ENGROSSED ORIGIAL
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A BILL 1
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25-737 3
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 5
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To amend Chapter 28 of Title 47 of the District of Columbia Official Code to create a Board of 9
Construction Managers and General Contractors, to establish eligibility criteria for the 10
licensure of construction managers and residential and commercial contractors, and to 11
establish a Residential and Commercial Contractor Guaranty and Education Fund. 12
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BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 14
act may be cited as the “General Contractor Licensing Amendment Act of 2024”. 15
Sec. 2. Chapter 28 of Title 47 of the District of Columbia Official Code is amended as 16
follows: 17
(a) The table of contents is amended by adding a new part designation Part D-ii to read as 18
follows: 19
“Part D-ii. Construction managers and general contractors. 20
“Sec. 47-2853.78. Definitions. 21
“Sec. 47.2853.78a. Scope of practice for construction management and general 22
contracting. 23
“Sec. 47-2853.78b. Necessity for license; exemptions. 24
“Sec. 47-2853.78c. Eligibility criteria for construction managers and general contractors. 25
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“Sec. 47-2853.78d. Financial statements or balance sheets; surety bonds in lieu of 26
providing financial statements or balance sheets. 27
“Sec. 47-2853.78e. Recovery on bond. 28
“Sec. 47-2853.78f. Establishment of Residential and Commercial Contractor Guaranty 29
and Education Fund. 30
“Sec. 47-2853.78g. Applications for payments from Fund; maximum payment; 31
management of Fund. 32
“Sec. 47-2853.78h. Responsibility for contracting with persons lacking proper license. 33
“Sec. 47-2853.78i. Certain representations prohibited.”. 34
(b) Section 47-2853.04(a) is amended as follows: 35
(1) A new paragraph (8A) is added to read as follows: 36
“(8A) Commercial contractor;”. 37
(2) A new paragraph (11A) is added to read as follows: 38
“(11A) Construction manager;”. 39
(3) A new paragraph (29A) is added to read as follows: 40
“(29A) Residential contractor;”. 41
(c) Section 47-2853.06 is amended by adding a new subsection (i) to read as follows: 42
“(i)(1) There is established a Board of Construction Managers and General Contractors to 43
consist of 8 members, of whom: 44
“(A) One shall be a construction manager licensed in the District with at 45
least 2 years of experience in construction management; 46
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“(B) Two shall be general contractors licensed in the District with at least 47
2 years of experience in residential property construction or repair; 48
“(C) Two shall be general contractors licensed in the District with at least 49
2 years of experience in commercial property construction or repair; 50
“(D) One shall be a consumer member; 51
“(E) One shall be a member of the District of Columbia Bar in good 52
standing engaged in the practice of construction law or finance law; and 53
“(F) One shall be an ex officio non-voting member designated by the 54
Director of the Department of Buildings. 55
“(2) The Board shall regulate the practice of construction management and 56
general contracting, except as provided for in §§ 47-2853.78a and 47-2853.78b(b). The Board 57
may establish insurance requirements, subcategories for licensure, education, and experience 58
requirements for licensure, and other requirements.”. 59
(d) Subchapter I-B is amended by adding a new Part D-ii to read as follows: 60
“Sec. 47-2853.78. Definitions. 61
“As used in this part: 62
“(1) “Board” means the Board of Construction Managers and General 63
Contractors. 64
“(2) “Commercial contractor” means a contractor who acts with regard to all or 65
any part of any real property or appurtenance that is not residential real property. 66
“(3) “Commercial property” shall have the same meaning as set forth in § 42–67
2103(1A). 68
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“(4) “Construction manager” means any person, firm, partnership, corporation, 69
association, or other organization or entity which, for compensation, is contracted to supervise 70
and coordinate the work of design professionals and multiple general contractors, while allowing 71
the design professionals and general contractors to control individual operations and the manner 72
of design and construction. Services provided by a construction manager may include: 73
“(A) Coordination, management, or supervision of design or construction; 74
“(B) Cost management, including estimates of construction costs and 75
development of project budgets; 76
