| 1 | 1 | | 23 LC 36 5598 |
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| 2 | 2 | | H. B. 832 |
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| 3 | 3 | | - 1 - |
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| 4 | 4 | | House Bill 832 |
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| 5 | 5 | | By: Representative Powell of the 33 |
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| 6 | 6 | | rd |
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| 7 | 7 | | |
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| 8 | 8 | | A BILL TO BE ENTITLED |
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| 9 | 9 | | AN ACT |
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| 10 | 10 | | To amend Chapter 41 of Title 43 of the Official Code of Georgia Annotated, relating to |
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| 11 | 11 | | 1 |
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| 12 | 12 | | residential and general contractors, so as to change certain provisions as to eligibility for2 |
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| 13 | 13 | | licensure without examination; to eliminate certain exceptions; to change a definition; to3 |
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| 14 | 14 | | change cross-references to eliminated provisions; to provide for related matters; to repeal4 |
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| 15 | 15 | | conflicting laws; and for other purposes.5 |
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| 16 | 16 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 |
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| 17 | 17 | | SECTION 1.7 |
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| 18 | 18 | | Chapter 41 of Title 43 of the Official Code of Georgia Annotated, relating to residential and8 |
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| 19 | 19 | | general contractors, is amended by revising paragraph (7) of Code Section 43-41-2, relating9 |
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| 20 | 20 | | to definitions, as follows:10 |
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| 21 | 21 | | "(7) 'Qualifying agent' means a person who possesses the requisite skill, knowledge, and11 |
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| 22 | 22 | | experience and has the responsibility to supervise, direct, manage, and control all of the12 |
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| 23 | 23 | | contracting activities within the State of Georgia of a contractor doing business in the13 |
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| 24 | 24 | | form of a business organization, with which he or she is affiliated by employment or14 |
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| 25 | 25 | | ownership; who has the responsibility to supervise, direct, manage, and control15 |
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| 26 | 26 | | construction activities on any project for which he or she has obtained the building permit16 23 LC 36 5598 |
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| 27 | 27 | | H. B. 832 |
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| 28 | 28 | | - 2 - |
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| 29 | 29 | | pursuant to Code Section 43-41-14; and whose technical and personal qualifications have |
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| 30 | 30 | | 17 |
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| 31 | 31 | | been determined by investigation and examination as provided in this chapter, except as |
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| 32 | 32 | | 18 |
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| 33 | 33 | | exempted under Code Section 43-41-8, as attested by the division."19 |
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| 34 | 34 | | SECTION 2.20 |
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| 35 | 35 | | Said chapter is further amended by revising subsections (a) and (f) of Code Section 43-41-6,21 |
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| 36 | 36 | | relating to application and appropriate fee, eligibility for licensure as residential-basic22 |
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| 37 | 37 | | contractor, residential-light commercial contractor, general contractor, examination of23 |
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| 38 | 38 | | qualified applicants, renewal of licenses, and continuing education requirements, as follows:24 |
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| 39 | 39 | | "(a) Anyone seeking to be licensed as a residential contractor or as a general contractor in25 |
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| 40 | 40 | | this state shall file an application on a form provided by the residential contractor or26 |
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| 41 | 41 | | general contractor division, respectively, accompanied by an application fee as provided27 |
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| 42 | 42 | | by the board. Such an application may be submitted either by:28 |
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| 43 | 43 | | (1) An individual person seeking issuance of a license in his or her own name for29 |
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| 44 | 44 | | purposes of engaging in the profession of residential or general contracting in his or her30 |
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| 45 | 45 | | own name or doing business as an individual in a trade name as a sole proprietorship; or31 |
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| 46 | 46 | | (2) An individual person affiliated by ownership or employment with and acting as a32 |
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| 47 | 47 | | qualifying agent for a business organization seeking to engage in the profession of33 |
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| 48 | 48 | | residential or general contracting in the name of the business organization in accordance34 |
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| 49 | 49 | | with and pursuant to Code Section 43-41-9.35 |
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| 50 | 50 | | Additionally, all applicants must submit to and successfully pass an examination prepared36 |
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| 51 | 51 | | by, prepared for, or approved by the appropriate division, except where an applicant is37 |
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| 52 | 52 | | otherwise qualified for licensure and has satisfied the appropriate division requirements and38 |
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| 53 | 53 | | regulations for licensure pursuant to Code Section 43-41-8 exempting such applicant from39 |
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| 54 | 54 | | the examination requirement or where the applicant is an individual acting as a qualifying40 |
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| 55 | 55 | | agent for a business organization and has previously obtained and maintained continuously41 |
