tivlk e,,,. Regular Session, 2017

Transcription

1 Twentieth Northern Marianas Commonwealth Legislature tivlk e,,,. Regular Session, 0 S. B. 0..aw A BILL FOR AN ACT To require all contractors to be licensed in the Commonwealth of the Northern Mariana Islands. BE IT ENACTED BY THE TWENTIETH NORTHERN MARIANAS COMMONWEALTH LEGISLATURE: Section. Findings. The purpose of this Act is to establish a licensing requirement for all contractors operating in the Commonwealth in order to protect the public's health, safety and general welfare in dealing with persons engaged in the construction industry and to provide the public protection against the incompetent, inexperienced, unlawful and unfair practices of contractors with whom they may contract. Furthermore, this Act adds an additional one member to the Board to represent the contractors, and names the Building Safety Official from the Department of Public Works, Building Code Division, as a non-voting member. The member representing the contractors must be actively engaged in the contracting business in the Commonwealth for a period of not less than five years preceding the date of their appointment. Section. Authority. The Board of Professional Licensing is given the authority to regulate and license all contractors in the Commonwealth. Section. Amendments. a. CMC is amended to read as follows:

2 SENATE BILL 0-".I-. ) ". Board of Professional ppointment: Qualifications. There is m the Commonwealth Government a Board of Professional Licensing, a regulatory board given the power by law to license and regulate architects, engineers, land surveyors, landscape architects, contractors and real property appraisers and whose duty shall be to administer the provisions of this Act, composed of six members appointed by the Governor with the advice and consent of the Senate. One member shall be from Tinian, one member shall be from Rota and four members shall be from Saipan. The reduction in membership shall take effect through attrition. Of the six members, at least one member shall be a woman, one member shall be a Commonwealth of the Northern Mariana Islands contractor, and three members shall be from the other professional fields as set forth in this Act. The Building Safety Official from the Department of Public Works, Building Code Division, shall serve as a non-voting member. Each member shall have been a resident of the Commonwealth for at least three years-:- A member practicing the profession shall have been 0 engaged in the practice of the member's profession for at least five years immediately preceding the date of the member's appointment and is also licensed to practice the profession in the - -

3 ..-- SENA TE BILL 0-f. 0 b. Commonwealth. The public member(s) of the Board shall not be or have been an engineer, architect, land surveyor, landscape architect, contractor or real property appraiser. CMC (a), (r), and (s) are amended to read as follows ". Board of Professional Licensing Powers. The Board shall have the power, jurisdiction and authority to: (a) Adopt and amend all bylaws, regulations, rules of procedures not inconsistent with the constitution and laws of the Commonwealth or this Act, including the adoption and promulgation of the Rules of Professional Conduct for architects, engineers, land surveyors, landscape architects, and contractors which shall be binding upon persons licensed under this Act and which shall be applicable to partnerships and corporations holding a Certificate of Authorization, which is necessary for the proper performance of its duties and the regulation of its procedures, meetings, records, examinations and the conduct thereof; (r) Require a demonstration of continuing competency of architects, engineers, land surveyors, landscape architects, contractors, or real property appraisers as a condition of renewal of license; and (s) Do all other things necessary to carry out the provisions of this Act, the rules and regulations and to meet the requirements - -

4 .. " SENA TE BILL 0- \, C. of federal law where necessary regarding licensing or certification of architects, engineers, land surveyors, landscape architects, contractors and real property appraisers that the Board determines are appropriate for these professions in the CNMI." CMC is amended to read as follows: ". Board of Professional Licensing Staff. The Board may, subject to budgetary appropriation, employ staff as required to assist it in performing its duties. The executive director shall be exempt from civil service and shall receive an annual salary as determined by the Board pursuant to CMC. The executive 0 director of the Board of Professional Licensing shall be the executive head and shall be responsible to the Board for carrying out all the programs and administrative duties as provided in this Act and the powers delegated to him or her by the Board. The executive director may, subject to budgetary appropriation, employ staff as required to assist it in performing its duties. The Legislature will appropriate additional funds to the Board to license and regulate contractors through its annual appropriation act." d. CMC is hereby amended as follows: ". Licensure of Professionals. In order to safeguard life, health and property, no person except those exempted by Section of this Chapter or the Contractor's Licensing Act, shall practice or offer to practice professional engineering, - -

