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Georgia House Bill HB635

Georgia 2025-2026 Regular Session

Georgia House Bill HB635 Compare Versions

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1-25 LC 55 0546/AP
2-House Bill 635 (AS PASSED HOUSE AND SENATE)
1+25 LC 55 0546
2+House Bill 635
33 By: Representatives Wiedower of the 121
44 st
55 , Frye of the 122
66 nd
77 , Reeves of the 99
88 th
99 , Persinger
1010 of the 119
1111 th
1212 , Franklin of the 160
1313 th
1414 , and others
1515 A BILL TO BE ENTITLED
1616 AN ACT
1717 To amend Chapter 41 of Title 43 of the Official Code of Georgia Annotated, relating to
1818 1
1919 residential and commercial general contractors, so as to revise provisions relating to the State2
2020 Licensing Board for Residential and Commercial General Contractors; to revise and clarify3
2121 qualifications for licensure as a residential or commercial general contractor; to revise4
2222 provisions relating to examination of applicants; to revise provisions relating to the refusal5
2323 to grant a license, revocation of a license, or other disciplinary action of the board; to provide6
2424 for related matters; to repeal conflicting laws; and for other purposes.7
2525 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8
2626 SECTION 1.9
2727 Chapter 41 of Title 43 of the Official Code of Georgia Annotated, relating to residential and10
2828 commercial general contractors, is amended by revising Code Section 43-41-3, relating to11
2929 creation of State Licensing Board for Residential and Commercial General Contractors,12
3030 membership, divisions, vacancies, qualifications, terms, and meetings, as follows:13
3131 "43-41-3.14
3232 (a) There is created the State Licensing Board for Residential and Commercial General15
3333 Contractors consisting of 15 members appointed by the Governor for five-year terms. The16
3434 H. B. 635
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3636 board shall be assigned to the Secretary of State's office for administrative purposes and
3737 17
3838 shall be under the jurisdiction of the division director and shall operate in accordance with18
3939 and pursuant to the provisions of Chapter 1 of this title, as applicable. The board shall be19
4040 composed of two divisions: the residential contractor division, having jurisdiction of and20
4141 authority over the two subcategories of residential contracting, residential-basic contractors21
4242 and residential-light commercial contractors, and the commercial general contractor22
4343 division. Eight members shall be appointed and serve as members of the residential23
4444 contractor division of the board and seven members shall be appointed and serve as24
4545 members of the commercial general contractor division of the board. Members shall serve25
4646 until the expiration of their respective terms and until their successors are appointed and26
4747 qualified. Vacancies occurring during a term shall be filled by appointment of the27
4848 Governor for the remainder of the unexpired term and such replacement shall meet the28
4949 requirements and criteria of selection of the person previously holding the vacant position. 29
5050 To be eligible to serve on the respective divisions of the board, each contractor member30
5151 shall be licensed in the category to which the member is appointed and shall remain31
5252 actively involved in the construction contracting business and shall have been so engaged32
5353 for a period of not less than five consecutive years before the date of appointment in the33
5454 particular contracting business, as a residential contractor or commercial general34
5555 contractor, corresponding to the division for which such person is appointed. The position35
5656 of any appointed member of the board who, during his or her term of appointment, shall36
5757 cease to meet the qualifications for original appointment shall be immediately vacated. No
5858 37
5959 member of the board shall be appointed to serve more than two full terms.38
6060 (b) The residential contractor division shall consist of eight members and, except as39
6161 otherwise expressly stated in this chapter, shall have jurisdiction of and authority over the40
6262 practice of the two subcategories of residential contracting, residential-basic contractors41
6363 and residential-light commercial contractors. Six members shall be residential contractors42
6464 licensed under this chapter. At least two of the residential contractor members shall be43
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6767 licensed as residential-light commercial contractors; at least two shall be licensed as
6868 44
6969 residential-basic contractors; one shall be a licensed residential contractor whose business45
7070 predominantly involves remodeling projects; one shall be a licensed residential contractor46
7171 who constructs at least an average of 20 residences per year; and all must
7272 shall be47
7373 geographically diverse. One member shall be have experience as a public building official48
7474 and one member shall be a public member. The public member shall have no ties with the49
7575 residential construction industry and shall represent the interests of the public at large. The50
7676 member terms on the residential contractor division shall be staggered so that all terms do51
