an associate 21 home inspector if the individual 22 (1) is employed by a registered home inspector who supervises the 23 associate's work and the inspection is of the type that the supervising individual is 24 authorized to perform; and 25 (2) is registered with the department as an associate home inspector. 26 (e) A registered home inspector who employs an associate home inspector 27 under (d) of this section is liable for the work done by the associate home inspector. 28 (f) An individual who holds a joint registration for home inspection is 29 considered to be registered as both a home inspector for new homes and a home 30 inspector for existing homes. 31  * Sec. 6. AS 08.18.021(a) is amended to read: 01 (a) An applicant for registration as a contractor or home inspector shall 02 submit an application under oath upon a form to be prescribed by the commissioner 03 and that [WHICH] must include the following information pertaining to the applicant: 04 (1) the applicant's [EMPLOYER] social security number; 05 (2) if applying to be a registered contractor, the type of contracting 06 activity, whether a general or a specialty contractor and, if the latter, the type of 07 specialty; 08 (3) if applying to be a registered home inspector, whether the  09 applicant is applying to inspect new homes or existing homes, or both;  10 (4) if applying to be a registered contractor, the name and address of 11 each partner if the applicant is a firm or partnership, or the name and address of the 12 owner if the applicant is an individual proprietorship, or the name and address of the 13 corporate officers and statutory agent, if any, if the applicant is a corporation; and  14 (5) if applying to be a registered home inspector, the name and  15 address of the applicant. 16  * Sec. 7. AS 08.18 is amended by adding new sections to read: 17 Sec. 08.18.022. Home inspectors; associate home inspectors. (a) The 18 department shall issue a certificate of registration as a home inspector for new homes, 19 existing homes, or both, as appropriate, to an individual who 20 (1) passes the appropriate home inspection examination; for purposes 21 of this paragraph, the appropriate home inspection examination for an individual who 22 applies to be registered for inspection of 23 (A) existing homes is the examination offered by the American 24 Society of Home Inspectors, American Home Inspectors Training Institute, or 25 National Association of Home Inspectors; 26 (B) new homes or for a joint registration is the examination 27 offered by the International Conference of Building Officials; 28 (2) meets the educational and experience requirements adopted by the 29 department in regulations for the type of registration applied for; 30 (3) submits a complete application for registration within one year 31 after passing the examination required under (1) of this subsection; 01 (4) within the seven years preceding the date of application, has not 02 been under a sentence for an offense related to forgery, theft in the first or second 03 degree, extortion, or defrauding creditors or for a felony involving dishonesty; 04 (5) has not had the authority to perform home inspections revoked in 05 this state or in another jurisdiction; 06 (6) is not the subject of an unresolved criminal complaint or 07 unresolved disciplinary action before a regulatory authority in this state or in another 08 jurisdiction related to real estate or home inspection matters; and 09 (7) pays the appropriate fees. 10 (b) An individual may register with the department as an associate home 11 inspector upon application, payment of the required fee, and determination by the 12 department that the individual 13 (1) within the seven years preceding the date of application, has not 14 been under a sentence for an offense related to forgery, theft in the first or second 15 degree, extortion, or defrauding creditors or for a felony involving dishonesty; 16 (2) has not had the authority to perform home inspections revoked in 17 this state or in another jurisdiction; and 18 (3) is not the subject of an unresolved criminal complaint or 19 unresolved disciplinary action before a regulatory authority in this state or in another 20 jurisdiction related to real estate or home inspection matters. 21 Sec. 08.18.023. Pre-inspection documents and inspection reports. (a) 22 Before performing a home inspection, a registered home inspector or associate home 23 inspector shall provide to the person on whose behalf a home is inspected a written 24 document specifying 25 (1) the scope of intended inspection; the scope of the intended 26 inspection may include systems and components that are not listed in 27 AS 08.18.171(12); and 28 (2) that the inspector will notify in writing the person on whose behalf 29 the inspection is being made of defects noted during the inspection along with a 30 recommendation, if any, that experts be retained to conduct further evaluation through 31 examination and analysis by a qualified professional, tradesperson, or service 01 technician beyond that provided by the home inspection to determine the extent of 02 defects and corrective action necessary to address the defects. 03 (b) After performance of a home inspection, a registered home inspector or 04 associate home inspector shall give a written home inspection report to the person 05 requesting the inspection. The written report must include a review of the condition of 06 each system and component identified as being within the scope of the intended 07 inspection under (a) of this section. 