5 l SENATE BILL 0-~architecture, land surveymg, landscape architecture, contracting, or real property appraisal in the Commonwealth unless such person s duly licensed or certified under this Chapter by the Board." Section. Enactment. The following is enacted subject to codification by the Law Revision Commission: "Section. Title. This Act shall be known as the Contractor's Licensing Act. Section. Definitions. As used in this Act: (a) "Board" means the Board of Professional Licensing. (b) "Contractor" means a person who, in the pursuit of an independent business, undertakes or offers to perform, or claims to have the capacity to perform, or submits a bid for a project to construct, alter, repair, move, or demolish a building, highway, road, railroad, or any type of fixed structure, including excavation and site development and erection of scaffolding. This also includes general contractors as set forth in 0 CMC section 0 (b) and (h). (c) "Contractor" includes a subcontractor, and any person, general engineering, building or specialty contractor who performs any of the activities listed above on Section (b). ( d) "Corporation" includes an association, business trust or any organized trust or any organized group of persons whether or not - -

6 SENA TE BILL 0-'' 0 registered as a corporation in the Commonwealth of the Northern Mariana Islands. (e) "Person" means an individual, partnership, joint venture, corporation, limited liability company, or any combination thereof, including any other party recognized at law as a person. (f) "RME" means Responsible Managing Employee. Section. Power and Duties of the Board. In addition to any other duties and powers authorized by law, the Board shall: (a) Grant licenses, including conditional licenses, to Contractors pursuant to this Act and rules and regulations; (b) Adopt, amend or repeal such rules and regulations as the board may deem proper to fully effectuate the provisions of this Act and carry out the purpose thereof which is the protection of the general public, and shall have the force and effect of law; (c) The rules and regulations may reqmre contractors to make reports to the Board containing such items of information as will better enable the Board from time to time to amend the rules and regulations. The rules and regulations may require contractors to furnish reports to owners containing such matters of information as the Board deems necessary to promote the purpose of this Act. The enumeration of specific matters which may properly be made the subject of rules shall not be - -

7 SENATE BILL 0-0 construed to limit the board's general power to make all rules necessary fully to effectuate the purpose of this Act; ( d) Enforce this Act and rules and regulations adopted pursuant thereto; (e) Suspend or revoke any license for any cause prescribed by this Act, or for any violation of the rules and regulations, and refuse to grant, renew, restore, or reinstate any license for any cause which would be grounds for revocation or suspension of a license; (f) Maintain memberships in professional, governmental, and other organizations; (g) Contract for professional testing services to prepare, administer and grade such examinations and tests for applicants as may be required for the purposes of this Act. The Board shall determine the scope and length of such examinations and tests, whether they shall be oral, written or both, and the score that shall be deemed a passing score; (h) Determine and collect reasonable fees; (i) Apply for relief by injunction in the Superior Court, without bond, to enforce the provisions of this Act, or to restrain any violation thereof. In such proceedings, it shall not be necessary to allege or prove, either that an adequate remedy at law does not exist, or that substantial or irreparable damage would result from the continued violation thereof. The - -

8 SENA TE BILL 0~" 0 members of the Board shall not be personally liable under these proceedings; U) Do all other things necessary to carry out the provisions of this Act, the rules and regulations and to meet the requirements of federal law where necessary regarding licensing and regulating of contractors, that the Board determines are appropriate for contractors in the Commonwealth of the Northern Mariana Islands; and (k) Notwithstanding any other provision of this Act, the Board's power, authority, and jurisdiction shall extend to persons engaged as a contractor regulated by the Board, including but not limited to nonlicensees and persons offering their own services or the services of their employees or agents. Section. Exemptions. The provisions of this Act shall not apply to: (a) An officer or employee of the United States and officers or employees of the Commonwealth while in the performance of their governmental duties; (b) Any person acting as a receiver, trustee in bankruptcy, personal representative, or any other person acting under any order or authorization of any court; (c) A person who sells or installs any finished products, materials, or articles of merchandise that are not actually fabricated into and do not - -

