23 LC 36 5598
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House Bill 832
By: Representative Powell of the 33
rd
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 41 of Title 43 of the Official Code of Georgia Annotated, relating to
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residential and general contractors, so as to change certain provisions as to eligibility for2
licensure without examination; to eliminate certain exceptions; to change a definition; to3
change cross-references to eliminated provisions; to provide for related matters; to repeal4
conflicting laws; and for other purposes.5
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6
SECTION 1.7
Chapter 41 of Title 43 of the Official Code of Georgia Annotated, relating to residential and8
general contractors, is amended by revising paragraph (7) of Code Section 43-41-2, relating9
to definitions, as follows:10
"(7) 'Qualifying agent' means a person who possesses the requisite skill, knowledge, and11
experience and has the responsibility to supervise, direct, manage, and control all of the12
contracting activities within the State of Georgia of a contractor doing business in the13
form of a business organization, with which he or she is affiliated by employment or14
ownership; who has the responsibility to supervise, direct, manage, and control15
construction activities on any project for which he or she has obtained the building permit16 23 LC 36 5598
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pursuant to Code Section 43-41-14; and whose technical and personal qualifications have
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been determined by investigation and examination as provided in this chapter, except as
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exempted under Code Section 43-41-8, as attested by the division."19
SECTION 2.20
Said chapter is further amended by revising subsections (a) and (f) of Code Section 43-41-6,21
relating to application and appropriate fee, eligibility for licensure as residential-basic22
contractor, residential-light commercial contractor, general contractor, examination of23
qualified applicants, renewal of licenses, and continuing education requirements, as follows:24
"(a) Anyone seeking to be licensed as a residential contractor or as a general contractor in25
this state shall file an application on a form provided by the residential contractor or26
general contractor division, respectively, accompanied by an application fee as provided27
by the board. Such an application may be submitted either by:28
(1) An individual person seeking issuance of a license in his or her own name for29
purposes of engaging in the profession of residential or general contracting in his or her30
own name or doing business as an individual in a trade name as a sole proprietorship; or31
(2) An individual person affiliated by ownership or employment with and acting as a32
qualifying agent for a business organization seeking to engage in the profession of33
residential or general contracting in the name of the business organization in accordance34
with and pursuant to Code Section 43-41-9.35
Additionally, all applicants must submit to and successfully pass an examination prepared36
by, prepared for, or approved by the appropriate division, except where an applicant is37
otherwise qualified for licensure and has satisfied the appropriate division requirements and38
regulations for licensure pursuant to Code Section 43-41-8 exempting such applicant from39
the examination requirement or where the applicant is an individual acting as a qualifying40
agent for a business organization and has previously obtained and maintained continuously41
a license issued by the appropriate division, either as an individual doing business in his42 23 LC 36 5598
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or her own name or doing business as an individual in a trade name as a sole proprietor or
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as a qualifying agent for another business organization."44
"(f)(1) The residential contractor division and the general contractor division shall each45
conduct or cause to be conducted an examination of all qualified applicants, except those
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exempted from the examination requirement pursuant to Code Section 43-41-8.47
(2) The residential contractor division shall conduct or cause to be conducted separate48
examinations for applicants for residential-basic and residential-light commercial licenses49
for the purpose of determining a particular applicant's ability to make a practical50
application of his or her knowledge of the profession of residential contracting in the51
particular subcategory for which a license is sought; the applicant's qualifications in52
reading plans and specifications; his or her knowledge of building codes, estimating53
costs, construction, ethics, contracting, and other similar matters pertaining to such54
residential contracting business; his or her knowledge as to the responsibilities of a55
residential contractor to the public and to owners, subcontractors, and suppliers; and his56
or her knowledge of the requirements of the laws of this state relating to residential-basic57
and residential light-commercial residential-light commercial contractors, construction,58
workers' compensation, insurance, and liens.59
(3) The general contractor division shall conduct or cause to be conducted an60
examination to ascertain the particular applicant's ability to make a practical application61
of his or her knowledge of the profession of commercial general contracting; the62
applicant's qualifications in reading plans and specifications; his or her knowledge of63
building codes, estimating costs, construction, ethics, contracting, and other similar64
matters pertaining to the general contracting business; his or her knowledge as to the65
responsibilities of a general contractor to the public and to owners, subcontractors, and66
suppliers; and his or her knowledge of the requirements of the laws of this state relating67
to general contractors, construction, workers' compensation, insurance, surety bonding,68
and liens.69 23 LC 36 5598
