Update on Builder Licensing

There has been a lot of confusion in the language regarding the 5-year requirement from Section O>C>G>A> 43-41-8 (a) (2) that states: "if applying as a qualifying agent for a business organization, such business organization shall be authorized and certified to transact business in Georgia currently and have had such office and place of business continuously for the five years immediately preceding such application.

This requirement is for exam exemption only
It just deals with the structure and location of the business organization
It is separate and distinct from experience or other qualifications

At the October 4, 2006, Licensing Board meeting, it was further pointed out that sole proprietor is NOT a business organization per the definition found in 41-2 (2):

"(2) 'Business Organization' means any partnership, corporation, limited liability entity, business trust, joint venture, or other legal entity, other than an individual person, doing business or seeking, offering, or contracting to do business as a contractor or otherwise performing or acting as a contractor as defined in the Code section."

Example A: Business organizations (not sole proprietors) applying with a qualifying agent may meet the 5-year requirement for exam exemption even if the organization has changed in tuype and/or name but not substance.

Must show business organization has been in existence in Georgia for 5 or more years. Does not have to be at same physical address.
AND must show officers/members of the companies involved so that the Board can determine if substantially similar.
Submit documents, such as (not limited to) articles of incorporation/organization, partnership agreements, etc.
Recommend a notarized letter (affidavit) detailing entity changes in organization.

Example B: Business organizations with less than 5 years and having been sole proprietor for part of that time frame cannon meet the 5-year rule for business organization and cannot apply with a qualifying agent. If the applicant wants the exam exemption, they can apply as an individual.

Have individual added as "additional insured" to company insurance policy
Submit affidavits showing that Permits and CO's were done primarily by individual

After exam period and before licensing is fully implemented, HBAG will attempt to clarify with a legislative change that all persons exempted from the exam can qualify new business entities (or the current one) without taking an exam.

Time Line for Residential & General Contractor Licensing

5/9/2005 - Governor Perdue signs SB 124 into law
7/1/2005 - The new residential & general contractors' license law becomes effective
7/1/2005 - Governor appoints the new 14-member Board
8/1/2005 - The new Licensing Board meets to begin developing board rules
10/1/2005 - Public Hearing for Proposed Rules
1/1/2006 - Licensing Board will begin accepting applications for grandfathering & intrastate reciprocity
12/31/2006 - Deadline for eligible candidates to submit application for grandfathering & intrastate reciprocity
1/1/2008 - The law becomes fully enforceable and license is required for doing business in the State of Georgia.

EXAM EXEMPTION

From the current law, the following is already known.............

Applications and necessary proofs for grandfathering must be submitted starting January 1, 2006.
The exam exemption extends for six months for those seeing to be grandfathered based on holding a license from a Georgia local government or appropriate experience - 3 successful Georgia projects over the ten years prior to the application; 10 successful Georgia projects over the 5 years prior to the application; evidence of being engaged in the industry in a supervisory or management capacity for seven of the ten years prior to the application
The Board will deternube adequate of the above...
If seeking exemption from the exam because of holding a similar license from a different state or territory that has a reciprocal agreement with the Board, the application and proofs must be submitted starting July 1, 2006.

Important Websites for Builder Licensing

For current information on rules the State Licensing Board has proposed and adopted, Board meeting dates & minutes, and for applicaitons as they are made available, please see the website of the Secretary of State at: www.sos.state.ga.us/plb/contractors/.

For the original licensing law passed during the 2004 Session, please see: www.legis.state.ga.us/legis/2003_04/versions/hb1003_HB_1003_AP_html

For the "Clean-up" bill passed during the 2005 session, please see: www.legis.state.ga.us/legis/2005_06/versions/sb124_AP_6.html

HBAG