“(C) Scheduling, which may include critical path techniques, for all phases 77
of the project; 78
“(D) Design review, including review of formal design submission and 79
construction feasibility; and 80
“(E) Bid packaging and contractor selection. 81
“(5) “Contractor” means any person, firm, partnership, corporation, association, 82
or other organization or entity which, for compensation or with the intent to sell, undertakes or 83
offers to undertake, or submits a bid to construct, alter, repair, add to, subtract from, improve, 84
move, wreck, or demolish any building, highway, road, railroad, excavation, or other structure, 85
project, development or improvement. 86
“(6) “Licensee” means a residential contractor, commercial contractor, or 87
construction manager licensed under this part. 88
“(7) “Residential contractor” means a contractor acting with regard to all or any 89
part of a residential real property or appurtenance. 90
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“(8) “Residential real property” means: 91
“(A) A single-family residential dwelling or unit, including a 92
condominium, cooperative unit, townhouse, or rowhouse; or 93
“(B) Improved real estate that consists of two residential units or more. 94
“Sec. 47-2853.78a. Scope of practice for construction management and general 95
contracting. 96
“(a) For purposes of this part, the term “practice of construction management” means 97
scheduling, estimating and approving, coordinating, managing or directing phases of a project 98
for the construction, demolition, alteration, or reconstruction of any commercial or residential 99
property. 100
“(b)(1) For purposes of this part, the term “practice of general contracting” means 101
undertaking or offering to undertake, or submitting a bid to construct, alter, repair, add to, 102
subtract from, improve, move, wreck, or demolish any building, excavation or other structure, 103
project, development or improvement with respect to residential real property or commercial 104
property. 105
“(2) For purposes of this part, the term “practice of general contracting” shall not 106
include construction work on electrical systems, elevators, fire protection systems, refrigeration 107
or air conditioning systems, or any other work that requires a specific trade license issued by the 108
Board of Industrial Trades pursuant to Subchapter I-B. 109
“Sec. 47-2853.78b. Necessity for license; exemptions. 110
“(a) No person may engage in the District in any activity as a construction manager, 111
commercial contractor, or residential contractor, or submit a bid to perform work as a 112
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construction manager, commercial contractor, or residential contractor, as defined in § 47-113
2853.78, unless that person holds an applicable license issued under the provisions of this part. 114
“(b) The following are exempt from licensure: 115
“(1) Work done exclusively by employees of the United States government or the 116
District of Columbia; 117
“(2) The sale or installation of a finished product, material or article, or 118
merchandise that is not actually fabricated into and does not become a permanent fixed part of 119
the structure; 120
“(3) A material supplier who renders advice concerning use of products sold and 121
who does not provide construction or installation services; 122
“(4) Work performed by an employer’s employees, for which the employees are 123
paid regular wages and not a contract price, on commercial property or residential real property 124
owned or leased by the employer which is not intended for speculative sale or lease; 125
“(5) Work performed by a public utility, as defined in § 34–214; 126
“(6) Work performed directly under the supervision of a licensed residential or 127
commercial contractor when the work is performed by: 128
“(A) A student in good standing and enrolled in a public or private 129
institution of higher education; 130
“(B) A student enrolled in a career or technical education program; or 131
“(C) An apprentice; and 132
“(7) Work personally performed on a residential real property by the owner or 133
occupant thereof. 134
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“Sec. 47-2853.78c. Eligibility criteria for construction managers and general contractors. 135
“(a) Notwithstanding subsection (b) of this section, an applicant for licensure shall 136
establish to the satisfaction of the Board that the applicant: 137
“(1) For a construction manager license: 138
“(A) Holds one of the following licenses: 139
“(i) Commercial contractor; 140
“(ii) Residential contractor; 141
“(iii) Professional engineer; or 142
“(iv) Architect; and 143
“(B) Has not had a license held under subparagraph (A) of this paragraph 144
