Bill Summary – FastDemocracy

FILED SENATE
                                                                                           Feb 13, 2019
                          GENERAL ASSEMBLY OF NORTH CAROLINA
                                                                  S.B. 55
                                      SESSION 2019           PRINCIPAL CLERK
     S                                                                    D
                               SENATE BILL DRS15020-NDf-1
     Short Title:   Continuing Education for General Contractors.                                 (Public)
     Sponsors:      Senators Gunn, Newton, and D. Davis (Primary Sponsors).
     Referred to:
                                    A BILL TO BE ENTITLED
 AN ACT TO REVISE THE LAW GOVERNING THE LICENSURE OF CERTAIN GENERAL
     CONTRACTORS TO REQUIRE CONTINUING EDUCATION FOR THE PURPOSE OF
     ENHANCING THE PROFESSIONAL COMPETENCE AND PROFESSIONAL
     RESPONSIBILITY OF THOSE LICENSEES.
 The General Assembly of North Carolina enacts:
             SECTION 1. Article 1 of Chapter 87 of the General Statutes is amended by adding
 a new section to read:
 "§ 87-10.2. Continuing education.
     (a)     As a condition of license renewal, at least one qualifier or qualifying party of a
 licensee holding a building contractor, residential contractor, or unclassified license classification
 shall complete, on an annual basis, eight hours of continuing education approved in accordance
 with this section. Where an entity holding a building contractor, residential contractor, or
 unclassified contractor license classification has multiple qualifiers or qualifying parties, at least
 one qualifier or qualifying party of the licensee shall complete this requirement for the license to
 remain valid.
     (b)     Of the eight hours of annual continuing education required by this section, two hours
 shall be a mandatory course approved by the Board and the remaining six hours shall be elective
 courses approved by the Board. The Board shall approve:
             (1)     The content of continuing education courses.
             (2)     Accreditation of continuing education sponsors and programs.
             (3)     Computation of credit.
             (4)     General compliance procedures.
     All prospective providers of the mandatory course shall attend a training program established,
 approved, and administered by the Board to ensure the quality and consistency of mandatory
 course information. Each qualifier or qualifying party must complete the mandatory course each
 year.
     All prospective providers of elective courses shall submit course materials and instructor
 qualifications for Board evaluation, approval, and accreditation. Each qualifier or qualifying
 party may accumulate and carry forward up to four hours of elective course credit to the next
 calendar year.
     (c)     Continuing education credit hours may only be given for courses that are taught live
 by an instructor approved by the Board. To receive credit, a qualifier or qualifying party must
 attend and view the live teaching of the course and shall certify this requirement in the manner
 required by the Board. Only the period of live instruction shall apply to the satisfaction of the
 continuing education requirement established by this section. Continuing education providers
                                     *DRS15020-NDf-1*
     General Assembly Of North Carolina                                                    Session 2019
 shall certify the attendance of course attendees and shall transmit the qualifier or qualifying
 party's certification to the Board. For the purposes of this subsection, "live instruction" includes
 a maximum of two elective credit hours presented by video of a previously recorded and
 approved presentation by an approved instructor or instructors provided the presentation is
 proctored by the approved sponsor. False certification of attendance shall be grounds for the
 suspension or revocation of the course provider's privilege to provide courses in this State. The
 Board may take disciplinary action against any licensee on account of a false certification of
 attendance by that licensee's qualifier or qualifying party at any continuing education course. The
 Board shall maintain and distribute, as appropriate, records of the educational coursework
 successfully completed by each qualifier or qualifying party, including the subject matter and the
 number of hours of each course.
     (d)     Continuing education requirements shall begin on January 1 of any calendar year and
 be completed by November 30 of that calendar year. The Board shall establish a 90-day grace
 period following November 30 of each calendar year for any qualifier or qualifying party who
 has failed to complete the continuing education requirement. Failure of the qualifier or qualifying
 party of the entity holding a building contractor, residential contractor, or unclassified contractor
 license classification to satisfy the annual continuing education requirement by the expiration of
 the grace period shall result in the license of the entity being invalidated until such time that
 continuing education and all other licensing requirements have been met.
