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Sponsor Statement for HB 291
Licensing of Residential Contractors

An Act relating to the requirements for obtaining a residential contractor endorsement.

People who want to apply for a residential contractor license must do so within six months after successfully passing the residential contractor exam. CS HB 291(L&C) amends existing law by lengthening the timeline to apply for a residential contractor endorsement from six months to 12 months.

Currently, AS 08.18.025 does not allow flexibility for extenuating circumstances. If a person applying for a residential contractor endorsement misses the six-month deadline, the only recourse is to take the residential contractor exam again. The exam, four hours in length, is held four times a year. A fee of $75.00 is required each time the test is taken.

People who apply for residential contractor endorsement must first have a construction contractor license to which their residential contractor endorsement will be assigned. The Division of Occupational Licensing has explained that a common cause for people missing the six-month deadline is because the process of starting a new construction business, whether it is a sole proprietorship or a corporation, can take longer than six months. Other examples include people with health or family emergencies that cause them to miss the application deadline.

By extending the timeline for which a person applies for a residential contractor license from six months to 12 months, the law will allow a longer window of opportunity for people who are trying to get their businesses and jobs in order.

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