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| 56 | 56 | | a license issued by the appropriate division, either as an individual doing business in his42 23 LC 36 5598 |
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| 57 | 57 | | H. B. 832 |
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| 58 | 58 | | - 3 - |
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| 59 | 59 | | or her own name or doing business as an individual in a trade name as a sole proprietor or |
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| 60 | 60 | | 43 |
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| 61 | 61 | | as a qualifying agent for another business organization."44 |
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| 62 | 62 | | "(f)(1) The residential contractor division and the general contractor division shall each45 |
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| 63 | 63 | | conduct or cause to be conducted an examination of all qualified applicants, except those |
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| 64 | 64 | | 46 |
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| 65 | 65 | | exempted from the examination requirement pursuant to Code Section 43-41-8.47 |
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| 66 | 66 | | (2) The residential contractor division shall conduct or cause to be conducted separate48 |
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| 67 | 67 | | examinations for applicants for residential-basic and residential-light commercial licenses49 |
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| 68 | 68 | | for the purpose of determining a particular applicant's ability to make a practical50 |
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| 69 | 69 | | application of his or her knowledge of the profession of residential contracting in the51 |
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| 70 | 70 | | particular subcategory for which a license is sought; the applicant's qualifications in52 |
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| 71 | 71 | | reading plans and specifications; his or her knowledge of building codes, estimating53 |
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| 72 | 72 | | costs, construction, ethics, contracting, and other similar matters pertaining to such54 |
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| 73 | 73 | | residential contracting business; his or her knowledge as to the responsibilities of a55 |
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| 74 | 74 | | residential contractor to the public and to owners, subcontractors, and suppliers; and his56 |
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| 75 | 75 | | or her knowledge of the requirements of the laws of this state relating to residential-basic57 |
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| 76 | 76 | | and residential light-commercial residential-light commercial contractors, construction,58 |
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| 77 | 77 | | workers' compensation, insurance, and liens.59 |
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| 78 | 78 | | (3) The general contractor division shall conduct or cause to be conducted an60 |
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| 79 | 79 | | examination to ascertain the particular applicant's ability to make a practical application61 |
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| 80 | 80 | | of his or her knowledge of the profession of commercial general contracting; the62 |
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| 81 | 81 | | applicant's qualifications in reading plans and specifications; his or her knowledge of63 |
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| 82 | 82 | | building codes, estimating costs, construction, ethics, contracting, and other similar64 |
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| 83 | 83 | | matters pertaining to the general contracting business; his or her knowledge as to the65 |
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| 84 | 84 | | responsibilities of a general contractor to the public and to owners, subcontractors, and66 |
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| 85 | 85 | | suppliers; and his or her knowledge of the requirements of the laws of this state relating67 |
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| 86 | 86 | | to general contractors, construction, workers' compensation, insurance, surety bonding,68 |
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| 87 | 87 | | and liens.69 23 LC 36 5598 |
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| 88 | 88 | | H. B. 832 |
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| 89 | 89 | | - 4 - |
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| 90 | 90 | | (4) If the results of the applicant's examination are satisfactory to the appropriate |
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| 91 | 91 | | 70 |
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| 92 | 92 | | division, or he or she is exempted from the examination requirement under Code Section |
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| 93 | 93 | | 71 |
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| 94 | 94 | | 43-41-8, and if he or she and any affiliated business organization has met the other72 |
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| 95 | 95 | | qualifications and requirements set forth in this Code section, then the appropriate73 |
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| 96 | 96 | | division shall issue to the applicant a license to engage in business as a residential or74 |
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| 97 | 97 | | general contractor in this state, as provided in such license, in his or her own name as a75 |
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| 98 | 98 | | sole proprietor or as a qualifying agent for the affiliated business organization and in the76 |
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| 99 | 99 | | name of such business organization, pursuant to and in accordance with the requirements77 |
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| 100 | 100 | | set forth in Code Section 43-41-9. A residential contracting license shall indicate for78 |
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| 101 | 101 | | which of the two subcategories, residential-basic or residential-light commercial, the79 |
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| 102 | 102 | | licensee is qualified."80 |
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| 103 | 103 | | SECTION 3.81 |
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| 104 | 104 | | Said chapter is further amended by revising Code Section 43-41-8, relating to eligibility for82 |
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| 105 | 105 | | licensure without examination, reciprocity, and burden upon applicant, as follows:83 |
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| 106 | 106 | | "43-41-8.84 |
