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AN ACT

RELATING TO REGULATION OF THE CONSTRUCTION INDUSTRY; PLACING

BUREAU CHIEFS OF THE CONSTRUCTION INDUSTRIES DIVISION OF THE

REGULATION AND LICENSING DEPARTMENT UNDER THE PERSONNEL ACT;

CHANGING LICENSE ISSUANCE AND QUALIFICATION PROVISIONS;

CHANGING CERTAIN FEES; EXTENDING THE PERMITTED PERIOD FOR A

CERTIFICATE OF COMPETENCE; ABOLISHING THE JOURNEYMEN TESTING

REVOLVING FUND.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 9-16-8 NMSA 1978 (being Laws 1983,

Chapter 297, Section 24) is amended to read:

"9-16-8. BUREAUS--CHIEFS.--The superintendent shall

establish within each division such "bureaus" as he deems

necessary to carry out the provisions of the Regulation and

Licensing Department Act. He shall appoint a "chief" to be

the administrative head of any such bureau. The positions so

appointed may be exempted from the Personnel Act by action of

the superintendent, except for the construction industries

division trade bureaus created pursuant to Section 60-13-31

NMSA 1978. The chiefs of those bureaus shall be covered

positions under the Personnel Act."

Section 2. Section 60-13-3 NMSA 1978 (being Laws 1978,

Chapter 66, Section 1, as amended) is amended to read:

"60-13-3. DEFINITION--CONTRACTOR.--As used in the

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Construction Industries Licensing Act, "contractor":

A. means any person who undertakes, offers to

undertake by bid or other means or purports to have the

capacity to undertake, by himself or through others,

contracting. Contracting includes but is not limited to

constructing, altering, repairing, installing or demolishing

any:

(1) road, highway, bridge, parking area or

related project;

(2) building, stadium or other structure;

(3) airport, subway or similar facility;

(4) park, trail, bridle path, athletic

field, golf course or similar facility;

(5) dam, reservoir, canal, ditch or similar

facility;

(6) sewerage or water treatment facility,

power generating plant, pump station, natural gas compressing

station or similar facility;

(7) sewerage, water, gas or other pipeline;

(8) transmission line;

(9) radio, television or other tower;

(10) water, oil or other storage tank;

(11) shaft, tunnel or mining appurtenance;

(12) leveling or clearing land;

(13) excavating earth;

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(14) air conditioning, conduit, heating or

other similar mechanical works;

(15) electrical wiring, plumbing or plumbing

fixture, consumers' gas piping, gas appliances or water

conditioners; or

(16) similar work, structures or

installations which are covered by applicable codes adopted

under the provisions of the Construction Industries Licensing

Act;

B. includes subcontractor and specialty

contractor;

C. includes a construction manager who coordinates

and manages the building process; who is a member of the

construction team with the owner, architect, engineer and

other consultants required for the building project; and who

utilizes his skill and knowledge of general contracting to

develop schedules, prepare project construction estimates,

study labor conditions and advise concerning construction; and

D. does not include:

(1) any person who merely furnishes

materials or supplies at the site without fabricating them

into, or consuming them in the performance of, the work of a

contractor;

(2) any person who drills, completes, tests,

abandons or operates any petroleum, gas or water well; or

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services equipment and structures used in the production and

handling of any product incident to the production of any

petroleum, gas or water wells, excluding any person performing

duties normally performed by electrical, mechanical or general

contractors; or who performs geophysical or similar explora-

tion for oil, gas or water;

(3) a public utility or rural electric

cooperative which constructs, reconstructs, operates or

maintains its plant or renders authorized service by the

installation, alteration or repair of facilities, up to and

including the meters, which facilities are an integral part of

the operational system of the public utility or rural electric

cooperative; provided that the construction of a building by a

public utility or rural electric cooperative or the

installation or repair of any consumer gas or electrical

appliance not an integral part of the operational system makes

a public utility or rural electric cooperative a contractor

for that purpose;

(4) a utility department of any municipality

or local public body rendering authorized service by the

installation, alteration or repair of facilities, up to and

including the meters, which facilities are an integral part of

the operational system of the utility department of the

municipality;

(5) any railroad company;

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(6) a telephone or telegraph company or

rural electric cooperative which installs, alters or repairs

electrical equipment and devices for the operation of signals

or the transmission of intelligence where that work is an

integral part of the operation of a communication system owned

and operated by a telephone or telegraph company or rural

electric cooperative in rendering authorized service;

(7) a pipeline company which installs,

alters or repairs electrical equipment and devices for the

operation of signals or the transmission of intelligence where

that service is an integral part of the operation of the

communication system of that pipeline company and is not for

hire or for the use of the general public, or any pipeline

company which installs, alters or repairs plumbing fixtures or

gas piping where the work is an integral part of installing

and operating the system owned or operated by the pipeline

company in rendering its authorized service;

