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28th Legislature(2013-2014)

Bill Text 28th Legislature


00 Enrolled SB 193                                                                                                         
01 Relating to bonds required for contractors; and providing for an effective date.                                        
02                           _______________                                                                               
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 AS 08.18.071(b) is repealed and reenacted to read:                                                       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                          
31 read:                                                                                                                   
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                       
07 Act.                                                                                                                    
08    * Sec. 7. This Act takes effect January 1, 2015.                                                                   
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