District Of Columbia 2023-2024 Regular Session

District Of Columbia Council Bill B25-0737 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	ENROLLED ORIGINAL
	1	+	ENGROSSED ORIGIAL
	2	+
2	3
3	4
4	5
5	6		1
6	7
7		-	AN ACT
8		-
9		-	_________________
10		-
11		-	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
12		-
13		-	_________________________
14		-
15		-
16		-	To amend Chapter 28 of Title 47 of the District of Columbia Official Code to create a Board of
17		-	Construction Managers and General Contractors, to establish eligibility criteria for the
18		-	licensure of construction managers and residential and commercial contractors, and to
19		-	establish a Residential and Commercial Contractor Guaranty and Education Fund.
20		-
21		-	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
22		-	act may be cited as the “General Contractor Licensing Amendment Act of 2024”.
23		-
24		-	Sec. 2. Chapter 28 of Title 47 of the District of Columbia Official Code is amended as
25		-	follows:
26		-	(a) The table of contents is amended by adding a new part designation Part D-ii to read as
27		-	follows:
28		-	“Part D-ii. Construction managers and general contractors.
29		-	“Sec. 47-2853.78. Definitions.
30		-	“Sec. 47.2853.78a. Scope of practice for construction management and general
31		-	contracting.
32		-	“Sec. 47-2853.78b. Necessity for license; exemptions.
33		-	“Sec. 47-2853.78c. Eligibility criteria for construction managers and general contractors.
34		-	“Sec. 47-2853.78d. Financial statements or balance sheets; surety bonds in lieu of
35		-	providing financial statements or balance sheets.
36		-	“Sec. 47-2853.78e. Recovery on bond.
37		-	“Sec. 47-2853.78f. Establishment of Residential and Commercial Contractor Guaranty
38		-	and Education Fund.
39		-	“Sec. 47-2853.78g. Applications for payments from Fund; maximum payment;
40		-	management of Fund.
41		-	“Sec. 47-2853.78h. Responsibility for contracting with persons lacking proper license.
42		-	“Sec. 47-2853.78i. Certain representations prohibited.”.
43		-	(b) Section 47-2853.04(a) is amended as follows:
44		-	(1) A new paragraph (8A) is added to read as follows:
45		-	“(8A) Commercial contractor;”.
46		-	(2) A new paragraph (11A) is added to read as follows: ENROLLED ORIGINAL
47		-
48		-
49		-
	8	+	A BILL 1
	9	+	2
	10	+	25-737 3
	11	+	4
	12	+	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 5
	13	+	6
	14	+	7
	15	+	8
	16	+	To amend Chapter 28 of Title 47 of the District of Columbia Official Code to create a Board of 9
	17	+	Construction Managers and General Contractors, to establish eligibility criteria for the 10
	18	+	licensure of construction managers and residential and commercial contractors, and to 11
	19	+	establish a Residential and Commercial Contractor Guaranty and Education Fund. 12
	20	+	13
	21	+	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 14
	22	+	act may be cited as the “General Contractor Licensing Amendment Act of 2024”. 15
	23	+	Sec. 2. Chapter 28 of Title 47 of the District of Columbia Official Code is amended as 16
	24	+	follows: 17
	25	+	(a) The table of contents is amended by adding a new part designation Part D-ii to read as 18
	26	+	follows: 19
	27	+	“Part D-ii. Construction managers and general contractors. 20
	28	+	“Sec. 47-2853.78. Definitions. 21
	29	+	“Sec. 47.2853.78a. Scope of practice for construction management and general 22
	30	+	contracting. 23
	31	+	“Sec. 47-2853.78b. Necessity for license; exemptions. 24
	32	+	“Sec. 47-2853.78c. Eligibility criteria for construction managers and general contractors. 25
50	33		2
51	34
52		-	“(11A) Construction manager;”.
53		-	(3) A new paragraph (29A) is added to read as follows:
54		-	“(29A) Residential contractor;”.
55		-	(c) Section 47-2853.06 is amended by adding a new subsection (i) to read as follows:
56		-	“(i)(1) There is established a Board of Construction Managers and General Contractors to
57		-	consist of 8 members, of whom:
58		-	“(A) One shall be a construction manager licensed in the District with at
59		-	least 2 years of experience in construction management;
60		-	“(B) Two shall be general contractors licensed in the District with at least
61		-	2 years of experience in residential property construction or repair;
62		-	“(C) Two shall be general contractors licensed in the District with at least
63		-	2 years of experience in commercial property construction or repair;
64		-	“(D) One shall be a consumer member;
65		-	“(E) One shall be a member of the District of Columbia Bar in good
66		-	standing engaged in the practice of construction law or finance law; and
67		-	“(F) One shall be an ex officio non-voting member designated by the
68		-	Director of the Department of Buildings.
69		-	“(2) The Board shall regulate the practice of construction management and
70		-	general contracting, except as provided for in §§ 47-2853.78a and 47-2853.78b(b). The Board
71		-	may establish insurance requirements, subcategories for licensure, education, and experience
72		-	requirements for licensure, and other requirements.”.
73		-	(d) Subchapter I-B is amended by adding a new Part D-ii to read as follows:
74		-	“Part D-ii. Construction managers and general contractors.
75		-	“Sec. 47-2853.78. Definitions.
76		-	“As used in this part:
77		-	“(1) “Board” means the Board of Construction Managers and General
78		-	Contractors.
79		-	“(2) “Commercial contractor” means a contractor who acts with regard to all or
80		-	any part of any real property or appurtenance that is not residential real property.
81		-	“(3) “Commercial property” shall have the same meaning as set forth in § 42–
82		-	2103(1A).
