25 LC 55 0546
House Bill 635
By: Representatives Wiedower of the 121
st
, Frye of the 122
nd
, Reeves of the 99
th
, Persinger
of the 119
th
, Franklin of the 160
th
, and others
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 41 of Title 43 of the Official Code of Georgia Annotated, relating to
1
residential and commercial general contractors, so as to revise provisions relating to the State2
Licensing Board for Residential and Commercial General Contractors; to revise and clarify3
qualifications for licensure as a residential or commercial general contractor; to revise4
provisions relating to examination of applicants; to revise provisions relating to the refusal5
to grant a license, revocation of a license, or other disciplinary action of the board; to provide6
for related matters; to repeal conflicting laws; and for other purposes.7
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8
SECTION 1.9
Chapter 41 of Title 43 of the Official Code of Georgia Annotated, relating to residential and10
commercial general contractors, is amended by revising Code Section 43-41-3, relating to11
creation of State Licensing Board for Residential and Commercial General Contractors,12
membership, divisions, vacancies, qualifications, terms, and meetings, as follows:13
"43-41-3.14
(a) There is created the State Licensing Board for Residential and Commercial General15
Contractors consisting of 15 members appointed by the Governor for five-year terms. The16
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board shall be assigned to the Secretary of State's office for administrative purposes and
17
shall be under the jurisdiction of the division director and shall operate in accordance with18
and pursuant to the provisions of Chapter 1 of this title, as applicable. The board shall be19
composed of two divisions: the residential contractor division, having jurisdiction of and20
authority over the two subcategories of residential contracting, residential-basic contractors21
and residential-light commercial contractors, and the commercial general contractor22
division. Eight members shall be appointed and serve as members of the residential23
contractor division of the board and seven members shall be appointed and serve as24
members of the commercial general contractor division of the board. Members shall serve25
until the expiration of their respective terms and until their successors are appointed and26
qualified. Vacancies occurring during a term shall be filled by appointment of the27
Governor for the remainder of the unexpired term and such replacement shall meet the28
requirements and criteria of selection of the person previously holding the vacant position. 29
To be eligible to serve on the respective divisions of the board, each contractor member30
shall be licensed in the category to which the member is appointed and shall remain31
actively involved in the construction contracting business and shall have been so engaged32
for a period of not less than five consecutive years before the date of appointment in the33
particular contracting business, as a residential contractor or commercial general34
contractor, corresponding to the division for which such person is appointed. The position35
of any appointed member of the board who, during his or her term of appointment, shall36
cease to meet the qualifications for original appointment shall be immediately vacated. No
37
member of the board shall be appointed to serve more than two full terms.38
(b) The residential contractor division shall consist of eight members and, except as39
otherwise expressly stated in this chapter, shall have jurisdiction of and authority over the40
practice of the two subcategories of residential contracting, residential-basic contractors41
and residential-light commercial contractors. Six members shall be residential contractors42
licensed under this chapter. At least two of the residential contractor members shall be43
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licensed as residential-light commercial contractors; at least two shall be licensed as
44
residential-basic contractors; one shall be a licensed residential contractor whose business45
predominantly involves remodeling projects; one shall be a licensed residential contractor46
who constructs at least an average of 20 residences per year; and all must
shall be47
geographically diverse. One member shall be have experience as a public building official48
and one member shall be a public member. The public member shall have no ties with the49
residential construction industry and shall represent the interests of the public at large. The50
member terms on the residential contractor division shall be staggered so that all terms do51
not expire simultaneously. The residential contractor division shall meet at least once52
every two months for the purpose of transacting such business as may properly come53
before it.54
(c) The commercial general contractor division shall consist of seven members and, except55
as otherwise expressly stated in this chapter, shall have jurisdiction of and authority over56
the practice of commercial general contracting. Five members shall be commercial general57
contractors licensed under this chapter. At least two of the commercial general contractor58
members shall be small-volume builders with an annual contracting volume of less than59
$10 million and all of whom must shall be geographically diverse. One member shall be60
a currently licensed or registered architect or engineer and one member shall be have61
experience as a public building official. The initial member terms on the commercial62
general contractor division shall be staggered so that all terms do not expire63
simultaneously. The commercial general contractor division shall meet at least once every64
two months for the purpose of transacting such business as may properly come before it."65