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| 107 | 107 | | (a) Notwithstanding any other provision of this chapter to the contrary, the following85 |
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| 108 | 108 | | persons desiring to qualify for a residential contractor license or a general contractor86 |
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| 109 | 109 | | license under the provisions of this chapter, either individually or as a qualifying agent,87 |
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| 110 | 110 | | shall be eligible for issuance of such a license by the appropriate division without88 |
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| 111 | 111 | | examination, provided that such person submits a proper application and proofs, pays or89 |
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| 112 | 112 | | has paid the required fees, otherwise meets the requirements of Code Section 43-41-6 for90 |
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| 113 | 113 | | licensure, and is not otherwise in violation of this chapter:91 |
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| 114 | 114 | | (1) Any person who holds a current and valid license to engage in the comparable92 |
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| 115 | 115 | | category of residential or general contracting issued to him or her by any governing93 |
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| 116 | 116 | | authority of any political subdivision of this state which requires passing an examination94 |
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| 117 | 117 | | which is substantially similar to the state examination for residential or general95 23 LC 36 5598 |
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| 118 | 118 | | H. B. 832 |
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| 119 | 119 | | - 5 - |
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| 120 | 120 | | contractors, provided that such person is a Georgia resident and citizen, if an individual96 |
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| 121 | 121 | | applying in his or her own behalf, or is seeking licensure as a qualifying agent for a97 |
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| 122 | 122 | | business organization incorporated in Georgia or otherwise authorized and certified to98 |
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| 123 | 123 | | transact business in Georgia with a regular office and place of business in Georgia99 |
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| 124 | 124 | | currently and having had such office and place of business continuously for the five years100 |
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| 125 | 125 | | immediately preceding such application; provided, further, that the examination results101 |
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| 126 | 126 | | are made available to the appropriate division. Such application and request for102 |
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| 127 | 127 | | exemption must be submitted within the time limits set forth in subsection (a) of Code103 |
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| 128 | 128 | | Section 43-41-17;104 |
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| 129 | 129 | | (2) Any person who has successfully and efficiently engaged in the comparable category105 |
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| 130 | 130 | | of residential or general contracting in this state as provided in this Code section;106 |
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| 131 | 131 | | provided, however, that such person shall be either a resident and citizen of the State of107 |
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| 132 | 132 | | Georgia or, if applying as a qualifying agent for a business organization, such business108 |
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| 133 | 133 | | organization shall be either incorporated in Georgia or is a business organization109 |
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| 134 | 134 | | otherwise authorized and certified to transact business in Georgia with a regular office110 |
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| 135 | 135 | | and place of business in Georgia currently and having had such office and place of111 |
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| 136 | 136 | | business continuously for the five years immediately preceding such application;112 |
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| 137 | 137 | | provided, further, that such application and request for exemption is submitted within the113 |
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| 138 | 138 | | time limits set forth in subsection (a) of Code Section 43-41-17. To prove that he or she114 |
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| 139 | 139 | | has successfully engaged in residential-basic or residential-light commercial projects, the115 |
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| 140 | 140 | | person shall be required to give evidence of three successful projects located in Georgia116 |
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| 141 | 141 | | which were successfully completed over the period of five years immediately prior to the117 |
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| 142 | 142 | | time of application; evidence of ten successfully completed residential-basic or118 |
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| 143 | 143 | | residential-light commercial projects located in Georgia over the period of ten years119 |
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| 144 | 144 | | immediately prior to the time of application; or evidence that he or she has participated120 |
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| 145 | 145 | | in or been engaged in residential-basic or residential-light commercial construction in a121 |
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| 146 | 146 | | supervisory or management capacity for seven of the ten years immediately prior to the122 23 LC 36 5598 |
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| 147 | 147 | | H. B. 832 |
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| 148 | 148 | | - 6 - |
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| 149 | 149 | | time of application. To prove that he or she has successfully engaged in commercial123 |
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| 150 | 150 | | general contracting, the person submitting the application shall be required to give124 |
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| 151 | 151 | | evidence of five successful general contracting projects located in Georgia which were125 |
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| 152 | 152 | | successfully completed over the period of five years immediately prior to the time of126 |
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| 153 | 153 | | application or evidence of ten successful general contracting projects located in Georgia127 |
