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F I S C A L I M P A C T R E P O R T
SPONSOR Taylor
DATE TYPED 02/26/05 HB
SHORT TITLE Contractor License Reissuance
SB 955
ANALYST McSherry
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
NFI
Minimal
NFI
Minimal Recurring General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Senate Bill 955 duplicates House Bill 993.
SOURCES OF INFORMATION
LFC Files
Responses Received From
Attorney General’s Office
Economic Development Department
Regulations and Licensing Department
SUMMARY
Synopsis of Bill
Senate Bill 955 proposes to amend the Construction Industries Licensing Act to prohibit the
Construction Industries Division (CID) of the Regulation and Licensing Department (RLD) from
issuing a contractor’s license or qualifying party certificate to a former licensee who has had
their license or certificate revoked if the director of the division finds that the former licensee
violated any provision of the Act during the revocation period.
The bill also proposes to modify current law prohibiting the issuance of a license for a period of
one year after revocation to prohibit a person whose license has been revoked from applying for
a new license for a period of one year after revocation.
Significant Issues
Presumably this bill will prevent the issuance of licenses to those who continue to act as contrac-
tors after their licenses have been revoked. Current law implies that all contractors whose li-
pg_0002
Senate Bill 955 -- Page 2
censes have been revoked are entitled to apply for and if qualified, receive new licenses after one
year.
According to RLD:
after a revoking a license, the current law requires CID to issue a new license to any in-
dividual even if he or she violated the Construction Industries Licensing Act during the period of
revocation.
the proposed changes would allow CID to refuse to license individuals who have proven
that they do not and will not comply with the laws governing contractors.
the public relies on state licensure/certification as an indication of dependability and
competence.
PERFORMANCE IMPLICATIONS
CID is already staffed and structured to investigate illegal activity of licensees. The number of
licensees whose licenses are revoked is well under 15 per year, and the number who reapply for
licensure even smaller. The Division could absorb the additional investigations required by this
legislation without any substantial impact on its performance.
FISCAL IMPLICATIONS
There is not appropriation included in this bill
The Construction Industries Division will have to implement the provisions of this bill. Accord-
ing to the Division, it is already staffed and has the resources to conduct the investigations an-
ticipated by this statute. The division cites that the number of individuals applying for licenses
after revocation is so low, that denials of licenses pursuant to this law would have virtually no
impact on revenues received from license fees.
ADMINISTRATIVE IMPLICATIONS
RLD predicts that the number of applicants who would be affected by this law would be a frac-
tion of one percent of the license base per year. The bill would have virtually no administrative
impact on CID.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
This bill duplicates House Bill 993.
WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.
Contractors whose licenses have been revoked will be eligible to apply for and receive new li-
censes after one year from the date of revocation, regardless of whether they have violated the
Construction Industries Licensing Act during the revocation period.
POSSIBLE QUESTIONS
1.
Could this change be made by rule rather than through statute. Is the division currently
made to issue a license to former licensees who reapply.
EM/lg