08 (c) In addition to the written inspection report required under (b) of this 09 section, an oral inspection report may be given by the inspector during or after the 10 inspection. 11 (d) A home inspection report is valid for 180 days after the date the home 12 inspector signs and dates the report. 13  * Sec. 8. AS 08.18.031(a) is amended to read: 14 (a) Except as provided in (c) of this section, a [A] certificate of registration 15 shall be renewed under the same requirements as for an original registration, and the 16 [. THE] commissioner shall issue to the applicant a certificate of registration upon 17 compliance with the registration requirements of this chapter. 18  * Sec. 9. AS 08.18.031 is amended by adding a new subsection to read: 19 (c) A certificate of registration as a home inspector may not be renewed unless 20 the home inspector has complied with the continuing competency requirements 21 established by the department. The department shall adopt regulations establishing the 22 continuing competency requirements. The department shall require at least eight 23 hours of continuing competency activity for each licensing period. The regulations 24 must provide that a continuing competency activity approved by one of the following 25 entities satisfies the continuing competency requirements of this subsection if the 26 activity meets the requirements established by the department in regulations adopted 27 under this subsection: 28 (1) Alaska Housing Finance Corporation; 29 (2) University of Alaska; 30 (3) American Society of Home Inspectors Alaska Chapter; 31 (4) a chapter of the International Conference of Building Officials 01 Alaska; 02 (5) Alaska State Homebuilders Association; or 03 (6) a state agency that offers an activity that meets the requirements set 04 by the department. 05  * Sec. 10. AS 08.18.041 is amended to read: 06 Sec. 08.18.041. Fees. (a) The department shall set fees under AS 08.01.065 07 for 08 (1) registration and renewal of registration for all categories of 09 contractors; 10 (2) registration and renewal of registration for a home inspector  11 qualified to inspect new homes;  12 (3) registration and renewal of registration for a home inspector  13 qualified to inspect existing homes;  14 (4) joint registration and renewal of joint registration for home  15 inspectors;  16 (5) registration and renewal of registration as an associate home  17 inspector;  18 (6) examinations for applicants for home inspector registration;  19 (7) examination, issuance of initial endorsement, and renewal of active 20 or inactive endorsements for residential contractors; and 21 (8) [(3)] departmental publications and seminars related to this chapter. 22 (b) A person who fails a residential contractor examination or home  23 inspector examination shall pay the examination fee set by the department if the 24 person applies to retake an examination. 25  * Sec. 11. AS 08.18.051(a) is amended to read: 26 (a) Except as provided otherwise by law, a person who has registered as a  27 contractor under one name as required by this chapter may not act in the capacity of a 28 contractor under any other name unless that name also is registered. 29  * Sec. 12. AS 08.18 is amended by adding a new section to read: 30 Sec. 08.18.053. Identification requirements for home inspectors. (a) 31 Except as provided otherwise by law, an individual who is registered as a home 01 inspector or associate home inspector under this chapter by one name may not act in 02 the capacity of a home inspector or associate home inspector under any other name. 03 (b) All advertising and business cards prepared by a registered home inspector 04 or associate home inspector for the home inspection business must show the 05 inspector's name, mailing address, and registration number. 06 (c) Individual registered home inspectors and partners, associates, agents, 07 salespeople, solicitors, officers, and employees of registered home inspectors shall use 08 their true names and addresses and the true name of the home inspecting firm at all 09 times while acting in the capacity of a registered home inspector or performing related 10 activities. 11 (d) Individuals who are exempt from registration under AS 08.18.156(a) or 12 whose actions are not considered to be home inspections under AS 08.18.156(b) may 13 not hold themselves out to be registered home inspectors or use words or titles that 14 may reasonably be confused with the title of "registered home inspector" unless they 15 are registered as a home inspector under this chapter. 16  * Sec. 13. AS 08.18.061 is amended to read: 17 Sec. 08.18.061. Requirements of political subdivision. A contractor or  18 home inspector who is registered with the state under this chapter may not be 19 required to give bond in applying for or holding a license issued by a political 20 subdivision for a similar occupation. 21  * Sec. 14. AS 08.18.071(a) is amended to read: 22 (a) Each applicant shall, at the time of applying for a certificate of registration, 23 file with the commissioner a surety bond running to the state conditioned upon the 24 applicant's promise to pay all 25 (1) taxes and contributions due the state and political subdivisions; 26 (2) persons furnishing labor or material or renting or supplying 27 equipment to the applicant; and 28 (3) amounts that may be adjudged against the applicant by reason of 29 negligent or improper work or breach of contract in the conduct of the contracting 30 business or home inspection activity, as applicable, or by reason of damage to 31 public facilities occurring in the course of a construction project. 