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HB1003.html
04 HB 1003/AP
House Bill 1003 (AS PASSED HOUSE
AND SENATE) By: Representatives Powell of the
23rd, Bruce of the 45th, Westmoreland of the
86th, Stoner of the 34th, Post 1, DeLoach of the
127th, and others
A BILL TO BE
ENTITLED AN ACT
To amend Title 43 of the Official Code of Georgia Annotated,
relating to professions and businesses, so as to create the State Licensing
Board for Residential and General Contractors; to define certain terms; to
provide for the composition, powers, and duties of the board; to provide for the
licensing of residential and general contractors; to provide for fees and an
examination; to provide for the revocation of licenses; to provide for the
renewal of licenses; to provide penalties for engaging in residential or general
contracting without a valid license; to provide for exceptions; to provide for
matters relative to the foregoing; to provide an effective date; to repeal
conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF
GEORGIA:
SECTION 1.
Title 43 of the Official Code of Georgia Annotated, relating
to professions and businesses, is amended by adding a new Chapter 41 to read as
follows:
"CHAPTER
41
43-41-1. It is the intent of
the General Assembly, in the interest of public health, safety, and welfare, to
safeguard homeowners, other property owners, tenants, and the general public
against faulty, inadequate, inefficient, and unsafe residential and general
contractors. The practice of residential and general contracting is declared to
be a business or profession affecting the public interest and this chapter shall
be liberally construed so as to accomplish the intent and purposes stated in
this Code
section.
43-41-2. As used
in this chapter, the term: (1) 'Board' means the State
Licensing Board for Residential and General
Contractors. (2) 'Business organization' means any
partnership, corporation, limited liability entity, business trust, joint
venture, or other legal entity, other than an individual person, doing business
or seeking, offering, or contracting to do business as a contractor or otherwise
performing or acting as a contractor as defined in this Code
section. (3) 'Contracting' means performing or causing
to be performed any of the activities set forth in paragraphs (4), (5), (9),
(10), and (11) of this Code section which define the types of contractors. The
offering of contracting services and the negotiation of or bid or proposal for
engagement or a contract requiring performance of these services also
constitutes contracting. (4) 'Contractor,' except as
specifically exempted by this chapter, means a person who is qualified under
this chapter and who, for compensation, contracts to, offers to undertake or
undertakes to, submits a bid or a proposal to, or personally or by others
performs the construction or the management of the construction of improvements
to real property for an owner, including the construction or improvement of,
addition to, or the repair, alteration, remodeling, or demolition of any
building, bridge, or other structure, including related improvements to the real
property, for use by the owner or by others or for resale to others. The term
'contractor' for purposes of this chapter shall include a person who contracts
to, undertakes to, or submits a bid or proposal to perform, or otherwise does
himself or herself perform, for an owner: (A)
Construction management services relative to the performance by others of such
construction activities where the person performing such construction management
services is at risk contractually to the owner for the performance and cost of
the construction; and (B) Services of a contractor as
part of performance of design-build services, whether as a prime contractor,
joint venture partner, or as a subcontractor to a design professional acting as
prime contractor as part of a design-build entity or
combination. Both residential and general contractors,
in addition to contractors licensed under Chapter 14 of this title to
perform such work or any component thereof, shall be permitted to construct
storm-water management systems comprising any storm-water conveyance or
storm-water detention facility that moves storm or surface water from a specific
point on a wholly contained construction project site to another specific point
on the same project site and which are wholly contained within the project site
and are not part of or connected to any public or private water treatment
system, waste-water treatment system, or storm-water
system. (5) 'General contractor' means a contractor
whose services are unlimited as to the type of work which he or she may do and
who may contract for, undertake to perform, submit a bid or a proposal or
otherwise offer to perform, and perform any activity or work as a contractor
requiring licensure under this chapter including within its scope any work
requiring licensure under Chapter 14 of this title; provided, however, that any
work contractually undertaken by a general contractor in the nature of
electrical contracting, plumbing, conditioned air contracting, low voltage
contracting, or utility contracting which falls within the licensing
requirements of Chapter 14 of this title may not be performed by the general
contractor but shall only be performed by a person who is duly licensed to
perform such work under Chapter 14 of this title. The construction of all
private, commercial, institutional, industrial, public, and other buildings and
structures under contract with or engagement directly by an owner shall be
undertaken by a general contractor, except as otherwise expressly set forth in
or excluded from operation of this chapter. (6) An
'owner' of real property means a person or entity that has a majority ownership
interest in the real property to be improved and for whom an improvement is made
or who contracts with or engages, directly or through an agent, the contractor
to perform the construction work or services. (7)
'Qualifying agent' means a person who possesses the requisite skill, knowledge,
and experience and has the responsibility to supervise, direct, manage, and
control all of the contracting activities of a contractor doing business in the
form of a business organization, with which he or she is affiliated by
employment or ownership; who has the responsibility to supervise, direct,
manage, and control construction activities on a job for which he or she has
obtained the building permit; and whose technical and personal qualifications
have been determined by investigation and examination as provided in this
chapter, as attested by the division. (8) 'Real
property' means the real estate, or an interest therein, that is improved,
including leaseholds, tenements, and easements, and improvements constructed or
placed thereon. (9) 'Residential contractor' means any
contractor who may contract for, undertake to perform, submit a bid or a
proposal or otherwise offer to perform, and perform any activity or work as a
contractor requiring licensure under this chapter for a fixed price, commission,
fee, wage, or other compensation or who undertakes any activity or work on his
or her own behalf or for any person or business organization that is not
licensed as a licensed residential contractor pursuant to this chapter where
such activity or work falls into the category of residential-basic contractor or
residential-light commercial contractor as defined in this Code section and
where the total value of the work or activity or of the compensation to be
received by the contractor for such activity or work, whichever is the higher,
exceeds $2,500.00. The term 'residential contractor' shall include both a
residential-basic contractor and a residential-light commercial contractor,
except where otherwise expressly stated. The work or activity performed by a
residential contractor may include within its scope any work requiring licensure
under Chapter 14 of this title; provided, however, that any work contractually
undertaken by a residential contractor in the nature of electrical contracting,
plumbing, conditioned air contracting, low voltage contracting, or utility
contracting which falls within the licensing requirements of Chapter 14 of this
title may not be performed by the residential contractor but shall only be
performed by a person who is duly licensed to perform such work under Chapter 14
of this title. (10) 'Residential-basic contractor'
means and encompasses a person who performs contractor work or activity relative
to detached one-family and two-family residences and one-family townhouses not
over three stories in height and their accessory buildings and
structures; (11) 'Residential-light commercial
contractor' means and encompasses a person who performs any contractor work or
activity performed by a residential-basic contractor and, additionally, shall
include such contractor work or activity related to multifamily and multiuse
light commercial buildings and structures, and their related accessory buildings
and structures, which are less than four stories in height; less than 25,000
square feet in aggregate interior floor space, except as otherwise provided in
this chapter; and are constructed of wood or light gauge metal frame, brick
veneer, prefabricated, or manufactured type of construction; or are
preengineered steel buildings not exceeding 50,000 square feet of interior floor
space; provided that such buildings or structures are not of the type of
building or structure that would constitute a special hazard to property or to
life and safety of persons as defined in subparagraphs (A), (C), (D), (E), (F),
(G), (G.1), (H), (I), and (J) and subparagraph (B), as it applies to a building
of four or more stories, of paragraph (1) of subsection (b) of Code Section
25-2-13. (12) 'Specialty contractor' means a
contractor whose scope of work and responsibility is of limited scope dealing
with only a specific trade and directly related and ancillary work and whose
performance is limited to such specialty construction work requiring special
skill and requiring specialized building trades or crafts, including, but not
limited to, such activities, work, or services requiring licensure under Chapter
14 of this
title.
