PRINTER'S NO. 2755
No. 2077 Session of 2001
INTRODUCED BY VEON, BELFANTI, BELARDI, FRANKEL, DALEY, SURRA,
WOJNAROSKI, ROONEY, LEVDANSKY, TRICH, LAUGHLIN, CAWLEY,
JOSEPHS, COSTA, TANGRETTI, DeLUCA, HARHAI, READSHAW, CURRY,
RIEGER, MELIO, STURLA, TRELLO, HORSEY, KIRKLAND, WASHINGTON,
WALKO AND JAMES, OCTOBER 24, 2001
REFERRED TO COMMITTEE ON PROFESSIONAL LICENSURE,
OCTOBER 24, 2001
AN ACT
1 Providing for the licensing and regulation of contractors and
2 for penalties.
3 TABLE OF CONTENTS
4 Section 1. Short title.
5 Section 2. Legislative purpose.
6 Section 3. Exemptions.
7 Section 4. Definitions.
8 Section 5. Construction Industry Licensing Board.
9 Section 6. Rulemaking authority.
10 Section 7. Fees.
11 Section 8. Licensure by examination.
12 Section 9. Qualifications for practice and restrictions.
13 Section 10. Medical gas certification.
14 Section 11. Evidence of workers' compensation coverage.
15 Section 12. Certification and registration.
16 Section 13. Inactive and delinquent status and renewal and
1 cancellation notices.
2 Section 14. Registration and specialty contractors.
3 Section 15. Certification of registered contractors and
4 grandfathering provisions.
5 Section 16. Business organizations and qualifying agents.
6 Section 17. Responsibilities.
7 Section 18. Emergency registration upon death of contractor.
8 Section 19. Business records requirements, address of record
9 and service.
10 Section 20. Moneys received by contractors.
11 Section 21. Prohibitions and penalties.
12 Section 22. Contracts performed by unlicensed contractors
13 unenforceable.
14 Section 23. Disciplinary proceedings.
15 Section 24. Unlicensed contracting, notice of noncompliance,
16 fine, authority to issue or receive a building
17 permit and World Wide Web site.
18 Section 25. Applicability.
19 Section 26. Prohibited acts by unlicensed principals,
20 investigation, hearing and penalties.
21 Section 27. Pollutant storage systems specialty contractors,
22 certification and restrictions.
23 Section 28. Construction Industries Recovery Fund.
24 Section 29. Conditions for recovery and eligibility.
25 Section 30. Board powers relating to recovery.
26 Section 31. Duty of contractor to notify residential property
27 owner of recovery fund.
28 Section 32. Payment from fund.
29 Section 44. Effective date.
30 The General Assembly of the Commonwealth of Pennsylvania
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1 hereby enacts as follows:
2 Section 1. Short title.
3 This act shall be known and may be cited as the Construction
4 Contracting Act.
5 Section 2. Legislative purpose.
6 It is the intent of the General Assembly and the purpose of
7 this act to regulate the construction industry in the interest
8 of public health, safety and welfare.
9 Section 3. Exemptions.
10 This act shall not apply to:
11 (1) Contractors who work on bridges, roads, streets,
12 highways or railroads and services incidental thereto. The
13 board, in agreement with the Department of Transportation
14 shall define "services incidental thereto" for the purposes
15 of this paragraph only.
16 (2) Any employee of a certificate holder or registrant
17 who is acting within the scope of the license held by that
18 certificate holder or registrant and with the knowledge and
19 permission of the licenseholder. This act shall apply to
20 employees if the employer is not a certificate holder or
21 registrant in that type of contracting and the employee
22 performs any of the following:
23 (i) holds himself of his employer out to be licensed
24 or qualified by a licensee;
25 (ii) leads the consumer to believe that the employee
26 has an ownership or management interest in the company;
27 or
28 (iii) performs any of the acts which constitute
29 contracting.
30 (3) An authorized employee of the United States, the
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1 Commonwealth or any of its political subdivisions, except
2 school boards and community colleges, while providing
3 construction in his capacity as an employee.
4 (4) An officer appointed by a court when he is acting
5 within the scope of his office as defined by law or court
6 order.
7 (5) Public utilities on construction, maintenance and
8 development work performed by their employees, which work,
9 including, but not limited to, work on bridges, roads,
10 streets, highways or railroads, is incidental to their
11 business.
12 (6) The sale or installation of any finished products,
13 materials or articles of merchandise that are not fabricated
14 into and do not become a permanent fixed part of the
15 structure. This paragraph shall not exempt inground spas and
16 swimming pools that involve excavation, plumbing, chemicals
17 or wiring of any appliance without a factory-installed
18 electrical cord and plug. This section shall not limit the
19 exemptions provided in paragraph (7).
20 (7) Owners of property when acting as their own
21 contractor and providing direct, onsite supervision
22 themselves of all work not performed by licensed contractors,
23 when building or improving farm outbuildings or one-family or
24 two-family residences on such property for the occupancy or
25 use of such owners and not offered for sale or lease, or
26 building or improving commercial buildings, at a cost not to
27 exceed $25,000, on such property for the occupancy or use of
28 such owners and not offered for sale or lease. In an action
29 brought under this act, proof of the sale or lease, or
30 offering for sale or lease, of any such structure by the
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1 owner-builder within one year after completion of same
2 creates a presumption that the construction was undertaken
3 for purposes of sale or lease. This paragraph does not exempt
4 any person who is employed by or has a contract with such
5 owner and who acts in the capacity of a contractor. The owner
6 may not delegate the owner's responsibility to directly
7 supervise all work to any other person unless that person is
8 registered or certified under this act and the work being
9 performed is within the scope of that person's license. For
10 the purposes of this paragraph the term "owners of property"
11 includes the owner of a mobile home situated on a leased lot.
12 To qualify for exemption under this paragraph, an owner must
13 personally appear and sign the building permit application.
14 The local permitting agency shall provide the person with a
15 disclosure statement in substantially the following form:
16 DISCLOSURE STATEMENT
17 State law requires construction to be done by licensed
18 contractors. You have applied for a permit under an exemption
19 to that law. The exemption allows you, as the owner of your
20 property, to act as your own contractor with certain
21 restrictions even though you do not have a license. You must
22 provide direct, onsite supervision of the construction
23 yourself. You may build or improve a one-family or two-family
24 residence or a farm outbuilding. You may also build or
25 improve a commercial building, provided your costs do not
26 exceed $25,000. The building or residence must be for your
27 own use or occupancy. It may not be built or substantially
28 improved for sale or lease. If you sell or lease a building
29 you have built or substantially improved yourself within one
30 year after the construction is complete, the law will presume
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1 that you built or substantially improved it for sale or
2 lease, which is a violation of this exemption. You may not
3 hire an unlicensed person to act as your contractor or to
4 supervise people working on your building. It is your
5 responsibility to make sure that people employed by you have
6 licenses required by State law and by county or municipal
7 licensing ordinances. You may not delegate the responsibility
8 for supervising work to a licensed contractor who is not
9 licensed to perform the work being done. Any person working
10 on your building who is not licensed must work under your
11 direct supervision and must be employed by you, which means
12 that you must deduct F.I.C.A. and withholding tax and provide
13 workers' compensation for that employee, all as prescribed by
14 law. Your construction must comply with all applicable laws,
15 ordinances, building codes and zoning regulations.
16 (8) Any construction, alteration, improvement or repair
17 carried on within the limits of any site the title to which
18 is in the United States or with respect to which Federal law
19 supersedes this act.
20 (9) Any work or operation of a casual, minor or
21 inconsequential nature in which the aggregate contract price
22 for labor, materials and all other items is less than $1,000,
23 but this exemption shall not apply:
24 (i) If the construction, repair, remodeling or
25 improvement is a part of a larger or major operation,
26 whether undertaken by the same or a different contractor,
27 or in which a division of the operation is made in
28 contracts of amounts less than $1,000 for the purpose of
29 evading this act.
30 (ii) To a person who advertises that he is a
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1 contractor or otherwise represents that he is qualified
2 to engage in contracting.
3 (10) Any construction or operation incidental to the
4 construction or repair of irrigation and drainage ditches,
5 regularly constituted irrigation districts or reclamation
6 districts or clearing or other work on the land in rural
7 districts for fire prevention purposes or otherwise except
8 when performed by a licensee.
9 (11) A registered architect or engineer acting within
10 the scope of his or her practice or any person exempted by
11 the law regulating architects and engineers.
12 (12) Any person who only furnishes materials or supplies
13 without fabricating them into or consuming them in the
14 performance of the work of the contractor.
15 (13) Any person who sells, services or installs heating
16 or air-conditioning units which have a capacity no greater
17 than three tons or 36,000 BTUs, which have no ducts and which
18 have a factory-installed electrical cord and plug.
19 (14) The installation and maintenance of water
20 conditioning units for domestic, commercial or industrial
21 purposes by operators of water conditioning services. No
22 political subdivision of this Commonwealth may adopt an
23 ordinance, rule or regulation which requires such an operator
24 to become licensed, certified or registered as a plumber or
25 which otherwise prevents the installation and maintenance of
26 such water conditioning units by an operator.
27 (15) An architect or landscape architect or an engineer
28 who offers or renders design-build services which may require
29 the services of a contractor certified or registered pursuant
30 to the provisions of this act, as long as the contractor
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1 services to be performed under the terms of the design-build
2 contract are offered and rendered by a certified or
3 registered general contractor in accordance with this act.
4 (16) Contracting for repair, maintenance, remodeling or
5 improvement by any person while acting as the owner's agent,
6 where all work requiring a contractor is performed by a
7 contractor who has a current, valid certificate or
8 registration issued under this act to perform such work and
9 where the aggregate contract for labor, materials and all
10 other items is less than $5,000; however, this exemption does
11 not apply:
12 (i) If the maintenance, repair, remodeling or
13 improvement is a part of a larger or major operation,
14 whether undertaken by the same or a different contractor
15 or in which a division of the operation is made in
16 contracts of amounts less than $5,000 for the purpose of
17 evading this act or otherwise.
18 (ii) To a person who advertises that he is qualified
19 to engage in contracting.
20 (17) Any one-family, two-family or three-family
21 residence constructed by Habitat for Humanity International,
22 Inc., or its local affiliates. Habitat for Humanity
23 International, Inc., or its local affiliates must:
24 (i) Obtain all necessary building permits.
25 (ii) Obtain all required building code inspections.
26 (iii) Provide for supervision of all work by an
27 individual with construction experience.
28 (18) The sale, delivery, assembly or tie-down of
29 prefabricated portable sheds that are not more than 250
30 square feet in interior size and are not intended for use as
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1 a residence or as living quarters.
2 Section 4. Definitions.
3 The following words and phrases when used in this act shall
4 have the meanings given to them in this section unless the
5 context clearly indicates otherwise:
6 "Arbitration." A process whereby a neutral third person or
7 panel, called an arbitrator or arbitration panel, considers the
8 facts and arguments presented by the parties and renders a
9 decision which is binding on the parties.
10 "Board." The Construction Industry Licensing Board
11 established in section 5.
12 "Building contractor." A contractor whose services are
13 limited to construction of commercial buildings and single-
14 dwelling or multiple-dwelling residential buildings, which
15 commercial or residential buildings do not exceed three stories
16 in height, and accessory use structures in connection therewith
17 or a contractor whose services are limited to remodeling, repair
18 or improvement of any size building if the services do not
19 affect the structural members of the building.
20 "Business organization." Any partnership, corporation,
21 business trust, joint venture or other legal entity which
22 engages or offers to engage in the business of contracting or
23 acts as a contractor as defined in this section.
24 "Certificate." A certificate of competency issued by the
25 Department of Labor and Industry as provided in this act.
26 "Certification." The act of obtaining or holding a
27 certificate of competency from the Department of Labor and
28 Industry as provided in this act.
29 "Certified contractor." Any contractor who possesses a
30 certificate of competency issued by the Department of Labor and
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1 Industry and who shall be allowed to contract in any
2 jurisdiction in this Commonwealth without being required to
3 fulfill the competency requirements of that jurisdiction.
4 "Class A air-conditioning contractor." A contractor whose
5 services are unlimited in the execution of contracts requiring
6 the experience, knowledge and skill to install, maintain,
7 repair, fabricate, alter, extend or design, when not prohibited
8 by law, central air-conditioning, refrigeration, heating and
9 ventilating systems, including duct work in connection with a
10 complete system only to the extent such duct work is performed
11 by the contractor as is necessary to make complete an air-
12 distribution system, boiler and unfired pressure vessel systems,
13 and all appurtenances, apparatus or equipment used in connection
14 therewith, and any duct cleaning and equipment sanitizing which
15 requires at least a partial disassembling of the system; to
16 install, maintain, repair, fabricate, alter, extend or design,
17 when not prohibited by law, piping, insulation of pipes, vessels
18 and ducts, pressure and process piping and pneumatic control
19 piping; to replace, disconnect or reconnect power wiring on the
20 load side of the dedicated existing electrical disconnect
21 switch; to install, disconnect and reconnect low-voltage
22 heating, ventilating and air-conditioning control wiring; and to
23 install a condensate drain from an air-conditioning unit to an
24 existing safe waste or other approved disposal other than a
25 direct connection to a sanitary system. The scope of work for
26 such contractor shall also include any excavation work
27 incidental thereto, but shall not include any work such as
28 liquefied petroleum or natural gas fuel lines within buildings,
29 potable water lines or connections thereto, sanitary sewer
30 lines, swimming pool piping and filters or electrical power
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1 wiring.
2 "Class B air-conditioning contractor." A contractor whose
3 services are limited to 25 tons of cooling and 500,000 BTUs of
4 heating in any one system in the execution of contracts
5 requiring the experience, knowledge and skill to install,
6 maintain, repair, fabricate, alter, extend or design, when not
7 prohibited by law, central air-conditioning, refrigeration,
8 heating and ventilating systems, including duct work in
9 connection with a complete system only to the extent such duct
10 work is performed by the contractor as is necessary to make
11 complete an air-distribution system being installed under this
12 classification, and any duct cleaning and equipment sanitizing
13 which requires at least a partial disassembling of the system;
14 to install, maintain, repair, fabricate, alter, extend or
15 design, when not prohibited by law, piping and insulation of
16 pipes, vessels and ducts; to replace, disconnect or reconnect
17 power wiring on the load side of the dedicated existing
18 electrical disconnect switch; to install, disconnect and
19 reconnect low-voltage heating, ventilating and air-conditioning
20 control wiring; and to install a condensate drain from an air-
21 conditioning unit to an existing safe waste or other approved
22 disposal other than a direct connection to a sanitary system.
23 The scope of work for such contractor shall also include any
24 excavation work incidental thereto but shall not include any
25 work such as liquefied petroleum or natural gas fuel lines
26 within buildings, potable water lines or connections thereto,
27 sanitary sewer lines, swimming pool piping and filters or
28 electrical power wiring.
29 "Class C air-conditioning contractor." A contractor whose
30 business is limited to the servicing of air-conditioning,
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1 heating or refrigeration systems, including any duct cleaning
2 and equipment sanitizing which requires at least a partial
3 disassembling of the system.
