SB0122

SENATE BILL 122

54th legislature - STATE OF NEW MEXICO - first session, 2019

INTRODUCED BY

Pat Woods

AN ACT

RELATING TO CONSTRUCTION INDUSTRIES; LICENSING PRIVATE INSPECTION COMPANIES; ALLOWING COMPANIES TO PROVIDE PRIVATE INSPECTORS FOR GOVERNMENTS AND FOR CONTRACTORS AND HOMEOWNERS; REQUIRING THE EMPLOYMENT OF CERTIFIED BUILDING OFFICIALS; LIMITING EMPLOYMENT OF INSPECTORS; CLARIFYING PROVISIONS OF THE CONSTRUCTION INDUSTRIES LICENSING ACT; MAKING TECHNICAL AMENDMENTS.

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

SECTION 1. Section 60-13-1.1 NMSA 1978 (being Laws 1967, Chapter 199, Section 4, as amended) is amended to read:

"60-13-1.1. PURPOSE OF THE ACT.--The purpose of the Construction Industries Licensing Act is to promote the general welfare of the people of New Mexico by providing for the protection of life and property by adopting and enforcing codes and standards for construction, alteration, installation, connection, demolition and repair work. To effect this purpose, it is the intent of the legislature that:

A. examination, licensing and certification of the occupations and trades within the jurisdiction of the Construction Industries Licensing Act be such as to ensure or encourage the highest quality of performance and to require compliance with approved codes and standards and be, to the maximum extent possible, uniform in application, procedure and enforcement;

B. to provide more inspection resources for governments, the division shall license private inspection companies to perform inspection services for governments; perform inspections for licensed contractors and homeowners to enforce and improve building safety; ensure contractor compliance with laws, codes and standards; and provide for a more efficient and cost-effective construction process for governments, contractors and homeowners;

[B.] C. there be eliminated the wasteful and inefficient administrative practices of dual licensing, duplication of inspection, nonuniform classification and examination of closely related trades or occupational activities and jurisdictional conflicts; and

[C.] D. contractors and private inspection companies be required to furnish and maintain evidence of responsibility."

SECTION 2. Section 60-13-2 NMSA 1978 (being Laws 1967, Chapter 199, Section 2, as amended by Laws 2013, Chapter 142, Section 1 and by Laws 2013, Chapter 153, Section 1) is amended to read:

"60-13-2. GENERAL DEFINITIONS.--As used in the Construction Industries Licensing Act:

A. "division" means the construction industries division of the regulation and licensing department;

B. "trade bureau", "jurisdiction" and "trade bureau jurisdiction" mean the electrical bureau, the mechanical bureau, the general construction bureau or the liquefied petroleum gas bureau of the division;

C. "jurisdictional conflict" means a conflict between or among trade bureaus as to the exercise of jurisdiction over an occupation or trade for which a license is required under the provisions of the Construction Industries Licensing Act;

D. "person" includes an individual, firm, partnership, corporation, association or other organization, or any combination thereof;

E. "qualifying party" means [an individual] a person who submits to the examination for a [license] certificate of qualification to be issued under the Construction Industries Licensing Act and who is responsible for [the licensee's] a licensed contractor's compliance with the requirements of that act and with the rules, [regulations] codes and standards adopted and promulgated in accordance with that act;

F. "certificate of qualification" means a certificate issued by the division to a qualifying party;

G. "journeyman" means [an individual] a person who is properly certified by the electrical bureau or the mechanical bureau, as required by law, to engage in or work at the certified trade;

H. "apprentice" means [an individual] a person who is engaged, as [the individual's] that person's principal occupation, in learning and assisting in a trade;

I. "wages" means compensation paid to [an individual] a person by an employer from which taxes are required to be withheld by federal and state law;

J. "public use" means the use or occupancy of a structure, facility or manufactured commercial unit to which the general public, as distinguished from residents or employees, has access;

K. "bid" means a written or oral offer to contract;

L. "building" means a structure built for use or occupancy by persons or property, including manufactured commercial units and modular homes or premanufactured homes designed to be placed on permanent foundations whether mounted on skids or permanent foundations or whether constructed on or off the site of location;