83		-	“(4) “Construction manager” means any person, firm, partnership, corporation,
84		-	association, or other organization or entity which, for compensation, is contracted to supervise
85		-	and coordinate the work of design professionals and multiple general contractors, while allowing
86		-	the design professionals and general contractors to control individual operations and the manner
87		-	of design and construction. Services provided by a construction manager may include:
88		-	“(A) Coordination, management, or supervision of design or construction;
89		-	“(B) Cost management, including estimates of construction costs and
90		-	development of project budgets; ENROLLED ORIGINAL
91		-
92		-
93		-
	35	+	“Sec. 47-2853.78d. Financial statements or balance sheets; surety bonds in lieu of 26
	36	+	providing financial statements or balance sheets. 27
	37	+	“Sec. 47-2853.78e. Recovery on bond. 28
	38	+	“Sec. 47-2853.78f. Establishment of Residential and Commercial Contractor Guaranty 29
	39	+	and Education Fund. 30
	40	+	“Sec. 47-2853.78g. Applications for payments from Fund; maximum payment; 31
	41	+	management of Fund. 32
	42	+	“Sec. 47-2853.78h. Responsibility for contracting with persons lacking proper license. 33
	43	+	“Sec. 47-2853.78i. Certain representations prohibited.”. 34
	44	+	(b) Section 47-2853.04(a) is amended as follows: 35
	45	+	(1) A new paragraph (8A) is added to read as follows: 36
	46	+	“(8A) Commercial contractor;”. 37
	47	+	(2) A new paragraph (11A) is added to read as follows: 38
	48	+	“(11A) Construction manager;”. 39
	49	+	(3) A new paragraph (29A) is added to read as follows: 40
	50	+	“(29A) Residential contractor;”. 41
	51	+	(c) Section 47-2853.06 is amended by adding a new subsection (i) to read as follows: 42
	52	+	“(i)(1) There is established a Board of Construction Managers and General Contractors to 43
	53	+	consist of 8 members, of whom: 44
	54	+	“(A) One shall be a construction manager licensed in the District with at 45
	55	+	least 2 years of experience in construction management; 46
94	56		3
95	57
96		-	“(C) Scheduling, which may include critical path techniques, for all phases
97		-	of the project;
98		-	“(D) Design review, including review of formal design submission and
99		-	construction feasibility; and
100		-	“(E) Bid packaging and contractor selection.
101		-	“(5) “Contractor” means any person, firm, partnership, corporation, association,
102		-	or other organization or entity which, for compensation or with the intent to sell, undertakes or
103		-	offers to undertake, or submits a bid to construct, alter, repair, add to, subtract from, improve,
104		-	move, wreck, or demolish any building, highway, road, railroad, excavation, or other structure,
105		-	project, development or improvement.
106		-	“(6) “Licensee” means a residential contractor, commercial contractor, or
107		-	construction manager licensed under this part.
108		-	“(7) “Residential contractor” means a contractor acting with regard to all or any
109		-	part of a residential real property or appurtenance.
110		-	“(8) “Residential real property” means:
111		-	“(A) A single-family residential dwelling or unit, including a
112		-	condominium, cooperative unit, townhouse, or rowhouse; or
113		-	“(B) Improved real estate that consists of 2 residential units or more.
114		-	“Sec. 47-2853.78a. Scope of practice for construction management and general
115		-	contracting.
116		-	“(a) For purposes of this part, the term “practice of construction management” means
117		-	scheduling, estimating and approving, coordinating, managing or directing phases of a project
118		-	for the construction, demolition, alteration, or reconstruction of any commercial or residential
119		-	property.
120		-	“(b)(1) For purposes of this part, the term “practice of general contracting” means
121		-	undertaking or offering to undertake, or submitting a bid to construct, alter, repair, add to,
122		-	subtract from, improve, move, wreck, or demolish any building, excavation or other structure,
123		-	project, development, or improvement with respect to residential real property or commercial
124		-	property.
125		-	“(2) For purposes of this part, the term “practice of general contracting” does not
126		-	include construction work on electrical systems, elevators, fire protection systems, refrigeration
127		-	or air conditioning systems, or any other work that requires a specific trade license issued by the
128		-	Board of Industrial Trades pursuant to this subchapter.
129		-	“Sec. 47-2853.78b. Necessity for license; exemptions.
130		-	“(a) No person may engage in the District in any activity as a construction manager,
131		-	commercial contractor, or residential contractor, or submit a bid to perform work as a
132		-	construction manager, commercial contractor, or residential contractor, as defined in § 47-
133		-	2853.78, unless that person holds an applicable license issued under the provisions of this part.
134		-	“(b) The following are exempt from licensure: ENROLLED ORIGINAL
135		-
136		-
137		-
	58	+	“(B) Two shall be general contractors licensed in the District with at least 47
	59	+	2 years of experience in residential property construction or repair; 48
	60	+	“(C) Two shall be general contractors licensed in the District with at least 49
	61	+	2 years of experience in commercial property construction or repair; 50
	62	+	“(D) One shall be a consumer member; 51
	63	+	“(E) One shall be a member of the District of Columbia Bar in good 52
	64	+	standing engaged in the practice of construction law or finance law; and 53
	65	+	“(F) One shall be an ex officio non-voting member designated by the 54
	66	+	Director of the Department of Buildings. 55
	67	+	“(2) The Board shall regulate the practice of construction management and 56
	68	+	general contracting, except as provided for in §§ 47-2853.78a and 47-2853.78b(b). The Board 57
	69	+	may establish insurance requirements, subcategories for licensure, education, and experience 58
	70	+	requirements for licensure, and other requirements.”. 59
	71	+	(d) Subchapter I-B is amended by adding a new Part D-ii to read as follows: 60
	72	+	“Sec. 47-2853.78. Definitions. 61
	73	+	“As used in this part: 62
	74	+	“(1) “Board” means the Board of Construction Managers and General 63
	75	+	Contractors. 64
	76	+	“(2) “Commercial contractor” means a contractor who acts with regard to all or 65
	77	+	any part of any real property or appurtenance that is not residential real property. 66
	78	+	“(3) “Commercial property” shall have the same meaning as set forth in § 42–67
	79	+	2103(1A). 68
138	80		4
139	81
140		-	“(1) Work done exclusively by employees of the United States government or the
141		-	District of Columbia;
142		-	“(2) The sale or installation of a finished product, material or article, or
143		-	merchandise that is not actually fabricated into and does not become a permanent fixed part of
144		-	the structure;
145		-	“(3) A material supplier who renders advice concerning use of products sold and
146		-	who does not provide construction or installation services;
147		-	“(4) Work performed by an employer’s employees, for which the employees are
148		-	paid regular wages and not a contract price, on commercial property or residential real property
149		-	owned or leased by the employer which is not intended for speculative sale or lease;
150		-	“(5) Work performed by a public utility, as defined in § 34–214;
151		-	“(6) Work performed directly under the supervision of a licensed residential or
152		-	commercial contractor when the work is performed by:
153		-	“(A) A student in good standing and enrolled in a public or private
154		-	institution of higher education;
155		-	“(B) A student enrolled in a career or technical education program; or
156		-	“(C) An apprentice; and
157		-	“(7) Work personally performed on a residential real property by the owner or
158		-	occupant thereof.
159		-	“Sec. 47-2853.78c. Eligibility criteria for construction managers and general contractors.
160		-	“(a) Notwithstanding subsection (b) of this section, an applicant for licensure shall
161		-	establish to the satisfaction of the Board that the applicant:
162		-	“(1) For a construction manager license:
163		-	“(A) Holds one of the following licenses:
164		-	“(i) Commercial contractor;
165		-	“(ii) Residential contractor;
166		-	“(iii) Professional engineer; or
167		-	“(iv) Architect; and
168		-	“(B) Has not had a license held under subparagraph (A) of this paragraph
169		-	denied, suspended, or revoked within one year prior to the date on which the application is filed.
