MISSISSIPPI LEGISLATURE
2007 Regular Session
To: Business and Financial Institutions
By: Senator(s) Mettetal
AN ACT TO AMEND SECTION 73-59-1, MISSISSIPPI CODE OF 1972, TO DEFINE THE TERMS "ACTIVE LICENSEE" AND "INACTIVE LICENSEE" IN RELATION TO THE RESIDENTIAL BUILDERS AND REMODELERS LICENSING LAW; TO AMEND SECTION 73-59-3, MISSISSIPPI CODE OF 1972, TO REQUIRE PROOF OF WORKERS' COMPENSATION INSURANCE AND LIABILITY INSURANCE BEFORE OBTAINING A LICENSE; TO AMEND SECTION 73-59-13, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE STATE BOARD OF CONTRACTORS TO ISSUE CEASE AND DESIST ORDERS UNDER THE RESIDENTIAL BUILDERS AND REMODELERS LICENSING LAW; TO AMEND SECTION 73-59-15, MISSISSIPPI CODE OF 1972, TO REVISE THE NUMBER OF SINGLE RESIDENCES ALLOWED TO BE CONSTRUCTED WITHIN ONE YEAR BY A PERSON WITHOUT A LICENSE; TO AMEND SECTION 73-59-17, MISSISSIPPI CODE OF 1972, TO REQUIRE LICENSED RESIDENTIAL BUILDERS AND REMODELERS AT PERMITTED JOB SITES TO DISPLAY THEIR LICENSE NUMBER AND THE STATE ISSUING THE LICENSE; TO AMEND SECTION 31-3-15, MISSISSIPPI CODE OF 1972, TO REQUIRE ANY CONTRACTOR TO DISPLAY AT THE JOB SITE HIS CERTIFICATE OF RESPONSIBILITY NUMBER AND THE STATE ISSUING THE CERTIFICATE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 73-59-1, Mississippi Code of 1972, is amended as follows:
73-59-1. For the purposes of this chapter, the following words shall have the meanings ascribed herein:
(a) "Board" means the State Board of Contractors created in Section 31-3-3, Mississippi Code of 1972.
(b) "Residential builder" means any corporation, partnership or individual who constructs a building or structure for sale for use by another as a residence or who, for a fixed price, commission, fee, wage or other compensation, undertakes or offers to undertake the construction, or superintending of the construction, of any building or structure which is not more than three (3) floors in height, to be used by another as a residence, when the cost of the undertaking exceeds Fifty Thousand Dollars ($50,000.00).
(c) "Remodeler" means any corporation, partnership or individual who, for a fixed price, commission, fee, wage or other compensation, undertakes or offers to undertake the construction, or superintending of the construction, of improvements to an existing residence when the cost of the improvements exceeds Ten Thousand Dollars ($10,000.00).
(d) "Residential construction" means any undertaking described in paragraph (b) of this section performed by a residential builder.
(e) "Residential improvement" means any undertaking described in paragraph (c) of this section performed by a remodeler.
(f) "Active licensee" means any builder or remodeler licensed under this chapter and engaged in building and remodeling.
(g) "Inactive licensee" means any builder or remodeler licensed under this chapter and not engaged in building or remodeling.
SECTION 2. Section 73-59-3, Mississippi Code of 1972, is amended as follows:
73-59-3. (1) Except as otherwise provided in Section 73-59-15, persons who perform or formerly performed residential construction or residential improvement shall be licensed by the board annually as an active licensee or inactive licensee, as appropriate, and, as a prerequisite to obtaining a license or renewal thereof, each shall submit to the board:
(a) Proof of workers' compensation insurance; however, workers' compensation insurance shall not be required for inactive licensees;
(b) A federal employment identification number or social security number;
(c) Proof of general liability insurance; however, liability insurance shall not be required for inactive licensees.
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(2) The board shall issue or renew a license to an active or inactive residential builder or remodeler upon payment to the board of the license fee. The initial license fee shall be Fifty Dollars ($50.00). The license fee may thereafter be increased or decreased by the board and cannot exceed One Hundred Dollars ($100.00); however, the receipts from fees collected by the board shall be no greater than the amount required to pay all costs and expenses incurred by the board in enforcing the provisions of this chapter. Twenty-five Dollars ($25.00) of the fee required by this section which is assessed to residential builders licensed under the provisions of Section 73-59-1 et seq. shall be deposited to the Construction Education Fund created pursuant to Section 31-3-14 and shall be distributed to the Mississippi Housing Institute. The remaining fees collected under this chapter shall be deposited into the special fund in the State Treasury known as the "State Board of Contractor's Fund" created pursuant to Section 31-3-17 and shall be used for the administration and enforcement of this chapter and as provided in Section 31-3-14. Amounts in such fund shall not lapse into the State General Fund at the end of a fiscal year. Interest accrued to such fund shall remain in the fund. All expenditures from the special fund shall be by requisition to the Department of Finance and Administration, signed by the executive secretary of the board and countersigned by the chairman or vice chairman of the board.