M. "inspection agency" means a [firm, partnership, corporation, association or any combination thereof] person approved in accordance with [regulations] rules promulgated by the division as having the personnel and equipment available to adequately inspect for the proper construction of manufactured commercial units, modular homes or premanufactured homes;

N. "director" means the administrative head of the division;

O. "chief" means the administrative head of a trade bureau;

P. "commission" means the construction industries commission;

Q. "manufactured commercial unit" means a movable or portable housing structure over thirty-two feet in length or over eight feet in width that is constructed to be towed on its own chassis and designed so as to be installed without a permanent foundation for use as an office or other commercial purpose and that may include one or more components that can be retracted for towing purposes and subsequently expanded for additional capacity, or two or more units separately towable but designed to be joined into one integral unit, as well as a single unit, but that does not include any movable or portable housing structure over twelve feet in width and forty feet in length that is used for nonresidential purposes. "Manufactured commercial unit" does not include modular or premanufactured homes, built to a nationally recognized standard adopted by the commission and designed to be permanently affixed to real property;

R. "code" means a body or compilation of provisions or standards adopted by the commission that govern contracting or some aspect of contracting; that provide for safety and protection of life and health; and that are published by a nationally recognized standards association;

S. "inspector" means a person certified by the division and certified by one or more trade bureaus to conduct inspections of permitted work to ensure that all work performed by a contractor or the homeowner complies with the applicable code;

T. "statewide inspector's certificate" means a certificate that enables an inspector to conduct inspections in one or more trade bureau jurisdictions for [the state or any county, municipality or other political subdivision] a government or private inspection company that has a certified building official in its employ; [and]

U. "certified building official" means an employee of [any county, municipality or other political subdivision] a government or private inspection company who has a broad knowledge of the construction industry, holds a current nationally recognized code organization certified building official certificate and has:

(1) been a practicing inspector or practicing contractor for at least five years; or

(2) held a management position in a construction-related company or construction organization for at least five of the past ten years;

V. "private inspection company" means a private enterprise licensed by the division to apply for permits and conduct inspections of permitted work to ensure that all work performed by a contractor or homeowner complies with applicable codes and approved plans, including inspections of manufactured commercial units, modular homes or premanufactured homes, and that reports to the appropriate governmental jurisdiction; and

W. "government" means the state or a county, municipality or other political subdivision."

SECTION 3. Section 60-13-8 NMSA 1978 (being Laws 1967, Chapter 199, Section 12, as amended) is amended to read:

"60-13-8. DIVISION--EMPLOYEES--EQUIPMENT AND SUPPLIES.--

A. The division shall employ personnel, procure equipment and supplies and assemble records as necessary to carry out the provisions of the Construction Industries Licensing Act.

B. [Any] A person employed or placed under contract by the division or by [any county or municipality for the purpose of carrying] another government to carry out the provisions of the Construction Industries Licensing Act and who holds [any] a contractor's license or certificate of competence issued by the division shall, as a condition of employment or contract, surrender the contractor's license or certificate of competence to the division to be held in inactive status. The division shall place the license or certificate on hold effective from the date the employment or contract begins until the date the employment or contract terminates. The license or certificate shall remain in effect after the hold period for the same number of days as it would have remained in effect but for the hold.

C. Employees of the division shall not engage in any business activity that would be considered contracting pursuant to the Construction Industries Licensing Act."

SECTION 4. Section 60-13-9 NMSA 1978 (being Laws 1978, Chapter 73, Section 1, as amended by Laws 2013, Chapter 142, Section 2 and by Laws 2013, Chapter 153, Section 2) is amended to read:

"60-13-9. DIVISION--DUTIES.--The division shall:

A. approve and adopt examinations on codes and standards, business knowledge, division rules [and regulations] and [on] the Construction Industries Licensing Act recommended by the commission for all classifications of contractor's licenses;

B. issue, under the director's signature, contractor's licenses, [and] certificates of qualification and private inspection company licenses in accordance with the provisions of the Construction Industries Licensing Act;

C. submit a list of all contractor's licenses, statewide inspector's certificates, [and] certificates of qualification and private inspection company licenses issued by the division to the commission for review and approval;

D. resolve jurisdictional conflicts by assigning specific responsibility to the appropriate bureau for preparing examinations and for certifying and inspecting each occupation, trade or activity covered by the Construction Industries Licensing Act;