4 "Commercial pool/spa contractor." A contractor whose scope
5 of work involves, but is not limited to, the construction,
6 repair and servicing of any swimming pool or hot tub or spa,
7 whether public, private or otherwise, regardless of use. The
8 scope of work includes the installation, repair or replacement
9 of existing equipment, any cleaning or equipment sanitizing
10 which requires at least a partial disassembling, excluding
11 filter changes, and the installation of new pool/spa equipment,
12 interior finishes, the installation of package pool heaters, the
13 installation of all perimeter piping and filter piping and the
14 construction of equipment rooms or housing for pool/spa
15 equipment, and also includes the scope of work of a swimming
16 pool/spa servicing contractor. The scope of such work does not
17 include direct connections to a sanitary sewer system or to
18 potable water lines. The installation, construction,
19 modification or replacement of equipment permanently attached to
20 and associated with the pool or spa for the purpose of water
21 treatment or cleaning of the pool or spa requires licensure;
22 however, the usage of such equipment for the purposes of water
23 treatment or cleaning shall not require licensure unless the
24 usage involves construction, modification or replacement of such
25 equipment. Water treatment that does not require such equipment
26 does not require a license. In addition, a license shall not be
27 required for the cleaning of the pool or spa in any way that
28 does not affect the structural integrity of the pool or spa or
29 its associated equipment.
30 "Contracting." Except as exempted in this act, engaging in
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1 business as a contractor and including, but not limited to,
2 performance of any of the acts as set forth in the definition of
3 "contractor." The attempted sale of contracting services and the
4 negotiation or bid for a contract on these services also
5 constitutes contracting. If the services offered require
6 licensure or agent qualification, the offering, negotiation for
7 a bid or attempted sale of these services requires the
8 corresponding licensure. However, the term "contracting" shall
9 not extend to an individual, partnership, corporation, trust or
10 other legal entity that offers to sell or sells completed
11 residences on property on which the individual or business
12 entity has any legal or equitable interest if the services of a
13 qualified contractor certified or registered pursuant to the
14 requirements of this act have been or will be retained for the
15 purpose of constructing such residences.
16 "Contractor." The person who is qualified for and shall only
17 be responsible for the project contracted for. Except as
18 exempted in this act, the person who, for compensation,
19 undertakes to, submits a bid to or does himself or by others
20 construct, repair, alter, remodel, add to, demolish, subtract
21 from or improve any building or structure, including related
22 improvements to real estate, for others or for resale to others
23 and whose job scope is substantially similar to the job scope
24 described in one of the subsequent paragraphs of this
25 definition. For the purposes of regulation under this
26 definition, "demolish" applies only to demolition of steel tanks
27 over 50 feet in height; towers over 50 feet in height; other
28 structures over 50 feet in height, other than buildings or
29 residences over three stories tall; and buildings or residences
30 over three stories tall. Contractors shall be subdivided into
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1 two divisions: Division I and Division II. Division I
2 contractors shall consist of building contractor, general
3 contractor and residential contractor. Division II contractors
4 shall consist of sheet metal contractor, roofing contractor,
5 Class A air-conditioning contractor, Class B air-conditioning
6 contractor, Class C air-conditioning contractor, mechanical
7 contractor, commercial pool/spa contractor, residential pool/spa
8 contractor, swimming pool/spa servicing contractor, plumbing
9 contractor, underground utility and excavation contractor, solar
10 contractor, pollutant storage systems contractor, specialty
11 contractor, certified contractor and registered contractor.
12 "Department." The Department of Labor and Industry of the
13 Commonwealth.
14 "Financially responsible officer." A person other than the
15 primary qualifying agent who, with the approval of the board,
16 assumes personal responsibility for all financial aspects of the
17 business organization.
18 "Fund." The Construction Industries Recovery Fund
19 established in section 28.
20 "General contractor." A contractor whose services are
21 unlimited as to the type of work which he or she may do, who may
22 contract for any activity requiring licensure under this act,
23 and who may perform any work requiring licensure under this act,
24 except as otherwise provided in section 9.
25 "Initial issuance." The first time a certificate or
26 registration is granted to an individual or business
27 organization, including the first time an individual becomes a
28 qualifying agent for that business organization and the first
29 time a business organization is qualified by that individual.
30 "Local construction regulation board." A board, composed of
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1 not fewer than three residents of a county or municipality,
2 which the governing body of that county or municipality may
3 create and appoint to maintain the proper standard of
4 construction of that county or municipality.
5 "Mechanical contractor." A contractor whose services are
6 unlimited in the execution of contracts requiring the
7 experience, knowledge and skill to install, maintain, repair,
8 fabricate, alter, extend or design, when not prohibited by law,
9 central air-conditioning, refrigeration, heating and ventilating
10 systems, including duct work in connection with a complete
11 system only to the extent such duct work is performed by the
12 contractor as is necessary to make complete an air-distribution
13 system, boiler and unfired pressure vessel systems, lift station
14 equipment and piping, and all appurtenances, apparatus or
15 equipment used in connection therewith, and any duct cleaning
16 and equipment sanitizing which requires at least a partial
17 disassembling of the system; to install, maintain, repair,
18 fabricate, alter, extend or design, when not prohibited by law,
19 piping, insulation of pipes, vessels and ducts, pressure and
20 process piping, pneumatic control piping, gasoline tanks and
21 pump installations and piping for same, standpipes, air piping,
22 vacuum line piping, oxygen lines, nitrous oxide piping, ink and
23 chemical lines, fuel transmission lines and natural gas fuel
24 lines within buildings; to replace, disconnect or reconnect
25 power wiring on the load side of the dedicated existing
26 electrical disconnect switch; to install, disconnect and
27 reconnect low voltage heating, ventilating and air-conditioning
28 control wiring; and to install a condensate drain from an air-
29 conditioning unit to an existing safe waste or other approved
30 disposal other than a direct connection to a sanitary system.
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1 The scope of work for such contractor shall also include any
2 excavation work incidental thereto but shall not include any
3 work such as liquefied petroleum gas fuel lines within
4 buildings, potable water lines or connections thereto, sanitary
5 sewer lines, swimming pool piping and filters or electrical
6 power wiring.
7 "Plumbing contractor." A contractor whose contracting
8 business consists of the execution of contracts requiring the
9 experience, financial means, knowledge and skill to install,
10 maintain, repair, alter, extend or when not prohibited by law,
11 design plumbing. A plumbing contractor may install, maintain,
12 repair, alter, extend or, when not prohibited by law, design the
13 following without obtaining any additional local regulatory
14 license, certificate or registration; sanitary drainage or storm
15 drainage facilities; venting systems; public or private water
16 supply systems; septic tanks; drainage and supply wells;
17 swimming pool piping; irrigation systems; or solar heating water
18 systems and all appurtenances, apparatus or equipment used in
19 connection therewith, including boilers and pressure process
20 piping and including the installation of water, natural gas,
21 excluding liquid petroleum gases, and storm and sanitary sewer
22 lines; and water and sewer plants and substations. The scope of
23 work of the plumbing contractor also includes the design, when
24 not prohibited by law, and installation, maintenance, repair,
25 alteration or extension of air-piping, vacuum line piping,
26 oxygen line piping, nitrous oxide piping and all related medical
27 gas systems; fire line standpipes and fire sprinklers to the
28 extent authorized by law; ink and chemical lines; fuel oil and
29 gasoline piping and tank and pump installation except bulk
30 storage plants; and pneumatic control piping systems, all in
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1 such a manner as to comply with all plans, specifications,
2 codes, laws and regulations applicable. The scope of work of the
3 plumbing contractor shall apply to private property and public
4 property, shall include any excavation work incidental thereto
5 and shall include the work of the specialty plumbing contractor.
6 Such contractor shall subcontract, with a qualified contractor
7 in the field concerned, all other work incidental to the work
8 but which is specified herein as being the work of a trade other
9 than that of a plumbing contractor. Nothing in this definition
10 shall be construed to require certification or registration
11 under this act of any authorized employee of a public natural
12 gas utility or of a private natural gas utility regulated by the
13 Pennsylvania Public Utility Commission when disconnecting and
14 reconnecting water lines in the servicing or replacement of an
15 existing water heater.
16 "Pollutant storage systems contractor." A contractor whose
17 services are limited to, and who has the experience, knowledge
18 and skill to install, maintain, repair, alter, extend or design,
19 when not prohibited by law, and use materials and items used in
20 the installation, maintenance, extension and alteration of,
21 pollutant storage tanks.
22 "Pollutant storage tank." A tank, together with associated
23 piping or dispensing facilities, which is or could be used for
24 the storage or supply of pollutants.
25 "Primary qualifying agent." A person who possesses the
26 requisite skill, knowledge and experience and has the
27 responsibility, to supervise, direct, manage and control the
28 contracting activities of the business organization with which
29 he is connected, who has the responsibility to supervise,
30 direct, manage and control construction activities on a job for
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1 which he has obtained the building permit, and whose technical
2 and personal qualifications have been determined by
3 investigation and examination as provided in this act, as
4 attested by the department.
5 "Registered contractor." Any contractor who has registered
6 with the Department of Labor and Industry pursuant to fulfilling
7 the competency requirements in the jurisdiction for which the
8 registration is issued. Registered contractors may contract only
9 in such jurisdictions.
10 "Registration." Registration with the Department of Labor
11 and Industry as provided in this act.
12 "Residential contractor." A contractor whose services are
13 limited to construction, remodeling, repair or improvement of
14 one-family, two-family or three-family residences not exceeding
15 two habitable stories above no more than one uninhabitable story
16 and accessory use structures in connection therewith.
17 "Residential pool/spa contractor." A contractor whose scope
18 of work involves, but is not limited to, the construction,
19 repair and servicing of any residential swimming pool or hot tub
20 or spa, regardless of use. The scope of work includes the
21 installation, repair or replacement of existing equipment, any
22 cleaning or equipment sanitizing which requires at least a
23 partial disassembling, excluding filter changes, and the
24 installation of new pool/spa equipment, interior finishes the
25 installation of package pool heaters, the installation of all
26 perimeter piping and filter piping and the construction of
27 equipment rooms or housing for pool/spa equipment and also
28 includes the scope of work of a swimming pool/spa servicing
29 contractor. The scope of such work does not include direct
30 connections to a sanitary sewer system or to potable water
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1 lines. The installation, construction, modification or
2 replacement of equipment permanently attached to and associated
3 with the pool or spa for the purpose of water treatment or
4 cleaning of the pool or spa requires licensure; however, the
5 usage of such equipment for the purposes of water treatment or
6 cleaning shall not require licensure unless the usage involves
7 construction, modification or replacement of such equipment.
8 Water treatment that does not require such equipment does not
9 require a license. In addition, a license shall not be required
10 for the cleaning of the pool or spa in any way that does not
11 affect the structural integrity of the pool or spa or its
12 associated equipment.
13 "Roofing contractor." A contractor whose services are
14 unlimited in the roofing trade and who has the experience,
15 knowledge and skill to install, maintain, repair, alter, extend
16 or design, when not prohibited by law, and use materials and
17 items used in the installation, maintenance, extension and
18 alteration of all kinds of roofing, waterproofing and coating,
19 except when coating is not represented to protect, repair,
20 waterproof, stop leaks or extend the life of the roof.
21 "Secondary qualifying agent." A person who possesses the
22 requisite skill, knowledge and experience and has the
23 responsibility to supervise, direct, manage and control
24 construction activities on a job for which he has obtained a
25 permit and whose technical and personal qualifications have been
26 determined by investigation and examination as provided in this
27 act, as attested by the Department of Labor and Industry.
28 "Sheet metal contractor." A contractor whose services are
29 unlimited in the sheet metal trade and who has the experience,
30 knowledge and skill necessary for the manufacture, fabrication,
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1 assembling, handling, erection, installation, dismantling,
2 conditioning, adjustment, insulation, alteration, repair,
3 servicing or design when not prohibited by law, of ferrous or
4 nonferrous metal work of U.S. No. 10 gauge or its equivalent or
5 lighter gauge and of other materials, including, but not limited
6 to, fiberglass, used in lieu thereof and of air-handling
7 systems, including the setting of air-handling equipment and
8 reinforcement of same, the balancing of air-handling systems and
9 any duct cleaning and equipment sanitizing which requires at
10 least a partial disassembling of the system.
11 "Solar contractor." A contractor whose services consist of
12 the installation, alteration, repair, maintenance, relocation or
13 replacement of solar panels for potable solar water heating
14 systems, swimming pool solar heating systems and photovoltaic
15 systems and any appurtenances, apparatus or equipment used in
16 connection therewith, whether public, private, or otherwise,
17 regardless of use. A contractor, certified or registered
18 pursuant to the provisions of this act, is not required to
19 become a certified or registered solar contractor or to contract
20 with a solar contractor in order to provide any services
21 enumerated in this paragraph that are within the scope of the
22 services such contractors may render under this act.
23 "Specialty contractor." A contractor whose scope of work and
24 responsibility is limited to a particular phase of construction
25 and whose scope is limited to a subset of the activities
26 described in the categories established in one of the paragraphs
27 of this definition.
28 "Structural component." Any vertical or horizontal load-
29 bearing member of a structure which supports dead or live loads
30 in addition to its own weight and includes, but is not limited
20010H2077B2755 - 20 -
1 to, a foundation, an exterior or interior load-bearing wall, a
2 column, a column beam, a floor and a roof structure.
3 "Swimming pool/spa servicing contractor." A contractor whose
4 scope of work involves, but is not limited to, the repair and
5 servicing of any swimming pool or hot tub or spa, whether public
6 or private or otherwise, regardless of use. The scope of work
7 includes the repair or replacement of existing equipment, any
8 cleaning or equipment sanitizing which requires at least a
9 partial disassembling, excluding filter changes, and the
10 installation of new pool/spa equipment, interior refinishing,
11 the reinstallation or addition of pool heaters, the repair or
12 replacement of all perimeter piping and filter piping, the
13 repair of equipment rooms or housing for pool/spa equipment and
14 the substantial or complete draining of a swimming pool, or hot
15 tub or spa, for the purpose of any repair or renovation. The
16 scope of such work does not include direct connections to a
17 sanitary sewer system or to potable water lines. The
18 installation, construction, modification, substantial or
19 complete disassembly or replacement of equipment, permanently
20 attached to and associated with the pool or spa or the purpose
21 of water treatment or cleaning of the pool or spa requires
22 licensure; however, the usage of such equipment for the purpose
23 of water treatment or cleaning shall not require licensure
24 unless the usage involves construction, modification,
25 substantial or complete disassembly or replacement of such
26 equipment. Water treatment that does not require such equipment
27 does not require a license. In addition, a license shall not be
28 required for the cleaning of the pool or spa in any way that
29 does not affect the structural integrity of the pool or spa or
30 its associated equipment.
20010H2077B2755 - 21 -
1 "Tank." A container other than one which is aboveground and
2 either elevated or situated upon an impermeable surface or which
3 is located in an accessible underground area and either elevated
4 or situated upon an impermeable surface therein, in such manner
5 that any leak in such container may be readily detected.
6 "Underground utility and excavation contractor." A
7 contractor whose services are limited to the construction,
8 installation and repair, on public or private property, whether
9 accomplished through open excavations or through other means,
10 including, but not limited to, directional drilling, auger
11 boring, jacking and boring, trenchless technologies, wet and dry
12 taps, grouting and slip lining, of main sanitary sewer
13 collection systems, main water distribution systems, storm sewer
14 collection systems and the continuation of utility lines from
15 the main systems to a point of termination up to and including
16 the meter location for the individual occupancy, sewer
17 collection systems at property line on residential or single-
18 occupancy commercial properties or on multioccupancy properties
19 at manhole or wye lateral extended to an invert elevation as
20 engineered to accommodate future building sewers, water
21 distribution systems, or storm sewer collection systems at storm
22 sewer structures. However, an underground utility and excavation
23 contractor may install empty underground conduits in rights-of-
24 way, easements, platted rights-of-way in new site development
25 and sleeves for parking lot crossings no smaller than two inches
26 in diameter provided that each conduit system installed is
27 designed by a licensed professional engineer or an authorized
28 employee of a municipality, county or public utility and that
29 the installation of any such conduit does not include
30 installation of any conductor wiring or connection to an
20010H2077B2755 - 22 -
1 energized electrical system. An underground utility and
2 excavation contractor shall not install any piping that is an
3 integral part of a fire protection system beginning at the point
4 where the piping is used exclusively for such system.
