| 15 | | - | Enrolled, An Act, |
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| 16 | | - | Relating to the State Licensing Board for General |
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| 17 | | - | Contractors; to amend Sections 34-8-1 and 34-8-7, Code of |
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| 18 | | - | Alabama 1975, as last amended by Act 2023-99, 2023 Regular |
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| 19 | | - | Session, to increase the threshold cost of undertaking where |
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| 20 | | - | an individual is deemed to engage in the business of general |
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| 21 | | - | contracting; and to exempt labor brokers and other temporary |
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| 22 | | - | labor providers from certain licensing requirements. |
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| 23 | | - | BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: |
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| 24 | | - | Section 1. Sections 34-8-1 and 34-8-7, Code of Alabama |
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| 25 | | - | 1975, as last amended by Act 2023-99, 2023 Regular Session, |
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| 26 | | - | are amended to read as follows: |
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| 27 | | - | "§34-8-1 |
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| 28 | | - | (a) For the purpose of this chapter, a "general |
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| 29 | | - | contractor" is defined to be one who, for a fixed price, |
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| 30 | | - | commission, fee, or wage , undertakes to construct or |
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| 31 | | - | superintend or engage in the construction, alteration, |
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| 32 | | - | maintenance, repair, rehabilitation, remediation, reclamation, |
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| 33 | | - | or demolition of any building, highway, sewer, structure, site |
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| 34 | | - | work, grading, paving , or project or any improvement in the |
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| 35 | | - | State of Alabama where the cost of the undertaking is fifty |
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| 36 | | - | thousand dollars ($50,000) one hundred thousand dollars |
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| 37 | | - | ($100,000) or more,. A person who does any of the activities |
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| 38 | | - | described in this subsection shall be deemed and held to have |
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| 39 | | - | engaged in the business of general contracting in the State of |
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| 40 | | - | Alabama. |
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| 41 | | - | (b) For the purpose of this chapter, a "general |
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| 42 | | - | contractor" is defined to include one who, for a fixed price, |
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| 15 | + | SYNOPSIS: |
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| 16 | + | Under existing law, a person who, for a fixed |
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| 17 | + | price, commission, fee, or wager, undertakes to |
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| 18 | + | construct, superintend, or engage in the construction, |
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| 19 | + | alteration, maintenance, repair, rehabilitation, |
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| 20 | + | remediation, reclamation, or demolition of any |
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| 21 | + | building, highway, sewer, structure, site work, |
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| 22 | + | grading, or paving is deemed to have engaged in the |
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| 23 | + | business of general contracting if the cost of the |
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| 24 | + | undertaking is $50,000 or more. |
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| 25 | + | Also under existing law, a person who engages in |
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| 26 | + | the business of general contracting is required to be |
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| 27 | + | licensed by the State Licensing Board for General |
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| 28 | + | Contractors. |
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| 29 | + | This bill would increase the threshold cost of |
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| 30 | + | the undertaking amount to $100,000. |
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| 31 | + | This bill would also exempt from the |
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| 32 | + | requirements of obtaining a license from the board a |
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| 33 | + | labor broker or other temporary labor provider that |
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| 34 | + | provides temporary workers to a licensed contractor to |
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| 35 | + | perform work under that licensed contractor. |
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| 36 | + | A BILL |
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| 37 | + | TO BE ENTITLED |
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| 67 | + | TO BE ENTITLED |
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| 68 | + | AN ACT |
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| 69 | + | Relating to the State Licensing Board for General |
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| 70 | + | Contractors; to amend Sections 34-8-1 and 34-8-7, Code of |
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| 71 | + | Alabama 1975, as last amended by Act 2023-99, 2023 Regular |
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| 72 | + | Session, to increase the threshold cost of undertaking where |
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| 73 | + | an individual is deemed to engage in the business of general |
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| 74 | + | contracting; and to exempt labor brokers and other temporary |
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| 75 | + | labor providers from certain licensing requirements. |
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| 76 | + | BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: |
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| 77 | + | Section 1. Sections 34-8-1 and 34-8-7, Code of Alabama |
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| 78 | + | 1975, as last amended by Act 2023-99, 2023 Regular Session, |
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| 79 | + | are amended to read as follows: |
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| 80 | + | "§34-8-1 |
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| 81 | + | (a) For the purpose of this chapter, a "general |
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| 82 | + | contractor" is defined to be one who, for a fixed price, |
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| 83 | + | commission, fee, or wage , undertakes to construct or |
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| 84 | + | superintend or engage in the construction, alteration, |
