GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE BILL 38

Short Title:  Contractors Review Committee.	(Public)
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Sponsors: Representatives Hasty, Easterling, Ligon, Lineberry, Privette, Woodard; Bowman, Pope, and Warner.
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Referred to:  State Government.
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February 11, 1991

A BILL TO BE ENTITLED
AN ACT TO ESTABLISH THE NORTH CAROLINA RESIDENTIAL CONTRACTORS REVIEW COMMITTEE.
The General Assembly of North Carolina enacts:
Section 1.  Chapter 87 of the General Statutes is amended by adding the following new article to read:
"ARTICLE 1A
"Residential Contractors Review Committee.
"§ 87-15.5. Definitions.
As used in this Article, unless the context clearly requires otherwise:
(1)	'Board' means the State Licensing Board for General Contractors;
(2)	'Residential construction' means the construction of one-family or two-family residential dwelling units which are required to conform to the North Carolina Uniform Residential Building Code;
(3)	'Residential contractor' means any person, firm or corporation, whether licensed or not, 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 under Article 1 of this chapter, the construction of one-family or two-family residential dwelling units which are required to conform to the North Carolina Uniform Residential Building Code.
(4)	'Residential Review Committee' or 'Review Committee' means the North Carolina Residential Contractors Review Committee established by this Article.
"§ 87-15.6.  Residential Contractors Review Committee established; membership.
(a)	The North Carolina Residential Contractors Review Committee is established within the State Licensing Board for General Contractors.  The purposes of the Review Committee are to assure the expeditious implementation and enforcement of the licensing provisions applicable to residential contractors under Article 1 of this Chapter, and to provide a process whereby homeowners may bring residential construction-related complaints to a single entity for review and referral to the appropriate governmental authority.
(b)	The Residential Review Committee shall consist of seven members, two of whom shall be appointed by the Speaker of the House of Representatives, two of whom shall be appointed by the Lieutenant Governor, two of whom shall be appointed by the Governor, and one of whom shall be the member of the Board who has as the larger part of his business the construction of residences and is the holder of an unlimited general contractor's license.  The appointees of the Speaker of the House of Representatives shall be an architect registered under Chapter 83 of the General Statutes, and a residential contractor who holds an intermediate general contractor's license as defined in G.S. 87-10.  The appointees of the Lieutenant Governor shall be an engineer registered under Chapter 89C of the General Statutes and practicing structural engineering, and a residential contractor who holds a limited general contractor's license as defined in G.S. 87-10.  Of the Governor's appointees, one shall be a municipal or county building inspector and one shall be a member of the public at large who has no ties to the construction industry.
(c)	The terms of the initial members of the Residential Review Committee shall be staggered so that the terms of one member appointed by the Governor and the members appointed by the Lieutenant Governor expire December 31, 1993, and one member appointed by the Governor and the members appointed by the Speaker of the House of Representatives expire December 31, 1994. Terms of these appointees shall thereafter be for a period of three years. The term of the member appointed from the Board shall be coterminous with Board membership.  Vacancies shall be filled for the unexpired term by the original appointing authority. No member of the Residential Review Committee shall serve more than two complete consecutive terms.
(d)	The members of the Residential Review Committee shall receive per diem and necessary travel and subsistence expenses in accordance with G.S. 93B-5 for all time actually spent conducting business of the Review Committee.  All expenses, salaries, and per diem authorized under this Article shall be an expense of the Board and shall be paid from funds received under the provisions of Article 1 of this Chapter and shall in no manner be an expense to the State.
(e)	The Residential Review Committee shall select from its members a chairman, a vice chairman, and a secretary who shall serve for one year or until their successors are elected and qualified.  No two offices may be held by the same person.  The Residential Review Committee, with the concurrence of the Board, may engage adequate staff as the Review Committee deems necessary to perform its duties.
(f)	The Residential Review Committee shall meet at least three times each year, and as often as necessary to carry out its duties under this Article.  Five members shall constitute a quorum.
"§ 87-15.7.  Residential Review Committee duties and responsibilities.