5 Section 5. Construction Industry Licensing Board.
6 (a) Establishment.--There is hereby created within the
7 department the Construction Industry Licensing Board. Members
8 shall be appointed by the Governor, subject to confirmation by
9 the Senate. Members shall be appointed for four-year terms. A
10 vacancy on the board shall be filled for the unexpired portion
11 of the term in the same manner as the original appointment. No
12 member shall serve more than two consecutive four-year terms or
13 more than 11 years on the board.
14 (b) Members.--The board shall consist of 18 members, of
15 whom:
16 (1) four are primarily engaged in business as general
17 contractors;
18 (2) three are primarily engaged in business as building
19 contractors or residential contractors, however, at least one
20 building contractor and one residential contractor shall be
21 appointed;
22 (3) one is primarily engaged in business as a roofing
23 contractor;
24 (4) one is primarily engaged in business as a sheet
25 metal contractor;
26 (5) one is primarily engaged in business as an air-
27 conditioning contractor;
28 (6) one is primarily engaged in business as a mechanical
29 contractor;
30 (7) one is primarily engaged in business as a pool
20010H2077B2755 - 23 -
1 contractor;
2 (8) one is primarily engaged in business as a plumbing
3 contractor;
4 (9) one is primarily engaged in business as an
5 underground utility and excavation contractor;
6 (10) two are consumer members who are not and have never
7 been members or practitioners of a profession regulated by
8 the board or members of any closely related profession; and
9 (11) two are building officials of a municipality or
10 county.
11 (c) Certification.--To be eligible to serve, each contractor
12 member must have been certified by the board to operate as a
13 contractor in the category with respect to which the member is
14 appointed, be actively engaged in the construction business and
15 have been so engaged for a period of not less than five
16 consecutive years before the date of appointment. Each appointee
17 must be a citizen and resident of this Commonwealth.
18 (d) Meeting.--The Construction Industry Licensing Board
19 shall meet at least twice a year.
20 Section 6. Rulemaking authority.
21 The board has authority to adopt rules and regulations
22 necessary to implement the provisions of this act.
23 Section 7. Fees.
24 (a) Establishment.--The board shall establish reasonable
25 fees to be paid for applications, certification and renewal,
26 registration and renewal and recordmaking and recordkeeping. The
27 fees shall be established as follows:
28 (1) With respect to an applicant for a certificate, the
29 initial application fee may not exceed $150, and if an
30 examination cost is included in the application fee, the
20010H2077B2755 - 24 -
1 combined amount may not exceed $350. The initial
2 certification fee and the renewal fee may not exceed $200.
3 However, any applicant who seeks certification under this act
4 by taking a practical examination must pay as an examination
5 fee the actual cost incurred by the department in developing,
6 preparing, administering, scoring, score reporting and
7 evaluating the examination if the examination is conducted by
8 the department.
9 (2) With respect to an applicant for registration, the
10 initial application fee may not exceed $100, and the initial
11 registration fee and the renewal fee may not exceed $200.
12 (3) The board may establish delinquency fees not to
13 exceed the applicable renewal fee for renewal applications
14 made after the expiration date of the certificate or
15 registration.
16 (4) The board may establish a fee for transfer of a
17 certificate of authority from one business organization to
18 another not to exceed the applicable renewal fee.
19 (5) The board shall impose a renewal fee for an inactive
20 status certificate or registration, not to exceed the renewal
21 fee for an active status certificate or registration. Neither
22 the inactive certification fee nor the inactive registration
23 fee may exceed $50. The board may provide for a different fee
24 for inactive status where such status is sought by a building
25 code administrator, plans examiner or inspector who is
26 employed by a political subdivision and is not allowed by the
27 terms of such employment to maintain a certificate on active
28 status issued pursuant to this act.
29 (6) The board shall impose an additional late fee on a
30 delinquent status certificate holder or registrant when such
20010H2077B2755 - 25 -
1 certificate holder or registrant applies for active or
2 inactive status.
3 (7) The board shall impose an additional fee, not to
4 exceed the applicable renewal fee, which reasonably reflects
5 the costs of processing a certificate holder's or
6 registrant's request to change licensure status at any time
7 other than at the beginning of a licensure cycle.
8 (b) Adequacy.--The board shall establish fees that are
9 adequate to ensure the continued operation of the board. Fees
10 shall be based on department estimates of the revenue required
11 to implement this act with respect to the regulation of the
12 construction industry.
13 (c) Additional fees.--In addition to the fees provided in
14 subsection (a) for application and renewal for certification and
15 registration, all certificate holders and registrants must pay a
16 fee of $4 to the department at the time of application or
17 renewal. The funds must be transferred at the end of each
18 licensing period to the Department of Community and Economic
19 Development to fund projects relating to the building
20 construction industry or continuing education programs offered
21 to persons engaged in the building construction industry. The
22 board shall, at the time the funds are transferred, advise the
23 Department of Community and Economic Development on the most
24 needed areas of research or continuing education based on
25 significant changes in the industry's practices or on the most
26 common types of consumer complaints or on problems costing the
27 State or local governmental entities substantial waste. The
28 board's advice is not binding on the Department of Community and
29 Economic Development. The Department of Community and Economic
30 Development shall ensure the distribution of research reports
20010H2077B2755 - 26 -
1 and the availability of continuing education programs to all
2 segments of the building construction industry to which they
3 relate. The Department of Community and Economic Development
4 shall report to the board in October of each year, summarizing
5 the allocation of the funds by institution and summarizing the
6 new projects funded and the status of previously funded
7 projects.
8 Section 8. Licensure by examination.
9 (a) Certification.--Any person who desires to be certified
10 shall apply to the department in writing.
11 (b) Requirements.--A person shall be eligible for licensure
12 by examination if the person:
13 (1) is 18 years of age or older;
14 (2) is of good moral character; and
15 (3) meets eligibility requirements according to one of
16 the following criteria:
17 (i) Has received a baccalaureate degree from an
18 accredited four-year college in the appropriate field of
19 engineering, architecture or building construction and
20 has one year of proven experience in the category in
21 which the person seeks to qualify. For the purpose of
22 this subparagraph, a minimum of 2,000 person-hours shall
23 be used in determining full-time equivalency.
24 (ii) Has a total of at least four years of active
25 experience as a worker who has learned the trade by
26 serving an apprenticeship as a skilled worker who is able
27 to command the rate of a mechanic in the particular trade
28 or as a foreman who is in charge of a group of workers
29 and usually is responsible to a superintendent or a
30 contractor or his equivalent, provided, however, that at
20010H2077B2755 - 27 -
1 least one year of active experience shall be as a
2 foreman.
3 (iii) Has a combination of not less than one year of
4 experience as a foreman and not less than three years of
5 credits for any accredited college-level courses; has a
6 combination of not less than one year of experience as a
7 skilled worker, one year of experience as a foreman and
8 not less than two years of credits for any accredited
9 college-level courses; or has a combination of not less
10 than two years of experience as a skilled worker, one
11 year of experience as a foreman and not less than one
12 year of credits for any accredited college-level courses.
13 For the number of years of credits for any accredited
14 college-level courses, the applicant shall show
15 completion of an equal number of courses in the
16 appropriate field of engineering, architecture or
17 building construction. All junior college or community
18 college-level courses shall be considered accredited
19 college-level courses.
20 (iv) (A) An active certified residential contractor
21 is eligible to take the building contractors'
22 examination if he possesses a minimum of three years
23 of proven experience in the classification in which
24 he is certified.
25 (B) An active certified residential contractor
26 is eligible to take the general contractors'
27 examination if he possesses a minimum of four years
28 of proven experience in the classification in which
29 he is certified.
30 (C) An active certified building contractor is
20010H2077B2755 - 28 -
1 eligible to take the general contractors' examination
2 if he possesses a minimum of four years of proven
3 experience in the classification in which he is
4 certified.
5 (v) (A) An active certified air-conditioning Class
6 C contractor is eligible to take the air-conditioning
7 Class B contractors' examination if he possesses a
8 minimum of three years of proven experience in the
9 classification in which he is certified.
10 (B) An active certified air-conditioning Class C
11 contractor is eligible to take the air-conditioning
12 Class A contractors' examination if he possesses a
13 minimum of four years of proven experience in the
14 classification in which he is certified.
15 (C) An active certified air-conditioning Class B
16 contractor is eligible to take the air-conditioning
17 Class A contractors' examination if he possesses a
18 minimum of one year of proven experience in the
19 classification in which he is certified.
20 (vi) (A) An active certified swimming pool
21 servicing contractor is eligible to take the
22 residential swimming pool contractors' examination if
23 he possesses a minimum of three years of proven
24 experience in the classification in which he is
25 certified.
26 (B) An active certified swimming pool servicing
27 contractor is eligible to take the swimming pool
28 commercial contractors' examination if he possesses a
29 minimum of four years of proven experience in the
30 classification in which he is certified.
20010H2077B2755 - 29 -
1 (C) An active certified residential swimming
2 pool contractor is eligible to take the commercial
3 swimming pool contractors' examination if he
4 possesses a minimum of one year of proven experience
5 in the classification in which he is certified.
6 (D) An applicant is eligible to take the
7 swimming pool/spa servicing contractor examination if
8 he has satisfactorily completed 60 hours of
9 instruction in courses related to the scope of work
10 covered by that license and approved by the board and
11 has at least one year of proven experience related to
12 the scope of work of such a contractor.
13 (c) Refusal.--The board may refuse to certify an applicant
14 for failure to satisfy the requirement of good moral character
15 only if:
16 (1) there is a substantial connection between the lack
17 of good moral character of the applicant and the professional
18 responsibilities of a certified contractor; and
19 (2) the finding by the board of lack of good moral
20 character is supported by clear and convincing evidence.
21 (d) Statement.--When an applicant is found to be unqualified
22 for a certificate because of a lack of good moral character, the
23 board shall furnish the applicant a statement containing the
24 findings of the board, a complete record of the evidence upon
25 which the determination was based and a notice of the rights of
26 the applicant to a rehearing and appeal.
27 (e) Review committee.--The department shall ensure that a
28 sensitivity review committee has been established, including
29 representatives of various ethnic/minority groups. No question
30 found by this committee to be discriminatory against any
20010H2077B2755 - 30 -
1 ethnic/minority group shall be included in the examination.
2 Section 9. Qualifications for practice and restrictions.
3 (a) Competency.--Any person who desires to engage in
4 contracting on a Statewide basis shall as a prerequisite,
5 establish his competency and qualifications to be certified
6 pursuant to this act. To establish competency, a person shall
7 pass the appropriate examination approved by the board and
8 certified by the department. Any person who desires to engage in
9 contracting on other than a Statewide basis shall as a
10 prerequisite be registered pursuant to this act, unless exempted
11 by this act.
12 (b) Restriction.--No person who is not certified or
13 registered shall engage in the business of contracting in this
14 State. However, for purposes of complying with the provisions of
15 this act, a person who is not certified or registered may
16 perform construction work under the supervision of a person who
17 is certified or registered, provided that the work is within the
18 scope of the supervisor's license and provided that the person
19 being supervised is not engaged in construction work which would
20 require a license as a contractor under any of the categories
21 listed in section 4. This subsection does not affect the
22 application of any local construction licensing ordinances. To
23 enforce this subsection:
24 (1) The department shall issued a cease and desist order
25 to prohibit any person from engaging in the business of
26 contracting who does not hold the required certification or
27 registration for the work being performed under this act. For
28 the purpose of enforcing a cease and desist order, the
29 department may file a proceeding seeking issuance of an
30 injunction or a writ of mandamus against any person who
20010H2077B2755 - 31 -
1 violates any provision of such order.
2 (2) A county, municipality or local licensing board may
3 issue a cease and desist order to prohibit any person from
4 engaging in the business of contracting who does not hold the
5 required certification or registration for the work being
6 performed under this act.
7 (c) Subcontract.--A contractor shall subcontract all
8 electrical, mechanical, plumbing, roofing, sheet metal, swimming
9 pool and air-conditioning work unless such contractor holds a
10 State certificate or registration in the respective trade
11 category, however:
12 (1) A general, building or residential contractor,
13 except as otherwise provided in this act, shall be
14 responsible for any construction or alteration of a
15 structural component of a building or structure, and any
16 certified general contractor or certified underground utility
17 and excavation contractor may perform clearing and grubbing,
18 grading, excavation and other site work for any construction
19 project in this Commonwealth. Any certified building
20 contractor or certified residential contractor may perform
21 clearing and grubbing, grading, excavation and other site
22 work for any construction project in this Commonwealth,
23 limited to the lot on which any specific building is located.
24 (2) A general, building or residential contractor shall
25 not be required to subcontract the installation, or repair
26 made under warranty, of wood shingles, wood shakes or asphalt
27 or fiberglass shingle roofing materials on a new building of
28 his own construction.
29 (3) A general contractor shall not be required to
30 subcontract structural swimming pool work.
20010H2077B2755 - 32 -
1 (4) A general contractor, on new site development work,
2 site redevelopment work, mobile home parks and commercial
3 properties, shall not be required to subcontract the
4 construction of the main sanitary sewer collection system,
5 the storm collection system and the water distribution
6 system, not including the continuation of utility lines from
7 the mains to the buildings.
8 (5) A general contractor shall not be required to
9 subcontract the continuation of utility lines from the mains
10 in mobile home parks, and such continuations are to be
11 considered a part of the main sewer collection and main water
12 distribution systems.
13 (6) A solar contractor shall not be required to
14 subcontract minor electrical, mechanical, plumbing or roofing
15 work so long as the work is within the scope of the license
16 held by the solar contractor and where such work exclusively
17 pertains to the installation of residential solar energy
18 equipment as defined by the board.
19 (7) No general, building or residential contractor shall
20 act as, hold himself out to be or advertise himself to be a
21 roofing contractor unless he is certified or registered as a
22 roofing contractor.
23 (d) Exhibit to local officials.--When a certificate holder
24 desires to engage in contracting in any area of this
25 Commonwealth, as a prerequisite, he shall be required only to
26 exhibit to the local building official, tax collector or other
27 person in charge of the issuance of licenses and building
28 permits in the area, evidence of holding a current certificate
29 and to pay the fee for the occupational license and building
30 permit required of other persons.
20010H2077B2755 - 33 -
1 (e) Exception.--Notwithstanding the provisions of subsection
2 (d), a local construction regulation board may deny, suspend or
3 revoke the authority of a certified contractor to obtain a
4 building permit or limit such authority to obtaining a permit or
5 permits with specific conditions if the local construction
6 regulation board has found such contractor, through the public
7 hearing process, to be guilty of fraud or a willful building
8 code violation within the county or municipality that the local
9 construction regulation board represents of if the local
10 construction regulation board has proof that such contractor,
11 through the public hearing process, has been found guilty in
12 another county or municipality within the past 12 months of
13 fraud or a willful building code violation and finds, after
14 providing notice of an opportunity to be heard to the
15 contractor, that such fraud or violation would have been fraud
16 or a violation if committed in the county or municipality that
17 the local construction board represents. Notification of and
18 information concerning such permit denial shall be submitted to
19 the department within 15 days after the local construction
20 regulation board decides to deny the permit. The local
21 government may also deny issuance of or may suspend any
22 outstanding building permit where a contractor fails or refuses
23 to provide proof of public liability and property damage
24 insurance coverage as required by section 12 and workers'
25 compensation insurance coverage as required by section 11.
26 (f) Nontransferable.--A certificate shall not be
27 transferable.