E. establish and collect fees authorized to be collected by the division pursuant to the Construction Industries Licensing Act;

F. adopt all building codes and minimum standards as recommended by the trade bureaus and approved by the commission so that the public welfare is protected, uniformity is promoted and conflicting provisions are avoided;

G. with approval of the superintendent of regulation and licensing, employ such personnel as the division deems necessary for the exclusive purpose of investigating violations of the Construction Industries Licensing Act, enforcing Sections 60-13-12 and 60-13-38 NMSA 1978 and instituting legal action in the name of the division to accomplish the provisions of Section 60-13-52 NMSA 1978;

H. approve, disapprove or revise the recommended budget of each trade bureau and submit the budgets of those bureaus, along with its own budget, to the regulation and licensing department;

I. approve, disapprove or revise and submit to the regulation and licensing department all requests of the trade bureaus for emergency budget transfers;

J. make an annual report to the superintendent of regulation and licensing and develop a policy manual concerning the operations of the division and the trade bureaus. The report shall also contain the division's recommendations for legislation it deems necessary to improve the licensing and technical practices of the construction and LP gas industries and to protect persons, property and agencies of the state and its political subdivisions;

K. adopt, subject to commission approval, rules [and regulations] necessary to carry out the provisions of the Construction Industries Licensing Act and the LPG and CNG Act;

L. maintain a complete record of all applications; all licenses issued, renewed, canceled, revoked and suspended; and all fines and penalties imposed by the division or commission and may make that information available to certified code jurisdictions;

M. furnish, upon payment of a reasonable fee established by the division, a certified copy of any license issued or of the record of the official revocation or suspension thereof. Such certified copy shall be prima facie evidence of the facts stated therein; and

N. publish a list of contractors, with their addresses and classifications, licensed by the division. The list shall be furnished without charge to such public officials, public bodies or public works and building departments as the division deems advisable. The list shall be published [annually and supplements shall be provided] at least quarterly on the division's website and updated more frequently as the division deems necessary. [Copies] A paper copy of the published list [and supplements] shall be furnished to any person upon request and payment of a reasonable fee established by the division."

SECTION 5. Section 60-13-11 NMSA 1978 (being Laws 1967, Chapter 199, Section 14, as amended) is amended to read:

"60-13-11. DIVISION OR COMMISSION--POWERS.--The division or the commission may:

A. sue and be sued, issue subpoenas and compel the attendance of witnesses and the production of documents, records and physical exhibits in any hearing;

B. administer oaths;

C. adopt and use a seal for authentication of its records, processes and proceedings;

D. compel minimum code compliance in all certified code jurisdictions and political subdivisions; and

E. investigate and prosecute code and license violations in any code jurisdictions in New Mexico."

SECTION 6. Section 60-13-32 NMSA 1978 (being Laws 1967, Chapter 199, Section 35, as amended) is amended to read:

"60-13-32. TRADE BUREAUS--DEFINITIONS.--As used in the Construction Industries Licensing Act:

A. "electrical wiring" means all wiring, conductors, fixtures, devices, conduits, appliances or other equipment, including generating equipment such as solar electricity generating equipment of not over ten kilowatt capacity, used in connection with the general distribution or use of electrical energy;

B. "plumbing" means the installing, altering and repairing of all plumbing fixtures, fixture traps and soil, waste, supply and vent pipes, with their devices, appurtenances and connections, through which water, waste, sewage, oil and air are carried, when done within the property lines of the building or structure to be served by the plumbing or to the point of connection with the utility system. This subsection shall not be construed as prohibiting the installation by a "fixed works" licensee of service lines from the utility system to a point five feet outside the building or structure to be served by the plumbing;

C. "fixtures" includes closet bowls, lavatories, bathtubs, showers, kitchen sinks, laundry trays, hot water tanks, softeners, urinals, bidets, service sinks, shower pans, drink fountains, water compressors, water coolers, septic tanks or similar systems of sewage disposal and such other similar fixtures used in plumbing as designated by the mechanical bureau;

D. "gas fitting" means the installing, altering and repairing of consumers' gas piping and the installation or safety-related repair of appliances [utilizing] using natural gas as fuel and their appurtenances in or upon premises of the consumers;

E. "softener" or "water conditioner" means any appliance, apparatus, fixture and equipment that is designed to soften, filter or change the mineral content of water, whether permanent or portable; and

F. "certificate of competence" means evidence of competence issued by the division to a journeyman electrician, journeyman plumber, journeyman gas fitter, journeyman pipe fitter or journeyman welder working on pipelines, collection lines or compressor stations."

