House Bill 635 (AS PASSED HOUSE AND SENATE)
By: Representatives Wiedower of the 121st, Frye of the 122nd, Reeves of the 99th, Persinger
of the 119th, Franklin of the 160th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 41 of Title 43 of the Official Code of Georgia Annotated, relating to
residential and commercial general contractors, so as to revise provisions relating to the State
Licensing Board for Residential and Commercial General Contractors; to revise and clarify
qualifications for licensure as a residential or commercial general contractor; to revise
provisions relating to examination of applicants; to revise provisions relating to the refusal
to grant a license, revocation of a license, or other disciplinary action of the board; to provide
for related matters; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Chapter 41 of Title 43 of the Official Code of Georgia Annotated, relating to residential and
commercial general contractors, is amended by revising Code Section 43-41-3, relating to
creation of State Licensing Board for Residential and Commercial General Contractors,
membership, divisions, vacancies, qualifications, terms, and meetings, as follows:
"43-41-3.
(a) There is created the State Licensing Board for Residential and Commercial General
Contractors consisting of 15 members appointed by the Governor 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
composed 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 commercial general contractor
division. Eight 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 commercial 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 licensed in the category to which the member is appointed and shall 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 commercial general
contractor, corresponding to the division for which such person is appointed. The position
of any appointed 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. <del>No
member of the board shall be appointed to serve more than two full terms.
</del> (b) The residential contractor division shall consist of eight members 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. Six members shall be residential contractors
licensed under this chapter. At least two of the residential contractor members shall be
licensed as residential-light commercial contractors; at least two shall be licensed as
residential-basic contractors; one shall be a licensed residential contractor whose business
predominantly involves remodeling projects; one shall be a licensed residential contractor
who constructs at least an average of 20 residences per year; and all <del>must</del> <ins>shall</ins> be
geographically diverse. One member shall <del>be</del> <ins>have experience as</ins> 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
member terms on the residential contractor division shall be staggered so that all terms do
not expire simultaneously. The residential contractor division shall meet at least once
every two months for the purpose of transacting such business as may properly come
before it.
(c) The commercial general contractor division shall consist of seven members and, except
as otherwise expressly stated in this chapter, shall have jurisdiction of and authority over
the practice of commercial general contracting. Five members shall be commercial general
contractors licensed under this chapter. At least two of the commercial general contractor
members shall be small-volume builders with an annual contracting volume of less than
$10 million and all of whom <del>must</del> <ins>shall</ins> be geographically diverse. One member shall be
a currently licensed or registered architect or engineer and one member shall <del>be</del> <ins>have
experience as</ins> a public building official. The initial member terms on the commercial
general contractor division shall be staggered so that all terms do not expire
simultaneously. The commercial general contractor division shall meet at least once every
two months for the purpose of transacting such business as may properly come before it."
SECTION 2.
Said chapter is further amended in Code Section 43-41-4, relating to chairperson and vice
chairperson, meetings and quorums, and assistance from professional licensing boards
division, by revising subsection (h) as follows:
"(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 <del>at least four</del> <ins>a majority</ins> of its
members from the affected division are present and participating in such action or
decision."
SECTION 3.
Said chapter is further amended by revising Code Section 43-41-6, relating to application and
appropriate fee, eligibility for licensure as residential-basic contractor, residential-light
commercial contractor, or commercial general contractor, examination of qualified
applicants, renewal of licenses, and continuing education requirements, as follows:
"43-41-6.
(a) Anyone seeking to be licensed as a residential contractor or as a commercial general
contractor in this state shall file an application on a form provided by the residential
contractor or commercial 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 commercial 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 commercial general contracting in the name of the business organization
in accordance with and pursuant to Code Section 43-41-9.
Additionally, all applicants <del>must submit to and</del> <ins>shall</ins> successfully pass an examination
<del>prepared by, prepared for, or</del> approved 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, either as an individual
doing business in his or her own name or doing business as an individual in a trade name
as a sole proprietor or as a qualifying agent for another business organization.
