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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.
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