45th legislature - STATE OF NEW MEXICO - first session, 2001

RELATING TO CONSTRUCTION; EXPANDING THE DUTIES OF THE CONSTRUCTION INDUSTRIES DIVISION OF THE REGULATION AND LICENSING DEPARTMENT; MAKING THE CONSTRUCTION INDUSTRIES COMMISSION ADVISORY; CHANGING DEFINITIONS; CHANGING PERMIT REQUIREMENTS; ALLOWING PERSONS TO BID TO PERFORM CONTRACTING WORK BEFORE THEY ARE LICENSED; ELIMINATING THE RECERTIFICATION INCENTIVE PLAN FOR STATE INSPECTORS; CHANGING FEES; AMENDING SECTIONS OF THE NMSA 1978.

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

Section 1. Section 3-18-7 NMSA 1978 (being Laws 1975, Chapter 14, Section 1) is amended to read:

"3-18-7. ADDITIONAL COUNTY AND MUNICIPAL POWERS--FLOOD AND MUDSLIDE HAZARD AREAS--BUILDING PERMITS--LAND USE CONTROL--JURISDICTION--AGREEMENT.--

A. For the purpose of minimizing or eliminating damage from floods or mudslides in designated flood-prone areas and for the purpose of promoting health, safety and the general welfare, a county or municipality may by ordinance:

(1) designate and regulate flood plain areas having special flood or mudslide hazards;

(2) prescribe standards for constructing, altering, installing or repairing buildings and other improvements under a permit system within a designated flood or mudslide hazard area;

(3) review subdivision proposals and other new developments within a designated flood or mudslide hazard area to assure that:

(a) all such proposals are consistent with the need to minimize flood damage;

(b) all public utilities and facilities such as sewer, gas, electrical and water systems are designed to minimize or eliminate flood damage; and

(c) adequate drainage is provided so as to reduce exposure to flood hazards;

(4) require new or replacement water supply systems or sanitary sewage systems within a designated flood or mudslide hazard area to be designed to minimize or eliminate infiltration of flood waters into the systems and discharges from the systems into flood waters and require on-site waste disposal systems to be located so as to avoid impairment of them or contamination from them during flooding; and

(5) designate and regulate floodways for the passage of flood waters.

B. Any ordinance adopted pursuant to this section shall substantially conform to the minimum standards prescribed by the federal insurance administration, regulation 1910 issued pursuant to Subsection 7(d), 79 Stat. 670, Section 1361, 82 Stat. 587 and 82 Stat. 575, all as amended.

C. A county or municipality shall have exclusive jurisdiction over permits issued under its respective ordinance and in accordance with this section and so long as it is enforced by an approved inspector pursuant to the Construction Industries Licensing Act. Notwithstanding Section [14-17-5 NMSA 1953] 3-18-6 NMSA 1978, when a municipality adopts an ordinance pursuant to Paragraph (2) of Subsection A of this section, the municipality's jurisdiction under this ordinance shall take precedence over a respective county ordinance within the municipality's boundary and within the municipality's subdividing and platting jurisdiction.

D. A county or municipality shall designate flood plain areas having special flood or mudslide hazards in substantial conformity with areas identified as flood- or mudslide-prone by the federal insurance administration pursuant to the national flood insurance program.

E. A municipality or county adopting any ordinance pursuant to this section may enter into reciprocal agreements with any agency of the state, other political subdivisions or the federal government in order to effectively carry out the provisions of this section.

F. Within their respective jurisdiction, the [environmental improvement agency division of] department of environment or the construction industries [commission] division of the regulation and licensing department may assist counties or municipalities when requested by a county or municipality to provide technical advice and assistance."

Section 2. Section 9-16-12 NMSA 1978 (being Laws 1983, Chapter 297, Section 28, as amended) is amended to read:

"9-16-12. CONSTRUCTION INDUSTRIES ADVISORY COMMISSION--EXERCISE OF POWERS AND DUTIES EXEMPT FROM AUTHORITY OF SUPERINTENDENT.--All responsibilities of the construction industries advisory commission under [Sections] Section 60-13-6 [60-13-9 through 60-13-11, 60-13-13.2, 60-13-14 through 60-13-16, 60-13-18, 60-13-23 through 60-13-24, 60-13-27, 60-13-28, 60-13-36, 60-13-38, 60-13-41, 60-13-43, 60-13-44, 60-13-45, 60-13-49, 60-13-53, 60-13-55, 60-13-57, 61-1-1 through 61-1-33, 70-5-3 through 70-5-7, 70-5-11 through 70-5-15 and 70-5-18] NMSA 1978 are hereby explicitly exempted from the authority of the superintendent under the provisions of Subsection B of Section 9-16-6 NMSA 1978."

Section 3. Section 60-13-2 NMSA 1978 (being Laws 1967, Chapter 199, Section 2, as amended) 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" means the electrical bureau, the mechanical bureau, the general construction bureau or the liquefied petroleum gas bureau of the division;

C. "jurisdictional conflict" means [any] 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 [any] an individual who submits to the examination for a license to be issued under the Construction Industries Licensing Act and who is responsible for the licensee'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 [any] an individual who is properly certified by the electrical bureau or the mechanical bureau, as required by law, to engage in or work at his trade;

H. "apprentice" means an individual who is engaged, as his principal occupation, in learning and assisting in a trade;

I. "wages" means compensation paid to an individual 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 [any] 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 [any] a structure built for use or occupancy by persons or property, including but not limited to 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 approved in accordance with regulations 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 advisory commission;

Q. "manufactured commercial unit" means a movable or portable housing structure over thirty-two feet in length or over eight feet in width [which] 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 [which] 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 which does not include [any] a movable or portable housing structure over twelve feet in width and forty feet in length [which] that is used for nonresidential purposes. "Manufactured commercial unit" does not include modular or premanufactured homes, built to Uniform Building Code standards, designed to be permanently affixed to real property; and

R. "code" means a body or compilation of provisions or standards [which] that govern contracting or some aspect of contracting; [which] that provide for safety and protection of life and health; [which] that are [approved] published by a nationally recognized standards association; and which standards are in general use in the United States or in a clearly defined region of the United States. The term "code" [includes the Uniform Building Code, the National Electrical Code, the Uniform Plumbing and Mechanical Code, the LP Gas Code and any other codes] means a code standard adopted by the [commission] division."

Section 4. Section 60-13-3 NMSA 1978 (being Laws 1978, Chapter 66, Section 1, as amended) is amended to read:

"60-13-3. DEFINITION--CONTRACTOR.--As used in the Construction Industries Licensing Act, "contractor":

A. means [any] a person who undertakes, [offers to undertake by bid or other means or purports to have the capacity to undertake] by himself or through others, contracting. Contracting includes constructing, altering, repairing, installing or demolishing [any] a:

(1) road, highway, bridge, parking area or related project;

(2) building, stadium or other structure;

(3) airport, subway or similar facility;

(4) park, trail, bridle path, athletic field, golf course or similar facility;

(5) dam, reservoir, canal, ditch or similar facility;

(6) sewerage or water treatment facility, power generating plant, pump station, natural gas compressing station or similar facility;

(7) sewerage, water, gas or other pipeline;

(8) transmission line;

(9) radio, television or other tower;

(10) water, oil or other storage tank;

(11) shaft, tunnel or mining appurtenance;

(12) leveling or clearing land;

(13) excavating earth;

(14) air conditioning, conduit, heating or other similar mechanical works;

(15) electrical wiring, plumbing or plumbing fixture, consumers' gas piping, gas appliances or water conditioners; or

(16) similar work, structures or installations [which] that are covered by applicable codes adopted [under] pursuant to the provisions of the Construction Industries Licensing Act;

B. includes subcontractor and specialty contractor;

C. includes a construction manager who coordinates and manages the building process; who is a member of the construction team with the owner, architect, engineer and other consultants required for the building project; and who utilizes his skill and knowledge of general contracting to develop schedules, prepare project construction estimates, study labor conditions and advise concerning construction; and