9 SENATE BILL 0-~" 0 become a permanent fixed part of the structure, or to the construction, alteration, improvement, or repair of personal property; ( d) Work on one project under one or more contracts, the aggregate contract price for which labor and materials and all other items is less than $,000; this exemption does not apply when the work is only part of a larger or major operation, whether undertaken by the same or different contractor, or when the work is divided into contracts of amounts less than $,000 for the purpose of evasion of this Act or otherwise; (e) A person working on that person's own property, whether occupied by the person or not, and a person working on that person's residence, whether owned by the person or not; (f) An owner or tenant of a commercial property who uses the owner's or tenant's own employees to do maintenance, repair, and alteration work upon that property; (g) A registered architect or professional engineer acting solely in the person's professional capacity; (h) Owners or lessees of property who build or improve residential, farm, industrial or commercial buildings or structures on property for their own use for use by their grandparents, siblings, or children and do not offer the buildings or structures for sale or lease. In all actions brought under this paragraph, proof of sale or lease, or offering for sale or lease, of the structure within one year after completion is prima facie evidence that - -

10 f>.. SENATE BILL 0-~._, l the construction or improvement of the structure was undertaken for the purpose of sale or lease; (i) Any partnership or joint venture if all members thereof hold licenses issued under this Act or if the person or persons who have direct management of the contracting business thereof hold a license; U) Any project or operation where it is determined by the Board that less than ten persons are qualified to perform the work in question and that the work does not pose a potential danger to public health, safety, and welfare; or (k) Any public works project that requires additional qualifications beyond those established by the licensing law and which is deemed necessary and in the public interest by the contracting agency. Section. Classification ( a) For the purpose of classifications, the contracting business includes any or all the following branches: () General Engineering Contracting; () General Building Contracting; () Specialty Contracting. (b) A general engineering contractor s a contractor whose 0 principal contracting business is in connection with fixed works requiring specialized engineering knowledge and skill, including the following divisions or subject: irrigation, drainage, water power, water supply, flood - -

11 .,. SENATE BILL 0-C. control, inland waterways, harbors, docks and wharves, shipyards and ports, dams and hydroelectric projects, levees, river control airways and reclamation works, railroads, highways, streets and roads, tunnels, airports and airways, sewers and sewage disposal plants and systems, waste 0 reduction plants, bridges, overpasses, under passes and other similar works, pipelines and other systems for the transmission of petroleum and other liquid or gaseous substances, parks, playgrounds and other recreational works, refineries, chemical plants and similar industrial plants requiring specialized engineering knowledge and skill, powerhouses, power plants and other utility plants and installations, mines and metallurgical plants, land leveling and other earthmoving projects, excavating, grading, trenching, paving and surfacing work and cement and concrete works in connection with the above mentioned fixed works. (c) A general building contractor is a contractor whose principal contracting business is in connection with any structure built, being built, or to be built, for the support, shelter, and enclosure of persons, animals, chattels, or movable property of any kind, requiring in its construction the use of more than two unrelated building trades or crafts, or to do or superintend the whole or any part thereof. ( d) A specialty contractor is a contractor whose operations as such are the performance of construction work requiring special skills such as, but not limited to, electrical, drywall, painting and decorating, - -