43-41-3. (a) There
is created the State Licensing Board for Residential and General Contractors
consisting of 14 members, ten of whom shall be appointed by the Governor for
five-year terms, two of whom shall be appointed by the Speaker of the House of
Representatives for five-year terms, and two of whom shall be appointed by the
Senate Committee on Assignments or successor by Senate Rule for five-year terms.
The board shall be assigned to the Secretary of
State´s
office for administrative purposes and shall be under the jurisdiction of the
division director and shall operate in accordance with and pursuant to the
provisions of Chapter 1 of this title, as applicable. The board shall be
comprised of two divisions: the residential contractor division, having
jurisdiction of and authority over the two subcategories of residential
contracting, residential-basic contractors and residential-light commercial
contractors, and the general contractor division. Seven members shall be
appointed and serve as members of the residential contractor division of the
board and seven members shall be appointed and serve as members of the general
contractor division of the board. Members shall serve until the expiration of
their respective terms and until their successors are appointed and qualified.
Vacancies occurring during a term shall be filled by appointment of the Governor
for the remainder of the unexpired term and such replacement shall meet the
requirements and criteria of selection of the person previously holding the
vacant position. To be eligible to serve on the respective divisions of the
board, each contractor member shall be and remain actively involved in the
construction contracting business and shall have been so engaged for a period of
not less than five consecutive years before the date of appointment in the
particular contracting business, as a residential contractor or general
contractor, corresponding to the division for which such person is appointed.
Any contractor members whose term continues after or who are appointed to terms
commencing two years from the date that this chapter becomes effective must also
have been licensed and certified by the respective division of the board to
operate as a contractor in the category to which the member is appointed. The
position of any appointive member of the board who, during his or her term of
appointment, shall cease to meet the qualifications for original appointment
shall be immediately vacated. No member of the board shall be appointed to
serve more than two full terms. (b) The residential
contractor division shall consist of seven members , one of whom shall be
appointed by the Speaker of the House of Representatives and one of whom shall
be appointed by the Senate Committee on Assignments, and, except as otherwise
expressly stated in this chapter, shall have jurisdiction of and authority over
the practice of the two subcategories of residential contracting,
residential-basic contractors and residential-light commercial contractors.
Five members shall be residential contractors eligible for licensure under this
chapter. The members appointed by the Speaker of the House of Representatives
and the Senate Committee on Assignments or successor by Senate Rule shall be
residential contractors. Effective July 1 of the second year after this chapter
becomes effective, all residential contractor members shall be required to be
licensed under this chapter. At least two of the residential contractor members
shall be qualified to perform residential-light commercial type projects; three
shall be qualified and shall predominantly perform residential-basic type
projects; one shall be a residential contractor whose business predominately
involves remodeling projects; one shall be a residential contractor who
constructs at least an average of 20 residences per year; and all must be
geographically diverse. One member shall be a public building official and one
member shall be a public member. The public member shall have no ties with the
residential construction industry and shall represent the interests of the
public at large. The initial member terms on the residential contractor
division shall be staggered so that all terms do not expire simultaneously.
Three members shall serve initial terms of five years, three members shall serve
initial terms of four years, and one member shall serve an initial term of three
years. The residential contractor division shall meet at least six times each
year for the purpose of transacting such business as may properly come before
it. (c) The general contractor division shall consist
of seven members, one of whom shall be appointed by the Speaker of the House of
Representatives and one of whom shall be appointed by the Senate Committee on
Assignments or successor by Senate Rule, and, except as otherwise expressly
stated in this chapter, shall have jurisdiction of and authority over the
practice of general contracting. Five members shall be general contractors
eligible for licensure under this chapter. The members appointed by the Speaker
of the House of Representatives and the Senate Committee on Assignments or
successor by Senate Rule shall be general contractors. Effective July 1 of the
second year after this chapter becomes effective, all general contractor members
shall be required to be licensed under this chapter. At least two of the
general contractor members shall be small volume builders with an annual
contracting volume of less than $5 million and all of whom must be
geographically diverse. One member shall be a currently licensed or registered
architect or engineer and one member shall be a public building official. The
initial member terms on the general contractor division shall be staggered so
that all terms do not expire simultaneously. Three members, including at least
two contractor members, shall serve initial terms of five years; three members,
including at least two contractor members, shall serve initial terms of four
years; and one member shall serve an initial term of three years. The general
contractor division shall meet at least six times each year for the purpose of
transacting such business as may properly come before
it.
43-41-4. (a) The
initial members of the board shall be appointed no later than July 30 of the
year in which this chapter becomes effective. The board shall meet within 30
days after its appointment at a time and place to be designated by the Governor
and organize by electing a chairperson and a vice chairperson, each to serve for
a one year term. (b) The office of chairperson of the
board shall be rotated between the two divisions enumerated in this chapter,
with the office of vice chairperson to be held by a member of the division other
than that in which the chairperson serves, unless the board, through its rules
and regulations, provides otherwise. Any vacancy in the office of chairperson
shall be filled by the members for the unexpired term. The person selected to
fill the vacancy shall be a member of the same division as the chairperson whose
departure has created the vacancy. (c) The board shall
meet at the call of the chairperson or upon the recommendation of a majority of
its members. Eight members of the board, including at least three members from
each of its divisions, shall constitute a quorum for transaction of business by
the board. (d) Each division within the board shall
also elect from its membership a chairperson and a vice chairperson who shall
each serve for a term of two years. Any vacancy in the office of either the
chairperson or vice chairperson shall be filled by one of the members of the
respective division for the unexpired term. (e) Any
member elected chairperson of a division may not serve more than two consecutive
full terms of office. (f) Each division shall carry
out its powers and duties as provided for in this chapter with the assistance of
the division director and staff of the professional licensing boards division of
the Secretary of
State´s
office and the officers and staff of the board. Each division of the board
shall operate and transact its business independently of the other division and
of the board at large, except as required by this chapter and to the extent of
common interests and functions, including staffing and administration. Each
division of the board shall have delegated from the board the power and
authority to take all appropriate actions in the organization and administration
of each respective division and the effectuation and implementation of the
licensing and enforcement processes required under this chapter, subject to
ultimate oversight and review by the board. (g) The
divisions of the board shall meet at the call of the chairperson of the
division. (h) The board shall not take action on any
matter specifically delegated to and under the authority and control of the one
of its divisions unless at least four of its members from the affected division
are present and participating in such action or
decision. (i) The division director, or his or her
designee, shall keep a record of the proceedings of the board and its respective
divisions.