01  * Sec. 15. AS 08.18.071(b) is amended to read: 02 (b) If the applicant is a general contractor, the amount of the bond shall be 03 $10,000; if the applicant is a mechanical or specialty contractor or home inspector, 04 the amount of the bond shall be $5,000. In lieu of the surety bond the applicant may 05 file with the commissioner a cash deposit or other negotiable security acceptable to the 06 commissioner in the amount specified for bonds. 07  * Sec. 16. AS 08.18.081(a) is amended to read: 08 (a) Except as provided in AS 08.18.085, a [A] person having a claim against 09 a contractor or home inspector for any of the items referred to in AS 08.18.071 may 10 bring suit upon the bond in the district court of the judicial district in which venue lies. 11 A copy of the complaint shall be served by registered or certified mail upon the 12 commissioner at the time suit is filed, and the commissioner shall maintain a record, 13 available for public inspection, of all suits commenced. Two additional copies shall 14 be served upon the director of the division of insurance with the payment to the 15 director of a fee set under AS 21.06.250, taxable as costs in the action. This service 16 upon the director shall constitute service on the surety, and the director shall transmit 17 the complaint or a copy of it to the surety within 72 hours after it has been received. 18 The surety upon the bond is not liable in an aggregate amount in excess of that named 19 in the bond, but in case claims pending at any one time exceed the amount of the bond, 20 the claims shall be satisfied from the bond in the following order: 21 (1) labor, including employee benefits; 22 (2) taxes and contributions due the state, city, and borough, in that 23 order; 24 (3) material and equipment; 25 (4) claims for breach of contract; 26 (5) repair of public facilities. 27  * Sec. 17. AS 08.18 is amended by adding a new section to read: 28 Sec. 08.18.085. Legal actions against home inspector.  (a) Notwithstanding 29 contrary provisions of AS 08.18.081 or AS 09.10, a person may not bring an action 30 against an individual registered under this chapter based on a home inspection report 31 unless the action is commenced within 01 (1) two years after the date of the home inspection report if the report 02 related to a new home; and 03 (2) one year after the date of the home inspection report if the report 04 related to an existing home. 05 (b) The limitations in (a) of this section apply to all actions based on a home 06 inspection report, regardless of whether the action is based on breach of contract, 07 personal injury or death, property damage, or another source of liability. The 08 limitations may not be waived by contract. 09 (c) An individual registered as a home inspector or associate home inspector 10 under this chapter is not liable to a person for damages that arise from an act or 11 omission relating to a home inspection performed by the individual if the person is 12 (1) not a party to the transaction for which the home inspection was 13 conducted; or 14 (2) unlawfully in receipt of the home inspection report related to the 15 home inspection. 16 (d) Contractual provisions that purport to limit the liability of a home 17 inspector to the cost of the home inspection report are contrary to public policy and 18 void. 19  * Sec. 18. AS 08.18.111 is amended to read: 20 Sec. 08.18.111. Advertising bond and insurance. Contractors and home  21 inspectors may not advertise that they are bonded and insured simply because they 22 have complied with the bond and insurance requirements of this chapter. 23  * Sec. 19. AS 08.18.115 is amended to read: 24 Sec. 08.18.115. Return of cash deposit. (a) A contractor or home inspector 25 who has filed a cash deposit and who ceases doing business as a contractor or home  26 inspector may request the return of as much of that cash deposit as is held by the 27 commissioner by 28 (1) filing a notarized statement with the commissioner that the 29 contractor or home inspector has ceased doing business as a contractor or home  30 inspector, as applicable; and 31 (2) filing a notarized statement with the commissioner at least three 01 years after filing the statement in (1) of this subsection that [WHICH] 02 (A) requests return of the cash deposit; 03 (B) certifies that the former contractor or home inspector has 04 not been engaged in business as a contractor or home inspector, as  05 applicable, for at least three years; and 06 (C) certifies that to the best of the contractor's or home  07 inspector's knowledge no action has been commenced upon the cash deposit 08 that [WHICH] has not been dismissed or reduced to a final judgment that 09 [WHICH] has been satisfied. 10 (b) The commissioner, after paying any judgments against the cash deposit 11 under AS 08.18.081(b), shall return the remainder of a former contractor's or former  12 home inspector's cash deposit to the contractor or home inspector, as applicable, if 13 (1) the former contractor or former home inspector has complied 14 with (a) of this section; and 15 (2) no action has been commenced upon the cash deposit that 16 [WHICH] has not been dismissed or reduced to a final judgment that [WHICH] has 17 been satisfied. 