12 ... SENA TE BILL 0- C, 0 landscaping, flooring, carpet laying by any installation method, plumbing, or roofing work, and others whose principal contracting business involves the use of specialized building trades or crafts. Section. Powers to Classify and Limit Operations. (a) The Board may adopt rules and regulations necessary to effect the classification of contractors and shall require a written examination in a manner consistent with established usage and procedures as found in the construction business, and may limit the field and scope of the operations of a licensed contractor to those in which the contractor is classified and qualified to engage, as defined in Section. (b) A licensee may make application for classification and be classified in more than one classification if the licensee meets the qualifications prescribed by the Board for such additional classification or classifications. (c) This section shall not prohibit a specialty contractor from taking and executing a contract involving the use of more crafts or trades, if the performance of the work in the crafts or trades, other than in which the specialty contractor is licensed, is incidental and supplemental to the performance of work in the craft for which the specialty contractor is licensed. Section. Licenses Required. No person covered by of this Act shall act, or assume to act, or advertise, as general engineering - -

13 SENATE BILL 0-")t, l 0 contractor, general building contractor, or specialty contractor without a license previously obtained under and in compliance with this Act and the rules and regulations to license contractors. Section. Application for Licensure. (a) Application for licensure shall be made upon application forms to be furnished by the Board and shall be signed and sworn to under penalty of perjury by the applicant. The Board shall provide by rules and regulations the qualifications and requirements for licensure for each type of contractor branch. In the case of a partnership, joint venture, or corporation, any partner, member, or officer thereof may sign the application and verify the same on behalf of the applicant. (b) The application and licensing fees shall be as provided in the regulations adopted by the Board. Section. Investigation Permitted. The Board may investigate, classify, and qualify applicants for contractor's license. Section. No License Issued When. (a) No License hereunder shall be issued to: () Any person unless the person has filed an application and paid the applicable fees; () Any individual unless the individual is age eighteen years or more; - -

14 SENA TE BILL () Any person unless the person meets the licensi ng requirements as prescribed in the regulations adopted by the Board; () Any person who does not possess a history of honesty, truthfulness, financial integrity, and fair dealing; provided that any person who during the five years prior to application has failed to satisfy an undisputed debt of a judgment relating to services or materials rendered in connection with operations as a contractor shall be presumed not to possess a history of financial integrity; () Any person unless the person has successfully passed a written examination as prescribed by the Board; () Any joint venture unless the contracting business thereof is under the direct management of a member or employee thereof; and unless the member or employee hold an appropriate license; () Any individual who is unable to qualify as a contractor or any partnership or corporation, unless the contracting business of the individual, partnership, or corporation is under the direct management of an employee, partner, or officer thereof who holds an appropriate license; () Any person unless the person submits satisfactory proof to the Board that the person has obtained workers' compensation and liability insurance; or - -

15 SENA TE BILL 0-0 () Any person unless the person submits a bond if required by the Board under Section. (b) Any license issued hereunder shall not be renewed if the licensee no longer meets any of the foregoing qualifications. (c) An application shall be considered abandoned if the application is not completed and the required documents or other information are not submitted to the Board within two years from the last date the documents or information were requested. Section. Requirements to Maintain License. (a) A licensed contractor shall have and maintain in full force and effect the following: () Workers' compensation insurance; unless the licensee is excluded from the requirements of this Act by law; () Liability insurance from an insurance company for comprehensive personal injury and property damage liability; and () Bond when required by the Board, under Section. (b) Failure, refusal, or neglect of any licensed contractor to maintain in full force and effect, the applicable worker's compensation insurance, liability insurance, or bond shall cause the automatic forfeiture of the license of the contractor effective as of the date of expiration or cancellation of the contractor' s workers' compensation insurance, liability insurance, or bond. - -

16 ". SENA TE BILL 0-ll- 0 (c) The Board shall not restore the forfeited license until satisfactory proof of continuous insurance and bond coverage is submitted to the Board as required by this section. Section. Place of Business and Posting of License. (a) A licensed contractor shall have, maintain, and operate from a definite place of business in the Commonwealth of the Northern Mariana Islands and shall display therein his or her contractor's license. (b) The licensed contractor shall report any change of address or telephone number to the Board within ten business days from such change. Section. Renewal; Inactive License. (a) Every license expires two years following its issuance or renewal and becomes invalid after that date unless renewed on a timely basis prior to such expiration. The Board shall mail, at least one month in advance of the expiration of the license, a notice to every person or firm licensed hereunder giving the date of expiration, the fee, and any additional requirement of a license. The Board shall by regulation fix the renewal fee of a license. (b) Failure, neglect, or refusal of any licensee to submit all documents required by the Board and pay the fees before the expiration date shall constitute a forfeiture of the license. Any forfeited license may be reinstated upon submittal of all required documents and fees, including penalty fees, within ninety (0) days from the expiration date. - -