170		-	“(2) For a commercial or residential contractor license:
171		-	“(A) Has at least 4,000 hours or 2 years of experience performing
172		-	construction work on commercial properties if he or she is applying for a commercial contractor
173		-	license, or has at least 4,000 hours or 2 years of experience performing home improvement or
174		-	construction work within the last 6 years if he or she applying for a residential contractor license,
175		-	or has comparable experience or a combination of education and experience that the Board
176		-	deems equivalent;
177		-	“(B) Has passed an examination or examinations given by or under the
178		-	direction of the Board, or any other examination acceptable to the Board; ENROLLED ORIGINAL
179		-
180		-
181		-
	82	+	“(4) “Construction manager” means any person, firm, partnership, corporation, 69
	83	+	association, or other organization or entity which, for compensation, is contracted to supervise 70
	84	+	and coordinate the work of design professionals and multiple general contractors, while allowing 71
	85	+	the design professionals and general contractors to control individual operations and the manner 72
	86	+	of design and construction. Services provided by a construction manager may include: 73
	87	+	“(A) Coordination, management, or supervision of design or construction; 74
	88	+	“(B) Cost management, including estimates of construction costs and 75
	89	+	development of project budgets; 76
	90	+	“(C) Scheduling, which may include critical path techniques, for all phases 77
	91	+	of the project; 78
	92	+	“(D) Design review, including review of formal design submission and 79
	93	+	construction feasibility; and 80
	94	+	“(E) Bid packaging and contractor selection. 81
	95	+	“(5) “Contractor” means any person, firm, partnership, corporation, association, 82
	96	+	or other organization or entity which, for compensation or with the intent to sell, undertakes or 83
	97	+	offers to undertake, or submits a bid to construct, alter, repair, add to, subtract from, improve, 84
	98	+	move, wreck, or demolish any building, highway, road, railroad, excavation, or other structure, 85
	99	+	project, development or improvement. 86
	100	+	“(6) “Licensee” means a residential contractor, commercial contractor, or 87
	101	+	construction manager licensed under this part. 88
	102	+	“(7) “Residential contractor” means a contractor acting with regard to all or any 89
	103	+	part of a residential real property or appurtenance. 90
182	104		5
183	105
184		-	“(C) Is compliant with financial statement, balance sheet, or bonding
185		-	requirements under § 47-2853.78d and any insurance requirements established by the Board;
186		-	“(D) Has not had a license issued pursuant to this part denied, suspended,
187		-	or revoked within one year prior to the date on which the application is filed; and
188		-	“(E) Provides such additional evidence as the Board determines is
189		-	necessary.
190		-	“(b) A construction manager, residential contractor, or commercial contractor with an
191		-	active basic business license issued prior to the effective date of this act is deemed to be eligible
192		-	for licensure until the expiration of his or her basic business license and shall satisfy the
193		-	eligibility requirements for licensure at the renewal of his or her business license.
194		-	“Sec. 47-2853.78d. Financial statements or balance sheets; surety bonds in lieu of
195		-	providing financial statements or balance sheets.
196		-	“(a) As proof of financial responsibility, an applicant for a commercial or residential
197		-	contractor license shall demonstrate compliance with a minimum net worth requirement fixed by
198		-	the Board by providing either:
199		-	“(1) A financial statement on a form prescribed by the Board, subject to additional
200		-	verification if the Board determines that sufficient questions or ambiguities exist in the
201		-	applicant’s presentation of financial information; or
202		-	“(2) A balance sheet reviewed by a certified public accountant licensed by the
203		-	Board of Accountancy;
204		-	“(b)(1) Notwithstanding subsection (a) of this section, an applicant for a commercial or
205		-	residential contractor license may demonstrate financial responsibility by electing to obtain and
206		-	maintain a bond:
207		-	“(A) In the amount of $25,000 for a residential contractor; or
208		-	“(B) In an amount fixed by the Board, for a commercial contractor.
209		-	“(2) Proof of current bond shall be submitted to the Board and shall come from a
210		-	corporate surety certified by the U.S. Department of Treasury to do business pursuant to 31
211		-	U.S.C. § 9305.
212		-	“Sec. 47-2853.78e. Recovery on bond.
213		-	“(a)(1) If a commercial or residential contractor who elected to hold a continuous bond
214		-	pursuant to § 47-2853.78d(b) fails to satisfy a judgment awarded by a court of competent
215		-	jurisdiction in the District for improper or dishonest conduct, the judgment creditor shall have a
216		-	claim against the surety bond for such damages. In order to recover the amount of any unpaid
217		-	judgment, up to but not exceeding the maximum liability fixed by the Board, the judgment
218		-	creditor shall meet the eligibility requirements of § 47-2853.78g(b)(1) through (5) and shall bring
219		-	suit directly on the surety bond no later than 12 months after the judgment becomes final.
220		-	“(2) The liability of such surety shall be limited to actual monetary loss, court
221		-	costs, and attorney fees assessed against the contractor as part of the underlying judgment. The
222		-	liability of such surety shall not include any sums representing interest or punitive damages
223		-	assessed against the contractor. ENROLLED ORIGINAL
224		-
225		-
226		-
	106	+	“(8) “Residential real property” means: 91
	107	+	“(A) A single-family residential dwelling or unit, including a 92
	108	+	condominium, cooperative unit, townhouse, or rowhouse; or 93
	109	+	“(B) Improved real estate that consists of two residential units or more. 94
	110	+	“Sec. 47-2853.78a. Scope of practice for construction management and general 95
	111	+	contracting. 96
	112	+	“(a) For purposes of this part, the term “practice of construction management” means 97
	113	+	scheduling, estimating and approving, coordinating, managing or directing phases of a project 98
	114	+	for the construction, demolition, alteration, or reconstruction of any commercial or residential 99
	115	+	property. 100
	116	+	“(b)(1) For purposes of this part, the term “practice of general contracting” means 101
	117	+	undertaking or offering to undertake, or submitting a bid to construct, alter, repair, add to, 102
	118	+	subtract from, improve, move, wreck, or demolish any building, excavation or other structure, 103
	119	+	project, development or improvement with respect to residential real property or commercial 104
	120	+	property. 105
	121	+	“(2) For purposes of this part, the term “practice of general contracting” shall not 106
	122	+	include construction work on electrical systems, elevators, fire protection systems, refrigeration 107
	123	+	or air conditioning systems, or any other work that requires a specific trade license issued by the 108
	124	+	Board of Industrial Trades pursuant to Subchapter I-B. 109
	125	+	“Sec. 47-2853.78b. Necessity for license; exemptions. 110
	126	+	“(a) No person may engage in the District in any activity as a construction manager, 111
	127	+	commercial contractor, or residential contractor, or submit a bid to perform work as a 112
227	128		6
228	129
229		-	“(3) The corporate surety shall notify the Board when a claim is made against a
230		-	contractor’s bond, when a claim is paid, and when the bond is cancelled. Such notification shall
231		-	include the amount of the claim and the circumstances surrounding the claim. Notification of
232		-	cancellation shall include the effective date and reason for the cancellation. The bond may be
233		-	cancelled as to future liability by the contractor’s surety upon 30 days’ notice to the Board.