SECTION 7. Section 60-13-41 NMSA 1978 (being Laws 1967, Chapter 199, Section 49, as amended by Laws 2013, Chapter 142, Section 4 and by Laws 2013, Chapter 153, Section 4) is amended to read:

"60-13-41. INSPECTORS--DESIGNATED INSPECTION AGENCIES-- PRIVATE INSPECTION COMPANIES.--

A. The division may employ state inspectors [shall be employed by the director] or may contract with a private inspection company to carry out state inspections.

B. Qualifications for inspectors shall be prescribed by the commission, and applicants shall submit to an appropriate background check as prescribed by the commission. Inspectors shall meet the minimum continuing education requirements as prescribed by the nationally recognized code organization for each trade bureau jurisdiction and provide proof of such credits to the division upon application for or renewal of certification.

C. The division shall certify and issue a statewide inspector's certificate to any person who meets the requirements established by the nationally recognized code organization for certification. The certificate shall list all trade bureaus for which the inspector is certified to inspect and shall be valid for a term of three years.

D. An inspector or statewide inspector shall be employed by a [county, municipality or other political subdivision] government or by a private inspection company in order to inspect work under permits issued in the trade bureau for which the inspector or statewide inspector is certified; provided that the [county, municipality or other political subdivision] government or private inspection company has a certified building official in its employ and the government has adopted the current minimum code standards as established by the commission. A government shall publish any codes in their entirety that it has adopted that are in excess of state codes.

E. Except as provided in Subsection F of this section, the state or its agent, which may be a private inspection company, shall conduct all inspections if [a county, municipality or other political subdivision] another government does not have a certified building official in its employ.

F. A [county, municipality or other political subdivision] government may enter into a memorandum of understanding to share a certified building official and inspectors operating under that certified building official with another [county, municipality or other political subdivision provided that the certified building official is employed in the same county, in an adjacent county, within one hundred miles of the county, municipality or other political subdivision or as approved by the division] government or may contract with a private inspection company for the services of a certified building official and inspectors. Memoranda of understanding and contracts pursuant to this subsection shall be listed on the division's website.

G. A person currently acting in the capacity of a certified building official may continue to act in that capacity and shall have five years from the effective date of this 2013 act to become a certified building official as prescribed by the Construction Industries Licensing Act.

H. When a certified building official leaves the employ of a [county, municipality or other political subdivision] government, the plan review, permitting and inspections overseen by that certified building official shall transfer to the state unless the [county, municipality or other political subdivision] government, within sixty days, or a longer period as approved by the division, replaces that certified building official or enters into a memorandum of understanding or contract pursuant to Subsection F of this section. When a certified building official leaves the employ of a private inspection company, the company has sixty days, or a longer period as approved by the division, to replace that certified building official.

[H.] I. The division may appoint inspection agencies or private inspection companies to inspect the construction, installation, alteration or repair of manufactured commercial units, modular homes and premanufactured homes, including those manufacturers whose business premises are without the state, to ensure that the New Mexico standards of construction and installation are adhered to and that the quality of construction meets all New Mexico codes and standards. If the inspection agency or private inspection company has no place of business within the state, it shall file a written statement with the secretary of state setting forth its name and business address and designating the secretary of state as its agent for the service of process.

[I.] J. The division shall, with the approval of the commission, establish qualifications for inspectors and statewide inspectors certified to inspect in more than one bureau's jurisdiction.

[J.] K. The director shall assign an investigator to investigate the merits of every complaint brought against an inspector, inspection agency or private inspection company and report to the commission within ten days."