(8) any mining company, gas company or oil

company which installs, alters or repairs its facilities,

including but not limited to plumbing fixtures or gas piping,

where the work is an integral part of the installing or

operating of a system owned or operated by the mining company,

gas company or oil company; provided the construction of a

building by a mining company, a gas company or an oil company

is required to be done in conformity with all other provisions

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of the Construction Industries Licensing Act and with orders,

rules, regulations, standards and codes adopted pursuant to

that act;

(9) a radio or television broadcaster who

installs, alters or repairs electrical equipment used for

radio or television broadcasting;

(10) an individual who, by himself or with

the aid of others who are paid wages and who receive no other

form of compensation, builds or makes installations,

alterations or repairs in or to a single-family dwelling owned

and occupied or to be occupied by him; provided that the

installation, building, alteration or repair is required to be

done in conformity with all other provisions of the

Construction Industries Licensing Act and with the orders,

rules, regulations, standards and codes adopted pursuant to

that act;

(11) a person who acts on his own account to

build or improve a single-family residence for his personal

use, including the building or improvement of a free standing

storage building located on that residential property,

provided that the construction or improvement is required to

be done in conformity with all other provisions of the Con-

struction Industries Licensing Act and with the orders, rules,

regulations, standards and codes adopted pursuant to that act,

and provided further that he does not engage in commercial

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construction;

(12) a person who, by himself or with the

aid of others who are paid wages and receive no other form of

compensation, builds or makes installations, repairs or

alterations in or to a building or other improvement on a farm

or ranch owned, occupied or operated by him, or makes

installations of electrical wiring which are not to be

connected to electrical energy supplied from a power source

outside the premises of the farm or ranch owned, occupied or

operated by him; provided that the state codes and any local

codes adopted pursuant to Subsection F of Section 60-13-44

NMSA 1978 shall not require any permits or inspections for

such construction on a farm or ranch except for electrical

wiring to be connected to a power source outside the premises;

(13) an individual who works only for wages;

(14) an individual who works on one

undertaking or project at a time which, in the aggregate or

singly, does not exceed seven thousand two hundred dollars

($7,200) compensation a year, the work being casual, minor or

inconsequential such as, but not limited to, handyman repairs;

provided that this exemption shall not apply to any

undertaking or project pertaining to the installation, con-

nection or repair of electrical wiring, plumbing or gas

fitting as defined in

Section 60-13-32 NMSA 1978 and provided:

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(a) the work is not part of a larger or

major operation undertaken by the same individual or different

contractor;

(b) the individual does not advertise

or maintain a sign, card or other device which would indicate

to the public that he is qualified to engage in the business

of contracting; and

(c) the individual files annually with

the division, on a form prescribed by the division, a

declaration substantially to the effect that he is not a

contractor within the meaning of the Construction Industries

Licensing Act, that the work he performs is casual, minor or

inconsequential and will not include more than one undertaking

or project at one time and that the total amount of such

contracts, in the aggregate or singly, will not exceed seven

thousand two hundred dollars ($7,200) compensation a year;

(15) any person, firm or corporation which

installs fuel containers, appliances, furnaces and other

appurtenant apparatus as an incident to its primary business

of distributing liquefied petroleum fuel;

(16) a cable television or community antenna

television company which constructs, installs, alters or

repairs facilities, equipment, cables or lines for the

provision of television service or the carriage and

transmission of television or radio broadcast signals; or

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(17) a person who performs work consisting

of short-term depreciable improvements to commercial property

to provide needed repairs and maintenance such as painting,

carpeting, flooring and similar items if the total amount paid

the person for the work on a single undertaking, including

materials, services and wages of those who work for him, does

not exceed the sum of five thousand dollars ($5,000)."

Section 3. Section 60-13-14 NMSA 1978 (being Laws 1967,

Chapter 199, Section 17, as amended) is amended to read:

"60-13-14. DIVISION--LICENSE ISSUANCE--REPORTS.--

A. No license shall be issued by the division to

any applicant unless the director is satisfied that the

applicant is or has in his employ a qualifying party who is

qualified for the classification for which application is made

and the applicant has satisfied the requirements of Subsection

B of this section.

