HJC/HB 199

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AN ACT

RELATING TO CONSTRUCTION INDUSTRIES LICENSING; AMENDING

SECTION 60-13-49 NMSA 1978 (BEING LAWS 1967, CHAPTER 199,

SECTION 57, AS AMENDED) PROVIDING FOR PROOF OF RESPONSIBILITY.

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

Section 1. 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 the applicant furnishes

proof of responsibility pursuant to Subsection B of this

section.

B. Proof of responsibility shall be a bond of ten

thousand dollars ($10,000) acceptable to the director and

underwritten by a corporate surety authorized to transact

business in New Mexico. Such bond shall meet the following

conditions:

(1) payments from a bond required pursuant

to this section shall only be used to cure code violations

caused by a licensee, certified by the division and not

corrected by the licensee. Claims against the bond shall be

made within two years following final inspection by the

governmental entity having jurisdiction over code enforcement

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or within two years of issuance of a certificate of occupancy

for the construction project, whichever is earlier;

(2) the total aggregate liability of the

surety for all claims shall be limited to the face amount of

the bond;

(3) the bond carrier shall provide to the

division and to the licensee thirty days' prior written notice

of intent to cancel a bond required pursuant to this section.

The surety for such a bond shall remain liable under the

provisions of the bond for all obligations of the principal

pertaining to bond terms that occur before the bond is

canceled, expires or otherwise becomes ineffective;

(4) failure to maintain the bond for the

period required by law is cause for revocation of the license;

and

(5) if the bond is canceled, expires or

otherwise becomes ineffective during the period of a license,

the division shall notify the licensee that a new bond is

required. If the licensee has not provided proof of a new

bond before the fortieth day after the date on which the bond

was canceled, expired or otherwise became ineffective, the

license shall be subject to revocation for failure of proof of

responsibility."

Section 2. EFFECTIVE DATE.--The effective date of the

provisions of this act is July 1, 2009.