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NOTICE OF PROPOSED CHANGES TO CONTRACTOR LICENSING IN THE REGULATIONS OF THE DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT

BRIEF DESCRIPTION: The Department of Commerce, Community, and Economic Development proposes changes to the regulations for licensing, bonding requirements, and clarification of outdated language.

The Department of Commerce, Community, and Economic Development (Department) proposes to adopt regulation changes in Title 12, Chapter 21 of the Alaska Administrative Code, dealing with contractor licensing, including the following:

12 AAC 21.010. Joint venture agreement, is proposed to be repealed.

12 AAC 21.020. Application for registration as a construction contractor, is proposed to be
repealed and readopted to replace outdated wording with current application requirements.

12 AAC 21.040. Change of name and address, is proposed to be amended to add business name for
clarification purposes, and remove the duplicate license fee.

12 AAC 21.043. Dissolution or cessation of business activities,
changes are a proposed new
subsection to outline the requirements for reactivation of a business that had previously ceased to do business.

12 AAC 21.045. Changing sole proprietorships and partnerships, is proposed to be amended to
clarify the wording for documenting workers' compensation insurance.

12 AAC 21.050. changing sole proprietorship or partnership to a corporation or other entity, is
proposed to be amended by updating the types of business entities and adding a new subsection
allowing for one business to apply for a contractor license.

12 AAC 21.070. Renewal; lapsed registration, is proposed to be repealed and readopted to outline
the requirements for reinstating a lapsed license.

12 AAC 21.075. Changing handyman, specialty, or mechanical contractor registration, is a
proposed new section that outlines the requirements for changing the category or specialty of a
current contractor registration.

12 AAC 21.080. Changing from handyman, specialty, or mechanical contractor, to general
contractor,
is proposed to be amended to add the category of handyman for the requirements to
change to a general contractor registration, and to amend the required documentation for
worker's compensation insurance to be consistent with the statutory language.

12 AAC 21.085. Changing from general contractor to handyman, specialty, or mechanical
contractor,
is proposed to be amended to add the category of handyman for the requirements to
change from a general contractor registration to another category, and to amend the required documentation for workers' compensation insurance to be consistent with the statutory language.

12 AAC 21.090. Negotiable security in place of surety bond, is amended to bring the language to
current statutory requirements that took effect January 1, 2015.

12 AAC 21.110. Prohibitions, is proposed to be amended to clarify language for prohibitions of performing contractor work without an active registration, and the use of terms that describe the
business of a contractor.

12 AAC 21.120. Cash deposits instead of bond, is proposed to be amended to clarify the language
for a cash deposit, and remove a requirement for release of a mature certificate of deposit.

12 AAC 21.130. Claims against cash deposits, is proposed to be amended to clarify language and update a statute citation.

12 AAC 21.140. Payment of claims against a cash deposit, is proposed to be amended to clarify language and bring outdated wording up to current regulatory standards.

12 AAC 21.160. Violation of bonding or insurance requirements, is proposed to be amended by
adding "the" to Administrative Procedure Act.

12 AAC 21.260. Communications contractor, is proposed to be amended by changing "telephone" to
"communications".

12 AAC 21.540. Water and sewer contractor, is proposed to be amended by adding "septic tanks" to
the scope of a water and sewer contractor.

12 AAC 21.600. Mechanical contractor, is proposed to be amended to clarify that a licensed
mechanical administrator must be licensed in the same category and assigned to the mechanical contractor registration for which the work or submission of bids is for.

12 AAC 21.660. Acceptable continuing competency activities,
is proposed to be amended to update
a name of an agency offering continuing competency activities, and allow certain agencies to provide
continuing competency activities without having to submit documentation for department approval.

12 AAC 21.663. Types of continuing competency activities, is proposed to repeal outdated regulations.

12 AAC 21.665. Contact hours, is proposed to be amended by making a conforming amendment, repealing outdated regulations, and updating regulations regarding the Alaska Home Energy Rating
System for the continuing competency activities.

12 AAC 21.680. Residential contractor endorsement, is proposed to be amended to clarify
wording and update the name of the residential endorsement examination provider.

12 AAC 21.690. Assignment of residential endorsement, is proposed to be amended to clarify
wording for who must be the residential endorsement holder in the type of contractor business.

12 AAC 21.695. Residential contractor endorsement renewal and reinstatement, is proposed to be amended regarding the renewal requirements and updating the name of the residential endorsement
examination provider.

12 AAC 21 Handyman Contractor, is a proposed new article for Handyman Contractor registration
requirements.

12 AAC 21.990. Definitions,
is proposed to be repealed and readopted to remove outdated
definitions and add new definitions.

You may comment on the proposed regulation changes, including the potential costs to private persons of complying with the proposed changes, by submitting written comments to Sher Zinn, Regulations Specialist, Division of Corporations, Business and Professional Licensing, P.O. Box 110806, Juneau, AK 99811-0806. Additionally, the Department will accept comments by facsimile at (907) 465-2974 and by electronic mail at RegulationsAndPublicComment@alaska.gov. Comments may also be submitted through the Alaska Online Public Notice System by accessing this notice on the system at http://notice.alaska.gov/201798, and using the comment link. The comments must be received not later than 4:30 p.m. on April 22, 2021. Comments received after this deadline will not be considered by the Department.

