Senate Bill 2578

AN ACT TO CREATE THE "ROOFING CONTRACTOR REGISTRATION ACT"; TO DEFINE CERTAIN TERMS; TO REQUIRE ROOFING CONTRACTOR REGISTRATION WITH THE STATE BOARD OF CONTRACTORS; TO PROVIDE PENALTIES FOR VIOLATIONS OF THE ACT; TO AUTHORIZE EMPLOYMENT OF PERSONNEL SUBJECT TO FUNDING; TO ALLOW PROMULGATION OF FORMS BY THE STATE BOARD OF CONTRACTORS; TO PROVIDE APPLICATION PROCEDURE AND TO REQUIRE LIABILITY INSURANCE IN MINIMAL AMOUNTS; TO REQUIRE CERTAIN NOTIFICATION UPON INSURANCE CANCELATION OR LAPSE; TO REQUIRE PROOF OF WORKERS' COMPENSATION COVERAGE OR EXEMPTION; TO REQUIRE CERTAIN STATEMENTS UNDER OATH ON THE APPLICATION AND RENEWAL FORMS; TO PROVIDE GROUNDS FOR REFUSAL TO ISSUE ROOFING CONTRACTOR REGISTRATION; TO PROVIDE REGISTRATION FEES; TO REQUIRE NOTIFICATION FOR CHANGES TO REGISTRANT INFORMATION; TO PROVIDE FOR THE RENEWAL OF A REGISTRATION CERTIFICATE; TO ALLOW PUBLIC INSPECTION OF ROOFING CONTRACTOR REGISTRATION; TO CREATE THE ROOFING CONTRACTOR REGISTRATION SPECIAL FUND IN THE STATE TREASURY; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Short title. This act shall be known and may be cited as the "Roofing Contractor Registration Act."

SECTION 2. Definitions. As used in this act:

(a) "Roofing contractor" means any person, including a subcontractor and nonresident contractor, engaged in the business of commercial or residential roofing services for a fee, or who offers to engage in or solicits roofing-related services, including construction, installation, renovation, repair, maintenance, alteration, and waterproofing. Roofing contractor shall not mean a person engaged in the demolition of a structure or the cleanup of construction waste and debris that contains roofing material nor a person working under the direct supervision of the roofing contractor who is hired either as an employee, day laborer, or contract laborer.

(b) "Nonresident contractor" means any contractor who has not established and maintained a place of business as a roofing contractor in this state within the preceding year, or who claims residency in another state, or who has not submitted an income tax return as a resident of this state within the preceding year.

(c) "Person" means any individual, firm, partnership, association, corporation, limited liability company, or other group or combination thereof acting as a unit, unless the intent to give a more limited meaning is disclosed clearly by this act.

(d) "Public contract" means a contract with the State of Mississippi, its political subdivisions, or any board, commission, or department thereof, or with any board of county commissioners, or with any city council, school board, or with any state or municipal agency, or with any other public board, body, commission, or agency authorized to award contracts for the construction or reconstruction of public work and includes subcontracts undertaken to perform works covered by the original contract or any part thereof.

SECTION 3. Registration; fine. (1) A person may not engage in the business nor act in the capacity of a roofing contractor within this state nor may that person bring or maintain any claim, action, suit, or proceeding in any court of this state related to the person's business or capacity as a roofing contractor without a valid registration as provided in this act.

(2) A person who fails to obtain a valid registration prior to acting as a roofing contractor as defined in this act, a person who acts as a roofing contractor while his or her registration is suspended or revoked, or a person who violates any provision of this act shall be guilty of a misdemeanor, and upon conviction, punishable by a fine not to exceed Five Hundred Dollars ($500.00) for each violation. More than one (1) violation in any twelve-month period shall be grounds for the suspension of the registration, and shall cause the person to be ineligible for registration for a period not to exceed twelve (12) months.

SECTION 4. State Board of Contractors. The State Board of Contractors is authorized to employ personnel and procure such supplies and equipment as may be necessary to carry out and implement the provisions of this act, subject to budgetary limitations and funding. The State Board of Contractors may promulgate forms to implement the provisions of this act. The State Board of Contractors may administer any provision of this act through use of the Internet or other technology as deemed necessary or appropriate.