SECTION 8. Section 60-13-42 NMSA 1978 (being Laws 1967, Chapter 199, Section 50, as amended) is amended to read:

"60-13-42. AUTHORITY OF INSPECTORS--LIMITATION.--

A. A state-certified inspector, including state-certified inspectors employed by a private inspection company, may, during reasonable hours, enter any building or go upon any premises in the discharge of the inspector's official duties [for the purpose of making] to make an inspection of work performed or [for the purpose of testing] to test any installation authorized within the jurisdiction of the inspector's trade certification. The inspector may cut or disconnect, or have cut or disconnected in cases of emergency, an installation or device when necessary for safety to life or property or where the installation may interfere with the work of a fire department. Public utilities, rural electric cooperatives and utility departments of counties or municipalities shall cooperate with the requests of inspectors.

B. The inspector may disconnect or order the discontinuance of service to any installation, device, appliance or equipment found to be dangerous to life or property because it is defective or is incorrectly installed, until the installation, device, appliance or equipment is made safe and is approved by the inspector.

C. The inspector may order the correction of any defects or any incorrect installation that prompted the disconnection and discontinuance of service.

D. In all cases where disconnection is made, a notice shall be attached by the inspector to the installation, device, appliance or equipment disconnected, which notice shall state that the same has been disconnected by or on order of the inspector and the reason for the disconnection. It is unlawful for a person to remove the notice or to use the installation, device, appliance or equipment without authorization of an inspector.

E. The division shall by [regulation] rule adopt official inspection stickers or medallions [for the purpose of identifying] to identify those modular homes and premanufactured homes that have been inspected and found to comply with all requirements of the state codes and standards. State inspection and acceptance for use of modular homes and premanufactured homes shall exclusively apply to the use and occupancy of such dwellings in the state and in any of its political subdivisions, subject to the requirements of local planning and zoning ordinances and ordinances requiring permits and inspections for foundations, electrical and mechanical hookups or other safety or sanitary requirements.

F. Certified building officials and inspectors employed by governments shall not be employed by private inspection companies."

SECTION 9. Section 60-13-44 NMSA 1978 (being Laws 1967, Chapter 199, Section 52, as amended) is amended to read:

"60-13-44. TRADE BUREAUS--STANDARDS--CONFLICTS.--

A. The electrical bureau shall recommend to the commission minimum standards for the installation or use of electrical wiring. The recommendations shall substantially embody the applicable provisions of an electrical code for safety to life and property promulgated by a nationally recognized association and developed through an open, balanced consensus process.

B. The mechanical bureau shall recommend to the commission minimum standards for the installation of all fixtures, consumers' gas pipe, appliances and materials installed in the course of a mechanical installation. The recommendations shall be in substantial conformity with codes and standards that are developed through an open, balanced consensus process. Manufacturers may choose the independent certification organization they wish to certify their products if the certification organization is accredited by the American national standards institute or other accreditation organization selected by the commission.

C. The general construction bureau shall recommend to the commission minimum standards for the construction, alteration or repair of buildings, except for those activities within the jurisdiction of the electrical bureau or the mechanical bureau. The recommendations shall substantially embody the applicable provisions of a nationally recognized building code that is developed through an open, balanced consensus process and shall give due regard to physical, climatic and other conditions peculiar to New Mexico. The standards shall include the authority to permit or deny occupancy of existing and new buildings or structures and authority to accept or deny the use of materials manufactured within or without the state. The general construction bureau may set minimum fees or charges for conducting tests to verify claims or specifications of manufacturers.

D. The general construction bureau shall recommend to the commission additional specifications for any public building constructed in the state through expenditure of state, county or municipal funds, bonds and other revenues, which specifications shall embody standards making the building accessible to persons who have a physical disability, and the specifications shall conform substantially with those contained in a nationally recognized standard for making public facilities accessible to persons with a physical disability that is developed through an open, balanced consensus process. All orders and rules recommended by the general construction bureau and adopted by the commission under the provisions of this section shall be printed and distributed to all licensed contractors, architects and engineers and to the governor's commission on disability. The orders and rules shall take effect on a date fixed by the commission, which shall not be less than thirty days after their adoption by the commission, and shall have the force of law.

E. The general construction bureau shall have the right of review of all specifications of public buildings and the responsibility to ensure compliance with the adopted standards; provided that a county, municipality or other political subdivision that employs an inspector or private inspection company shall have exclusive enforcement over compliance with the adopted standards for public buildings located within its jurisdiction.