SECTION 2.66
Said chapter is further amended in Code Section 43-41-4, relating to chairperson and vice67
chairperson, meetings and quorums, and assistance from professional licensing boards68
division, by revising subsection (h) as follows:69
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"(h) The board shall not take action on any matter specifically delegated to and under the
70
authority and control of the one of its divisions unless at least four
a majority of its71
members from the affected division are present and participating in such action or72
decision."73
SECTION 3.74
Said chapter is further amended by revising Code Section 43-41-6, relating to application and75
appropriate fee, eligibility for licensure as residential-basic contractor, residential-light76
commercial contractor, or commercial general contractor, examination of qualified77
applicants, renewal of licenses, and continuing education requirements, as follows:78
"43-41-6.79
(a) Anyone seeking to be licensed as a residential contractor or as a commercial general80
contractor in this state shall file an application on a form provided by the residential81
contractor or commercial general contractor division, respectively, accompanied by an82
application fee as provided by the board. Such an application may be submitted either by:83
(1) An individual person seeking issuance of a license in his or her own name for84
purposes of engaging in the profession of residential or commercial general contracting85
in his or her own name or doing business as an individual in a trade name as a sole86
proprietorship; or87
(2) An individual person affiliated by ownership or employment with and acting as a88
qualifying agent for a business organization seeking to engage in the profession of89
residential or commercial general contracting in the name of the business organization90
in accordance with and pursuant to Code Section 43-41-9.91
Additionally, all applicants must submit to and shall successfully pass an examination92
prepared by, prepared for, or approved by the appropriate division, except where an93
applicant is otherwise qualified for licensure and has satisfied the appropriate division94
requirements and regulations for licensure pursuant to Code Section 43-41-8 exempting95
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such applicant from the examination requirement or where the applicant is an individual
96
acting as a qualifying agent for a business organization and has previously obtained and97
maintained continuously a license issued by the appropriate division, either as an individual98
doing business in his or her own name or doing business as an individual in a trade name99
as a sole proprietor or as a qualifying agent for another business organization.100
(b) A person shall be eligible for licensure as a residential-basic contractor by the101
residential contractor division if the person:102
(1) Is at least 21 years of age;103
(2) Is of a good character and is otherwise qualified as to competency, ability, integrity,104
and financial responsibility; and
105
(3) Has at least two years of proven verifiable experience working as or in under the106
direct employment of a licensed residential contractor, predominantly in with a primary107
focus on the residential-basic category, or other proven verifiable experience deemed that108
the division deems to be substantially similar by the division; and in scope and nature,109
including, but not limited to, experience performing activities, work, or services requiring110
licensure under Chapter 14 of this title. Such experience shall be verified through an111
affidavit, executed by the applicant's employer or such other person with knowledge of112
such experience, attesting under oath that the applicant has such experience.113
(4) Has had significant responsibility for the successful performance and completion of114
at least two projects falling within the residential-basic category in the two years115
immediately preceding application.116
(c) A person shall be eligible for licensure as a residential-light commercial contractor by117
the residential-light commercial subdivision if the person:118
(1) Is at least 21 years of age;119
(2) Is of a good character and is otherwise qualified as to competency, ability, integrity,120
and financial responsibility; and121
(3) Meets eligibility requirements according to one of the following criteria:122
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(A) Has received a baccalaureate degree from an accredited four-year college or
123
university in the field of engineering, architecture, construction management, building124
construction, or other field acceptable to the division and has at least one year of proven
125
experience working as or in the employment of a residential contractor, commercial126
general contractor, or other proven experience deemed substantially similar by the127
division;128
(B) Has a combination, equaling at least four years in the aggregate, acceptable to the129
division of academic credits from any accredited college-level courses in the field of130
engineering, architecture, construction management, building construction, or other131
field acceptable to the division and proven verifiable practical experience working as132
or in the employment of a residential contractor, commercial general contractor, or133
other proven verifiable experience deemed that the division deems to be substantially134
similar by the division equaling at least four years in the aggregate in nature and in135
scope, including, but not limited to, performing activities, work, or services requiring136
licensure under Chapter 14 of this title. For purposes of this subparagraph, all137
university, college, junior college, or community college-level courses shall be138