28 (g) Specialty contractors.--The board shall designate those
29 types of specialty contractors which may be certified under this
30 act. The limit of the scope of work and responsibility of a
20010H2077B2755 - 34 -
1 specialty contractor shall be established by the board. A
2 certified specialty contractor category established by the board
3 exists as a voluntary Statewide licensing category and does not
4 create a mandatory licensing requirement. Any mandatory
5 Statewide construction contracting licensure requirement may
6 only be established through specific statutory provision.
7 (h) Petition.--If an eligible applicant fails any
8 contractor's written examination, except the general and
9 building contractors' examination, and provides the board with
10 acceptable proof of lack of comprehension of written
11 examinations, the applicant may petition the board to be
12 administered a uniform oral examination, subject to the
13 following conditions:
14 (1) The applicant documents ten years of experience in
15 the appropriate construction craft.
16 (2) The applicant files written recommendations
17 concerning his or her competency in the appropriate
18 construction craft.
19 (3) The applicant is administered only one oral
20 examination within a period of one year.
21 (i) Evidence.--Any public record of the board, when
22 certified by the executive director of the board or the
23 executive director's representative, may be received as prima
24 facie evidence in any administrative or judicial proceeding.
25 (j) Prime contractor.--Nothing in this act shall be
26 construed to prevent any contractor from acting as a prime
27 contractor where the majority of the work to be performed under
28 the contract is within the scope of his license and from
29 subcontracting to other licensed contractors that remaining work
30 which is part of the project contracted.
20010H2077B2755 - 35 -
1 Section 10. Medical gas certification.
2 (a) Certification.--In addition to the certification or
3 registration required to engage in business as a plumbing
4 contractor, any plumbing contractor who wishes to engage in the
5 business of installation, improvement, repair or maintenance of
6 any tubing, pipe or similar conduit used to transport gaseous or
7 partly gaseous substances for medical purposes shall take, as
8 part of the contractor's continuing education requirement, at
9 least once during the holding of such license, a course of at
10 least six hours. Such course shall be given by an instructional
11 facility or teaching entity that has been approved by the board.
12 In order for a course to be approved, the board must find that
13 the course is designed to teach familiarity with the National
14 Fire Prevention Association Standard 99C (Standard on Gas and
15 Vacuum Systems, latest edition) and also designed to teach
16 familiarity and practical ability in performing and inspecting
17 brazing duties required of medical gas installation,
18 improvement, repair or maintenance work. The course shall issue
19 a certificate of completion which shall be available for
20 inspection by any entity or person seeking to have the
21 contractor engage in the business of installation, improvement,
22 repair or maintenance of a medical gas system.
23 (b) Certification of employees.--Any other natural person
24 who is employed by a licensed plumbing contractor to provide
25 work on the installation, improvement, repair or maintenance of
26 a medical gas system, except as noted in subsection (c), shall,
27 as a prerequisite to his ability to provide such service, take a
28 course approved by the board. Such course shall be at least
29 eight hours and consist of both classroom and practical work
30 designed to teach familiarity with the National Fire Prevention
20010H2077B2755 - 36 -
1 Association Standard 99C (Standard on Gas and Vacuum Systems,
2 latest edition) and also designed to teach familiarity and
3 practical ability in performing and inspecting brazing duties
4 required of medical gas installation, improvement, repair or
5 maintenance work. The course shall also include the
6 administration of a practical examination in the skills required
7 to perform work as outlined above, including brazing, and each
8 examination shall be reasonably constructed to test for
9 knowledge of the subject matter. The person taking the course
10 and examination must, upon successful completion of both, be
11 issued a certificate of completion which shall be made available
12 by the holder for inspection by any person or entity seeking to
13 have such person perform work on the installation, improvement,
14 repair or maintenance of a medical gas system.
15 (c) Certification of others.--Any other natural person who
16 wishes to perform only brazing duties incidental to the
17 installation, improvement, repair or maintenance of a medical
18 gas system shall pass an examination designed to show that
19 person's familiarity with and practical ability in performing
20 brazing duties required of medical gas installation,
21 improvement, repair or maintenance. Such examination shall be
22 from a test approved by the board. Such examination must test
23 for knowledge of National Fire Prevention Association Standard
24 99C (Standard on Gas and Vacuum Systems, latest edition). The
25 person taking such examination must, upon passing such
26 examination, be issued a certificate of completion which shall
27 be made available by the holder for inspection by any person or
28 entity seeking to have or employ such person to perform brazing
29 duties on a medical gas system.
30 (d) Responsibility.--It is the responsibility of the
20010H2077B2755 - 37 -
1 licensed plumbing contractor to ascertain whether members of his
2 work force are in compliance with this section.
3 (e) Training programs.--Training programs in medical gas
4 piping installation, improvement, repair or maintenance shall be
5 reviewed annually by the board to ensure that programs have been
6 provided equitably across this Commonwealth.
7 (f) Review.--Periodically, the board shall review training
8 programs in medical gas piping installation for quality in
9 content and instruction in accordance with the National Fire
10 Prevention Association Standard 99C (Standard on Gas and Vacuum
11 Systems, latest edition). The board shall also respond to
12 complaints regarding approved programs.
13 (g) Qualified person present.--On any job site where a
14 medical gas system is being installed, improved, repaired or
15 maintained, a person qualified under subsection (a) or (b) must
16 be present. When any brazing work is performed by a person
17 qualified under subsection (c), a person qualified under
18 subsection (a) or (b) must be present. It is the responsibility
19 of the licensed contractor to ascertain whether members of his
20 work force are in compliance with this subsection.
21 (h) Definition.--As used in this section, the term "medical"
22 means any medicinal, life-supporting or health-related purpose.
23 Any and all gaseous or partly gaseous substance used in medical
24 patient care and treatment shall be presumed for the purpose of
25 this section to be used for medical purposes.
26 Section 11. Evidence of workers' compensation coverage.
27 Except as provided in section 12, any person, business
28 organization or qualifying agent engaged in the business of
29 contracting in this Commonwealth and certified or registered
30 under this act shall, as a condition precedent to the issuance
20010H2077B2755 - 38 -
1 or renewal of a certificate, registration or certificate of
2 authority of the contractor, provide to the board evidence of
3 workers' compensation coverage. In the event that the Bureau of
4 Workers' Compensation receives notice of the cancellation of a
5 policy of workers' compensation insurance insuring a person or
6 entity governed by this section, it shall certify and identify
7 all persons or entities by certification or registration license
8 number to the department after verification is made that such
9 cancellation has occurred or that persons or entities governed
10 by this section are no longer covered by workers' compensation
11 insurance. The failure to maintain workers' compensation
12 coverage as required by law shall be grounds for the board to
13 revoke, suspend or deny the issuance or renewal of a
14 certificate, registration or certificate of authority of the
15 contractor under the provisions of section 24.
16 Section 12. Certification and registration.
17 (a) Certification required.--No person may engage in the
18 business of contracting in this Commonwealth without first being
19 certified or registered in the proper classification.
20 (b) Issuance of certificate.--The department shall issue a
21 certificate or registration to each person qualified by the
22 board and upon receipt of the original license fee.
23 Certification allows the certificate holder to engage in
24 contracting only for the type of work covered by the certificate
25 and only while the certificate is on active status.
26 (c) Requirements.--The board shall certify as qualified for
27 certification by endorsement any applicant who:
28 (1) Meets the requirements for certification as set
29 forth in this section; has passed a national, regional, state
30 or United States territorial licensing examination that is
20010H2077B2755 - 39 -
1 substantially equivalent to the examination required by this
2 act and has satisfied the requirements set forth in section
3 8.
4 (2) Holds a valid license to practice contracting issued
5 by another state or territory of the United States if the
6 criteria for issuance of such license were substantially
7 equivalent to criteria found in this act.
8 (3) Hold a valid, current license to practice
9 contracting issued by another state or territory of the
10 United States if the state or territory has entered into a
11 reciprocal agreement with the board for the recognition of
12 contractor licenses issued in that state, based on criteria
13 for the issuance of such licenses that are substantially
14 equivalent to the criteria for certification in this
15 Commonwealth.
16 (d) Renewal.--Each certificate holder or registrant who
17 desires to continue as a certificate holder or registrant shall
18 renew the certificate or registration every two years. The
19 department shall mail each certificate holder and registrant an
20 application for renewal. Each certificate holder or registrant
21 shall be subject to the following educational requirements:
22 (1) Each certificate holder or registrant shall provide
23 proof that the certificate holder or registrant has completed
24 at least 14 classroom hours of at least 50 minutes each of
25 continuing education courses during each biennium since the
26 issuance or renewal of the certificate or registration. The
27 board shall establish that a portion of the required 14 hours
28 must deal with the subject of workers' compensation, business
29 practices and workplace safety. The board shall establish
30 criteria for the approval of continuing education courses and
20010H2077B2755 - 40 -
1 providers, including requirements relating to the content of
2 courses and standards for approval of providers, and may
3 establish criteria for accepting alternative nonclassroom
4 continuing education on an hour-for-hour basis. The board
5 shall prescribe the continuing education, if any, which is
6 required during the first biennium of initial licensure. A
7 person who has been licensed for less than an entire biennium
8 must not be required to complete the full 14 hours of
9 continuing education.
10 (2) Each certificate holder or registrant shall provide
11 to the board proof of completion of the core curriculum
12 courses, specific to the licensing category sought, within
13 two years after commencement of the program or of initial
14 certification or registration, whichever is later. Classroom
15 hours spent taking core curriculum courses shall count toward
16 the number required for renewal of certificates or
17 registration.
18 (3) Each certificate holder or registrant shall
19 complete, sign and forward the renewal application to the
20 department, together with the appropriate fee. Upon receipt
21 of the application and fee, the department shall renew the
22 certificate or registration.
23 (e) Affidavit.--As a prerequisite to the initial issuance or
24 the renewal of a certificate or registration, the applicant
25 shall submit an affidavit on a form provided by the board
26 attesting to the fact that the applicant has obtained workers'
27 compensation insurance, public liability insurance and property
28 damage insurance for the safety and welfare of the public in
29 amounts determined by the board. The board shall establish a
30 procedure to verify the accuracy of such affidavits based upon a
20010H2077B2755 - 41 -
1 random sample method.
2 (f) Credit report.--As a prerequisite to the initial
3 issuance of a certificate, the applicant shall furnish a credit
4 report from a nationally recognized credit agency that reflects
5 the financial responsibility of the applicant and evidence of
6 financial responsibility, credit and business reputation of
7 either himself or the business organization he desires to
8 qualify. The board shall adopt rules defining financial
9 responsibility based upon the applicant's credit history,
10 ability to be bonded and any history of bankruptcy or assignment
11 of receivers. Such rules shall specify the financial
12 responsibility grounds on which the board may refuse to qualify
13 an applicant for certification.
14 (g) Extension of time.--If, within 60 days from the date the
15 applicant is notified that he has qualified, he does not provide
16 the evidence required, he shall apply to the department for an
17 extension of time which shall be granted upon a showing of just
18 cause.
19 (h) Initial application and change of status credit
20 report.--An initial applicant shall, along with the application,
21 and a certificate holder or registrant shall, upon requesting a
22 change of status, submit to the board a credit report from a
23 nationally recognized credit agency that reflects the financial
24 responsibility of the applicant or certificate holder or
25 registrant. The credit report required for the initial applicant
26 shall be considered the minimum evidence necessary to satisfy
27 the board that he or she is financially responsible to be
28 certified, has the necessary credit and business reputation to
29 engage in contracting in the State, and has the minimum
30 financial stability necessary to avoid the problem of financial
20010H2077B2755 - 42 -
1 mismanagement or misconduct. The board shall, by rule, adopt
2 guidelines for determination of financial stability.
3 Section 13. Inactive and delinquent status and renewal and
4 cancellation notices.
5 (a) Active status required.--A certificate holder or
6 registrant may not engage in contracting unless the certificate
7 holder or registrant has an active status certificate or
8 registration. A certificate holder or registrant who engages in
9 contracting without an active status certificate or registration
10 is subject to disciplinary action as provided in section 24.
11 (b) Election of status.--The board shall permit a
12 certificate holder or registrant to elect, at the time of
13 licensure renewal, an active or inactive status.
14 (c) Change in status.--An inactive status certificate holder
15 or registrant may change to active status at any time provided
16 the certificate holder or registrant meets all requirements for
17 active status, pays any additional licensure fees necessary to
18 equal those imposed on an active status certificate holder or
19 registrant, and pays any applicable late fees.
20 (d) Time of application.--A certificate holder or registrant
21 shall apply to renew an active or inactive status certificate or
22 registration before the certificate or registration expires.
23 Failure of a certificate holder or registrant to so apply shall
24 cause the certificate or registration to become a delinquent
25 certificate or registration. Further, any delinquent certificate
26 holder or registrant who fails to apply to renew licensure on
27 either active or inactive status before expiration of the
28 current licensure cycle must reapply in the same manner as an
29 applicant for initial certification or registration.
30 (e) Delinquent status.--A delinquent status certificate
20010H2077B2755 - 43 -
1 holder or registrant must apply as for active or inactive status
2 during the current licensure cycle. Failure by a delinquent
3 status certificate holder or registrant to become active or
4 inactive before the expiration of the current licensure cycle
5 renders the certificate or registration void and any subsequent
6 licensure shall be subject to all procedures and requirements
7 imposed on an applicant for initial licensure.
8 (f) Continuing education.--An inactive certificate holder or
9 registrant shall comply with the same continuing education
10 requirements, if any, that are imposed on an active status
11 certificate holder or registrant.
12 (g) Discipline.--The status or any change in status of a
13 certificate holder or registrant shall not alter in any way the
14 board's right to impose discipline or to enforce discipline
15 previously imposed on a certificate holder or registrant for
16 acts or omissions committed by the certificate holder or
17 registrant while holding a certificate or registration.
18 (h) Duties of department.--At least 60 days prior to the end
19 of a licensure cycle, the department shall forward:
20 (1) A licensure renewal notification to an active or
21 inactive certificate holder or registrant at the certificate
22 holder's or registrant's address of record.
23 (2) A notice of pending cancellation of licensure to a
24 delinquent status certificate holder or registrant at the
25 certificate holder's or registrant's address of record.
26 Section 14. Registration and specialty contractors.
27 (a) Registration required.--Any person engaged in the
28 business of a contractor in this Commonwealth shall be
29 registered in the proper classification, unless he is certified.
30 Any person entering the business of a contractor shall be
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1 registered prior to engaging in business as a contractor, unless
2 he is certified. To be initially registered, the applicant shall
3 submit the required fee and file evidence in a form provided by
4 the department, of holding a current local occupational license
5 required by any municipality or county, if any, for the type of
6 work for which registration is desired and evidence of
7 successful compliance with the local examination and licensing
8 requirements, if any, in the area for which registration is
9 desired. No examination shall be required for registration.
10 (b) Parameters.--Registration allows the registrant to
11 engage in contracting only in the political subdivisions where
12 he has complied with all local licensing requirements and only
13 for the type of work covered by the registration.
14 (c) Report.--Each registrant shall report to the board each
15 local jurisdiction and each category of registration in which
16 the registrant holds a certificate of competency or license, or
17 where the registrant has been granted a certificate of
18 competency or license by reciprocal agreement, for which
19 registration is required by this act, within 30 days after
20 obtaining such certificate or license.
21 (d) Registration for single project.--The board may grant a
22 limited nonrenewable registration to a contractor not domiciled
23 in this Commonwealth for one project. During the period of such
24 registration the board may require compliance with this act or
25 any other law of this Commonwealth.
