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SENATE FLOOR VERSION
April 3, 2023
ENGROSSED HOUSE
BILL NO. 2858 By: Wallace of the House
and
Coleman of the Senate
An Act relating to the Construction Industries Board;
amending 59 O.S. 2021, Section 1000.2, which relates
to the recreation of the Board; amending regulated
industries; amending 59 O.S. 2021, Section 1000.4 ,
which relates to the po wers of the Board; amending
the scope of the Board; authorizing certain members
to make specific changes to meetings; altering
receipt of certain reports; modifying when certain
votes must occur; amending 59 O.S. 2021, Section
1000.4a, which relates to additional powers of the
Board; providing for sharing certain information
related to workforce; modifying certain contracting
ability; implementing reporting requirements for
certain funds; creating processes for reclaiming
lapsed funds; providing an effective date; and
declaring an emergency .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 59 O.S. 2021, Section 1000.2, is
amended to read as follows:
Section 1000.2 A. The Construction Industries Board is hereby
re-created to continue un til July 1, 2023, in accordance with the
provisions of the Oklahoma Sunset Law. The Boar d shall regulate the
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plumbing, electrical and mechanical trades, the building and
construction inspectors, the home inspectors, and the roofing
contractors through the powers and duties set fo rth in the
Construction Industrie s Board Act and in the respecti ve licensing or
registration acts for such tra des, or as otherwise provided by law.
B. 1. Beginning July 1, 2013, the Board shall be composed of
seven (7) members ap pointed by the Governor w ith the advice and
consent of the Senate, as follows:
a. two members shall have at least ten (10) years'
experience in the plumbing trade, of which one shall
be a plumbing contractor and one shall be a journeyman
plumber,
b. two members shall have at least ten (10) years'
experience in the electrical trade, of which on e shall
be an electrical contractor and one sh all be a
journeyman electrician,
c. two members shall have at least ten (10) years '
experience in the mechanical trade, o f which one shall
be a mechanical contractor and one shall be a
mechanical journeyman, an d
d. one member shall have at least ten (10) years'
experience as a building and construction inspector.
2. Members shall be appointed for staggered terms of four (4)
years, as designated by the Governor. Members shall cont inue in
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office until a successo r is appointed by the Governor. The Governor
shall fill all vacancies and unexpired terms in the same manner as
the original appointment of the member whose position is to be
filled. A member may be removed by the Governor at any time.
SECTION 2. AMENDATORY 59 O.S. 2021, Section 1000.4, is
amended to read as follows:
Section 1000.4 A. 1. Pursuant to and in compliance with
Article I of the Administrative Procedures Act, the Construction
Industries Board shall have the power to ad opt, amend, repeal, and
promulgate rules as ma y be necessary to regulate the plumbing,
electrical and mechanical trades, building and construction
inspectors and home inspectors. All rules promulgated by the Board
shall be reviewed and approved as provide d in subsection F of
Section 308 of Title 75 o f the Oklahoma Statutes.
2. The Board shall have the pow er to enforce the provisions of
the Construction Industries Boar d Act, The Plumbing License Law of
1955, the Oklahoma Inspector s Act, the Electrical Lice nse Act, the
Mechanical Licensing Act, the Home Inspection Licensing Act, and the
Roofing Contractor Re gistration Act, as provided in the respective
acts.
B. The Board shall have the following powers:
1. Exercise all incidental powers and duties which ar e
necessary to effectuate the provisions of Th e Plumbing License Law
of 1955, the Oklahoma Inspectors A ct, the Electrical License Act,
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the Mechanical Licensing Act, and the Home Inspection Licensing Act ,
and the Roofing Contractor Registration Act, includi ng but not
limited to authorizing the Board ch air, vice-chair, administrator,
or designee to determine good reason for and to cancel a scheduled
meeting or reschedule meetings of a licensing or registration act
advisory examining committee of the Board pur suant to state
requirements. Such canceling or rescheduling meetings authority
provided for in this section shall supersede all other meeting
scheduling requirement s for acts administered by the Board;
2. Serve as a code variance a nd appeals board for the t rades
and industries it regulates which do not have statutory code
variance and appeals boards;
3. Order or subpoena the attendance of witnesses, the
inspection of records and premises, and the production of relevant
books and papers for the investigation of matters that may come
before the Board;
4. Initiate disciplinary proceedings, request prosecut ion of
and initiate injunctive proceedings against any person who vi olates
any of the provisions of the The Plumbing License Law of 195 5, the
Oklahoma Inspectors Act, the Electrical License Act, the Mechanical
Licensing Act, and the Home Inspection Licensing A ct, and the
Roofing Contractor Registration Act ;
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5. Maintain an administrative staff including, but not limited
to, a Construction Industries Administrator whose appointment shall
be made as provided in Section 1000.6 of this title;
6. Establish and levy administrative fines for violations of
law or rule in the trades an d industries the Board licenses or
regulates or against any per son or entity denying the Board or its
representatives access to a job site for purposes of enforcing any
of the provisions of the The Plumbing License Law of 1955, the
Oklahoma Inspectors Act, the Electrical License Act, and the
Mechanical Licensing Act, the Home Inspection Licensing Act, or the
Roofing Contractor Registration Act; provided, however, the Board is
not authorized to in spect or issue admin istrative violations or
fines for public utili ties, public service corporations, intrastate
gas pipeline companies, gas gathering pip eline companies, gas
processing companies, rural electric associations, municipal
utilities or their su bsidiaries, chemical plants, gas processing
plants or petroleum re fineries where the entity uses their employees
or contractors to work on their own faci lities or equipment;
7. Direct such other expenditures as may be necessary in the
performance of its d uties including, but not limited to,
expenditures for office space , equipment, furnishings and contracts
for legal services. All expenditures shall be m ade pursuant to the
Oklahoma Central Purchasing Act; and
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8. Enforce provisions of the plumbing, electr ical and
mechanical codes as adopted by the Oklahoma Uniform Build ing Code
Commission pursuant to the Oklahoma Uniform Building C ode Commission
Act.