     (e)     Any licensee who chooses not to complete the annual continuing education as
 required by this section may request that the Board place its license in an inactive status and the
 license shall become invalid. However, in order for the license to be maintained as inactive, the
 licensee shall pay the same annual renewal fee paid by active licensees. Should the licensee desire
 to return to active status, the qualifier or qualifying party of the licensee shall satisfactorily
 complete the following continuing education requirements prior to seeking reinstatement:
             (1)      If the licensee seeks reinstatement during the first two years after the license
                      becomes inactive, the qualifier or qualifying party shall complete eight hours
                      of continuing education, including the mandatory course offered during the
                      year of reinstatement.
             (2)      If the licensee seeks reinstatement more than two years after the license
                      becomes inactive, the qualifier or qualifying party shall complete sixteen
                      hours of continuing education, including the mandatory course offered during
                      the year of reinstatement.
     (f)     The Board shall establish nonrefundable fees for the purpose of administering the
 continuing education program. The Board may charge the sponsor of a proposed course a
 nonrefundable fee not to exceed twenty-five dollars ($25.00) per credit hour for the initial review
 of the course and a nonrefundable fee of twelve dollars and fifty cents ($12.50) per credit hour
 for the annual renewal of a course previously approved. The Board shall require an approved
 course provider to pay a fee, not to exceed five dollars ($5.00) per credit hour per qualifier or
 qualifying party, for each qualifier or qualifying party completing an approved continuing
 education course conducted by that provider.
     (g)     The Board may modify the continuing education requirements set forth in this Article
 in cases of certified illness or undue hardship as provided for in the rules of the Board.
     (h)     The Board may adopt rules to implement the requirements of this section."
             SECTION 2. G.S. 87-10 reads as rewritten:
 "§ 87-10. Application for license; examination; certificate; renewal.
     …
     (e)     A license shall expire on the first day of January following its issuance or renewal
 and shall become invalid 60 days from that date unless renewed, subject to the approval of the
 Board. Renewal applications shall be submitted with a fee not to exceed one hundred twenty-five
 dollars ($125.00) for an unlimited license, one hundred dollars ($100.00) for an intermediate
     Page 2                                                                           DRS15020-NDf-1
     General Assembly Of North Carolina                                                    Session 2019
 license, and seventy-five dollars ($75.00) for a limited license. Renewal applications shall be
 accompanied by evidence of continued financial responsibility satisfactory to the Board.and
 evidence of satisfactory completion of continuing education as required by G.S. 87-10.2.
 Renewal applications received by the Board on or after the first day of January shall be
 accompanied by a late payment of ten dollars ($10.00) for each month or part after January.
     (f)     After a license has been inactive invalid for four years, a licensee shall not be
 permitted to renew the license, and the license shall be deemed archived. If a licensee wishes to
 be relicensed subsequent to the archival of the license, the licensee shall fulfill all requirements
 of a new applicant as set forth in this section. Archived licensed numbers shall not be renewed."
             SECTION 3. The State Licensing Board for General Contractors shall adopt
 temporary rules to implement G.S. 87-10.2 and G.S. 87-10, as enacted by Section 1 and Section
 2 of this act. Notwithstanding G.S. 150B-21.1(d), the temporary rules required by this act shall
 remain in effect until the effective date of the permanent rule adopted to replace these temporary
 rules. The Board is exempt from the fiscal note requirement of G.S. 150B-21.4 in adopting rules
 to implement this act.
             SECTION 4. This act becomes effective January 1, 2020, and applies to licenses
 renewed on or after that date.
     DRS15020-NDf-1                                                                              Page 3
Statutes affected: 
Filed: 87-10
Edition 1: 87-10
Edition 2: 87-10
Ratified: 87-10
SL 2019-72: 87-10