GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	1 

HOUSE BILL 1299

Short Title:  Fire Protection Contractors.	(Public)
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Sponsors: Representatives Brawley; Bowie, Brown, Creech, Decker, Grimmer, Privette, and Robinson.
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Referred to:  Rules.
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April 12, 1989

A BILL TO BE ENTITLED
AN ACT TO PROVIDE FOR THE LICENSURE AND QUALIFICATION OF FIRE PROTECTION CONTRACTORS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 87-1 reads as rewritten:
"§ 87-1. ‘General contractor' defined; exceptions.
(a)	For the purpose of this Article any person or firm or corporation who for a fixed price, commission, fee or wage, undertakes to bid upon or to construct or who undertakes to superintend or manage, on his own behalf or for any person, firm or corporation that is not licensed as a general contractor pursuant to this Article, the  construction of any building, highway, public utilities, grading or any improvement or structure where the cost of the undertaking is thirty thousand dollars ($30,000) or more, shall be deemed to be a ‘general contractor' engaged in the business of general contracting in the State of North Carolina.
This subsection shall not apply to persons or firms or corporations furnishing or erecting industrial equipment, power plant equipment, radial brick chimneys, and monuments.
This subsection shall not apply to any person or firm or corporation who constructs a building on land owned by that person, firm or corporation when such building is intended for use by that person, firm or corporation after completion.
(b)	Notwithstanding the monetary limitation prescribed in subsection (a) of this section, it shall be unlawful for any person, firm, or corporation, for compensation, to undertake to superintend, or manage on his own behalf or for any other person, firm, or corporation that is not licensed as a fire protection contractor pursuant to this Article, the layout, fabrication, installation, altering, or repairing of a fire protection system unless that person, firm, or corporation holds a license as a fire protection contractor.
For purposes of this Article:
(1)	‘Fire protection contractor' means a contractor whose business includes the execution of contracts requiring the ability, experience, knowledge, science, and skill to lay out, fabricate, install, inspect, alter, repair, or service all types of fire protection systems.  This definition shall not be construed to prevent a qualified architect or professional engineer from designing any type of fire protection system.
(2)	A ‘fire protection system' consists of an automatic or manual sprinkler system designed to protect the interior or exterior of a building or structure from fire.  These systems include, but are not limited to, wet pipe and dry pipe sprinkler systems, water spray systems, foam water sprinkler systems, and foam water spray systems.  These systems also include the overhead piping, underground fire mains, valves, fire hydrants, combination standpipes, inside hose connections, air lines, and thermal systems used in connection with the sprinklers, and tanks and pumps connected to them.
This subsection shall not apply to owners of property who are building or improving farm outbuildings nor is a licensed plumbing contractor required to be certified under this subsection to install standpipe systems having no connection with an automatic sprinkler system.”
Sec. 2.  G.S. 87-10 reads as rewritten:
"§ 87-10. Application for license; examination; certificate; renewal.
Anyone seeking to be licensed as a general contractor or as a fire protection contractor in this State shall file an application for an examination on a form provided by the Board, on or before the first day of the month immediately preceding the month in which the examination is given, accompanied by an examination fee of twenty-five dollars ($25.00) and by the sum of one hundred dollars ($100.00) if the application is for an unlimited license, the sum of seventy-five dollars ($75.00) if the application is for an intermediate license, the sum of fifty dollars ($50.00) if the application is for a limited  license, or the sum of one hundred dollars ($100.00) if the application is for a fire protection contractor's license; the fees and sum accompanying any application shall be nonrefundable. The holder of an unlimited license shall be entitled to act as general contractor without restriction as to value of any single project; the holder of an intermediate license shall be entitled to act as general contractor for any single project with a value of up to five hundred thousand dollars ($500,000); the holder of a limited license shall be entitled to act as general contractor for any single project with a value of up to one hundred seventy-five thousand dollars ($175,000); a fire protection contractor shall be entitled to do all things authorized in G.S. 87-1(b); and the license certificate shall be classified in accordance with this section. Before being entitled to an examination an applicant must show to the satisfaction of the Board from the application and proofs furnished that the applicant is possessed of a good character and is otherwise qualified as to competency, ability, integrity, and financial stability, and that the applicant has not committed or done any act, which, if committed or done by any licensed contractor would be grounds under the provisions hereinafter set forth for the suspension or revocation of contractor's license, or that the applicant has not committed or done any act involving dishonesty, fraud, or deceit, or that the applicant has never been refused a license as a general contractor or as a fire protection contractor, nor had such license revoked, either in this State or in another state, for reasons that should preclude the granting of the license applied for, and that the applicant has never been convicted of a felony involving moral turpitude, relating to building or contracting, or involving embezzlement or misappropriation of funds or property entrusted to the applicant: Provided, no applicant shall be refused the right to an examination, except in accordance with the provisions of Chapter 150B of the General Statutes.
