00 SENATE CS FOR 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; repealing a law that limits liability 07 for damages based on a duty to inspect a residential unit to damages caused by gross 08 negligence or intentional misconduct; and providing for an effective date." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10 * Section 1. AS 08.01.010(12) is amended to read: 11 (12) regulation of construction contractors and home inspectors under 12 AS 08.18; 01 * Sec. 2. AS 08.01.065(c) is amended to read: 02 (c) Except as provided in (f) - (i) [(f) - (h)] of this section, the department shall 03 establish fee levels under (a) of this section so that the total amount of fees collected 04 for an occupation approximately equals the actual regulatory costs for the occupation. 05 The department shall annually review each fee level to determine whether the 06 regulatory costs of each occupation are approximately equal to fee collections related 07 to that occupation. If the review indicates that an occupation's fee collections and 08 regulatory costs are not approximately equal, the department shall calculate fee 09 adjustments and adopt regulations under (a) of this section to implement the 10 adjustments. In January of each year, the department shall report on all fee levels and 11 revisions for the previous year under this subsection to the office of management and 12 budget. If a board regulates an occupation covered by this chapter, the department 13 shall consider the board's recommendations concerning the occupation's fee levels and 14 regulatory costs before revising fee schedules to comply with this subsection. In this 15 subsection, "regulatory costs" means costs of the department that are attributable to 16 regulation of an occupation plus 17 (1) all expenses of the board that regulates the occupation if the board 18 regulates only one occupation; 19 (2) the expenses of a board that are attributable to the occupation if the 20 board regulates more than one occupation. 21 * Sec. 3. AS 08.01.065 is amended by adding a new subsection to read: 22 (i) Notwithstanding (c) of this section, the department shall establish fee levels 23 under (a) of this section so that the total amount of fees collected by the Department of 24 Community and Economic Development for specialty contractors, home inspectors, 25 and associate home inspectors approximately equals the total regulatory costs of the 26 department for those three registration categories. The department shall set the fee 27 levels for the issuance and renewal of a certificate of registration issued under 28 AS 08.18 so that the fee levels are the same for all three of these registration 29 categories and so that the fee level for a home inspector with a joint registration is not 30 different from the fee level for a home inspector who does not have a joint 31 registration. In this subsection, "joint registration" has the meaning given in 01 AS 08.18.171. 02 * Sec. 4. AS 08.18.011 is amended to read: 03 Sec. 08.18.011. Registration required. (a) A person may not submit a bid or 04 work as a contractor until that person has been issued a certificate of registration as a 05 contractor by the department. A partnership or joint venture shall be considered 06 registered as a contractor if one of the general partners or venturers whose name 07 appears in the name under which the partnership or venture does business is registered 08 as a contractor. 09 (b) A general contractor may not use a bid or proposal from, award a bid or 10 proposal to, contract with, or allow a person required to be registered under this 11 chapter to work for the general contractor as a specialty contractor unless the person is 12 registered as a specialty contractor under this chapter. 13 * Sec. 5. AS 08.18.011 is amended by adding new subsections to read: 14 (c) Unless exempt under AS 08.18.156 or serving lawfully as an associate 15 home inspector under (d) of this section, an individual may not perform a home 16 inspection 17 (1) for a residence not previously occupied as a residence unless that 18 individual is registered as a home inspector for new homes under this chapter; 19 (2) for a residence previously occupied as a residence unless that 20 individual is registered as a home inspector for existing homes under this chapter. 21 (d) Notwithstanding (c) of this section, an individual who is not registered as a 22 home inspector under this chapter may perform a home inspection as an associate 23 home inspector if the individual 24 (1) is employed by a registered home inspector who supervises the 25 associate's work and the inspection is of the type that the supervising individual is 26 authorized to perform; and 27 (2) is registered with the department as an associate home inspector. 28 (e) A registered home inspector who employs an associate home inspector 29 under (d) of this section is liable for the work done by the associate home inspector. 30 (f) An individual who holds a joint registration for home inspection is 31 considered to be registered as both a home inspector for new homes and a home 01 inspector for existing homes. 02 * Sec. 6. AS 08.18.021(a) is amended to read: 03 (a) An applicant for registration as a contractor or home inspector shall 04 submit an application under oath upon a form to be prescribed by the commissioner 05 and that [WHICH] must include the following information pertaining to the applicant: 06 (1) the applicant's [EMPLOYER] social security number; 07 (2) if applying to be a registered contractor, the type of contracting 08 activity, whether a general or a specialty contractor and, if the latter, the type of 09 specialty; 10 (3) if applying to be a registered home inspector, whether the 11 applicant is applying to inspect new homes or existing homes, or both; 12 (4) if applying to be a registered contractor, the name and address of 13 each partner if the applicant is a firm or partnership, or the name and address of the 14 owner if the applicant is an individual proprietorship, or the name and address of the 15 corporate officers and statutory agent, if any, if the applicant is a corporation; and 16 (5) if applying to be a registered home inspector, the name and 17 address of the applicant. 