17 SENA TE BILL 0-0 (c) Upon written request of a licensee, the Board may place that person's active license in an inactive status. The license, upon payment of the inactive license fee, may continue inactive for a period of two years after which time it must be reactivated or shall automatically become forfeited. The license may be reactivated at any time during the two year period by making written request to the Board and by fulfilling all the requirements, including the payment of the applicable fees. While in an inactive status, a licensee shall not engage in the contracting business. A licensee who violates this provision shall be subject to discipline under this Act and the regulations. Section. Bond. The Board may require each licensee, applicant, individual or corporate, who is a general or specialty contractor to put up bond in the sum of not less than $,000 executed by the licensee or applicant as principal and by a surety company authorized to do business in the CNMI as surety. The Board, in exercising its discretion shall take into consideration the applicant's or licensees' financial condition and experience in the field. The bond shall be in such form as the Board may prescribe, conditioned upon the payment of wages to the employees of the contractor or any other person or entity entitled to such wages when due, and giving employees or any other person or entity entitled to such wages who have not been paid a right of action on the bond in their own names; and upon - -

18 SENA TE B ILL 0-)\. l 0 the honest conduct of the business of the licensee, and upon the right of any person injured or damaged by an wrongful act of the licensee to bring an action on the bond; provided that any claim for wages shajj have priority over ajj other claims. Section. Statement of Licensure. The CNMI Building Safety Code Division of the Department of Public Works which requires the issuance of a permit as a condition precedent to the construction, alteration, improvement, demolition, or repair of any building or structure shall also require that each applicant for such a permit file as a condition to the issuance of a permit a statement that the applicant is licensed under this Act, giving the license number(s) and stating that the license is in full force and effect, or, if the applicant is exempt from this Act, the basis for the claimed exemption; provided that if the applicant claims an exemption under Section (i), the applicant shall also be required to certify that the building or structure is for the applicant's personal use and not for use or occupancy by the general public. The CNMI Building Safety Code Division shall verify the license against a list of licensed contractors provided by the Board, which list shall be updated at least quarterly. They shall also verify that the applicant is in fact the contractor so licensed or the contractor's duly authorized agent. Section. Advertising. - -

19 SENATE BILL 0->\. (a) It is misdemeanor for any person, including a person who is exempt by Section from this Act, to advertise with or without any limiting qualifications as a contractor unless such person holds a valid license under this Act for the good and services advertised. "Advertise" as used in this section includes, but is not limited to, the issuance of any card, sign, or device to any person; the causing, permitting, or allowing of any sign or marking on or in any building, vehicle or structure; or advertising in any newspaper or magazine; any listing or advertising in any directory under a classification or heading that includes the work "contractor"; or commercials broadcast by airwave transmission. (b) A contractor may advertise in print or broadcast medium, as defined in subsection (a) only if the contractor includes in the advertisement or listing the contractor' s applicable and current license number, and provides proof of the number's validity to the publisher or advertising medium. Section. Licensure; Penalties. State of Emergency or Disaster; Emergency 0 (a) Notwithstanding any other provision or law to the contrary, the Board may issue emergency contractor's licenses during a state of emergency or disaster duly declared by the governor upon a determination by the Board that a shortage of Commonwealth of the Northern Mariana Islands licensed contractors exists. - -