(3) The license shall expire on the last day of the twelfth month following its issuance or renewal and shall become invalid unless renewed. The board shall notify by mail every licensee under this chapter of the date of the expiration of his license and the amount of the fee required for renewal of the license for one (1) year. Such notice shall be mailed within thirty (30) days prior to the expiration date of the license. The failure on the part of any licensee to renew his license annually in such twelfth month shall not deprive such licensee of the right of renewal, provided that renewal is effected within one hundred twenty (120) days after the expiration date of the license by payment of the license fee plus a penalty of ten percent (10%) of the license fee. A new license required to replace a revoked, lost, mutilated or destroyed license may be issued, subject to the rules of the board, for a charge of not more than Twenty-five Dollars ($25.00). An inactive licensee may become an active licensee upon application meeting all the requirements of this section.
(4) Any person who is not a resident of the State of Mississippi who desires to perform residential construction or residential improvement shall be licensed to perform such construction or improvement as provided by this chapter.
SECTION 3. Section 73-59-13, Mississippi Code of 1972, is amended as follows:
73-59-13. (1) The board, upon satisfactory proof and in accordance with the provisions of this chapter and the regulations of the board pertaining thereto, is authorized to take the disciplinary actions provided for in this section against any person for any of the following reasons:
(a) Violating any of the provisions of this chapter or the rules or regulations of the board pertaining to the work of residential building or residential improvement;
(b) Fraud, deceit or misrepresentation in obtaining a license;
(c) Gross negligence or misconduct;
(d) Engaging in work of residential building or residential improvement on an expired license or while under suspension or revocation of license unless the suspension or revocation be abated in accordance with this chapter;
(e) Loaning a license to an unlicensed person;
(f) Failing to maintain workers' compensation insurance, if applicable; or
(g) Failing to pay for goods or services for which the builder is contractually bound.
(2) Any person, including members of the board, may prefer charges against any other person for committing any of the acts set forth in subsection (1) of this section. Such charges shall be sworn to, either upon actual knowledge or upon information and belief, and shall be filed with the board.
The board shall investigate all charges filed with it and, upon finding reasonable cause to believe that the charges are not frivolous, unfounded or filed in bad faith, may, in its discretion, cause a hearing to be held, at a time and place fixed by the board, regarding the charges and may compel the accused by subpoena to appear before the board to respond to such charges.
The board may send a certified inspector to inspect the building or structure which is the subject of a complaint or the board may use a county certified building inspector from the county where the building or structure is located to inspect the building or structure which is the subject of a complaint. The report of the inspector shall be used in the investigation and the determination of the board. The provisions above shall only apply to hearings.
No disciplinary action may be taken until the accused has been furnished both a statement of the charges against him and notice of the time and place of the hearing thereon, which shall be personally served on such accused or mailed by certified mail, return receipt requested, to the last known business or residence address of the accused not less than thirty (30) days prior to the date fixed for the hearing. The complaining party shall be notified of the place and time of the hearing by mail to the last known business or residence address of the complaining party not less than thirty (30) days prior to the date fixed for the hearing.
(3) At any hearing held hereunder, the board shall have the power to subpoena witnesses and compel their attendance and may also require the production of books, papers, documents or other materials which may be pertinent to the proceedings. The board may designate or secure a hearing officer to conduct the hearing. All evidence shall be presented under oath, which may be administered by any member of the board, and thereafter the proceedings may, if necessary, be transcribed in full by a court reporter and filed as part of the record in the case. Copies of such transcriptions may be provided to any party to the proceedings at a price reflecting actual cost, to be fixed by the board.
All witnesses who are subpoenaed and appear in any proceedings before the board shall receive the same fees and mileage as allowed by law to witnesses in county, circuit and chancery court pursuant to Section 25-7-47, Mississippi Code of 1972, and all such fees shall be taxed as part of the costs in the case.