18 * Sec. 7. AS 08.18 is amended by adding new sections to read: 19 Sec. 08.18.022. Home inspectors; associate home inspectors. (a) The 20 department shall issue a certificate of registration as a home inspector for new homes, 21 existing homes, or both, as appropriate, to an individual who 22 (1) passes the appropriate home inspection examination; for purposes 23 of this paragraph, the appropriate home inspection examination for an individual who 24 applies to be registered for inspection of 25 (A) existing homes is the examination offered by the American 26 Society of Home Inspectors, American Home Inspectors Training Institute, or 27 National Association of Home Inspectors; 28 (B) new homes or for a joint registration is the examination 29 offered by the International Conference of Building Officials; 30 (2) meets the educational and experience requirements adopted by the 31 department in regulations for the type of registration applied for; 01 (3) submits a complete application for registration within one year 02 after passing the examination required under (1) of this subsection; 03 (4) within the seven years preceding the date of application, has not 04 been under a sentence for an offense related to forgery, theft in the first or second 05 degree, extortion, or defrauding creditors or for a felony involving dishonesty; 06 (5) has not had the authority to perform home inspections revoked in 07 this state or in another jurisdiction; 08 (6) is not the subject of an unresolved criminal complaint or 09 unresolved disciplinary action before a regulatory authority in this state or in another 10 jurisdiction related to real estate or home inspection matters; and 11 (7) pays the appropriate fees. 12 (b) An individual may register with the department as an associate home 13 inspector upon application, payment of the required fee, and determination by the 14 department that the individual 15 (1) within the seven years preceding the date of application, has not 16 been under a sentence for an offense related to forgery, theft in the first or second 17 degree, extortion, or defrauding creditors or for a felony involving dishonesty; 18 (2) has not had the authority to perform home inspections revoked in 19 this state or in another jurisdiction; and 20 (3) is not the subject of an unresolved criminal complaint or 21 unresolved disciplinary action before a regulatory authority in this state or in another 22 jurisdiction related to real estate or home inspection matters. 23 Sec. 08.18.023. Pre-inspection documents and inspection reports. (a) 24 Before performing a home inspection, a registered home inspector or associate home 25 inspector shall provide to the person on whose behalf a home is inspected a written 26 document that includes the home inspector's registration number and that specifies 27 (1) the scope of intended inspection; the scope of the intended 28 inspection may include systems and components that are not listed in 29 AS 08.18.171(12); and 30 (2) that the inspector will notify in writing the person on whose behalf 31 the inspection is being made of defects noted during the inspection along with a 01 recommendation, if any, that experts be retained to conduct further evaluation through 02 examination and analysis by a qualified professional, tradesperson, or service 03 technician beyond that provided by the home inspection to determine the extent of 04 defects and corrective action necessary to address the defects. 05 (b) After performance of a home inspection, a registered home inspector or 06 associate home inspector shall give a written home inspection report to the person 07 requesting the inspection. The written report must include the home inspector's 08 registration number and a review of the condition of each system and component 09 identified as being within the scope of the intended inspection under (a) of this section 10 except that a home inspector's written report for new construction that is the subject of 11 a loan by the Alaska Housing Finance Corporation or another lender may be in the 12 form required by the corporation or other lender, as appropriate. 13 (c) In addition to the written inspection report required under (b) of this 14 section, an oral inspection report may be given by the inspector during or after the 15 inspection. 16 (d) A home inspection report is valid for 180 days after the date the home 17 inspector signs and dates the report. 18 * Sec. 8. AS 08.18.031(a) is amended to read: 19 (a) Except as provided in (c) of this section, a [A] certificate of registration 20 shall be renewed under the same requirements as for an original registration, and the 21 [. THE] commissioner shall issue to the applicant a certificate of registration upon 22 compliance with the registration requirements of this chapter. 23 * Sec. 9. AS 08.18.031 is amended by adding a new subsection to read: 24 (c) A certificate of registration as a home inspector may not be renewed unless 25 the home inspector has complied with the continuing competency requirements 26 established by the department. The department shall adopt regulations establishing the 27 continuing competency requirements. The department shall require at least eight 28 hours of continuing competency activity for each licensing period. The regulations 29 must provide that a continuing competency activity approved by one of the following 30 entities satisfies the continuing competency requirements of this subsection if the 31 activity meets the requirements established by the department in regulations adopted 01 under this subsection: 02 (1) Alaska Housing Finance Corporation; 03 (2) University of Alaska; 04 (3) American Society of Home Inspectors Alaska Chapter; 05 (4) a chapter of the International Conference of Building Officials 06 Alaska; 07 (5) Alaska State Home Building Association; or 08 (6) a state agency that offers an activity that meets the requirements set 09 by the department. 