20 SENATE BILL 0-,' (b) To qualify for an emergency contractor' s license, an applicant shall: 0 ( ) Provide proof of licensure as a contractor in another U.S. state or territory with similar contractor licensing requirements as those in the CNMI, that the license is current, and that it has been in good standing for the past two years; () Provide proof of liability insurance for comprehensive personal injury and property damage liability, obtained through an insurer authorized to do business in the CNMI or other insurer acceptable to the Board; () Submit proof of workers' compensation insurance; ( ) Provide proof of bond; () Submit a current financial statement certified by an accountant and applicable credit reports; ( ) Pay all application and license fees; () Submit a tax clearance statement from the state or territory where contractor is licensed to do business. ( c) The classifications of emergency contractor' s license issued and the duration of the emergency contractor' s licenses shall be determined by the Board based on the nature and duration of the state of emergency or disaster, and the needs and best interests of the public

21 SENATE BILL 0-a- 0 ( d) Any person who violates this Act specifically in connection with the offer or performance of repairs to a residential or nonresidential structure for damage caused by a natural disaster in the CNMI for which a state of emergency or disaster is proclaimed by the governor, may be punished by a fine of up to $,000, imprisonment up to one year, or both, in addition to all other remedies or penalties. Section. Suspension, Revocation, Refusal to Issue, Renew or Reinstate of License (a) The Board shall have the power to impose administrative penalty and/or suspend, revoke, refuse to issue, renew or reinstate the license of any person for any cause authorized by law, including but not limited to the following: () The practice of any fraud or deceit in obtaining or attempting to obtain or renew the contractor' s license; () Any dishonest, fraudulent, or deceitful act as a contractor that that causes substantial damage to another; () Pursuing a continued and flagrant course of misrepresentation or of making false promises through advertising or otherwise; () Abandonment of any construction project or operation without reasonable or legal excuse; - -

22 SENATE BILL 0-l,' 0 () Willful diversion of funds or property received for prosecution or completion of a specific construction project or operation, or for a specified purpose in the prosecution or completion of any construction project or operation, and the use thereof for any other purpose; ( ) Willful departure from, or willful disregard of plans or specifications in any material respect without consent of the owner or the owner's duly authorized representative, that is prejudicial to a person entitled to have the construction project or operation completed in accordance with those plans and specifications; () Willful violation of any law of the Commonwealth relating to building, including any violation of any applicable rules or regulations of the Department of Health Services, or any applicable safety or labor and immigration law; () Failure to make and keep records showing all contract~, documents, records, receipts, and disbursements by a licensee of all the licensee's transactions as a contractor for a period of not less than three years after completion of any construction project or operation to which the records refer or to permit inspection of such records by the Board; () When the licensee being a partnership or joint venture permits any partner, member, or employee of the partnership or - -

23 SENATE BILL 0-' 0 joint venture who does not hold a license to have the direct management of the contracting business thereof; () When the licensee being a corporation permits any officer or employee of the corporation who does not hold a license to have the direct management of the contracting business thereof; () Misrepresentation of a material fact by an applicant in obtaining a license; () Willful failure in any material respect to comply with this Act or the rules and regulations adopted pursuant thereof; () Failure of a licensee to complete in a material respect any construction project or operation for the agreed price if the failure is without legal excuse; () Willful failure or refusal to prosecute a project or operation to completion with reasonable diligence; () Willful failure to pay when due a debt incurred for services or materials rendered or purchased in connection with the licensee's operations as a contractor when the licensee has the ability to pay or when the licensee has received sufficient funds therefore for payment for the particular operation for which the services or materials were rendered or purchased; () The false denial of any debt or the validity of the claim therefore with intent to secure for a license, the licensee's - -

24 SENATE BILL 0-,.. 0 employer, or other person, any discount of such debt or with intent to hinder, delay, or defraud the person to whom such debt is due; () Failure to secure or maintain workers' compensation and liability insurance; () Knowingly entering into a contract with an unlicensed contractor involving work or activity for the performance of which licensing is required under this Act; () When the licensee, being a partnership, corporation, or joint venture, caused the non-payment of employees' wages and/or the abandonment of contract workers to become a burden on the government; (0) Failure to pay delinquent taxes, interest, and penalties to the Division of Revenue and Taxation that relate to the business of contracting, or to comply with the terms of a payment plan with the division for the payment of such delinquent taxes, interest, and penalties. () When the licensee, being a partnership, corporation, or joint venture, caused the non-payment of employees' medical bills by the Department of Health Services; () Willful failure to pay when due a debt or penalty incurred for damaging a public utility operated by the - -

