HB0594

HOUSE BILL 594

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

David L. Doyle

AN ACT

RELATING TO CONSTRUCTION INDUSTRIES; CHANGING THE ROLE OF THE CONSTRUCTION INDUSTRIES COMMISSION; GRANTING RULEMAKING AUTHORITY TO THE CONSTRUCTION INDUSTRIES DIVISION OF THE REGULATION AND LICENSING DEPARTMENT FOR ITSELF AND ITS BUREAUS; INCREASING QUALIFICATIONS OF THE DIRECTOR; PROVIDING GREATER OVERSIGHT BY THE REGULATION AND LICENSING DEPARTMENT; REPEALING SECTIONS OF LAW THAT EXEMPT THE CONSTRUCTION INDUSTRIES COMMISSION FROM THE AUTHORITY OF THE SUPERINTENDENT OF REGULATION AND LICENSING; INCREASING FEES AND PENALTIES; AMENDING, REPEALING AND ENACTING SECTIONS OF THE NMSA 1978.

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

SECTION 1. Section 9-16-8 NMSA 1978 (being Laws 1983, Chapter 297, Section 24, as amended) is amended to read:

"9-16-8. BUREAUS--CHIEFS.--The superintendent shall establish within each division such "bureaus" as [he] the superintendent deems necessary to carry out the provisions of the Regulation and Licensing Department Act. [He] The superintendent shall appoint a "chief" to be the administrative head of any such bureau. [The positions so appointed may be exempted from the Personnel Act by action of the superintendent, except for the construction industries division trade bureaus created pursuant to Section 60-13-31 NMSA 1978. The chiefs of those bureaus shall be covered positions under the Personnel Act.]"

SECTION 2. Section 22-24-4.1 NMSA 1978 (being Laws 2001, Chapter 338, Section 6, as amended) is amended to read:

"22-24-4.1. OUTSTANDING DEFICIENCIES--ASSESSMENT--CORRECTION.--

A. No later than September 1, 2001, the council shall define and develop guidelines, consistent with the codes adopted by the construction industries [commission] division of the regulation and licensing department pursuant to the Construction Industries Licensing Act, for school districts to use to identify outstanding serious deficiencies in public school buildings and grounds, including buildings and grounds of charter schools, that may adversely affect the health or safety of students and school personnel.

B. A school district shall use these guidelines to complete a self-assessment of the outstanding health or safety deficiencies within the school district and provide cost projections to correct the outstanding deficiencies.

C. The council shall develop a methodology for prioritizing projects that will correct the deficiencies.

D. After a public hearing and to the extent that money is available in the fund for such purposes, the council shall approve allocations from the fund on the established priority basis and, working with the school district and pursuant to the Procurement Code, enter into construction contracts with contractors to correct the deficiencies.

E. In entering into construction contracts to correct deficiencies pursuant to this section, the council shall include such terms and conditions as necessary to ensure that the state money is expended in the most prudent manner possible and consistent with the original purpose.

F. Any deficiency that may adversely affect the health or safety of students or school personnel may be corrected pursuant to this section, regardless of the local effort or percentage of indebtedness of the school district.

G. It is the intent of the legislature that all outstanding deficiencies in public schools and grounds that may adversely affect the health or safety of students and school personnel be identified and awards made pursuant to this section no later than June 30, 2005, and that funds be expended no later than June 30, 2007, provided that the council may extend the expenditure period upon a determination that a project requires the additional time because existing buildings need to be demolished or because of other extenuating circumstances."

SECTION 3. Section 60-13-2 NMSA 1978 (being Laws 1967, Chapter 199, Section 2, as amended) is repealed and a new Section 60-13-2 NMSA 1978 is enacted to read:

"60-13-2. [NEW MATERIAL] DEFINITIONS.--As used in the Construction Industries Licensing Act:

A. "apprentice" means a person who is engaged as the apprentice's principal occupation in learning and assisting in a trade;

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

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

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

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

G. "commission" means the construction industries commission;

H. "department" means the regulation and licensing department;

I. "director" means the director of the division; J. "division" means the construction industries division of the department;

K. "inspection agency" means a firm, partnership, corporation, association or any combination of them approved in accordance with rules as having the personnel and equipment available to adequately inspect for the proper construction of manufactured commercial units, modular homes or premanufactured homes;

L. "journeyman" means a person who is properly certified by the electrical bureau or the mechanical bureau to engage in or work at the journeyman's trade;

M. "jurisdictional conflict" means any 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;

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

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

P. "qualifying party" means a person who submits to the examination for a license to be issued under the Construction Industries Licensing Act and who is responsible for compliance with the requirements of that act and with the rules, codes and standards adopted and promulgated in accordance with that act;

Q. "superintendent" means the superintendent of regulation and licensing;

R. "trade bureau" means the electrical bureau, the mechanical bureau, the general construction bureau or the liquefied petroleum gas bureau of the division; and

S. "wages" means compensation paid to a person by an employer from which taxes are required to be withheld by federal and state law."

