NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5250
SPONSOR: Brennan (MS) TITLE OF BILL: An act to amend the general city law, in relation to
the regulation of contractors
PURPOSE OR GENERAL IDEA OF BILL: Adds a new Article 5 to the. General
City Law that provides for the licensing of general contractors in New
York City and permits other cities to enact a local law doing the same.
SUMMARY OF SPECIFIC PROVISIONS: This bill (§75) requires NYC to estab-
lish a "contractors license board" and sets forth its powers and duties.
The bill permits other cities in the State to establish such a board by
local law, if they so choose.
The bill provides a series of definitions. First and foremost, a
"contractor" is one, by oneself or through others, undertakes to "alter,
add to, subtract from, improve, enhance, or beautify any realty or
construct, alter, repair, add to, subtract from, improve, move, wreck,
or demolish any building, highway, road, railroad, excavation, or other
structure, project, development, or improvement, including the erection
of scaffolding or structures or works in connection therewith."
The bill provides for a series of exemptions including officers and
employees of any government when in the performance of their official
duties; a person acting as receiver, trustee in bankruptcy, or one
acting under a court order; one who sells products or merchandise that
is not a permanent part of the structure; any complete job where the
contract price is under $1000; a registered architect or professional
engineer acting solely in their professional capacity; owners who build
or improve one's property for their own use or that of a close relative
(defined) or a public works project in the public interest.
A contractors license board of 13 members appointed by the mayor is
authorized. The members are not paid, but may receive reimbursement for
actual expenses. Five members are to be engineers or building contrac-
tors and five specialty contractors; all with a minimum of 5 years expe-
rience and holding valid licenses for their specialty. Three members
shall not be contractors. All five boroughs shall be represented.
Board powers include: grant licenses as well as suspend or revoke them
for cause; set rules and regulations to carry out their duties which
must be approved by both the Mayor and Commissioner of the department of
Buildings; collect fines and penalties described herein; publish and
distribute materials to further their purpose; prepare, administer and
grade licensing exams.
The legislation provides for different classifications, of contractors -
general engineering contracting; general building contracting and
specialty contracting not otherwise covered by the New York City admin-
istrative code.
Upon applying for a building permit, the license numbers of all contrac-
tors must be included so that the City can verify them against the list
they keep. If an application is filed that is exempt from using licensed
contractors, that is, is being built by the owner, a disclosure state-
ment to that effect, as specified in this bill, must be signed.
Advertising without a license or Without limiting one's qualifications
as a contractor is a misdemeanor. It is also a misdemeanor to aid or
abet an unlicensed person or allow one's license to be used by another,
unlicensed person.
Violators for unlicensed activity may be issued violation notices and
each such notice shall describe the basis of the violation; shall
contain a cease and desist order and assess a penalty as described
below. The notice shall include a written description of the sanctions
for violating the cease and desist order.
Upon receipt of such violation, any person may request a hearing from
the commissioner within 20 days or receipt. The contractors licensing
board shall conduct the hearing. If no request for a hearing is received
in that 20 day period, the violation notice shall be deemed the final
order.
In order to maintain a license, a contractor must maintain in full force
and effect workers' compensation insurance, liability insurance for
personal and property damage and a bond at the discretion of the board
based on contractor's experience and financial condition. If one does
not maintain the above, as required, their license is forfeited until
such time as they obtain the necessary coverage. If that time is greater
than 60 days, all fees are forfeited and they must reapply for a license
as a new applicant.
License shall include address and phone number and must be posted in
their place of business. Change of address or phone number must be
reported to the board within 10 days. Licenses must be renewed every two
years - by September 30 of even numbered years. One may request that the
license be put on inactive status for a biennium. No work may be done
while on inactive status; however, one may reactivate the license upon
request and paying the proper fees.
The board may revoke, suspend or refuse to renew a license for any
number of listed reasons such as dishonest, fraudulent or deceitful acts
that cause damage; engaging in unfair or deceptive acts as described in
article 22-a of the general business law; abandonment of a project with-
out a legal excuse; and others violations of law or misrepresentations.
Penalties are detailed in the bill (§75-z) The board is given the
authority to assess these fines when a violation of this article occurs.
§76 of the bill sets up a procedure for forfeiture of the property if it
is found that work was done by an unlicensed contractor. Furthermore it
provides for payment for goods and services provided by subcontractors.
It also provides for disclosure by the contractor to the homeowner prior
to signing of the contract to do the work what rights the homeowner has.
Finally, the bill provides that if a city under one-million in popu-
lation wishes to license general contractors as this bill provides, it
may adopt such a local law following a public hearing.
JUSTIFICATION: General contracting is a business that affects the
public health, safety and welfare of the people it employs and those who
live in the vicinity of the work it performs. It is most important that
there be laws to protect the neighbors surrounding any construction or
excavation projects especially in densely populated cities such as New
York City. Documentation exists that show broad problems of non-compli-
ance with the building code and zoning resolution that have led to
deaths and severe damages to adjacent properties. Between 2002 and 2005
OSHA reported 80 deaths in NYC construction accidents. in 2002 alone the
Construction Industry Partnership of NYC estimated the cost of
construction accidents at $858 million.
As the City of New York is expected to expand to 9 million people by
2030 it is in the public interest to provide for the licensing of gener-
al contractors so that the unscrupulous ones currently in this profes-
sion can be prevented from doing further harm.
PRIOR LEGISLATIVE HISTORY: A7744A of 2007-08 - referred to Codes
FISCAL IMPLICATIONS TO STATE AND LOCAL GOVERNMENT: To be determined.
EFFECTIVE DATE: January 1, 2012.