10 * Sec. 10. AS 08.18.041 is amended to read: 11 Sec. 08.18.041. Fees. (a) The department shall set fees under AS 08.01.065 12 for 13 (1) registration and renewal of registration for all categories of 14 contractors; 15 (2) registration and renewal of registration for a home inspector 16 qualified to inspect new homes; 17 (3) registration and renewal of registration for a home inspector 18 qualified to inspect existing homes; 19 (4) joint registration and renewal of joint registration for home 20 inspectors; 21 (5) registration and renewal of registration as an associate home 22 inspector; 23 (6) examinations for applicants for home inspector registration; 24 (7) examination, issuance of initial endorsement, and renewal of active 25 or inactive endorsements for residential contractors; and 26 (8) [(3)] departmental publications and seminars related to this chapter. 27 (b) A person who fails a residential contractor examination or home 28 inspector examination shall pay the examination fee set by the department if the 29 person applies to retake an examination. 30 * Sec. 11. AS 08.18.051(a) is amended to read: 31 (a) Except as provided otherwise by law, a person who has registered as a 01 contractor under one name as required by this chapter may not act in the capacity of a 02 contractor under any other name unless that name also is registered. 03 * Sec. 12. AS 08.18 is amended by adding a new section to read: 04 Sec. 08.18.053. Identification requirements for home inspectors. (a) 05 Except as provided otherwise by law, an individual who is registered as a home 06 inspector or associate home inspector under this chapter by one name may not act in 07 the capacity of a home inspector or associate home inspector under any other name. 08 (b) All advertising and business cards prepared by a registered home inspector 09 or associate home inspector for the home inspection business must show the 10 inspector's name, mailing address, and registration number. 11 (c) Individual registered home inspectors and partners, associates, agents, 12 salespeople, solicitors, officers, and employees of registered home inspectors shall use 13 their true names and addresses and the true name of the home inspecting firm at all 14 times while acting in the capacity of a registered home inspector or performing related 15 activities. 16 (d) Individuals who are exempt from registration under AS 08.18.156(a) or 17 whose actions are not considered to be home inspections under AS 08.18.156(b) may 18 not hold themselves out to be registered home inspectors or use words or titles that 19 may reasonably be confused with the title of "registered home inspector" or "home 20 inspector" unless they are registered as a home inspector under this chapter. 21 * Sec. 13. AS 08.18.061 is amended to read: 22 Sec. 08.18.061. Requirements of political subdivision. A contractor or 23 home inspector who is registered with the state under this chapter may not be 24 required to give bond in applying for or holding a license issued by a political 25 subdivision for a similar occupation. 26 * Sec. 14. AS 08.18.071(a) is amended to read: 27 (a) Each applicant shall, at the time of applying for a certificate of registration, 28 file with the commissioner a surety bond running to the state conditioned upon the 29 applicant's promise to pay all 30 (1) taxes and contributions due the state and political subdivisions; 31 (2) persons furnishing labor or material or renting or supplying 01 equipment to the applicant; and 02 (3) amounts that may be adjudged against the applicant by reason of 03 negligent or improper work or breach of contract in the conduct of the contracting 04 business or home inspection activity, as applicable, or by reason of damage to 05 public facilities occurring in the course of a construction project. 06 * Sec. 15. AS 08.18.071(b) is amended to read: 07 (b) If the applicant is a general contractor, the amount of the bond shall be 08 $10,000; if the applicant is a mechanical or specialty contractor or home inspector, 09 the amount of the bond shall be $5,000. In lieu of the surety bond the applicant may 10 file with the commissioner a cash deposit or other negotiable security acceptable to the 11 commissioner in the amount specified for bonds. 12 * Sec. 16. AS 08.18.081(a) is amended to read: 13 (a) Except as provided in AS 08.18.085, a [A] person having a claim against 14 a contractor or home inspector for any of the items referred to in AS 08.18.071 may 15 bring suit upon the bond in the district court of the judicial district in which venue lies. 16 A copy of the complaint shall be served by registered or certified mail upon the 17 commissioner at the time suit is filed, and the commissioner shall maintain a record, 18 available for public inspection, of all suits commenced. Two additional copies shall 19 be served upon the director of the division of insurance with the payment to the 20 director of a fee set under AS 21.06.250, taxable as costs in the action. This service 21 upon the director shall constitute service on the surety, and the director shall transmit 22 the complaint or a copy of it to the surety within 72 hours after it has been received. 23 The surety upon the bond is not liable in an aggregate amount in excess of that named 24 in the bond, but in case claims pending at any one time exceed the amount of the bond, 25 the claims shall be satisfied from the bond in the following order: 26 (1) labor, including employee benefits; 27 (2) taxes and contributions due the state, city, and borough, in that 28 order; 29 (3) material and equipment; 30 (4) claims for breach of contract; 31 (5) repair of public facilities. 01 * Sec. 17. AS 08.18 is amended by adding a new section to read: 02 Sec. 08.18.085. Legal actions against home inspector. (a) Notwithstanding 03 contrary provisions of AS 08.18.081 or AS 09.10, a person may not bring an action 04 against an individual registered under this chapter based on a home inspection report 05 unless the action is commenced within 06 (1) two years after the date of the home inspection report if the report 07 related to a new home; and 08 (2) one year after the date of the home inspection report if the report 09 related to an existing home. 10 (b) The limitations in (a) of this section apply to all actions based on a home 11 inspection report, regardless of whether the action is based on breach of contract, 12 personal injury or death, property damage, or another source of liability except that (a) 13 of this section is not applicable to an action based on gross negligence or intentional 14 misconduct by the home inspector. The limitations may not be waived by contract. 