B. An applicant for a license shall:

(1) demonstrate proof of responsibility as

provided in the Construction Industries Licensing Act;

(2) comply with the provisions of Subsection

D of this section if he has engaged illegally in the

contracting business in New Mexico within one year prior to

making application;

(3) demonstrate familiarity with the rules

and regulations promulgated by the commission and division

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concerning the classification for which application is made;

(4) if a corporation, incorporated

association, registered limited liability partnership or

limited liability company, have complied with the laws of this

state requiring qualification to do business in New Mexico and

provide the name of its current registered agent and the

current address of its registered office in New Mexico;

(5) if a person other than the persons

described in Paragraph (4) of this subsection, provide a

current physical location address and mailing address of the

applicant's place of business;

(6) submit proof of registration with the

taxation and revenue department and submit a current

identification tax number;

(7) comply with any additional procedures,

rules and regulations which are established by the commission

relating to issuance of licenses; and

(8) have had four years, within the ten

years immediately prior to application, of practical or

related trade experience dealing specifically with the type of

construction or its equivalent for which the applicant is

applying for a license, except that the commission may by

regulation provide for:

(a) reducing this requirement for a

particular industry or craft where it is deemed excessive but

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the requirement shall not be less than two years; and

(b) a waiver of the work experience

requirement of this paragraph when the qualifying party has

been certified in New Mexico with the same license

classification within the ten years immediately prior to

application.

C. The division, with the consent of the

commission, may enter into a reciprocal licensing agreement

with any state having equivalent licensing requirements.

D. The director may issue a license to an

applicant who at any time within one year prior to making

application has acted as a contractor in New Mexico without a

license as required by the Construction Industries Licensing

Act if:

(1) the applicant in addition to all other

requirements for licensure pays an additional fee as follows:

(a) in an amount up to ten percent of

the contract price or the value of the nonlicensed contracted

work in the discretion of the commission; or

(b) if the applicant has bid or offered

a price on a construction project and was not the successful

bidder or offeror, the fee shall be at least one percent but

not more than five percent of the total bid amount; and

(2) the director is satisfied that no

incident of such contracting without a license:

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(a) caused monetary damage to any

person; or

(b) resulted in an unresolved consumer

complaint being filed against the applicant with the division.

E. An unlicensed contractor who has performed

unlicensed work may settle the claims against him without

becoming licensed if the claims arise from his first offense

and he pays an administrative fee calculated pursuant to

Paragraph (1) of Subsection D of this section. In addition to

the administrative fee, an additional ten percent of the

amount of the administrative fee shall be assessed as a

service fee.

F. If the total fee to be paid by the contractor

pursuant to the provisions of Subsection D or E of this

section is twenty-five dollars ($25.00) or less, the fee may

be waived.

G. The director shall report every incident of

nonlicensed contracting work to the taxation and revenue

department to assure that the contractor complies with tax

requirements and pays all taxes due."

Section 4. Section 60-13-16 NMSA 1978 (being Laws 1967,

Chapter 199, Section 18, as amended) is amended to read:

"60-13-16. DIVISION--QUALIFYING PARTY--EXAMINATION--

CERTIFICATE.--

A. Except as otherwise provided in this section,

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no certificate of qualification shall be issued to an

individual desiring to be a qualifying party until he has

passed with a satisfactory score an examination approved and

adopted by the division.

B. The examination shall consist of a test based

on general business knowledge, rules and regulations of the

division and the provisions of the Construction Industries

Licensing Act. In addition, applicants for a GB, MM or EE

classification or for any other classification that the

commission determines to be appropriate shall take a test

based on technical knowledge and familiarity with the

prescribed codes and minimum standards of the particular

classification for which certification is requested. The

division shall provide examinations in both English and

Spanish.

C. In lieu of the examination to determine

knowledge of business and construction industries law provided

in Subsection B of this section, an applicant may satisfy the

business and law knowledge requirement by receiving a

certificate of completion of a business and law course of

study offered by an accredited education institute approved

by the commission. The course and any preparation and

instruction materials shall be available in both English and

Spanish and shall be made available to the division, the

commission or the designated agent of the division, upon

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request, for review.

D. If a contractor's license is subject to

suspension by the commission and if the suspension is based on

the requirement that the licensee employ a qualifying party

and the employment of the qualifying party is terminated

without fault of the licensee, a member of that trade who is

experienced in the classification for which the certificate of

qualification was issued and has been employed for five or

more years by the licensed contractor shall be issued without

examination a temporary certificate of qualification in the

classification for which the contractor is licensed. The

temporary qualifying party is required to pass the regular

examination as set forth in Subsection B of this section

within ninety days of issuance of a temporary certificate of

qualification.

E. The certificate of qualification is not

transferable.

F. A qualifying party whose certificate is revoked

by the commission shall not reapply for a certificate for one

year."