234		-	“Sec. 47-2853.78f. Establishment of Residential and Commercial Contractor Guaranty
235		-	and Education Fund.
236		-	“(a) There is established a Residential and Commercial Contractor Guaranty and
237		-	Education Fund (“Fund”).
238		-	“(b)(1) On or after the effective date of the Construction Manager and General Contractor
239		-	Licensing Amendment Act of 2024, passed on 2nd reading on October 1, 2024 (Enrolled version
240		-	of Bill 25-737), every commercial residential and residential contractor licensed under this
241		-	subchapter shall, as a condition for renewing his or her license, pay, in addition to other fees
242		-	required under this subchapter, a sum to be established by the Mayor for deposit into the Fund.
243		-	“(2) Such amounts as may be appropriated to the Fund shall be deposited into the
244		-	Fund.
245		-	“(3)(A) The money deposited into the Fund but not expended in a fiscal year shall
246		-	not revert to the unassigned fund balance of the General Fund of the District of Columbia at the
247		-	end of a fiscal year, or at any other time.
248		-	“(B) Subject to authorization in an approved budget and financial plan,
249		-	any funds appropriated in the Fund shall be continually available without regard to fiscal year
250		-	limitation.
251		-	“Sec. 47-2853.78g. Applications for payments from Fund; maximum payment;
252		-	management of Fund.
253		-	“(a) Any person who obtains final judgment, including a settlement reduced to a final
254		-	judgment, in any court of competent jurisdiction in the District against any other person on the
255		-	grounds of fraud, misrepresentation, deceit, embezzlement, false pretenses, forgery, or violations
256		-	of the provisions of this subchapter, arising directly out of any transaction which occurred when
257		-	the other person was licensed under this subchapter, during the course of which the licensee
258		-	performed acts for which a license is required under this subchapter, and which transaction
259		-	occurred on or after the effective date of the Construction Manager and General Contractor
260		-	Licensing Amendment Act of 2024, passed on 2nd reading on October 1, 2024 (Enrolled version
261		-	of Bill 25-737) (“Act”); and who meets the requirements of subsection (b) of this section, may,
262		-	upon termination of all proceedings, including reviews and appeals in connection with the
263		-	judgment, file a written application, under oath, with the Mayor for an order directing payment
264		-	from the Fund of the amount of actual and direct loss in the transaction (excluding the amount of
265		-	any interest, attorney’s fees, court costs, or punitive or exemplary damages) which remains
266		-	unpaid upon the judgment. The application shall be filed no later 12 months after the date on
267		-	which the judgment became final.
268		-	“(b) A person filing an application meets the requirements of this subsection if: ENROLLED ORIGINAL
269		-
270		-
271		-
	130	+	construction manager, commercial contractor, or residential contractor, as defined in § 47-113
	131	+	2853.78, unless that person holds an applicable license issued under the provisions of this part. 114
	132	+	“(b) The following are exempt from licensure: 115
	133	+	“(1) Work done exclusively by employees of the United States government or the 116
	134	+	District of Columbia; 117
	135	+	“(2) The sale or installation of a finished product, material or article, or 118
	136	+	merchandise that is not actually fabricated into and does not become a permanent fixed part of 119
	137	+	the structure; 120
	138	+	“(3) A material supplier who renders advice concerning use of products sold and 121
	139	+	who does not provide construction or installation services; 122
	140	+	“(4) Work performed by an employer’s employees, for which the employees are 123
	141	+	paid regular wages and not a contract price, on commercial property or residential real property 124
	142	+	owned or leased by the employer which is not intended for speculative sale or lease; 125
	143	+	“(5) Work performed by a public utility, as defined in § 34–214; 126
	144	+	“(6) Work performed directly under the supervision of a licensed residential or 127
	145	+	commercial contractor when the work is performed by: 128
	146	+	“(A) A student in good standing and enrolled in a public or private 129
	147	+	institution of higher education; 130
	148	+	“(B) A student enrolled in a career or technical education program; or 131
	149	+	“(C) An apprentice; and 132
	150	+	“(7) Work personally performed on a residential real property by the owner or 133
	151	+	occupant thereof. 134
272	152		7
273	153
274		-	“(1) The person is not an employee of the licensee;
275		-	“(2) The person is not a vendor of the licensee;
276		-	“(3) The person is not another licensee;
277		-	“(4) The person is not spouse or child of the licensee;
278		-	“(5) The person is not a financial or lending institution or any person whose
279		-	business involves the construction or development of real property;
280		-	“(6) The person has made an investigation as is reasonably necessary to determine
281		-	whether the judgment debtor possesses real or personal property or other assets that are liable to
282		-	be sold or applied in satisfaction of the final judgment and has filed with the Board an affidavit
283		-	that states that the investigation has been made; and
284		-	“(7) The investigation required pursuant to paragraph (6) of this subsection has
285		-	not disclosed the existence of any real or personal property or other assets, or, if the investigation
286		-	has disclosed the existence of real or personal property or other assets (which shall be described
287		-	in the affidavit), the person has taken all action necessary for the sale or application, and the
288		-	amount so realized is insufficient to satisfy the judgment (which amount shall have been stated in
289		-	the affidavit together with the balance remaining due on the judgment after sale or application).
290		-	“(c) The maximum amount that may be paid from the Fund to satisfy in whole or in part a
291		-	final judgment against a licensee as provided for herein, including any amount paid from
292		-	recovery on a contractor’s bond pursuant to § 47-2853.78e, shall be as follows:
293		-	Amount
294		-	$10,000 ...... Judgment is final during the first year following the effective date of the Act;
295		-	$20,000 ...... Judgment is final during the second year following the effective date of the Act;
296		-	$30,000 ...... Judgment is final during the third year following the effective date of the Act;
297		-	$40,000 ...... Judgment is final during the fourth year following the effective date of the Act;
298		-	$50,000 ...... Judgment is final during the fifth year following the effective date of the Act, and
299		-	thereafter.
300		-	“(d) The aggregate of claims by judgment creditors against the Fund based upon an
301		-	unpaid final judgment arising out of the acts of the licensee in connection with a single
302		-	transaction shall be $50,000, including any amount paid from recovery on a contractor’s bond
303		-	pursuant to § 47-2853.78e, regardless of the number of claimants. If the aggregate of claims
304		-	exceeds $50,000, the Board shall pay $50,000 to the claimants in proportion to the amounts of
305		-	the claimants’ final judgments against the Fund which remain unpaid. If the Mayor has reason to
306		-	believe that there may be additional claims against the Fund arising out of the same transaction,
307		-	the Mayor may withhold payment from the Fund involving the licensee for a period of not more
308		-	than one year.