15 (c) A person may not bring an action against an individual registered under 16 this chapter for damages that arise from an act or omission relating to a home 17 inspection performed by the individual unless the person 18 (1) was a party to the real estate transaction for which the home 19 inspection was conducted; 20 (2) received the home inspection report with the written consent of the 21 party for whom the home inspection was originally performed; or 22 (3) acquired the property for which the home inspection report was 23 conducted by inheritance or bequest from a person who could have brought an action 24 under (1) or (2) of this subsection. 25 (d) Contractual provisions that purport to limit the liability of a home 26 inspector to the cost of the home inspection report are contrary to public policy and 27 void. 28 * Sec. 18. AS 08.18.111 is amended to read: 29 Sec. 08.18.111. Advertising bond and insurance. Contractors and home 30 inspectors may not advertise that they are bonded and insured simply because they 31 have complied with the bond and insurance requirements of this chapter. 01 * Sec. 19. AS 08.18.115 is amended to read: 02 Sec. 08.18.115. Return of cash deposit. (a) A contractor or home inspector 03 who has filed a cash deposit and who ceases doing business as a contractor or home 04 inspector may request the return of as much of that cash deposit as is held by the 05 commissioner by 06 (1) filing a notarized statement with the commissioner that the 07 contractor or home inspector has ceased doing business as a contractor or home 08 inspector, as applicable; and 09 (2) filing a notarized statement with the commissioner at least three 10 years after filing the statement in (1) of this subsection that [WHICH] 11 (A) requests return of the cash deposit; 12 (B) certifies that the former contractor or home inspector has 13 not been engaged in business as a contractor or home inspector, as 14 applicable, for at least three years; and 15 (C) certifies that to the best of the contractor's or home 16 inspector's knowledge no action has been commenced upon the cash deposit 17 that [WHICH] has not been dismissed or reduced to a final judgment that 18 [WHICH] has been satisfied. 19 (b) The commissioner, after paying any judgments against the cash deposit 20 under AS 08.18.081(b), shall return the remainder of a former contractor's or former 21 home inspector's cash deposit to the contractor or home inspector, as applicable, if 22 (1) the former contractor or former home inspector has complied 23 with (a) of this section; and 24 (2) no action has been commenced upon the cash deposit that 25 [WHICH] has not been dismissed or reduced to a final judgment that [WHICH] has 26 been satisfied. 27 * Sec. 20. AS 08.18.116 is amended to read: 28 Sec. 08.18.116. Investigations. Either the Department of Community and 29 Economic Development or the Department of Labor and Workforce Development 30 may investigate alleged or apparent violations of this chapter relating to contractors. 31 The Department of Community and Economic Development may investigate 01 alleged or apparent violations of this chapter relating to home inspection 02 activities. These departments, upon showing proper credentials, may enter, during 03 regular hours of work, a construction site where it appears that contracting work is 04 being done. The departments may make inquiries about the identity of the contractor 05 or the person acting in the capacity of a contractor. The Department of Community 06 and Economic Development may make inquiries about the identity of a home 07 inspector or a person acting in the capacity of a home inspector. Upon demand, a 08 contractor or home inspector or person acting in the capacity of a contractor or home 09 inspector, or that person's representative, shall produce evidence of current 10 endorsement, if applicable, and registration. 11 * Sec. 21. AS 08.18.117 is amended to read: 12 Sec. 08.18.117. Issuance of citations. Either the Department of Community 13 and Economic Development or the Department of Labor and Workforce Development 14 may issue a citation for a violation if there is probable cause to believe a person has 15 violated this chapter with respect to contractor activities. The Department of 16 Community and Economic Development may issue a citation for a violation if 17 there is probable cause to believe a person has violated this chapter with respect 18 to home inspection activities. Each day a violation continues after a citation for the 19 violation has been issued constitutes a separate violation. 20 * Sec. 22. AS 08.18.121(a) is amended to read: 21 (a) If the insurance required in AS 08.18.101 ceases to be in effect, the 22 registration of the contractor or home inspector shall be suspended until the insurance 23 has been reinstated. 24 * Sec. 23. AS 08.18.121(b) is amended to read: 25 (b) If a final judgment impairs the liability of the surety upon the bond or 26 depletes the cash deposit so that there is not in effect a bond undertaking or cash 27 deposit in the full amount prescribed in AS 08.18.071, the registration of the 28 contractor or home inspector involved shall be suspended until the bond liability in 29 the required amount, unimpaired by unsatisfied judgment claims, has been furnished. 30 * Sec. 24. AS 08.18.121(c) is amended to read: 31 (c) If a bonding company cancels its bond of a contractor or home inspector, 01 the contractor's or home inspector's registration shall be revoked. The contractor or 02 home inspector may again obtain registration by complying with the requirements of 03 this chapter. 