18  * Sec. 20. AS 08.18.116 is amended to read: 19 Sec. 08.18.116. Investigations. Either the Department of Community and 20 Economic Development or the Department of Labor and Workforce Development 21 may investigate alleged or apparent violations of this chapter relating to contractors.  22 The Department of Community and Economic Development may investigate  23 alleged or apparent violations of this chapter relating to home inspection  24 activities. These departments, upon showing proper credentials, may enter, during 25 regular hours of work, a construction site where it appears that contracting work is 26 being done. The departments may make inquiries about the identity of the contractor 27 or the person acting in the capacity of a contractor. The Department of Community  28 and Economic Development may make inquiries about the identity of a home  29 inspector or a person acting in the capacity of a home inspector. Upon demand, a 30 contractor or home inspector or person acting in the capacity of a contractor or home  31 inspector, or that person's representative, shall produce evidence of current 01 endorsement, if applicable, and registration. 02  * Sec. 21. AS 08.18.117 is amended to read: 03 Sec. 08.18.117. Issuance of citations. Either the Department of Community 04 and Economic Development or the Department of Labor and Workforce Development 05 may issue a citation for a violation if there is probable cause to believe a person has 06 violated this chapter with respect to contractor activities. The Department of  07 Community and Economic Development may issue a citation for a violation if  08 there is probable cause to believe a person has violated this chapter with respect  09 to home inspection activities. Each day a violation continues after a citation for the 10 violation has been issued constitutes a separate violation. 11  * Sec. 22. AS 08.18.121(a) is amended to read: 12 (a) If the insurance required in AS 08.18.101 ceases to be in effect, the 13 registration of the contractor or home inspector shall be suspended until the insurance 14 has been reinstated. 15  * Sec. 23. AS 08.18.121(b) is amended to read: 16 (b) If a final judgment impairs the liability of the surety upon the bond or 17 depletes the cash deposit so that there is not in effect a bond undertaking or cash 18 deposit in the full amount prescribed in AS 08.18.071, the registration of the 19 contractor or home inspector involved shall be suspended until the bond liability in 20 the required amount, unimpaired by unsatisfied judgment claims, has been furnished. 21  * Sec. 24. AS 08.18.121(c) is amended to read: 22 (c) If a bonding company cancels its bond of a contractor or home inspector, 23 the contractor's or home inspector's registration shall be revoked. The contractor or  24 home inspector may again obtain registration by complying with the requirements of 25 this chapter. 26  * Sec. 25. AS 08.18.121(d) is amended to read: 27 (d) If a registered contractor or registered home inspector fails to fulfill the 28 contractor's or home inspector's obligations as set out in AS 08.18.071, the 29 contractor's or home inspector's registration shall be suspended for a period of time 30 the commissioner determines is appropriate. After three suspensions, the contractor's 31 or home inspector's registration may be permanently revoked. 01  * Sec. 26. AS 08.18.121(f) is amended to read: 02 (f) If the Department of Community and Economic Development or the 03 Department of Labor and Workforce Development determines that a contractor or [A] 04 person acting in the capacity of a contractor [,] is in violation of this chapter, that 05 department may give written notice to the person prohibiting further action by the 06 person as a contractor. If the Department of Community and Economic  07 Development determines that a home inspector or a person acting in the capacity  08 of a home inspector is in violation of this chapter, the department may give  09 written notice to the person prohibiting further action by the person as a home  10 inspector. The prohibition in a notice given under this subsection continues until 11 the person has submitted evidence acceptable to the appropriate [THAT] department 12 showing that the violation has been corrected. 13  * Sec. 27. AS 08.18.131 is amended to read: 14 Sec. 08.18.131. Injunction; civil penalty. In an action instituted in the 15 superior court by the Department of Community and Economic Development or the 16 Department of Labor and Workforce Development, the court may enjoin a person 17 from acting in the capacity of a contractor in violation of this chapter. In an action  18 instituted in the superior court by the Department of Community and Economic  19 Development, the court may enjoin a person from acting in the capacity of a  20 home inspector in violation of this chapter. In addition to other relief, the court may 21 impose a civil penalty of not more than $250 for each violation. Each day that an 22 unlawful act continues constitutes a separate violation. 23  * Sec. 28. AS 08.18.141(a) is amended to read: 24 (a) A contractor, home inspector, or [A] person acting in the capacity of a 25 contractor or home inspector who knowingly violates AS 08.18.011 or 08.18.025 is 26 guilty of a class B misdemeanor. A person who violates another provision of this 27 chapter is guilty of a violation punishable under AS 12. 