26 (e) Job scope.--A person holding a local license whose job
27 scope does not substantially correspond to the job scope of one
28 of the contractor categories defined in section 4 shall not be
29 required to register with the board to perform contracting
30 activities within the scope of such specialty license. A local
20010H2077B2755 - 45 -
1 jurisdiction may require an individual holding a local specialty
2 contractor license in a category which does not permit
3 registration to obtain a tracking registration from the board,
4 provided that the board has established that the activities
5 which comprise the job scope of the local specialty contractor
6 license involve life safety considerations and a significant
7 potential danger to the consumer. Local jurisdiction shall be
8 responsible for providing licensure information, code violation
9 information and disciplinary information on locally licensed
10 individuals to the board within 30 days after licensure or any
11 disciplinary action, and the board shall maintain such licensure
12 and disciplinary information as is provided to them and shall
13 make such information available to the public. The biennial
14 tracking registration fee shall not exceed $40. Neither the
15 board nor the department assumes any responsibility for
16 providing discipline pursuant to having provided the tracking
17 registration. Providing discipline to such locally licensed
18 individuals shall be the responsibility of the local
19 jurisdiction. Failure to obtain a tracking registration shall
20 not be considered a violation of this act; however, a local
21 jurisdiction requiring such tracking registration may levy such
22 penalties for failure to obtain the tracking registration as it
23 chooses to provide through local ordinance.
24 (f) Supervision.--Any person who is not required to obtain
25 registration or certification pursuant to section 4 may perform
26 specialty contracting services for the construction, remodeling,
27 repair or improvement of single-family residences without
28 obtaining a local professional license if such person is under
29 the supervision of a certified or registered general, building
30 or residential contractor.
20010H2077B2755 - 46 -
1 (g) Uniformity.--In order to establish uniformity among the
2 job scopes established by local jurisdictions, the board shall
3 establish the job scope for any licensure category registered by
4 the board under this act. The board shall not arbitrarily limit
5 such scopes and shall restrict the job scopes only to the
6 minimum extent necessary to ensure uniformity.
7 Section 15. Certification of registered contractors and
8 grandfathering provisions.
9 The board shall, upon receipt of a completed application and
10 appropriate fee, prior to November 1, 2006, issue a certificate
11 in the appropriate category to any contractor registered under
12 this act who makes application to the board and can show that he
13 or she meets each of the following requirements:
14 (1) Currently holds a valid registered local license in
15 one of the contractor categories defined in section 4.
16 (2) Has, for that category, passed a written examination
17 that the board finds to be substantially similar to the
18 examination required to be licensed as a certified contractor
19 under this act. For purposes of this subsection, a written,
20 proctored examination such as that produced by the National
21 Assessment Institute, Block and Associates, NAI/Block,
22 Experior Assessments, Professional Testing, Inc., or
23 Assessment Systems, Inc., shall be considered to be
24 substantially similar to the examination required to be
25 licensed as a certified contractor. The board may not impose
26 or make any requirements regarding the nature or content of
27 these cited examinations.
28 (3) Has at least five years of experience as a
29 contractor in that contracting category or as an inspector or
30 building administrator with oversight over that category at
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1 the time of application. For contractors, only time periods
2 in which the contractor license is active and the contractor
3 is not on probation shall count toward the five years
4 required by this paragraph.
5 (4) Has not had his contractor's license revoked at any
6 time, had his contractor's license suspended within the last
7 five years or been assessed a fine in excess of $500 within
8 the last five years.
9 (5) Is in compliance with the insurance and financial
10 responsibility requirements in section 12.
11 Section 16. Business organizations and qualifying agents.
12 (a) Individuals.--If an individual proposes to engage in
13 contracting in the individual's own name or a fictitious name
14 where the individual is doing business as a sole proprietorship,
15 registration or certification may be issued only to that
16 individual.
17 (b) Business organizations.--If the applicant proposes to
18 engage in contracting as a business organization, including any
19 partnership, corporation, business trust or other legal entity
20 or in any name other than the applicant's legal name or a
21 fictitious name where the applicant is doing business as a sole
22 proprietorship, the business organization must apply for a
23 certificate of authority through a qualifying agent and under
24 the fictitious name, if any. The application for a certificate
25 of authority must state the name of the partnership and of its
26 partners; the name of the corporation and of its officers and
27 directors and the name of each of its stockholders who is also
28 an officer or director; the name of the business trust and its
29 trustees; or the name of such other legal entity and its
30 members; and must state the fictitious name, if any, under which
20010H2077B2755 - 48 -
1 the business organization is doing business. In addition:
2 (1) The application for primary qualifying agent must
3 include an affidavit on a form provided by the board
4 attesting that the applicant has final approval authority for
5 all construction work performed by the entity and that the
6 applicant has final approval authority on all business
7 matters, including contracts, specifications, checks, drafts
8 or payments, regardless of the form of payment, made by the
9 entity, except where a financially responsible officer is
10 approved.
11 (2) The application for financially responsible officer
12 must include an affidavit on a form provided by the board
13 attending that the applicant's approval is required for all
14 checks, drafts or payments, regardless of the form of
15 payment, made by the entity and that the applicant has
16 authority to act for the business organization in all
17 financial matters.
18 (3) The application for secondary qualifying agent must
19 include an affidavit on a form provided by the board
20 attesting that the applicant has authority to supervise all
21 construction work performed by the entity as provided in
22 section 9.
23 (4) The applicant must furnish evidence of statutory
24 compliance if a fictitious name is used.
25 (5) A joint venture, including a joint venture composed
26 of qualified business organizations, is itself a separate and
27 distinct organization that must be qualified and obtain a
28 certificate of authority.
29 (6) A certificate of authority must be renewed every two
30 years. If there is a change in any information that is
20010H2077B2755 - 49 -
1 required to be stated on the application, the business
2 organization shall, within 45 days after such change occurs,
3 mail the correct information to the department.
4 (c) Certification or registration of qualifying agent.--The
5 qualifying agent shall be certified or registered under this act
6 in order for the business organization to be issued a
7 certificate of authority in the category of the business
8 conducted for which the qualifying agent is certified or
9 registered. If any qualifying agent ceases to be affiliated with
10 such business organization, he shall inform the department. In
11 addition, if the qualifying agent is the only certified or
12 registered contractor affiliated with the business organization,
13 the business organization shall notify the department of the
14 termination of the qualifying agent and shall have 60 days from
15 the termination of the qualifying agent's affiliation with the
16 business organization in which to employ another qualifying
17 agent. The business organization may not engage in contracting
18 until a qualifying agent is employed unless the board has
19 granted a temporary nonrenewable certificate or registration to
20 the financially responsible officer, the president, a partner
21 or, in the case of a limited partnership, the general partner,
22 who assumes all responsibilities of a primary qualifying agent
23 for the entity. This temporary certificate or registration shall
24 only allow the entity to proceed with incomplete contracts. For
25 the purposes of this paragraph, an incomplete contract is one
26 which has been awarded to or entered into by the business
27 organization prior to the cessation of affiliation of the
28 qualifying agent with the business organization or one on which
29 the business organization was the low bidder and the contract is
30 subsequently awarded, regardless of whether any actual work has
20010H2077B2755 - 50 -
1 commenced under the contract prior to the qualifying agent
2 ceasing to be affiliated with the business organization.
3 (d) Notification.--The qualifying agent shall inform the
4 department in writing when he proposes to engage in contracting
5 in his own name or in affiliation with another business
6 organization, and he or the new business organization shall
7 supply the same information to the department as required of
8 applicants under this act.
9 (e) Issuance of new certificate of authority.--Upon a
10 favorable determination by the board, after investigation of the
11 financial responsibility, credit and business reputation of the
12 qualifying agent and the new business organization, the
13 department shall issue, without an examination, a new
14 certificate of authority in the business organization's name.
15 (f) Disciplinary action.--Disciplinary action against a
16 business organization holding a certificate of authority shall
17 be administered in the same manner and on the same grounds as
18 disciplinary action against a contractor. The board may deny the
19 certification of any person cited in subsection (b) if the
20 person has been involved in past disciplinary actions or on any
21 grounds for which individual certification can be denied.
22 (g) Application of occupational license.--When a certified
23 qualifying agent, on behalf of a business organization, makes
24 application for an occupational license in any political
25 subdivision, the application shall be made with the tax
26 collector in the name of the business organization and the
27 qualifying agent and the license, when issued, shall be issued
28 to the business organization upon payment of the appropriate
29 licensing fee and exhibition to the tax collector of a valid
30 certificate for the qualifying agent and a valid certificate of
20010H2077B2755 - 51 -
1 authority for the business organization issued by the
2 department, and the license numbers shall be noted thereon.
3 (h) Registration or certification numbers.--The following
4 shall apply:
5 (1) Each registered or certified contractor shall affix
6 the number of his registration or certification to each
7 application for a building permit and on each application for
8 a building permit issued and recorded. Each city or county
9 building department shall require, as a precondition for the
10 issuance of the building permit, that the contractor taking
11 out the permit must provide verification giving his
12 registration or certification number.
13 (2) The registration or certification number of each
14 contractor or certificate of authority number for each
15 business organization shall appear in each offer of services,
16 business proposal, bid, contract or advertisement, regardless
17 of medium, as defined by the board, used by that contractor
18 or business organization in the practice of contracting. The
19 term "advertisement" does not include business stationary or
20 any promotional novelties such as balloons, pencils, trinkets
21 or articles of clothing.
22 (3) If a vehicle bears the name of a contractor or
23 business organization or any text or artwork which would lead
24 a reasonable person to believe that the vehicle is used for
25 contracting, the registration or certification number of the
26 contractor or certificate of authority number of the business
27 organization must be conspicuously and legibly displayed with
28 the name, text or artwork. Local governments may also require
29 that locally licensed contractors must also display their
30 certificate of competency or license numbers. Nothing in this
20010H2077B2755 - 52 -
1 paragraph shall be construed to create a mandatory vehicle
2 signage requirement.
3 (4) The board shall issue a notice of noncompliance for
4 the first offense and may assess a fine or issue a citation
5 for failure to correct the offense within 30 days or for any
6 subsequent offense to any contractor or business organization
7 that fails to include the certification, registration or
8 certificate of authority number as required by this act when
9 submitting an advertisement for publication, broadcast or
10 printing or fails to display the certification, registration
11 or certificate of authority number as required by this act.
12 (i) Fee.--Each qualifying agent shall pay the department an
13 amount equal to the original fee for a certificate of authority
14 of a new business organization. If the qualifying agent for a
15 business organization desires to qualify additional business
16 organizations, the board shall require him to present evidence
17 of ability and financial responsibility of each such
18 organization. The issuance of such certificate of authority is
19 discretionary with the board.
20 Section 17. Responsibilities.
21 (a) Primary qualifying agent.--A qualifying agent is a
22 primary qualifying agent unless he is a secondary qualifying
23 agent under this section.
24 (b) Responsibilities of primary qualifying agent.--All
25 primary qualifying agents for a business organization are
26 jointly and equally responsible for supervision of all
27 operations of the business organization, for all field work at
28 all sites and for financial matters, both for the organization
29 in general and for each specific job.
30 (c) Responsibilities of financially responsible officers.--
20010H2077B2755 - 53 -
1 Upon approval by the board, a business entity may designate a
2 financially responsible officer for purposes of certification or
3 registration. A financially responsible officer shall be
4 responsible for all financial aspects of the business
5 organization and may not be designated as the primary qualifying
6 agent. The designated financially responsible officer shall
7 furnish evidence of the financial responsibility, credit and
8 business reputation of either himself or the business
9 organization he desires to qualify, as determined appropriate by
10 the board.
11 (d) Priority.--Where a business organization has a certified
12 or registered financially responsible officer, the primary
13 qualifying agent shall be responsible for all construction
14 activities of the business organization, both in general and for
15 each specific job.
16 (e) Qualifications.--The board shall prescribe the
17 qualifications for financially responsible officers, including
18 net worth, cash and bonding requirements. These qualifications
19 must be at least as extensive as the requirements for the
20 financial responsibility of qualifying agents.
21 (f) Single qualifying agents.--One of the qualifying agents
22 for a business organization that has more than one qualifying
23 agent may be designated as the sole primary qualifying agent for
24 the business organization by a joint agreement that is executed,
25 on a form provided by the board, by all qualifying agents for
26 the business organization. The joint agreement must be submitted
27 to the board for approval. If the board determines that the
28 joint agreement is in good order, it shall approve the
29 designation and immediately notify the qualifying agents of such
30 approval. The designation made by the joint agreement is
20010H2077B2755 - 54 -
1 effective upon receipt of the notice by the qualifying agents.
2 The qualifying agent designated for a business organization by a
3 joint agreement is the sole primary qualifying agent for the
4 business organization, and all other qualifying agents for the
5 business organization are secondary qualifying agents. A
6 designated sole primary qualifying agent has all the
7 responsibilities and duties of a primary qualifying agent,
8 notwithstanding that there are secondary qualifying agents for
9 specified jobs. The designated sole primary qualifying agent is
10 jointly and equally responsible with secondary qualifying agents
11 for field work supervision.
12 (g) Responsibilities of secondary qualifying agents.--A
13 secondary qualifying agent is responsible only for the
14 supervision of field work at sites where his license was used to
15 obtain the building permit and any other work for which he
16 accepts responsibility. A secondary qualifying agent is not
17 responsible for supervision of financial matters.
18 (h) Termination of status.--A qualifying agent who has been
19 designated by a joint agreement as the sole primary qualifying
20 agent for a business organization may terminate this status by
21 giving actual notice to the business organization, to the board
22 and to all secondary qualifying agents of his intention to
23 terminate this status. The notice to the board must include
24 proof satisfactory to the board that he has given the notice
25 required in this subsection. The status of the qualifying agent
26 shall cease upon the designation of a new primary qualifying
27 agent or 60 days after satisfactory notice of termination has
28 been provided to the board, whichever occurs first. If no new
29 primary qualifying agent has been designated within 60 days, all
30 secondary qualifying agents for the business organization shall
20010H2077B2755 - 55 -
1 become primary qualifying agents unless the joint agreement
2 specifies that one or more of them shall become sole qualifying
3 agents under such circumstances, in which case only they shall
4 become sole qualifying agents. Any change in the status of a
5 qualifying agent is prospective only. A qualifying agent shall
6 not be responsible for his predecessor's actions but is
7 responsible, even after a change in status, for matters for
8 which he was responsible while in a particular status.
9 Section 18. Emergency registration upon death of contractor.
10 If an incomplete contract exists at the time of death of a
11 contractor, the contract may be completed by any person even
12 though not certified or registered. The person shall notify the
13 board within 30 days after the death of the contractor of his
14 name and address, knowledge of the contract and ability to
15 complete it. If the board approves, he may proceed with the
16 contract. For purposes of this section, an incomplete contract
17 is one which has been awarded to or entered into by the
18 contractor before his death, or on which he was the low bidder
19 and the contract is subsequently awarded to him, regardless of
20 whether any actual work has commenced under the contract before
21 the contractor's death.
22 Section 19. Business records requirements, address of record
23 and service.
24 (a) Records agreement.--All contractors who are registered
25 or certified pursuant to this act shall maintain complete
26 financial and business records for the immediately preceding
27 three years. The business and financial records to be maintained
28 shall include minutes of corporate meetings, business contacts,
29 telephone records, insurance policies, letters of complaint,
30 notices received from government entities, bank statements,
20010H2077B2755 - 56 -
1 canceled checks, records of accounts receivable and payable,
2 financial statements, loan documents, tax returns and all other
3 business and financial records the contractor maintains in the
4 regular course of business.
5 (b) Address.--Each certificate holder or registrant of the
6 department shall be solely responsible for notifying the
7 department in writing of the certificate holder's or
8 registrant's current mailing address and telephone number. If
9 the mailing address is not the certificate holder's or
10 registrant's physical address, the certificate holder or
11 registrant shall also supply the physical address. A certificate
12 holder's or registrant's failure to notify the department of a
13 change of address or telephone number shall constitute a
14 violation of this section. A certificate holder or registrant
15 shall be responsible for retaining proof that the certificate
16 holder or registrant has notified the department of the
17 certificate holder's or registrant's current address of record.