When, in any proceeding before the board, any witness shall fail or refuse to attend upon subpoena issued by the board, shall refuse to testify, or shall refuse to produce any books and papers the production of which is called for by the subpoena, the attendance of such witness and the giving of his testimony and the production of the books and papers shall be enforced by any court of competent jurisdiction of this state in the manner provided for the enforcement of attendance and testimony of witnesses in civil cases in the courts of this state.
The accused and the complaining party shall have the right to be present at the hearing in person, by counsel or other representative, or both. The board is authorized for proper cause to continue or recess the hearing as may be necessary.
(4) At the conclusion of the hearing, the board may either decide the issue at that time or take the case under advisement for further deliberation. The board shall render its decision not more than ninety (90) days after the close of the hearing and shall forward to the last known business or residence address of the accused, by certified mail, return receipt requested, a written statement of the decision of the board.
(5) If a majority of the board finds the accused guilty of the charges filed, the board may:
(a) Issue a public or private reprimand;
(b) Suspend or revoke the license of the accused; or
(c) In lieu of or in addition to any reprimand, suspension or revocation, assess and levy upon the guilty party a monetary penalty of not less than One Hundred Dollars ($100.00) nor more than Five Thousand Dollars ($5,000.00) for each violation.
(6) A monetary penalty assessed and levied under this section shall be paid to the board upon the expiration of the period allowed for appeal of such penalties under this section or may be paid sooner if the guilty party elects. Money collected by the board under this section shall be deposited to the credit of the State Board of Contractors' Fund.
When payment of a monetary penalty assessed and levied by the board in accordance with this section is not paid when due, the board shall have the power to institute and maintain proceedings in its name for enforcement of payment in the chancery court of the county of residence of the delinquent party; however, if the delinquent party is a nonresident of the State of Mississippi, such proceedings shall be in the Chancery Court of the First Judicial District of Hinds County, Mississippi.
(7) When the board has taken a disciplinary action under this section, the board may, in its discretion, stay such action and place the guilty party on probation for a period not to exceed one (1) year upon the condition that such party shall not further violate either the laws of the State of Mississippi pertaining to the practice of residential construction or residential remodeling or the bylaws, rules or regulations promulgated by the board.
(8) The board shall not assess any of the costs of disciplinary proceedings conducted pursuant to this section against the prevailing party.
(9) The power and authority of the board to assess and levy the monetary penalties provided for in this section shall not be affected or diminished by any other proceedings, civil or criminal, concerning the same violation or violations except as provided in this section.
(10) The board, for sufficient cause, may reissue a revoked license whenever a majority of the board members vote to do so.
(11) Whenever it appears to the board that any person has engaged or is about to engage in any act or practice constituting a violation of any provision of this chapter or any rule or order issued hereunder, it may, in its discretion, and in addition to other remedies authorized by law, issue a cease and desist order, with or without a prior notice and hearing, against the person or persons engaged in the prohibited activities. Such cease and desist order shall direct the person or persons to cease and desist from such illegal activity.
(12) Any person aggrieved by any order or decision of the board may appeal within ten (10) days from the date of adjournment of the session at which the board rendered such order or decision, and may embody the facts, order and decision in a bill of exceptions which shall be signed by the person acting as chairman of the board. The board shall transmit the bill of exceptions to either the chancery court of the county of residence of the appellant, or the Chancery Court of the First Judicial District of Hinds County, at the election of the appellant, and the court or chancellor shall hear and determine the same either in termtime or in vacation, on the case as presented by the bill of exceptions, as an appellant court, and shall affirm or reverse the judgment. If the judgment be reversed, the chancery court or chancellor shall render such order or judgment as the board ought to have rendered, and certify the same to the board; and costs shall be awarded as in other cases. The board may employ counsel to defend such appeals, to be paid out of the funds in the State Board of Contractors' Fund.
The remedies provided under this chapter for any aggrieved applicant shall not be exclusive, but shall be cumulative of and supplemental to any other remedies which he may otherwise have in law or in equity, whether by injunction or otherwise.
(13) Any political subdivision or agency of this state which receives a complaint against a residential builder or remodeler shall, in addition to exercising whatever authority such political subdivision or agency has been given over such complaint, forward the complaint to the board.