25 SENATE BILL 0.:.,C. 0 Commonwealth Utilities Corporation or the Department of Public Works; () Conviction of or pleading guilty to a crime as a licensed contractor either in the Commonwealth or in another jurisdiction. A certified copy of the judgment of the court of such conviction or plea shall be presumptive evidence of such conviction or plea for the purpose of any hearing under this part. A plea of nolo contendre or its equivalent accepted by the court shall be considered as a conviction. It is the duty of each applicant or licensee to report such conviction to the Board within fifteen () days following entry of such conviction, notwithstanding any appeal. (b) No licensee shall be suspended for longer than two years and no person whose license is revoked shall be eligible for a new license until the expiration of two years. At such time, an original application shall be submitted and applicant must meet the requirements and qualifications under the regulations. (c) For purpose of this Section, the Board in cooperation and in conjunction with the Commonwealth Utilities Corporation, Department of Public Works, Department of Health Services, Division of Revenue and Taxation of the Department of Finance and Department of Labor, may have investigative powers for carrying out the intent of this Section. - -

26 SENATE BILL 0-tf. 0 Section. Disciplinary Action; Procedures. (a) Any person, including a Board member, may file or submit charges in writing with the Board against any person subject to the Board's jurisdiction, including but not limited to non-licensees. The Board or its designee shall promptly and fully investigate all allegations filed with the Board. The charges, unless dismissed without hearing by the Board as unfounded or trivial, shall be heard and determined by the Board consistent with the requirements of the CNMI Administrative Procedures Act, pursuant to CMC, et seq. (b) Until an investigation is completed and administrative charges are filed against the licensee(s), or the matter is referred to the Attorney General for criminal prosecution, any and all matters related to the allegation(s) including the name(s) of the party filing such charges, shall be confidential and exempt from disclosure to the public pursuant to applicable law including, but not limited to the Open Government Act of, lcmc 0, et seq. ( c) The time and place of said hearing shall be fixed by the Board, and a copy of the charges, together with a notice of the time and place of hearing, shall be personally served on or mailed to the last known address of such individual licensee or firm at least thirty (0) days before the date fixed for the hearing. - -

27 SENATE BILL 0-~,. 0 (d) The members of the Board or the Board's authorized representative presiding at a hearing may: () Administer oaths and affirmations; () Issue subpoenas to compel the attendance of witnesses and the production of records and documents; () Rule on offers of proof and receive relevant evidence; ( ) Require and supervise discovery, including taking depositions or have depositions taken; () Regulate the course of the hearing, including administer sanctions for conduct within Rule of the CNMI Rules of Civil Procedure; () Hold conferences for the settlement or simplifications of the issues by consent of the parties; () Dispose of procedural requests or similar matters; and () Make or recommend orders or decisions in accordance with this Act. Section 0. Disciplinary Action. (a) If the accused is found guilty, he/she shall be subject to the following: ( ) refusal or denial of license; () suspension; () revocation; - -

28 SENATE BILL 0-)W 0 () license with conditions and/or probation; () fine or civil penalty; ( ) dismissal of charges; () other discipline as appropriate and permitted by law. (b) The Board shall provide that upon concluding the hearing, findings, decisions and order shall be issue within 0 days. ( c) Upon failure or refusal to comply with such order of the Board, or upon failure to honor its subpoena, as herein provided, the Board may apply to a court of any jurisdiction to enforce compliance with same. Section. Aiding and Abetting. Aiding or abetting an unlicensed person to evade the provisions of this Act or knowingly combining or conspiring with an unlicensed person, or allowing one' s license to be used by an unlicensed person, or acting as agent or partner or associate, or otherwise, of an unlicensed person, with the intent to evade the provisions of this Act, shall be a misdemeanor. Section. Violation, Penalty. (a) Any licensee who contracts outside the appropriate scope of classification for which the licensee is licensed shall be fined $00 for the first offense, $,000 for the second offense, and not less than $,00 or more than $,000 for any subsequent offense. - -