43-41-5. (a)
The board shall meet at least twice each year for the purpose of transacting
such business as may properly come before it and of overseeing the operation of
its divisions. (b) The board and its divisions shall
have the power to: (1) Request from the various
departments, agencies, and authorities of the state and its political
subdivisions and their agencies and authorities such available information as
they may require in their work; and all such departments, agencies, and
authorities shall furnish such requested available information to the board and
its divisions within a reasonable time; (2) Provide by
regulation for reciprocity with other states or territories of the United States
in the licensing of residential and general contractors, provided that such
other states have requirements substantially equal to the requirements in force
in this state for registration, licensure, or certification and that any such
contractor holding a current and valid license, certificate, or registration
from another state or territory seeking licensure by way of reciprocity shall
demonstrate that such applicant meets, in the discretion of the respective
division, the qualifications, requirements, and criteria set forth in Code
Section 43-41-6, other than the requirement to take and pass an examination as
set forth in subsection (d) of Code Section 43-41-6, and that such applicant is
otherwise in compliance with all requirements of the State of Georgia for
transaction of such business within this state; provided, further, that a
similar privilege is offered to residents of this state by the other state or
territory; (3) Establish and adjust fees as necessary
within the limits set forth in Chapter 1 of this
title; (4) Adopt official seals for their use and
change them at pleasure; (5) Establish the policies
and procedures for regulating the businesses of residential contracting and
general contracting; (6) Determine qualifications for
licensure or certification, including such experience requirements as the board
deems necessary; and (7) Promulgate and adopt rules
and regulations necessary to carry out this
chapter. (c) Regarding the powers and authorities
conferred by this Code section relative to the residential-light commercial
contractor subcategory of the residential contractor classification under this
chapter, due to the characteristics of such subcategory, such powers and
authorities shall be delegated to and conferred upon, in the first instance, a
combined and overlapping subdivision comprising four members of both of the
divisions, two of whom shall be the residential-light commercial qualified
members of the residential contractor division and two of whom shall be the
small volume qualified members of the general contractor division, with neither
division having sole oversight and control of such powers and authorities. The
chairperson of such combined subdivision shall be rotated annually between the
chairperson of the residential contractor division and the chairperson of the
general contractor division, with the residential contractor chairperson
initially serving as chairperson. The combined subdivision shall meet at the
call of such chairperson. However, regarding the actual issuance of licenses
under this chapter for residential-light commercial contracting and any powers
and authorities relative to administration, oversight, control, or disciplinary
action of persons issued such licenses, pursuant to Code Sections 43-41-10,
43-41-11, 43-41-13, 43-41-15, and 43-41-16, the residential contractor division
shall have full power and authority. Any determinations made or actions taken
by this subdivision shall be subject to the ultimate review, oversight, control,
power, and authority of the board. (d)(1) The division
director is authorized to make, or cause to be made through employees or
contract agents of the board, such investigations as he or she or the board may
deem necessary or proper for the enforcement of the provisions of this chapter.
Any person properly conducting an investigation on behalf of the board shall
have access to and may examine any writing, document, or other material relating
to the fitness of any licensee or applicant. The division director or his or
her appointed representative may issue subpoenas to compel such access upon a
determination that reasonable grounds exist for the belief that a violation of
this chapter or any other law relating to the practice of residential or general
contracting may have taken place. (2) The results of
all investigations initiated by the board shall be reported solely to the board,
and the records of such investigations shall be kept for the board by the
division director, with the board retaining the right to have access at any time
to such records. No part of any such records shall be released, except to the
board, for any purpose other than a hearing before the board, nor shall such
records be subject to subpoena; provided, however, that the board shall be
authorized to release such records to another enforcement agency or lawful
licensing authority. (3) The board shall have the
authority to exclude all persons during its deliberations on disciplinary
proceedings and to discuss any disciplinary matter in private with a licensee or
applicant and the legal counsel of that licensee or
applicant. (e) A person, firm, corporation,
association, authority, or other entity shall be immune from civil and criminal
liability for reporting or investigating the acts or omissions of a licensee or
applicant which violate the provisions of this chapter or any other provision of
law relating to a
licensee´s
or
applicant´s
fitness to practice as a licensed residential or general contractor or for
initiating or conducting proceedings against such licensee or applicant, if such
report is made or action is taken in good faith, without fraud or
malice. (f) The denial of a license on grounds other
than those enumerated in this chapter, the issuance of a private reprimand, the
denial of a license by reciprocity, the denial of a request for reinstatement of
a revoked license, or the refusal to issue a previously denied license shall not
be considered to be a contested case within the meaning of Chapter 13 of Title
50, the 'Georgia Administrative Procedure Act.' Notice and hearing within the
meaning of Chapter 13 of Title 50 shall not be required, but the applicant or
licensee shall be allowed to appear before the board if he or she so
requests. (g) If any licensee or applicant fails to
appear at any hearing after reasonable notice, the board may proceed to hear the
evidence against such licensee or applicant and take action as if such licensee
or applicant had been present. A notice of hearing, initial or recommended
decision, or final decision of the board in a disciplinary proceeding shall be
served upon the licensee or applicant by certified mail or statutory overnight
delivery, return receipt requested, to the last known address of record with the
board. If such material is returned marked 'unclaimed' or 'refused' or is
otherwise undeliverable and if the licensee or applicant cannot, after diligent
effort, be located, the division director shall be deemed to be the agent for
service for such licensee or applicant for purposes of this Code section, and
service upon the division director shall be deemed to be service upon the
licensee or applicant. (h) The voluntary surrender of
a license shall have the same effect as a revocation of the license, subject to
reinstatement in the discretion of the board. (i) This
Code section shall apply equally to all licensees or applicants whether
individuals, partners, or members of any other incorporated or unincorporated
associations, corporations, business organizations, or other associations of any
kind whatsoever. (j) All subpoenas issued pursuant to
the authority granted in this chapter shall be subject to the general rules of
law with respect to distance, tender of fees and expenses, and protective
orders; and any motion made with respect thereto shall be made to and passed on
by a judge of the superior court of the county of residence of the person to
whom the subpoena is
directed.
43-41-6. (a)
Anyone seeking to be licensed as a residential contractor or as a general
contractor in this state shall file an application on a form provided by the
residential contractor or general contractor division, respectively, accompanied
by an application fee as provided by the board. Such an application may be
submitted either by: (1) An individual person seeking
issuance of a license in his or her own name for purposes of engaging in the
profession of residential or general contracting in his or her own name or doing
business as an individual in a trade name as a sole proprietorship;
or (2) An individual person affiliated by ownership or
employment with and acting as a qualifying agent for a business organization
seeking to engage in the profession of residential or general contracting in the
name of the business organization in accordance with and pursuant to Code
Section 43-41-9. Additionally, all applicants must
submit to and successfully pass an examination prepared by the appropriate
division, except where an applicant is otherwise qualified for licensure and has
satisfied the appropriate division requirements and regulations for licensure
pursuant to Code Section 43-41-8 exempting such applicant from the examination
requirement or where the applicant is an individual acting as a qualifying agent
for a business organization and has previously obtained and maintained
continuously a license issued by the appropriate
division. (b) A person shall be eligible for licensure
as a residential-basic contractor by the residential contractor division if the
person: (1) Is at least 21 years of
age; (2) Is of a good character and is otherwise
qualified as to competency, ability, and integrity; (3)
Has at least two years of proven experience working as or in the employment of a
residential contractor, predominantly in the residential-basic category, or
other proven experience deemed substantially similar by the division;
and (4) Has had significant responsibility for the
successful performance and completion of at least two projects falling within
the residential-basic category in the two years immediately preceding
application. (c) A person shall be eligible for
licensure as a residential-light commercial contractor by the residential-light
commercial subdivision if the person: (1) Is at least
21 years of age; (2) Is of a good character and is
otherwise qualified as to competency, ability, and
integrity; (3) Meets eligibility requirements
according to one of the following criteria: (A) Has
received a baccalaureate degree from an accredited four-year college or
university in the field of engineering, architecture, construction management,
building construction, or other field acceptable to the division and has at
least one year of proven experience working as or in the employment of a
residential contractor, general contractor, or other proven experience deemed
substantially similar by the division; (B) Has a
combination acceptable to the division of academic credits from any accredited
college-level courses and proven practical experience working as or in the
employment of a residential contractor, general contractor, or other proven
experience deemed substantially similar by the division equaling at least four
years in the aggregate. For purposes of this subparagraph, all university,
college, junior college, or community college-level courses shall be considered
accredited college-level courses; or (C) Has a total
of at least four years of proven active experience working in a construction
industry related field, at least two of which shall have been as or in the
employment of a residential contractor, or other proven experience deemed
acceptable by the division; and (4) Has had
significant responsibility for the successful performance and completion of at
least two projects falling within the residence-light commercial category in the
four years immediately preceding application. (d) A
person shall be eligible for licensure as a general contractor by the general
contractor division if the person: (1) Is at least 21
years of age; (2) Is of a good character and is
otherwise qualified as to competency, ability, integrity, and financial
responsibility; and (3) Meets eligibility requirements
according to one of the following criteria: (A) Has
received a baccalaureate degree from an accredited four-year college or
university in the field of engineering, architecture, construction management,
building construction, or other field acceptable to the division and has at
least one year of proven experience working as or in the employment of a general
contractor or other proven experience deemed substantially similar by the
division; (B) Has a combination acceptable to the
division of academic credits from any accredited college-level courses and
proven practical experience working as or in the employment of a general
contractor or other proven experience deemed substantially similar by the
division equaling at least four years in the aggregate. For purposes of this
subparagraph, all university, college, junior college, or community
college-level courses shall be considered accredited college-level courses;
or (C) Has a total of at least four years of proven
active experience working in a construction industry related field, at least two
of which shall have been as or in the employment of a general contractor, or
other proven experience deemed acceptable by the division and at least one of
which shall have been in or relating to administration, marketing, accounting,
estimating, drafting, engineering, supervision, or project management, or
functions deemed substantially similar by the
division. (e) Before being entitled to take an
examination or otherwise qualify for issuance of a license, an applicant must
show to the satisfaction of the residential contractor division or general
contractor division from the application and proofs furnished that the applicant
is possessed of a good character and is otherwise qualified as to competency,
ability, integrity, and financial responsibility. The application shall include
a list of all persons, entities, and business organizations that the applicant
will be affiliated with as a licensed residential contractor or general
contractor, whether by way of employment, ownership, serving as an owner or
director, partnership, or membership or by serving as a qualifying agent under
this chapter. Applicants for a general contractor license shall provide proof
of a minimum net worth in an amount which is specified by the general contractor
division. Additionally, all applicants shall provide proof of general liability
insurance and of
workers´
compensation insurance as required by the laws of this state in their name.