(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, integrity,
and financial responsibility; <ins>and
</ins> (3) Has at least two years of <del>proven</del> <ins>verifiable</ins> experience working as or in <ins>under</ins> the
<ins>direct</ins> employment of a <ins>licensed</ins> residential contractor, <del>predominantly in</del> <ins>with a primary
focus on</ins> the residential-basic category, or other <del>proven</del> <ins>verifiable</ins> experience <del>deemed</del> <ins>that
the division deems to be</ins> substantially similar <del>by the division; and</del> <ins>in scope and nature,
including, but not limited to, experience performing activities, work, or services requiring
licensure under Chapter 14 of this title. Such experience shall be verified through an
affidavit, executed by the applicant's employer or such other person with knowledge of
such experience, attesting under oath that the applicant has such experience.
</ins> <del>(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.
</del> (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, integrity,
and financial responsibility; <ins>and
</ins> (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 <del>and has at least one year of proven
experience working as or in the employment of a residential contractor, commercial
general contractor, or other proven experience deemed substantially similar by the
division;
</del> (B) Has a combination, <ins>equaling at least four years in the aggregate,</ins> <del>acceptable to the
division</del> of academic credits from any accredited college-level courses <ins>in the field of
engineering, architecture, construction management, building construction, or other
field acceptable to the division</ins> and <del>proven</del> verifiable practical experience working as
or in the employment of a residential contractor, commercial general contractor, or
other <del>proven</del> <ins>verifiable</ins> experience <del>deemed</del> <ins>that the division deems to be</ins> substantially
similar <del>by the division equaling at least four years in the aggregate</del> <ins>in nature and in
scope, including, but not limited to, performing activities, work, or services requiring
licensure under Chapter 14 of this title.</ins> For purposes of this subparagraph, all
university, college, junior college, or community college-level courses shall be
considered accredited college-level courses <ins>and any experience shall be verified
through an affidavit, executed by the applicant's employer or such other person with
knowledge of such experience, attesting under oath that the applicant has such
experience;</ins> or
(C) Has a total of at least four years of <del>proven</del> <ins>verifiable</ins> 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 <del>proven</del> <ins>verifiable</ins> experience deemed
acceptable by the division. <ins>Such experience shall be verified through an affidavit,
executed by the applicant's employer or such other person with knowledge of such
experience, attesting under oath that the applicant has such experience;</ins> <del>and
</del>
<del>(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.
</del> (d) A person shall be eligible for licensure as a commercial general contractor by the
commercial 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 <del>and has at least one year of proven
experience working as or in the employment of a commercial general contractor or
other proven experience deemed substantially similar by the division;
</del> (B) Has a combination, <ins>equaling at least four years in the aggregate,</ins> <del>acceptable to the
division</del> of academic credits from any accredited college-level courses <ins>in the field of
engineering, architecture, construction management, building construction, or other
field acceptable to the division</ins> and <del>proven</del> verifiable practical experience working as
or in the employment of a commercial general contractor or other <del>proven</del> <ins>verifiable
</ins> experience <del>deemed</del> <ins>that the division deems to be</ins> substantially similar <del>by the division
equaling at least four years in the aggregate</del> <ins>in nature and in scope, including, but not
limited to, performing activities, work, or services requiring licensure under Chapter
14 of this title.</ins> For purposes of this subparagraph, all university, college, junior
college, or community college-level courses shall be considered accredited
college-level courses <ins>and any experience shall be verified through an affidavit,
executed by the applicant's employer or such other person with knowledge of such
experience, attesting under oath that the applicant has such experience;</ins> 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 commercial 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. <ins>Such
experience shall be verified through an affidavit, executed by the applicant's employer
or such other person with knowledge of such experience, attesting under oath that the
applicant has such experience.