29 SENATE BILL 0-af. 0 (b) Any licensee who violates Section (a)(l) and Section shall be fined up to $,000 or up to the full amount of the contract price for each offense, whichever is greater. (c) Except as provided in subsections (a) and (b) any person who violates or fails to comply with this Act shall be fined not less than $0 or more than $,000 for each violation, provided that any person who violates Section shall be fined: () $00 or forty percent (0%) of the total contract price, whichever is greater, for the first offense; () $,000 or forty percent ( 0%) of the total contract price, whichever is greater, for the second offense, and () $,000 or forty percent (0%) of the total contract price, whichever is greater, for any subsequent offense. Section. Disclosure; Contracts. (a) Prior to entering into a contract with a homeowner involving home construction or improvements and prior to the application for a building permit, licensed contractors shall: () Explain verbally in detail to the homeowner all lien rights of all parties performing under the contract including the homeowner, the contractor, any subcontractor or any materialman supplying commodities or labor in the project; - -

30 SENATE BILL 0-f. 0 () Explain verbally in detail the homeowner' s option to demand bonding on the project; how the bond would protect the homeowner and the approximate expense of the bond; and () Disclose all information pertaining to the contract and its performance and any other relevant information that the Board may require by regulations. (b) All licensed contractors performing home construction or improvements shall provide a written contract to the homeowner. The written contract shall: () Contain the information provided in subsection (a) above and any other relevant information that the Board may require by regulations; () Contain notice of the contractor's right to resolve alleged construction defects prior to commencing any litigation; () Be signed by the contractor and the homeowner; and () Be executed prior to performance of any home construction or improvement. (c) For the purpose of this Section, "homeowner" means the owner or lessee of the residential real property, including owners or lessees of condominium or cooperative units. ( d) Any violation of this Section shall be deemed an unfair or deceptive practice and shall be subject to the provisions of this Act

31 SENATE BILL 0-,t., 0 Section. Death or Dissociation. No partnership, joint venture, or corporation shall be deemed to have violated any provision of this Act or the rules and regulations by acting or assuming to act as a contractor after the death or dissociation of a licensee who had the direct management of the contracting business thereof prior to final disposition by the Board of an application for a license made within thirty (0) days from the date of the death or dissociation. Section. Board Jurisdiction to Proceed. The lapsing or suspension of a license by operation of law, by order or decision of the Board or a court of law, or voluntary surrender of a license by the licensee shall not deprive the Board of jurisdiction to proceed with any investigation of or action or disciplinary proceeding against such license or to render a decision suspending or revoking such license. Section. Injunction. The Board may, in addition to any other remedies available, apply through the court for a preliminary or permanent injunction restraining any person from acting or assuming to act or advertising as general engineering, general building or specialty contractor, without a license previously obtained under and in compliance with this Act and the rules and regulations of the Board and upon hearing and for cause shown, the court may grant the preliminary or permanent injunction. - -

32 SENATE BILL 0-.). Section.. Rules and Regulations. The Board shall promulgate rules and regulations necessary to effectuate this Act." Section. Severability. If any provisions of this Act or the application of any such provision to any person or circumstance should be held invalid by a court of competent jurisdiction, the remainder of this Act or the application of its provisions to persons or circumstances other than those to which it is held invalid shall not be affected thereby. Section. Savings Clause. This Act and any repealer contained herein shall not be construed as affecting any existing right acquired under contract or acquired under statutes repealed or under any rule, regulation, or order adopted under the statutes. Repealers contained in this Act shall not affect any proceeding instituted under or pursuant to prior law. The enactment of the Act shall not have the effect of terminating, or in any way modifying, any liability, civil or criminal, which shall already be in existence on the date this Act becomes effective. Section. Effective Date. This Act shall take effect upon its approval by the Governor, or its becoming law without such approval. Prefiled: Date:~Hn Introduced by: - -