The Board shall conduct an examination, either oral or written, of  all applicants for license to ascertain the ability of the applicant to make a practical application of his knowledge of the profession of  contracting, under the classification contained in the application, and to ascertain the qualifications of the applicant in reading plans  and specifications, knowledge of estimating costs, construction, ethics and other similar matters pertaining to the contracting business and knowledge of the applicant as to the responsibilities of a contractor to the public and of the requirements of the laws of the State of North Carolina relating to contractors, construction and liens. The examination for a fire protection contractor shall include such materials as would test the competency of the applicant and which would meet national uniform competency requirements or the equivalent of National Institute for Certification of Engineering Technicians Level III.  If the results of the examination of the applicant shall be satisfactory to the Board, then the Board shall issue to the applicant a certificate to engage as a general contractor or as a fire protection contractor, as applicable, in the State of North  Carolina, as provided in said certificate, which may be limited into five classifications as the common use of the terms are known–that is,
(1)	Building contractor, which shall include private, public, commercial, industrial and residential buildings of all types;
(1a)	Residential contractor, which shall include any general contractor constructing only residences which are required to conform to the North Carolina Uniform Residential Building Code (Vol. 1-B);
(2)	Highway contractor;
(3)	Public utilities contractors, which shall include those whose operations are the performance of construction work on the following subclassifications of facilities:
a.	Water and sewer mains and water service lines and house and building sewer lines as defined in the North Carolina State Building Code, and water storage tanks, lift stations, pumping stations, and appurtenances to water storage tanks, lift stations and pumping stations;
b.	Water and wastewater treatment facilities and appurtenances thereto;
c.	Electrical power transmission facilities, and primary and secondary distribution facilities ahead of the point of delivery of electric service to the customer;
d.	Public communication distribution facilities; and
e.	Natural gas and other petroleum products distribution facilities; provided the General Contractors Licensing Board may issue license to a public utilities contractor limited to any of the above subclassifications for which the general contractor qualifies, and
(4)	Specialty contractor, which shall include those whose operations as such are the performance of construction work requiring special skill and involving the use of specialized  building trades or crafts, but which shall not include any operations now or hereafter under the jurisdiction, for the issuance of license, by any board or commission pursuant to the laws of the State of North Carolina.
(5)	Fire protection contractor means any person, firm, corporation, partnership, or proprietorship, or any other business that offers to undertake, represents itself to undertake, or does undertake the layout, sale, inspection, installation, maintenance, or servicing of a fire protection system, or any part of a system, as defined in G.S. 87-1(b).

Public utilities contractors constructing water service lines and house and building sewer lines as provided in (3)a. above shall terminate said lines at a valve, box, meter, or manhole or cleanout at which the facilities from the building may be connected.
If an applicant is an individual, examination may be taken by his personal appearance for examination, or by the appearance for examination of one or more of his responsible managing employees, and if a copartnership or corporation, or any other combination or organization, by the examination of one or more of the responsible managing officers or members of the personnel of the applicant, and if the person so examined shall cease to be connected with the applicant, then in such event the license shall remain in full force and effect for a period of 30 days thereafter, and then be canceled, but the applicant shall then be entitled to a reexamination, all pursuant to the rules to be promulgated by the Board: Provided, that the holder of such license shall not bid on or undertake any additional contracts from the time such examined employee shall cease to be connected with the applicant until said applicant's license is reinstated as provided in this Article.