SECTION 4. Section 60-13-6 NMSA 1978 (being Laws 1977, Chapter 245, Section 168, as amended) is amended to read:

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

A. [There is created within the division] The "construction industries commission" is created and is administratively attached to the department. 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 member who is a resident of the state, who is not a licensed contractor or certified journeyman and 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] is entitled to 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] chair and vice [chairman] chair 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] chair.

E. The commission shall [establish policy for the division. It shall]:

(1) [advise on, review, coordinate and approve or disapprove all] recommend the adoption of rules, [regulations] standards, codes and licensing requirements [which are subject to the approval of the commission] 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)] (2) 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; and

[(2) define and establish all] (3) recommend license classifications to be adopted by the division. The licensee shall be limited in [his] bidding and contracting as provided in Subsection B of Section 60-13-12 NMSA 1978. [Any] A licensee, subsequent to the issuance of a license, may make application for additional classification and be licensed in more than one classification if [he] the licensee meets the prescribed qualification for the additional classification."

SECTION 5. Section 60-13-7 NMSA 1978 (being Laws 1977, Chapter 245, Section 169, as amended) is amended to read:

"60-13-7. CONSTRUCTION INDUSTRIES DIVISION--DIRECTOR--APPOINTMENT AND QUALIFICATIONS.--The superintendent [of regulation and licensing] shall appoint the director of the division, who shall be a person who meets at least one of the following qualifications:

A. is or has been an active practicing construction contractor for at least [five] ten years;

B. is or has been an employee in an administrative position of a construction company for [at least five of] the past ten years;

C. has been employed by the [construction industries] division for at least five years and is knowledgeable in the administration of the law governing the [construction industries] division; or

D. is or has been actively engaged for [at least five of] the past ten years in an administrative position of an organization [which] that requires that person to have a broad knowledge of the construction industry."

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. adopt rules, standards, codes and licensing requirements, which are subject to approval of the superintendent as provided in Section 9-16-6 NMSA 1978;

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

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

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

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

J. make an annual report to the superintendent of regulation and licensing and]

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

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

L.] J. 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.] K. 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] of a license. Such certified copy shall be prima facie evidence of the facts stated [therein] in the record; and

[N.] L. 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 60-13-10.2 NMSA 1978 (being Laws 2007, Chapter 38, Section 6) is amended to read:

"60-13-10.2. DIVISION [AND COMMISSION]--STANDARDS TO ACCOMMODATE SOLAR COLLECTORS.--As provided in the Solar Collector Standards Act, the division [and commission] shall jointly with the energy, minerals and natural resources department promulgate rules, standards or codes that establish requirements for new construction that will accommodate the installation of solar collectors to or on the new construction after the construction is otherwise complete."

SECTION 8. 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 9. 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 of the commission] the division.

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

SECTION 10. 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] an applicant unless the director is satisfied that the applicant is or has in [his] the applicant's 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] the applicant 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 tax

identification [tax] number;

(7) comply with any additional procedures and rules [and regulations which are established by the commission] relating to issuance of licenses; and

(8) have had four years, within the ten years immediately prior to application, of practical or related trade experience dealing specifically with the type of construction or its equivalent for which the applicant is applying for a license, except that the [commission] division may [by regulation] 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] superintendent, may enter into a reciprocal licensing agreement with any state having equivalent licensing requirements.

D. The [director] division 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] director; 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; 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] the unlicensed contractor without becoming licensed if the claims arise from [his] a first offense and [he] the unlicensed contractor 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] Subsections D [or] and E of this section is twenty-five dollars ($25.00) or less, the fee may be waived.

G. The [director] division 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 11. 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] a person desiring to be a qualifying party until [he] the person 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, 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 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 shall not reapply for a certificate for one year."

SECTION 12. 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 issued by the division are not transferable.

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

D.] C. Licensees and journeyman certificate holders may be required to complete and submit proof of continuing education as a prerequisite for renewal of a license. When required by rule adopted by the division, an applicant for a license renewal [must] shall submit with the application for license renewal proof of eight hours of instruction in code change and eight hours of instruction in other industry-related and division-approved subjects. The sixteen hours of continuing education must have been completed within the three years prior to the date of the license renewal application.

[E.] D. The [director] division 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.

[F.] E. Failure of a licensee to make application for the renewal of the licensee's license, to furnish such other information required by the [commission and] division or 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.

[G.] 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."

SECTION 13. 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. A person shall not engage in the occupation or trade of journeyman unless [he] the person holds a certificate of competence issued by the division for the occupation or trade in which [he] the person desires to engage.