considered accredited college-level courses and any experience shall be verified139
through an affidavit, executed by the applicant's employer or such other person with140
knowledge of such experience, attesting under oath that the applicant has such141
experience; or142
(C) Has a total of at least four years of proven verifiable active experience working in143
a construction industry related field, at least two of which shall have been as or in the144
employment of a residential contractor, or other proven verifiable experience deemed145
acceptable by the division. Such experience shall be verified through an affidavit,146
executed by the applicant's employer or such other person with knowledge of such147
experience, attesting under oath that the applicant has such experience; and148
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(4) Has had significant responsibility for the successful performance and completion of149
at least two projects falling within the residence-light commercial category in the four150
years immediately preceding application.151
(d) A person shall be eligible for licensure as a commercial general contractor by the152
commercial general contractor division if the person:153
(1) Is at least 21 years of age;154
(2) Is of a good character and is otherwise qualified as to competency, ability, integrity,155
and financial responsibility; and156
(3) Meets eligibility requirements according to one of the following criteria:157
(A) Has received a baccalaureate degree from an accredited four-year college or158
university in the field of engineering, architecture, construction management, building159
construction, or other field acceptable to the division and has at least one year of proven160
experience working as or in the employment of a commercial general contractor or161
other proven experience deemed substantially similar by the division;162
(B) Has a combination, equaling at least four years in the aggregate, acceptable to the163
division of academic credits from any accredited college-level courses in the field of164
engineering, architecture, construction management, building construction, or other165
field acceptable to the division and proven verifiable practical experience working as166
or in the employment of a commercial general contractor or other proven verifiable167
experience deemed that the division deems to be substantially similar by the division168
equaling at least four years in the aggregate in nature and in scope, including, but not169
limited to, performing activities, work, or services requiring licensure under Chapter170
14 of this title. For purposes of this subparagraph, all university, college, junior171
college, or community college-level courses shall be considered accredited172
college-level courses and any experience shall be verified through an affidavit,173
executed by the applicant's employer or such other person with knowledge of such174
experience, attesting under oath that the applicant has such experience; or175
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(C) Has a total of at least four years of proven active experience working in a
176
construction industry related field, at least two of which shall have been as or in the177
employment of a commercial general contractor, or other proven experience deemed178
acceptable by the division and at least one of which shall have been in or relating to179
administration, marketing, accounting, estimating, drafting, engineering, supervision,180
or project management, or functions deemed substantially similar by the division. Such
181
experience shall be verified through an affidavit, executed by the applicant's employer182
or such other person with knowledge of such experience, attesting under oath that the183
applicant has such experience.184
(e)(1) Before being entitled to take an examination or otherwise qualify qualifying for185
issuance of a license, an applicant must shall show to the satisfaction of the residential186
contractor division or commercial general contractor division from the application and187
proofs furnished that the applicant is possessed of a good character and is otherwise188
qualified as to competency, ability, and integrity. The application shall include a list of189
all persons, entities, and business organizations that the applicant will be affiliated with190
as a licensed residential contractor or commercial general contractor, whether by way of191
employment, ownership, serving as an owner or director, partnership, or membership or192
by serving as a qualifying agent under this chapter. All applicants shall also provide their193
social security numbers, if applying as an individual, or the federal taxpayer identification194
numbers of any business organization for which the applicant is seeking licensure as a195
qualifying agent. Applicants for a commercial general contractor's license shall also196
provide suitable verification of tax payments in a form and manner and for the duration197
prescribed by the commercial general contractor division; provided, however, that, where198
the application is seeking license as a qualifying agent of a business organization, such199
tax verification and information shall relate and pertain to that business organization.200
(2) Before qualifying for issuance of a license, but not before being entitled to take an201
examination, an applicant must shall show to the satisfaction of the appropriate division202
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that the applicant is qualified as to financial responsibility. Applicants for a commercial
203
general contractor license shall provide proof of a minimum net worth in an amount204
specified by the commercial general contractor division. All applicants shall provide205
proof of general liability insurance in an amount specified by the appropriate division and206
