A BILL TO BE ENTITLED
AN ACT amending the laws regulating irrigation contractors to provide substantive requirements for licensing corporations, to provide for the issuance of licenses to nonresidents, to clarify the fee structure, and to make other conforming changes.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 89G‑3 reads as rewritten:
"§ 89G‑3.  Exemptions.
The provisions in this Chapter shall not apply to:
(1)	Any federal or State agency or any political subdivision performing irrigation construction or contracting work on public property.
(2)	Any property owner who performs irrigation construction or contracting work on his or her own property.
(3)	A landscape architect registered under Chapter 89A of the General Statutes.
(4)	A professional engineer licensed under Chapter 89C of the General Statutes.
(5)	Any irrigation construction or contracting work where the price of all contracts for labor, material, and other items for a given jobsite is less than two thousand five hundred dollars ($2,500).
(6)	Any person performing irrigation construction or contracting work for temporary irrigation to establish vegetative cover for erosion control.
(7)	Any person performing irrigation construction or contracting work to control dust on commercial construction sites or mining operations.
(8)	Any person performing irrigation construction or contracting work for use in agricultural production, farming, or ranching, including land application of animal wastewater.
(9)	Any person performing irrigation construction or contracting work for use in commercial sod production.
(10)	Any person performing irrigation construction or contracting work for use in the commercial production of horticultural crops, including nursery and greenhouse operators.
(11)	A licensed general contractor  who possesses a classification under G.S. 87‑10(b) as a building contractor, a residential contractor, or a public utilities contractor. A public utilities contractor exempted by this subdivision may only perform the activities described in G.S. 87‑10(b)(3)a.
(12)	A wastewater contractor certified under Article 5 of Chapter 90A of the General Statutes who performs only the construction of or repair to a wastewater dispersal system.
	
(14)	A plumbing contractor licensed under Article 2 of Chapter 87 of the General Statutes who performs only the following work: installation, repairs, or maintenance of water mains, water taps, service lines, water meters, or backflow prevention assemblies supplying water for irrigation systems; or repairs to an irrigation system.
(15)	Any person performing irrigation construction or contracting work for a golf course.
(16)	Any person maintaining or repairing an irrigation system owned by the homeowners association of a planned community and located within the planned community's common elements as defined in G.S. 47F‑1‑103."
SECTION 2.  G.S. 89G‑5(11) reads as rewritten:
"The Board shall have the following powers and duties:
…
(11)	To require licensees to file and maintain an adequate surety bond or letter of credit.
…."
SECTION 3.  Chapter 89G of the General Statutes is amended by adding the following new sections to read:
"§ 89G‑6.1.  Corporations; partnerships; persons doing business under trade name.
(a)	The Board may issue a license in the name of a corporation if the corporation pays the license fee required by G.S. 89G‑10 and complies with the following:
(1)	One or more officers or full‑time employees, or both, empowered to act for the corporation are individuals licensed under this Chapter.
(2)	Only the officers or employees described in subdivision (1) of this subsection execute contracts for irrigation construction in the name of a corporation and exercise direct supervision over the work performed pursuant to the contract.
(b)	The Board may issue a license in the name of a limited liability company if the company pays the fee required by G.S. 89G‑10 and complies with the following:
(1)	One or more managers or executives, as defined in G.S. 57C‑1‑03, or full‑time employees, or a combination thereof, are individuals licensed under this Chapter.
(2)	Only the managers, executives, or employees described in subdivision (1) of this subsection execute contracts for irrigation construction in the name of the limited liability company and exercise direct supervision over the work performed pursuant to the contract.
(c)	The Board may issue a license in the name of a partnership if the partnership pays the fee required by G.S. 89G‑10 and complies with the following:
(1)	One or more general partners or full‑time employees empowered to act for the partnership are individuals licensed under this Chapter.
(2)	Only the partners or employees described in subdivision (1) of this subsection execute contracts for irrigation construction in the name of the partnership and exercise direct supervision over the work performed pursuant to the contract.
(d)	The Board may issue a license in an assumed or designated trade name if the owner of the business pays the fee required by G.S. 89G‑10 and complies with the following:
(1)	The owner or one or more full‑time employees empowered to act for the owner is an individual licensed under this Chapter.
(2)	Only the persons described in subdivision (1) of this subsection execute contracts for irrigation construction in the assumed or designated trade name of the business and exercise direct supervision over the work performed pursuant to the contract.
(e)	When the Board issues a license under this section, the Board shall indicate on the license the name and license number of the individual licensee connected to the corporation, partnership, or business conducted under an assumed or designated trade name.
(f)	A person licensed pursuant to this section shall exercise direct supervision over a contract for irrigation construction until the contract is completed.
(g)	When an individual licensee, other than a sole proprietor, executes a contract for irrigation construction on behalf of another person, the person on whose behalf the licensee is executing the contract shall be licensed under this section.