28  * Sec. 29. AS 08.18.151 is amended to read: 29 Sec. 08.18.151. Legal actions by contractor or home inspector. A person 30 acting in the capacity of a contractor or home inspector may not bring an action in a 31 court of this state for the collection of compensation for the performance of work or 01 for breach of a contract for which registration is required under this chapter without 02 alleging and proving that the contractor or home inspector was a registered contractor 03 or registered home inspector, as applicable, at the time of contracting for the 04 performance of the work. 05  * Sec. 30. AS 08.18 is amended by adding new sections to article 4 to read: 06 Sec. 08.18.152. Prohibited acts for home inspectors. An individual 07 registered under this chapter as a home inspector or associate home inspector may not 08 (1) perform or offer to perform, for an additional fee, repairs to a 09 subject property on which the home inspector or the home inspector's company has 10 prepared a home inspection report in the past 12 months; 11 (2) inspect for a fee any property in which the home inspector or the 12 home inspector's company has a financial interest or an interest in the transfer of the 13 property; 14 (3) offer or deliver compensation, an inducement, or a reward to the 15 owner of the inspected property, the broker, or the agent, for the referral of business to 16 the home inspector or the home inspector's company; 17 (4) without the written consent of the home inspection client or the 18 client's legal representative, disclose information from a home inspection report 19 prepared by the home inspector or the home inspector's company unless the disclosure 20 is made 21 (A) to a subsequent client who requests a home inspection of 22 the same premises; or 23 (B) by the home inspector in an administrative or judicial 24 proceeding in which disclosure of the home inspection report is relevant to 25 resolution of the legal issues in the proceeding; 26 (5) without the written consent of all interested parties, accept 27 compensation from more than one interested party for the same home inspection 28 services; 29 (6) accept from a person who has other dealings with a home 30 inspection client a commission or allowance, directly or indirectly, for work for which 31 the home inspector or the home inspector's company is responsible; 01 (7) accept an engagement to make an inspection or to prepare a report 02 in which the employment itself or the fee payable for the inspection is contingent upon 03 the conclusions in the report, preestablished findings, or the close of escrow. 04 Sec. 08.18.154. Limitation on home inspector's activities. A registration 05 issued under AS 08.18.022 does not authorize the holder to perform an activity for 06 which a license is required under provisions of this title that are outside of this chapter. 07 Sec. 08.18.156. Exemptions related to home inspections. (a) 08 Notwithstanding other provisions of this chapter, an individual who inspects a home is 09 not required to be registered under this chapter as a home inspector or associate home 10 inspector if the individual is 11 (1) employed by the federal or state government, a political 12 subdivision of the state, or a municipality or unincorporated community and the 13 employee is performing only duties that are within the employee's official duties; 14 (2) performing a home inspection only with respect to property that is 15 the individual's residence or in which the individual has a financial interest; 16 (3) registered as an engineer or architect under AS 08.48, prepares a 17 written report after the inspection, affixes the individual's seal to the home inspection 18 report, signs and dates the report, and puts the individual's registration number on the 19 report; 20 (4) engaged as an engineer in training or architect in training who 21 works for and is supervised by a person described in (3) of this subsection and the 22 person described in (3) of this subsection affixes the person's seal to the home 23 inspection report, signs and dates the report, and puts the person's registration number 24 on the report; 25 (5) licensed as a pesticide applicator by the Department of 26 Environmental Conservation and is performing only activities within the scope of that 27 license; 28 (6) registered as a general contractor with a residential contractor 29 endorsement under this chapter and is performing only activities within the scope of 30 that registration; 31 (7) certified as any type of real estate appraiser under AS 08.87 and is 01 performing only activities that are authorized under that certification; or 02 (8) only determining whether a building complies with the thermal and 03 lighting energy standards required by AS 46.11.040. 04 (b) Notwithstanding the definition of "home inspection" in AS 08.18.171(12), 05 an individual is not considered to be doing a home inspection for purposes of this 06 chapter if the individual 07 (1) is in the business of repairing, maintaining, or installing any of the 08 systems or components listed in AS 08.18.171(12); and 09 (2) inspects the system or component for the sole purpose of 10 determining the condition of the system or component before performing or offering 11 to perform repair, maintenance, or installation work on the system or component. 