Bill Text 28th Legislature
- Session Laws
00 Enrolled SB 193
01 Relating to bonds required for contractors; and providing for an effective date.
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 AS 08.18.071(b) is repealed and reenacted to read: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) mechanical or specialty contractor or home inspector shall be
01 $10,000; or
02 (4) contractor whose work on one project with an aggregate contract
03 price of $10,000 or less, including all labor, materials, and other items, when the work
04 is not part of a larger or major operation or otherwise divided into contracts of less
05 than $10,000 to evade a higher bonding requirement, shall be $5,000.
06 * Sec. 3. AS 08.18.071(c) is amended to read:
07 (c) The bond required by this section remains in effect until cancelled by
08 action of the surety, the principal, or the commissioner. An action may not be
09 commenced upon the bond later than three years after its cancellation. In lieu of the
10 surety bond required by this section, the applicant may file with the
11 commissioner a cash deposit or other negotiable security acceptable to the
12 commissioner in the amount specified for bonds.
13 * Sec. 4. AS 08.18.101(a) is amended to read:
14 (a) Each applicant, at the time of applying for registration or upon renewal of
15 registration, shall file with the commissioner satisfactory evidence that the applicant
16 has in effect
17 (1) to the extent required under AS 23.30, workers' compensation
18 insurance that is purchased from a private insurer who is admitted to do business in the
19 state and that shows coverage in this state, appropriate employee classifications, and
20 rates applicable in this state, or a valid workers' compensation self-insurance
21 certificate issued by the Alaska Workers' Compensation Board; and
22 (2) public liability and property damage insurance covering the
23 applicant's contracting operations in this state in the sum of not less than $20,000 for
24 damage to property, $50,000 for injury, including death, to any one person, and
25 $100,000 for injury, including death, to more than one person; this requirement does
26 not apply to an applicant whose contracting operations are for work on projects
27 where each project has an aggregate contract price, including all labor,
28 materials, and other items of $2,500 or less.
29 * Sec. 5. AS 08.18.161(8) is repealed.
30 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to
01 APPLICABILITY. The bonding requirement in AS 08.18.071(b), as amended by sec.
02 2 of this Act, applies
03 (1) immediately to a person who is not registered as a contractor or home
04 inspector in this state under AS 08.18.011 on the effective date of this Act; and
05 (2) January 1, 2015, or upon the next renewal of the contractor's registration,
06 whichever is earlier, to a person who is registered as a contractor on the effective date of this
08 * Sec. 7. This Act takes effect January 1, 2015.
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