04 * Sec. 25. AS 08.18.121(d) is amended to read: 05 (d) If a registered contractor or registered home inspector fails to fulfill the 06 contractor's or home inspector's obligations as set out in AS 08.18.071, the 07 contractor's or home inspector's registration shall be suspended for a period of time 08 the commissioner determines is appropriate. After three suspensions, the contractor's 09 or home inspector's registration may be permanently revoked. 10 * Sec. 26. AS 08.18.121(f) is amended to read: 11 (f) If the Department of Community and Economic Development or the 12 Department of Labor and Workforce Development determines that a contractor or [A] 13 person acting in the capacity of a contractor [,] is in violation of this chapter, that 14 department may give written notice to the person prohibiting further action by the 15 person as a contractor. If the Department of Community and Economic 16 Development determines that a home inspector or a person acting in the capacity 17 of a home inspector is in violation of this chapter, the department may give 18 written notice to the person prohibiting further action by the person as a home 19 inspector. The prohibition in a notice given under this subsection continues until 20 the person has submitted evidence acceptable to the appropriate [THAT] department 21 showing that the violation has been corrected. 22 * Sec. 27. AS 08.18.123 is amended to read: 23 Sec. 08.18.123. Denial, suspension, and revocation of endorsement or 24 home inspector registration. 25 (a) The department may suspend, revoke, or refuse to grant or renew a 26 residential contractor endorsement, a home inspector registration, or an associate 27 home inspector registration upon a finding that 28 (1) the application is fraudulent or misleading; 29 (2) the endorsement holder or registrant [CONTRACTOR] has 30 knowingly violated this chapter or a lawful order or regulation of the department; 31 (3) the endorsement holder or registrant [CONTRACTOR] is 01 incompetent or has engaged in fraudulent practices. 02 (b) Proceedings for the denial, suspension, or revocation of residential 03 contractor endorsement, home inspector registration, or associate home inspector 04 registration are governed by AS 44.62 (Administrative Procedure Act). 05 * Sec. 28. AS 08.18.131 is amended to read: 06 Sec. 08.18.131. Injunction; civil penalty. In an action instituted in the 07 superior court by the Department of Community and Economic Development or the 08 Department of Labor and Workforce Development, the court may enjoin a person 09 from acting in the capacity of a contractor in violation of this chapter. In an action 10 instituted in the superior court by the Department of Community and Economic 11 Development, the court may enjoin a person from acting in the capacity of a 12 home inspector in violation of this chapter. In addition to other relief, the court may 13 impose a civil penalty of not more than $250 for each violation. Each day that an 14 unlawful act continues constitutes a separate violation. 15 * Sec. 29. AS 08.18.141(a) is amended to read: 16 (a) A contractor, home inspector, or [A] person acting in the capacity of a 17 contractor or home inspector who knowingly violates AS 08.18.011 or 08.18.025 is 18 guilty of a class B misdemeanor. A person who violates another provision of this 19 chapter is guilty of a violation punishable under AS 12. 20 * Sec. 30. AS 08.18.151 is amended to read: 21 Sec. 08.18.151. Legal actions by contractor or home inspector. A person 22 acting in the capacity of a contractor or home inspector may not bring an action in a 23 court of this state for the collection of compensation for the performance of work or 24 for breach of a contract for which registration is required under this chapter without 25 alleging and proving that the contractor or home inspector was a registered contractor 26 or registered home inspector, as applicable, at the time of contracting for the 27 performance of the work. 28 * Sec. 31. AS 08.18 is amended by adding new sections to article 4 to read: 29 Sec. 08.18.152. Prohibited acts for home inspectors. An individual 30 registered under this chapter as a home inspector or associate home inspector may not 31 (1) perform or offer to perform, for an additional fee, repairs to a 01 subject property on which the home inspector or the home inspector's company has 02 prepared a home inspection report in the past 12 months; 03 (2) inspect for a fee any property in which the home inspector or the 04 home inspector's company has a financial interest or an interest in the transfer of the 05 property; 06 (3) offer or deliver compensation, an inducement, or a reward to the 07 owner of the inspected property, the broker, or the agent, for the referral of business to 08 the home inspector or the home inspector's company; 09 (4) without the written consent of the home inspection client or the 10 client's legal representative, disclose information from a home inspection report 11 prepared by the home inspector or the home inspector's company unless the disclosure 12 is made 13 (A) to a subsequent client who requests a home inspection of 14 the same premises; or 15 (B) by the home inspector in an administrative or judicial 16 proceeding in which disclosure of the home inspection report is relevant to 17 resolution of the legal issues in the proceeding; 18 (5) without the written consent of all interested parties, accept 19 compensation from more than one interested party for the same home inspection 20 services; 21 (6) accept from a person who has other dealings with a home 22 inspection client a commission or allowance, directly or indirectly, for work for which 23 the home inspector or the home inspector's company is responsible; 24 (7) accept an engagement to make an inspection or to prepare a report 25 in which the employment itself or the fee payable for the inspection is contingent upon 26 the conclusions in the report, preestablished findings, or the close of escrow. 27 Sec. 08.18.154. Limitation on home inspector's activities. A registration 28 issued under AS 08.18.022 does not authorize the holder to perform an activity for 29 which a license is required under provisions of this title that are outside of this chapter. 