309		-	“(e) Any person who commences an action for a judgment which could be the basis for
310		-	an order of the Mayor directing payment from the Fund shall notify the Mayor in writing within
311		-	30 days after the date of the commencement of the action. Any failure to notify the Mayor as
312		-	required under this subsection shall be grounds for the Mayor to deny an application of the
313		-	person for payment from the Fund. The Mayor may waive this requirement if good cause is ENROLLED ORIGINAL
314		-
315		-
316		-
	154	+	“Sec. 47-2853.78c. Eligibility criteria for construction managers and general contractors. 135
	155	+	“(a) Notwithstanding subsection (b) of this section, an applicant for licensure shall 136
	156	+	establish to the satisfaction of the Board that the applicant: 137
	157	+	“(1) For a construction manager license: 138
	158	+	“(A) Holds one of the following licenses: 139
	159	+	“(i) Commercial contractor; 140
	160	+	“(ii) Residential contractor; 141
	161	+	“(iii) Professional engineer; or 142
	162	+	“(iv) Architect; and 143
	163	+	“(B) Has not had a license held under subparagraph (A) of this paragraph 144
	164	+	denied, suspended, or revoked within one year prior to the date on which the application is filed. 145
	165	+	“(2) For a commercial or residential contractor license: 146
	166	+	“(A) Has at least 4,000 hours or 2 years of experience performing 147
	167	+	construction work on commercial properties if he or she is applying for a commercial contractor 148
	168	+	license, or has at least 4,000 hours or 2 years of experience performing home improvement or 149
	169	+	construction work within the last 6 years if he or she applying for a residential contractor license, 150
	170	+	or has comparable experience or a combination of education and experience that the Board 151
	171	+	deems equivalent; 152
	172	+	“(B) Has passed an examination or examinations given by or under the 153
	173	+	direction of the Board, or any other examination acceptable to the Board; 154
	174	+	“(C) Is compliant with financial statement, balance sheet, or bonding 155
	175	+	requirements under § 47-2853.78d and any insurance requirements established by the Board; 156
317	176		8
318	177
319		-	shown for failure to notify. The Mayor may, in accordance with the provisions of this subchapter,
320		-	commence an investigation of the complaint and hold a hearing to determine whether any license
321		-	issued pursuant to this subchapter should be suspended or revoked.
322		-	“(f) Whenever an aggrieved person who has become a judgment creditor as provided in
323		-	this section files an application for an order directing payment from the Fund, the Mayor shall
324		-	cause a copy of the application to be served on the licensee alleged to be the judgment debtor, by
325		-	certified mail, return receipt requested, to the address of record of the licensee, and the matter
326		-	shall be set for hearing before the Board. Whenever the Mayor determines that the applicant is
327		-	entitled to payment from the Fund, the Mayor shall issue an order directing payment from the
328		-	Fund in an amount consistent with this subchapter.
329		-	“(g) If the Mayor issues an order directing payment from the Fund of any amount
330		-	towards satisfaction of a judgment against a licensed residential contractor, commercial
331		-	contractor, or construction manager, the license of the person shall be automatically suspended
332		-	upon the issuance of the order. No residential contractor, commercial contractor, or construction
333		-	manager shall be eligible to have his or her license restored until he or she has repaid in full the
334		-	amount ordered paid from the Fund, plus interest at an annual rate established by the Mayor from
335		-	the date of payment of the amount from the Fund, and has satisfied all rules governing licensure
336		-	as set forth in this subchapter.
337		-	“(h) Whenever amounts deposited in the Fund are insufficient to satisfy any duly
338		-	authorized claim or portion thereof, the Mayor shall, when sufficient money has been deposited
339		-	or portions thereof, satisfy the unpaid claims in the order that the applications relating thereto
340		-	were originally filed with the Mayor, including accumulated interest at an annual rate established
341		-	by the Mayor for a period not to exceed one year in duration.
342		-	“(i) All sums paid pursuant to this section shall be deposited with the D.C. Treasurer and
343		-	shall be credited to the Fund. Any interest earned from any deposits and investments of the Fund
344		-	also shall be credited to the Fund. The interest to be credited to the Fund may be determined,
345		-	consistent with the financial management procedures of the District and may be revised from
346		-	time to time, as a pro-rata share of the interest earned on pooled cash, deposits, and investments.
347		-	“(j) The Mayor shall, by rule, establish minimum and maximum balances for the Fund.
348		-	“(k) Should the Office of the Chief Financial Officer project that the year-end Fund
349		-	balance for any fiscal year will be less than the minimum balance established pursuant
350		-	subsection (j) of this section, the Mayor shall assess each licensee an amount, not to exceed $50
351		-	during any license year, within 30 calendar days, that is sufficient, when combined with similar
352		-	assessments of other licensees, to bring the balance of the Fund up to the minimum established.
353		-	Whenever the amount deposited in the Fund is more than the maximum balance established, the
354		-	Mayor shall waive contributions to the Fund required by this subchapter.
355		-	“(l) Notice of an assessment required pursuant to subsection (k) of this section shall be
356		-	sent, by certified mail, to each licensee at his or her address of record. The Board may waive the
357		-	certified mail requirement to licensees only when the Board is doing a mass mailing, the cost of
358		-	which makes the application of such fee an undue financial burden on the Board and may, in ENROLLED ORIGINAL
359		-
360		-
361		-
	178	+	“(D) Has not had a license issued pursuant to this part denied, suspended, 157
	179	+	or revoked within one year prior to the date on which the application is filed; and 158
	180	+	“(E) Provides such additional evidence as the Board determines is 159
	181	+	necessary. 160
	182	+	“(b) A construction manager, residential contractor, or commercial contractor with an 161
	183	+	active basic business license issued prior to the effective date of this act is deemed to be eligible 162
	184	+	for licensure until the expiration of his or her basic business license and shall satisfy the 163
	185	+	eligibility requirements for licensure at the renewal of his or her business license. 164
	186	+	“Sec. 47-2853.78d. Financial statements or balance sheets; surety bonds in lieu of 165
	187	+	providing financial statements or balance sheets. 166
	188	+	“(a) As proof of financial responsibility, an applicant for a commercial or residential 167
	189	+	contractor license shall demonstrate compliance with a minimum net worth requirement fixed by 168
	190	+	the Board by providing either: 169
	191	+	“(1) A financial statement on a form prescribed by the Board, subject to additional 170
	192	+	verification if the Board determines that sufficient questions or ambiguities exist in the 171
	193	+	applicant’s presentation of financial information; or 172
	194	+	“(2) A balance sheet reviewed by a certified public accountant licensed by the 173
	195	+	Board of Accountancy; 174
	196	+	“(b)(1) Notwithstanding subsection (a) of this section, an applicant for a commercial or 175
	197	+	residential contractor license may demonstrate financial responsibility by electing to obtain and 176
	198	+	maintain a bond: 177
	199	+	“(A) In the amount of $25,000 for a residential contractor; or 178
362	200		9
363	201
364		-	such circumstances, send notice of the assessment by regular mail to each licensee at his or her
365		-	address of record. The Board shall also post notice of the assessment in at least 2 trade
366		-	publications distributed within the metropolitan area and in a local newspaper in the real estate
367		-	section. Payment of the assessment shall be made within 30 calendar days after the receipt by the
368		-	licensee of the notice.
