AN ACT allowing the state licensing board of general contractors to extend the period in which a license remains in effect after a person licensed on behalf of a firm or corporation ceases to be associated with that firm or corporation, and clarifying a general Contracting exception.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 87‑10(c) reads as rewritten:
"(c)	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 90 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."
SECTION 2. G.S. 87‑1.1 reads as rewritten:
"§ 87‑1.1.  Exception for licensees under Article 2 or 4.
G.S. 87‑1 shall not apply to a licensee under Article 2 or 4 of this Chapter of the General Statutes, G.S. 87‑43 shall not apply to a licensee under Article 2 of this Chapter of the General Statutes, and G.S. 87‑21(a)(5) shall not apply to a licensee under Article 4 of this Chapter of the General Statutes when the licensee is bidding and contracting directly with the owner of a public building project if: (i) a licensed general contractor performs all work that falls within the classifications in G.S. 87‑10(b) and the State Licensing Board of General Contractor's rules; and (ii) the total amount of the general contracting work so classified does not exceed a percentage of the total bid price pursuant to rules established by the .Board; and (iii) a licensee with the appropriate license under Article 2 or Article 4 of this Chapter performs all work that falls within the classifications in Article 2 and Article 4 of this Chapter."  

SECTION 3.  This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 20th day of July, 2006.

	s/	 Beverly E. Perdue
	 President of the Senate

	s/	 James B. Black
	 Speaker of the House of Representatives

	s/	 Michael F. Easley
	 Governor

Approved 2:19 p.m. this 13th day of August, 2006