Anyone failing to pass this examination may be reexamined at any regular meeting of the Board upon payment of an examination fee of twenty-five dollars ($25.00). Anyone requesting to take the examination a third or subsequent time shall submit a new application with the appropriate examination and license fees. Certificate of license shall expire on the 31st day of December following the issuance or renewal and shall become invalid 60 days from that date unless renewed, subject to the approval of the Board. Renewals may be  effected any time during the month of January without reexamination, by the payment of a fee to the secretary of the Board of seventy-five dollars ($75.00) for unlimited license or a fire protection contractor's license, fifty dollars ($50.00) for intermediate license and twenty-five dollars ($25.00) for limited license. Renewal applications received by the Board after January shall be accompanied by a late payment of ten dollars ($10.00) for each month or part after January. After a lapse of two years no renewal shall be effected and the applicant shall fulfill all requirements of a new applicant as set forth in this section.”
Sec. 3.  G.S. 87-11(a) reads as rewritten:
"§ 87-11. Revocation of license; charges of fraud, negligence, incompetency, etc.; hearing thereon; reissuance of certificate.
(a)	The Board shall have the power to revoke or suspend the certificate of license of any general contractor or fire protection contractor licensed hereunder or to invoke other disciplinary measures, reprimand, or probative terms against a licensee who is found guilty of any fraud or deceit in obtaining a license, or gross negligence, incompetency or misconduct in the practice of his profession, or willful violation of any provisions of this Article. Any person may prefer charges of such fraud, deceit, negligence or misconduct against any general contractor or fire protection contractor licensed hereunder; such charges shall be in writing and sworn to by the complainant and submitted to the Board. Such chargesshall be referred to a review committee appointed by the chairman and composed of one Board member, legal counsel to the Board, and the secretary-treasurer.  The review committee shall determine, (i) whether the charges should be dismissed without hearing as unfounded or trivial, (ii) should remain pending for further investigation or for disposition of criminal or civil proceedings involving the same charges, or (iii) should be heard and determined by the Board in accordance with the provisions of Chapter 150B of the General Statutes."
Sec. 4. G.S. 87-12 reads as rewritten:
"§ 87-12. Certificate evidence of license.
The issuance of a certificate of license or limited license by this Board shall be evidence that the person, firm, or corporation named therein is entitled to all the rights and privileges of a licensed or limited licensed general contractor or fire protection contractor while said license remains unrevoked or unexpired. A licensed general contractor or fire protection contractor holding a license which qualifies him for work as described in G.S. 87-10 shall be authorized to perform the said work without any additional occupational license, notwithstanding the provisions of any other occupational licensing statute. A license issued by any other occupational licensing board having jurisdiction over any work described in G.S. 87-10 shall qualify such licensee to perform the work for which the license qualifies him without obtaining the license from the General Contractors Licensing Board. Nothing contained herein shall operate to relieve any general contractor or fire protection contractor from the necessity of compliance with other provisions of the law requiring building permits and construction in accordance with appropriate provisions of the North Carolina State Building Code."
Sec. 5.  G.S. 87-13 reads as rewritten:
"§ 87-13. Unauthorized practice of contracting; impersonating contractor; false certificate; giving false evidence to Board; penalties.
