Bill Text: MS SB2738 | 2014 | Regular Session | Introduced
Bill Title: Residential builders; allow applicants for license to submit financial statement in lieu of proof of liability insurance.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2014-02-04 - Died In Committee [SB2738 Detail]
Download: Mississippi-2014-SB2738-Introduced.html
MISSISSIPPI LEGISLATURE
2014 Regular Session
To: Business and Financial Institutions
By: Senator(s) Hill
Senate Bill 2738
AN ACT TO AMEND SECTION 73-59-3, MISSISSIPPI CODE OF 1972, TO ALLOW RESIDENTIAL BUILDERS AND REMODELERS TO SUBMIT A FINANCIAL STATEMENT IN LIEU OF PROOF OF LIABILITY INSURANCE IN ORDER TO BE LICENSED; TO REVISE THE MAXIMUM LICENSE FEE FOR INACTIVE LICENSES; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 73-59-3, Mississippi Code of 1972, is amended as follows:
73-59-3. (1) Except as otherwise provided in Section 73-59-15 or Section 33-1-39, persons who perform or formerly performed residential construction or residential improvement shall be licensed by the board annually as an active licensee or inactive licensee, as appropriate, and, as a prerequisite to obtaining a license or renewal thereof, each shall submit to the board:
(a) Proof of workers' compensation insurance, if applicable; however, workers' compensation insurance shall not be required for inactive licensees;
(b) A federal employment identification number or social security number.
(2) The board may require
liability insurance to be licensed under this chapter and it shall be reflected
on the certificate of licensure; however, in lieu of liability insurance,
the applicant may furnish the board a financial statement, prepared by an
independent auditor and signed by the applicant and auditor before a notary
public, stating the assets of the applicant, to be used by the board to
determine the financial responsibility of the applicant to perform work on a
construction undertaking, the entire cost of which is Fifty Thousand Dollars
($50,000.00) or more. Such assets shall include a net worth of at least Ten
Thousand Dollars ($10,000.00). An applicant without the net worth required in
this subsection may furnish the board a bond, letter of credit, or other
security acceptable to the board in the amount of such net worth requirement
plus the amount of the applicant's net worth if any, and the furnishing of such
bond, letter of credit, or other security shall be deemed satisfaction of such
net worth requirement for all purposes. The financial statement and any
information contained therein, as well as any other financial information
required to be submitted by a contractor, shall be confidential and not subject
to the provisions of the Mississippi Public Records Act, Section 25-61-1 et
seq. Nothing contained in this subsection shall be construed to require a
licensed contractor to provide a financial statement in connection with the
renewal of an existing license. Neither liability insurance nor a
financial statement shall * * * be required for an inactive * * *
license.
(3) (a) The board shall issue or renew a license to an active or inactive residential builder or remodeler upon payment to the board of the appropriate license fee. The initial license fee for an active residential builder or remodeler shall be Fifty Dollars ($50.00). The license fee may thereafter be increased or decreased by the board and cannot exceed One Hundred Dollars ($100.00); however, the receipts from fees collected by the board shall be no greater than the amount required to pay all costs and expenses incurred by the board in enforcing the provisions of this chapter. The license fee for an inactive residential builder or remodeler shall not exceed fifty percent (50%) of the license fee for an active residential builder or remodeler.
(b) Twenty-five Dollars ($25.00) of the fee required by this section which is assessed to residential builders licensed under the provisions of Section 73-59-1 et seq. shall be deposited to the Construction Education Fund created pursuant to Section 31-3-14 and shall be distributed to the Mississippi Housing Institute. The remaining fees collected under this chapter shall be deposited into the special fund in the State Treasury known as the "State Board of Contractors Fund" created pursuant to Section 31-3-17 and shall be used for the administration and enforcement of this chapter and as provided in Section 31-3-14. Amounts in such fund shall not lapse into the State General Fund at the end of a fiscal year. Interest accrued to such fund shall remain in the fund. All expenditures from the special fund shall be by requisition to the Department of Finance and Administration, signed by the executive secretary of the board and countersigned by the chairman or vice chairman of the board.
(4) Except as provided in Section 33-1-39, the license shall expire on the last day of the twelfth month following its issuance or renewal and shall become invalid unless renewed. The board may notify by mail or e-mail every licensee under this chapter of the date of the expiration of his license and the amount of the fee required for renewal of the license for one (1) year. To receive notification by e-mail, a licensee must notify the board of his desire to receive notification by e-mail and provide an e-mail address. Such notice may be mailed or e-mailed within thirty (30) days prior to the expiration date of the license. The failure on the part of any licensee to renew his license annually in such twelfth month shall not deprive such licensee of the right of renewal, provided that renewal is effected within one hundred twenty (120) days after the expiration date of the license by payment of the license fee plus a penalty of ten percent (10%) of the license fee. A new license required to replace a revoked, lost, mutilated or destroyed license may be issued, subject to the rules of the board, for a charge of not more than Twenty-five Dollars ($25.00). An inactive licensee may become an active licensee upon application meeting all the requirements of this section.
(5) Any person who is not a resident of the State of Mississippi who desires to perform residential construction or residential improvement shall be licensed to perform such construction or improvement as provided by this chapter.
SECTION 2. This act shall take effect and be in force from and after July 1, 2014.