D. does not include:

(1) [any] a person who merely furnishes materials or supplies at the site without fabricating them into, or consuming them in the performance of, the work of a contractor;

(2) [any] a person who drills, completes, tests, abandons or operates [any] a petroleum, gas or water well; or services equipment and structures used in the production and handling of any product incident to the production of [any] petroleum, gas or water wells, excluding any person performing duties normally performed by electrical, mechanical or general contractors; or who performs geophysical or similar exploration for oil, gas or water;

(3) a public utility or rural electric cooperative that constructs, reconstructs, operates or maintains its plant or renders authorized service by the installation, alteration or repair of facilities, up to and including the meters, which facilities are an integral part of the operational system of the public utility or rural electric cooperative; provided that the construction of a building by a public utility or rural electric cooperative or the installation or repair of any consumer gas or electrical appliance not an integral part of the operational system makes a public utility or rural electric cooperative a contractor for that purpose;

(4) a utility department of [any] a municipality or local public body rendering authorized service by the installation, alteration or repair of facilities, up to and including the meters, which facilities are an integral part of the operational system of the utility department of the municipality;

(5) [any] a railroad company;

(6) a telephone or telegraph company or rural electric cooperative that installs, alters or repairs electrical equipment and devices for the operation of signals or the transmission of intelligence where that work is an integral part of the operation of a communication system owned and operated by a telephone or telegraph company or rural electric cooperative in rendering authorized service;

(7) a pipeline company that installs, alters or repairs electrical equipment and devices for the operation of signals or the transmission of intelligence where that service is an integral part of the operation of the communication system of that pipeline company and is not for hire or for the use of the general public, or [any] a pipeline company [which] that installs, alters or repairs plumbing fixtures or gas piping where the work is an integral part of installing and operating the system owned or operated by the pipeline company in rendering its authorized service;

(8) [any] a mining company, gas company or oil company that installs, alters or repairs its facilities, including plumbing fixtures or gas piping, where the work is an integral part of the installing or operating of a system owned or operated by the mining company, gas company or oil company; provided the construction of a building by a mining company, a gas company or an oil company is required to be done in conformity with all other provisions of the Construction Industries Licensing Act and with orders, rules, [regulations] standards and codes adopted pursuant to that act;

(9) a radio or television broadcaster who installs, alters or repairs electrical equipment used for radio or television broadcasting;

(10) an individual who, by himself or with the aid of others who are paid wages and who receive no other form of compensation, builds or makes installations, alterations or repairs in or to a single-family dwelling owned and occupied or to be occupied by him; provided that the installation, building, alteration or repair is required to be done in conformity with all other provisions of the Construction Industries Licensing Act and with the orders, rules, [regulations] standards and codes adopted pursuant to that act;

(11) a person who acts on his own account to build or improve a single-family residence for his personal use, including the building or improvement of a free-standing storage building located on that residential property; provided that the construction or improvement is required to be done in conformity with all other provisions of the Construction Industries Licensing Act and with the orders, rules, [regulations] standards and codes adopted pursuant to that act; and provided further that he does not engage in commercial construction;

(12) a person who, by himself or with the aid of others who are paid wages and receive no other form of compensation, builds or makes installations, repairs or alterations in or to a building or other improvement on a farm or ranch owned, occupied or operated by him, or makes installations of electrical wiring [that are not to be connected to electrical energy supplied from a power source outside the premises of the farm or ranch owned, occupied or operated by him; provided that the state codes and any local codes adopted pursuant to Subsection F of Section 60-13-44 NMSA 1978 shall not require any permits or inspections for such construction on a farm or ranch except for electrical wiring to be connected to a power source outside the premises];

(13) an individual who works only for wages;

(14) an individual who works on one undertaking or project at a time that, in the aggregate or singly, does not exceed seven thousand two hundred dollars ($7,200) compensation a year, the work being casual, minor or inconsequential, such as handyman repairs; provided that this exemption shall not apply to any undertaking or project pertaining to the installation, connection or repair of electrical wiring, plumbing or gas fitting as defined in Section 60-13-32 NMSA 1978 and provided:

(a) the work is not part of a larger or major operation undertaken by the same individual or different contractor;

(b) the individual does not advertise or maintain a sign, card or other device [which] that would indicate to the public that he is qualified to engage in the business of contracting; and

(c) the individual files annually with the division, on a form prescribed by the division, a declaration substantially to the effect that he is not a contractor within the meaning of the Construction Industries Licensing Act, that the work he performs is casual, minor or inconsequential and will not include more than one undertaking or project at one time and that the total amount of such contracts, in the aggregate or singly, will not exceed seven thousand two hundred dollars ($7,200) compensation a year;

(15) [any] a person, firm or corporation that installs fuel containers, appliances, furnaces and other appurtenant apparatus as an incident to its primary business of distributing liquefied petroleum fuel;

(16) a cable television or community antenna television company that constructs, installs, alters or repairs facilities, equipment, cables or lines for the provision of television service or the carriage and transmission of television or radio broadcast signals;

(17) [any] a weatherization project not exceeding two thousand dollars ($2,000) that has been approved and is administered by a federal or state agency; [or]

(18) a person who performs work consisting of short-term depreciable improvements to commercial property to provide needed repairs and maintenance [for items not covered by building codes adopted by the construction industry commission], such as painting, carpeting, flooring, weather-proofing, insulating and structural patching and the construction, repair and maintenance of nonstructural porches or awnings and similar items if the total amount paid the person for the work on a single undertaking, including materials, services and wages of those who work for him, does not exceed the sum of five thousand dollars ($5,000); or

(19) a person who offers to undertake contracting by bid."

Section 5. Section 60-13-6 NMSA 1978 (being Laws 1977, Chapter 245, Section 168, as amended) is amended to read:

"60-13-6. CONSTRUCTION INDUSTRIES ADVISORY COMMISSION CREATED--MEMBERSHIP--DUTIES.--

A. There is created within the division the "construction industries advisory commission". The commission shall be composed of nine voting members who shall serve at the pleasure of the governor. Members shall be appointed by the governor, with the advice and consent of the senate as follows:

(1) one member who is a representative of the residential construction industry of this state;

(2) one member who is a licensed electrical contractor;

(3) one member who is a licensed mechanical contractor;

(4) one member who is a licensed and practicing architect;

(5) one member who is a practicing general contractor;

(6) one member who is a representative of the liquefied petroleum gas industry;

(7) one resident of the state who is not a licensed contractor or certified journeyman who shall represent the people of New Mexico;

(8) one member who is a representative of the subcontracting industry of the state; and

(9) one member who is a representative of organized labor.

Members shall be appointed to provide adequate representation of all geographic areas of the state.

B. Each member of the commission shall receive per diem and mileage as provided in the Per Diem and Mileage Act and shall receive no other compensation, perquisite or allowance.

C. The commission shall annually elect a chairman and vice chairman from its membership. The director shall serve as the executive secretary of the commission.

D. The commission shall meet bimonthly or at the call of the chairman.

E. The commission shall [establish] recommend policy for the division. It shall [advise] make recommendations on [review, coordinate and approve or disapprove all] rules, regulations, standards, codes and licensing requirements [which] that are subject to the approval of the [commission] division under the provisions of the Construction Industries Licensing Act or the LPG and CNG Act [so as to insure that uniform codes and standards are promulgated and conflicting provisions are avoided. The commission shall:

(1) revoke or suspend, for cause, any license or certificate of qualification issued under the provisions of the Construction Industries Licensing Act or the LPG Act; and

(2) define and establish all license classifications. The licensee shall be limited in his bidding and contracting as provided in Subsection B of Section

60-13-12 NMSA 1978. Any licensee, subsequent to the issuance of a license, may make application for additional classification and be licensed in more than one classification if he meets the prescribed qualification for the additional classification]."