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| 85 | + | maintenance, repair, rehabilitation, remediation, reclamation, |
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| 86 | + | or demolition of any building, highway, sewer, structure, site |
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| 87 | + | work, grading, paving , or project or any improvement in the |
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| 88 | + | State of Alabama where the cost of the undertaking is fifty |
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| 89 | + | thousand dollars ($50,000) one hundred thousand dollars |
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| 90 | + | ($100,000) or more,. A person who does any of the activities |
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| 91 | + | described in this subsection shall be deemed and held to have |
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| 92 | + | engaged in the business of general contracting in the State of |
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| 93 | + | Alabama. |
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| 94 | + | (b) For the purpose of this chapter, a "general |
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| 122 | + | 56 HB418 INTRODUCED |
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| 123 | + | Page 3 |
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| 124 | + | (b) For the purpose of this chapter, a "general |
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| 72 | 125 | | contractor" is defined to include one who, for a fixed price, |
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| 73 | 126 | | commission, fee, or wage exceeding five thousand dollars |
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| 74 | 127 | | ($5,000), undertakes to construct, superintend the |
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| 75 | 128 | | construction of, repair, or renovate, any swimming pool , and |
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| 76 | 129 | | anyone. Anyone who shall engageengages in the construction, |
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| 77 | 130 | | superintending of the construction, repair, or renovation of |
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| 78 | 131 | | any swimming pool in the State of Alabama, where the cost of |
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| 79 | 132 | | the undertaking exceeds five thousand dollars ($5,000), shall |
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| 80 | 133 | | be deemed and held to have engaged in the business of general |
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| 81 | 134 | | contracting in the State of Alabama and shall be subject to |
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| 82 | 135 | | this chapter. |
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| 83 | 136 | | (c) For the purpose of this chapter , a "subcontractor" |
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| 84 | 137 | | is defined to be one who constructs, superintends, or engages |
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| 85 | 138 | | in the construction, alteration, maintenance, repair, |
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| 86 | 139 | | rehabilitation, remediation, reclamation, or demolition of any |
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| 87 | 140 | | building, highway, sewer, structure, site work, grading, |
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| 88 | 141 | | paving, or project or any improvement in the State of Alabama |
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| 89 | 142 | | where the cost of the undertaking is fifty thousand dollars |
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| 90 | 143 | | ($50,000) one hundred thousand dollars ($100,000) or more |
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| 91 | 144 | | under contract to a general contractor , as defined in |
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| 92 | 145 | | subsection (a), or another subcontractor." |
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| 93 | 146 | | "§34-8-7 |
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| 94 | 147 | | (a) The following shall be exempted from this chapter: |
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| 95 | 148 | | (1) The practice of general contracting, as defined in |
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| 96 | 149 | | Section 34-8-1, by an authorized representative or |
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| 97 | 150 | | representatives of the United States Government, State of |
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| 98 | 151 | | Alabama, incorporated town, city, or county in this state, |
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| 99 | 152 | | which is under the supervision of a licensed architect or |
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| 130 | 183 | | engineer, provided any work contracted out by the authorized |
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| 131 | 184 | | representative shall comply with the definition in this |
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| 132 | 185 | | chapter for general contractor. |
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| 133 | 186 | | (2) The construction of any residence or private |
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| 134 | 187 | | dwelling. |
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| 135 | 188 | | (3) A person, firm, or corporation constructing a |
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| 136 | 189 | | building or other improvements on his, her, or its own |
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| 137 | 190 | | property, provided that any of the work contracted out |
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| 138 | 191 | | complies with the definition in this chapter for general |
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| 139 | 192 | | contractor. A municipal governing body or municipal regulatory |
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| 140 | 193 | | body may not enact any ordinance or law restricting or |
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| 141 | 194 | | altering this exemption. Any municipal ordinance or regulation |
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| 142 | 195 | | that conflicts with this exemption is repealed effective June |
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| 143 | 196 | | 11, 2015. |
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| 144 | 197 | | (4) The installation, repair, maintenance, or removal |
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| 145 | 198 | | of facilities, equipment, or systems used in or substantially |
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| 146 | 199 | | related to the generation, transmission, or distribution of |
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| 147 | 200 | | electric power, natural gas, or telecommunications in an |
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| 148 | 201 | | emergency by a utility regulated by the Public Service |
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| 149 | 202 | | Commission, or any entity engaged in the generation, |
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| 150 | 203 | | transmission, or distribution of electric power, natural gas, |
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| 151 | 204 | | or telecommunications, or any of their respective general |