SECTION 5. Obtaining a roofing contractor registration; refusal of registration. (1) To obtain a roofing contractor registration under this act, an applicant who is eighteen (18) years of age or older shall submit, on forms prescribed by the State Board of Contractors, an application under oath containing a statement of the applicant's experience and qualifications as a roofing contractor, if any, the applicant's name, physical address, business name and address and place of incorporation, if different, information on any other person who will be authorized to act as the business entity, and the applicant's phone number. A copy of the roofing contractor's certificate of liability insurance shall be filed with the application. Any insurance company issuing a liability policy to a roofing contractor pursuant to the provisions of this act shall be required to notify the State Board of Contractors in the event such liability policy is cancelled for any reason or lapses for nonpayment of premiums. All registrations granted under this act shall be suspended on the date of the policy cancellation. The State Board of Contractors must receive proof of insurance prior to restoring the registration. In addition, the roofing contractor shall submit proof that the contractor has secured workers' compensation coverage satisfactory under the Workers' Compensation Act, or an affidavit of exemption or self-insurance as authorized pursuant to the Workers' Compensation Act. If the State Board of Contractors deems it appropriate or necessary, the State Board of Contractors may also require other information to be included on the application form to assist the State Board of Contractors in registering the person as a contractor. The application shall contain statements that the applicant desires the issuance of a roofing contractor registration certificate; that the applicant will comply with the provisions of this act; that the applicant will comply with state laws and local ordinances relating to standards and permits; that the applicant has or has not been registered or licensed as a roofing contractor in another state and whether any disciplinary action was taken against such registration or license or whether it is still in good standing; and that the nonresident applicant appoints the Secretary of State as legal service agent for all lawful process to be served upon the applicant for work performed in this state or as otherwise provided in this act.

(2) The State Board of Contractors shall refuse to register any person if the State Board of Contractors determines:

(a) The application contains false, misleading, or incomplete information;

(b) The applicant fails or refuses to provide any information requested by the State Board of Contractors;

(d) The applicant is ineligible for registration due to a suspended or revoked registration in this state;

(e) The nonresident applicant has a revoked or suspended registration or license required by law for roofing contractors in another state; or

(f) The applicant has failed or refuses to submit any taxes due in this state.

(3) The State Board of Contractors shall notify the applicant in writing if the board denies a registration or renewal certificate, and shall provide the applicant an opportunity to respond to or cure any defect in the written application or renewal for a period of ten (10) days from the date of the written notification. An applicant aggrieved by a decision of the State Board of Contractors denying a registration or renewal may appeal the decision as provided in the Mississippi Administrative Procedures Act, Section 25-43-1.101 et seq., or the applicant may reapply after a ninety-day waiting period, if otherwise eligible under the provisions of this act. The application and renewal fees shall not be refundable.

(4) The State Board of Contractors shall classify as not in good standing the registration of any roofing contractor who fails to:

(a) Maintain liability insurance coverage;

(b) Maintain workers' compensation coverage satisfactory under the Workers' Compensation Law, Section 71-3-1 et seq., or provide an affidavit of exemption or self-insurance as authorized pursuant to the Workers' Compensation Law;

(d) File or renew a trade name registration;

(e) Maintain or renew a roofing contractor registration as provided in this act;

(f) Notify the State Board of Contractors of a change in name, address, legal business entity, legal service agent, or adjudication by a court of competent jurisdiction for a violation of this act;

(g) Maintain a registration as required by law in another state while registered in this state as a nonresident roofing contractor; or

(h) File and pay all taxes when due in this state.

(5) The State Board of Contractors shall send a written notice to the person when his or her registration is not in good standing. Any roofing contractor who has been notified by the State Board of Contractors that his or her registration is not in good standing shall cease soliciting or entering new roofing services and projects as of the date of such notification; however, the roofing contractor shall be allowed to complete roofing projects where actual physical work has begun prior to the date of issuance of the notice that his or her registration is not in good standing. The roofing contractor must disclose the change in standing to any homeowner or other person who has an interest in any job covered under this act. Upon notice of a change in standing, the homeowner shall have the option to cancel the contract. The roofing contractor will be owed the actual cost incurred for materials and the market value of labor already incurred on the job. The roofing contractor must obtain an updated authorization from the homeowner and other parties of interest if there is an agreement to continue the job as originally negotiated. If the roofing contractor fails to correct the deficiency specified in the notice by evidence satisfactory to the State Board of Contractors within thirty (30) days of the date of the notice, or if the roofing contractor solicits or enters into new roofing services contracts or projects while the roofing contractor's registration is not in good standing, or while such registration is suspended or revoked, the roofing contractor shall be in violation of the provisions of this act. Any registration that remains not in good standing for a sixty-day period shall be suspended on the sixtieth day from the date of issuance of the notice to the roofing contractor that his or her registration is not in good standing. Any registration that remains not in good standing, and is suspended for such cause, shall be revoked on the ninetieth day from the date of issuance of the notice to the roofing contractor that his or her registration is not in good standing. The State Board of Contractors shall notify the roofing contractor upon suspension or revocation of his or her registration for failure to comply in bringing such registration into good standing as required by law. The roofing contractor may reinstate his or her registration to good standing by paying the required fees provided in Section 9 of this act and complying with all other requirements for issuance of a registration in good standing. Any person aggrieved by the decision of the State Board of Contractors to suspend or revoke a registration pursuant to this section may appeal such decision as provided in the Administrative Procedures Act.