30 Sec. 08.18.156. Exemptions related to home inspections. (a) 31 Notwithstanding other provisions of this chapter, an individual who inspects a home is 01 not required to be registered under this chapter as a home inspector or associate home 02 inspector if the individual is 03 (1) employed by the federal or state government, a political 04 subdivision of the state, or a municipality or unincorporated community and the 05 employee is performing only duties that are within the employee's official duties; 06 (2) performing a home inspection only with respect to property that is 07 the individual's residence or in which the individual has a financial interest; 08 (3) registered as an engineer or architect under AS 08.48, prepares a 09 written report after the inspection, affixes the individual's seal to the home inspection 10 report, signs and dates the report, and puts the individual's registration number on the 11 report; 12 (4) engaged as an engineer in training or architect in training who 13 works for and is supervised by a person described in (3) of this subsection and the 14 person described in (3) of this subsection affixes the person's seal to the home 15 inspection report, signs and dates the report, and puts the person's registration number 16 on the report; 17 (5) licensed as a pesticide applicator by the Department of 18 Environmental Conservation and is performing only activities within the scope of that 19 license; 20 (6) registered as a general contractor with a residential contractor 21 endorsement under this chapter and is performing only activities within the scope of 22 that registration; 23 (7) certified as any type of real estate appraiser under AS 08.87 and is 24 performing only activities that are authorized under that certification; or 25 (8) only determining whether a building complies with the thermal and 26 lighting energy standards required by AS 46.11.040. 27 (b) Notwithstanding the definition of "home inspection" in AS 08.18.171(12), 28 an individual is not considered to be doing a home inspection for purposes of this 29 chapter if the individual 30 (1) is in the business of repairing, maintaining, or installing any of the 31 systems or components listed in AS 08.18.171(12); and 01 (2) inspects the system or component for the sole purpose of 02 determining the condition of the system or component before performing or offering 03 to perform repair, maintenance, or installation work on the system or component. 04 * Sec. 32. AS 08.18.161 is amended to read: 05 Sec. 08.18.161. Exemptions. To the extent that this chapter governs 06 contractors, this [THIS] chapter does not apply to 07 (1) an authorized representative of the United States government, the 08 State of Alaska, or a political subdivision or agency of the state; 09 (2) an officer of a court when acting within the scope of office; 10 (3) a public utility operating under the regulations of the public service 11 commission in construction, maintenance, or development work incidental to its own 12 business; 13 (4) a construction, repair, or operation incidental to the discovering or 14 producing of petroleum or gas, or the drilling, testing, abandoning, or other operation 15 of a petroleum or gas well or a surface or underground mine or mineral deposit when 16 performed by an owner or lessee; 17 (5) the sale or installation of finished products, materials, or articles of 18 merchandise that are not actually fabricated into and do not become a permanent, 19 fixed part of a structure; 20 (6) construction, alteration, or repair of personal property; 21 (7) a person who only furnished materials, supplies, or equipment 22 without fabricating them into, or consuming them in the performance of, the work of 23 the contractor; 24 (8) work on one project under one or more contracts, the aggregate 25 contract price of which for labor and materials and all other items is less than $10,000 26 [, THIS WORK BEING CONSIDERED AS OF A CASUAL, MINOR, OR 27 INCONSEQUENTIAL NATURE]; this exemption does not apply when the work is 28 only a part of a larger or major operation, whether undertaken by the same or a 29 different contractor, or when the work is divided into contracts of amounts less than 30 $10,000 for the purpose of evasion of this chapter or otherwise; this exemption does 31 not apply to a person who advertises or puts out a sign or card or other device that 01 might indicate to the public that the person is a contractor, or that the person is 02 qualified to engage in the contracting business; a contractor who performs work priced 03 at $2,500 or more, under this exemption, shall nevertheless keep in force public 04 liability and property damage insurance with coverage in at least the amounts set out 05 in AS 08.18.101; 06 (9) an owner who contracts for a project with a registered contractor; 07 (10) a person working on that person's own property, whether occupied 08 by the person or not, and a person working on that person's own residence, whether 09 owned by the person or not; 10 (11) an owner or tenant of commercial property who uses the owner's 11 or tenant's own employees to do maintenance, repair, and alteration work upon that 12 property; 13 (12) an owner who acts as the owner's own contractor and in doing so 14 hires workers on an hourly basis, hires subcontractors, purchases materials and, as 15 such, sees to the paying for all labor, subcontractors, and materials; in this case, the 16 owner shall be limited to construction of one home, duplex, triplex, four-plex, or one 17 commercial building a [PER] year; 18 (13) a person performing construction work incidental to farming, 19 dairying, agriculture, horticulture, stock or poultry raising, mining, logging, fishing, 20 clearing, or other work upon the land in rural districts for fire prevention purposes, or 21 access road building, unless the person is a licensee. 