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| 154 | 154 | | which were successfully completed over the period of ten years immediately prior to the128 |
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| 155 | 155 | | time of application, such projects having been performed either by such person acting as129 |
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| 156 | 156 | | an individual or by a business organization in which such individual person was affiliated130 |
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| 157 | 157 | | by employment or ownership and over which such person had general oversight and131 |
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| 158 | 158 | | management responsibilities;132 |
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| 159 | 159 | | (3)(1) Any person who holds a current and valid license to practice a comparable133 |
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| 160 | 160 | | category of residential or general contracting issued by another state or territory of the134 |
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| 161 | 161 | | United States, where either such state or territory has entered into a reciprocal agreement135 |
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| 162 | 162 | | with the board and divisions for the recognition of contractor licenses issued in that state136 |
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| 163 | 163 | | or territory, or such application is pursuant to and in accordance with the regulations and137 |
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| 164 | 164 | | requirements for reciprocity promulgated by the divisions in accordance with subsection138 |
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| 165 | 165 | | (b) of Code Section 43-41-5. Additionally, such application shall meet the following139 |
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| 166 | 166 | | requirements:140 |
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| 167 | 167 | | (A) The criteria for issuance of such license or certification by such other state or141 |
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| 168 | 168 | | territory, including the requirement to successfully complete an examination, were142 |
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| 169 | 169 | | substantially equivalent to Georgia's current license criteria;143 |
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| 170 | 170 | | (B) The application requirements and application form submitted to the other state or144 |
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| 171 | 171 | | territory upon which such license was issued are available for review by the appropriate145 |
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| 172 | 172 | | division and the examination results are made available to the appropriate division; and146 |
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| 173 | 173 | | (C) The applicant shall demonstrate that he or she meets the qualifications,147 |
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| 174 | 174 | | requirements, and criteria set forth in subsections (a), (b), (c), and (d) of Code Section148 |
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| 175 | 175 | | 43-41-6; and149 23 LC 36 5598 |
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| 176 | 176 | | H. B. 832 |
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| 177 | 177 | | - 7 - |
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| 178 | 178 | | (D) The applicant is otherwise in compliance with all requirements of this state for150 |
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| 179 | 179 | | transaction of such business within this state; provided, however, that such application151 |
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| 180 | 180 | | and request for exemption shall be submitted in accordance with subsection (a) of Code152 |
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| 181 | 181 | | Section 43-41-17; and153 |
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| 182 | 182 | | (4)(2) Any person who holds a current and valid license issued under this chapter to154 |
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| 183 | 183 | | engage in the comparable category of residential or general contracting which license was155 |
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| 184 | 184 | | issued to him or her in their capacity either as an individual licensee or as a qualifying156 |
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| 185 | 185 | | agent for a business organization.157 |
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| 186 | 186 | | (b) Any applicant for issuance of a residential contractor or general contractor license158 |
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| 187 | 187 | | under this title who shall seek exemption from the examination requirement under this159 |
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| 188 | 188 | | Code section, on any basis set forth above, shall have the burden of establishing to the160 |
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| 189 | 189 | | satisfaction and within the discretion of the appropriate division that the requirements for161 |
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| 190 | 190 | | such exemption have been satisfied. The decision of such division as to the satisfaction of162 |
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| 191 | 191 | | the requirements for such exemption from taking the examination shall, in the absence of163 |
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| 192 | 192 | | fraud, be conclusive.164 |
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| 193 | 193 | | (c) Any business organization that had an applicant submit a complete and satisfactory165 |
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| 194 | 194 | | application pursuant to this Code section, but was not issued a license due to the death of166 |
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| 195 | 195 | | the qualifying agent applicant prior to the issuance of the license, shall remain eligible for167 |
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| 196 | 196 | | consideration under this Code section with the submission of a new qualifying agent168 |
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| 197 | 197 | | applicant for such business entity."169 |
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| 198 | 198 | | SECTION 4.170 |
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| 199 | 199 | | Said chapter is further amended by revising subsections (a) and (b) of Code Section171 |
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| 200 | 200 | | 43-41-17, relating to effective date of licensing and sanctioning provisions, unenforceable172 |
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| 201 | 201 | | contracts, compliance with county or municipal requirements, exemption for Department of173 |