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(4) If the results of the applicant's examination are satisfactory to the appropriate
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division, or he or she is exempted from the examination requirement under Code Section
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43-41-8, and if he or she and any affiliated business organization has met the other72
qualifications and requirements set forth in this Code section, then the appropriate73
division shall issue to the applicant a license to engage in business as a residential or74
general contractor in this state, as provided in such license, in his or her own name as a75
sole proprietor or as a qualifying agent for the affiliated business organization and in the76
name of such business organization, pursuant to and in accordance with the requirements77
set forth in Code Section 43-41-9. A residential contracting license shall indicate for78
which of the two subcategories, residential-basic or residential-light commercial, the79
licensee is qualified."80
SECTION 3.81
Said chapter is further amended by revising Code Section 43-41-8, relating to eligibility for82
licensure without examination, reciprocity, and burden upon applicant, as follows:83
"43-41-8.84
(a) Notwithstanding any other provision of this chapter to the contrary, the following85
persons desiring to qualify for a residential contractor license or a general contractor86
license under the provisions of this chapter, either individually or as a qualifying agent,87
shall be eligible for issuance of such a license by the appropriate division without88
examination, provided that such person submits a proper application and proofs, pays or89
has paid the required fees, otherwise meets the requirements of Code Section 43-41-6 for90
licensure, and is not otherwise in violation of this chapter:91
(1) Any person who holds a current and valid license to engage in the comparable92
category of residential or general contracting issued to him or her by any governing93
authority of any political subdivision of this state which requires passing an examination94
which is substantially similar to the state examination for residential or general95 23 LC 36 5598
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contractors, provided that such person is a Georgia resident and citizen, if an individual96
applying in his or her own behalf, or is seeking licensure as a qualifying agent for a97
business organization incorporated in Georgia or otherwise authorized and certified to98
transact business in Georgia with a regular office and place of business in Georgia99
currently and having had such office and place of business continuously for the five years100
immediately preceding such application; provided, further, that the examination results101
are made available to the appropriate division. Such application and request for102
exemption must be submitted within the time limits set forth in subsection (a) of Code103
Section 43-41-17;104
(2) Any person who has successfully and efficiently engaged in the comparable category105
of residential or general contracting in this state as provided in this Code section;106
provided, however, that such person shall be either a resident and citizen of the State of107
Georgia or, if applying as a qualifying agent for a business organization, such business108
organization shall be either incorporated in Georgia or is a business organization109
otherwise authorized and certified to transact business in Georgia with a regular office110
and place of business in Georgia currently and having had such office and place of111
business continuously for the five years immediately preceding such application;112
provided, further, that such application and request for exemption is submitted within the113
time limits set forth in subsection (a) of Code Section 43-41-17. To prove that he or she114
has successfully engaged in residential-basic or residential-light commercial projects, the115
person shall be required to give evidence of three successful projects located in Georgia116
which were successfully completed over the period of five years immediately prior to the117
time of application; evidence of ten successfully completed residential-basic or118
residential-light commercial projects located in Georgia over the period of ten years119
immediately prior to the time of application; or evidence that he or she has participated120
in or been engaged in residential-basic or residential-light commercial construction in a121
supervisory or management capacity for seven of the ten years immediately prior to the122 23 LC 36 5598
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time of application. To prove that he or she has successfully engaged in commercial123
general contracting, the person submitting the application shall be required to give124
evidence of five successful general contracting projects located in Georgia which were125
successfully completed over the period of five years immediately prior to the time of126
application or evidence of ten successful general contracting projects located in Georgia127
which were successfully completed over the period of ten years immediately prior to the128
time of application, such projects having been performed either by such person acting as129
an individual or by a business organization in which such individual person was affiliated130
by employment or ownership and over which such person had general oversight and131
management responsibilities;132
(3)(1) Any person who holds a current and valid license to practice a comparable133
category of residential or general contracting issued by another state or territory of the134
United States, where either such state or territory has entered into a reciprocal agreement135
with the board and divisions for the recognition of contractor licenses issued in that state136
or territory, or such application is pursuant to and in accordance with the regulations and137
requirements for reciprocity promulgated by the divisions in accordance with subsection138
(b) of Code Section 43-41-5. Additionally, such application shall meet the following139
requirements:140
(A) The criteria for issuance of such license or certification by such other state or141
territory, including the requirement to successfully complete an examination, were142