Section 6. Section 60-13-9 NMSA 1978 (being Laws 1978, Chapter 73, Section 1, as amended) is amended to read:

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

A. approve and adopt examinations on codes and standards, business knowledge and 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 in accordance with the provisions of the Construction Industries Licensing Act;

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

C. revoke or suspend for cause any license or certificate of qualification issued under the provisions of the Construction Industries Licensing Act or the LPG and CNG Act;

D. define and establish all license classifications. The licensee shall be limited in his bidding and contracting as provided in Section 60-13-12 NMSA 1978. Any licensee, subsequent to the issuance of a license, may make application for additional classification and be licensed in more than one classification if he meets the prescribed qualification for the additional classification;

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

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

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

[J.] K. 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.] L. 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.] M. 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.] N. 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.] O. 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 as the division deems necessary. Copies of the list and supplements shall be furnished to any person upon request and payment of a reasonable fee established by the division."

Section 7. Section 60-13-10 NMSA 1978 (being Laws 1975, Chapter 14, Section 3, as amended) is amended to read:

"60-13-10. ADDITIONAL DIVISION DUTIES--FLOOD OR MUDSLIDE AREAS--STANDARDS.--In addition to the division's other duties, on or before January 1, 1976 the division shall [with the approval of the commission] issue regulations prescribing standards for the installation or use of electrical wiring, the installation of fixtures, plumbing, consumers' gas pipe and appliances and materials installed in the course of mechanical installation and the construction, alteration or repair of all buildings, improvements, modular homes, premanufactured homes and manufactured commercial units intended for use in flood or mudslide areas designated pursuant to Section 3-18-7 NMSA 1978. Such regulations shall give due regard to standards prescribed by the federal insurance administration pursuant to Regulation 1910, Subsection 7(d), 79 Stat. 670, Section 1361, 82 Stat. 587 and 82 Stat. 575, all as amended, and shall give due regard to physical, climatic and other conditions peculiar to New Mexico."

Section 8. Section 60-13-10.1 NMSA 1978 (being Laws 1981, Chapter 245, Section 1, as amended) is amended to read:

"60-13-10.1. DIVISION--ADDITIONAL DUTIES--ALCOHOL FUEL PLANT CONSTRUCTION CODE--RULES AND REGULATIONS.--

A. In addition to the division's other duties, on or before January 1, 1982 it shall, [with the approval of the commission and] after public hearing, adopt an alcohol fuel plant construction code. The code shall set forth reasonable standards and requirements for the construction, alteration or repair of buildings and other structures to be used for the manufacture or distillation of alcohol fuel. In adopting the code, the division shall give due regard to the purpose for which the plant is to be used and to the physical, climatic and other conditions peculiar to New Mexico.

B. Upon the adoption of the code, the [commission] division shall make rules [and regulations] pertaining to the issuance of a permit prior to any construction, installation, alteration, repair or addition to or within any building or structure proposed for the use of manufacturing or distillation of alcohol fuel. The [commission] division shall also set a reasonable fee for the issuance of a permit.

C. No permit shall be required of any person who, by himself or with the aid of others who are paid wages and receive no other form of compensation, builds or makes installation, repairs or alterations on a farm or ranch owned, occupied or operated by him to any building or structure for the use of manufacturing or distillation of alcohol fuel."

Section 9. 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 code violations in any code jurisdictions in New Mexico."

Section 10. Section 60-13-12 NMSA 1978 (being Laws 1967, Chapter 199, Section 15, as amended) is amended to read:

"60-13-12. CONTRACTOR'S LICENSE REQUIRED.--

A. No person shall act as a contractor without a license issued by the division classified to cover the type of work to be undertaken.

B. [No bid on a contract shall be submitted unless the contractor has a valid license issued by the division to bid and perform the type of work to be undertaken; provided this subsection shall not prohibit] A licensed contractor [from bidding or contracting] may bid or contract for work involving the use of two or more trades, crafts or classifications if the performance of the work in the trades, crafts or classifications other than the one in which he is licensed or in which he becomes licensed before commencing to perform the work bid is incidental or supplemental to the performance of the work in the trades, crafts or classifications for which he is licensed or becomes licensed before commencing to perform the work bid; and further provided that work coming under the jurisdiction of the mechanical bureau or the electrical bureau of the division [must] shall be performed by a contractor licensed to perform that work.

[C. Any contractor may bid on a New Mexico highway project involving the expenditure of federal funds prior to making application to the division for a license. The contractor, if he has not previously been issued a license, shall upon becoming the apparent successful bidder apply to the division for a license. The director shall issue a license to the contractor in accordance with the provisions of the Construction Industries Licensing Act]."

Section 11. Section 60-13-13 NMSA 1978 (being Laws 1967, Chapter 199, Section 16, as amended) is amended to read:

"60-13-13. APPLICATION FOR CONTRACTOR'S LICENSE.--

A. Applications for a contractor's license or a certificate of qualification shall be submitted to the division on forms prescribed and furnished by the division and shall contain the information and be accompanied by the attachments required by [regulation] rule of the [commission] division.

B. The application shall be accompanied by the prescribed fee."

Section 12. Section 60-13-13.2 NMSA 1978 (being Laws 1983, Chapter 105, Section 6, as amended) is amended to read:

"60-13-13.2. LICENSEES--IDENTICAL OR SIMILAR NAMES.--The division shall not accept an application, shall not issue a license and shall require a change in the name of a proposed license if the proposed name is identical to or in the opinion of the director so similar that it may cause confusion with a name on a pending application or an existing license. Any person aggrieved by the decision of the director may appeal the decision to the [commission] superintendent of regulation and licensing."

Section 13. Section 60-13-14 NMSA 1978 (being Laws 1967, Chapter 199, Section 17, as amended) is amended to read:

"60-13-14. DIVISION--LICENSE ISSUANCE--REPORTS.--

A. No license shall be issued by the division to any applicant unless the director is satisfied that the applicant is or has in his employ a qualifying party who is qualified for the classification for which application is made and the applicant has satisfied the requirements of Subsection B of this section.

B. An applicant for a license shall:

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

(2) comply with the provisions of Subsection D of this section if he has engaged illegally in the contracting business in New Mexico within one year prior to making application;

(3) demonstrate familiarity with the rules [and regulations] promulgated by the [commission and] division concerning the classification for which application is made;

(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

identification tax number;

(7) comply with any additional procedures and rules [and regulations which] that are established by the [commission] division 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 its equivalent for which the applicant is applying for a license, except that the [commission] division may by [regulation] rule provide for:

(a) reducing this requirement for a particular industry or craft where it is deemed excessive, but the requirement shall not be less than two years; and

(b) a waiver of 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 [with the consent of the commission] may enter into a reciprocal licensing agreement with any state having equivalent licensing requirements.

D. The director may issue a license to an applicant who at any time within one year prior to making application has acted as a contractor in New Mexico without a license as required by the Construction Industries Licensing Act if:

(1) the applicant in addition to all other requirements for licensure pays an additional fee [as follows: (a)] in an amount up to ten percent of the contract price or the value of the nonlicensed contracted work in the discretion of the [commission; or

(b) if the applicant has bid or offered a price on a construction project and was not the successful bidder or offeror, the fee shall be at least one percent but not more than five percent of the total bid amount] division; and

(2) the director is satisfied that no incident of such contracting without a license:

(a) caused monetary damage to any person; or

(b) resulted in an unresolved consumer

complaint being filed against the applicant with the division.

E. An unlicensed contractor who has performed unlicensed work may settle the claims against him without becoming licensed if the claims arise from his first offense and he pays an administrative fee calculated pursuant to Paragraph (1) of Subsection D of this section. In addition to the administrative fee, an additional ten percent of the amount of the administrative fee shall be assessed as a service fee.

F. If the total fee to be paid by the contractor pursuant to the provisions of Subsection D or E of this section is twenty-five dollars ($25.00) or less, the fee may be waived.

G. The director shall report every incident of nonlicensed contracting work to the taxation and revenue department to assure that the contractor complies with tax requirements and pays all taxes due."

Section 14. Section 60-13-15 NMSA 1978 (being Laws 1977, Chapter 245, Section 177, as amended) is amended to read:

"60-13-15. LICENSE ISSUANCE.--[COMMISSION REVIEW.--

A. The commission shall review at its regular meetings all licenses issued by the division. The commission shall report to the superintendent of regulation and licensing and the attorney general any license issued to an applicant who fails to meet the requirements established by law and commission regulations for license issuance.