proof of workers' compensation insurance as required by the laws of this state. If the207
applicant is submitted as a person seeking to act as a qualifying agent of a business208
organization, then such proof shall pertain to that business organization rather than the209
individual applicant, subject to the limitations set forth in Code Section 43-41-9. A210
certificate by the insurer or other appropriate evidence of insurance coverages shall be211
maintained with the appropriate division and shall be a condition of renewal.212
(3) The decision of the appropriate division as to the qualifications of applicants shall,213
in the absence of fraud or willful or wanton misconduct, be conclusive.214
(4) A licensee, on his or her own behalf or where acting as a qualifying agent on behalf215
of the business organization so qualified, must
shall notify the appropriate division in216
writing within 30 days of any changes in the information required to be on file with such217
division, including, but not limited to, the licensee's and, if the licensee is acting as a218
qualifying agent for any business organization, such business organization's current219
mailing address, insurance coverages, and affiliated entities.220
(f)(1) The residential contractor division and the commercial general contractor division221
shall each conduct or cause to be conducted an approve an appropriate examination of222
which all qualified applicants, except those exempted from the examination requirement223
pursuant to Code Section 43-41-8, shall pass in order to be eligible for licensure under224
this chapter.225
(2) The residential contractor division shall conduct or cause to be conducted approve226
separate examinations for applicants for residential-basic and residential-light commercial227
licenses for the purpose of determining a particular applicant's ability to make a practical228
application of his or her knowledge of the profession of residential contracting in the229
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particular subcategory for which a license is sought; the applicant's qualifications in
230
reading plans and specifications; his or her knowledge of building codes, estimating231
costs, construction, ethics, contracting, and other similar matters pertaining to such232
residential contracting business; his or her knowledge as to the responsibilities of a233
residential contractor to the public and to owners, subcontractors, and suppliers; and his234
or her knowledge of the requirements of the laws of this state relating to residential-basic235
and residential-light commercial contractors, construction, workers' compensation,236
insurance, and liens.237
(3) The commercial general contractor division shall conduct or cause to be conducted
238
approve an examination to ascertain the particular applicant's ability to make a practical239
application of his or her knowledge of the profession of commercial general contracting;240
the applicant's qualifications in reading plans and specifications; his or her knowledge of241
building codes, estimating costs, construction, ethics, contracting, and other similar242
matters pertaining to the commercial general contracting business; his or her knowledge243
as to the responsibilities of a commercial general contractor to the public and to owners,244
subcontractors, and suppliers; and his or her knowledge of the requirements of the laws245
of this state relating to commercial general contractors, construction, workers'246
compensation, insurance, surety bonding, and liens.247
(4) If the results of the applicant's examination are satisfactory to the appropriate248
division, or he or she is exempted from the examination requirement under pursuant to249
Code Section 43-41-8, and if he or she and any affiliated business organization has met250
the other qualifications and requirements set forth in this Code section, then the251
appropriate division shall issue to the applicant a license to engage in business as a252
residential or commercial general contractor in this state, as provided in such license, in253
his or her own name as a sole proprietor or as a qualifying agent for the affiliated254
business organization and in the name of such business organization, pursuant to and in255
accordance with the requirements set forth in Code Section 43-41-9. A residential256
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contracting license shall indicate for which of the two subcategories, residential-basic or
257
residential-light commercial, the licensee is qualified.258
(g) Any otherwise qualified applicant failing this
any examination required under this259
Code section may be reexamined at any regularly scheduled examination within one year260
of the date of original application upon payment of a reexamination fee, in an amount to261
be set by the board, without need to resubmit an application, unless any information set262
forth in the previously submitted application is no longer accurate or complete. Anyone263
requesting to take the examination a fourth or subsequent time shall wait at least one264
calendar year after the date of original application and shall submit an application with the265
appropriate examination fees.266
(h) A residential contractor license, indicating whether relating to the residential-basic or267
residential-light commercial category, or commercial general contractor license shall be268
issued to an applicant who successfully completes the respective requirements therefor269
upon the payment of fees prescribed by the board.270
(i) Such licenses shall be renewable biennially. Licenses may be renewed subsequent to271
their expiration within six months of the date of expiration by submitting a renewal as272
prescribed by the board and paying a late renewal fee as determined by the board. After273