22 * Sec. 33. AS 08.18.171 is amended by adding new paragraphs to read: 23 (11) "existing home" means a residence previously occupied as a 24 residence; 25 (12) "home inspection" means a visual examination, performed in 26 accordance with standards of practice adopted by the department, of the readily 27 accessible parts of one or more of the following systems and components of a 28 residence or intended residence: 29 (A) heating and air-conditioning systems; 30 (B) plumbing and electrical systems; 31 (C) built-in appliances; 01 (D) roof, attic, and visible insulation; 02 (E) walls, ceilings, floors, windows, and doors; 03 (F) foundation and basement; 04 (G) visible interior and exterior structures; 05 (H) drainage to and from the residence; 06 (I) other systems or components as specified by the department 07 in regulations; 08 (13) "home inspector" means an individual who performs or offers to 09 perform a home inspection for a fee; 10 (14) "joint registration" means a certificate of registration that 11 authorizes an individual to inspect both new homes and existing homes; 12 (15) "knowingly" has the meaning given in AS 11.81.900; 13 (16) "new home" means a residence not previously occupied as a 14 residence; 15 (17) "residence" means 16 (A) a single-family home other than a mobile home; 17 (B) a duplex, triplex, or four-plex; or 18 (C) a residential townhouse or residential condominium unit; 19 (18) "visual examination" means an examination performed in person 20 at the physical location of the residence except that, if a method other than personal 21 physical inspection has been approved by the Alaska Housing Finance Corporation 22 under AS 18.56.300(b), use of the other approved method constitutes a visual 23 examination under this chapter. 24 * Sec. 34. AS 18.56.300(b) is amended to read: 25 (b) As a condition of a commitment to purchase or approve a loan under this 26 section for residential housing the construction of which begins after June 30, 1992, 27 the corporation shall require inspection of the unit of residential housing that is the 28 subject of the loan. The inspection must be performed by a municipal building 29 inspector, by a person who is approved or certified to perform residential inspections 30 by the International Conference of Building Officials or the International Association 31 of Electrical Inspectors, by an individual who is registered under AS 08.18 to 01 perform home inspections for new construction [OR, WHEN THE UNIT OF 02 RESIDENTIAL HOUSING IS LOCATED IN A RURAL AREA], by an architect 03 registered under AS 08.48, by an engineer registered under AS 08.48, or by another 04 person approved by the corporation. When the unit of residential housing is located in 05 a rural area, the person who makes the inspection may use methods other than a 06 personal physical inspection to make the inspection if the method is approved by the 07 corporation, and variations from the applicable code may be accepted at the 08 corporation's discretion, if the person authorized to inspect the unit under this 09 subsection satisfies the corporation that the variation does not adversely affect the 10 structural integrity of the unit or the health and safety of the residents. The person 11 who makes the inspection shall determine whether the construction conforms to 12 relevant provisions of the construction codes of the municipality or of the state 13 building code, as applicable, at each of the following stages of construction: 14 (1) plan approval; 15 (2) completion of footings and foundations; 16 (3) completion of electrical installation, plumbing, and framing; 17 (4) completion of installation of insulation; 18 (5) final approval. 19 * Sec. 35. AS 18.56.300(b) is amended to read: 20 (b) As a condition of a commitment to purchase or approve a loan under this 21 section for residential housing the construction of which begins after June 30, 1992, 22 the corporation shall require inspection of the unit of residential housing that is the 23 subject of the loan. The inspection must be performed by a municipal building 24 inspector, [BY A PERSON WHO IS APPROVED OR CERTIFIED TO PERFORM 25 RESIDENTIAL INSPECTIONS BY THE INTERNATIONAL CONFERENCE OF 26 BUILDING OFFICIALS OR THE INTERNATIONAL ASSOCIATION OF 27 ELECTRICAL INSPECTORS,] by an individual who is registered under AS 08.18 to 28 perform home inspections for new construction, by an architect registered under 29 AS 08.48, by an engineer registered under AS 08.48, or by another person approved 30 by the corporation. When the unit of residential housing is located in a rural area, the 31 person who makes the inspection may use methods other than a personal physical 01 inspection to make the inspection if the method is approved by the corporation, and 02 variations from the applicable code may be accepted at the corporation's discretion, if 03 the person authorized to inspect the unit under this subsection satisfies the corporation 04 that the variation does not adversely affect the structural integrity of the unit or the 05 health and safety of the residents. The person who makes the inspection shall 06 determine whether the construction conforms to relevant provisions of the 07 construction codes of the municipality or of the state building code, as applicable, at 08 each of the following stages of construction: 09 (1) plan approval; 10 (2) completion of footings and foundations; 11 (3) completion of electrical installation, plumbing, and framing; 12 (4) completion of installation of insulation; 13 (5) final approval. 14 * Sec. 36. AS 36.30.050(b) is amended to read: 15 (b) A person who desires to be on a list shall submit to the commissioner 16 evidence of a valid Alaska business license. A biennial fee may be established by 17 regulation in an amount reasonably calculated to pay the costs of administering this 18 section. A construction contractor shall also submit a valid certificate of registration 19 as a contractor issued under AS 08.18. The commissioner, by regulation, may require 20 submission of additional information. 