369		-	“(m) A failure by any licensee to pay an assessment required pursuant to subsection (k) of
370		-	this section within 30 days after the licensee has received notice of the assessment shall result in
371		-	the automatic suspension of the license of the licensee. The Board shall send a notice of the
372		-	suspension, by certified mail, to the address of record of the licensee within 5 days after the
373		-	suspension. The license shall be restored only upon the actual receipt by the Mayor of the
374		-	delinquent assessment, plus any interest and penalties as the Mayor may prescribe by rule.
375		-	“(n) The Board may expend a sum not to exceed 20% of the amounts deposited in the
376		-	Fund, on October 1 of each year, for the establishment and maintenance of educational programs
377		-	for improving the competency of licensees and applicants for licensure so as to further protect
378		-	the public interest, and for conferences, workshops, and educational programs for real estate
379		-	license officials. The cost of administering the Fund shall be paid out of the Fund.
380		-	“(o) When the Mayor has ordered a sum from the Fund to be paid to a judgment creditor,
381		-	the Mayor shall be subrogated to all of the rights of the judgment creditor up to the amount paid
382		-	and the judgment creditor shall assign to the Mayor all rights, title, and interest in the judgment
383		-	up to the amount paid from the Fund. Any amount and interest so recovered by the Mayor or the
384		-	judgment creditor on the judgment up to the amount paid shall be deposited in the Fund.
385		-	“Sec. 47-2853.78h. Responsibility for contracting with persons lacking proper license.
386		-	“Any construction manager or contractor that directly employs or otherwise contracts
387		-	with a person who is not licensed by the Board for work requiring a license under this part shall
388		-	be solely responsible for any monetary penalty or other sanction resulting from the act of
389		-	employing or contracting with a person who lacks a proper license based upon such person’s
390		-	failure to obtain or maintain the required license.
391		-	“Sec. 47-2853.78i. Certain representations prohibited.
392		-	“Unless licensed under this subchapter, no person shall assume or use the titles or
393		-	designations “construction manager,” “commercial contractor,” or “residential contractor,” or
394		-	any other title, designation, words, letters, abbreviations, sign, card, or device, tending to indicate
395		-	that the person is licensed as a construction manager, commercial contractor, or residential
396		-	contractor in the District.”.
397		-
398		-	Sec. 3. Applicability.
399		-	(a) This act shall apply upon the later of January 1, 2026, or 120 days after the date of
400		-	inclusion of its fiscal effect in an approved budget and financial plan.
401		-	(b) The Chief Financial Officer shall certify the date of the inclusion of the fiscal effect in
402		-	an approved budget and financial plan and provide notice to the Budget Director of the Council
403		-	of the certification. ENROLLED ORIGINAL
404		-
405		-
406		-
	202	+	“(B) In an amount fixed by the Board, for a commercial contractor. 179
	203	+	“(2) Proof of current bond shall be submitted to the Board and shall come from a 180
	204	+	corporate surety certified by the U.S. Department of Treasury to do business pursuant to 31 181
	205	+	U.S.C. § 9305. 182
	206	+	“Sec. 47-2853.78e. Recovery on bond. 183
	207	+	“(a)(1) If a commercial or residential contractor who elected to hold a continuous bond 184
	208	+	pursuant to § 47-2853.78d(b) fails to satisfy a judgment awarded by a court of competent 185
	209	+	jurisdiction in the District for improper or dishonest conduct, the judgment creditor shall have a 186
	210	+	claim against the surety bond for such damages. In order to recover the amount of any unpaid 187
	211	+	judgment, up to but not exceeding the maximum liability fixed by the Board, the judgment 188
	212	+	creditor shall meet the eligibility requirements of § 47-2853.78g(b)(1) through (5) and shall bring 189
	213	+	suit directly on the surety bond no later than 12 months after the judgment becomes final. 190
	214	+	“(2) The liability of such surety shall be limited to actual monetary loss, court 191
	215	+	costs, and attorney fees assessed against the contractor as part of the underlying judgment. The 192
	216	+	liability of such surety shall not include any sums representing interest or punitive damages 193
	217	+	assessed against the contractor. 194
	218	+	“(3) The corporate surety shall notify the Board when a claim is made against a 195
	219	+	contractor’s bond, when a claim is paid, and when the bond is cancelled. Such notification shall 196
	220	+	include the amount of the claim and the circumstances surrounding the claim. Notification of 197
	221	+	cancellation shall include the effective date and reason for the cancellation. The bond may be 198
	222	+	cancelled as to future liability by the contractor’s surety upon 30 days’ notice to the Board. 199
407	223		10
408	224
409		-	(c)(1) The Budget Director shall cause the notice of the certification to be published in
410		-	the District of Columbia Register.
411		-	(2) The date of publication of the notice of the certification shall not affect the
412		-	applicability of this act.
	225	+	“Sec. 47-2853.78f. Establishment of Residential and Commercial Contractor Guaranty 200
	226	+	and Education Fund. 201
	227	+	“(a) There is established a Residential and Commercial Contractor Guaranty and 202
	228	+	Education Fund (“Fund”). 203
	229	+	“(b)(1) On or after the effective date of the Construction Manager and General Contractor 204
	230	+	Licensing Amendment Act of 2024, as approved by the Committee of the Whole on September 205
	231	+	17, 2024 (Committee Print of Bill 25-737), every commercial residential and residential 206
	232	+	contractor licensed under this subchapter shall, as a condition for renewing his or her license, 207
	233	+	pay, in addition to other fees required under this subchapter, a sum to be established by the 208
	234	+	Mayor for deposit into the Fund. 209
	235	+	“(2) Such amounts as may be appropriated to the Fund shall be deposited into the 210
	236	+	Fund. 211
	237	+	“(3)(A) The money deposited into the Fund but not expended in a fiscal year shall 212
	238	+	not revert to the unassigned fund balance of the General Fund of the District of Columbia at the 213
	239	+	end of a fiscal year, or at any other time. 214
	240	+	“(B) Subject to authorization in an approved budget and financial plan, 215
	241	+	any funds appropriated in the Fund shall be continually available without regard to fiscal year 216
	242	+	limitation. 217
	243	+	“Sec. 47-2853.78g. Applications for payments from Fund; maximum payment; 218
	244	+	management of Fund. 219
	245	+	“(a) Any person who obtains final judgment, including a settlement reduced to a final 220
	246	+	judgment, in any court of competent jurisdiction in the District against any other person on the 221
	247	+	11
413	248
414		-	Sec. 4. Fiscal impact statement.