Section 5. Section 60-13-20 NMSA 1978 (being Laws 1967,

Chapter 199, Section 22, as amended) is amended to read:

"60-13-20. FEES ESTABLISHED BY THE DIVISION--PAYMENT OF

EXAMINATION AND LICENSING SERVICE FEES.--

A. The division shall by regulation establish and

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charge reasonable candidate and applicant fees for each

license and certificate classification for initial

applications, initial and additional examinations, license

issuance and renewals, certificate of qualification issuance

and renewal, and licensing verification services.

B. The division by regulation may provide that

fees charged pursuant to Subsection A of this section shall be

paid to the agency providing or administering the service if

the service is provided pursuant to authority of the

division."

Section 6. Section 60-13-39 NMSA 1978 (being Laws 1967,

Chapter 199, Section 42, as amended) is amended to read:

"60-13-39. CERTIFICATES AND EXAMINATION.--

A. Certificates of competence issued by the

division are not transferable and shall expire on the date

established by the division, not more than three years from

the month of issuance.

B. Application shall be made before the expiration

date for renewal of a current certificate of competence and

shall be accompanied by the fee prescribed for the initial

issuance of the certificate.

C. Applications for a renewal of a certificate of

competence shall be filed with the division prior to the last

working day before the certificate expires. An expired

certificate shall be renewable within a six-month period

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without examination and only upon paying a fee in twice the

amount of the renewal fee. If the certificate has not been

renewed within the six-month period, it shall be canceled."

Section 7. Section 60-13-58 NMSA 1978 (being Laws 1978,

Chapter 194, Section 1, as amended) is amended to read:

"60-13-58. TERMINATION OF AGENCY LIFE--DELAYED REPEAL.-

-The construction industries commission and division and its

trade bureaus are terminated on July 1, 2005 pursuant to the

Sunset Act. The construction industries commission and

division and its trade bureaus shall continue to operate

according to the provisions of Chapter 60, Article 13 NMSA

1978 and Chapter 70, Article 5 NMSA 1978 until July 1, 2006.

Effective July 1, 2006, Chapter 60, Article 13 NMSA 1978 and

Chapter 70, Article 5 NMSA 1978 are repealed."

Section 8. A new section of the Construction Industries

Licensing Act is enacted to read:

"CONSTRUCTION INDUSTRIES DIVISION REGULATORY COMPLIANCE

REVOLVING FUND CREATED--APPROPRIATION.--The "construction

industries division regulatory compliance revolving fund" is

created. All money collected by the division for plan review,

building permits and inspection services pursuant to the

Construction Industries Licensing Act shall be deposited with

the state treasurer to be credited to the fund. Money in the

fund is appropriated to the division. Fees for plan review,

building permits and inspection services shall be established

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by regulations adopted by the division and approved by the

commission. Disbursements from the fund shall be made by

warrants signed by the secretary of finance and

administration, based upon vouchers signed by the director and

only in accordance with a budget approved by the department of

finance and administration. Expenditures from the fund shall

be used to achieve compliance with the provisions of the

Construction Industries Licensing Act. Money in the fund

shall not revert at the end of the fiscal year."

Section 9. A new section of the Construction Industries

Licensing Act is enacted to read:

"CONSTRUCTION INDUSTRIES DIVISION PUBLICATIONS REVOLVING

FUND CREATED--APPROPRIATION.--The "construction industries

division publications revolving fund" is created. All money

collected by the division from the sale of publications and

information related to the licensing and regulatory provisions

of and issues arising under the Construction Industries

Licensing Act and regulations adopted pursuant to that act

shall be deposited with the state treasurer to be credited to

the fund. Money in the fund is appropriated to the division.

Money in the fund shall be used only for printing and

maintenance of publications and information related to the

licensing and regulatory provisions of and issues arising

under the Construction Industries Licensing Act and

regulations adopted pursuant to that act. Disbursements from

the fund shall be made by warrants signed by the secretary of

finance and administration, based upon vouchers signed by the

director and only in accordance with a budget approved by the

department of finance and administration. Money in the fund

shall not revert at the end of the fiscal year."

Section 10. TEMPORARY PROVISION--APPROPRIATION OF

BALANCE IN JOURNEYMEN TESTING REVOLVING FUND.--The balance

remaining in the journeymen testing revolving fund on June 30,

1997, is appropriated to the construction industries division

of the regulation and licensing department for expenditure in

fiscal years 1998, 1999, and 2000 in accordance with approved

budgets for the division. Any unexpended or unencumbered

balance remaining at the end of fiscal year 2000 shall revert

to the general fund.

Section 11. REPEAL.--Section 60-13-40.1 NMSA 1978

(being Laws 1983, Chapter 82, Section 2, as amended) is

repealed.

Section 12. EFFECTIVE DATE.--The effective date of the

provisions of this act is July 1, 1997.

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