substantially equivalent to Georgia's current license criteria;143
(B) The application requirements and application form submitted to the other state or144
territory upon which such license was issued are available for review by the appropriate145
division and the examination results are made available to the appropriate division; and146
(C) The applicant shall demonstrate that he or she meets the qualifications,147
requirements, and criteria set forth in subsections (a), (b), (c), and (d) of Code Section148
43-41-6; and149 23 LC 36 5598
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(D) The applicant is otherwise in compliance with all requirements of this state for150
transaction of such business within this state; provided, however, that such application151
and request for exemption shall be submitted in accordance with subsection (a) of Code152
Section 43-41-17; and153
(4)(2) Any person who holds a current and valid license issued under this chapter to154
engage in the comparable category of residential or general contracting which license was155
issued to him or her in their capacity either as an individual licensee or as a qualifying156
agent for a business organization.157
(b) Any applicant for issuance of a residential contractor or general contractor license158
under this title who shall seek exemption from the examination requirement under this159
Code section, on any basis set forth above, shall have the burden of establishing to the160
satisfaction and within the discretion of the appropriate division that the requirements for161
such exemption have been satisfied. The decision of such division as to the satisfaction of162
the requirements for such exemption from taking the examination shall, in the absence of163
fraud, be conclusive.164
(c) Any business organization that had an applicant submit a complete and satisfactory165
application pursuant to this Code section, but was not issued a license due to the death of166
the qualifying agent applicant prior to the issuance of the license, shall remain eligible for167
consideration under this Code section with the submission of a new qualifying agent168
applicant for such business entity."169
SECTION 4.170
Said chapter is further amended by revising subsections (a) and (b) of Code Section171
43-41-17, relating to effective date of licensing and sanctioning provisions, unenforceable172
contracts, compliance with county or municipal requirements, exemption for Department of173
Transportation contractors, and other exceptions, as follows:174 23 LC 36 5598
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"(a) The licensing requirements imposed by this chapter and the sanctions and
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consequences relating thereto shall not become effective and enforceable until July 1, 2008.176
On and after such date, no person, whether an individual or a business organization, shall177
have the right to engage in the business of residential contracting or general contracting178
without a current, valid residential contractor license or general contractor license,179
respectively, issued by the division under this chapter or, in the case of a business180
organization, unless such business organization shall have a qualifying agent as provided181
in this chapter holding such a current, valid residential contractor or general contractor182
license on behalf of such organization issued to such qualifying agent as provided in this183
chapter. Notwithstanding the foregoing, persons seeking licensure under this chapter and
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exemption from examination under paragraphs (1) and (2) of subsection (a) of Code185
Section 43-41-8 shall submit their applications, including all necessary proof of the basis186
of exemption from examination for such license, starting January 1, 2006. The period for187
submission of such applications and requests for exemption from the examination188
requirements shall extend thereafter for a period of 18 months. Furthermore,189
notwithstanding the foregoing, any person seeking licensure under this chapter and190
exemption from examination under paragraph (3) of subsection (a) of Code Section191
43-41-8 may submit his or her application, including all necessary proof of the basis of192
such exemption starting January 1, 2007, and continuing thereafter.193
(b) As a matter of public policy, any contract entered into on or after July 1, 2008, for the194
performance of work for which a residential contractor or general contractor license is195
required by this chapter and not otherwise exempted under this chapter and which is196
between an owner and a contractor who does not have a valid and current license required197
for such work in accordance with this chapter shall be unenforceable in law or in equity by198
the unlicensed contractor. For purposes of this subsection, a contractor shall be considered199
unlicensed only if the contractor was unlicensed on the effective date of the original200
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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executed such contract, if stated therein. If the contract does not establish such a date, the
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contractor shall be considered unlicensed only if the contractor was unlicensed on the first203
date upon which the contractor provided labor, services, or materials under the contract.204
Notwithstanding any other provision of law to the contrary, if a contract is rendered205
unenforceable under this subsection, no lien or bond claim shall exist in favor of the206
unlicensed contractor for any labor, services, or materials provided under the contract or207
any amendment thereto. This subsection shall not affect the rights of parties other than the208
unlicensed contractor to enforce contract, lien, or bond remedies. This subsection shall not209
affect the obligations of a surety that has provided a bond on behalf of an unlicensed210
contractor. It shall not be a defense to any claim on a bond or indemnity agreement that211
the principal or indemnitor is unlicensed for purposes of this subsection."212
SECTION 5.213
All laws and parts of laws in conflict with this Act are repealed.214