six months has have elapsed from the date of expiration, such license may be reinstated in274
accordance with the rules and regulations of the board.275
(j) The division director shall give advance notice to each person holding a license under276
this chapter of the date of the expiration of the certificate of registration and the amount of277
the fee required for renewal at least one month prior to the expiration date, but the failure278
to receive such notice shall not avoid the expiration of any license not renewed in279
accordance with this Code section.280
(k) As a condition of renewal, the appropriate division may require licensees to complete281
division approved continuing education of not more than three hours annually for a282
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residential-basic contractor license, six hours annually for a residential-light commercial283
contractor license, and eight hours annually for a commercial general contractor license."284
SECTION 4.285
Said chapter is further amended in Code Section 43-41-16, relating to grounds for revocation286
of license, authorized action by division in event of wrongdoing, interest and penalties, and287
continuing education as requirement for resumption of standing, by revising subsection (a)288
as follows:289
"(a) The board shall have the authority to refuse to grant a license to an applicant or to290
revoke the license of a person licensed by the board or to discipline a person licensed by291
the board upon a finding by a majority of the board that the applicant or licensee has292
committed any of the following acts:293
(1) Obtaining a license by fraud or misrepresentation or otherwise knowingly giving294
false or forged evidence to the board or its divisions;295
(2) Being convicted or found guilty of or entering a plea of guilty or nolo contendere to296
a criminal act constituting a felony in any jurisdiction which directly relates to the297
practice of residential or commercial general contracting or the ability to practice298
contracting;299
(3) Performing any act which assists a person or entity in the prohibited unlicensed300
practice of contracting if the licensee knows or has reasonable grounds to know that the301
person or entity is unlicensed;302
(4) Knowingly combining or conspiring with an unlicensed person by allowing his or her303
license to be used with the intent to evade the provisions of this chapter. When an304
individual license holder allows his or her license to be used to qualify one or more305
business organizations, including where such qualifying agent for a person engaged in306
general contracting does not actually possess and exercise the power and authority307
required of a qualifying agent under paragraph (7) of Code Section 43-41-2 and Code308
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Section Code Sections 43-41-2 and 43-41-9, such act constitutes prima-facie evidence of309
an intent to evade the provisions of this chapter;310
(5) Failing in any material respect to comply with the provisions of this chapter or311
violating a rule, regulation, or lawful order of the board or its divisions;312
(6) Abandoning a construction project in which the contractor who is the individual313
license holder or a business organization for whom the license holder is a qualifying314
agent is engaged or under contract as a residential or commercial general contractor. A315
project may be presumed abandoned after 90 days if the contractor has ceased work on316
or terminated performance on the project without just cause and without proper317
notification to the owner, including the reason for the termination, cessation, or318
abandonment;319
(7) Signing a statement with respect to a project or contract falsely indicating that the320
work is bonded; knowingly and falsely indicating by written statement issued to the321
owner that payment has been made for all subcontracted work, labor, and materials and322
for all materials furnished and installed which statement is reasonably relied upon and323
actually results in a financial loss to the owner; or falsely indicating that workers'324
compensation and general liability insurance are provided;325
(8) Committing fraud or deceit in the practice of contracting, including falsely326
advertising, representing, or holding himself or herself or an affiliated business327
organization out as having a valid and current license under this chapter;328
(9) Committing gross negligence, repeated or persistent negligence, or negligence329
resulting in a significant danger to life or property;330
(10) Proceeding on any job without obtaining applicable local building permits and331
inspections;332
(11) Using or attempting to use a license that has expired or has been suspended or333
revoked;334
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(12) Knowingly or intentionally engaging any subcontractor to perform work within the
335
scope of the general or residential construction contract which requires a license under336
Chapter 14 of this title who does not possess a current and valid license for such work;337
or
338
(13) Failing to satisfy within a reasonable time the terms of a final civil judgment339
obtained against the licensee or the business organization qualified by the licensee340
relating to the practice of the licensee's profession; or341
(14) Knowingly entering into a contractual arrangement, whether oral or written, for or342
otherwise permitting the use of his or her license issued under this chapter by an343
individual who is not licensed in accordance with this chapter or by a business entity that344
has not been authorized under the provisions of this chapter to lawfully engage in345
contracting or perform the functions of a contractor."346
SECTION 5.347
All laws and parts of laws in conflict with this Act are repealed.348
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