7777 not expire simultaneously. The residential contractor division shall meet at least once52
7878 every two months for the purpose of transacting such business as may properly come53
7979 before it.54
8080 (c) The commercial general contractor division shall consist of seven members and, except55
8181 as otherwise expressly stated in this chapter, shall have jurisdiction of and authority over56
8282 the practice of commercial general contracting. Five members shall be commercial general57
8383 contractors licensed under this chapter. At least two of the commercial general contractor58
8484 members shall be small-volume builders with an annual contracting volume of less than59
8585 $10 million and all of whom must shall be geographically diverse. One member shall be60
8686 a currently licensed or registered architect or engineer and one member shall be have61
8787 experience as a public building official. The initial member terms on the commercial62
8888 general contractor division shall be staggered so that all terms do not expire63
8989 simultaneously. The commercial general contractor division shall meet at least once every64
9090 two months for the purpose of transacting such business as may properly come before it."65
9191 SECTION 2.66
9292 Said chapter is further amended in Code Section 43-41-4, relating to chairperson and vice67
9393 chairperson, meetings and quorums, and assistance from professional licensing boards68
9494 division, by revising subsection (h) as follows:69
9595 H. B. 635
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9797 "(h) The board shall not take action on any matter specifically delegated to and under the
9898 70
9999 authority and control of the one of its divisions unless at least four
100100 a majority of its71
101101 members from the affected division are present and participating in such action or72
102102 decision."73
103103 SECTION 3.74
104104 Said chapter is further amended by revising Code Section 43-41-6, relating to application and75
105105 appropriate fee, eligibility for licensure as residential-basic contractor, residential-light76
106106 commercial contractor, or commercial general contractor, examination of qualified77
107107 applicants, renewal of licenses, and continuing education requirements, as follows:78
108108 "43-41-6.79
109109 (a) Anyone seeking to be licensed as a residential contractor or as a commercial general80
110110 contractor in this state shall file an application on a form provided by the residential81
111111 contractor or commercial general contractor division, respectively, accompanied by an82
112112 application fee as provided by the board. Such an application may be submitted either by:83
113113 (1) An individual person seeking issuance of a license in his or her own name for84
114114 purposes of engaging in the profession of residential or commercial general contracting85
115115 in his or her own name or doing business as an individual in a trade name as a sole86
116116 proprietorship; or87
117117 (2) An individual person affiliated by ownership or employment with and acting as a88
118118 qualifying agent for a business organization seeking to engage in the profession of89
119119 residential or commercial general contracting in the name of the business organization90
120120 in accordance with and pursuant to Code Section 43-41-9.91
121121 Additionally, all applicants must submit to and shall successfully pass an examination92
122122 prepared by, prepared for, or approved by the appropriate division, except where an93
123123 applicant is otherwise qualified for licensure and has satisfied the appropriate division94
124124 requirements and regulations for licensure pursuant to Code Section 43-41-8 exempting95
125125 H. B. 635
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127127 such applicant from the examination requirement or where the applicant is an individual
128128 96
129129 acting as a qualifying agent for a business organization and has previously obtained and97
130130 maintained continuously a license issued by the appropriate division, either as an individual98
131131 doing business in his or her own name or doing business as an individual in a trade name99
132132 as a sole proprietor or as a qualifying agent for another business organization.100
133133 (b) A person shall be eligible for licensure as a residential-basic contractor by the101
134134 residential contractor division if the person:102
135135 (1) Is at least 21 years of age;103
136136 (2) Is of a good character and is otherwise qualified as to competency, ability, integrity,104
137137 and financial responsibility; and
138138 105
139139 (3) Has at least two years of proven verifiable experience working as or in under the106
140140 direct employment of a licensed residential contractor, predominantly in with a primary107
141141 focus on the residential-basic category, or other proven verifiable experience deemed that108
142142 the division deems to be substantially similar by the division; and in scope and nature,109
143143 including, but not limited to, experience performing activities, work, or services requiring110
144144 licensure under Chapter 14 of this title. Such experience shall be verified through an111
145145 affidavit, executed by the applicant's employer or such other person with knowledge of112