B.] The signing of a license by the director for issuance by the division to an applicant who fails to meet the requirements established by law or [committee regulations] division rules for issuance of licenses is a misdemeanor, and the director, if convicted by a court of law, shall be relieved of his duties and shall be subject to civil damages as provided in Section 30-23-7 NMSA 1978. [Failure by the committee or any member of the committee to report the illegal issuance of a license is a petty misdemeanor and upon conviction shall result in termination of the appointment of the committee member so convicted.]"

Section 15. Section 60-13-16 NMSA 1978 (being Laws 1967, Chapter 199, Section 18, as amended) is amended to read:

"60-13-16. DIVISION--QUALIFYING PARTY--EXAMINATION--CERTIFICATE.--

A. Except as otherwise provided in this section, no certificate of qualification shall be issued to an individual desiring to be a qualifying party until he has passed [with a satisfactory score] an examination approved and adopted by the division.

B. The examination shall consist of a test based on general business knowledge and rules [and regulations] of the division and the provisions of the Construction Industries Licensing Act. In addition, applicants for a GB, MM or EE classification or for any other classification that the [commission] division determines to be appropriate shall take a test based on technical knowledge and familiarity with the prescribed codes and minimum standards of the particular classification for which certification is requested. The division shall provide examinations in both English and Spanish.

C. In lieu of the examination to determine knowledge of business and construction industries law provided for in Subsection B of this section, an applicant may satisfy the business and law knowledge requirement by receiving a certificate of completion of a business and law course of study offered by an accredited education institute approved by the [commission] division. The course and any preparation and instruction materials shall be available in both English and Spanish and shall be made available to the division [the commission] or the designated agent of the division, upon request, for review.

D. If a contractor's license is subject to suspension by the [commission] division and if the suspension is based on the requirement that the licensee employ a qualifying party and the employment of the qualifying party is terminated without fault of the licensee, a member of that trade who is experienced in the classification for which the certificate of qualification was issued and has been employed for five or more years by the licensed contractor shall be issued without examination a temporary certificate of qualification in the classification for which the contractor is licensed. The temporary qualifying party is required to pass the regular examination as set forth in Subsection B of this section within ninety days of issuance of a temporary certificate of qualification.

E. The certificate of qualification is not transferable.

F. A qualifying party whose certificate is revoked by the [commission] division shall not reapply for a certificate for one year."

Section 16. Section 60-13-18 NMSA 1978 (being Laws 1967, Chapter 199, Section 20, as amended) is amended to read:

"60-13-18. LICENSES--RENEWAL.--

A. [Licenses] A license issued by the division [are] is not transferable.

B. A contractor's [licenses] license shall expire two years after the issuance date or as determined by the division, but in no instance less than one year, and shall be renewable upon application to the division and payment of the prescribed renewal fee; provided that nothing in this subsection shall prohibit the division from establishing a staggered system of license expiration and a procedure for proration of fees for licenses issued for less than the two-year period or other period provided by the division pursuant to this subsection.

C. [Licenses] A license shall expire upon the date established by [regulation of the commission] rules of the division, and such [regulation to] rules shall provide for a staggered system of license expiration and for proration of fees for [licenses] a license issued for less than a full year. Thereafter, [such licenses] a license shall be issued for a period of two years or as otherwise provided by the division pursuant to Subsection B of this section. [Licenses] A license shall be subject to renewal upon application to the division and payment of the prescribed renewal fee.

D. The director shall, at least thirty days prior to the expiration date of a license, notify the licensee of the approaching expiration. Notice shall be given by mail addressed to the licensee's last address on file with the division. The notice shall include a renewal application form, instructions and any other information prescribed by the division.

E. Failure of a licensee to make application for the renewal of his license, to furnish such other information required by the [commission] division and to pay the prescribed renewal fee by the last working day prior to the expiration of the license shall cause the license to be suspended by operation of law. [F. Unless the license is renewed within a three-month period, it shall be canceled.] The suspended license may be renewed only after payment of a fee equal to one dollar ($1.00) for each day, up to thirty days, that has elapsed since the expiration date of the license and thereafter for a fee equal to twice the amount of the renewal fee.

F. Unless the license is renewed within a three-month period, it shall be canceled."

Section 17. Section 60-13-19 NMSA 1978 (being Laws 1978, Chapter 78, Section 1, as amended) is amended to read:

"60-13-19. DIVISION--EVIDENCE OF POSSESSION--PENALTY.--

A. Prior to performing work as a contractor, a person must obtain a license and certificate of competence if applicable, pursuant to the Construction Industries Licensing Act and the rules adopted pursuant to that act. Such license and certificate must be current and free of restrictions or encumbrances. No person may perform contracting work, or act as a contractor, unless he is in full compliance with the requirements of this section. Failure to comply with the requirements of this section constitutes the act of unlicensed contracting as provided in Section 60-13-52 NMSA 1978.

[A. The] B. A licensee shall exhibit satisfactory evidence of the possession of a license on demand and shall clearly indicate his contractor's license number [on all written bids and] when applying for a building permit. Before work is commenced, a contract is signed or funds are paid for [any] residential contracting, the contractor shall disclose in writing to the owner that the license issued under the Construction Industries Licensing Act does not protect the consumer if the contractor defaults.

[B. Any] C. A contractor who fails to indicate his contractor's license number clearly [on all written bids and] when applying for a building permit or who fails to make the disclosure statement required [under this section] pursuant to Subsection B of this section shall be assessed by the division a penalty fee of one hundred fifty dollars ($150). The fee shall be payable to the code jurisdiction or political subdivision [which] that issued the permit [or in which the work for which the bid is submitted is or would be permitted]."

Section 18. Section 60-13-23 NMSA 1978 (being Laws 1967, Chapter 199, Section 26, as amended) is amended to read:

"60-13-23. REVOCATION OR SUSPENSION OF LICENSE BY THE [COMMISSION] DIVISION--CAUSES.--[Any] A license issued by the division shall be revoked or suspended by the [commission for any of the following causes:

A.] division if the licensee or qualifying party of the licensee:

A. willfully or by reason of incompetence violates any provision of the Construction Industries Licensing Act or any rule or regulation adopted pursuant to that act by the division;

B. knowingly [contracting or performing] contracts or performs a service beyond the scope of the license;

C. [misrepresentation of] misrepresents a material fact [by the applicant] in obtaining a license;

D. [failure] fails to maintain proof of responsibility as required by the Construction Industries Licensing Act;

E. [unjustified abandonment of any] without justification abandons a contract as determined by a court of competent jurisdiction;

F. [conversion of] converts funds or property received for prosecution or completion of a specific contract or for a specified purpose in the prosecution or completion of any contract, obligation or purpose, as determined by a court of competent jurisdiction;

G. [departure] departs from or [disregard of] disregards plans or specifications that result in a code [violations] violation;

H. [willful or fraudulent commission of any] willfully or fraudulently commits an act [by the licensee] as a contractor in consequence of which another is substantially injured, as determined by a court of competent jurisdiction;

I. [failure] fails to maintain workers' compensation insurance as required by the Workers' Compensation Act;

J. [aiding, abetting, combining or conspiring] aids, abets, combines or conspires with a person to evade or violate the provisions of the Construction Industries Licensing Act by allowing a contractor's license to be used by an unlicensed person or acting as agent, partner, associate or otherwise in connection with an unlicensed person, with the intent to evade the provisions of the Construction Industries Licensing Act; or

K. [acting] acts in the capacity of a licensee under any other name than is set forth upon the license."

Section 19. Section 60-13-23.1 NMSA 1978 (being Laws 1987, Chapter 283, Section 6, as amended) is amended to read:

"60-13-23.1. ADMINISTRATIVE PENALTY.--

A. Notwithstanding any provisions of the Uniform Licensing Act or the Construction Industries Licensing Act to the contrary, the [commission] division may, in addition to or instead of revocation or suspension of a license issued by the division for any cause specified in the Construction Industries Licensing Act, assess the licensee an administrative penalty in the following amounts:

(1) where the dollar value of the contract or work performed is five thousand dollars ($5,000) or less, the penalty shall be not less than three hundred dollars ($300) or more than five hundred dollars ($500); or

(2) where the dollar value of the contract or work performed is more than five thousand dollars ($5,000), the penalty shall be in an amount equal to not more than ten percent of the dollar amount of the contract or work performed but not less than five hundred dollars ($500).