denied, suspended, or revoked within one year prior to the date on which the application is filed. 145
“(2) For a commercial or residential contractor license: 146
“(A) Has at least 4,000 hours or 2 years of experience performing 147
construction work on commercial properties if he or she is applying for a commercial contractor 148
license, or has at least 4,000 hours or 2 years of experience performing home improvement or 149
construction work within the last 6 years if he or she applying for a residential contractor license, 150
or has comparable experience or a combination of education and experience that the Board 151
deems equivalent; 152
“(B) Has passed an examination or examinations given by or under the 153
direction of the Board, or any other examination acceptable to the Board; 154
“(C) Is compliant with financial statement, balance sheet, or bonding 155
requirements under § 47-2853.78d and any insurance requirements established by the Board; 156
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“(D) Has not had a license issued pursuant to this part denied, suspended, 157
or revoked within one year prior to the date on which the application is filed; and 158
“(E) Provides such additional evidence as the Board determines is 159
necessary. 160
“(b) A construction manager, residential contractor, or commercial contractor with an 161
active basic business license issued prior to the effective date of this act is deemed to be eligible 162
for licensure until the expiration of his or her basic business license and shall satisfy the 163
eligibility requirements for licensure at the renewal of his or her business license. 164
“Sec. 47-2853.78d. Financial statements or balance sheets; surety bonds in lieu of 165
providing financial statements or balance sheets. 166
“(a) As proof of financial responsibility, an applicant for a commercial or residential 167
contractor license shall demonstrate compliance with a minimum net worth requirement fixed by 168
the Board by providing either: 169
“(1) A financial statement on a form prescribed by the Board, subject to additional 170
verification if the Board determines that sufficient questions or ambiguities exist in the 171
applicant’s presentation of financial information; or 172
“(2) A balance sheet reviewed by a certified public accountant licensed by the 173
Board of Accountancy; 174
“(b)(1) Notwithstanding subsection (a) of this section, an applicant for a commercial or 175
residential contractor license may demonstrate financial responsibility by electing to obtain and 176
maintain a bond: 177
“(A) In the amount of $25,000 for a residential contractor; or 178
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“(B) In an amount fixed by the Board, for a commercial contractor. 179
“(2) Proof of current bond shall be submitted to the Board and shall come from a 180
corporate surety certified by the U.S. Department of Treasury to do business pursuant to 31 181
U.S.C. § 9305. 182
“Sec. 47-2853.78e. Recovery on bond. 183
“(a)(1) If a commercial or residential contractor who elected to hold a continuous bond 184
pursuant to § 47-2853.78d(b) fails to satisfy a judgment awarded by a court of competent 185
jurisdiction in the District for improper or dishonest conduct, the judgment creditor shall have a 186
claim against the surety bond for such damages. In order to recover the amount of any unpaid 187
judgment, up to but not exceeding the maximum liability fixed by the Board, the judgment 188
creditor shall meet the eligibility requirements of § 47-2853.78g(b)(1) through (5) and shall bring 189
suit directly on the surety bond no later than 12 months after the judgment becomes final. 190
“(2) The liability of such surety shall be limited to actual monetary loss, court 191
costs, and attorney fees assessed against the contractor as part of the underlying judgment. The 192
liability of such surety shall not include any sums representing interest or punitive damages 193
assessed against the contractor. 194
“(3) The corporate surety shall notify the Board when a claim is made against a 195
contractor’s bond, when a claim is paid, and when the bond is cancelled. Such notification shall 196
include the amount of the claim and the circumstances surrounding the claim. Notification of 197
cancellation shall include the effective date and reason for the cancellation. The bond may be 198
cancelled as to future liability by the contractor’s surety upon 30 days’ notice to the Board. 199
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“Sec. 47-2853.78f. Establishment of Residential and Commercial Contractor Guaranty 200
and Education Fund. 201
“(a) There is established a Residential and Commercial Contractor Guaranty and 202
Education Fund (“Fund”). 203
