00                             HOUSE BILL NO. 81                                                                          
01 "An Act relating to an exemption from the regulation of construction contractors."                                      
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1. AS 08.18.161 is amended to read:                                                                      
04            Sec. 08.18.161. Exemptions. To the extent that this chapter governs                                        
05       contractors, this chapter does not apply to                                                                       
06                 (1) an authorized representative of the United States government, the                                   
07       State of Alaska, or a political subdivision or agency of the state;                                               
08                 (2) an officer of a court when acting within the scope of office;                                       
09                 (3) a public utility operating under the regulations of the Regulatory                                  
10       Commission of Alaska in construction, maintenance, or development work incidental                                 
11       to its own business;                                                                                              
12                 (4) a construction, repair, or operation incidental to the discovering or                               
13       producing of petroleum or gas, or the drilling, testing, abandoning, or other operation                           
14       of a petroleum or gas well or a surface or underground mine or mineral deposit when                               
15       performed by an owner or lessee;                                                                                  

01                 (5) the sale or installation of finished products, materials, or articles of                            
02       merchandise that are not actually fabricated into and do not become a permanent,                                  
03       fixed part of a structure;                                                                                        
04                 (6) construction, alteration, or repair of personal property;                                           
05                 (7) a person who only furnished materials, supplies, or equipment                                       
06       without fabricating them into, or consuming them in the performance of, the work of                               
07       the contractor;                                                                                                   
08                 (8) [REPEALED                                                                                           
09                 (9)] an owner who contracts for a project with a registered contractor;                                 
10                 (9) [(10)] a person working on that person's own property, whether                                  
11       occupied by the person or not, and a person working on that person's own residence,                               
12       whether owned by the person or not;                                                                               
13                 (10) [(11)] an owner or tenant of commercial property who uses the                                  
14       owner's or tenant's own employees to do maintenance, repair, and alteration work on                           
15       [UPON] that property;                                                                                             
16                 (11) [(12)] an owner who acts as the owner's own contractor and in                                  
17       doing so performs the work independently or hires workers or [ON AN HOURLY                                
18       BASIS, HIRES] subcontractors, purchases materials, and, as such, sees to the paying                           
19       for all labor, subcontractors, and materials; in this case, the owner shall be limited to                         
20       construction of one home, duplex, triplex, four-plex, or commercial building every                                
21       two years; the exemption in this paragraph does not apply if the structure under                              
22       construction is advertised for sale or sold during the period of construction or for                          
23       two years after the period of construction ends, unless the owner can                                         
24       demonstrate to the department's satisfaction that the sale would not result in                                
25       circumvention of the requirements under this chapter;                                                         
26                 (12) [(13)] a person performing construction work incidental to                                     
27       farming, dairying, agriculture, horticulture, stock or poultry raising, mining, logging,                          
28       fishing, clearing, or other work upon the land in rural districts for fire prevention                             
29       purposes, or access road building, unless the person is a licensee.                                               
30    * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to                          
31 read:                                                                                                                   

01       APPLICABILITY. This Act applies to construction begun under AS 08.18.161(11), as                                  
02 amended by sec. 1 of this Act, on or after the effective date of this Act. For the purposes of                          
03 this section, construction begins on the date that is the earlier of when the owner                                     
04            (1)  begins the actual construction work; or                                                                 
05            (2)  enters into an agreement with another person for the other person to                                    
06 provide labor, to act as a subcontractor, or to provide materials for the construction.