12  * Sec. 31. AS 08.18.161 is amended to read: 13 Sec. 08.18.161. Exemptions. To the extent that this chapter governs  14 contractors, this [THIS] chapter does not apply to 15 (1) an authorized representative of the United States government, the 16 State of Alaska, or a political subdivision or agency of the state; 17 (2) an officer of a court when acting within the scope of office; 18 (3) a public utility operating under the regulations of the public service 19 commission in construction, maintenance, or development work incidental to its own 20 business; 21 (4) a construction, repair, or operation incidental to the discovering or 22 producing of petroleum or gas, or the drilling, testing, abandoning, or other operation 23 of a petroleum or gas well or a surface or underground mine or mineral deposit when 24 performed by an owner or lessee; 25 (5) the sale or installation of finished products, materials, or articles of 26 merchandise that are not actually fabricated into and do not become a permanent, 27 fixed part of a structure; 28 (6) construction, alteration, or repair of personal property; 29 (7) a person who only furnished materials, supplies, or equipment 30 without fabricating them into, or consuming them in the performance of, the work of 31 the contractor; 01 (8) work on one project under one or more contracts, the aggregate 02 contract price of which for labor and materials and all other items is less than $10,000 03 [, THIS WORK BEING CONSIDERED AS OF A CASUAL, MINOR, OR 04 INCONSEQUENTIAL NATURE]; this exemption does not apply when the work is 05 only a part of a larger or major operation, whether undertaken by the same or a 06 different contractor, or when the work is divided into contracts of amounts less than 07 $10,000 for the purpose of evasion of this chapter or otherwise; this exemption does 08 not apply to a person who advertises or puts out a sign or card or other device that 09 might indicate to the public that the person is a contractor, or that the person is 10 qualified to engage in the contracting business; a contractor who performs work priced 11 at $2,500 or more, under this exemption, shall nevertheless keep in force public 12 liability and property damage insurance with coverage in at least the amounts set out 13 in AS 08.18.101; 14 (9) an owner who contracts for a project with a registered contractor; 15 (10) a person working on that person's own property, whether occupied 16 by the person or not, and a person working on that person's own residence, whether 17 owned by the person or not; 18 (11) an owner or tenant of commercial property who uses the owner's 19 or tenant's own employees to do maintenance, repair, and alteration work upon that 20 property; 21 (12) an owner who acts as the owner's own contractor and in doing so 22 hires workers on an hourly basis, hires subcontractors, purchases materials and, as 23 such, sees to the paying for all labor, subcontractors, and materials; in this case, the 24 owner shall be limited to construction of one home, duplex, triplex, four-plex, or one 25 commercial building a [PER] year; 26 (13) a person performing construction work incidental to farming, 27 dairying, agriculture, horticulture, stock or poultry raising, mining, logging, fishing, 28 clearing, or other work upon the land in rural districts for fire prevention purposes, or 29 access road building, unless the person is a licensee. 30  * Sec. 32. AS 08.18.171 is amended by adding new paragraphs to read: 31 (11) "existing home" means a residence previously occupied as a 01 residence; 02 (12) "home inspection" means a visual examination, performed in 03 accordance with standards of practice adopted by the department, of the readily 04 accessible parts of one or more of the following systems and components of a 05 residence or intended residence: 06 (A) heating and air-conditioning systems; 07 (B) plumbing and electrical systems; 08 (C) built-in appliances; 09 (D) roof, attic, and visible insulation; 10 (E) walls, ceilings, floors, windows, and doors; 11 (F) foundation and basement; 12 (G) visible interior and exterior structures; 13 (H) drainage to and from the residence; 14 (I) other systems or components as specified by the department 15 in regulations; 16 (13) "home inspector" means an individual who performs or offers to 17 perform a home inspection for a fee; 18 (14) "joint registration" means a certificate of registration that 19 authorizes an individual to inspect both new homes and existing homes; 20 (15) "knowingly" has the meaning given in AS 11.81.900; 21 (16) "new home" means a residence not previously occupied as a 22 residence; 23 (17) "residence" means 24 (A) a single-family home other than a mobile home; 25 (B) a duplex, triplex, or four-plex; or 26 (C) a residential townhouse or residential condominium unit; 27 (18) "visual examination" means an examination performed in person 28 at the physical location of the residence except that, if a method other than personal 29 physical inspection has been approved by the Alaska Housing Finance Corporation 30 under AS 18.56.300(b), use of the other approved method constitutes a visual 31 examination under this chapter. 