“(b)(1) On or after the effective date of the Construction Manager and General Contractor 204
Licensing Amendment Act of 2024, as approved by the Committee of the Whole on September 205
17, 2024 (Committee Print of Bill 25-737), every commercial residential and residential 206
contractor licensed under this subchapter shall, as a condition for renewing his or her license, 207
pay, in addition to other fees required under this subchapter, a sum to be established by the 208
Mayor for deposit into the Fund. 209
“(2) Such amounts as may be appropriated to the Fund shall be deposited into the 210
Fund. 211
“(3)(A) The money deposited into the Fund but not expended in a fiscal year shall 212
not revert to the unassigned fund balance of the General Fund of the District of Columbia at the 213
end of a fiscal year, or at any other time. 214
“(B) Subject to authorization in an approved budget and financial plan, 215
any funds appropriated in the Fund shall be continually available without regard to fiscal year 216
limitation. 217
“Sec. 47-2853.78g. Applications for payments from Fund; maximum payment; 218
management of Fund. 219
“(a) Any person who obtains final judgment, including a settlement reduced to a final 220
judgment, in any court of competent jurisdiction in the District against any other person on the 221
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grounds of fraud, misrepresentation, deceit, embezzlement, false pretenses, forgery, or violations 222
of the provisions of this subchapter, arising directly out of any transaction which occurred when 223
the other person was licensed under this subchapter, during the course of which the licensee 224
performed acts for which a license is required under this subchapter, and which transaction 225
occurred on or after the effective date of the Construction Manager and General Contractor 226
Licensing Amendment Act of 2024, as approved by the Committee of the Whole on September 227
17, 2024 (Committee Print of Bill 25-737) (“Act”); and who meets the requirements of 228
subsection (b) of this section, may, upon termination of all proceedings, including reviews and 229
appeals in connection with the judgment, file a written application, under oath, with the Mayor 230
for an order directing payment from the Fund of the amount of actual and direct loss in the 231
transaction (excluding the amount of any interest, attorney’s fees, court costs, or punitive or 232
exemplary damages) which remains unpaid upon the judgment. The application shall be filed no 233
later 12 months after the date on which the judgment became final. 234
“(b) A person filing an application meets the requirements of this subsection if: 235
“(1) The person is not an employee of the licensee; 236
“(2) The person is not a vendor of the licensee; 237
“(3) The person is not another licensee; 238
“(4) The person is not spouse or child of the licensee; 239
“(5) The person is not a financial or lending institution or any person whose 240
business involves the construction or development of real property; 241
“(6) The person has made an investigation as is reasonably necessary to determine 242
whether the judgment debtor possesses real or personal property or other assets that are liable to 243
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be sold or applied in satisfaction of the final judgment and has filed with the Board an affidavit 244
that states that the investigation has been made; and 245
“(7) The investigation required pursuant to paragraph (6) of this subsection has 246
not disclosed the existence of any real or personal property or other assets, or, if the investigation 247
has disclosed the existence of real or personal property or other assets (which shall be described 248
in the affidavit), the person has taken all action necessary for the sale or application, and the 249
amount so realized is insufficient to satisfy the judgment (which amount shall have been stated in 250
the affidavit together with the balance remaining due on the judgment after sale or application). 251
“(c) The maximum amount that may be paid from the Fund to satisfy in whole or in part a 252
final judgment against a licensee as provided for herein, including any amount paid from 253
recovery on a contractors bond pursuant to § 47-2853.78e, shall be as follows: 254
Amount 255
$10,000 ...... Judgment is final during the first year following the effective date of the Act; 256
$20,000 ...... Judgment is final during the second year following the effective date of the Act; 257
$30,000 ...... Judgment is final during the third year following the effective date of the Act; 258
$40,000 ...... Judgment is final during the fourth year following the effective date of the Act; 259
$50,000 ...... Judgment is final during the fifth year following the effective date of the Act, and 260