21 * Sec. 37. AS 36.30.115(a) is amended to read: 22 (a) Within five working days after the identification of the apparent low bidder 23 for a construction contract, the apparent low bidder shall submit a list of the 24 subcontractors the bidder proposes to use in the performance of the construction 25 contract. The list must include the name and location of the place of business for each 26 subcontractor, evidence of each subcontractor's valid Alaska business license, and 27 evidence of each subcontractor's registration as a contractor under AS 08.18. If a 28 subcontractor on the list did not have a valid Alaska business license and a valid 29 certificate of registration as a contractor under AS 08.18 at the time the bid was 30 opened, the bidder may not use the subcontractor in the performance of the contract, 31 and shall replace the subcontractor with a subcontractor who had a valid Alaska 01 business license and a valid certificate of registration as a contractor under AS 08.18 02 at the time the bid was opened. 03 * Sec. 38. AS 36.30.210(b) is amended to read: 04 (b) An offeror for a construction contract shall submit evidence of the offeror's 05 registration as a contractor under AS 08.18. A request for sealed proposals for a 06 construction contract, except a design-build construction contract, must require the 07 offeror, no later than five working days after the proposal that is the most 08 advantageous to the state is identified, to list subcontractors the offeror proposes to use 09 in the performance of the construction contract. The list must include the information 10 required under AS 36.30.115(a). The provisions of AS 36.30.115(b) - (g) that apply to 11 a construction contractor or an apparent low bidder apply to offerors submitting 12 competitive sealed proposals for construction contracts, except design-build 13 construction contracts. 14 * Sec. 39. AS 36.90.290(1) is amended to read: 15 (1) "prime contractor" means a person required to be registered as a 16 contractor under AS 08.18 who has a contract with the state or a political subdivision 17 of the state to provide materials or services, other than as an employee, for a public 18 construction or public works project; 19 * Sec. 40. AS 45.50.471(b) is amended by adding a new paragraph to read: 20 (45) violating AS 08.18.023(b) or 08.18.152. 21 * Sec. 41. AS 18.56.300(c) is repealed. 22 * Sec. 42. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 APPLICABILITY. The change made by sec. 41 of this Act applies to causes of action 25 that accrue on or after July 1, 2005. 26 * Sec. 43. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 REGULATIONS. The Department of Community and Economic Development may 29 proceed to adopt regulations to implement this Act. A regulation adopted under this section 30 takes effect under AS 44.62 (Administrative Procedure Act) but not before the effective date 31 of the law implemented by the regulation. 01 * Sec. 44. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 TRANSITIONAL LICENSING PROVISIONS. (a) Notwithstanding AS 08.18.022, 04 added by sec. 7 of this Act, the Department of Community and Economic Development shall 05 issue a certificate of joint registration that is valid until January 1, 2006, to an individual who 06 submits to the department satisfactory evidence of being in the business of home inspection in 07 the state at the time of application for registration under this subsection and of having 08 (1) been in the business of home inspection in the state on October 1, 2002; 09 and 10 (2) passed the building inspector examination or property maintenance and 11 housing inspector examination given by the International Conference of Building Officials. 12 (b) Notwithstanding AS 08.18.022, added by sec. 7 of this Act, the Department of 13 Community and Economic Development shall issue a certificate of registration to practice 14 home inspection of previously occupied residences that is valid until January 1, 2006, to an 15 individual who submits to the department satisfactory evidence of being in the business of 16 home inspection in the state at the time of application for registration under this subsection 17 and of having passed 18 (1) the national home inspector examination given by the American Society of 19 Home Inspectors, American Home Inspectors Training Institute, or National Association of 20 Home Inspectors; or 21 (2) the examination of the Examination Board of Professional Home 22 Inspectors. 23 (c) Notwithstanding AS 08.18.022, added by sec. 7 of this Act, the Department of 24 Community and Economic Development shall issue a certificate of registration to practice 25 home inspection of new construction that is valid until January 1, 2006, to an individual who 26 submits to the department satisfactory evidence of being in the business of home inspection in 27 the state at the time of application for registration under this subsection and of having passed 28 the combination inspector examination or the combination dwelling inspector examination 29 given by the International Conference of Building Officials. 30 (d) Notwithstanding AS 08.18.022, added by sec. 7 of this Act, the Department of 31 Community and Economic Development shall issue a certificate of registration as an associate 01 home inspector that is valid until January 1, 2006, to an individual who submits to the 02 department satisfactory evidence of being employed by an individual who is in the business of 03 home inspection and is registered under this section or under AS 08.18. 04 (e) A certificate of registration issued under this section may not be renewed or 05 extended. 06 (f) Except as provided in (e) of this section, a certificate of registration as a home 07 inspector or associate home inspector issued under this section is considered to be a certificate 08 of registration as a home inspector or associate home inspector issued under AS 08.18.022, 09 added by sec. 7 of this Act. 10 (g) In this section, "joint registration" has the meaning given in AS 08.18.171, as 11 amended by sec. 33 of this Act. 12 * Sec. 45. AS 08.18.011(c) - (f), added by sec. 5 of this Act; AS 08.18.023, added by sec. 7 13 of this Act; AS 08.18.085, added by sec. 17 of this Act; AS 08.18.151, as amended by sec. 30 14 of this Act; and the amendment of AS 18.56.300(b), made by sec. 34 of this Act, take effect 15 July 1, 2004. 16 * Sec. 46. Section 35 of this Act takes effect January 1, 2006. 17 * Sec. 47. Sections 41 and 42 of this Act take effect July 1, 2005. 18 * Sec. 48. Except as provided in secs. 45 - 47 of this Act, this Act takes effect immediately 19 under AS 01.10.070(c).