HB109.html
03 LC 22 4960ER

House Bill 109
By: Representatives Powell of the 23rd, Westmoreland of the 86th, Bruce of the 45th, Watson of the 60th, Post 2 and Maddox of the 59th, Post 2



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 Contractors; to define certain terms; to provide for the composition, powers, and duties of the board; to provide for the licensing of residential 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 contracting without a valid license; 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 inserting immediately following Chapter 40 the following:

"CHAPTER 41

43-41-1.
As used in this chapter, the term:
(1) 'Board' means the State Licensing Board for Residential Contractors.
(2) 'Residential contractor' means any person, firm, or corporation that, for a fixed price, commission, fee, or wage, undertakes to bid upon or to construct or that undertakes to superintend or manage, on his or her own behalf or for any person, firm, or corporation that is not licensed as a licensed residential contractor pursuant to this chapter, the construction of any single-family residence or any improvement to any such structure where the cost of the undertaking is $30,000.00 or more. Such term shall not include any person, firm, or corporation that constructs or alters a building on land owned by that person, firm, or corporation if such building is intended solely for occupancy by that person and his or her family, firm, or corporation after completion; provided, however, that, if such building is not occupied solely by such person and his or her family, firm, or corporation for at least 12 months following completion, 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.

43-41-2.
There is created the State Licensing Board for Residential Contractors consisting of nine members appointed by the Governor for five-year terms. Five members shall be licensed residential contractors, two of whom shall be small volume builders and all of whom must be geographically diverse; one member shall be a registered engineer who practices structural engineering; and three members shall be public members. The public members shall have no ties with the residential construction industry and shall represent the interests of the public at large. 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. The Governor may remove any member of the board for misconduct, incompetence, or neglect of duty.

43-41-3.
The board shall meet within 30 days after its appointment by the Governor at a time and place to be designated by the Governor and organize by electing a chairperson, a vice chairperson, and a secretary-treasurer, each to serve for one year. The board shall have power to make such rules and regulations as it deems appropriate, provided the same are not in conflict with the laws of this state. The secretary-treasurer need not be a member of the board, and the board is authorized to employ a full-time secretary-treasurer and such other assistants and make such other expenditures as may be necessary to the proper carrying out of the provisions of this chapter.

43-41-4.
The board shall meet at least twice each year for the purpose of transacting such business as may properly come before it. Due notice of each meeting and the time and place thereof shall be given to each member in such manner as the bylaws may provide. Five members of the board shall constitute a quorum. The board shall have the power to:
(1) Request from the various state departments and other agencies and authorities of the state and its political subdivisions and their agencies and authorities such available information as it may require in its work; and all such agencies and authorities shall furnish such requested available information to the board within a reasonable time;
(2) Provide by regulation for reciprocity with other states in the registration and licensing of residential contractors, provided that such other states have requirements substantially equal to the requirements in force in this state for registration, licensure, and certification; provided, further, that a similar privilege is offered to residents of this state; and
(3) Adjust fees on an annual basis.

43-41-5.
The secretary-treasurer shall keep a record of the proceedings of the board and a register of all applicants for licenses showing for each the date of application, name, qualifications, place of business, place of residence, affiliated entities, and whether a license was granted or refused. The secretary-treasurer shall also prepare during January of each year a roster showing the names, places of business, affiliated entities, and places of residence of all licensed residential contractors; such roster shall be printed by the board, with copies available to licensed residential contractors and members of the public, at cost, upon request, or furnished without cost, as directed by the board. On or before March 1 of each year, the board shall submit to the Governor a report of its transactions for the preceding year and shall file with the Secretary of State a copy of such report, together with a complete statement of the receipts and expenditures of the board, attested by the affidavits of the chairperson and the secretary-treasurer, and a copy of the roster of licensed general contractors.

43-41-6.
(a) Anyone seeking to be licensed as a residential contractor in this state shall file an application for an examination on a form provided by the board accompanied by an examination fee of $50.00, together with $100.00 for the license. Before being entitled to an examination, an applicant must show to the satisfaction of the board 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 entities that the applicant will be affiliated with as a licensed residential contractor. All applicants shall provide proof of general liability insurance in an amount which is not less than that specified by the board and proof of workers´ compensation insurance as required by the laws of this state in their name or that of an affiliated entity. A certificate by the insurer or other appropriate evidence of such coverages shall be maintained with the board and shall be a condition of renewal. A licensee must notify the board in writing within 30 days of any changes in the information required to be on file with the board, including, but not limited to, the licensee´s current mailing address, insurance coverages, and affiliated entities.
(b) The board shall conduct an examination, either oral or written, of all applicants to ascertain the applicant´s ability to make a practical application of his or her knowledge of the profession of residential construction and to ascertain the applicant´s qualifications in reading plans and specifications, his or her knowledge of estimating costs, construction, ethics, and other similar matters pertaining to the residential contracting business, and his or her knowledge as to the responsibilities of a residential contractor to the public and the requirements of the laws of this state relating to residential contractors, construction, and liens. If the results of the applicant´s examination are satisfactory to the board, then the board shall issue to the applicant a certificate to engage in business as a residential contractor in this state, as provided in such certificate.
(c) Anyone failing this examination may be reexamined at any regularly scheduled examination time upon payment of a reexamination fee of $25.00. Anyone requesting to take the examination a third or subsequent time shall submit a new application with the appropriate examination and license fees. Certificates of license shall expire on December 31 following their issuance or renewal and shall become invalid 60 days from that date unless renewed, subject to the approval of the board. Renewals may be effected any time during January without reexamination by the payment of a fee of $75.00 to the secretary-treasurer. Renewal applications shall be accompanied by evidence of continued financial responsibility and insurance coverages satisfactory to the board. Renewal applications received by the board after January shall be accompanied by a late fee of $10.00 for each month or part of a month after January. After a lapse of two years, no renewal shall be effected, and the applicant shall fulfill all requirements of a new applicant as set forth in this Code section. As a condition of renewal, the board may require licensees to complete board approved continuing education of not more than three hours annually.