However, if and to the extent the applicant is submitted as a person seeking to
act as a qualifying agent of a particular business organization, such proofs and
information shall relate and pertain to such business organization rather than
the individual applicant, subject to the limitations set forth in subsection (d)
of Code Section 43-41-9. All applicants shall also provide their social
security numbers, if applying as an individual, or the federal taxpayer
identification numbers of any business organization for which the applicant is
seeking licensure as a qualifying agent. Applicants for a general
contractor´s
license shall also provide suitable verification of tax payments in a form and
manner and for the duration prescribed by the general contractor division;
provided, however, that where the application is seeking license as a qualifying
agent of a business organization, such tax verification and information shall
relate and pertain to that business organization. The decision of the
appropriate division as to the qualifications of applicants shall, in the
absence of fraud, be conclusive. A certificate by the insurer or other
appropriate evidence of such coverages shall be maintained with the appropriate
division and shall be a condition of renewal. A licensee, on his or her own
behalf or where acting as a qualifying agent on behalf of the business
organization so qualified, must notify the appropriate division in writing
within 30 days of any changes in the information required to be on file with
such division, including, but not limited to, the
licensee´s
and, if the licensee is acting as a qualifying agent for any business
organization, such business
organization´s
current mailing address, insurance coverages, and affiliated
entities. (f)(1) The residential contractor division
and the general contractor division shall each conduct an examination of all
qualified applicants, except those exempted from the examination requirement
pursuant to Code Section 43-41-8. (2) The residential
contractor division shall conduct separate examinations for applicants for
residential-basic and residential-light commercial licenses for the purpose of
determining a particular
applicant´s
ability to make a practical application of his or her knowledge of the
profession of residential contracting in the particular subcategory for which a
license is sought; the
applicant´s
qualifications in reading plans and specifications; his or her knowledge of
building codes, estimating costs, construction, ethics, contracting, and other
similar matters pertaining to such residential contracting business; his or her
knowledge as to the responsibilities of a residential contractor to the public
and to owners, subcontractors, and suppliers; and his or her knowledge of the
requirements of the laws of this state relating to residential-basic and
residential light-commercial contractors, construction,
workers´
compensation, insurance, and liens. (3) The general
contractor division shall conduct an examination to ascertain the particular
applicant´s
ability to make a practical application of his or her knowledge of the
profession of commercial general contracting; the
applicant´s
qualifications in reading plans and specifications; his or her knowledge of
building codes, estimating costs, construction, ethics, contracting, and other
similar matters pertaining to the general contracting business; his or her
knowledge as to the responsibilities of a general contractor to the public and
to owners, subcontractors, and suppliers; and his or her knowledge of the
requirements of the laws of this state relating to general contractors,
construction,
workers´
compensation, insurance, surety bonding, and liens. (4)
If the results of the
applicant´s
examination are satisfactory to the appropriate division, or he or she is
exempted from the examination requirement under Code Section 43-41-8, and if he
or she and any affiliated business organization has met the other qualifications
and requirements set forth in this Code section, then the appropriate division
shall issue to the applicant a license to engage in business as a residential or
general contractor in this state, as provided in such license, in his or her own
name as a sole proprietor or as a qualifying agent for the affiliated business
organization and in the name of such business organization, pursuant to and in
accordance with the requirements set forth in Code Section 43-41-9. A
residential contracting license shall indicate for which of the two
subcategories, residential-basic or residential-light commercial, the licensee
is qualified. (g) Any otherwise qualified applicant
failing this examination may be reexamined at any regularly scheduled
examination within one year of the date of original application upon payment of
a reexamination fee, in an amount to be set by the board, without need to
resubmit an application, unless any information set forth in the previously
submitted application is no longer accurate or complete. Anyone requesting to
take the examination a third or subsequent time shall wait at least one calendar
year after the taking of the last examination and shall submit an application
with the appropriate examination fees. (h) A
residential contractor license, indicating whether relating to the
residential-basic or residential-light commercial category, or general
contractor license shall be issued to an applicant who successfully completes
the respective requirements therefor upon the payment of fees prescribed by the
board. (i) Such licenses shall be renewable
biennially. Licenses may be renewed subsequent to their expiration within six
months of the date of expiration by mailing written application for renewal and
paying a late renewal fee as determined by the board. After six months has
elapsed from the date of expiration, such license may be reinstated in
accordance with the rules and regulations of the
board. (j) The division director shall give advance
notice by mail to each person holding a license under this chapter of the date
of the expiration of the certificate of registration and the amount of the fee
required for renewal at least one month prior to the expiration date, but the
failure to receive such notice shall not avoid the expiration of any license not
renewed in accordance with this Code section. (k) As a
condition of renewal, the appropriate division may require licensees to complete
division approved continuing education of not more than three hours annually for
a residential-basic license, six hours annually for a residential-light
commercial license, and eight hours annually for a general contractor
license.
43-41-7. A
licensed residential contractor and any affiliated entities shall offer a
written warranty in connection with each contract to construct, or superintend
or manage the construction of, any single family residence where the total value
of the work or activity or the compensation to be received by the contractor for
such activity or work exceeds $2,500.00. The residential contractor division
shall establish the minimum requirements of such warranty. The parties to the
warranty may agree to submit any or all disputes arising under the warranty to
arbitration. Such agreement to arbitrate shall be enforceable as provided in
Part 1 of Article 1 of Chapter 9 of Title 9, the 'Georgia Arbitration
Code.'