C. The Board shall account for all receipts and expenditures of
the monies of the Board, including annuall y preparing and publ ishing
a statement of receipts and expenditure s of the Board for each
fiscal year. The Board 's annual statement of receipts and
expenditures shall be audited by the State Auditor and Inspector or
an independent accounting firm in accor dance with the provi sions of
subsection B of Section 212 of Title 74 of the Oklahoma Statutes,
and the audit report shall be cert ified to the Governor of this
state to be true and correct, under oath, by the chair and vice-
chair of the Board. A copy of su ch certified report, if not already
available online, shall be delivered to the chairs of the respective
Senate and House of Representatives Committees h aving authority over
matters relating to business, labor and construction industry
licensing or regulation not later than F ebruary 1 each year.
D. The Board shall accou nt for all fines, penalties and fees
assessed and collected pursuant to the Administrat ive Procedures Act
or any rule promulgated for regulation of any industry and trade
under the authority of the Construction Industries Board. All
fines, penalties and f ees assessed for any violation of law or rule
shall be automatically reviewed and broug ht before the entire Board
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for consideration and vote not later than the last day of the
monthly quarter in ninety (90) days from which it was imposed. The
Construction Industries Administrator shall present to the Board a
written recommendation and summary for each case in which an
assessment of a fine, penalty or fee was imposed after
administrative proceedings. The Board shall consider the
recommendations for each case at the next meeting date and at such
meeting shall either vo te to affirm the recommendations or vote to
deny the recommendations and remand the case for further
administrative hearing, with or without instru ctions. No
administrative case shal l be delayed or continued by the Board after
being placed on an agenda fo r final Board review, except with the
consent of all parties. The licensee or persons affected by the
imposition of an administrative fine, penalt y or fee on final review
by the Board shall have all rights of appeal preserved pursuant to
the Administrative Procedures Act until final action by the Board.
E. The Construction Industries Board shall hear all appeals
timely made from an administrative r uling relating to an industry
and trade regulated by the Board; however, this appeal authority
shall not be in addition to the appeal process authorized by the
Administrative Procedures Act. Any ruling by the Board from an
administrative hearing may be fu rther appealed to the district court
of Oklahoma County. The district court, upon conclusion of an
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appeal from a Board ruling, shall be authorized to award reasonable
legal fees to the prevailing party.
SECTION 3. AMENDATORY 59 O.S. 2021, Section 1000.4a, is
amended to read as follows:
Section 1000.4a A. The Construction Industries Boar d shall
have the additional powers to:
1. Receive and convey information relating to the skilled
trades regulated by the Constru ction Industries Board including, but
not limited to, workforce development; and
2. Enter into contracts with the Oklahoma Dep artment of Career
and Technology Education for or any Oklahoma State Board of Career
and Technology Education fully accredited vocational or technical
school or system of education institution in the Sta te of Oklahoma
receiving state appropriation s and offering programs in secondary
and postsecondary instruction that provide electrical, mechanical,
plumbing or roofing trade coursework for any of the following
purposes, or combination thereof:
a. developing and implementing instructional courses on
Oklahoma statutes Statutes and rules that govern the
electrical, mechanical, plumbing and roofing trades,
which courses can be in conjunction with instruction
in performing trade w ork or instruction on statewide -
adopted trade codes, or both, for the advancement of
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the electrical, mechanical, plumbing and roofing
trades, or
b. developing and implementing a workforce development
program that will create interest in the pursuit of a
skilled trade career. The workforce develo pment
program may consist of, but is not lim ited to, use of
the Internet, community and school presentations, and
research and instruction on the electrical,
mechanical, plumbing and roofing trades.
