GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

S	1 

SENATE BILL 1008

Short Title:  Insulating Specialty Contractors.	(Public)

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Sponsors: Senator Hoyle.

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Referred to:  Commerce.

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April 21, 1997

A BILL TO BE ENTITLED
AN ACT TO AUTHORIZE THE STATE LICENSING BOARD FOR GENERAL CONTRACTORS TO ISSUE AN INSULATING SPECIALTY CONTRACTOR'S LICENSE AND TO PERMIT ONLY PERSONS LICENSED AS BUILDING, RESIDENTIAL, OR INSULATION SPECIALTY CONTRACTORS TO INSTALL, ALTER, OR REPAIR INSULATING MEDIA.
The General Assembly of North Carolina enacts:
Section 1.  Chapter 87 of the General Statutes is amended by adding a new section to read:
"§ 87-1.1.  License required to install, alter, or repair insulating media.
Only those persons, firms, or corporations that are licensed under this Article as a building, residential, or insulating specialty contractor shall, when working on behalf of any person, firm, or corporation that is not so licensed or when subcontracting with a general contractor, install, alter, or repair insulating media as permitted upon the issuance of an insulating specialty contractor's license under G.S. 87-10(b)(5) if the cost, fixed price, commission, fee, or wage for the undertaking is five hundred dollars ($500.00) or more."
Section 2.  G.S. 87-10(b) reads as rewritten:
"(b)	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. 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 in the State of North Carolina, as provided in said certificate, which may be limited into six 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 residential building code adopted by the Building Code Council pursuant to G.S. 143-138.
(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.
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.
(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)	Insulating specialty contractor, which shall include those whose operations as such are the installation, alteration, or repair of materials classified as insulating media and used for the nonmechanical control of temperatures in the construction of residential dwellings intended for single-family occupancy.  This classification does not include the insulation of mechanical equipment or ancillary lines and piping.
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."
Section 3.  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, alteration, or repair of insulating media as described in G.S. 87-10(b)(5) if the cost of the undertaking is five hundred dollars ($500.00) or more, shall, before he or she is entitled to the issuance of such permit, furnish satisfactory proof to the inspector or authority that (i) he or she 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, (ii) he or she 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 (iii) he or she has in effect Workers' Compensation insurance as required by Chapter 97 of the General Statutes.  It shall be unlawful for the building inspector or other authority to issue or allow the issuance of a building permit unless and until the applicant has furnished evidence that (i) the applicant 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, (ii) 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 (iii) the applicant has in effect Workers' Compensation insurance as required by Chapter 97 of the General Statutes.  Any building inspector or other such authority who is subject to and violates the terms of this section shall be guilty of a Class 3 misdemeanor and subject only to a fine of not more than fifty dollars ($50.00)."
Section 4.  This act becomes effective July 1, 1998, and applies to all bids submitted and all contracts entered into on and after that date.