43-41-8. (a)
Notwithstanding any other provision of this chapter to the contrary, the
following persons desiring to qualify for a residential contractor license or a
general contractor license under the provisions of this chapter shall be
eligible for issuance of a such a license by the appropriate division without
examination, provided that such person submits a proper application and proofs,
pays or has paid the required fees, otherwise meets the requirements of Code
Section 43-41-6 for licensure, and is not otherwise in violation of this
chapter: (1) Any person who holds a current and valid
license to engage in the comparable category of residential or general
contracting issued to him or her by any governing authority of any political
subdivision of this state which requires passing an examination which is
substantially similar to the state examination for residential or general
contractors, provided that such person is a Georgia resident and citizen, if an
individual applying in his or her own behalf, or is seeking licensure as a
qualifying agent for a business organization incorporated in Georgia or
otherwise authorized and certified to transact business in Georgia with a
regular office and place of business in Georgia currently and having had such
office and place of business continuously for the five years immediately
preceding such application; provided, further, that the examination results are
made available to the appropriate division. Such application and request for
exemption must be submitted within the time limits set forth in subsection (a)
of Code Section 43-41-17; (2) Any person who has
successfully and efficiently engaged in the comparable category of residential
or general contracting in this state as provided in this Code section; provided,
however, that such person shall be either a resident and citizen of the state of
Georgia or, if applying as a qualifying agent for a business organization, such
business organization shall be either incorporated in Georgia or is a business
organization otherwise authorized and certified to transact business in Georgia
with a regular office and place of business in Georgia currently and having had
such office and place of business continuously for the five years immediately
preceding such application; provided, further, that such application and request
for exemption is submitted within the time limits set forth in subsection (a) of
Code Section 43-41-17. To prove that he or she has successfully engaged in
residential-basic or residential-light commercial projects, the person shall be
required to give evidence of three successful projects located in Georgia which
were successfully completed over the period of five years immediately prior to
the time of application; evidence of ten successfully completed
residential-basic or residential-light commercial projects located in Georgia
over the period of ten years immediately prior to the time of application; or
evidence that he or she has participated in or been engaged in residential-basic
or residential-light commercial construction in a supervisory or management
capacity for seven of the ten years immediately prior to the time of
application. To prove that he or she has successfully engaged in commercial
general contracting, the person submitting the application shall be required to
give evidence of five successful general contracting projects located in Georgia
which were successfully completed over the period of five years immediately
prior to the time of application or evidence of ten successful general
contracting projects located in Georgia which were successfully completed over
the period of ten years immediately prior to the time of application, such
projects having been performed either by such person acting as an individual or
by a business organization in which such individual person was affiliated by
employment or ownership and over which such person had general oversight and
management responsibilities; and (3) Any person who
holds a current and valid license to practice a comparable category of
residential or general contracting issued by another state or territory of the
United States, where either such state or territory has entered into a
reciprocal agreement with the board and divisions for the recognition of
contractor licenses issued in that state or territory, or such application is
pursuant to and in accordance with the regulations and requirements for
reciprocity promulgated by the divisions in accordance with subsection (b)
of Code Section 43-41-5. Additionally, such application shall meet the
following requirements: (A) The criteria for issuance
of such license or certification by such other state or territory, including the
requirement to successfully complete an examination, were substantially
equivalent to
Georgia´s
current license criteria; (B) The application
requirements and application form submitted to the other state or territory upon
which such license was issued and the examination form and substance are
available for review by the appropriate division and the examination results are
made available to the division; (C) The applicant
shall demonstrate that he or she meets the qualifications, requirements, and
criteria set forth in subsections (a), (b), (c), and (d) of Code Section
43-41-6; and (D) The applicant is otherwise in
compliance with all requirements of this state for transaction of such business
within this state; provided, however, that such application and request for
exemption shall be submitted within the time limits set forth in subsection (a)
of Code Section 43-41-17. (b) Any applicant for
issuance of a residential contractor or general contractor license under this
title who shall seek exemption from the examination requirement under subsection
(f) of Code Section 43-41-6, on any basis set forth above, shall have the burden
of establishing to the satisfaction and within the discretion of the appropriate
division that the requirements for such exemption have been satisfied. The
decision of such division as to the satisfaction of the requirements for such
exemption from taking the examination shall, in the absence of fraud, be
conclusive.
43-41-9. (a)
If an individual applicant proposes to engage in residential or general
contracting in the
individual´s
own name or a trade name where the individual is doing business as a sole
proprietorship, the license shall be issued only to that individual. Where an
applicant under this chapter is seeking issuance of a residential or general
contractor license on behalf and for the benefit of a business organization
seeking to engage in residential or general contracting as a business
organization, or in any name other than the
applicant´s
legal name or trade name where the applicant is doing business as a sole
proprietorship, the application for a license under this chapter must be
submitted by and through an individual qualifying agent for such business
organization or entity and expressly on behalf of such business organization or
entity. In such case, the license shall be issued to the individual qualifying
agent and to the affiliated business organization or entity on whose behalf the
application was made. It shall be unlawful for any person, firm, corporation,
or association to operate a business organization or entity engaged in the
business of residential or general contracting without first obtaining a license
from the appropriate division. The appropriate division shall not issue a
license to any business organization or entity to engage in residential or
general contracting unless such business organization or entity employs at least
one currently licensed residential or general contractor who is actually engaged
in the practice of residential or general contracting for such business
organization or entity on a full-time basis and provides adequate supervision
and is responsible for the projects of such business organization or entity. A
business organization may allow more than one person to act as a qualifying
agent for such organization, subject to each such individual qualifying agent
having successfully satisfied the requirements for issuance of a license under
this chapter and having obtained issuance of such a license by the appropriate
division. Each such business organization shall have at least one qualifying
agent in order to be considered authorized to engage in such contracting
business. (b) The application for a license by a
qualifying agent must include an affidavit on a form provided by the board
attesting that the individual applicant has final approval authority for all
construction work performed by the business organization or entity and that the
individual applicant has final approval authority on all business matters,
including contracts and contract performance and financial affairs of the
business organization or entity. (c) A joint venture
is considered a separate and distinct organization for licensing purposes under
this chapter and must be qualified and licensed in accordance with the
appropriate
division´s
rules and regulations either: (1) In its own name as a
separate business organization; or (2) By each of the
members of the joint venture doing business as a residential contractor or
general contractor holding, as an individual or as a business organization
acting through its qualifying agent, a valid and current residential or general
contractor´s
license issued by the appropriate division. Each such
licensed individual or qualifying agent shall be considered a qualifying agent
of such joint venture. (d) If, during the period
encompassed by a license issued to a qualifying agent acting for and on behalf
of an affiliated business organization, there is a change in any information
that is required to be stated on the application, the business organization
shall, within 45 days after such change occurs, mail the correct information to
the appropriate division. (e)(1) At least one
qualifying agent shall be licensed under this chapter in order for the business
organization to obtain a license as a residential or general contractor. If any
qualifying agent ceases to be affiliated with such business organization, for
any reason, he or she shall so inform the division having jurisdiction. In
addition, if such qualifying agent is the only qualifying agent licensed
hereunder affiliated with the business organization, the business organization
shall promptly notify the appropriate division of the termination of the
relationship with that qualifying agent and shall have 120 days from the
termination of the qualifying
agent´s
affiliation with the business organization to employ another qualifying agent
and submit an application for licensure under the new qualifying agent. The
submission of such application shall serve to maintain the licensed status of
the business organization pending and subject to approval of such application by
the appropriate division; provided that, should such application be denied by
that division, then, after passage of the 120 day period, the business
organization shall cease to be considered licensed as a residential or a general
contractor unless and until a new application is submitted and approved by the
appropriate division. In such circumstance, the affected business organization
may not thereafter engage in residential or general contracting until a new
qualifying agent is employed, unless the appropriate division has granted a
temporary nonrenewable license to the financially responsible officer, the
president or chief executive officer, a partner, or, in the case of a limited
partnership, the general partner, who thereafter shall assume all
responsibilities of a qualifying agent for the business organization or entity.
This temporary license shall only allow the entity to proceed with incomplete
contracts already in progress. For the purposes of this paragraph, an
incomplete contract is one which has been awarded to, or entered into by, the
business organization prior to the cessation of affiliation of the qualifying
agent with the business organization or one on which the business organization
was the low bidder and the contract is subsequently awarded, regardless of
whether any actual work has commenced under the contract prior to the qualifying
agent ceasing to be affiliated with the business
organization. (2) The qualifying agent shall inform
the division having jurisdiction in writing when he or she proposes to engage in
contracting in his or her own name or in affiliation with another business
organization, and he or she or such new business organization shall supply the
same information to the division as required of applicants under this chapter.