146146 such experience, attesting under oath that the applicant has such experience.113
147147 (4) Has had significant responsibility for the successful performance and completion of114
148148 at least two projects falling within the residential-basic category in the two years115
149149 immediately preceding application.116
150150 (c) A person shall be eligible for licensure as a residential-light commercial contractor by117
151151 the residential-light commercial subdivision if the person:118
152152 (1) Is at least 21 years of age;119
153153 (2) Is of a good character and is otherwise qualified as to competency, ability, integrity,120
154154 and financial responsibility; and121
155155 (3) Meets eligibility requirements according to one of the following criteria:122
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158158 (A) Has received a baccalaureate degree from an accredited four-year college or
159159 123
160160 university in the field of engineering, architecture, construction management, building124
161161 construction, or other field acceptable to the division and has at least one year of proven
162162 125
163163 experience working as or in the employment of a residential contractor, commercial126
164164 general contractor, or other proven experience deemed substantially similar by the127
165165 division;128
166166 (B) Has a combination, equaling at least four years in the aggregate, acceptable to the129
167167 division of academic credits from any accredited college-level courses in the field of130
168168 engineering, architecture, construction management, building construction, or other131
169169 field acceptable to the division and proven verifiable practical experience working as132
170170 or in the employment of a residential contractor, commercial general contractor, or133
171171 other proven verifiable experience deemed that the division deems to be substantially134
172172 similar by the division equaling at least four years in the aggregate in nature and in135
173173 scope, including, but not limited to, performing activities, work, or services requiring136
174174 licensure under Chapter 14 of this title. For purposes of this subparagraph, all137
175175 university, college, junior college, or community college-level courses shall be138
176176 considered accredited college-level courses and any experience shall be verified139
177177 through an affidavit, executed by the applicant's employer or such other person with140
178178 knowledge of such experience, attesting under oath that the applicant has such141
179179 experience; or142
180180 (C) Has a total of at least four years of proven verifiable active experience working in143
181181 a construction industry related field, at least two of which shall have been as or in the144
182182 employment of a residential contractor, or other proven verifiable experience deemed145
183183 acceptable by the division. Such experience shall be verified through an affidavit,146
184184 executed by the applicant's employer or such other person with knowledge of such147
185185 experience, attesting under oath that the applicant has such experience; and148
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188188 (4) Has had significant responsibility for the successful performance and completion of149
189189 at least two projects falling within the residence-light commercial category in the four150
190190 years immediately preceding application.151
191191 (d) A person shall be eligible for licensure as a commercial general contractor by the152
192192 commercial general contractor division if the person:153
193193 (1) Is at least 21 years of age;154
194194 (2) Is of a good character and is otherwise qualified as to competency, ability, integrity,155
195195 and financial responsibility; and156
196196 (3) Meets eligibility requirements according to one of the following criteria:157
197197 (A) Has received a baccalaureate degree from an accredited four-year college or158
198198 university in the field of engineering, architecture, construction management, building159
199199 construction, or other field acceptable to the division and has at least one year of proven160
200200 experience working as or in the employment of a commercial general contractor or161
201201 other proven experience deemed substantially similar by the division;162
202202 (B) Has a combination, equaling at least four years in the aggregate, acceptable to the163
203203 division of academic credits from any accredited college-level courses in the field of164
204204 engineering, architecture, construction management, building construction, or other165
205205 field acceptable to the division and proven verifiable practical experience working as166
206206 or in the employment of a commercial general contractor or other proven verifiable167
207207 experience deemed that the division deems to be substantially similar by the division168
208208 equaling at least four years in the aggregate in nature and in scope, including, but not169
209209 limited to, performing activities, work, or services requiring licensure under Chapter170
210210 14 of this title. For purposes of this subparagraph, all university, college, junior171
211211 college, or community college-level courses shall be considered accredited172
212212 college-level courses and any experience shall be verified through an affidavit,173