18 (c) Service.--Notwithstanding any other provision of law,
19 service by regular mail to a certificate holder's or
20 registrant's address of record shall constitute adequate and
21 sufficient notice to the certificate holder or registrant for
22 any official communication to the certificate holder or
23 registrant by the board or the department.
24 Section 20. Moneys received by contractors.
25 (a) Duties of contractor.--A contractor who receives, as
26 initial payment, money totaling more than 10% of the contract
27 price for repair, restoration, improvement or construction to
28 residential real property must:
29 (1) apply for permits necessary to do work within 30
30 days after the date payment is made except where the work
20010H2077B2755 - 57 -
1 does not require a permit under the applicable codes and
2 ordinances; and
3 (2) start the work within 90 days after the date all
4 necessary permits for work, if any, are issued;
5 unless the person who made the payment agreed, in writing, to a
6 longer period to apply for the necessary permits or start the
7 work or to longer periods for both.
8 (b) Prohibition.--A contractor who receives money for
9 repair, restoration, addition, improvement or construction of
10 residential real property in excess of the value of the work
11 performed shall not, with intent to defraud the owner, fail or
12 refuse to perform any work for any 90-day period.
13 (c) Presumption.--Proof that a contractor received money for
14 the repair, restoration, addition, improvement or construction
15 of residential real property and that the amount received
16 exceeds the value of the work performed by the contractor gives
17 rise to an inference that the money in excess of the value of
18 the work performed was taken with the intent to defraud if:
19 (1) The contractor failed to perform any of the work for
20 which he contracted during any 60-day period.
21 (2) The failure to perform any such work during the 60-
22 day period was not related to the owner's termination of the
23 contract or a material breach of the contract by the owner.
24 (3) The contractor failed, for an additional 30-day
25 period after the date of mailing of notification as specified
26 in subsection (d), to perform any work for which he
27 contracted.
28 (d) Notification.--Notification as contemplated in
29 subsection (c) consists of a certified letter, return receipt
30 requested, mailed to the address of the contractor as listed in
20010H2077B2755 - 58 -
1 the written contracting agreement. The letter must indicate that
2 the contractor has failed to perform any work for a 60-day
3 period, that the failure to perform the work was not the result
4 of the owner's termination of the contract or a material breach
5 of the contract by the owner and that the contractor must
6 recommence construction within 30 days after the date of mailing
7 of the letter. If there is no address for the contractor listed
8 in the written contracting agreement or no written agreement
9 exists, the letter must be mailed to the address of the
10 contractor listed in the building permit application.
11 (e) Violation.--Any person who violates any provision of
12 this section commits a misdemeanor of the second degree.
13 Section 21. Prohibitions and penalties.
14 (a) Prohibition.--No person shall:
15 (1) Falsely hold himself or a business organization out
16 as a licensee, certificate holder or registrant.
17 (2) Falsely impersonate a certificate holder or
18 registrant.
19 (3) Present as his own the certificate, registration or
20 certificate of authority of another.
21 (4) Knowingly give false or forged evidence to the
22 board.
23 (5) Use or attempt to use a certificate, registration or
24 certificate of authority which has been suspended or revoked.
25 (6) Engage in the business or act in the capacity of a
26 contractor or advertise himself or a business organization as
27 available to engage in the business or act in the capacity of
28 a contractor without being duly registered or certified or
29 having a certificate of authority.
30 (7) Operate a business organization engaged in
20010H2077B2755 - 59 -
1 contracting after 60 days following the termination of its
2 only qualifying agent without designating another primary
3 qualifying agent, except as provided in sections 16 and 17.
4 (8) Willfully or deliberately disregard or violate any
5 political subdivision's ordinance relating to uncertified or
6 unregistered contractors.
7 For purposes of this subsection, a person or business
8 organization operating on an inactive or suspended certificate,
9 registration or certificate of authority is not duly certified
10 or registered and is considered unlicensed.
11 (b) Penalty.--The following penalties shall apply:
12 (1) Any unlicensed person who violates any of the
13 provisions of subsection (a) commits a misdemeanor of the
14 first degree.
15 (2) Any unlicensed person who commits a violation of
16 subsection (a) after having been previously found guilty of
17 such violation commits a felony of the third degree.
18 (3) Any unlicensed person who commits a violation of
19 subsection (a) during the existence of a state of emergency
20 declared by executive order of the Governor commits a felony
21 of the third degree.
22 (4) Any person who operates as a pollutant storage
23 systems contractor, precision tank tester, or internal
24 pollutant storage tank lining applicator in violation of
25 subsection (a) commits a felony of the third degree.
26 The remedies set forth in this subsection are not exclusive and
27 may be imposed in addition to any other remedies set forth in
28 this act or other laws.
29 (c) Stop-work order.--The department may issue a stop-work
30 order for all unlicensed work on a project upon finding probable
20010H2077B2755 - 60 -
1 cause to believe that construction work which requires
2 certification or registration is being performed without a
3 current, valid certificate or registration. Stop-work orders may
4 be enforced using any cease and desist or other related action
5 by the department.
6 (d) Contracts.--A certified or registered contractor may not
7 enter into an agreement, oral or written, where his
8 certification number or registration number is used by a person
9 who is not certified or registered as provided for in this act
10 or used by a business organization that is not duly qualified as
11 provided for in this act to engage in the business or act in the
12 capacity of a contractor.
13 (e) Use.--A certified or registered contractor may not
14 knowingly allow his certification number or registration number
15 to be used by a person who is not certified or registered as
16 provided for in this act, or used by a business organization
17 that is not qualified as provided for in this act to engage in
18 the business or act in the capacity of a contractor.
19 (f) Location of property.--A certified or registered
20 contractor may not apply for or obtain a building permit for
21 construction work unless the certified or registered contractor
22 or business organization duly qualified by the contractor, has
23 entered into a contract to make improvements to or perform the
24 contracting at the real property specified in the application or
25 permit. This subsection does not prohibit a contractor from
26 applying for or obtaining a building permit to allow the
27 contractor to perform work for another person without
28 compensation or to perform work on property that is owned by the
29 contractor. A person who violates this subsection commits a
30 misdemeanor of the first degree. A person who violates this
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1 subsection after having been previously found guilty of such
2 violation commits a felony of the third degree.
3 (g) Code enforcement officers.--Each county or municipality
4 may, at its option, designate one or more of its code
5 enforcement officers to enforce the provisions of subsection (a)
6 and section 25(1) against persons who engage in activity for
7 which a county or municipal certificate of competency or license
8 or State certification or registration is required. The
9 following provisions shall apply:
10 (1) A code enforcement officer designated pursuant to
11 this subsection may issue a citation for any violation of
12 subsection (a) or section 25 whenever, based upon personal
13 investigation, the code enforcement officer has reasonable
14 and probable grounds to believe that such a violation has
15 occurred.
16 (2) A citation issued by a code enforcement officer
17 shall be in a form prescribed by the local governing body of
18 the county or municipality and shall state:
19 (i) The time and date of issuance.
20 (ii) The name and address of the person to whom the
21 citation is issued.
22 (iii) The time and date of the violation.
23 (iv) A brief description of the violation and the
24 facts constituting reasonable cause.
25 (v) The name of the code enforcement officer.
26 (vi) The procedure for the person to follow in order
27 to pay the civil penalty or to contest the citation.
28 (vii) The applicable civil penalty if the person
29 elects not to contest the citation.
30 (3) The local governing body of the county or
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1 municipality is authorized to enforce codes and ordinances
2 against unlicensed contractors under the provisions of this
3 subsection and may enact an ordinance establishing procedures
4 for implementing this subsection, including a schedule of
5 penalties to be assessed by the code enforcement officer. The
6 maximum civil penalty which may be levied shall not exceed
7 $500. Moneys collected pursuant to this subsection shall be
8 retained locally, as provided for by local ordinance and may
9 be set aside in a specific fund to support future enforcement
10 activities against unlicensed contractors.
11 (4) The act for which the citation is issued shall be
12 ceased upon receipt of the citation and the person charged
13 with the violation shall elect either to correct the
14 violation and pay the civil penalty in the manner indicated
15 on the citation or within 10 days of receipt of the citation
16 request an administrative hearing before the enforcement or
17 licensing board to appeal the issuance of the citation by the
18 code enforcement officer.
19 (5) Failure of a violator to appeal the decision of the
20 code enforcement officer within the time period set forth in
21 this paragraph shall constitute a waiver of the violator's
22 right to an administrative hearing. A waiver of the right to
23 an administrative hearing shall be deemed an admission of the
24 violation and penalties may be imposed accordingly.
25 (6) If the person issued the citation or his designated
26 representative shows that the citation is invalid or that the
27 violation has been corrected prior to appearing before the
28 enforcement or licensing board or designated special master,
29 the enforcement or licensing board may dismiss the citation
30 unless the violation is irreparable or irreversible.
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1 (7) Each day a willful, knowing violation continues
2 shall constitute a separate offense under the provisions of
3 this subsection.
4 (8) A person cited for a violation pursuant to this
5 subsection is deemed to be charged with a noncriminal
6 infraction.
7 (9) If the enforcement or licensing board finds that a
8 violation exists, the enforcement or licensing board may
9 order the violator to pay a civil penalty of not less than
10 the amount set forth on the citation but not more than $1,000
11 per day for each violation. In determining the amount of the
12 penalty, the enforcement or licensing board shall consider
13 the following factors:
14 (i) The gravity of the violation.
15 (ii) Any actions taken by the violator to correct
16 the violation.
17 (iii) Any previous violations committed by the
18 violator.
19 (10) Upon written notification by the code enforcement
20 officer that a violator had not contested the citation or
21 paid the civil penalty within the time frame allowed on the
22 citation, or if a violation has not been corrected within the
23 time frame set forth on the notice of violation, the
24 enforcement or licensing board shall enter an order ordering
25 the violator to pay the civil penalty set forth on the
26 citation or notice of violation and a hearing shall not be
27 necessary for the issuance of such order.
28 (11) A certified copy of an order imposing a civil
29 penalty against an uncertified contractor may be recorded in
30 the public records and thereafter shall constitute a lien
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1 against any real or personal property owned by the violator.
2 Upon petition to the court, such order may be enforced in the
3 same manner as a court judgment by the sheriffs of this
4 State, including a levy against personal property; however
5 its order shall not be deemed to be a court judgment except
6 for enforcement purposes. A civil penalty imposed pursuant to
7 this act shall continue to accrue until the violator comes
8 into compliance or until judgment is rendered in a suit to
9 foreclose on a lien filed pursuant to this subsection,
10 whichever occurs first. After three months from the filing of
11 any such lien which remains unpaid, the enforcement board or
12 licensing board may authorize the local governing body's
13 attorney to foreclose on the lien.
14 (12) This subsection does not authorize or permit a code
15 enforcement officer to perform any function or duty of a law
16 enforcement officer other than a function or duty that is
17 authorized in this subsection.
18 (13) An aggrieved party, including the local governing
19 body, may appeal a final administrative order of an
20 enforcement board or licensing board to the court. Such an
21 appeal shall not be a hearing de novo but shall be limited to
22 appellate review of the record created before the enforcement
23 board or licensing board. An appeal shall be filed within 30
24 days of the execution of the order to be appealed.
25 (14) All notices required by this subsection shall be
26 provided to the alleged violator by certified mail, return
27 receipt requested; by hand delivery by the sheriff or other
28 law enforcement officer or code enforcement officer; by
29 leaving the notice at the violator's usual place of residence
30 with some person of his or her family above 15 years of age
20010H2077B2755 - 65 -
1 and informing such person of the contents of the notice; or
2 by including a hearing date within the citation.
3 (15) For those counties which enact ordinances to
4 implement this subsection and which have local construction
5 licensing boards or local government code enforcement boards,
6 the local construction licensing board or local government
7 code enforcement board shall be responsible for the
8 administration of such citation program and training of code
9 enforcement officers. The local governing body of the county
10 shall enter into interlocal agreements with any
11 municipalities in the county so that such municipalities may,
12 by ordinance, resolution, policy or administrative order,
13 authorize individuals to enforce the provisions of this
14 subsection. Such individuals shall be subject to the
15 requirements of training as specified by the local
16 construction licensing board.
17 (16) Any person who willfully refuses to sign and accept
18 a citation issued by a code enforcement officer commits a
19 misdemeanor of the second degree.
20 (17) Nothing contained in this subsection shall prohibit
21 a county or municipality from enforcing its codes or
22 ordinances by any other means.
23 (18) Nothing in this subsection shall be construed to
24 authorize local jurisdictions to exercise disciplinary
25 authority or procedures established in this subsection
26 against an individual holding a proper valid certificate
27 issued pursuant to this act.
28 (19) Local building departments may collect outstanding
29 fines against registered or certified contractors issued by
30 the board and may retain 25% of the fines they are able to
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1 collect, provided that they transmit 75% of the fines they
2 are able to collect to the department according to a
3 procedure to be determined by the department.
4 Section 22. Contracts performed by unlicensed contractors
5 unenforceable.
6 As a matter of public policy, contracts entered into on or
7 after October 1, 2004, and performed in full or in part by any
8 contractor who fails to obtain or maintain a license in
9 accordance with this section shall be unenforceable in law or in
10 equity.
11 Section 23. Disciplinary proceedings.
12 (a) Disciplinary actions.--The board may take any of the
13 following actions against any certificate holder or registrant:
14 place on probation or reprimand the licensee; revoke, suspend or
15 deny the issuance or renewal of the certificate, registration or
16 certificate of authority; require financial restitution to a
17 consumer for financial harm directly related to a violation of a
18 provision of this act; impose an administrative fine not to
19 exceed $5,000 per violation; require continuing education; or
20 assess costs associated with investigation and prosecution if
21 the contractor, financially responsible officer or business
22 organization for which the contractor is a primary qualifying
23 agent, a financially responsible officer or secondary qualifying
24 agent responsible under section 17 is found guilty of any of the
25 following acts:
26 (1) Obtaining a certificate, registration or certificate
27 of authority by fraud or misrepresentation.
28 (2) Being convicted or found guilty of or entering a
29 plea of nolo contendere to, regardless of adjudication, a
30 crime in any jurisdiction which directly relates to the
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1 practice of contracting or the ability to practice
2 contracting.
3 (3) Performing any act which assists a person or entity
4 in engaging in the prohibited uncertified and unregistered
5 practice of contracting if the certificate holder or
6 registrant knows or has reasonable grounds to know that the
7 person or entity was uncertified and unregistered.
8 (4) Knowingly combining or conspiring with an
9 uncertified or unregistered person by allowing his
10 certificate, registration or certificate of authority to be
11 used by the uncertified or unregistered person with intent to
12 evade the provisions of this act. When a certificate holder
13 or registrant allows his certificate or registration to be
14 used by one or more business organizations without having any
15 active participation in the operations, management or control
16 of such business organizations, such act constitutes prima
17 facie evidence of an intent to evade the provisions of this
18 act.
19 (5) Acting in the capacity of a contractor under any
20 certificate or registration issued under this act except in
21 the name of the certificate holder or registrant as set forth
22 on the issued certificate or registration or in accordance
23 with the personnel of the certificate holder or registrant as
24 set forth in the application for the certificate or
25 registration, or as later changed as provided in this act.