The Residential Review Committee may adopt procedures to carry out the purpose of this Article, and shall:
(1)	Review, investigate, and make recommendations to the Board for the timely disposition of all complaints involving residential construction, including those referred from the Attorney General's office and other State and local agencies;
(2)	Investigate all complaints involving residential construction which are properly submitted and not dismissed as unfounded or trivial. Complaints which in the Review Committee's opinion necessitate on-site investigation may be investigated by one or more members of the Board, the Residential Review Committee, or the staff, provided that at least one of the persons conducting such investigation is licensed as a general contractor or has demonstrated expertise in the area of residential construction;
(3)	Conduct follow-up activities, where appropriate, to determine if orders issued by the Board pursuant to complaints disposed of after hearing have been carried out.
(4)	Establish procedures for the timely response to persons making complaints related to residential construction, which procedures shall include the referral, where appropriate, of all such complaints to the proper government agencies for action.
(5)	Establish procedures for sharing information with other construction-related boards and commissions to enhance the enforcement of laws and regulations pertaining to the residential construction industry.
(6)	Make recommendations to the Board for the promulgation of rules necessary for the Residential Review Committee to carry out its duties under this Article.
(7)	Conduct other activities as may be lawfully delegated to it by the Board."
Sec. 2. G.S. 87-2 reads as rewritten:
"§ 87-2.  Licensing Board; organization.
There is created the State Licensing Board for General Contractors consisting of nine members which include five general contractor's, one registered engineer practicing structural engineering, and three public members appointed by the Governor.  Except as otherwise provided in this section, members shall be appointed for staggered five-year terms.  Of the general contractor members, one shall have as the larger part of his business the construction of highways; one shall have as the larger part of his business the construction of public utilities; one shall have as the larger part of his business the construction of buildings; and two shall have as a larger part of their businesses the construction of residences, one of whom shall be the holder of an unlimited general contractor's license. The public members shall have no ties with the construction industry and shall represent the interests of the public at large.  One of the three public members shall be the person who serves as public member of the North Carolina Residential Contractors Review Committee.  The term of the public member appointed from the Review Committee shall be coterminous with membership on the Review Committee.  Members shall serve until the expiration of their respective terms and until their successors are appointed and qualified. Vacancies occurring during a term shall be filled by appointment of the Governor for the remainder of the unexpired term.  The Governor may remove any member of the Board for misconduct, incompetency, or neglect of duty.  No Board member shall serve more than two complete consecutive terms."
Sec. 3.  G.S. 87-11 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 the certificate of license of any general contractor licensed hereunder 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 licensed hereunder; such charges shall be in writing and sworn to by the complainant and submitted to the Board. Such charges, unless dismissed without hearing by the Board as unfounded or trivial, shall be heard and determined by the Board in accordance with the provisions of Chapter 150B of the General Statutes.  Charges pertaining to residential construction matters that are properly submitted to the Board or that are referred from the Attorney General or other State or local agency, shall be promptly referred by the Board to the North Carolina Residential Contractors Review Committee for preliminary review, response, investigation, and recommendations for Board action.
(b)	The Board shall adopt and publish guidelines, consistent with the provisions of this Article, governing the suspension and revocation of licenses.
(c)	The Board shall establish and maintain a system whereby detailed records are kept regarding complaints against each licensee. This record shall include, for each licensee, the date and nature of each complaint, investigatory action taken by the Board, any findings by the Board, and the disposition of the matter.
(d)	The Board may reissue a license to any person, firm or corporation whose license has been revoked: Provided, five or more members of the Board vote in favor of such reissuance for reasons the Board may deem sufficient.
The Board shall immediately notify the Secretary of State of its findings in the case of the revocation of a license or of the reissuance of a revoked license.
A certificate of license to replace any certificate lost, destroyed or mutilated may be issued subject to the rules and regulations of the Board.
(e)	The Board shall promulgate the rules, necessary to implement the provisions of Article 1A of this Chapter.  In promulgating these rules the Board shall consider the recommendations of the North Carolina Residential Contractors Review Committee."
Sec. 4.  Sections 1 and 3 of this act shall become effective October 1, 1991.  Section 2 of this act is effective upon ratification and shall apply to appointments made on or after that date.