thereafter. 261
“(d) The aggregate of claims by judgment creditors against the Fund based upon an 262
unpaid final judgment arising out of the acts of the licensee in connection with a single 263
transaction shall be $50,000, including any amount paid from recovery on a contractors bond 264
pursuant to § 47-2853.78e, regardless of the number of claimants. If the aggregate of claims 265
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exceeds $50,000, the Board shall pay $50,000 to the claimants in proportion to the amounts of 266
the claimants’ final judgments against the Fund which remain unpaid. If the Mayor has reason to 267
believe that there may be additional claims against the Fund arising out of the same transaction, 268
the Mayor may withhold payment from the Fund involving the licensee for a period of not more 269
than one year. 270
“(e) Any person who commences an action for a judgment which could be the basis for 271
an order of the Mayor directing payment from the Fund shall notify the Mayor in writing within 272
30 days after the date of the commencement of the action. Any failure to notify the Mayor as 273
required under this subsection shall be grounds for the Mayor to deny an application of the 274
person for payment from the Fund. The Mayor may waive this requirement if good cause is 275
shown for failure to notify. The Mayor may, in accordance with the provisions of this subchapter, 276
commence an investigation of the complaint and hold a hearing to determine whether any license 277
issued pursuant to this subchapter should be suspended or revoked. 278
“(f) Whenever an aggrieved person who has become a judgment creditor as provided in 279
this section files an application for an order directing payment from the Fund, the Mayor shall 280
cause a copy of the application to be served on the licensee alleged to be the judgment debtor, by 281
certified mail, return receipt requested, to the address of record of the licensee, and the matter 282
shall be set for hearing before the Board. Whenever the Mayor determines that the applicant is 283
entitled to payment from the Fund, the Mayor shall issue an order directing payment from the 284
Fund in an amount consistent with this subchapter. 285
“(g) If the Mayor issues an order directing payment from the Fund of any amount 286
towards satisfaction of a judgment against a licensed residential contractor, commercial 287
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contractor, or construction manager, the license of the person shall be automatically suspended 288
upon the issuance of the order. No residential contractor, commercial contractor, or construction 289
manager shall be eligible to have his or her license restored until he or she has repaid in full the 290
amount ordered paid from the Fund, plus interest at an annual rate established by the Mayor from 291
the date of payment of the amount from the Fund, and has satisfied all rules governing licensure 292
as set forth in this subchapter. 293
“(h) Whenever amounts deposited in the Fund are insufficient to satisfy any duly 294
authorized claim or portion thereof, the Mayor shall, when sufficient money has been deposited 295
or portions thereof, satisfy the unpaid claims in the order that the applications relating thereto 296
were originally filed with the Mayor, including accumulated interest at an annual rate established 297
by the Mayor for a period not to exceed one year in duration. 298
“(i) All sums paid pursuant to this section shall be deposited with the D.C. Treasurer and 299
shall be credited to the Fund. Any interest earned from any deposits and investments of the Fund 300
also shall be credited to the Fund. The interest to be credited to the Fund may be determined, 301
consistent with the financial management procedures of the District and may be revised from 302
time to time, as a pro-rata share of the interest earned on pooled cash, deposits, and investments. 303
“(j) The Mayor shall, by rule, establish minimum and maximum balances for the Fund. 304
“(k) Should the Office of the Chief Financial Officer project that the year-end Fund 305
balance for any fiscal year will be less than the minimum balance established pursuant 306
subsection (j) of this section, the Mayor shall assess each licensee an amount, not to exceed $50 307
during any license year, within 30 calendar days, which is sufficient, when combined with 308
similar assessments of other licensees, to bring the balance of the Fund up to the minimum 309
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established. Whenever the amount deposited in the Fund is more than the maximum balance 310
established, the Mayor shall waive contributions to the Fund required by this subchapter. 311