SECTION 6. Registration fee. (1) At the time of making application for a roofing contractor registration certificate pursuant to this act, the applicant shall pay to the State Board of Contractors a fee of Seventy-five Dollars ($75.00) for the annual registration certificate.

(2) All monies collected by the State Board of Contractors for roofing contractor registration applications, renewals and other fee assessments shall be deposited into the Roofing Contractor Registration Revolving Fund created in Section 13 of this act and such funds shall be used by the State Board of Contractors to implement and administer the provisions of this act.

(3) A renewal fee for a roofing contractor registration shall be Seventy-five Dollars ($75.00) for the annual renewal registration certificate.

SECTION 7. Applicability of Roofing Contractor Registration Act. (1) This act does not apply to:

(a) An actual owner of residential or farm property who physically performs, or has a family member or members, employee or employees who perform with or without remuneration, roofing services including, construction, installation, renovation, repair, maintenance, alteration, waterproofing, or removal of materials or structures on property owned by such person;

(b) Any authorized employee, representative or representatives of the United States government, the State of Mississippi, or any county, municipality, or other political subdivision of this state;

(c) Any person who furnishes any fabricated or finished product, material, or article of merchandise which is not incorporated into or attached to real property by such person so as to become affixed thereto; or

(d) Churches or other charitable entities that provide roof repairs or replacements at no charge using volunteer labor.

(2) Any administrative or governing body with authority to enter into public contracts shall require individual roofing contractor registration for purposes of such persons submitting or entering into any bid or contract.

SECTION 8. Change in roofing contractor's name, address, legal service agent, or cease of business; notification of State Board of Contractors. Not later than ten (10) days after the date of a change in a roofing contractor's name, address, or legal service agent, or upon a registered roofing contractor ceasing business as a roofing contractor, the person shall notify the State Board of Contractors of the change on a form provided by the State Board of Contractors. A name, address, or legal service agent change shall be accompanied by a fee not exceeding Twenty-five Dollars ($25.00) to be set by the State Board of Contractors. A person may not change his or her name under an active registration certificate if the change is associated with a change in the legal status of the business entity other than a change in marital status. Doing business under a new business name or a change in legal status of a business requires issuance of a new registration certificate. When a registered roofing contractor ceases to be active as a roofing contractor, the State Board of Contractors shall suspend the registration certificate of such contractor.

SECTION 9. Certificate of renewal. (1) Any roofing contractor registration certificate issued under this act may be renewed for each successive fiscal year by obtaining from the State Board of Contractors a certificate of renewal. To obtain a certificate of renewal, the person shall file with the State Board of Contractors a renewal application by June 30 of each year and pay the renewal fee. The application for renewal shall require statements under oath that the applicant has properly submitted income and employment taxes due in this state; whether or not the applicant has been convicted of any felony offense, and the nature of such offense, since issuance of the prior registration; and whether or not the applicant has been adjudicated by a court of competent jurisdiction for any violation of this act. The State Board of Contractors may forward a copy of any information in an application for renewal to the Mississippi Department of Revenue and any other state agency. The applicant shall include with the renewal application a copy of the certificate of liability insurance, unless the State Board of Contractors has a current valid certificate of insurance on file, proof of workers' compensation coverage, unless exempt under the Workers' Compensation Law, and, if applicable, a copy of the current registration certificate required by law for roofing contractors. The renewal application need not be notarized.

(2) The State Board of Contractors shall refuse to renew a roofing contractor's registration certificate for any reason stated in Section 5(2) of this act. The State Board of Contractors shall notify the applicant in writing if the State Board of Contractors denies the renewal as provided in Section 5(3) of this act.