213213 executed by the applicant's employer or such other person with knowledge of such174
214214 experience, attesting under oath that the applicant has such experience; or175
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217217 (C) Has a total of at least four years of proven active experience working in a
218218 176
219219 construction industry related field, at least two of which shall have been as or in the177
220220 employment of a commercial general contractor, or other proven experience deemed178
221221 acceptable by the division and at least one of which shall have been in or relating to179
222222 administration, marketing, accounting, estimating, drafting, engineering, supervision,180
223223 or project management, or functions deemed substantially similar by the division. Such
224224 181
225225 experience shall be verified through an affidavit, executed by the applicant's employer182
226226 or such other person with knowledge of such experience, attesting under oath that the183
227227 applicant has such experience.184
228228 (e)(1) Before being entitled to take an examination or otherwise qualify qualifying for185
229229 issuance of a license, an applicant must shall show to the satisfaction of the residential186
230230 contractor division or commercial general contractor division from the application and187
231231 proofs furnished that the applicant is possessed of a good character and is otherwise188
232232 qualified as to competency, ability, and integrity. The application shall include a list of189
233233 all persons, entities, and business organizations that the applicant will be affiliated with190
234234 as a licensed residential contractor or commercial general contractor, whether by way of191
235235 employment, ownership, serving as an owner or director, partnership, or membership or192
236236 by serving as a qualifying agent under this chapter. All applicants shall also provide their193
237237 social security numbers, if applying as an individual, or the federal taxpayer identification194
238238 numbers of any business organization for which the applicant is seeking licensure as a195
239239 qualifying agent. Applicants for a commercial general contractor's license shall also196
240240 provide suitable verification of tax payments in a form and manner and for the duration197
241241 prescribed by the commercial general contractor division; provided, however, that, where198
242242 the application is seeking license as a qualifying agent of a business organization, such199
243243 tax verification and information shall relate and pertain to that business organization.200
244244 (2) Before qualifying for issuance of a license, but not before being entitled to take an201
245245 examination, an applicant must shall show to the satisfaction of the appropriate division202
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248248 that the applicant is qualified as to financial responsibility. Applicants for a commercial
249249 203
250250 general contractor license shall provide proof of a minimum net worth in an amount204
251251 specified by the commercial general contractor division. All applicants shall provide205
252252 proof of general liability insurance in an amount specified by the appropriate division and206
253253 proof of workers' compensation insurance as required by the laws of this state. If the207
254254 applicant is submitted as a person seeking to act as a qualifying agent of a business208
255255 organization, then such proof shall pertain to that business organization rather than the209
256256 individual applicant, subject to the limitations set forth in Code Section 43-41-9. A210
257257 certificate by the insurer or other appropriate evidence of insurance coverages shall be211
258258 maintained with the appropriate division and shall be a condition of renewal.212
259259 (3) The decision of the appropriate division as to the qualifications of applicants shall,213
260260 in the absence of fraud or willful or wanton misconduct, be conclusive.214
261261 (4) A licensee, on his or her own behalf or where acting as a qualifying agent on behalf215
262262 of the business organization so qualified, must
263263 shall notify the appropriate division in216
264264 writing within 30 days of any changes in the information required to be on file with such217
265265 division, including, but not limited to, the licensee's and, if the licensee is acting as a218
266266 qualifying agent for any business organization, such business organization's current219
267267 mailing address, insurance coverages, and affiliated entities.220
268268 (f)(1) The residential contractor division and the commercial general contractor division221
269269 shall each conduct or cause to be conducted an approve an appropriate examination of222
270270 which all qualified applicants, except those exempted from the examination requirement223
271271 pursuant to Code Section 43-41-8, shall pass in order to be eligible for licensure under224
272272 this chapter.225
273273 (2) The residential contractor division shall conduct or cause to be conducted approve226
274274 separate examinations for applicants for residential-basic and residential-light commercial227
275275 licenses for the purpose of determining a particular applicant's ability to make a practical228