B. If a person subject to the penalties under Subsection A of this section previously has had his contractor's license suspended or revoked or has been assessed an administrative penalty pursuant to Subsection A of this section, that person shall be assessed twice the amount specified in Paragraph (1) or (2) of Subsection A of this section, as applicable.

C. Failure to pay an administrative penalty upon the date set by the [commission] division shall subject the offender to an additional penalty of one hundred dollars ($100) for each day the offender fails to comply with the order. The attorney general shall institute an action in the district court to recover the appropriate penalties."

Section 20. Section 60-13-24 NMSA 1978 (being Laws 1967, Chapter 199, Section 27, as amended) is amended to read:

"60-13-24. CERTIFICATES OF QUALIFICATION--CAUSES FOR REVOCATION OR SUSPENSION.--Any certificate of qualification shall be revoked or suspended by the [commission] division for the following [causes]:

A. misrepresentation of a material fact by the individual in obtaining the certificate;

B. violation, willfully or by reason of incompetence, of any provision of the Construction Industries Licensing Act or any code, minimum standard, rule or regulation adopted pursuant to that act; or

C. aiding, abetting, combining or conspiring with a person to evade or violate the provisions of the Construction Industries Licensing Act or any code, minimum standard, rule or regulation adopted pursuant to that act."

Section 21. Section 60-13-27 NMSA 1978 (being Laws 1967, Chapter 199, Section 30, as amended) is amended to read:

"60-13-27. COMPLAINTS AGAINST LICENSEES AND CERTIFICATE HOLDERS--INVESTIGATIONS BY DIVISION--INFORMAL RESOLUTION--NOTICE OF REVOCATION ACTION.--

A. The division on its own motion or upon the verified complaint in writing of [any] a person shall investigate the actions of [any] a licensee or certificate holder. The director may assign one or more inspectors certified pursuant to Section 60-13-41 NMSA 1978, investigators or other personnel to investigate that licensee or certificate holder or any activity within the jurisdiction of the Construction Industries Licensing Act. The director may authorize an inspector or investigator to enter any code jurisdiction to make investigations. The investigation shall be for the purpose of determining if there has been a code violation or other breach of Section 60-13-23, 60-13-24 or 60-13-36 NMSA 1978 on the part of a licensee or certificate holder constituting probable grounds for revocation or suspension of his license or certificate.

B. The person assigned by the director shall make an immediate investigation, securing all pertinent facts and statements, including a statement from the contractor if he is available, and names and addresses of witnesses. Within one hundred eighty days of receipt of the complaint by the division, [he] the person assigned shall make a full and complete written report to the director.

C. Complaints may be resolved informally at the request of the complainant, the contractor or the [commission] division. For informal resolution of a complaint, all parties [must] shall agree to the informal hearing and agree that the decision of the informal hearing officer is final. The procedures for informal hearings and resolution of complaints shall be established by the [commission] division.

D. [All] A revocation and suspension [proceedings] proceeding conducted by the [commission] division and judicial review of the [commission's] division's decision shall be governed by the provisions of the Uniform Licensing Act. Prior to [any] a revocation action by the [commission] division, notice of the pending action shall be given to the bonding company [which] that has in effect for the licensee any bond issued pursuant to the proof of responsibility provisions of the Construction Industries Licensing Act."

Section 22. Section 60-13-28 NMSA 1978 (being Laws 1967, Chapter 199, Section 31, as amended) is amended to read:

"60-13-28. SUSPENSION PERIOD.--

A. The [commission] division shall make all suspensions for a definite period not exceeding ninety consecutive days. Suspension of a license for any cause specified in the Construction Industries Licensing Act shall not preclude revocation of that license for cause by the [commission] division.

B. A contractor whose license has been suspended or revoked shall complete work in progress as directed by the [commission] division.

C. At the end of the suspension period, the [commission] division shall review the license to determine if the license should be reinstated or revoked."

Section 23. Section 60-13-29 NMSA 1978 (being Laws 1967, Chapter 199, Section 32, as amended) is amended to read:

"60-13-29. RENEWAL OF REVOKED LICENSE OR CERTIFICATES.--After revocation of [any] a license or certificate of qualification issued pursuant to the Construction Industries Licensing Act, no license or certificate shall be issued, renewed or reissued to the licensee until a period of one year after the date of the original order of revocation by the [commission] division has expired. After expiration of that period, no license or certificate shall be issued, renewed or reissued except as is provided for the issuance of [any] an initial license or certificate."

Section 24. Section 60-13-33 NMSA 1978 (being Laws 1967, Chapter 199, Section 36, as amended) is amended to read:

"60-13-33. TRADE BUREAUS--GENERAL DUTIES AND POWERS.--The trade bureaus shall:

A. cooperate in administering examinations for the licensing and certification of the occupations or trades assigned to their jurisdictions pursuant to the Construction Industries Licensing Act and provide those examinations and any related materials in both English and Spanish;

B. perform inspections of all occupations, trades and activities within their jurisdictions;

C. be responsible for all administrative duties and other duties necessary and incidental thereto required in the Construction Industries Licensing Act, including those activities and duties assigned to them by the director; and

D. recommend rules [and regulations] and submit them to the division for approval [by the commission] and promulgation [by the division]."

Section 25. Section 60-13-36 NMSA 1978 (being Laws 1967, Chapter 199, Section 39, as amended) is amended to read:

"60-13-36. CERTIFICATES OF COMPETENCE--SUSPENSION AND REVOCATION.--

A. The [commission] division may suspend [any] a certificate of competence issued within the scope of [the] a bureau's trade for a definite period not exceeding ninety consecutive days.

B. Suspension of a certificate of competence shall be for any cause specified in the Construction Industries Licensing Act.

C. The [commission] division may revoke [any] a certificate of competence issued by it only for the following causes:

(1) misrepresentation of a material fact by the individual obtaining the certificate;

(2) violation willfully or by reason of incompetence of [any] a provision of the Construction Industries Licensing Act or [any] a code, minimum standard, rule or regulation adopted pursuant to that act pertaining to installation, alteration, maintenance, connection or repair; or

(3) aiding, abetting, combining or conspiring with a person to evade or violate the provisions of the Construction Industries Licensing Act or [any] a code, minimum standard, rule or regulation adopted pursuant thereto."

Section 26. Section 60-13-38 NMSA 1978 (being Laws 1967, Chapter 199, Section 41, as amended) is amended to read:

"60-13-38. CERTIFICATES OF COMPETENCE--EXAMINATION--JOURNEYMEN.--

A. No individual shall engage in the occupation or trade of journeyman unless he holds a certificate of competence issued by the division for the occupation or trade in which he desires to engage.

B. The division shall issue certificates of competence for journeyman electricians, journeyman plumbers, journeyman gas fitters, journeyman pipe fitters, journeyman sheet metal workers, journeyman boiler operators and journeyman welders working on pipelines, collection lines or compressor stations.

C. An applicant for a certificate of competence shall pass an examination approved and adopted by the division as to his knowledge of the orders, rules and regulations governing the occupation or trade for which a certificate is sought, and he shall also be examined as to his technical knowledge and ability pertaining to his particular trade. The examination may be oral, written or demonstrative or [any] a combination thereof, as required by [regulations] rule of the [commission] division; provided that the division shall issue a certificate of competence to [any] a journeyman welder working on pipelines, collection lines or compressor stations who shows evidence of having satisfactorily completed an examination administered by an independent testing organization or public utility employing engineers registered with the state, such examination meeting the minimum pipeline safety standards set by the [state corporation] public regulation commission.