(3) If any roofing contractor fails to file a renewal application by the June 30 deadline that contractor's registration shall not be in good standing. A roofing contractor has a thirty-day grace period after June 30 of each year to renew the registration certificate without a late fee. The late fee shall be set by the State Board of Contractors and such fee shall not exceed One Hundred Dollars ($100.00). A roofing contractor registration certificate not renewed by August 30 of each year shall be suspended for failure to renew, and on January 1 of each year, if a roofing contractor's registration certificate still has not been renewed, it shall be revoked for failure to renew.

(4) (a) A roofing contractor desiring to renew a registration certificate that has been suspended for any cause provided in this act shall be assessed a fee equal to twice the amount of the fee established by Section 6(3) of this act.

(b) The State Board of Contractors shall assess a reinstatement fee not exceeding Three Hundred Dollars ($300.00) to be set by the State Board of Contractors plus the fee established by Section 6 of this act for any registration that has been revoked for any cause provided in this act.

(c) A roofing contractor submitting an application for registration after suspension or revocation of that contractor's registration certificate must be otherwise eligible for registration under this act.

(5) The State Board of Contractors shall include a registration status notation in a roofing contractor's record if the status of registration changes from an active and valid registration to not in good standing, denied, suspended or revoked.

SECTION 10. Indexed record of roofing contractors. The State Board of Contractors shall maintain in the State Board of Contractors' office, open to public inspection during normal office hours, a complete indexed record of all roofing contractor registrations and information maintained on individual roofing contractors. The State Board of Contractors may dispose of an inactive roofing contractor file after three (3) years. Before disposal and upon written request by any person, the State Board of Contractors shall furnish a certified copy of any information maintained on an individual roofing contractor upon receipt of the sum of Ten Dollars ($10.00) for each annual record. Each certified copy of a roofing contractor's record from the State Board of Contractors shall be received in all courts in this state as prima facie evidence of the facts stated therein. The State Board of Contractors may condense or provide an abstract of a roofing contractor's record for public inspection at any time for purposes of data management; provided, a complete record is available for public inspection upon written request.

SECTION 11. Contractor's agent for service of process. Every applicant for a roofing contractor's registration who is a nonresident contractor as defined by this act, by signing and filing the application, appoints the Secretary of State as the applicant's true and lawful agent upon whom may be served all lawful process in any action or proceeding against such nonresident contractor for construction projects performed in this state. Such appointment in writing is evidence of the roofing contractor's consent that any such process against the contractor which is so served upon the Secretary of State shall be of the same legal force and effect as if served upon the contractor personally within this state. Registered foreign corporations, registered foreign limited liability companies, foreign limited liability partnerships and foreign limited partnerships entitled to do business in this state and having a current registered agent and registered address on file in the Office of the Secretary of State need not appoint the Secretary of State as agent for service of process under this section. Within ten (10) days after service of the summons upon the Secretary of State, notice of such service with the summons and complaint in the action shall be sent to the defendant roofing contractor at the defendant contractor's last-known address by registered or certified mail with return receipt requested and proof of such mailing shall be attached to the summons. The Secretary of State shall keep a record of all process served upon the Secretary of State under this section, showing the day and hour of service. Whenever service of process was made under this section, the court, before entering a default judgment, or at any stage of the proceeding, may order such continuance as may be necessary to afford the defendant contractor reasonable opportunity to defend any action pending against the defendant contractor.

SECTION 12. Construction of act. This act shall be construed to be in addition to, and not in lieu of, any required licensure of persons for certain professions and trades in this state, and further, this act shall not be deemed to conflict with or affect the authority of any state or local agency, board or commission whose duty and authority is to administer or enforce any law or ordinance or to establish, administer or enforce any policy, rule, qualification or standard for any trade or profession.

SECTION 13. Roofing Contractor Registration Revolving Fund. There is hereby created in the State Treasury a revolving fund for the State Board of Contractors to be designated the "Roofing Contractor Registration Revolving Fund." The fund shall be a continuing fund, not subject to fiscal year limitations, and shall consist of application and renewal fees, late fees, administrative fees, reinstatement fees, and any other monies collected pursuant to this act. All monies accruing to the credit of the fund are hereby appropriated and may be budgeted and expended by the State Board of Contractors for implementation and administration of this act. Expenditures from the fund shall be made upon warrants issued by the State Treasurer against claims filed as prescribed by law with the Executive Director of the Department of Finance and Administration for approval and payment.

SECTION 14. Additional registration prohibited. No political subdivision, or governmental entity created by or acting on the authority of a political subdivision, shall use this act to impose any additional registration or permitting requirement.

SECTION 15. This act shall take effect and be in force from and after July 1, 2013.