276276 application of his or her knowledge of the profession of residential contracting in the229
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279279 particular subcategory for which a license is sought; the applicant's qualifications in
280280 230
281281 reading plans and specifications; his or her knowledge of building codes, estimating231
282282 costs, construction, ethics, contracting, and other similar matters pertaining to such232
283283 residential contracting business; his or her knowledge as to the responsibilities of a233
284284 residential contractor to the public and to owners, subcontractors, and suppliers; and his234
285285 or her knowledge of the requirements of the laws of this state relating to residential-basic235
286286 and residential-light commercial contractors, construction, workers' compensation,236
287287 insurance, and liens.237
288288 (3) The commercial general contractor division shall conduct or cause to be conducted
289289 238
290290 approve an examination to ascertain the particular applicant's ability to make a practical239
291291 application of his or her knowledge of the profession of commercial general contracting;240
292292 the applicant's qualifications in reading plans and specifications; his or her knowledge of241
293293 building codes, estimating costs, construction, ethics, contracting, and other similar242
294294 matters pertaining to the commercial general contracting business; his or her knowledge243
295295 as to the responsibilities of a commercial general contractor to the public and to owners,244
296296 subcontractors, and suppliers; and his or her knowledge of the requirements of the laws245
297297 of this state relating to commercial general contractors, construction, workers'246
298298 compensation, insurance, surety bonding, and liens.247
299299 (4) If the results of the applicant's examination are satisfactory to the appropriate248
300300 division, or he or she is exempted from the examination requirement under pursuant to249
301301 Code Section 43-41-8, and if he or she and any affiliated business organization has met250
302302 the other qualifications and requirements set forth in this Code section, then the251
303303 appropriate division shall issue to the applicant a license to engage in business as a252
304304 residential or commercial general contractor in this state, as provided in such license, in253
305305 his or her own name as a sole proprietor or as a qualifying agent for the affiliated254
306306 business organization and in the name of such business organization, pursuant to and in255
307307 accordance with the requirements set forth in Code Section 43-41-9. A residential256
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310310 contracting license shall indicate for which of the two subcategories, residential-basic or
311311 257
312312 residential-light commercial, the licensee is qualified.258
313313 (g) Any otherwise qualified applicant failing this
314314 any examination required under this259
315315 Code section may be reexamined at any regularly scheduled examination within one year260
316316 of the date of original application upon payment of a reexamination fee, in an amount to261
317317 be set by the board, without need to resubmit an application, unless any information set262
318318 forth in the previously submitted application is no longer accurate or complete. Anyone263
319319 requesting to take the examination a fourth or subsequent time shall wait at least one264
320320 calendar year after the date of original application and shall submit an application with the265
321321 appropriate examination fees.266
322322 (h) A residential contractor license, indicating whether relating to the residential-basic or267
323323 residential-light commercial category, or commercial general contractor license shall be268
324324 issued to an applicant who successfully completes the respective requirements therefor269
325325 upon the payment of fees prescribed by the board.270
326326 (i) Such licenses shall be renewable biennially. Licenses may be renewed subsequent to271
327327 their expiration within six months of the date of expiration by submitting a renewal as272
328328 prescribed by the board and paying a late renewal fee as determined by the board. After273
329329 six months has have elapsed from the date of expiration, such license may be reinstated in274
330330 accordance with the rules and regulations of the board.275
331331 (j) The division director shall give advance notice to each person holding a license under276
332332 this chapter of the date of the expiration of the certificate of registration and the amount of277
333333 the fee required for renewal at least one month prior to the expiration date, but the failure278
334334 to receive such notice shall not avoid the expiration of any license not renewed in279
335335 accordance with this Code section.280
336336 (k) As a condition of renewal, the appropriate division may require licensees to complete281
337337 division approved continuing education of not more than three hours annually for a282
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340340 residential-basic contractor license, six hours annually for a residential-light commercial283
341341 contractor license, and eight hours annually for a commercial general contractor license."284
342342 SECTION 4.285