</ins> (e)(1) Before <del>being entitled to take an examination or otherwise qualify</del> <ins>qualifying</ins> for
issuance of a license, an applicant <del>must</del> <ins>shall</ins> show to the satisfaction of the residential
contractor division or commercial 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, and integrity. 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 commercial 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. 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 commercial general contractor's license shall also
provide suitable verification of tax payments in a form and manner and for the duration
prescribed by the commercial 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.
(2) Before qualifying for issuance of a license, <del>but not before being entitled to take an
examination,</del> an applicant <del>must</del> <ins>shall</ins> show to the satisfaction of the appropriate division
that the applicant is qualified as to financial responsibility. Applicants for a commercial
general contractor license shall provide proof of a minimum net worth in an amount
specified by the commercial general contractor division. All applicants shall provide
proof of general liability insurance in an amount specified by the appropriate division and
proof of workers' compensation insurance as required by the laws of this state. If the
applicant is submitted as a person seeking to act as a qualifying agent of a business
organization, then such proof shall pertain to that business organization rather than the
individual applicant, subject to the limitations set forth in Code Section 43-41-9. A
certificate by the insurer or other appropriate evidence of insurance coverages shall be
maintained with the appropriate division and shall be a condition of renewal.
(3) The decision of the appropriate division as to the qualifications of applicants shall,
in the absence of fraud or willful or wanton misconduct, be conclusive.
(4) A licensee, on his or her own behalf or where acting as a qualifying agent on behalf
of the business organization so qualified, <del>must</del> <ins>shall</ins> 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 commercial general contractor division
shall each <del>conduct or cause to be conducted an</del> <ins>approve an appropriate</ins> examination of
<ins>which</ins> all <del>qualified</del> applicants, except those exempted from the examination requirement
pursuant to Code Section 43-41-8, <ins>shall pass in order to be eligible for licensure under
this chapter.
</ins> (2) The residential contractor division shall <del>conduct or cause to be conducted</del> <ins>approve
</ins> 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 commercial general contractor division shall <del>conduct or cause to be conducted
</del> <ins>approve</ins> 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 <ins>commercial</ins> general contracting business; his or her knowledge
as to the responsibilities of a <ins>commercial</ins> 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 <ins>commercial</ins> 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 <del>under</del> <ins>pursuant to
</ins> 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 commercial 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 <del>this</del> <ins>any</ins> examination <ins>required under this
Code section</ins> may be reexamined at any regularly scheduled examination <del>within one year
of the date of original application upon payment of a reexamination fee, in an amount to
be set by the board,</del> without need to resubmit an application, unless any information set
forth in the previously submitted application is no longer accurate or complete. <del>Anyone
requesting to take the examination a fourth or subsequent time shall wait at least one
calendar year after the date of original application and shall submit an application with the
appropriate examination fees.
</del> (h) A residential contractor license, indicating whether relating to the residential-basic or
residential-light commercial category, or commercial 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 submitting a renewal as
prescribed by the board and paying a late renewal fee as determined by the board. After
six months <del>has</del> <ins>have</ins> 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 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 <ins>contractor</ins> license, six hours annually for a residential-light commercial
<ins>contractor</ins> license, and eight hours annually for a commercial general contractor license."
SECTION 4.
Said chapter is further amended in Code Section 43-41-16, relating to grounds for revocation
of license, authorized action by division in event of wrongdoing, interest and penalties, and
continuing education as requirement for resumption of standing, by revising subsection (a)
as follows:
"(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 commercial 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 <del>paragraph (7) of Code Section 43-41-2 and Code
</del>
<del>Section</del> <ins>Code Sections 43-41-2 and</ins> 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 commercial 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;
<del>or
</del> (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; <ins>or
(14) Knowingly entering into a contractual arrangement, whether oral or written, for or
otherwise permitting the use of his or her license issued under this chapter by an
individual who is not licensed in accordance with this chapter or by a business entity that
has not been authorized under the provisions of this chapter to lawfully engage in
contracting or perform the functions of a contractor."
</ins> SECTION 5.
All laws and parts of laws in conflict with this Act are repealed.