D. Applications for certificates of competence shall be in the form and shall contain such information and attachments as the division prescribes.

E. The division shall establish a reasonable fee for [any] an examination or issuance of certificate of competence.

F. No individual is eligible to take an examination for a certificate of competence unless he has [had] two years' experience in the occupation or trade for which a certificate of competence is sought, or the equivalent thereof as determined by the [commission] division, or has successfully completed a course in the trade approved by the vocational education division of the state department of public education. Employment of an apprentice working under the direct supervision of a certified journeyman is not prohibited by the Construction Industries Licensing Act."

Section 27. Section 60-13-41 NMSA 1978 (being Laws 1967, Chapter 199, Section 49, as amended) is amended to read:

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

A. State inspectors shall be employed by the director.

B. Qualifications [and job descriptions] for inspectors for the state, municipalities and all other political subdivisions shall be prescribed by the [commission. The commission shall also promulgate rules and regulations establishing a recertification incentive plan which provides for salary increases for state inspectors based on education and training and additional qualifications] division.

C. The division may appoint inspection agencies 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 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.

D. The division may enter into reciprocal agreements with other jurisdictions having comparable codes, standards and inspection requirements for the inspection of the construction, alteration or repair of modular homes, premanufactured homes and manufactured commercial units.

E. The division may [with the approval of the commission] establish qualifications for inspectors certified to inspect in more than one bureau's jurisdiction."

Section 28. 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 may, during reasonable hours, enter [any] a building or go upon any premises in the discharge of his official duties for the purpose of making an inspection of work performed or for the purpose of testing [any] an installation authorized within the jurisdiction of his trade certification. He may cut or disconnect, or have cut or disconnected in cases of emergency, [any] 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.

B. The inspector may disconnect or order the discontinuance of [any] a service to [any] an 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] a defect or [any] an incorrect installation [which] that prompted the disconnection and discontinuance of service.

D. [In all cases where] When a 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 [any] a person to remove the notice or to use the installation, device, appliance or equipment without authorization of an inspector.

E. The powers granted by this section to [any] a municipal inspector may be exercised by him only in the localities where he is authorized to make inspection.

F. The division shall by [regulation] rule adopt official inspection stickers or medallions for the purpose of identifying those modular homes and premanufactured homes [which] that have been inspected and found to comply with [all] the 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."

Section 29. Section 60-13-43 NMSA 1978 (being Laws 1967, Chapter 199, Section 51, as amended) is amended to read:

"60-13-43. QUALIFICATION OF MUNICIPAL AND COUNTY INSPECTORS.--

A. No person shall be employed by [any] a municipality or county as an inspector unless he has first secured approval from the division of his competence as an inspector.

B. Trade bureaus shall issue to [all] each approved municipal and county [inspectors] inspector a certificate setting forth the fact of approval.

C. Certification by the division shall remain in effect unless rescinded by action of the [commission] division.

D. [Any] A complaint brought against a certified municipal or county inspector shall cause the director to assign an investigator to investigate the merits of the complaint and report to the [commission] division within thirty days."

Section 30. 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] division minimum standards for the installation or use of electrical wiring. The recommendations shall substantially embody the applicable provisions of electrical standards for safety to life and property promulgated by a nationally recognized underwriting laboratory, as approved by a nationally recognized standards association, which standards are in general use in the United States or in a clearly defined region of the United States.

B. The mechanical bureau shall recommend to the [commission] division 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 the Uniform Mechanical Code published by the international conference of building officials and the Uniform Plumbing Code published by the international association of mechanical and plumbing officials. 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] division.

C. The general construction bureau shall recommend to the [commission] division 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 in general use in the United States or in a clearly defined region of the United States 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] division 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 individuals who are physically handicapped, and the specifications shall conform substantially with those contained in a nationally recognized standard for making public facilities accessible to the physically handicapped. [All] Orders and rules recommended by the general construction bureau and adopted by the [commission] division under the provisions of this section shall be printed and distributed to all licensed contractors, architects and engineers and to the governor's committee on concerns of the handicapped. The orders and rules shall take effect on a date fixed by the [commission] division, which shall not be less than thirty days after their adoption by the [commission] division, 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.

F. [All] Political subdivisions of the state 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.

G. The trade bureaus within their respective jurisdictions shall recommend to the [commission] division standards 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 the physically handicapped 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] division 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, which standards are in general use in the United States or in a clearly defined region of the United States, 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] division under the provisions of this subsection, the provisions of the New Mexico Uniform Building Code, the New Mexico Electrical Code, the New Mexico Plumbing Code or the Natural Gas Code of New Mexico 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] A change in the use or occupancy or [any] a 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] division shall review [all] the 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 31. Section 60-13-45 NMSA 1978 (being Laws 1967, Chapter 199, Section 53, as amended) is amended to read:

"60-13-45. TRADE BUREAUS--PERMITS.--

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

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

(1) minor repairs, sheetrock, patching, painting, fencing under six feet in height that is not used as a retaining wall, replacement of lamps or light fixtures, 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, lavatories, water closets or toilets or the connection of portable electrical or mechanical equipment or machinery 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 and circuits used 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] division 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 and for inspections within a municipality where the inspection is done exclusively by a full-time state inspector. Each trade bureau by regulation 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 ($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."

Section 32. 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 applicant for a contractor's license or for renewal of a contractor's license shall be issued a license until the director determines that he is responsible to perform under the individual permit capacity for which he furnishes proof of responsibility pursuant to Subsection C of this section.

B. Proof of responsibility shall be:

(1) a license bond acceptable to the director and underwritten by a corporate surety authorized to transact business in New Mexico;

(2) an agreement of cash collateral assignment executed with a state or national bank or federally insured savings association authorized to do business in New Mexico as trustee, in a form prescribed by the [commission] division. Interest, if any, accumulating on the cash collateral assignment shall accrue to the licensee; or

(3) a current financial statement, which shall be filed initially with the license application and filed annually thereafter with the division. The financial statement shall be a current audited financial statement or certified by a financial institution.

C. Proof of responsibility shall be furnished in amounts as follows:

(1) for a licensee or applicant who permits or contracts projects singly in New Mexico for a dollar value of twenty-five thousand dollars ($25,000) or less, proof of responsibility in the amount of five hundred dollars ($500). [This] That licensee's maximum permit or contract capacity shall be twenty-five thousand dollars ($25,000);

(2) for a licensee or applicant who permits or contracts projects singly in New Mexico for a dollar value of more than twenty-five thousand dollars ($25,000) but less than two hundred thousand dollars ($200,000), proof of responsibility in the amount of one thousand dollars ($1,000). [This] That licensee's maximum permit or contract capacity shall be two hundred thousand dollars ($200,000);

(3) for a licensee or applicant who permits or contracts projects singly in New Mexico for a dollar value of more than two hundred thousand dollars ($200,000) but less than one million dollars ($1,000,000), proof of responsibility in the amount of two thousand five hundred dollars ($2,500). [This] That licensee's maximum permit or contract capacity shall be one million dollars ($1,000,000); and

(4) for a licensee or applicant who permits or contracts projects singly in New Mexico for a dollar value of more than one million dollars ($1,000,000), proof of responsibility in the amount of five thousand dollars ($5,000). [This] That licensee shall have no maximum permit or contract capacity.

D. Proof of responsibility shall be for the payment of fines and penalties.

E. Proof of responsibility, if a bond, shall be a continuous form bond on a form prescribed by the [commission] division. It shall be a condition of the bond that the total aggregate liability of the surety for all claims shall be limited to the face amount of the bond irrespective of the number of years the bond is in force.

F. Proof of responsibility posted by a licensee or applicant shall be in a form to provide thirty days' written notice of a cancellation to the division.

G. Failure to maintain proof of responsibility for the period required by law is cause for revocation of the license.

H. No legal action may be maintained on the proof of responsibility unless the action is commenced within twelve months after the case accrues or within twelve months after substantial completion of the project, whichever is earlier.