415		-	The Council adopts the fiscal impact statement in the committee report as the fiscal
416		-	impact statement required by section 4a of the General Legislative Procedures Act of 1975,
417		-	approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a).
	249	+	grounds of fraud, misrepresentation, deceit, embezzlement, false pretenses, forgery, or violations 222
	250	+	of the provisions of this subchapter, arising directly out of any transaction which occurred when 223
	251	+	the other person was licensed under this subchapter, during the course of which the licensee 224
	252	+	performed acts for which a license is required under this subchapter, and which transaction 225
	253	+	occurred on or after the effective date of the Construction Manager and General Contractor 226
	254	+	Licensing Amendment Act of 2024, as approved by the Committee of the Whole on September 227
	255	+	17, 2024 (Committee Print of Bill 25-737) (“Act”); and who meets the requirements of 228
	256	+	subsection (b) of this section, may, upon termination of all proceedings, including reviews and 229
	257	+	appeals in connection with the judgment, file a written application, under oath, with the Mayor 230
	258	+	for an order directing payment from the Fund of the amount of actual and direct loss in the 231
	259	+	transaction (excluding the amount of any interest, attorney’s fees, court costs, or punitive or 232
	260	+	exemplary damages) which remains unpaid upon the judgment. The application shall be filed no 233
	261	+	later 12 months after the date on which the judgment became final. 234
	262	+	“(b) A person filing an application meets the requirements of this subsection if: 235
	263	+	“(1) The person is not an employee of the licensee; 236
	264	+	“(2) The person is not a vendor of the licensee; 237
	265	+	“(3) The person is not another licensee; 238
	266	+	“(4) The person is not spouse or child of the licensee; 239
	267	+	“(5) The person is not a financial or lending institution or any person whose 240
	268	+	business involves the construction or development of real property; 241
	269	+	“(6) The person has made an investigation as is reasonably necessary to determine 242
	270	+	whether the judgment debtor possesses real or personal property or other assets that are liable to 243
	271	+	12
418	272
419		-	Sec. 5. Effective date.
420		-	This act shall take effect following approval by the Mayor (or in the event of veto by the
421		-	Mayor, action by the Council to override the veto) and a 30-day period of congressional review
422		-	as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December
423		-	24, 1973, (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)).
	273	+	be sold or applied in satisfaction of the final judgment and has filed with the Board an affidavit 244
	274	+	that states that the investigation has been made; and 245
	275	+	“(7) The investigation required pursuant to paragraph (6) of this subsection has 246
	276	+	not disclosed the existence of any real or personal property or other assets, or, if the investigation 247
	277	+	has disclosed the existence of real or personal property or other assets (which shall be described 248
	278	+	in the affidavit), the person has taken all action necessary for the sale or application, and the 249
	279	+	amount so realized is insufficient to satisfy the judgment (which amount shall have been stated in 250
	280	+	the affidavit together with the balance remaining due on the judgment after sale or application). 251
	281	+	“(c) The maximum amount that may be paid from the Fund to satisfy in whole or in part a 252
	282	+	final judgment against a licensee as provided for herein, including any amount paid from 253
	283	+	recovery on a contractors bond pursuant to § 47-2853.78e, shall be as follows: 254
	284	+	Amount 255
	285	+	$10,000 ...... Judgment is final during the first year following the effective date of the Act; 256
	286	+	$20,000 ...... Judgment is final during the second year following the effective date of the Act; 257
	287	+	$30,000 ...... Judgment is final during the third year following the effective date of the Act; 258
	288	+	$40,000 ...... Judgment is final during the fourth year following the effective date of the Act; 259
	289	+	$50,000 ...... Judgment is final during the fifth year following the effective date of the Act, and 260
	290	+	thereafter. 261
	291	+	“(d) The aggregate of claims by judgment creditors against the Fund based upon an 262
	292	+	unpaid final judgment arising out of the acts of the licensee in connection with a single 263
	293	+	transaction shall be $50,000, including any amount paid from recovery on a contractors bond 264
	294	+	pursuant to § 47-2853.78e, regardless of the number of claimants. If the aggregate of claims 265
	295	+	13
424	296
	297	+	exceeds $50,000, the Board shall pay $50,000 to the claimants in proportion to the amounts of 266
	298	+	the claimants’ final judgments against the Fund which remain unpaid. If the Mayor has reason to 267
	299	+	believe that there may be additional claims against the Fund arising out of the same transaction, 268
	300	+	the Mayor may withhold payment from the Fund involving the licensee for a period of not more 269
	301	+	than one year. 270
	302	+	“(e) Any person who commences an action for a judgment which could be the basis for 271
	303	+	an order of the Mayor directing payment from the Fund shall notify the Mayor in writing within 272
	304	+	30 days after the date of the commencement of the action. Any failure to notify the Mayor as 273
	305	+	required under this subsection shall be grounds for the Mayor to deny an application of the 274
	306	+	person for payment from the Fund. The Mayor may waive this requirement if good cause is 275
	307	+	shown for failure to notify. The Mayor may, in accordance with the provisions of this subchapter, 276
	308	+	commence an investigation of the complaint and hold a hearing to determine whether any license 277
	309	+	issued pursuant to this subchapter should be suspended or revoked. 278
	310	+	“(f) Whenever an aggrieved person who has become a judgment creditor as provided in 279
	311	+	this section files an application for an order directing payment from the Fund, the Mayor shall 280
	312	+	cause a copy of the application to be served on the licensee alleged to be the judgment debtor, by 281
	313	+	certified mail, return receipt requested, to the address of record of the licensee, and the matter 282
	314	+	shall be set for hearing before the Board. Whenever the Mayor determines that the applicant is 283
	315	+	entitled to payment from the Fund, the Mayor shall issue an order directing payment from the 284
	316	+	Fund in an amount consistent with this subchapter. 285
	317	+	“(g) If the Mayor issues an order directing payment from the Fund of any amount 286
	318	+	towards satisfaction of a judgment against a licensed residential contractor, commercial 287
	319	+	14
425	320
	321	+	contractor, or construction manager, the license of the person shall be automatically suspended 288
	322	+	upon the issuance of the order. No residential contractor, commercial contractor, or construction 289
	323	+	manager shall be eligible to have his or her license restored until he or she has repaid in full the 290
	324	+	amount ordered paid from the Fund, plus interest at an annual rate established by the Mayor from 291