B. All contracts with the Oklahoma Department of Career and
Technology Education pursuant to this section shall be approved by
the Construction Industries Board in accordance with the Oklahoma
Open Meeting Act. Costs of the contracts with the Oklahoma
Department of Career and Technology Education for education and
workforce development programs shall be paid from the Skilled Trade
Education and Workforce Development Fund established herein and
funded by administrative fines or penalties as described in this
section. Applications for proposals are to be su bmitted to the
Board on forms provided requiring sufficient justi fication and
information to evaluate costs, return on investment, value, and
viability of the proposal. Any contracts will include the
requirement that the recipient of the funds will , upon the
completion of the contract, provide a written report to the Board
providing an accounting of expenditures, describing an explanation
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of the funds used for the services provided and the success of
outreach demonstrating a return on the investment including , but not
limited to, an accounting of accomplishments.
C. Fines or penalties collected by the Board and deposited in
the Oklahoma Mechanical Licensing Revolving Fund, the Electrical
Revolving Fund, the Plumbing Licensing Revolving Fund and the
Roofing Contractor Registration Revolving Fund may be transferred to
the Skilled Trade Education and Workforce Development Fund created
in subsection E of this section for the following purposes:
1. To develop instructional materia ls on Oklahoma laws,
statutes and rules, as they relate to the plumbing, mechanical,
electrical and roofing trades and state licensing standards;
2. To cover the cost of equipment, materials, personnel and any
other costs of developing and implementing th e trade curriculum; and
3. To cover the cost of equipment, materials, personnel and any
other costs of developing and implementing the workforce development
program used to promote the plumbing, mechanical, electrical and
roofing trades as a career in Okl ahoma.
D. The Skilled Trade Education and Workforce Development Fund
monies shall be used only for t he advancement of trade-related
education and workforce development, and only if available based
upon statutory limitations.
E. 1. There is hereby create d in the State Treasury a
revolving fund for the Construction Industries Board to be
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designated the "Skilled Trade Education and Workforce Development
Fund". The fund shall be a continuing fund, not subject to fiscal
year limitations. The fund shall cons ist of an annual transfer of
fully adjudicated fine revenue received in the Oklahoma Mechanical
Licensing Revolving Fund, Electrical Revolving Fund, Plumbing
Licensing Revolving Fund or Roofing Contractor Registration
Revolving Fund as determined pursuant to this section. Funds may be
transferred only from the prior fiscal year.
2. If actual receipts, n ot including fine receipts, exceed
actual expenses and outstanding encumbrances, then one hundred
percent (100%) of all fully adjudicated fine revenue rece ived shall
be transferred from each sp ecific trade revolving fund: the
Oklahoma Mechanical Licensing Revolving Fund, Electrical Revolving
Fund, Plumbing Licensing Revolving Fund or Roofing Contractor
Registration Revolving Fund.
3. If at any time the rec eipts in the Oklahoma Mechanical
Licensing Revolving Fund, Electrical Revolving Fund, Plumbing
Licensing Revolving Fund or Roofing Contractor Registration
Revolving Fund, not including fine receipts, are less than actual
expenses and outstanding encumbranc es, then the difference of fine
receipts over actual expenses and outstanding encumbrances, if any,
shall be transferred.
4. If at any time the annual receipts in the Oklahoma
Mechanical Licensing Revolving Fund, Electrical Revolving Fund,
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Plumbing Licensing Revolving Fund or Roofing Contract or Registration
Revolving Fund, including fine receipts, are le ss than the actual
expenses and outstanding encumbrances, there shall be no transfer of
funds for that period.
5. All monies accruing to the credit of the Skilled Trade
Education and Workforce Development Fund may be budgeted and
expended by the Construct ion Industries Board for workforce
development as it relates to the skilled trades and to contract for
the services identified in Section 1000.4 of Title 5 9 of the
Oklahoma Statutes or this act. Expenditures from the fund shall be
made upon warrants issue d by the State Treasurer against claims
filed as prescribed by law with the Director of the Office of
Management and Enterprise Services for approval and p ayment.
6. All unexpended or outstanding Skilled Trade Education and
Workforce Development F unds from any written agreement where work or
services have not been previously approved by specific quote or cost
estimate and have not been performed within eighteen (18) months of
the date the agreement was signed are hereby released from the
agreement and are available for future agreements approved by the
Board pursuant to this act, except for specific quotes, estimates,
or invoices that previously have been app roved for payment,
performance has been initiated, and completed within twenty-four
(24) months of the signed agreement.
SECTION 4. This act shall become effective July 1, 2023.
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SECTION 5. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE
April 3, 2023 - DO PASS