26 (6) Committing mismanagement or misconduct in the
27 practice of contracting that causes financial harm to a
28 customer. Financial mismanagement or misconduct occurs when:
29 (i) valid liens have been recorded against the
30 property of a contractor's customer for supplies or
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1 services ordered by the contractor for the customer's
2 job; the contractor has received funds from the customer
3 to pay for the supplies or services and the contractor
4 has not had the liens removed from the property, by
5 payment or by bond, within 75 days after the date of such
6 liens;
7 (ii) the contractor has abandoned a customer's job
8 and the percentage of completion is less than the
9 percentage of the total contract price paid to the
10 contractor as of the time of abandonment unless the
11 contractor is entitled to retain such funds under the
12 terms of the contract or refunds the excess funds within
13 30 days after the date the job is abandoned; or
14 (iii) the contractor's job has been completed, and
15 it is shown that the customer has had to pay more for the
16 contracted job than the original contract price, as
17 adjusted for subsequent change orders, unless such
18 increase in cost was the result of circumstances beyond
19 the control of the contractor, was the result of
20 circumstances caused by the customer or was otherwise
21 permitted by the terms of the contract between the
22 contractor and the customer.
23 (7) Being disciplined by any municipality or county for
24 an act or violation of this act.
25 (8) Failing in any material respect to comply with the
26 provisions of this act or violating a rule, regulation or
27 order of the board.
28 (9) Abandoning a construction project in which the
29 contractor is engaged or under contract as a contractor. A
30 project may be presumed abandoned after 90 days if the
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1 contractor terminates the project without just cause or
2 without proper notification to the owner, including the
3 reason for termination, or fails to perform work without just
4 cause for 90 consecutive days.
5 (10) Signing a statement with respect to a project or
6 contract falsely indicating that the work is bonded; falsely
7 indicating that payment has been made for all subcontracted
8 work, labor and materials which results in a financial loss
9 to the owner, purchaser or contractor; or falsely indicating
10 that workers' compensation and public liability insurance are
11 provided.
12 (11) Committing fraud or deceit in the practice of
13 contracting.
14 (12) Committing incompetency or misconduct in the
15 practice of contracting.
16 (13) Committing gross negligence, repeated negligence or
17 negligence resulting in a significant danger to life or
18 property.
19 (14) Proceeding on any job without obtaining applicable
20 local building department permits and inspections.
21 (15) Failing to satisfy within a reasonable time the
22 terms of a civil judgment obtained against the licensee or
23 the business organization qualified by the licensee, relating
24 to the practice of the licensee's profession.
25 (b) Additional fine.--If a registrant or certificate holder
26 disciplined under subsection (a) is a qualifying agent or
27 financially responsible officer for a business organization and
28 the violation was performed in connection with a construction
29 project undertaken by that business organization, the board may
30 impose an additional administrative fine not to exceed $5,000
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1 per violation against the business organization or against any
2 partner, officer, director, trustee or member if such person
3 participated in the violation or knew or should have known of
4 the violation and failed to take reasonable corrective action.
5 (c) Violations.--The board may specify by regulation the
6 acts or omissions which constitute violations of this section.
7 (d) Penalties.--In recommending penalties in any proposed
8 recommended final order, the department shall follow the penalty
9 guidelines established by the board by regulation. The
10 department shall advise the administrative law judge of the
11 appropriate penalty, including mitigating and aggravating
12 circumstances and the specific regulation citation.
13 (e) Reinstatement.--The board may not reinstate the
14 certification, registration or certificate of authority of or
15 cause a certificate, registration or certificate of authority to
16 be issued to a person who or business organization which the
17 board has determined is unqualified or whose certificate,
18 registration or certificate of authority the board has suspended
19 until it is satisfied that such person or business organization
20 has complied with all terms and conditions set forth in the
21 final order and is capable of competently engaging in the
22 business of contracting.
23 (f) Interest.--The board may assess interest or penalties on
24 all fines imposed under this section against any person or
25 business organization which has not paid the imposed fine by the
26 due date established.
27 (g) Renewal.--The board shall not issue or renew a
28 certificate, registration or certificate of authority to any
29 person or business organization that has been assessed a fine,
30 interest or costs associated with investigation and prosecution
20010H2077B2755 - 71 -
1 or has been ordered to pay restitution until such fine, interest
2 or costs associated with investigation and prosecution or
3 restitution are paid in full or until all terms and conditions
4 of the final order have been satisfied.
5 (h) Continuing education.--If the board finds any certified
6 or registered contractor guilty of a violation, the board may,
7 as part of its disciplinary action, require such contractor to
8 obtain continuing education in the areas of contracting affected
9 by such violation.
10 (i) Supervisory capacity.--Any person certified or
11 registered pursuant to this act who has had his license revoked
12 shall not be eligible to be a partner, officer, director or
13 trustee of a business organization defined by this section or be
14 employed in a managerial or supervisory capacity for a five-year
15 period. Such person shall also be ineligible to reapply for
16 certification or registration under this act for a period of
17 five years after the effective date of the revocation.
18 (j) Action of board.--If a business organization or any of
19 its partners, officers, directors, trustees or members is or has
20 previously been fined for violating subsection (a) or section
21 26, the board may, on that basis alone, revoke, suspend, place
22 on probation or deny issuance of a certificate or registration
23 to a qualifying agent or financially responsible officer of that
24 business organization.
25 (k) Binding arbitration.--Upon receipt of a legally
26 sufficient consumer complaint alleging a violation of this act,
27 the department may provide for binding arbitration between the
28 complainant and the certificate holder or registrant provided
29 the following conditions exists:
30 (1) There is evidence that the complainant has suffered
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1 or is likely to suffer monetary damages resulting from the
2 violation of this act.
3 (2) The certificate holder or registrant does not have a
4 history of repeated or similar violations.
5 (3) Reasonable grounds exist to believe that the public
6 interest will be better served by arbitration than by
7 disciplinary action.
8 (4) The complainant and certificate holder or registrant
9 have not previously entered into private arbitration and no
10 civil court action based on the same transaction has been
11 filed.
12 (l) Consent to binding arbitration.--The certificate holder
13 or registrant and the complainant may consent in writing to
14 binding arbitration within 15 days following notification of
15 this process by the department. The department may suspend all
16 action in the matter for 45 days when notice of consent to
17 binding arbitration is received by the department. If the
18 arbitration process is successfully concluded within the 60-day
19 period, the department may close the case file with a notation
20 of the disposition, and the licensee's record shall reflect only
21 that a complaint was filed and resolved through arbitration.
22 (m) Mandatory arbitration.--Where a complaint meets the
23 criteria for arbitration set forth in subsection (k) and the
24 damages at issue are less than $2,500, the department shall
25 refer the complaint for mandatory arbitration.
26 (n) Final order.--The arbitrator's order shall become a
27 final order of the board if not challenged by the complainant or
28 the certificate holder or registrant within 30 days after
29 filing.
30 (o) Availability of documents.--When an investigation of a
20010H2077B2755 - 73 -
1 contractor is undertaken, the department shall promptly furnish
2 to the contractor or the contractor's attorney a copy of the
3 complaint or document that resulted in the initiation of the
4 investigation. The department shall make the complaint and
5 supporting documents available to the contractor. The complaint
6 or supporting documents shall contain information regarding the
7 specific facts that serve as the basis for the complaint. The
8 contractor may submit a written response to the information
9 contained in such complaint or document within 20 days after
10 service to the contractor of the complaint or document. The
11 right to respond does not prohibit the issuance of a summary
12 emergency order if necessary to protect the public. However, if
13 the department and the board agree in writing that such
14 notification would be detrimental to the investigation, the
15 department may withhold notification. The department may conduct
16 an investigation without notification to a contractor if the act
17 under investigation is a criminal offense.
18 Section 24. Unlicensed contracting, notice of noncompliance,
19 fine, authority to issue or receive a building
20 permit and World Wide Web site.
21 (a) Violation.--Any person performing an activity requiring
22 licensure under this act as a construction contractor is guilty
23 of unlicensed contracting if he does not hold a valid active
24 certificate or registration authorizing him to perform such
25 activity, regardless of whether he holds a local construction
26 contractor license or local certificate of competency. Persons
27 working outside the geographical scope of their registration are
28 guilty of unlicensed activity for purposes of this act.
29 (b) Notice of noncompliance.--For a first offense, any
30 person who holds a State or local construction license and is
20010H2077B2755 - 74 -
1 found guilty of unlicensed contracting under this section shall
2 be issued a notice of noncompliance pursuant to section 25.
3 (c) Administrative fine.--The department may impose an
4 administrative fine of up to $10,000 on any unlicensed person
5 guilty of unlicensed contracting. In addition, the department
6 may assess reasonable investigative and legal costs for
7 prosecution of the violation against the unlicensed contractor.
8 The department may waive up to one-half of any fine imposed if
9 the unlicensed contractor complies with certification or
10 registration within one year after imposition of the fine under
11 this section.
12 (d) Use of fines.--Any fines collected under this section
13 shall be first used to cover the investigative and legal costs
14 of prosecution. Any local governing body that forwards
15 information relating to any person who is an unlicensed
16 contractor shall collect 30% of the fine collected after
17 deduction of the investigative and legal costs of prosecution.
18 The balance of any fines collected under this section shall be
19 used to maintain the department's unlicensed contractor World
20 Wide Web Site as specified in subsection (e) and to fund the
21 fund. Nothing in this paragraph shall be construed to permit
22 recovery from the fund if the contractor is unlicensed.
23 (e) Local building departments.--A local building department
24 shall not issue a building permit to any contractor, or to any
25 person representing himself as a contractor, who does not hold a
26 valid active certificate or registration in the appropriate
27 category. Possession of a local certificate of competency or
28 local construction license is not sufficient to lawfully obtain
29 a building permit as a construction contractor if the activity
30 in question requires licensure under this act. Nothing in this
20010H2077B2755 - 75 -
1 subsection shall be construed as prohibiting a local building
2 department from issuing a building permit to a locally licensed
3 or certified contractor for an activity that does not require
4 licensure under this act.
5 (f) World Wide Web site.--The department shall create a
6 World Wide Web site, accessible through its World Wide Web site,
7 dedicated solely to listing any known information concerning
8 unlicensed contractors. The information shall be provided in
9 such a way that any person with computer on-line capabilities
10 can access information concerning unlicensed contractors by name
11 or by county. The department shall recognize that persons found
12 guilty of unlicensed contracting do not have the same rights and
13 privileges as licensees, and the department shall not restrict
14 the quality or quantity of information on the World Wide Web
15 site required by this subsection unless otherwise required by
16 law.
17 (g) Remedies not exclusive.--The remedies set forth in this
18 section are not exclusive and nothing in this section is
19 intended to prohibit the department or any local governing body
20 from filing a civil action or seeking criminal penalties against
21 an unlicensed contractor.
22 Section 25. Applicability.
23 (a) General rule.--This act applies to all contractors,
24 including, but not limited to, those performing work for the
25 State or any county or municipality. Officers of the State or
26 any county or municipality shall determine compliance with this
27 act before awarding any contract for construction, improvement,
28 remodeling or repair.
29 (b) Bids.--The State or any county or municipality shall
30 require that bids submitted for construction, improvement,
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1 remodeling or repair on public projects be accompanied by
2 evidence that the bidder holds an appropriate certificate or
3 registration unless the work to be performed is exempt under
4 section 3.
5 (c) Limitation.--Nothing in this act shall limit the power
6 of a municipality or county:
7 (1) To regulate the quality and character of work
8 performed by contractors through a system of permits, fees
9 and inspections which is designed to secure compliance with
10 and aid in the implementation of State and local building
11 laws.
12 (2) To enforce other laws for the protection of the
13 public health and safety.
14 (3) To collect occupational license taxes and inspection
15 fees for engaging in contracting or examination fees from
16 persons who are registered with the board pursuant to local
17 examination requirements and issue occupational license tax
18 certificates. However, nothing in this act shall be construed
19 to require general contractors, building contractors or
20 residential contractors to obtain additional occupational
21 license tax certificates for specialty work when such
22 specialty work is performed by employees of such contractors
23 on projects for which they have substantially full
24 responsibility and such contractors do not hold themselves
25 out to the public as being specialty contractors.
26 (4) To adopt any system of permits requiring submission
27 to and approval by the municipality or county of plans and
28 specifications for work to be performed by contractors before
29 commencement of the work.
30 (5) To require one bond for each contractor in an amount
20010H2077B2755 - 77 -
1 not to exceed $5,000. Any bond must be equally available to
2 all contractors without regard to the period of time a
3 contractor has been certified or registered and without
4 regard to any financial responsibility requirements. Any such
5 bonds shall be payable to the fund and filed in each county
6 or municipality in which a building permit is requested. Bond
7 reciprocity shall be granted Statewide. All such bonds shall
8 be included in meeting any financial responsibility
9 requirements imposed by any statute or rule. Any contractor
10 who provides a third party insured warranty policy in
11 connection with a new building or structure for the benefit
12 of the purchaser or owner shall be exempt from the bond
13 requirements under this subsection with respect to such
14 building or structure.
15 (6) To refuse to issue permits or issue permits with
16 specific conditions to a contractor who has committed
17 multiple violations when he has been disciplined for each of
18 them by the board and when each disciplinary action has
19 involved revocation or suspension of a license, imposition of
20 an administrative fine of at least $1,000 or probation; or to
21 issue permits with specific conditions to a contractor who,
22 within the previous 12 months, has had disciplinary action
23 other than a citation or letter or guidance taken against him
24 by the department or by a local board or agency which
25 licenses contractors and has reported the action pursuant to
26 subsection (g), for engaging in the business or acting in the
27 capacity of a contractor without a license. However, this
28 subsection does not supersede the provisions of section 9,
29 and no county or municipality may require any certificate
30 holder to obtain a local professional license or pay a local
20010H2077B2755 - 78 -
1 professional license fee as a condition of performing any
2 services within the scope of the certificate holder's
3 Statewide license as established under this act.
4 (d) Certification.--Any official authorized to issue
5 building or other related permits shall, before issuing a
6 permit, ascertain that the applicant contractor is certified or
7 is registered in the area where the construction is to take
8 place.
9 (e) Exemption.--No municipality or county may require the
10 certificate holder issued pursuant to this act to sit for
11 examination to operate within the scope of such certificate.
12 (f) Registration.--To engage in contracting in the
13 territorial area, an applicant shall also be registered with the
14 board, as required by section 14.
15 (g) Report.--Each local board or agency that licenses
16 contractors must transmit quarterly to the board a report of any
17 disciplinary action taken against contractors and of any
18 administrative or disciplinary action taken against unlicensed
19 persons for engaging in the business or acting in the capacity
20 of a contractor including any cease and desist orders issued
21 pursuant to section 9 and any fine issued pursuant to section
22 21.
23 (h) Enforcement.--The local governing body of a county or
24 municipality or its local enforcement body is authorized to
25 enforce the provisions of this act as well as its local
26 ordinances against locally licensed or registered contractors,
27 as appropriate. The local jurisdiction enforcement body may
28 conduct disciplinary proceedings against a locally licensed or
29 registered contractor and may require restitution, impose a
30 suspension or revocation of his local license or a fine not to
20010H2077B2755 - 79 -
1 exceed $5,000, or a combination thereof, against the locally
2 licensed or registered contractor according to ordinances which
3 a local jurisdiction may enact. In addition, the local
4 jurisdiction may assess reasonable investigative legal costs for
5 the prosecution of the violation against the violator, according
6 to such ordinances as the local jurisdiction may enact. In
7 addition to any action the local jurisdiction enforcement body
8 may take against the individual's local license and any fine the
9 local jurisdiction may impose, the local jurisdiction
10 enforcement body shall issue a recommended penalty for board
11 action. This recommended penalty may include a recommendation
12 for no further action or a recommendation for suspension,
13 revocation or restriction of the registration or a fine to be
14 levied by the board, or a combination thereof. The local
15 jurisdiction enforcement body shall inform the disciplined
16 contractor and the complainant of the local license penalty
17 imposed, the board penalty recommended, his rights to appeal and
18 the consequences should he decide not to appeal. The local
19 jurisdiction enforcement body shall, upon having reached
20 adjudication or having accepted a plea of nolo contendere,
21 immediately inform the board of its action and the recommended
22 board penalty. The department, the disciplined contractor or the
23 complainant may challenge the local jurisdiction enforcement
24 body's recommended penalty for board action to the board. A
25 challenge shall be filed within 60 days after the issuance of
26 the recommended penalty to the board. If challenged, there is a
27 presumptive finding of probable cause and the case may proceed
28 without the need for a probable cause hearing. Failure of the
29 department, the disciplined contractor or the complainant to
30 challenge the local jurisdiction's recommended penalty within
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1 the time period set forth in this subsection shall constitute a
2 waiver of the right to a hearing before the board. A waiver of
3 the right to a hearing before the board shall be deemed an
4 admission of the violation, and the penalty recommended shall
5 become a final order according to procedures developed by board
6 rule without further board action. The disciplined contractor
7 may appeal this board action to the district court.