You may submit written questions relevant to the proposed action to Sher Zinn, Regulations Specialist, Division of Corporations, Business and Professional Licensing, P.O. Box 110806, Juneau, AK 99811-0806 or by e-mail at RegulationsAndPublicComment@alaska.gov.  The questions must be received at least 10 days before the end of the public comment period. The Department will aggregate its response to substantially similar questions and make the questions and responses available on the Department’s website at https://www.commerce.alaska.gov/web/cbpl/ProfessionalLicensing/ConstructionContractors.aspx, or on the Alaska Online Public Notice System. The Department may, but is not required to, answer written questions received after the 10-day cut-off date and before the end of the comment period.

If you are a person with a disability who needs a special accommodation in order to participate in this process, please contact Sher Zinn at (907) 465-1049 or RegulationsAndPublicComment@alaska.gov not later than April 15, 2021, to ensure that any necessary accommodations can be provided.

A copy of the proposed regulation changes is available on the Alaska Online Public Notice System and by contacting Sher Zinn at (907) 465-1049 or RegulationsAndPublicNotice@alaska.gov,  or go to https://www.commerce.alaska.gov/web/portals/5/pub/CON-0321.pdf.

After the public comment period ends, the Department will either adopt the proposed regulation changes or other provisions dealing with the same subject, without further notice, or decide to take no action. The language of the final regulation may be different from that of the proposed regulation. You should comment during the time allowed if your interests could be affected. Written comments and questions received are public records and are subject to public inspection.

Statutory Authority: AS 08.01.080; AS 08.01.100; AS 08.18.011; AS 08.18.013; AS 08.18.021; AS 08.18.025; AS 08.18.031; AS 08.18.051; AS 08.18.071; AS 08.18.081; AS 08.18.101; AS 08.18.121; AS 08.18.171; AS 44.33.020

Statutes Being Implemented, Interpreted, or Made Specific: AS 08.01.080; AS 08.01.100; AS 08.18.011; AS 08.18.013; AS 08.18.021; AS 08.18.025; AS 08.18.031; AS 08.18.051; AS 08.18.071; AS 08.18.081; AS 08.18.101; AS 08.18.121; AS 08.18.171; AS 44.33.020

Fiscal Information: The proposed regulation changes are not expected to require an increased appropriation.

DATE: 3/19/21
Sher Zinn, Regulations Specialist
Division of Corporations, Business and Professional Licensing

For each occupation regulated under the Division of Corporations, Business and Professional Licensing, the Division keeps a list of individuals or organizations who are interested in the regulations of that occupation. The Division automatically sends a Notice of Proposed Regulations to the parties on the appropriate list each time there is a proposed change in an occupation's regulations in Title 12 of the Alaska Administrative Code. If you would like your address added to or removed from such a list, send your request to the Division at the address above, giving your name, either your e-mail address or mailing address (as you prefer for receiving notices), and the occupational area in which you are interested.

ADDITIONAL REGULATION NOTICE INFORMATION
(AS 44.62.190(d))

1. Adopting agency:
Department of Commerce, Community, and Economic Development - Division
of Corporations, Business and Professional Licensing.

2. General subject of regulation:
Contractor licensing requirements.

3. Citation of regulation:
12 AAC 21.010 - 12 AAC 21.990.

4. Department of Law file number:
To be assigned.

5. Reason for the proposed action:
Update and clarification of current regulations and compliance
with state statutes.

6. Appropriation/Allocation:
Corporations, Business and Professional Licensing - #2360.

7. Estimated annual cost to comply with the proposed action to:
    A private person:
None known.
    Another state agency:
None known.
    A municipality:
None known.

8. Cost of implementation to the state agency and available funding (in thousands of dollars):
No costs are expected in FY 2021 or in subsequent years.

9. The name of the contact person for the regulation:
   
Sher Zinn, Regulations Specialist
    Division of Corporations, Business and Professional Licensing
    Department of Commerce, Community, and Economic Development
    Telephone: (907) 465-1049
    E-mail: sher.zinn@alaska.gov

10. The origin of the proposed action:
Division of Corporations, Business and Professional Licensing.

11. Date:
3/19/2021
      Prepared by:
Sher Zinn, Regulations Specialist
     
(907) 465-1049

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Attachments, History, Details

Revision History

Created 3/17/2021 9:46:58 AM by skzinn
Modified 3/17/2021 10:37:29 AM by skzinn
Modified 3/17/2021 1:39:54 PM by skzinn
Modified 3/17/2021 1:42:00 PM by skzinn
Modified 3/24/2021 9:45:11 AM by skzinn

Details

Department: Commerce, Community and Economic Development
Category: Regulations
Sub-Category: Notice of Proposed Regulations
Location(s): Statewide
Project/Regulation #:
 
Publish Date: 3/21/2021
Archive Date: 4/23/2021
 
Events/Deadlines:
  • Public comment deadline
    4/22/2021 4:30pm