01 * Sec. 33. AS 18.56.300(b) is amended to read: 02 (b) As a condition of a commitment to purchase or approve a loan under this 03 section for residential housing the construction of which begins after June 30, 1992, 04 the corporation shall require inspection of the unit of residential housing that is the 05 subject of the loan. The inspection must be performed by a municipal building 06 inspector, by a person who is approved or certified to perform residential inspections 07 by the International Conference of Building Officials or the International Association 08 of Electrical Inspectors, by an individual who is registered under AS 08.18 to  09 perform home inspections for new construction [OR, WHEN THE UNIT OF 10 RESIDENTIAL HOUSING IS LOCATED IN A RURAL AREA], by an architect 11 registered under AS 08.48, by an engineer registered under AS 08.48, or by another 12 person approved by the corporation. When the unit of residential housing is located in 13 a rural area, the person who makes the inspection may use methods other than a 14 personal physical inspection to make the inspection if the method is approved by the 15 corporation, and variations from the applicable code may be accepted at the 16 corporation's discretion, if the person authorized to inspect the unit under this 17 subsection satisfies the corporation that the variation does not adversely affect the 18 structural integrity of the unit or the health and safety of the residents. The person 19 who makes the inspection shall determine whether the construction conforms to 20 relevant provisions of the construction codes of the municipality or of the state 21 building code, as applicable, at each of the following stages of construction: 22 (1) plan approval; 23 (2) completion of footings and foundations; 24 (3) completion of electrical installation, plumbing, and framing; 25 (4) completion of installation of insulation; 26 (5) final approval. 27 * Sec. 34. AS 18.56.300(b) is amended to read: 28 (b) As a condition of a commitment to purchase or approve a loan under this 29 section for residential housing the construction of which begins after June 30, 1992, 30 the corporation shall require inspection of the unit of residential housing that is the 31 subject of the loan. The inspection must be performed by a municipal building 01 inspector, [BY A PERSON WHO IS APPROVED OR CERTIFIED TO PERFORM 02 RESIDENTIAL INSPECTIONS BY THE INTERNATIONAL CONFERENCE OF 03 BUILDING OFFICIALS OR THE INTERNATIONAL ASSOCIATION OF 04 ELECTRICAL INSPECTORS,] by an individual who is registered under AS 08.18 to 05 perform home inspections for new construction, by an architect registered under 06 AS 08.48, by an engineer registered under AS 08.48, or by another person approved 07 by the corporation. When the unit of residential housing is located in a rural area, the 08 person who makes the inspection may use methods other than a personal physical 09 inspection to make the inspection if the method is approved by the corporation, and 10 variations from the applicable code may be accepted at the corporation's discretion, if 11 the person authorized to inspect the unit under this subsection satisfies the corporation 12 that the variation does not adversely affect the structural integrity of the unit or the 13 health and safety of the residents. The person who makes the inspection shall 14 determine whether the construction conforms to relevant provisions of the 15 construction codes of the municipality or of the state building code, as applicable, at 16 each of the following stages of construction: 17 (1) plan approval; 18 (2) completion of footings and foundations; 19 (3) completion of electrical installation, plumbing, and framing; 20 (4) completion of installation of insulation; 21 (5) final approval. 22  * Sec. 35. AS 36.30.050(b) is amended to read: 23 (b) A person who desires to be on a list shall submit to the commissioner 24 evidence of a valid Alaska business license. A biennial fee may be established by 25 regulation in an amount reasonably calculated to pay the costs of administering this 26 section. A construction contractor shall also submit a valid certificate of registration 27 as a contractor issued under AS 08.18. The commissioner, by regulation, may require 28 submission of additional information. 29  * Sec. 36. AS 36.30.115(a) is amended to read: 30 (a) Within five working days after the identification of the apparent low bidder 31 for a construction contract, the apparent low bidder shall submit a list of the 01 subcontractors the bidder proposes to use in the performance of the construction 02 contract. The list must include the name and location of the place of business for each 03 subcontractor, evidence of each subcontractor's valid Alaska business license, and 04 evidence of each subcontractor's registration as a contractor under AS 08.18. If a 05 subcontractor on the list did not have a valid Alaska business license and a valid 06 certificate of registration as a contractor under AS 08.18 at the time the bid was 07 opened, the bidder may not use the subcontractor in the performance of the contract, 08 and shall replace the subcontractor with a subcontractor who had a valid Alaska 09 business license and a valid certificate of registration as a contractor under AS 08.18 10 at the time the bid was opened. 