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| 202 | 202 | | Transportation contractors, and other exceptions, as follows:174 23 LC 36 5598 |
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| 203 | 203 | | H. B. 832 |
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| 204 | 204 | | - 8 - |
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| 205 | 205 | | "(a) The licensing requirements imposed by this chapter and the sanctions and |
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| 206 | 206 | | 175 |
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| 207 | 207 | | consequences relating thereto shall not become effective and enforceable until July 1, 2008.176 |
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| 208 | 208 | | On and after such date, no person, whether an individual or a business organization, shall177 |
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| 209 | 209 | | have the right to engage in the business of residential contracting or general contracting178 |
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| 210 | 210 | | without a current, valid residential contractor license or general contractor license,179 |
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| 211 | 211 | | respectively, issued by the division under this chapter or, in the case of a business180 |
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| 212 | 212 | | organization, unless such business organization shall have a qualifying agent as provided181 |
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| 213 | 213 | | in this chapter holding such a current, valid residential contractor or general contractor182 |
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| 214 | 214 | | license on behalf of such organization issued to such qualifying agent as provided in this183 |
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| 215 | 215 | | chapter. Notwithstanding the foregoing, persons seeking licensure under this chapter and |
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| 216 | 216 | | 184 |
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| 217 | 217 | | exemption from examination under paragraphs (1) and (2) of subsection (a) of Code185 |
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| 218 | 218 | | Section 43-41-8 shall submit their applications, including all necessary proof of the basis186 |
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| 219 | 219 | | of exemption from examination for such license, starting January 1, 2006. The period for187 |
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| 220 | 220 | | submission of such applications and requests for exemption from the examination188 |
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| 221 | 221 | | requirements shall extend thereafter for a period of 18 months. Furthermore,189 |
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| 222 | 222 | | notwithstanding the foregoing, any person seeking licensure under this chapter and190 |
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| 223 | 223 | | exemption from examination under paragraph (3) of subsection (a) of Code Section191 |
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| 224 | 224 | | 43-41-8 may submit his or her application, including all necessary proof of the basis of192 |
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| 225 | 225 | | such exemption starting January 1, 2007, and continuing thereafter.193 |
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| 226 | 226 | | (b) As a matter of public policy, any contract entered into on or after July 1, 2008, for the194 |
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| 227 | 227 | | performance of work for which a residential contractor or general contractor license is195 |
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| 228 | 228 | | required by this chapter and not otherwise exempted under this chapter and which is196 |
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| 229 | 229 | | between an owner and a contractor who does not have a valid and current license required197 |
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| 230 | 230 | | for such work in accordance with this chapter shall be unenforceable in law or in equity by198 |
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| 231 | 231 | | the unlicensed contractor. For purposes of this subsection, a contractor shall be considered199 |
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| 232 | 232 | | unlicensed only if the contractor was unlicensed on the effective date of the original200 |
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| 233 | 233 | | contract for the work, if stated therein, or, if not stated, the date the last party to the contract201 23 LC 36 5598 |
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| 234 | 234 | | H. B. 832 |
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| 235 | 235 | | - 9 - |
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| 236 | 236 | | executed such contract, if stated therein. If the contract does not establish such a date, the |
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| 237 | 237 | | 202 |
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| 238 | 238 | | contractor shall be considered unlicensed only if the contractor was unlicensed on the first203 |
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| 239 | 239 | | date upon which the contractor provided labor, services, or materials under the contract.204 |
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| 240 | 240 | | Notwithstanding any other provision of law to the contrary, if a contract is rendered205 |
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| 241 | 241 | | unenforceable under this subsection, no lien or bond claim shall exist in favor of the206 |
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| 242 | 242 | | unlicensed contractor for any labor, services, or materials provided under the contract or207 |
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| 243 | 243 | | any amendment thereto. This subsection shall not affect the rights of parties other than the208 |
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| 244 | 244 | | unlicensed contractor to enforce contract, lien, or bond remedies. This subsection shall not209 |
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| 245 | 245 | | affect the obligations of a surety that has provided a bond on behalf of an unlicensed210 |
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| 246 | 246 | | contractor. It shall not be a defense to any claim on a bond or indemnity agreement that211 |
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| 247 | 247 | | the principal or indemnitor is unlicensed for purposes of this subsection."212 |
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| 248 | 248 | | SECTION 5.213 |
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| 249 | 249 | | All laws and parts of laws in conflict with this Act are repealed.214 |
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