F. [All political subdivisions of the state] Governments and private inspection companies are subject to the provisions of codes adopted and approved under the Construction Industries Licensing Act. Such codes constitute a minimum requirement for the codes of political subdivisions. If a government adopts codes with minimum requirements in excess of state codes, it shall publish those codes in their entirety.

G. The trade bureaus within their respective jurisdictions shall recommend to the commission standards that are developed through an open, balanced consensus process for the installation or use of electrical wiring, the installation of all fixtures, consumers' gas pipe, appliances and materials installed in the course of mechanical installation and the construction, alteration or repair of all buildings intended for use by persons with a physical disability or persons requiring special facilities to accommodate the aged. The recommendations shall give due regard to physical, climatic and other conditions peculiar to New Mexico.

H. The trade bureaus within their respective jurisdictions shall recommend to the commission standards for the construction, alteration, repair, use or occupancy of manufactured commercial units, modular homes and premanufactured homes. The recommendations shall substantially embody the applicable provisions or standards for the safety to life, health, welfare and property approved by the nationally recognized standards association and developed through an open, balanced consensus process and shall give due regard to physical, climatic and other conditions peculiar to New Mexico. Wherever existing state codes or standards conflict with the codes and standards adopted by the commission under the provisions of this subsection, the provisions of the applicable New Mexico building codes adopted pursuant to the Construction Industries Licensing Act and the LPG and CNG Act in effect at the applicable time shall exclusively apply and control, except for codes and standards for mobile housing units.

I. Modular homes and premanufactured homes in existence at the time of the effective date of the Construction Industries Licensing Act shall have their use or occupancy continued if such use or occupancy was legal on the effective date of that act, provided such continued use or occupancy is not dangerous to life. Any change in the use or occupancy or any major alteration or repair of a modular home or premanufactured home shall comply with all codes and standards adopted under the Construction Industries Licensing Act.

J. The commission shall review all recommendations made under the provisions of this section and shall by rule adopt standards and codes that substantially comply with the requirements of this section that apply to the recommendations of the trade bureaus."

SECTION 10. Section 60-13-45 NMSA 1978 (being Laws 1967, Chapter 199, Section 53, as amended) is amended to read:

"60-13-45. TRADE BUREAUS--PRIVATE INSPECTION COMPANIES-- PERMITS.--

A. The trade bureaus within their respective trade jurisdictions may require a permit to be secured and conspicuously posted prior to any construction, installation, alteration, repair or addition to or within any building, structure or premises.

B. No permit shall be required for the performance of any of the following classes of work:

(1) minor repairs, replacement of lamps, the connection of portable electrical equipment to suitable receptacles [which] that are permanently installed, minor repairs or replacement of or to faucets, taps or jets or connection of portable equipment to suitable connections or inlets [which] that have been permanently installed;

(2) installation of temporary wiring for testing electrical equipment or apparatus or installation of temporary fixtures or devices for testing fixtures, equipment, apparatus or appliances;

(3) installation, alteration or repair of electrical equipment for the operation of signals or the transmission of intelligence by wire; [and] or

(4) installation or work [which] that is done after regular business hours or during a holiday when immediate action is imperative to safeguard life, health or property, provided the person making the installation or performing the work applies for a permit covering the installation or work not later than the next business day.

C. If a permit has been issued for construction of a new residential building, that residential building shall not be occupied until a certificate of occupancy has been issued certifying compliance with all codes and standards.

D. The commission shall make rules [and regulations] pertaining to the issuance of permits and the setting of reasonable fees to be paid by the applicant for a permit. The [regulations] rules shall provide a procedure for the issuance of permits outside the corporate limits of a municipality where inspection is made by a state inspector or a municipal inspector serving as a part-time state inspector or an inspector in the employ of a private inspection company and for inspections within a municipality where the inspection is done [exclusively] by a full-time state inspector or an inspector in the employ of a private inspection company. Each trade bureau by [regulation] rule may require a reasonable bond or surety in the penal sum of five hundred dollars ($500) or more, but not to exceed [fifteen hundred dollars] one thousand five hundred dollars ($1,500), with such bureau named as obligee and conditioned for the payment of inspection fees provided in the Construction Industries Licensing Act. Nothing in this section shall preclude municipalities from making inspections in accordance with the Construction Industries Licensing Act or rules [and regulations] pursuant to that act or from establishing a schedule of fees to be paid by an applicant for a permit.