8 (i) Investigation.--The department may investigate any
9 complaint which is made with the department. However, the
10 department may not initiate or pursue any complaint against a
11 registered contractor who is not also a certified contractor
12 where a local jurisdiction enforcement body has jurisdiction
13 over the complaint unless the local jurisdiction enforcement
14 body has failed to investigate and prosecute a complaint or make
15 a finding of no violation within six months of receiving the
16 complaint. The department shall refer the complaint to the local
17 jurisdiction enforcement body for investigation and, if
18 appropriate, prosecution. However, the department may
19 investigate such complaints to the extent necessary to determine
20 whether summary procedures should be initiated. Upon a
21 recommendation by the department, the board may make
22 conditional, suspend or rescind its determination of the
23 adequacy of the local government enforcement body's disciplinary
24 procedures granted under section 14.
25 (j) Disciplinary authority.--Nothing in this subsection
26 shall be construed to allow local jurisdictions to exercise
27 disciplinary authority over certified contractors.
28 (k) Petition.--A local enforcement board may petition the
29 department for issuance of a summary order against a certificate
30 holder or registrant for any violation of this act.
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1 (l) Consumer representative.--No municipal or county
2 government may issue any certificate of competency or license
3 for any contractor after July 1, 2004, unless such local
4 government exercises disciplinary control and oversight over
5 such locally licensed contractors. Each local board that
6 licenses and disciplines contractors must have at least two
7 consumer representatives on that board. If the board has seven
8 or more members, at least three of those members must be
9 consumer representatives. The consumer representative may be any
10 resident of the local jurisdiction who is not and has never been
11 a member or practitioner or a profession regulated by the board
12 or a member of any closely related profession.
13 (m) Civil action.--Unless specifically provided, the
14 provisions of this act shall not be construed to create a civil
15 cause of action.
16 Section 26. Prohibited acts by unlicensed principals,
17 investigation, hearing and penalties.
18 (a) Prohibition.--No uncertified or unregistered person
19 associated with a contracting firm qualified by the licensee
20 under this act shall:
21 (1) conceal or cause to be concealed or assist in
22 concealing from the primary qualifying agent any material
23 activities or information about the contracting firm;
24 (2) exclude or facilitate the exclusion of any aspect of
25 the contracting firm's financial or other business activities
26 from the primary qualifying agent;
27 (3) knowingly cause any part of the contracting firm's
28 activities, financial or otherwise, to be conducted without
29 the primary qualifying agent's supervision; or
30 (4) assist or participate with any certificate holder or
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1 registrant in the violation of any provision of this act.
2 (b) Investigation.--The department shall cause an
3 investigation of any incident where it appears that any
4 uncertified or unregistered person associated with a contracting
5 firm is in violation of this section. When after investigation
6 the department finds there is probable cause to believe this
7 section has been violated, the department shall prepare and file
8 an administrative complaint which shall be served on the
9 uncertified or unregistered person.
10 (c) Violation.--Upon a finding of a violation of this
11 section, the department is authorized to impose a fine of not
12 more than $5,000 and assess reasonable investigative and legal
13 costs for the prosecution of the violation against the violator.
14 Any such fine and assessments shall be paid within 30 days of
15 the filing of the final order with the department. In the event
16 of an appeal, the time for payment of any fine and assessments
17 shall be stayed until a final order is rendered upholding the
18 department decision.
19 (d) Actions.--In the event any fine and assessments imposed
20 by the department are not paid within the time provided for
21 payment, the department may bring action as provided in section
22 3 in the appropriate court for enforcement of the final order,
23 and the court shall not rehear the merit of those matters
24 included in the final order of the department.
25 (e) Penalties.--The department may suspend, revoke or deny
26 issuance or renewal of a certificate, registration or
27 certificate of authority for any individual or business
28 organization that associates a person as an officer, director or
29 partner or in a managerial or supervisory capacity after such
30 person has been found under a final order to have violated this
20010H2077B2755 - 83 -
1 section or was an officer, director, partner, trustee or manager
2 of a business organization disciplined by the board by
3 revocation, suspension or fine in excess of $2,500 upon finding
4 reasonable cause that such person knew or reasonably should have
5 known of the conduct leading to the discipline.
6 Section 27. Pollutant storage systems specialty contractors,
7 certification and restrictions.
8 (a) Registered precision tank testers.--The board shall
9 adopt rules providing standards for registration of precision
10 tank testers who precision test a pollutant storage tank. The
11 Department of Environmental Protection shall approve the
12 methodology, procedures and equipment used and shall approve the
13 applicant as being eligible for registration as a registered
14 precision tank tester. A registered precision tank tester is
15 subject to the provisions of sections 23 and 26 and is
16 considered a contractor operating as a primary qualifying agent
17 for the business entity employing him, which is considered a
18 contracting firm for the purposes of sections 25 and 26. A
19 person who registers under this subsection is exempt from
20 municipal or county registration under section 17 and may
21 operate as a precision tank tester Statewide.
22 (b) Registered internal pollutant storage tank lining
23 applicator.--The board shall adopt rules providing standards for
24 registration of internal pollutant storage tank lining
25 applicators who internally line pollutant storage tanks as a
26 method of upgrading or repairing pollutant storage tanks to
27 prevent discharge of pollutants. The Department of Environmental
28 Protection shall approve the methodology, procedures and
29 equipment used and shall approve the applicant as being eligible
30 for registration as a registered internal pollutant storage tank
20010H2077B2755 - 84 -
1 lining applicator. A registered internal pollutant storage tank
2 lining applicator is subject to the provisions of sections 23
3 and 26, and shall be considered a contractor operating as a
4 primary qualifying agent for the business entity employing him,
5 which entity shall be considered a contracting firm for the
6 purposes of sections 23 and 26. Any person who has registered
7 with the department pursuant to this subsection is exempt from
8 the provisions of prior county or municipality registration, as
9 required under section 17, and is on a Statewide basis.
10 (c) Regulations.--The board shall adopt regulations
11 providing standards for certification of pollutant storage
12 systems specialty contractors, including persons who remove such
13 systems. The board shall provide the proposed regulations to the
14 Department of Environmental Protection for review and comment
15 prior to adoption. The regulations shall include, but not be
16 limited to:
17 (1) Standards for operating as a pollutant storage
18 systems specialty contractor.
19 (2) Requirements for certification as a pollutant
20 storage systems specialty contractor.
21 (3) Requirements for certification without examination
22 of pollutant storage systems specialty contractors for any
23 person who has passed a local licensure examination, a
24 licensure examination in another state or a licensure
25 examination of a national organization, which is at least as
26 stringent as the examination adopted by the board.
27 (d) Certification required.--Notwithstanding any provision
28 of this act to the contrary, no person shall engage in
29 contracting as a pollutant storage systems specialty contractor
30 unless such person is certified as a pollutant storage systems
20010H2077B2755 - 85 -
1 specialty contractor pursuant to this act, nor shall any
2 official authorized to issue building or other related permits
3 issue a permit or permits for the installation or removal of a
4 pollutant storage tank unless such official ascertains that the
5 applicant for such permit or permits is certified as a pollutant
6 storage systems specialty contractor.
7 (e) Penalty.--Any person who operates as a pollutant storage
8 systems specialty contractor, precision tank tester or internal
9 pollutant storage tank lining applicator in violation of this
10 section or any person who violates subsection (d), commits a
11 felony of the third degree.
12 Section 28. Construction Industries Recovery Fund.
13 There is hereby created the Construction Industries Recovery
14 Fund. The fund shall be disbursed as provided in section 32, on
15 order of the board, as reimbursement to any natural person
16 adjudged by a court of competent jurisdiction to have suffered
17 monetary damages or to whom the licensee has been ordered to pay
18 restitution by the board, where the judgment or restitution
19 order is based on a violation of section 27, committed by any
20 contractor, financially responsible officer or business
21 organization licensed under the provisions of this act at the
22 time the violation was committed.
23 Section 29. Conditions for recovery and eligibility.
24 (a) Recovery.--Any person is eligible to seek recovery from
25 the fund after having made a claim and exhausting the limits of
26 any available bond, cash bond, surety, guarantee, warranty,
27 letter of credit or policy of insurance, if all of the following
28 occur:
29 (1) Such person has received final judgment in a court
30 of competent jurisdiction in this Commonwealth in any action
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1 wherein the cause of action was based on a construction
2 contract or the board has issued a final order directing the
3 licensee to pay restitution to the claimant based upon a
4 violation of section 27 where the contract was executed and
5 provided that:
6 (i) such person has caused to be issued a writ of
7 execution upon such judgment, and the officer executing
8 the writ has made a return showing that no personal or
9 real property of the judgment debtor or licensee liable
10 to be levied upon in satisfaction of the judgment can be
11 found or that the amount realized on the sale of the
12 judgment debtor's or licensee's property pursuant to such
13 execution was insufficient to satisfy the judgment;
14 (ii) if such person is unable to comply with
15 subparagraph (i) for a valid reason to be determined by
16 the board, such person has made all reasonable searches
17 and inquiries as to ascertain whether the judgment debtor
18 or licensee is possessed of real or personal property or
19 other assets subject to being sold or applied in
20 satisfaction of the judgment and by his search has
21 discovered no property or assets or has discovered
22 property and assets and has taken all necessary action
23 and proceedings for the application thereof to the
24 judgment but the amount thereby realized was insufficient
25 to satisfy the judgment; or
26 (iii) the claimant has made a diligent attempt to
27 collect the restitution awarded by the board.
28 (2) A claim for recovery is made within two years from
29 the time of the act giving rise to the claim or within two
30 years for the time the act is discovered or should have been
20010H2077B2755 - 87 -
1 discovered with the exercise of due diligence; however, in no
2 event may a claim for recovery be made more than four years
3 after the date of the act giving rise to the claim or more
4 than one year after the conclusion of any civil or
5 administrative action based on the act, whichever is later.
6 (3) Any amounts recovered by such person from the
7 judgment debtor or licensee or from any other source have
8 been applied to the damages awarded by the court or the
9 amount of restitution ordered by the board.
10 (4) Such person is not a person who is precluded by this
11 act from making a claim for recovery.
12 (c) Disqualification.--A person is not qualified to make a
13 claim for recovery from the fund, if:
14 (1) The claimant is the spouse of the judgment debtor or
15 licensee or a personal representative of such spouse.
16 (2) The claimant is a licensee who acted as the
17 contractor in the transaction which is the subject of the
18 claim.
19 (3) Such person's claim is based upon a construction
20 contract in which the licensee was acting with respect to the
21 property owned or controlled by the licensee.
22 (4) Such person's claim is based upon a construction
23 contract in which the contractor did not hold a valid and
24 current license at the time of the construction contract.
25 (5) Such a person was associated in a business
26 relationship with the licensee other than the contract at
27 issue.
28 Section 30. Board powers relating to recovery.
29 With respect to actions for recovery from the fund, the board
30 may intervene, enter an appearance, file an answer, defend the
20010H2077B2755 - 88 -
1 action or take any action it deems appropriate and make take
2 recourse through any appropriate method of review of behalf of
3 the Commonwealth.
4 Section 31. Duty of contractor to notify residential property
5 owner of recovery fund.
6 (a) Notice.--Any agreement or contract for repair,
7 restoration, improvement or construction to residential real
8 property must contain a written statement explaining the
9 consumer's rights under the fund except where the value of all
10 labor and materials does not exceed $2,500. The written
11 statement must be substantially in the following form:
12 Construction Industries Recovery Fund
13 Payment may be available from the Construction Industries
14 Recovery Fund if you lose money on a project performed under
15 contract, where the loss results from specified violations of
16 Commonwealth law by a State-licensed contractor. For
17 information about the recovery fund and filing a claim,
18 contact the Construction Industry Licensing Board at the
19 following telephone number and address:
20 The statement shall be immediately followed by the board's
21 address and telephone number.
22 (b) Penalty.--Upon finding a first violation of subsection
23 (a), the board may fine the contractor up to $500, and the
24 moneys shall be deposited into the fund. Upon finding a second
25 or subsequent violation of subsection (a), the board shall fine
26 the contractor $1,000 per violation and the moneys shall be
27 deposited into the fund.
28 Section 32. Payment from fund.
29 (a) Payment.--Any person who meets all of the conditions
30 prescribed in section 29 may apply to the board to cause payment
20010H2077B2755 - 89 -
1 to be made to such person from the fund in an amount equal to
2 the judgment or restitution order, exclusive of postjudgment
3 interest, against the licensee of $25,000, whichever is less, or
4 an amount equal to the unsatisfied portion of such person's
5 judgment or restitution order, exclusive of postjudgment
6 interest, or $25,000, whichever is less, but only to the extent
7 and amount reflected in the judgment or restitution order as
8 being actual or compensatory damages. The fund is not obligated
9 to pay any judgment or restitution order, or any portion
10 thereof, which is not expressly based on one of the grounds for
11 recovery set forth in section 28.
12 (b) Assignment.--Upon receipt by a claimant under subsection
13 (a) of payment from the fund, the claimant shall assign his
14 additional right, title and interest in the judgment or
15 restitution order to the extent of such payment to the board,
16 and thereupon the board shall be subrogated to the right, title
17 and interest of the claimant and any amount subsequently
18 recovered on the judgment or restitution order by the board to
19 the extent of the right, title and interest of the board therein
20 shall be for the purpose of reimbursing the fund.
21 (c) Limitations.--Payments for claims arising out of the
22 same transaction shall be limited, in the aggregate, to $25,000
23 regardless of the number of claimants involved in the
24 transaction. Payments for claims against any one licensee shall
25 not exceed, in the aggregate, $100,000 annually, up to a total
26 aggregate of $250,000.
27 (d) Order of payment.--Claims shall be paid in the order
28 filed up to the aggregate limits for each transaction and
29 licensee and to the limits of the amount appropriated to pay
30 claims against the fund for the fiscal year in which the claims
20010H2077B2755 - 90 -
1 were filed.
2 (e) Exhaustion.--If the annual appropriation is exhausted
3 with claims pending, such claims shall be carried forward to the
4 next fiscal year.
5 (f) Suspension.--Upon the payment of any amount from the
6 fund in settlement of a claim in satisfaction of a judgment or
7 restitution order against a licensee as described in section 29,
8 the license of such licensee shall be automatically suspended
9 without further administrative action upon the date of payment
10 from the fund. The license of such licensee shall not be
11 reinstated until he has repaid in full, plus interest, the
12 amount paid from the fund. A discharge of bankruptcy does not
13 relieve a person from the penalties and disabilities provided in
14 this section.
15 Section 44. Effective date.
16 This act shall take effect in 60 days.
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