SB 193: "An Act relating to bonds required for contractors."
00 SENATE BILL NO. 193 01 "An Act relating to bonds required for contractors." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 08.18.024(b) is amended to read: 04 (b) Notwithstanding (a) of this section, a specialty contractor may perform 05 work that 06 [(1)] requires the use of not more than three trades [; OR 07 (2) IS EXEMPT UNDER AS 08.18.161(8)]. 08 * Sec. 2. AS 08.18.071(b) is repealed and reenacted to read: 09 (b) The amount of the bond for a 10 (1) general contractor shall be $25,000; 11 (2) general contractor with a residential contractor endorsement under 12 AS 08.18.025 who performs exclusively residential work shall be $20,000; 13 (3) for a mechanical or specialty contractor or home inspector shall be 14 $10,000; or 15 (4) contractor whose work on one project with an aggregate contract
01 price of $10,000 or less, including all labor, materials, and other items, when the work 02 is not part of a larger or major operation or otherwise divided into contracts of less 03 than $10,000 to evade a higher bonding requirement, shall be $5,000. 04 * Sec. 3. AS 08.18.071(c) is amended to read: 05 (c) The bond required by this section remains in effect until cancelled by 06 action of the surety, the principal, or the commissioner. An action may not be 07 commenced upon the bond later than three years after its cancellation. In lieu of the 08 surety bond required by this section, the applicant may file with the 09 commissioner a cash deposit or other negotiable security acceptable to the 10 commissioner in the amount specified for bonds. 11 * Sec. 4. AS 08.18.101(a) is amended to read: 12 (a) Each applicant, at the time of applying for registration or upon renewal of 13 registration, shall file with the commissioner satisfactory evidence that the applicant 14 has in effect 15 (1) to the extent required under AS 23.30, workers' compensation 16 insurance that is purchased from a private insurer who is admitted to do business in the 17 state and that shows coverage in this state, appropriate employee classifications, and 18 rates applicable in this state, or a valid workers' compensation self-insurance 19 certificate issued by the Alaska Workers' Compensation Board; and 20 (2) public liability and property damage insurance covering the 21 applicant's contracting operations in this state in the sum of not less than $20,000 for 22 damage to property, $50,000 for injury, including death, to any one person, and 23 $100,000 for injury, including death, to more than one person; this requirement does 24 not apply to an applicant whose contracting operations are for work on projects 25 where each project has an aggregate contract price, including all labor, 26 materials, and other items of $2,500 or less. 27 * Sec. 5. AS 08.18.161(8) is repealed. 28 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 APPLICABILITY. The bonding requirement in AS 08.18.071(b), as amended by sec. 31 2 of this Act, applies
01 (1) immediately to a person who is not registered as a contractor or home 02 inspector in this state under AS 08.18.011 on the effective date of this Act; and 03 (2) January 1, 2015, or upon the next renewal of the contractor's registration, 04 whichever is earlier, to a person who is registered as a contractor on the effective date of this 05 Act.