11  * Sec. 37. AS 36.30.210(b) is amended to read: 12 (b) An offeror for a construction contract shall submit evidence of the offeror's 13 registration as a contractor under AS 08.18. A request for sealed proposals for a 14 construction contract, except a design-build construction contract, must require the 15 offeror, no later than five working days after the proposal that is the most 16 advantageous to the state is identified, to list subcontractors the offeror proposes to use 17 in the performance of the construction contract. The list must include the information 18 required under AS 36.30.115(a). The provisions of AS 36.30.115(b) - (g) that apply to 19 a construction contractor or an apparent low bidder apply to offerors submitting 20 competitive sealed proposals for construction contracts, except design-build 21 construction contracts. 22  * Sec. 38. AS 36.90.290(1) is amended to read: 23 (1) "prime contractor" means a person required to be registered as a  24 contractor under AS 08.18 who has a contract with the state or a political subdivision 25 of the state to provide materials or services, other than as an employee, for a public 26 construction or public works project; 27 * Sec. 39. AS 45.50.471(b) is amended by adding a new paragraph to read: 28 (45) violating AS 08.18.023(b) or 08.18.152. 29  * Sec. 40. AS 18.56.300(c) is repealed. 30  * Sec. 41. The uncodified law of the State of Alaska is amended by adding a new section to 31 read: 01 APPLICABILITY. The change made by sec. 40 of this Act applies to causes of action 02 that accrue on or after July 1, 2005. 03 * Sec. 42. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 REGULATIONS. The Department of Community and Economic Development may 06 proceed to adopt regulations to implement this Act. A regulation adopted under this section 07 takes effect under AS 44.62 (Administrative Procedure Act) but not before the effective date 08 of the law implemented by the regulation. 09  * Sec. 43. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 TRANSITIONAL LICENSING PROVISIONS. (a) Notwithstanding AS 08.18.022, 12 added by sec. 7 of this Act, the Department of Community and Economic Development shall 13 issue a certificate of joint registration that is valid until January 1, 2006, to an individual who 14 submits to the department satisfactory evidence of being in the business of home inspection in 15 the state at the time of application for registration under this subsection and of having 16 (1) been in the business of home inspection in the state on October 1, 2002; 17 and 18 (2) passed the building inspector examination or property maintenance and 19 housing inspector examination given by the International Conference of Building Officials. 20 (b) Notwithstanding AS 08.18.022, added by sec. 7 of this Act, the Department of 21 Community and Economic Development shall issue a certificate of registration to practice 22 home inspection of previously occupied residences that is valid until January 1, 2006, to an 23 individual who submits to the department satisfactory evidence of being in the business of 24 home inspection in the state at the time of application for registration under this subsection 25 and of having passed 26 (1) the national home inspector examination given by the American Society of 27 Home Inspectors, American Home Inspectors Training Institute, or National Association of 28 Home Inspectors; or 29 (2) the examination of the Examination Board of Professional Home 30 Inspectors. 31 (c) Notwithstanding AS 08.18.022, added by sec. 7 of this Act, the Department of 01 Community and Economic Development shall issue a certificate of registration to practice 02 home inspection of new construction that is valid until January 1, 2006, to an individual who 03 submits to the department satisfactory evidence of being in the business of home inspection in 04 the state at the time of application for registration under this subsection and of having passed 05 the combination inspector examination or the combination dwelling inspector examination 06 given by the International Conference of Building Officials. 07 (d) Notwithstanding AS 08.18.022, added by sec. 7 of this Act, the Department of 08 Community and Economic Development shall issue a certificate of registration as an associate 09 home inspector that is valid until January 1, 2006, to an individual who submits to the 10 department satisfactory evidence of being employed by an individual who is in the business of 11 home inspection and is registered under this section or under AS 08.18. 12 (e) A certificate of registration issued under this section may not be renewed or 13 extended. 14 (f) Except as provided in (e) of this section, a certificate of registration as a home 15 inspector or associate home inspector issued under this section is considered to be a certificate 16 of registration as a home inspector or associate home inspector issued under AS 08.18.022, 17 added by sec. 7 of this Act. 18 (g) In this section, "joint registration" has the meaning given in AS 08.18.171, as 19 amended by sec. 32 of this Act. 20 * Sec. 44. AS 08.18.011(c) - (f), added by sec. 5 of this Act; AS 08.18.023, added by sec. 7 21 of this Act; AS 08.18.085, added by sec. 17 of this Act; AS 08.18.151, as amended by sec. 29 22 of this Act; and the amendment of AS 18.56.300(b), made by sec. 33 of this Act, take effect 23 July 1, 2004. 24 * Sec. 45. Section 34 of this Act takes effect January 1, 2006. 25  * Sec. 46. Sections 40 and 41 of this Act take effect July 1, 2005. 26  * Sec. 47. Except as provided in secs. 44 - 46 of this Act, this Act takes effect immediately 27 under AS 01.10.070(c).