“(l) Notice of an assessment required pursuant to subsection (k) of this section shall be 312
sent, by certified mail, to each licensee at his or her address of record. The Board may waive the 313
certified mail requirement to licensees only when the Board is doing a mass mailing, the cost of 314
which makes the application of such fee an undue financial burden on the Board and may, in 315
such circumstances, send notice of the assessment by regular mail to each licensee at his or her 316
address of record. The Board shall also post notice of the assessment in at least 2 trade 317
publications distributed within the metropolitan area and in a local newspaper in the real estate 318
section. Payment of the assessment shall be made within 30 calendar days after the receipt by the 319
licensee of the notice. 320
“(m) A failure by any licensee to pay an assessment required pursuant to subsection (k) of 321
this section within 30 days after the licensee has received notice of the assessment shall result in 322
the automatic suspension of the license of the licensee. The Board shall send a notice of the 323
suspension, by certified mail, to the address of record of the licensee within 5 days after the 324
suspension. The license shall be restored only upon the actual receipt by the Mayor of the 325
delinquent assessment, plus any interest and penalties as the Mayor may prescribe by rule. 326
“(n) The Board may expend a sum not to exceed 20% of the amounts deposited in the 327
Fund, on October 1 of each year, for the establishment and maintenance of educational programs 328
for improving the competency of licensees and applicants for licensure so as to further protect 329
the public interest, and for conferences, workshops, and educational programs for real estate 330
license officials. The cost of administering the Fund shall be paid out of the Fund. 331
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“(o) When the Mayor has ordered a sum from the Fund to be paid to a judgment creditor, 332
the Mayor shall be subrogated to all of the rights of the judgment creditor up to the amount paid 333
and the judgment creditor shall assign to the Mayor all rights, title, and interest in the judgment 334
up to the amount paid from the Fund. Any amount and interest so recovered by the Mayor or the 335
judgment creditor on the judgment up to the amount paid shall be deposited in the Fund. 336
“Sec. 47-2853.78h. Responsibility for contracting with persons lacking proper license. 337
“Any construction manager or contractor that directly employs or otherwise contracts 338
with a person who is not licensed by the Board for work requiring a license under this part shall 339
be solely responsible for any monetary penalty or other sanction resulting from the act of 340
employing or contracting with a person who lacks a proper license based upon such person’s 341
failure to obtain or maintain the required license. 342
“Sec. 47-2853.78i. Certain representations prohibited. 343
“Unless licensed under this subchapter, no person shall assume or use the titles or 344
designations “construction manager,” “commercial contractor,” or “residential contractor,” or 345
any other title, designation, words, letters, abbreviations, sign, card, or device, tending to indicate 346
that the person is licensed as a construction manager, commercial contractor, or residential 347
contractor in the District.”. 348
Sec. 3. Applicability. 349
(a) This act shall apply upon the later of January 1, 2026 or 120 days after the date of 350
inclusion of its fiscal effect in an approved budget and financial plan. 351
(b) The Chief Financial Officer shall certify the date of the inclusion of the fiscal effect in 352
an approved budget and financial plan and provide notice to the Budget Director of the Council 353
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of the certification. 354
(c)(1) The Budget Director shall cause the notice of the certification to be published in 355
the District of Columbia Register. 356
(2) The date of publication of the notice of the certification shall not affect the 357
applicability of this act. 358
Sec. 4. Fiscal impact statement. 359
The Council adopts the fiscal impact statement in the committee report as the fiscal 360
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 361
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 362
Sec. 5. Effective date. 363
This act shall take effect following approval by the Mayor (or in the event of veto by the 364
Mayor, action by the Council to override the veto), a 30-day period of congressional review as 365
provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 366
24, 1973, (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 367
Columbia Register. 368