GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

H	1 

HOUSE BILL 1256

Short Title:  Study Residential Contractor Licensing Requirements. (Public)

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Sponsors: Representative Earle.

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Referred to:  Rules, Calendar and Operations of the House.

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April 15, 1999

A BILL TO BE ENTITLED
AN ACT TO CREATE A LEGISLATIVE STUDY COMMISSION TO STUDY THE NEED FOR INCREASED REGULATION OF THE HOMEBUILDING INDUSTRY.
The General Assembly of North Carolina enacts:
Section 1.  The Homebuilding Industry Study Commission is created.  The Commission shall consist of 15 members to be appointed as follows:
(1)	Three members of the House of Representatives appointed by the Speaker of the House of Representatives.
(2) 	Two members of the public appointed by the Speaker of the House of Representatives; one of whom shall be a licensed general contractor specializing in residential construction, and one of whom shall be a licensed home inspector.
(3)	Three Senators appointed by the President Pro Tempore of the Senate.
(4)	Two members of the public appointed by the President Pro Tempore of the Senate; one of whom shall be a licensed general contractor and one of whom shall be either a registered architect with a specialty in residential design or a structural engineer.
(5)	Five members of the public to be appointed by the Governor; one of whom shall be a local code enforcement official, one of whom shall have expertise in residential construction issues but who is not engaged in the residential construction business, and three of whom shall represent the public at large.
Section 2.  The Speaker of the House of Representatives shall designate one Representative as Cochair and the President Pro Tempore of the Senate shall designate one Senator as Cochair of the Commission.
Section 3.  The Commission shall:
(1)	Investigate the nature and number of complaints being lodged against residential contractors by home buyers.
(2)	Study the limitations on the State Licensing Board for General Contractors to adequately address consumer complaints including:
a.	Whether to create a separate licensing board for contractors specializing in residential construction.
b.	The need for the development of a workmanship standard for the residential construction industry.
c.	The need to provide the State Licensing Board for General Contractors with greater enforcement authority including the authority to require correction of construction deficiencies and the authority to impose civil penalties.
(3)	Determine whether additional construction trades, such as framing and masonry, should be subject to licensure.
(4)	Study the need for additional remedies for home buyers that have suffered damages as a result of negligence or incompetence by the home builder.
(5)	Evaluate the role and responsibilities of local building inspectors in the home-building process.
(6)	Review and evaluate the efforts in other states to address problems in the residential construction industry.
(7)	Study any other matters relating to the regulation of the residential construction industry in this State.
Section 4.  The Commission may make an interim report to the 2000 Regular Session of the 1999 General Assembly.  The Commission shall submit a final report of its findings and recommendations to the General Assembly on or before the first day of the 2001 Session of the General Assembly by filing the report with the President Pro Tempore of the Senate and the Speaker of the House of Representatives.  Upon filing its final report, the Commission shall terminate.
Section 5.  The Commission, while in the discharge of official duties, may exercise all the powers provided for under G.S. 120-19 and G.S. 120-19.1 through G.S. 120-19.4.  The Commission may meet at any time upon the joint call of the Cochairs.  The Commission may meet in the State Legislative Building or the Legislative Office Building.
Section 6.  Members of the Commission shall receive per diem, subsistence, and travel allowances in accordance with G.S. 120-3.1, 138-5, or 138-6, as appropriate.
Section 7.  The Commission may contract for professional, clerical, or consultant services as provided by G.S. 120-32.02.  The Legislative Services Commission, through the Legislative Administrative Officer, shall assign professional staff to assist in the work of the Commission.  The House of Representatives' and the Senate's Supervisors of Clerks shall assign clerical staff to the commission, upon the direction of the Legislative Services Commission.  The expenses relating to clerical employees shall be borne by the Homebuilding Industry Study Commission.
Section 8.  When a vacancy occurs in the appointed membership of the Commission the vacancy shall be filled by the same appointing officer who made the initial appointment.
Section 9.  All State departments and agencies and local governments and their subdivisions shall furnish the Commission, upon request, with any information in their possession or available to them.
Section 10. There is appropriated from the General Fund to the General Assembly the sum of twenty-five thousand dollars ($25,000) for the 1999-2000 fiscal year and the sum of twenty-five thousand dollars ($25,000) for the 2000-2001 fiscal year for the expenses of the Commission.
Section 11.  This act is effective when it becomes law.