Such person shall be deemed to be a licensed residential or general contractor
for the original term of his or her license, provided that he or she qualified
for such license based on his or her own personal qualifications as to financial
responsibility and insurance. Otherwise, such individual shall be required to
submit a new application demonstrating satisfaction of such financial and
insurance requirements himself or herself or by the business organization he or
she desires to qualify, but such person shall be entitled to continue engaging
in the business of residential or general contracting in accordance with and
under his or her previously issued license unless and until the appropriate
division determines that the person seeking issuance of the license no longer
meets these requirements. (3) Upon a favorable
determination by the division having jurisdiction, after investigation of the
financial responsibility, if applicable, and insurance of the qualifying agent
and the new business organization, the division shall issue, without an
examination, a new license in the name of the qualifying agent and in the name
of the new affiliated business organization. (f)
Disciplinary action and other sanctions provided in this chapter may be
administered against a business organization operating under a license issued
through its licensed qualifying agent or agents in the same manner and on the
same grounds as disciplinary actions or sanctions against an individual or
license holder acting as its qualifying agent under this chapter. The divisions
or the board may deny the license to a qualifying agent for any business
organization if the qualifying agent or business organization has been involved
in past disciplinary actions or on any grounds for which individual licenses can
be denied. (g) Each qualifying agent shall pay the
appropriate division an amount equal to the original fee for a license applied
for on behalf of a new business organization. If the qualifying agent for a
business organization desires to qualify additional business organizations, the
division shall require him or her to present evidence of the financial
responsibility, if applicable, and insurance of each such
organization. (h) All qualifying agents for a business
organization are jointly and equally responsible for supervision of all
operations of the business organization, for all field work at all sites, and
for financial matters, both for the organization in general and for each
specific job for which his or her license was used to obtain the building
permit. (i) Any change in the status of a qualifying
agent is prospective only. A qualifying agent shall for purposes of application
of this chapter and the enforcement and disciplinary mechanisms thereunder be
and remain responsible for his or her actions or omissions as well as those of
the business organization for which such person had acted as a qualifying agent
occurring during his or her period of service as such qualifying agent as and to
the extent set forth in this chapter. A qualifying agent is not responsible for
his or her
predecessor´s
actions, but is responsible, even after a change in status, for matters for
which he or she was responsible while in a particular status. Further, nothing
in this chapter shall be interpreted as a basis for imposition of civil
liability against an individual qualifying agent by any owner or other third
party claimant beyond the liability that would otherwise exist legally or
contractually apart from and independent of the
individual´s
status as a qualifying
agent. 43-14-10. (a) In
addition to the powers and authorities conferred upon the board and its
divisions pursuant to Chapter 1 of this title, the residential contractor
division and the general contractor division shall have the power, respectively,
to reprimand any person or licensee, or to suspend, revoke, or refuse to grant,
renew, or restore a license to any person or licensee if such person or licensee
is found by the appropriate division to have engaged in any fraud or deceit in
obtaining a license or otherwise to have engaged in gross negligence, repeated
or persistent incompetence, intentional misconduct in the practice of his or her
profession, or willful violation of any provisions of this
chapter. (b) For purposes of this Code section, a
person or business organization operating on an expired, revoked, lapsed, or
suspended license shall be considered unlicensed. (c)
The separate divisions may issue a stop-work order for all unlicensed work
falling within their respective jurisdictions upon finding probable cause to
believe that construction work which requires a license under this chapter is
being performed by a person without such a current, valid license. Such an
order may be enforced by injunctive relief, cease and desist orders, or other
related actions within the power and authority of the board and its respective
divisions. (d) The division having jurisdiction shall
investigate and sanction any license holder found to have engaged in fraud,
deceit, gross negligence, repeated or persistent incompetence, or intentional
misconduct in the practice of residential or general contracting; and sanctions
shall be assessed against any such residential or general contractor licensed
under this chapter either individually or as a business organization acting
through a qualifying agent. Such charges, unless dismissed without hearing by
the division as unfounded, shall be heard and determined by that division in
accordance with the provisions of Chapter 13 of Title 50, the 'Georgia
Administrative Procedure Act.' (e) The divisions shall
each adopt and publish rules and regulations, consistent with the provisions of
this chapter, governing the suspension and revocation of
licenses. (f ) Each division may reissue a license to
any person whose license has been revoked or lift a suspension of a license to
such person provided that four or more members of the division vote in favor of
such reissuance or lifting for reasons that division deems
sufficient.
43-41-11. The
issuance of a license by the residential contractor or the general contractor
division shall be evidence that the person named therein, including both the
individual licensee and any business organization for whom such licensee is a
qualifying agent, is entitled to all the rights and privileges of a licensed
residential or general contractor while such license remains unrevoked or
unexpired.
43-41-12. (a)
Any person, whether an individual or a business organization,
who: (1) Contracts for or bids upon or engages in the
construction of any of the projects or works enumerated in the definitions of
residential contractor or general contractor in Code Section 43-41-2 without
having first complied with the appropriate provisions of this chapter or who
shall attempt to practice residential contracting or general contracting in this
state except as provided for in this chapter; (2)
Falsely represents, advertises, or holds himself or herself or an affiliated
business organization out as a residential contractor or general contractor
licensee; (3) Represents or attempts to use or
presents as his or her own the license of another person or, in the case of a
business organization, a person other than its qualifying
agent; (4) Gives false or forged evidence of any kind
to the board or its divisions or to any member of the board in maintaining a
license; (5) Uses an expired, suspended, or revoked
license to continue engaging in residential contracting or general contracting;
or (6) Operates a business organization engaged in
contracting after 120 days following the termination of its only qualifying
agent without designating another primary qualifying agent, except as provided
in Code Section 43-41-9, shall be guilty of a
misdemeanor and shall, upon conviction, be punished for each such offense by a
fine of not less than $500.00 or imprisonment of three months, or both fine and
imprisonment in the discretion of the court. (b) Any
architect or engineer who recommends to any project owner the award of a
contract to anyone known by such architect or engineer not to be properly
licensed under this chapter shall be subject to such penalties as provided in
subsection (a) of this Code section and also to any appropriate disciplinary
action by the appropriate division. (c) Except as
otherwise provided in this Code section, any person who violates any provision
of this chapter shall be guilty of a
misdemeanor.
43-41-13. Whenever
it appears to the board or either division of the board that any person, whether
an individual or a business organization, or both, is violating any of the
provisions of this chapter or of the rules and regulations of the board or
either division promulgated under this chapter, the board or division may apply
to the superior court of the county in which such individual resides or business
is located for a restraining order and injunction to restrain the violation, and
the superior court shall have jurisdiction to grant the requested relief,
irrespective of whether criminal prosecution has been instituted or
administrative sanctions have been imposed by reason of the
violation.
43-41-14. Any
person, whether an individual or a business organization acting through a
qualifying agent, intending to perform work as a residential or general
contractor, upon making application to the building inspector or such other
authority of any incorporated municipality or county in this state charged with
the duty of issuing building or other permits for contemplated construction work
requiring performance by either a licensed residential contractor or a licensed
general contractor shall, before being entitled to the issuance of such permit,
furnish to such inspector or authority, personally or through his or her
authorized agent specifically designated to act on his or her behalf in a sworn
written document submitted contemporaneously or previously submitted and
maintained by such inspector or authority, his or her residential contractor or
general contractor license number and the identity of any business organization
for which such applicant is serving as qualifying agent that is undertaking or
contracting as a residential contractor or a general contractor to construct or
manage the construction. It shall be unlawful for any such building inspector
or other authority to issue or allow the issuance of such building permit unless
the applicant has furnished his or her residential contractor or general
contractor license number and the identity of any such business organization
relative to performance of the work for which a permit has been applied. A
building inspector or other authority shall issue such building permit under the
terms of this Code section to any person, including an individual licensee
acting on his or her own behalf or a licensee acting as a qualifying agent for a
business organization and such business organization, upon evidence reasonably
establishing that such person is duly licensed as a residential or general
contractor under this chapter, either individually or as a business organization
acting under a duly licensed qualifying agent. Any building inspector or other
such authority that issues a building permit to a person known by such building
inspector or authority not to be properly licensed under this chapter shall be
guilty of a misdemeanor and, upon conviction, shall be subject to a fine of not
more than
$500.00.