(h)	A corporation, limited liability company, partnership, or person doing business under an assumed or designated trade name shall notify the Board in accordance with rules adopted by the Board if an individual licensee who is indicated in the license issued under this section ceases to be an officer, partner, owner, or employee of the corporation, limited liability company, partnership, or person doing business under the assumed or designated trade name. If the corporation, partnership, or person no longer has an officer, general partner, owner, or employee described in subdivision (a)(1), (b)(1), or (c)(1), the license issued under this section is automatically suspended, and the corporation, partnership, or person shall cease practicing irrigation construction or contracting.
"§ 89G‑6.2.  Licensing of nonresidents.
(a)	Definitions. – The following definitions apply in this section:
(1)	Delinquent income tax debt. – The amount of income tax due as stated in a final notice of assessment issued to a taxpayer by the Secretary of Revenue when the taxpayer no longer has the right to contest the amount.
(2)	Foreign corporation. – A corporation as defined in G.S. 55‑1‑40.
(3)	Foreign entity. – A foreign corporation, a foreign limited liability company, or a foreign partnership.
(4)	Foreign limited liability company. – A company as defined in G.S. 57C‑1‑03.
(5)	Foreign partnership. – One of the following that does not have a permanent place of business in this State:
a.	A foreign limited partnership as defined in G.S. 59‑102.
b.	A general partnership formed under the laws of a jurisdiction other than this State.
(b)	Licensing. – Except as provided in this section, the Board may issue a license to a nonresident individual or a foreign entity that meets the requirements for licensure under this Chapter.
(c)	Certificate of Authority Required. – The Board shall not issue a license for a foreign corporation unless the corporation has obtained a certificate of authority from the Secretary of State pursuant to Article 15 of Chapter 55 of the General Statutes. The Board shall not issue a license for a foreign limited liability company unless the company has obtained a certificate of authority from the Secretary of State pursuant to Article 7 of Chapter 57C of the General Statutes.
(d)	Information. – The Board, upon request, shall provide the Secretary of Revenue the name, address, and tax identification number of every nonresident individual and foreign entity licensed by the Board. The information to be provided under this section shall be in a form required by the Secretary of Revenue.
(e)	Delinquents. – If the Secretary of Revenue determines that any nonresident individual or foreign entity licensed by the Board owes a delinquent income tax debt, the Secretary of Revenue may notify the Board of the nonresident individual and foreign entity and instruct the Board not to renew the nonresident individual or foreign entity's license. The Board shall not renew the license of a nonresident individual or foreign entity identified by the Secretary of Revenue unless the Board receives a written statement from the Secretary that: (i) the debt has been paid or (ii) the debt is being paid pursuant to an installment agreement."
SECTION 4.  G.S. 89G‑9(b) reads as rewritten:
"(b)	As a condition of license renewal, an individual licensee shall meet continuing education requirements set by the Board. Each licensee shall complete 10 continuing education units per year. Failure to obtain continuing education units shall result in the forfeiture of a license. Upon forfeiture, a person shall be required to submit a new application and retake the examination as provided in this Chapter."
SECTION 5.  G.S. 89G‑10(a) reads as rewritten:
"(a)	The Board may impose the following fees not to exceed the amounts listed below:
(1)	Individual application and initial
license	$100.00
(2)	Examination fee	200.00
(3)	Individual license renewal	100.00
(3a)	Initial corporate, limited liability company, partnership,
	or trade‑name license	100.00
(3b)	Corporate, limited liability company, partnership,
	or trade‑name renewal	100.00
(4)	Late renewal fee	50.00
(5)	License by reciprocity	250.00
		
(7)	Duplicate license	25.00."
SECTION 6.  G.S. 89G‑11 reads as rewritten:
"§ 89G‑11.  Disciplinary action.
(a)	The Board may deny, restrict, suspend, or revoke a license or refuse to issue or renew a license if a licensee or applicant:
(1)	Employs the use of fraud, deceit, or misrepresentation in obtaining or attempting to obtain a license or the renewal of a license.
(2)	Practices or attempts to practice irrigation construction or contracting by fraudulent misrepresentation.
(3)	Commits an act of gross malpractice or incompetence as determined by the Board.
(4)	Has been convicted of or pled guilty or no contest to a crime that indicates that the person is unfit or incompetent to practice as an irrigation contractor or that indicates that the person has deceived or defrauded the public.
(5)	Has been declared incompetent by a court of competent jurisdiction.
(6)	Has willfully violated any provision in this Chapter or any rules adopted by the Board.
(7)	Uses or attempts to use the seal in a fraudulent or unauthorized manner.
(8)	Fails to file the required surety bond or letter of credit or to keep the bond or letter of credit in force.
(b)	The Board may assess costs, including attorneys' fees, in a proceeding under this section against an applicant or licensee found to be in violation of this Chapter."
SECTION 7.  This act becomes effective October 1, 2009.