(14) In addition to the reasons specified in subsection (1) of this section, the board shall be authorized to suspend the license of any licensee for being out of compliance with an order for support, as defined in Section 93-11-153. The procedure for suspension of a license for being out of compliance with an order for support, and the procedure for the reissuance or reinstatement of a license suspended for that purpose, and the payment of any fees for the reissuance or reinstatement of a license suspended for that purpose, shall be governed by Section 93-11-157 or 93-11-163, as the case may be. Actions taken by the board in suspending a license when required by Section 93-11-157 or 93-11-163 are not actions from which an appeal may be taken under this section. Any appeal of a license suspension that is required by Section 93-11-157 or 93-11-163 shall be taken in accordance with the appeal procedure specified in Section 93-11-157 or 93-11-163, as the case may be, rather than the procedure specified in this section. If there is any conflict between any provision of Section 93-11-157 or 93-11-163 and any provision of this chapter, the provisions of Section 93-11-157 or 93-11-163, as the case may be, shall control.
SECTION 4. Section 73-59-15, Mississippi Code of 1972, is amended as follows:
73-59-15. (1) This chapter shall not apply to:
(a) Agricultural buildings, buildings used for agricultural purposes, buildings constructed as a community effort, or tenant houses;
(b) Any person who undertakes construction or improvement on his own residence, or who acts as his own general contractor in the performance of construction or improvement on his own residence, or who acts under the supervision of the owner-occupant who is the general contractor;
(c) Any person who undertakes residential construction or improvement, or who acts as a general contractor in the performance of residential construction or improvement, or who acts under supervision of the owner-occupant with respect to residential construction or improvement, when the owner of such construction or improvement is related to such person by consanguinity or direct affinity;
(d) The owners of property who supervise, superintend, oversee, direct or in any manner assume charge of the construction, alteration, repair, improvement, movement, demolition, putting up, tearing down or maintenance of any building, railroad, excavation, project, development, improvement, plant facility or any other construction undertaking on such property for use by such owner and which will not be for sale, rent, public use or public assembly;
(e) An employee of a licensed residential builder;
(f) A contractor holding a valid license or certificate of responsibility for general construction from the board;
(g) Any nonresident contractor holding a valid license or certificate of responsibility for general construction;
(h) Any person who constructs one (1) single residence or less within a period of one (1) year in any county or municipality which does not require a building permit or any local certification for such construction.
(2) A person specified in subsection (1)(b) shall not make more than one (1) application for a permit to construct a single residence or shall not construct more than one (1) single residence within a period of one (1) year. There shall be a rebuttable presumption that such person intends to construct for the purpose of resale, lease, rent or any similar purpose if more than one (1) application is made for a permit to construct a single residence or if more than one (1) single residence is constructed within a period of one (1) year.
(3) The provisions of this section shall not apply to builders and remodelers who are not domiciled in the State of Mississippi. Builders and remodelers who are not domiciled in the State of Mississippi are not required to be licensed under the provisions of this chapter if the state in which they are domiciled requires licensing and the licensing state's requirements are at least the equivalent of those requirements provided in this chapter.
SECTION 5. Section 73-59-17, Mississippi Code of 1972, is amended as follows:
73-59-17. (1) The building official, or other authority charged with the duty of issuing building or similar permits, of any municipality or county, shall refuse to issue a permit for any undertaking which would classify the applicant as a residential builder or remodeler under this chapter unless the applicant has furnished evidence that he is either licensed as required by this chapter or exempt from the requirements of this chapter. The building official, or other authority charged with the duty of issuing building or similar permits, shall also report to the board the name and address of any person who, in his opinion, has violated this chapter by accepting, or contracting to accomplish, work which would classify the person as a residential builder or remodeler under this chapter without a license or acknowledgement.
(2) Upon the issuance of a building permit to a residential builder or remodeler by the building official, or other authority charged with the duty of issuing building or similar permits, of any municipality or county, the licensed builder or remodeler shall exhibit a sign at the permitted job site which shall include, prominently displayed, the license number of the builder or remodeler and the state issuing the license.
SECTION 6. Section 31-3-15, Mississippi Code of 1972, is amended as follows:
31-3-15. (1) No contract for public or private projects shall be issued or awarded to any contractor who did not have a current certificate of responsibility issued by the board at the time of the submission of the bid, or a similar certificate issued by a similar board of another state which recognizes certificates issued by the board. Any contract issued or awarded in violation of this section shall be null and void.
(2) Any contractor awarded a contract for public or private projects shall exhibit a sign at the job site which shall include, prominently displayed, his certificate of responsibility number and the name of the state issuing the certificate.
SECTION 7. This act shall take effect and be in force from and after July 1, 2007.