"An Act relating to specialty construction contractors and to construction contractor exemptions."

HB 542 lowers the limit of a project cost from $10,000 to $5,000, and expands the work that can be done by a specialty contractor. Under current law, exemptions allowed under AS 08.18.161(8) allows unlicensed persons to act as contractors, when they are not. In fact, they compete with contractors and are not required to have a bond or insurance. The $10,000 limit on the value of work they can do makes this an attractive alternative. However, having no bond or insurance gives the consumer no protection from faulty work.

Occupational Licensing issues these individuals a business licensed under a 2360 code, which says their license is "Construction related Exempt from contractors registration". If they were to show their license to someone, they would probably get the idea that they were licensed contractors.

To help alleviate the problem, Occupational Licensing has created category under the 8101 code, and called them Handymen, which is what they have always been called, yet there is nothing in law or regulations that use that name.

The changes provided in HB 542 will go a long way toward resolving the issue and provide a greater level of consumer protection.

# # #