	325	+	the date of payment of the amount from the Fund, and has satisfied all rules governing licensure 292
	326	+	as set forth in this subchapter. 293
	327	+	“(h) Whenever amounts deposited in the Fund are insufficient to satisfy any duly 294
	328	+	authorized claim or portion thereof, the Mayor shall, when sufficient money has been deposited 295
	329	+	or portions thereof, satisfy the unpaid claims in the order that the applications relating thereto 296
	330	+	were originally filed with the Mayor, including accumulated interest at an annual rate established 297
	331	+	by the Mayor for a period not to exceed one year in duration. 298
	332	+	“(i) All sums paid pursuant to this section shall be deposited with the D.C. Treasurer and 299
	333	+	shall be credited to the Fund. Any interest earned from any deposits and investments of the Fund 300
	334	+	also shall be credited to the Fund. The interest to be credited to the Fund may be determined, 301
	335	+	consistent with the financial management procedures of the District and may be revised from 302
	336	+	time to time, as a pro-rata share of the interest earned on pooled cash, deposits, and investments. 303
	337	+	“(j) The Mayor shall, by rule, establish minimum and maximum balances for the Fund. 304
	338	+	“(k) Should the Office of the Chief Financial Officer project that the year-end Fund 305
	339	+	balance for any fiscal year will be less than the minimum balance established pursuant 306
	340	+	subsection (j) of this section, the Mayor shall assess each licensee an amount, not to exceed $50 307
	341	+	during any license year, within 30 calendar days, which is sufficient, when combined with 308
	342	+	similar assessments of other licensees, to bring the balance of the Fund up to the minimum 309
	343	+	15
426	344
	345	+	established. Whenever the amount deposited in the Fund is more than the maximum balance 310
	346	+	established, the Mayor shall waive contributions to the Fund required by this subchapter. 311
	347	+	“(l) Notice of an assessment required pursuant to subsection (k) of this section shall be 312
	348	+	sent, by certified mail, to each licensee at his or her address of record. The Board may waive the 313
	349	+	certified mail requirement to licensees only when the Board is doing a mass mailing, the cost of 314
	350	+	which makes the application of such fee an undue financial burden on the Board and may, in 315
	351	+	such circumstances, send notice of the assessment by regular mail to each licensee at his or her 316
	352	+	address of record. The Board shall also post notice of the assessment in at least 2 trade 317
	353	+	publications distributed within the metropolitan area and in a local newspaper in the real estate 318
	354	+	section. Payment of the assessment shall be made within 30 calendar days after the receipt by the 319
	355	+	licensee of the notice. 320
	356	+	“(m) A failure by any licensee to pay an assessment required pursuant to subsection (k) of 321
	357	+	this section within 30 days after the licensee has received notice of the assessment shall result in 322
	358	+	the automatic suspension of the license of the licensee. The Board shall send a notice of the 323
	359	+	suspension, by certified mail, to the address of record of the licensee within 5 days after the 324
	360	+	suspension. The license shall be restored only upon the actual receipt by the Mayor of the 325
	361	+	delinquent assessment, plus any interest and penalties as the Mayor may prescribe by rule. 326
	362	+	“(n) The Board may expend a sum not to exceed 20% of the amounts deposited in the 327
	363	+	Fund, on October 1 of each year, for the establishment and maintenance of educational programs 328
	364	+	for improving the competency of licensees and applicants for licensure so as to further protect 329
	365	+	the public interest, and for conferences, workshops, and educational programs for real estate 330
	366	+	license officials. The cost of administering the Fund shall be paid out of the Fund. 331
	367	+	16
427	368
428		-	______________________________
429		-	Chairman
430		-	Council of the District of Columbia
	369	+	“(o) When the Mayor has ordered a sum from the Fund to be paid to a judgment creditor, 332
	370	+	the Mayor shall be subrogated to all of the rights of the judgment creditor up to the amount paid 333
	371	+	and the judgment creditor shall assign to the Mayor all rights, title, and interest in the judgment 334
	372	+	up to the amount paid from the Fund. Any amount and interest so recovered by the Mayor or the 335
	373	+	judgment creditor on the judgment up to the amount paid shall be deposited in the Fund. 336
	374	+	“Sec. 47-2853.78h. Responsibility for contracting with persons lacking proper license. 337
	375	+	“Any construction manager or contractor that directly employs or otherwise contracts 338
	376	+	with a person who is not licensed by the Board for work requiring a license under this part shall 339
	377	+	be solely responsible for any monetary penalty or other sanction resulting from the act of 340
	378	+	employing or contracting with a person who lacks a proper license based upon such person’s 341
	379	+	failure to obtain or maintain the required license. 342
	380	+	“Sec. 47-2853.78i. Certain representations prohibited. 343
	381	+	“Unless licensed under this subchapter, no person shall assume or use the titles or 344
	382	+	designations “construction manager,” “commercial contractor,” or “residential contractor,” or 345
	383	+	any other title, designation, words, letters, abbreviations, sign, card, or device, tending to indicate 346
	384	+	that the person is licensed as a construction manager, commercial contractor, or residential 347
	385	+	contractor in the District.”. 348
	386	+	Sec. 3. Applicability. 349
	387	+	(a) This act shall apply upon the later of January 1, 2026 or 120 days after the date of 350
	388	+	inclusion of its fiscal effect in an approved budget and financial plan. 351
	389	+	(b) The Chief Financial Officer shall certify the date of the inclusion of the fiscal effect in 352
	390	+	an approved budget and financial plan and provide notice to the Budget Director of the Council 353
	391	+	17
431	392
432		-
433		-
434		-
435		-
436		-	_________________________________
437		-	Mayor
438		-	District of Columbia
439		-
	393	+	of the certification. 354
	394	+	(c)(1) The Budget Director shall cause the notice of the certification to be published in 355
	395	+	the District of Columbia Register. 356
	396	+	(2) The date of publication of the notice of the certification shall not affect the 357
	397	+	applicability of this act. 358
	398	+	Sec. 4. Fiscal impact statement. 359
	399	+	The Council adopts the fiscal impact statement in the committee report as the fiscal 360
	400	+	impact statement required by section 4a of the General Legislative Procedures Act of 1975, 361
	401	+	approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 362
	402	+	Sec. 5. Effective date. 363
	403	+	This act shall take effect following approval by the Mayor (or in the event of veto by the 364
	404	+	Mayor, action by the Council to override the veto), a 30-day period of congressional review as 365
	405	+	provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 366
	406	+	24, 1973, (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 367
	407	+	Columbia Register. 368