I. If a licensee's license bond or cash collateral assignment is canceled, expires or otherwise becomes ineffective during the period for which it is required, the division shall cancel the license upon receiving notice of such cancellation, expiration or ineffectiveness. The cancellation of the license shall become effective thirty days after the date that notice of such action is mailed to the licensee by the division, unless the licensee provides to the division within that thirty days proof of responsibility as required under this section. A person whose license has been canceled pursuant to this subsection may be renewed or reinstated provided he complies with all licensing requirements.

J. Contracting or bidding during the period when the license bond or cash collateral assignment is canceled, expired or otherwise ineffective is cause for revocation of the license by the [commission] division."

Section 33. Section 60-13-51 NMSA 1978 (being Laws 1971, Chapter 233, Section 1, as amended) is amended to read:

"60-13-51. CONTRACTOR'S BOND--MUNICIPAL REQUIREMENT PROHIBITED.--No municipality shall require [any] a person or corporation licensed under the provisions of the Construction Industries Licensing Act to file or obtain as a condition of doing business as a licensed contractor within the municipality [any] an additional license bond as proof of responsibility if the person or corporation has met the responsibility requirements of the [commission] division."

Section 34. Section 60-13-53 NMSA 1978 (being Laws 1967, Chapter 199, Section 60, as amended) is amended to read:

"60-13-53. [COMMISSION OR] DIVISION--POWERS OF INJUNCTION--MANDAMUS.--The [commission or] division may enforce in the district court of the county in which the offense was committed the provisions of the Construction Industries Licensing Act by injunction, mandamus or any proper legal proceeding."

Section 35. Section 60-13-55 NMSA 1978 (being Laws 1967, Chapter 199, Section 62, as amended) is amended to read:

"60-13-55. CONTINUATION OF CONSTRUCTION CODES AND STANDARDS.--[Any] A code and minimum standard related to the construction, alteration, installation or repair of a private or public building or installation on public or private premises in effect at the time of passage and approval of the Construction Industries Licensing Act shall continue in effect until the [commission] division and trade bureaus created by the Construction Industries Licensing Act amend or revise those codes and minimum standards pursuant to provisions of the Construction Industries Licensing Act."

Section 36. Section 60-13-57 NMSA 1978 (being Laws 1973, Chapter 229, Section 5, as amended) is amended to read:

"60-13-57. HEARING OFFICER AUTHORIZED.--The [commission] division may designate a hearing officer to preside over and take evidence at any hearing held pursuant to the Construction Industries Licensing Act. Hearing officers may be employees or individuals hired outside the division by contract or on a case-by-case basis as determined by the [commission] division."

Section 37. Section 61-1-2 NMSA 1978 (being Laws 1957, Chapter 247, Section 2, as amended by Laws 1993, Chapter 49, Section 31 and by Laws 1993, Chapter 171, Section 25 and also by Laws 1993, Chapter 295, Section 1) is amended to read:

"61-1-2. DEFINITIONS.--As used in the Uniform Licensing Act:

A. "board" means:

(1) [the construction industries commission] the construction industries division and the electrical bureau, mechanical bureau and general construction bureau of the construction industries division of the regulation and licensing department;

(2) the manufactured housing committee and manufactured housing division of the regulation and licensing department;

(3) a board, commission or agency that administers a profession or occupation licensed pursuant to Chapter 61 NMSA 1978; and

(4) any other state agency to which the Uniform Licensing Act is applied by law;

B. "applicant" means a person who has applied for a license;

C. "license" means a certificate, permit or other authorization to engage in each of the professions and occupations regulated by the boards enumerated in Subsection A of this section;

D. "revoke a license" means to prohibit the conduct authorized by the license; and

E. "suspend a license" means to prohibit, for a stated period of time, the conduct authorized by the license. "Suspend a license" also means to allow for a stated period of time the conduct authorized by the license subject to conditions that are reasonably related to the grounds for suspension."

Section 38. Section 70-5-1 NMSA 1978 (being Laws 1947, Chapter 214, Section 1, as amended) is amended to read:

"70-5-1. DEFINITIONS.--As used in the LPG and CNG Act:

A. "liquefied petroleum gases", "LPG" [and] or "LP gas" means any material that is composed predominantly of any of the following hydrocarbons or mixtures of them: propane, propylene, butanes (normal butane or iso-butane) and butylenes;

B. "compressed natural gases" [and] or "CNG" means mixtures of hydrocarbon gases and vapors consisting principally of methane in gaseous form [which] that has been compressed for vehicular fuel;

C. "product" or "products" of liquefied petroleum gases or compressed natural gases are considered to be liquefied petroleum gases or compressed natural gases respectively;

D. "qualified instructor" means an employee who has passed the required examination and performed for at least one year the work being taught;

E. "inspector" means a person hired by the bureau to enforce under administrative direction the laws and safety rules and regulations of the LP gas industry and the use of CNG in motor vehicles;

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

G. "bureau" means the liquefied petroleum [and compressed] gas bureau of the division [and

H. "commission" means the construction industries commission]."

Section 39. Section 70-5-3 NMSA 1978 (being Laws 1947, Chapter 214, Section 2, as amended) is amended to read:

"70-5-3. RULES AND REGULATIONS FOR DESIGN, CONSTRUCTION, ASSEMBLING, EQUIPPING AND INSTALLING OF CONTAINERS AND EQUIPMENT.--All containers and pertinent equipment used or to be used in this state for CNG equipment when attached to motor vehicles or for the storage, transporting or dispensing of LP gases or CNG by industrial, commercial or domestic users, together with appliances used or to be used in this state with LP gases as fuel, shall be designed, constructed, assembled, equipped and installed as specified by the rules and regulations of the [commission] division, adopted and promulgated as provided in the LPG and CNG Act."

Section 40. Section 70-5-4 NMSA 1978 (being Laws 1947, Chapter 214, Section 3, as amended) is amended to read:

"70-5-4. ACTS CONCERNING LP GAS OR CNG SUBJECT TO [COMMISSION] DIVISION RULES AND REGULATIONS.--The selling, offering for sale, constructing, assembling, repairing, equipping, installing, filling with fuel, storage of fuel within, dispensing of fuel from or transporting fuel within containers described in Section 70-5-3 NMSA 1978 without the containers having been designed, constructed, assembled, equipped, maintained, tested and inspected as specified by the rules and regulations of the [commission] division pursuant to the LPG and CNG Act shall be a violation of the LPG and CNG Act and shall be subject to the fines, penalties and restrictions provided."

Section 41. Section 70-5-5 NMSA 1978 (being Laws 1947, Chapter 214, Section 4, as amended) is amended to read:

"70-5-5. POWER TO ADOPT AND PROMULGATE RULES [AND REGULATIONS]--EXCEPTIONS TO ACT.--

A. The [commission] division may adopt and promulgate rules [and regulations] as [are] necessary to carry out the purpose of the LPG and CNG Act and for the public peace, health and safety as affected by the use of such materials. The [regulations made] rules shall substantially conform with the standards as published by the national fire protection association covering the same subject matter. Nothing contained in this section is intended to alter the specifications for manufacturing or testing of containers established by the interstate commerce commission or the [U.S.] United States department of transportation or of containers installed in refineries, gas processing plants, underground storage terminals, natural gas distributing plants and pipeline terminals.

B. The bureau may adopt a schedule of reasonable fees to be charged for furnishing any printed matter or forms, for filing or recording any data sheets, blueprints, drawings, plans, specifications, reports and any other instrument or document and for making and furnishing copies of any record, report, regulation, rule, law or any other matter on file with the bureau."

