00                      CS FOR HOUSE BILL NO. 81(L&C)                                                                     
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. The uncodified law of the State of Alaska is amended by adding a new section                          
04 to read:                                                                                                                
05       LEGISLATIVE INTENT. It is the intent of the legislature that the exemptions listed                                
06 in AS 08.18.161, as amended by sec. 2 of this Act, be construed broadly in order to allow                               
07 individuals the freedom and ability to construct and sell their own homes based on their own                            
08 discretion.                                                                                                             
09    * Sec. 2. AS 08.18.161 is amended to read:                                                                         
10            Sec. 08.18.161. Exemptions. To the extent that this chapter governs                                        
11       contractors, this chapter does not apply to                                                                       
12                 (1)  an authorized representative of the United States government, the                                  
13       State of Alaska, or a political subdivision or agency of the state;                                               
14                 (2)  an officer of a court when acting within the scope of office;                                      
15                 (3)  a public utility operating under the regulations of the Regulatory                                 

01       Commission of Alaska in construction, maintenance, or development work incidental                                 
02       to its own business;                                                                                              
03                 (4)  a construction, repair, or operation incidental to the discovering or                              
04       producing of petroleum or gas, or the drilling, testing, abandoning, or other operation                           
05       of a petroleum or gas well or a surface or underground mine or mineral deposit when                               
06       performed by an owner or lessee;                                                                                  
07                 (5)  the sale or installation of finished products, materials, or articles of                           
08       merchandise that are not actually fabricated into and do not become a permanent,                                  
09       fixed part of a structure;                                                                                        
10                 (6)  construction, alteration, or repair of personal property;                                          
11                 (7)  a person who only furnished materials, supplies, or equipment                                      
12       without fabricating them into, or consuming them in the performance of, the work of                               
13       the contractor;                                                                                                   
14                 (8)  [REPEALED                                                                                          
15                 (9)]  an owner who contracts for a project with a registered contractor;                                
16                 (9) [(10)]  a person working on an existing structure on that person's                          
17       own property, whether occupied by the person or not, and a person working on that                                 
18       person's own existing residence, whether owned by the person or not;                                          
19                 (10) [(11)]  an owner or tenant of commercial property who uses the                                 
20       owner's or tenant's own employees to do maintenance, repair, and alteration work on                           
21       [UPON] that property;                                                                                             
22                 (11) [(12)]  an owner who acts as the owner's own contractor and in                                 
23       doing so performs the work independently or hires workers or [ON AN HOURLY                                
24       BASIS, HIRES] subcontractors, purchases materials, and, as such, sees to the paying                           
25       for all labor, subcontractors, and materials; in this case, the owner shall be limited to                         
26       construction of one home, duplex, triplex, four-plex, or commercial building every                                
27       two years; the exemption in this paragraph does not apply if the structure under                              
28       construction is advertised for sale or sold during the period of construction or for                          
29       two years after the period of construction ends, unless the owner can                                         
30       demonstrate to the department's satisfaction that the sale would not result in                                
31       circumvention of the requirements under this chapter;                                                         

01                 (12) [(13)]  a person performing construction work incidental to                                    
02       farming, dairying, agriculture, horticulture, stock or poultry raising, mining, logging,                          
03       fishing, clearing, or other work upon the land in rural districts for fire prevention                             
04       purposes, or access road building, unless the person is a licensee.                                               
05    * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to                          
06 read:                                                                                                                   
07       APPLICABILITY. This Act applies to construction begun under AS 08.18.161(11), as                                  
08 amended by sec. 2 of this Act, on or after the effective date of this Act. For the purposes of                          
09 this section, construction begins on the date that is the earlier of when the owner                                     
10            (1)  begins the actual construction work; or                                                                 
11            (2)  enters into an agreement with another person for the other person to                                    
12 provide labor, to act as a subcontractor, or to provide materials for the construction.