43-41-15. If an
incomplete contract exists at the time of death of a residential or general
contractor, where the licensed contractor performing the work under such
contract is an individual person and not a business organization acting through
a qualifying agent for such organization, the contract may be completed by any
person affiliated with the contractor as a co-owner, partner, employee,
relative, heir, successor, or assign, even though not licensed under this
chapter, subject to the terms of this Code section. Such person shall notify
the appropriate division of the board within 30 days after the death of such
contractor of such death and of his or her name and address, knowledge of the
contract, and ability technically and financially to complete it. Such person
may continue with performance of the contract pending approval by the division.
If the division approves, he or she may proceed with the contract to completion.
If the division does not approve completion by such person, due to a
determination that he or she does not have sufficient knowledge, expertise, or
financial or other required resources, the division shall give prompt written
notice to the person, including the reasons for such rejection, and such person
shall promptly upon receipt of such notice cease further performance of the
contract. If the owner engages another person under a new contract to complete
the remaining work under the original contract, such other party must be a
contractor duly licensed under this chapter to perform such work. For purposes
of this Code section, an incomplete contract is one which has been awarded to or
entered into by the contractor before his or her death or on which he or she was
the low bidder and the contract is subsequently awarded to him or her,
regardless of whether any actual work has commenced under the contract before
the
contractor´s
death. If an incomplete contract exists at the time of death of a sole
qualifying agent of a residential contractor or a general contractor, where the
contractor is a business organization licensed only under such individual as its
qualifying agent, then the contractor shall proceed as provided under paragraph
(1) of subsection (e) of Code Section
43-41-9.
43-41-16. (a) The
board shall have the authority to refuse to grant a license to an applicant or
to revoke the license of a person licensed by the board or to discipline a
person licensed by the board upon a finding by a majority of the board that the
applicant or licensee has committed any of the following
acts: (1) Obtaining a license by fraud or
misrepresentation or otherwise knowingly giving false or forged evidence to the
board or its divisions; (2) Being convicted or found
guilty of or entering a plea of guilty or nolo contendere to a criminal act
constituting a felony in any jurisdiction which directly relates to the practice
of residential or general contracting or the ability to practice
contracting; (3) Performing any act which assists a
person or entity in the prohibited unlicensed practice of contracting if the
licensee knows or has reasonable grounds to know that the person or entity is
unlicensed; (4) Knowingly combining or conspiring with
an unlicensed person by allowing his or her license to be used with the intent
to evade the provisions of this chapter. When an individual license holder
allows his or her license to be used to qualify one or more business
organizations, including where such qualifying agent for a person engaged in
general contracting does not actually possess and exercise the power and
authority required of a qualifying agent under paragraph (7) of Code Section
43-41-2 and Code Section 43-41-9, such act constitutes prima-facie evidence of
an intent to evade the provisions of this chapter; (5)
Failing in any material respect to comply with the provisions of this chapter or
violating a rule, regulation, or lawful order of the board or its
divisions; (6) Abandoning a construction project in
which the contractor who is the individual license holder or a business
organization for whom the license holder is a qualifying agent is engaged or
under contract as a residential or general contractor. A project may be
presumed abandoned after 90 days if the contractor has ceased work on or
terminated performance on the project without just cause and without proper
notification to the owner, including the reason for the termination, cessation,
or abandonment; (7) Signing a statement with respect
to a project or contract falsely indicating that the work is bonded; knowingly
and falsely indicating by written statement issued to the owner that payment has
been made for all subcontracted work, labor, and materials and for all materials
furnished and installed which statement is reasonably relied upon and actually
results in a financial loss to the owner; or falsely indicating that
workers´
compensation and general liability insurance are
provided; (8) Committing fraud or deceit in the
practice of contracting, including falsely advertising, representing, or holding
himself or herself or an affiliated business organization out as having a valid
and current license under this chapter; (9) Committing
gross negligence, repeated or persistent negligence, or negligence resulting in
a significant danger to life or property; (10)
Proceeding on any job without obtaining applicable local building permits and
inspections; (11) Using or attempting to use a license
that has expired or has been suspended or revoked; (12)
Knowingly or intentionally engaging any subcontractor to perform work within the
scope of the general or residential construction contract which requires a
license under Chapter 14 of this title who does not possess a current and valid
license for such work; or (13) Failing to satisfy
within a reasonable time the terms of a final civil judgment obtained against
the licensee or the business organization qualified by the licensee relating to
the practice of the
licensee´s
profession. (b) The appropriate division may take any
one or more of the following actions against any license holder found by the
division to have committed any one or more of the acts listed in subsection (a)
of this Code section: (1) Place the license holder on
probation or reprimand the license holder; (2) Revoke
a license, including the license of a person as an individual as well as that of
a qualifying agent of a business organization together with the interest of the
business organization qualified thereby in such license; suspend such a license
for a stated period of time not exceeding one year; or deny the issuance or
renewal of the license; (3) Require financial
restitution to a consumer for financial harm directly related to a violation of
a provision of this chapter; (4) Impose an
administrative fine not to exceed $5,000.00 for each
violation; (5) Require continuing education;
or (6) Assess costs associated with the investigation
and prosecution. (c) In determining penalties in any
final order of the board or a division, the board or division shall follow the
penalty guidelines established by the
board´s
or
division´s
rules and regulations. (d) The board or a division may
assess interest or penalties on all fines imposed under this chapter against any
person or business organization which has not paid the imposed fine by the due
date established by rule, regulation, or final
order. (e) If the board or a division finds any
contractor has violated the provisions of this chapter, the board or division
may as a part of its disciplinary action require such contractor to obtain
continuing education in the areas of contracting affected by such
violation.
43-41-17. (a)
The licensing requirements imposed by this chapter and the sanctions and
consequences relating thereto shall not become effective and enforceable until
two years after the effective date of this chapter. On and after such date, no
person, whether an individual or a business organization, shall have the right
to engage in the business of residential contracting or general contracting
without a current, valid residential contractor license or general contractor
license, respectively, issued by the division under this chapter or, in the case
of a business organization, unless such business organization shall have a
qualifying agent as provided in this chapter holding such a current, valid
residential contractor or general contractor license on behalf of such
organization issued to such qualifying agent as provided in this chapter.