E. In the event that the division assumes inspections of a municipal or county jurisdiction, the permit fees shall be paid directly to the division.

F. Pursuant to a contract with a government, a private inspection company may:

(1) inspect the work for which a permit was issued;

(2) use the same forms and request methods as used by the government; and

(3) remit fees collected to the government in accordance with the conditions of the contract. A private inspection company may charge and keep fees in addition to the government fees for performing inspections.

G. Pursuant to a contract with a contractor licensed to perform the type of work to be undertaken by the contractor, a private inspection company may:

(1) request a permit upon affidavit authorized electronically or signed by the qualifying party and payment of all initial inspection fees and service charges; and

(2) inspect the work of the contractor pursuant to the permit.

H. Upon completion of all required inspections, the private inspection company shall prepare a certificate of compliance, on a form acceptable to the government, summarizing the inspections performed, including a written representation, under oath as applicable, that the stated inspections have been performed and that to the best of the private inspection company's knowledge and belief, the permit-required work inspected complies with approved plans and applicable codes, and a declaration that any additional inspection fees and service charges have been paid.

I. A contractor or homeowner who begins the inspection process under a permit with the government or with a private inspection company shall continue with the same inspection provider until the final inspection has been completed. To change the inspection provider once a permit is issued requires the permission of the division."

SECTION 11. A new section of the Construction Industries Licensing Act is enacted to read:

"[NEW MATERIAL] PRIVATE INSPECTION COMPANY--LICENSING.--

A. A license shall not be issued by the division to a private inspection company unless the director is satisfied that the applicant is or has employed a certified building official and the applicant has satisfied the requirements of Subsection B of this section.

B. An applicant for a private inspection company license shall:

(1) demonstrate proof of responsibility as provided in the Construction Industries Licensing Act;

(2) demonstrate familiarity with the rules promulgated by the commission and division and that the applicant has employed statewide inspectors and inspectors who are familiar with the rules promulgated by the commission and division;

(3) include in the application the certificate of the applicant's certified building official;

(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 tax

identification number;

(7) comply with any additional procedures and rules that 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 inspection services or its equivalent; provided that the commission may waive 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 may by rule provide for license fees that are no higher than those charged to general contractors.

D. A certified building official shall not work for more than one private inspection company at the same time unless the companies have at least thirty percent common ownership."

SECTION 12. Section 60-13-49 NMSA 1978 (being Laws 1967, Chapter 199, Section 57, as amended) is amended to read:

"60-13-49. PROOF OF RESPONSIBILITY.--

A. [No] An applicant for a contractor's license or for renewal of a contractor's license shall not be issued a license until the director determines that the applicant furnishes proof of responsibility pursuant to Subsection B of this section.

B. Proof of responsibility shall be a bond of ten thousand dollars ($10,000) acceptable to the director and underwritten by a corporate surety authorized to transact business in New Mexico. Such bond shall meet the following conditions:

(1) payments from a bond required pursuant to this section shall only be used to cure code violations caused by a licensee, certified by the division and not corrected by the licensee. Claims against the bond shall be made within two years following final inspection by the governmental entity having jurisdiction over code enforcement or within two years of issuance of a certificate of occupancy for the construction project, whichever is earlier;

(2) the total aggregate liability of the surety for all claims shall be limited to the face amount of the bond;

(3) the bond carrier shall provide to the division and to the licensee thirty days' prior written notice of intent to cancel a bond required pursuant to this section. The surety for such a bond shall remain liable under the provisions of the bond for all obligations of the principal pertaining to bond terms that occur before the bond is canceled, expires or otherwise becomes ineffective;

(4) failure to maintain the bond for the period required by law is cause for revocation of the license; and

(5) if the bond is canceled, expires or otherwise becomes ineffective during the period of a license, the division shall notify the licensee that a new bond is required. If the licensee has not provided proof of a new bond before the fortieth day after the date on which the bond was canceled, expired or otherwise became ineffective, the license shall be subject to revocation for failure of proof of responsibility.

C. Proof of responsibility for private inspection company licensees shall be established by rule of the commission."

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