Section 42. Section 70-5-6 NMSA 1978 (being Laws 1947, Chapter 214, Section 5, as amended) is amended to read:

"70-5-6. LICENSE--EXCEPTIONS.--

A. No person, firm or corporation shall engage in this state in the manufacturing, assembling, repairing, selling or installing of containers or appliances or of equipment for CNG attached or to be attached to motor vehicles to be used with LP gases as a fuel, nor shall any person, firm or corporation engage in the manufacture, sale, transportation, dispensing or storage of LP gases within this state, except where stored by the ultimate consumer for consumption only, without having first obtained from the bureau a license to do so for each main and branch office or business operated within the state pursuant to the LPG and CNG Act. No license shall be issued until the bureau has determined that the applicant meets all safety requirements provided for in that act and required by the rules and regulations of the [commission] division and the bureau finds that the applicant is fit and able to perform the work for which a license is requested; provided that household appliances and any other appliance, container or equipment being fed from a reservoir less than five pounds shall not be subject to the LPG and CNG Act and provided further that retail sale of LP gas appliances, including factory installed LP gas appliances and equipment on campers, mobile homes and recreational vehicles, shall be exempt from this section.

B. When LP gas or CNG is to be the source of fuel, the installation of piping, appliances and equipment shall be made by installers qualified by the bureau. Property-owner installed systems, when certified by qualified installers or inspectors of the bureau, are exempt from the provisions of this subsection."

Section 43. Section 70-5-7 NMSA 1978 (being Laws 1970, Chapter 65, Section 1, as amended) is amended to read:

"70-5-7. REQUIRING COMPETENT EMPLOYEES IN TRANSPORTING, DISPENSING, INSTALLATION, SERVICE OR REPAIR.--

A. The bureau may require each person, firm or corporation that transports or dispenses LP gas or that installs, repairs or services appliances, containers, equipment or piping for the use of LP gas to have all persons who perform these activities pass an appropriate examination based on the safety requirements of the [commission] division.

B. A trainee employee shall be exempt from such examination for a period of forty-five working days and until examined by a representative of the bureau. A trainee employee, during the forty-five day period, shall be under supervision of a qualified instructor. Any LP or CNG gas licensee hiring a trainee shall, within forty-five days of the commencement of employment, notify the bureau of this fact so that an examination may be scheduled. If the trainee fails to pass the examination, he may retake it after additional instruction.

C. The bureau shall set a reasonable fee for administering an examination."

Section 44. Section 70-5-11 NMSA 1978 (being Laws 1973, Chapter 362, Section 11, as amended) is amended to read:

"70-5-11. PROOF OF RESPONSIBILITY.--

A. The bureau shall require each licensee to have combined single limit public liability insurance of a reasonable amount determined by the [commission] division. Such coverage shall be filed on a certificate to be prescribed by the [commission] division, and the coverage shall be effective until canceled by either the carrier or the licensee. The provisions of this subsection do not apply to manufacturers of LP gas.

B. The licensee may file as an alternative to insurance described in Subsection A of this section a corporate surety bond of a reasonable amount determined by the [commission] division.

C. The insurance or the surety bond shall be purchased from a company licensed to do business in New Mexico.

D. The certificate of insurance or the surety bond filed with the bureau shall continue to be effective until thirty days after the date the bureau is notified in writing of the cancellation of the insurance or surety bond."

Section 45. Section 70-5-12 NMSA 1978 (being Laws 1947, Chapter 214, Section 12, as amended) is amended to read:

"70-5-12. POWER OF BUREAU AND [COMMISSION] DIVISION TO REFUSE TO GRANT, SUSPEND OR CANCEL A LICENSE.--The bureau may refuse to grant a license to any applicant and may request the [commission] division to suspend or cancel the license of any licensee if it appears to the bureau upon hearing, as provided in the LPG and CNG Act, that an applicant or licensee has violated or failed to comply with any provision of law relating to LP gas or CNG or with any rule, regulation or order of the bureau or [commission] division or that any licensee has demonstrated that he is incompetent or lacks knowledge in matters relevant to a license to such an extent that, in the judgment of the bureau, it would endanger the public safety to allow the licensee to continue to engage in LP gas or CNG activities or operations."

Section 46. Section 70-5-13 NMSA 1978 (being Laws 1947, Chapter 214, Section 13, as amended) is amended to read:

"70-5-13. PROVISIONS FOR HEARINGS.--Upon receipt of written complaint from one of its representatives or by [any] a person or party affected, the bureau may, if it finds probable cause for such complaint, request the [commission] division to hold a hearing to consider the complaint under the provisions of the LPG and CNG Act and under such rules and regulations not inconsistent with that act. If at the hearing the [commission] division finds that the licensee has violated or failed to comply with any of the provisions of the LPG and CNG Act or the rules and regulations of the bureau or [commission then] division, the [commission] division may revoke or suspend the license of the licensee. The bureau may investigate on its own motion any matters pertaining to the subject of the LPG and CNG Act and may hold such hearings as it deems necessary. The bureau may also summon and compel the attendance of witnesses, require the production of any records or documents deemed by it to be pertinent to the subject matter of any investigation and provide for the taking of depositions of witnesses under such rules as it may prescribe."

Section 47. Section 70-5-14 NMSA 1978 (being Laws 1947, Chapter 214, Section 14, as amended) is amended to read:

"70-5-14. NOTICE--HEARING.--Notice of any hearing and of its time and place shall be given by certified mail not less than ten days, exclusive of the day of mailing, before the hearing. The notice shall be sent to the licensee and all persons involved. Any licensee against whom a complaint has been filed shall have the right to file answer, appear at the hearing, introduce evidence and be heard both in person and by counsel. In the hearing before the [commission] division, the rules of civil procedure and the technical rules of evidence shall not apply, but the hearing shall be conducted so that both complaints and defenses are amply and fairly presented."

Section 48. Section 70-5-15 NMSA 1978 (being Laws 1973, Chapter 362, Section 15, as amended) is amended to read:

"70-5-15. FINDING--RECORD.--At the conclusion of any hearing held to consider a complaint filed against any licensee under the LPG and CNG Act, the [commission] division shall enter its finding and order in writing, and the finding and order shall be recorded in a permanent record to be kept by the division. A copy of the [commission's] division's finding and order shall be furnished to the licensee complained of."

Section 49. Section 70-5-16 NMSA 1978 (being Laws 1973, Chapter 362, Section 16, as amended) is amended to read:

"70-5-16. APPEAL.--A licensee whose license is canceled or suspended by order of the [commission] division may appeal the decision by filing an appeal with the district court pursuant to the provisions of Section 39-3-1.1 NMSA 1978."

Section 50. Section 70-5-18 NMSA 1978 (being Laws 1947, Chapter 214, Section 18, as amended) is amended to read:

"70-5-18. CIVIL PENALTY FOR FAILURE TO COMPLY WITH ACT OR ANY ORDER, RULE OR REGULATION.--The failure of any person, firm or corporation or any association engaged in any LP gas or CNG activity or operation requiring a license by the bureau to comply, within forty-eight hours after the receipt of any certified order of the bureau or [commission] division requiring compliance, with the laws relating to LP gases or CNG or any order, rule or regulation of the bureau or [commission] division shall subject the person or the officers of the corporation to a civil penalty of one hundred dollars ($100) for each day the violation continues, and the attorney general may institute civil actions in the district court of the county in which the violation occurs to recover penalties in the name and on behalf of the state."

Section 51. Section 70-5-20 NMSA 1978 (being Laws 1947, Chapter 214, Section 21, as amended) is amended to read:

"70-5-20. ENFORCEMENT.--The bureau may enforce the laws relating to LP gases and CNG and any rules, regulations or orders adopted by it or the [commission] division pursuant to those laws by injunction in the district courts, which remedy shall be in addition to the civil and criminal penalties provided in the LPG and CNG Act. The chief and the inspectors of the bureau may issue citations for violation of the LPG and CNG Act."

Section 52. Section 70-5-21 NMSA 1978 (being Laws 1947, Chapter 214, Section 22, as amended) is amended to read:

"70-5-21. MISDEMEANOR.--Any person violating any provision of the LPG and CNG Act or the rules, regulations or orders of the bureau or the [commission] division issued pursuant to that act is guilty of a misdemeanor and shall be punished by a fine levied in a magistrate court of not less than fifty dollars ($50.00) or more than five hundred dollars ($500) or by imprisonment for not more than ninety days or both."

Section 53. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2001.