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CSHB 542(RLS): "An Act reducing to $5,000 the ceiling for a contract price allowed under one construction contractor exemption and expanding the work that a specialty contractor may perform to include, in addition to work requiring not more than three trades, work under that construction contractor exemption; and changing the definition of specialty contractor to refer to the work that a specialty contractor may perform."

00 CS FOR HOUSE BILL NO. 542(RLS) 01 "An Act reducing to $5,000 the ceiling for a contract price allowed under one 02 construction contractor exemption and expanding the work that a specialty contractor 03 may perform to include, in addition to work requiring not more than three trades, work 04 under that construction contractor exemption; and changing the definition of specialty 05 contractor to refer to the work that a specialty contractor may perform." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 08.18.024 is amended by adding a new subsection to read: 08 (b) Notwithstanding (a) of this section, a specialty contractor may perform 09 work that 10 (1) requires the use of not more than three trades; or 11 (2) is exempt under AS 08.18.161(8). 12 * Sec. 2. AS 08.18.161(8) is amended to read: 13 (8) work on one project under one or more contracts, the aggregate

01 contract price of which for labor and materials and all other items is less than $5,000 02 [$10,000]; this exemption does not apply when the work is only a part of a larger or 03 major operation, whether undertaken by the same or a different contractor, or when the 04 work is divided into contracts of amounts less than $5,000 [$10,000] for the purpose 05 of evasion of this chapter or otherwise; this exemption does not apply to a person who 06 advertises or puts out a sign or card or other device that might indicate to the public 07 that the person is a contractor, or that the person is qualified to engage in the 08 contracting business; a contractor who performs work priced at $2,500 or more, under 09 this exemption, shall nevertheless keep in force public liability and property damage 10 insurance with coverage in at least the amounts set out in AS 08.18.101; 11 * Sec. 3. AS 08.18.171(16) is amended to read: 12 (16) "specialty contractor" means a contractor, other than a mechanical 13 contractor, whose business operations are described in AS 08.18.024(b) [REQUIRE 14 THE USE OF NOT MORE THAN THREE TRADES]; 15 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 TRANSITION PROVISIONS. (a) AS 08.18.161(8), as amended by sec. 2 of this 18 Act, does not apply to a person who has a business license under AS 43.70.020 to perform 19 work under AS 08.18.161(8) until the later of 20 (1) the end of the term for which the business license is issued before the 21 person is required to renew the license; or 22 (2) the completion of construction begun by the person under AS 08.18.161(8) 23 before the effective date of this Act. 24 (b) Notwithstanding (a) of this section, AS 08.18.161(8), as amended by sec. 2 of this 25 Act, applies to all persons on and after a date that is one and one-half years after the effective 26 date of this Act.