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| 152 | 205 | | contractors or subcontractors, provided the work is performed |
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| 153 | 206 | | under the supervision of a licensed architect or engineer. For |
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| 154 | 207 | | purposes of this subdivision, the term "emergency" is defined |
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| 155 | 208 | | as a situation whereby service to the consumer has been |
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| 156 | 209 | | interrupted or may be interrupted if work to remedy the |
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| 157 | 210 | | emergency is not performed and completed within 60 days, and |
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| 188 | 241 | | such other situations that are determined to be an emergency |
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| 189 | 242 | | in the discretion of the board. |
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| 190 | 243 | | (5) The repair, maintenance, replacement, |
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| 191 | 244 | | reinstallation, or removal of facilities, equipment, or |
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| 192 | 245 | | systems used in or substantially related to the generation, |
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| 193 | 246 | | transmission, or distribution of electric power, natural gas, |
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| 194 | 247 | | or telecommunications on a routine, regular, or recurring |
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| 195 | 248 | | basis by a utility regulated by the Public Service Commission |
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| 196 | 249 | | or any entity engaged in the generation, transmission, or |
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| 197 | 250 | | distribution of electric power, natural gas, or |
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| 198 | 251 | | telecommunications or any of their respective general |
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| 199 | 252 | | contractors or subcontractors, provided the work is performed |
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| 200 | 253 | | under the supervision of a licensed architect or engineer. |
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| 201 | 254 | | (6) Routine or regular maintenance, repair, |
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| 202 | 255 | | replacement, reinstallation, or removal of equipment, |
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| 203 | 256 | | specialized technological processes, or equipment facility |
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| 204 | 257 | | systems as determined by the board with regard to scope, |
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| 205 | 258 | | frequency, and specialty of the work to be performed. |
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| 206 | 259 | | (7) Routine landscape maintenance work that includes |
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| 207 | 260 | | cutting grass; trimming, replacing, and removal of bushes, |
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| 208 | 261 | | shrubs, and similar items; the placement and removal of pine |
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| 209 | 262 | | straw, mulch, bark, and similar ground covers; and other |
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| 210 | 263 | | routine ground maintenance. |
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| 211 | 264 | | (8) The provision of temporary labor by a labor broker |
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| 212 | 265 | | or other temporary labor provider that provides workers to a |
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| 213 | 266 | | general contractor to perform work under the supervision and |
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| 214 | 267 | | control of that general contractor. For the purposes of |
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| 215 | 268 | | licensing, temporary workers are deemed to fall under the |
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| 246 | 299 | | license of the general contractor to whom they are provided. |
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| 247 | 300 | | This exemption does not allow labor brokers or other temporary |
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| 248 | 301 | | labor providers to act as subcontractors or to assume a scope |
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| 249 | 302 | | of work for a project as a subcontractor. |
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| 250 | 303 | | (b) The aforementioned exemptions provided in |
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| 251 | 304 | | subsection (a) shall exclude a swimming pool contractor. |
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| 252 | 305 | | Provided, however, a person, firm, or corporation constructing |
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| 253 | 306 | | a swimming pool on his, her, or its own property shall be |
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| 254 | 307 | | exempted from this chapter. |
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| 255 | 308 | | (c) A subcontractor, as defined in Section 34-8-1(c), |
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| 256 | 309 | | is subject to and shall comply with this chapter as specified |
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| 257 | 310 | | for a general contractor except as follows: |
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| 258 | 311 | | (1) A subcontractor shall pay one-half of the fees as |
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| 259 | 312 | | required in this chapter for a general contractor. |
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| 260 | 313 | | (2) No bid limits shall be established for a |
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| 261 | 314 | | subcontractor. |
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| 262 | 315 | | (3) A subcontractor shall submit with license |
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| 263 | 316 | | application and renewals a statement of financial condition as |
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| 264 | 317 | | prescribed by the board. |
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| 265 | 318 | | (4) A subcontractor shall furnish three references from |
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| 266 | 319 | | any combination of the following: Licensed general |
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| 267 | 320 | | contractors, registered professional engineers, or registered |
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| 268 | 321 | | architects, or qualified person, as declared by the board, for |
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| 269 | 322 | | whom they have worked. If a subcontractor has only been |
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| 270 | 323 | | employed by one company, the subcontractor shall provide the |
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| 271 | 324 | | following: Three or more jobs he or she has worked on, the |
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| 272 | 325 | | amounts of the contracts, the time period of the contracts, |
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| 273 | 326 | | the location of the contracts, and a statement of experience. |
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