343343 Said chapter is further amended in Code Section 43-41-16, relating to grounds for revocation286
344344 of license, authorized action by division in event of wrongdoing, interest and penalties, and287
345345 continuing education as requirement for resumption of standing, by revising subsection (a)288
346346 as follows:289
347347 "(a) The board shall have the authority to refuse to grant a license to an applicant or to290
348348 revoke the license of a person licensed by the board or to discipline a person licensed by291
349349 the board upon a finding by a majority of the board that the applicant or licensee has292
350350 committed any of the following acts:293
351351 (1) Obtaining a license by fraud or misrepresentation or otherwise knowingly giving294
352352 false or forged evidence to the board or its divisions;295
353353 (2) Being convicted or found guilty of or entering a plea of guilty or nolo contendere to296
354354 a criminal act constituting a felony in any jurisdiction which directly relates to the297
355355 practice of residential or commercial general contracting or the ability to practice298
356356 contracting;299
357357 (3) Performing any act which assists a person or entity in the prohibited unlicensed300
358358 practice of contracting if the licensee knows or has reasonable grounds to know that the301
359359 person or entity is unlicensed;302
360360 (4) Knowingly combining or conspiring with an unlicensed person by allowing his or her303
361361 license to be used with the intent to evade the provisions of this chapter. When an304
362362 individual license holder allows his or her license to be used to qualify one or more305
363363 business organizations, including where such qualifying agent for a person engaged in306
364364 general contracting does not actually possess and exercise the power and authority307
365365 required of a qualifying agent under paragraph (7) of Code Section 43-41-2 and Code308
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368368 Section Code Sections 43-41-2 and 43-41-9, such act constitutes prima-facie evidence of309
369369 an intent to evade the provisions of this chapter;310
370370 (5) Failing in any material respect to comply with the provisions of this chapter or311
371371 violating a rule, regulation, or lawful order of the board or its divisions;312
372372 (6) Abandoning a construction project in which the contractor who is the individual313
373373 license holder or a business organization for whom the license holder is a qualifying314
374374 agent is engaged or under contract as a residential or commercial general contractor. A315
375375 project may be presumed abandoned after 90 days if the contractor has ceased work on316
376376 or terminated performance on the project without just cause and without proper317
377377 notification to the owner, including the reason for the termination, cessation, or318
378378 abandonment;319
379379 (7) Signing a statement with respect to a project or contract falsely indicating that the320
380380 work is bonded; knowingly and falsely indicating by written statement issued to the321
381381 owner that payment has been made for all subcontracted work, labor, and materials and322
382382 for all materials furnished and installed which statement is reasonably relied upon and323
383383 actually results in a financial loss to the owner; or falsely indicating that workers'324
384384 compensation and general liability insurance are provided;325
385385 (8) Committing fraud or deceit in the practice of contracting, including falsely326
386386 advertising, representing, or holding himself or herself or an affiliated business327
387387 organization out as having a valid and current license under this chapter;328
388388 (9) Committing gross negligence, repeated or persistent negligence, or negligence329
389389 resulting in a significant danger to life or property;330
390390 (10) Proceeding on any job without obtaining applicable local building permits and331
391391 inspections;332
392392 (11) Using or attempting to use a license that has expired or has been suspended or333
393393 revoked;334
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396396 (12) Knowingly or intentionally engaging any subcontractor to perform work within the
397397 335
398398 scope of the general or residential construction contract which requires a license under336
399399 Chapter 14 of this title who does not possess a current and valid license for such work;337
400400 or
401401 338
402402 (13) Failing to satisfy within a reasonable time the terms of a final civil judgment339
403403 obtained against the licensee or the business organization qualified by the licensee340
404404 relating to the practice of the licensee's profession; or341
405405 (14) Knowingly entering into a contractual arrangement, whether oral or written, for or342
406406 otherwise permitting the use of his or her license issued under this chapter by an343
407407 individual who is not licensed in accordance with this chapter or by a business entity that344
408408 has not been authorized under the provisions of this chapter to lawfully engage in345
409409 contracting or perform the functions of a contractor."346
410410 SECTION 5.347
411411 All laws and parts of laws in conflict with this Act are repealed.348
412412 H. B. 635
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