Any person, firm, or corporation not being duly authorized who shall contract for or bid upon the construction of any of the projects or works enumerated in G.S. 87-1, without having first complied with the provisions hereof, or who shall attempt to practice general contracting or fire protection contracting in the State, except as provided for in this Article, and any person, firm, or corporation presenting or attempting to file as his own the licensed certificate of another or who shall give false or forged evidence of any kind to the Board or to any member thereof in maintaining a certificate of license or who falsely shall impersonate another or who shall use an expired or revoked certificate of license, and any architect or engineer who recommends to any project owner the award of a contract to anyone not properly licensed under this Article, shall be deemed guilty of a misdemeanor and shall for each such offense of which he is convicted be punished by a fine of not less than five hundred dollars ($500.00) or imprisonment of three months, or both fine and imprisonment in the discretion of the court. And the Board may, in its discretion, use its funds to defray the expense, legal or otherwise, in the prosecution of any violations of this Article. No architect or engineer shall be guilty of a violation of this section if his recommendation to award a contract is made in reliance upon current written information received by him from the appropriate Contractor Licensing Board of this State which information erroneously indicates that the contractor being recommended for contract award is properly licensed."
Sec. 6.  G.S. 87-14 reads as rewritten:
"§ 87-14. Regulations as to issue of building permits.
Any person, firm or corporation, upon making application to the building inspector or such other authority of any incorporated city, town or county in North Carolina charged with the duty of issuing building or other permits for the construction of any building, highway, sewer, grading or any improvement or structure where the cost thereof is to be thirty thousand dollars ($30,000) or more, or for the installation of a fire protection system regardless of cost, shall, before he be entitled to the issuance of such permit, furnish satisfactory proof to such inspector or authority that he or another person contracting to superintend or manage the construction is duly licensed under the terms of this Article to carry out or superintend the same, and that he has paid the license tax required by the Revenue Act of the State of North Carolina then in force so as to be qualified to bid upon or contract for the work for which the permit has been applied; and it shall be unlawful for such building inspector or other authority to issue or allow the issuance of such building permit unless and until the applicant has furnished evidence that he is either exempt from the provisions of this Article or is duly licensed under this Article to carry out or superintend the work for which permit has been applied; and further, that the applicant has paid the license tax required by the State Revenue Act then in force so as to be qualified to bid upon or contract for the work covered by the permit; and such building inspector, or other such authority, violating the terms of this section shall be guilty of a misdemeanor and subject to a fine of not more than fifty dollars ($50.00).
Notwithstanding this section, all bids, advertising, promotions, or solicitations for the sale, installation, maintenance or service of fire protection systems as defined in this Article shall prominently indicate the license number of the fire protection contractor and it shall be unlawful to issue a design or plan without the registration number of the fire protection contractor affixed thereon."
Sec. 7.  G.S. 87-15.1 reads as rewritten:
"§ 87-15.1. Reciprocity of licensing.
To the extent that other states which provide for the licensing of general contractors or fire protection contractors provide for similar action, the Board in its discretion may grant licenses of the same or equivalent classification to general contractors or fire protection contractors licensed by other states, without written examination upon satisfactory proof furnished to the Board that the qualifications of such applicants are equal to the qualifications of holders of similar licenses in North Carolina and upon payment of the required fee."
Sec. 8.  Chapter 87 of the General Statutes is amended by adding new sections to read:
"§ 87-15.3.  Financial responsibility.
A surety bond executed by the applicant and a surety company authorized to do business in this State made payable to the State of North Carolina in the amount of ten thousand dollars ($10,000) must be provided along with the application for certificate of registration as a fire protection contractor.  This bond shall be for the use and benefit of any person who may be injured or aggrieved by a wrongful act or omission of an employee, servant, officer, or agent in the conduct of the business of the fire protection contractor."
"§ 87-15.4. Application for licensure as a fire protection contractor.
An application for licensure as a fire protection contractor must be filed on or before the 31st day of December 1989, on forms prepared by the Board, and each applicant must take and pass an examination as prescribed by the Board pursuant to this Article within 18 months after the effective date of this Article.  However, any applicant who has successfully passed the examination for certification by the National Institute for the Certification of Engineering Technicians Level I, II, and III and has been practicing in this State for a period of one year prior to the effective date of this Article, need not take an examination, provided satisfactory proof of the certification and practice is furnished to the Board."
Sec. 9.  This act shall become effective October 1, 1989.