Notwithstanding the foregoing, persons seeking licensure under this chapter and
exemption from examination under paragraphs (1) and (2) of subsection (a) of
Code Section 43-41-8 shall submit their applications, including all necessary
proof of the basis of exemption from examination for such license, starting one
year after the effective date of this chapter. The period for submission of
such applications and requests for exemption from the examination requirements
shall extend thereafter for a period of six months. Furthermore,
notwithstanding the foregoing, any person seeking licensure under this chapter
and exemption from examination under paragraph (3) of subsection (a) of Code
Section 43-41-8 may submit his or her application, including all necessary proof
of the basis of such exemption starting 18 months after the effective date of
this chapter and continuing thereafter. (b) As a
matter of public policy, any contract entered into two or more years after the
effective date of this chapter for the performance of work for which a
residential contractor or general contractor license is required by this chapter
and which is between an owner and a contractor who does not have a valid and
current license required for such work in accordance with this chapter shall be
unenforceable in law or in equity by the unlicensed contractor. For purposes of
this subsection, a contractor shall be considered unlicensed only if the
contractor was unlicensed on the effective date of the original contract for the
work, if stated therein, or, if not stated, the date the last party to the
contract executed such contract, if stated therein. If the contract does not
establish such a date, the contractor shall be considered unlicensed only if the
contractor was unlicensed on the first date upon which the contractor provided
labor, services, or materials under the contract. Notwithstanding any other
provision of law to the contrary, if a contract is rendered unenforceable under
this subsection, no lien or bond claim shall exist in favor of the unlicensed
contractor for any labor, services, or materials provided under the contract or
any amendment thereto. This subsection shall not affect the rights of parties
other than the unlicensed contractor to enforce contract, lien, or bond
remedies. This subsection shall not affect the obligations of a surety that has
provided a bond on behalf of an unlicensed contractor. It shall not be a
defense to any claim on a bond or indemnity agreement that the principal or
indemnitor is unlicensed for purposes of this
subsection. (c) Any person who holds a license issued
under this chapter may engage in the business of residential or general
contracting, but only as prescribed by the license, throughout the state and no
municipality or county may require any such person licensed under this chapter
to comply with any additional licensing requirements imposed by such
municipality or county relative to the performance of construction work subject
to the licensing requirements under this chapter. However, nothing in this
chapter shall preclude the implementation and enforcement by any municipality or
county of a local rule, regulation, ordinance, order, or other requirement in
effect and operation as of the effective date of this chapter or July 1, 2004,
whichever is earlier, that requires a person to obtain a locally issued license,
registration, or certification in order to: (1) Engage
in the construction of improvements to real property to the extent such
activities are not encompassed by this chapter or by Chapter 14 of this title;
or (2) Engage in residential or general contracting
within such jurisdiction; provided, however, that: (A)
The requirements and criteria for issuance of such local license, registration,
or certification shall have been at least as strict and stringent, in the sole
judgment of the board, as those for the issuance of a corresponding state-wide
license issued under this chapter; (B) Such local
license, registration, or certification shall only apply to activities performed
within the geographical limits of such municipality or county;
and (C) Such requirement shall not prevent or
foreclose any contractor not holding such local license, registration, or
certification but holding a valid and current state-wide license issued under
this chapter or Chapter 14 of this title from the transaction of contracting
business in such local jurisdiction within the scope of his or her state-wide
license. (d) Any person qualified by the Department of
Transportation to perform construction work on roads, streets, bridges,
highways, sidewalks, or other grading, paving, or repaving projects; airport
runways or taxiways; or railroads, and services incidental thereto, for the
department shall not be required to be licensed under this chapter in order to
perform any such work for the department or for any other owner requiring
similar work to be performed. The general contractor division of the board, in
agreement with the Department of Transportation, shall, by rule, define
'services incidental thereto' for the purposes of this subsection only and shall
likewise define any other necessary terms as to the scope of the exemption
provided by this subsection. (e) Nothing in this
chapter shall prevent any person holding a valid license issued by the State
Construction Industry Licensing Board, or any division thereof, pursuant to
Chapter 14 of this title from performing any work defined in the Code sections
under which the license held by said person was issued. Furthermore, nothing in
this chapter shall preclude a person licensed under Chapter 14 of this title to
perform plumbing, conditioned air contracting, utility contracting, electrical
contracting, or low-voltage contracting from offering to perform, performing,
engaging in, or contracting to engage in the performance of construction work or
services directly with an owner, which work or services would otherwise require
a general contractor license under this chapter, where the total scope of the
work to be performed is predominantly of the type for which such contractor is
duly licensed to perform under Chapter 14 of this title such that any other work
involved is incidental to and an integral part of the work performed within the
scope of such license under said chapter and does not exceed the greater of
$10,000.00 or 25 percent of the total value at the time of contracting of the
work to be performed; provided, however, that such contractor may not delegate
or assign the responsibility to directly supervise and manage the performance of
such other work to a person unless such person is licensed under this chapter
and the work being performed by such person is within the scope of that
person´s
license. (f) Nothing in this chapter shall preclude a
specialty contractor from offering or contracting to perform or undertaking or
performing for an owner limited, specialty, or specific trade contractor work,
which does not entail the delegation or assignment to or engagement of any other
person or entity, other than direct employees, to supervise, manage, or oversee
the performance of any portion of the work undertaken. However, nothing in this
chapter shall permit a specialty contractor to perform work falling within the
licensing requirements of Chapter 14 of this title where such specialty
contractor is not duly licensed under such chapter to perform such
work. (g) Nothing in this chapter shall preclude a
person from offering or contracting to perform or undertaking or performing for
an owner repair work, provided that the person performing the repair work
discloses to the owner that such person does not hold a license under this
chapter and provided, further, that such work does not affect the structural
integrity of the real property. The board shall by rule or regulation further
define the term “repair” as used in this subsection and any other
necessary terms as to the scope of this exemption. (h)
Nothing in this chapter shall preclude any person from constructing a building
or structure on real property owned by such person which is intended upon
completion for use or occupancy solely by that person and his or her family,
firm, or corporation and its employees, and not for use by the general public
and not offered for sale or lease. In so doing, such person may act as his or
her own contractor personally providing direct supervision and management of all
work not performed by licensed contractors. However, if, under this subsection,
the person or his or her family, firm, or corporation has previously sold or
transferred a building or structure which had been constructed by such person
acting without a licensed residential or general contractor within the prior 24
month period, starting from the date on which a certificate of occupancy was
issued for such building or structure, then such person may not, under this
subsection, construct another separate building or structure without having
first obtained on his or her own behalf an appropriate residential or general
contractor license or having engaged such a duly licensed contractor to perform
such work to the extent required under this chapter, or it shall be presumed
that the person, firm, or corporation did not intend such building solely for
occupancy by that person and his or her family, firm, or corporation. Further,
such person may not delegate the responsibility to directly supervise and manage
all or any part of the work relating thereto to any other person unless that
person is licensed under this chapter and the work being performed is within the
scope of that
person´s
license. In any event, however, all such work must be done in conformity with
all other applicable provisions of this title, the rules and regulations of the
board and division involved, and any applicable county or municipal resolutions,
ordinances, codes, permitting, or inspection
requirements. (i) Nothing in this chapter shall
preclude an architect licensed pursuant to Chapter 4 of this title or an
engineer registered pursuant to Chapter 15 of this title from performing work or
providing services within the scope of his or her registration for the practice
of architecture or license for practicing
engineering. (j) Nothing in this chapter shall
preclude an architect licensed pursuant to Chapter 4 of this title or an
engineer licensed pursuant to Chapter 15 of this title from offering to perform
or offering or rendering design-build services to an owner; provided, however,
that such offer or contract shall clearly indicate at the time of such offer or
contract that all services of a general contractor incident to the design-build
performance shall be performed by a duly licensed general contractor in
compliance with other provisions of this chapter and that all services so
offered or provided falling within the scope of the licensing requirements of
this chapter are offered and rendered by a licensed general contractor in
accordance with this chapter. (k) Nothing in this
chapter shall apply to the construction, alteration, or repair of buildings
classified as an agricultural occupancy or that are used for agricultural
storage or agricultural purposes. (l) A contractor
licensed under this chapter shall not be required to list on the face of a bid
or proposal envelope the license number of any contractor licensed under Chapter
14 of this title that may or will be engaged to perform any work within the
licensing requirements of Chapter 14 of this title which comprises part of the
work for which such bid or proposal is submitted. (m)
Dams, including both earth dams and concrete dams, designed for electrical
generation, water storage, or any other purpose may be constructed by either a
general contractor licensed under this chapter or by a utility contractor
licensed pursuant to Chapter 14 of this
title."
SECTION 2.
This Act shall become effective only upon the effective date
of an appropriation of funds for the purposes of this Act as expressed in a line
item making specific reference to the full funding of this Act in an
appropriations Act enacted by the General Assembly.
SECTION 3.
All laws and parts of laws in conflict with this Act are
repealed.
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