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 cost of the undertaking is $30,000.00 or more. 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, until and including July 1, 2004, the following persons desiring to qualify under the provisions of this subsection shall be issued a state-wide residential contractor license by the board, provided that such person submits proper application and pays or has paid the required fees and is not otherwise in violation of this chapter:
(1) Any person holding a license to engage in residential contracting issued to him or her by any governing authority of any political subdivision which requires passing a written examination to obtain such license; or
(2) Any person who has successfully and efficiently engaged in residential contracting in this state. To provide that he or she has successfully engaged in residential contracting, the person shall only be required to give evidence of three successful residential contracting jobs completed over the period of five years immediately prior to the time of application or evidence of ten successful residential contracting jobs 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 contracting for seven of the ten years immediately prior to the time of application. Such applicant shall swear before a notary public that such evidence is true and accurate prior to its submission to the board.
(b) The decision of the board as to the qualifications of applicants taking the required examination shall, in the absence of fraud, be conclusive.
(c) On and after July 1, 2004, no partnership, corporation, or other legal entity shall have the right to engage in the business of residential contracting unless there is regularly connected with such entity a person or persons who have valid residential contractor licenses issued to them as provided.
(d) The provisions of this Code section shall preempt any local ordinance which might be enacted after the effective date of this chapter.

43-41-9.
(a) The board shall have the power to revoke the license of any residential contractor licensed under this chapter who is found guilty of any fraud or deceit in obtaining a license, gross negligence, incompetence, or misconduct in the practice of his or her profession or willful violation of any provisions of this chapter. Any person may prefer charges of such fraud, deceit, negligence, incompetence, or misconduct against any residential contractor licensed under this chapter. Such charges shall be in writing and sworn to by the complainant and submitted to the board. Such charges, unless dismissed without hearing by the board as unfounded, shall be heard and determined by the board in accordance with the provisions of Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act.'
(b) The board shall adopt and publish rules and regulations, consistent with the provisions of this chapter, governing the suspension and revocation of licenses.
(c) The board shall establish and maintain a system whereby detailed records are kept regarding complaints against each licensee. This record shall include, for each licensee, the date and nature of each complaint, investigatory action taken by the board, any findings by the board, and the disposition of the matter.
(d) The board may reissue a license to any person whose license has been revoked; provided, however, that five or more members of the board vote in favor of such reissuance for reasons the board deems sufficient.
(e) The board shall immediately notify the Secretary of State of its findings in the case of the revocation of a license or of the reissuance of a revoked license.

43-41-10.
The issuance of a license by the board shall be evidence that the person named therein is entitled to all the rights and privileges of a licensed residential contractor while such license remains unrevoked or unexpired.

43-41-11.
Any person not being duly authorized who shall contract for or bid upon the construction of any of the projects or works enumerated in the definition of residential contractor in Code Section 43-41-1 without having first complied with the provisions of this chapter or who shall attempt to practice residential contracting in this state except as provided for in this chapter, any person representing or attempting to file as his or her own the licensed certificate of another or who shall give false or forged evidence of any kind to the board or to any member of the board in maintaining a license or who falsely shall impersonate another or who shall use an expired or revoked license, and any architect or engineer who recommends to any project owner the award of a contract to anyone not properly licensed under this chapter shall be deemed 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.

43-41-12.
Whenever it appears to the board that any person, firm, or corporation is violating any of the provisions of this chapter or of the rules and regulations of the board promulgated under this chapter, the board may apply to the superior court 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 or not criminal prosecution has been instituted or administrative sanctions have been imposed by reason of the violation.

43-41-13.
Any person, firm, or corporation, upon making application to the building inspector or such other authority of any incorporated city, town, or county in this state charged with the duty of issuing building or other permits for the construction of any single-family dwelling or any improvement to any such structure where the cost thereof is to be $30,000.00 or more shall, before being entitled to the issuance of such permit, furnish to such inspector or authority his or her residential contractor licensing number and any affiliated entities that are contracting to construct or to superintend 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 licensing number and any affiliated entities under this chapter to carry out or to superintend or manage 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, firm, or corporation upon evidence of an affiliated licensed residential contractor. Any building inspector or other such authority that is subject to and violates the terms of this Code section shall be guilty of a misdemeanor and subject to a fine of not more than $500.00."

SECTION 2.
This Act shall become effective on January 1, 2004.

SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.