B. The categories for certificates of competence are: journeyman electrician, journeyman plumber, journeyman gas fitter, journeyman pipe fitter, journeyman sheet metal worker, journeyman boiler operator, residential wireman and journeyman welder working on pipelines, collection lines or compressor stations.

C. An applicant for a certificate of competence shall be required to take an examination approved and adopted by the division as to [his] knowledge of the orders and rules governing the occupation or trade for which a certificate is sought, and as to [his] technical knowledge and ability pertaining to [his] the particular trade. The examination may be oral, written or demonstrative or any combination thereof, as required by rules of the [commission] division.

D. 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 public regulation commission.

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

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

G. A person is not eligible to take an examination for a certificate of competence unless [he] the person 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 instructional support and vocational education division of the [state department of] public education department.

H. Employment of an apprentice working under the direct supervision of a certified journeyman is not prohibited by the Construction Industries Licensing Act.

I. A person is eligible to take an examination for a journeyman electrician certificate of competence after at least:

(1) four years of accredited training in the electrical trade;

(2) four years of apprenticeship in the electrical trade;

(3) four years of practical experience in the electrical trade, of which two years are in the commercial trade, industrial trade or the equivalent as determined by the [commission] division; or

(4) successfully completing an electrical trade program approved by the instructional support and vocational education division of the [state department of] public education department and two years of practical experience in the commercial electrical trade.

J. Continuing education requirements for a journeyman electrician shall include at least sixteen hours of continuing education in every three-year period between national electrical code updates, of which eight hours are code change instructions and eight hours are other industry-related instruction. All continuing education curricula and instructors shall be approved by the [commission] division based on recommendations by the electrical bureau.

K. A certificate of competence shall not be renewed until a complete application for renewal has been received by the division. Proof of completion of the continuing education requirements shall be submitted to the division with the application for renewal of certificate of competence. An application for renewal that is not accompanied by proof of completion of the continuing education requirements is incomplete and shall not be processed. The continuing education requirements in this subsection shall only apply to a journeyman electrician with the designation "EE-98J" or "JE98"; this subsection does not apply to EE98.

L. A person is eligible to take an examination for a residential wireman's certificate of competence after at least:

(1) two years of accredited training or apprenticeship in the electrical trade;

(2) two years of practical experience in wiring residential dwellings; or

(3) successfully completing a course in the trade approved by the instructional support and vocational education division of the [state department of] public education department and one year of practical experience in wiring residential dwellings.

M. The provisions of Subsections I and L of this section do not apply to a person who was enrolled as a full-time student before June 20, 2003 in an electrical trade program approved by the instructional support and vocational education division of the [state department of] public education department."

SECTION 14. 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 division on recommendation of the commission.

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] on recommendation of the commission, establish qualifications for inspectors certified to inspect in more than one bureau's jurisdiction."

SECTION 15. 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] the person has first secured approval from the division of [his] the person's competence as an inspector.

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

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

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 16. 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 an electrical code for safety to life and property promulgated by a nationally recognized association and developed through an open, balanced consensus process.

B. The mechanical bureau shall recommend to the [commission] 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 codes and standards that are developed through an open, balanced consensus process. Manufacturers may choose the independent certification organization they wish to certify their products if the certification organization is accredited by the American national standards institute or other accreditation organization selected by the [commission] 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 developed through an open, balanced consensus process and shall give due regard to physical, climatic and other conditions peculiar to New Mexico. The standards shall include the authority to permit or deny occupancy of existing and new buildings or structures and authority to accept or deny the use of materials manufactured within or without the state. The general construction bureau may set minimum fees or charges for conducting tests to verify claims or specifications of manufacturers.

D. The general construction bureau shall recommend to the [commission] 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 persons who have a physical disability, and the specifications shall conform substantially with those contained in a nationally recognized standard for making public facilities accessible to persons with a physical disability that is developed through an open, balanced consensus process. All orders and rules recommended by the general construction bureau and adopted by the [commission] division under the provisions of this section shall be printed and distributed to all licensed contractors, architects and engineers and to the governor's commission on disability. The orders and rules shall take effect on a date fixed by the [commission] 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 that are developed through an open, balanced consensus process for the installation or use of electrical wiring, the installation of all fixtures, consumers' gas pipe, appliances and materials installed in the course of mechanical installation and the construction, alteration or repair of all buildings intended for use by persons with a physical disability or persons requiring special facilities to accommodate the aged. The recommendations shall give due regard to physical, climatic and other conditions peculiar to New Mexico.

H. The trade bureaus within their respective jurisdictions shall recommend to the [commission] 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 and developed through an open, balanced consensus process and shall give due regard to physical, climatic and other conditions peculiar to New Mexico. Wherever existing state codes or standards conflict with the codes and standards adopted by the [commission] division under the provisions of this subsection, the provisions of the applicable New Mexico building codes adopted pursuant to the Construction Industries Licensing Act and the LPG and CNG Act in effect at the applicable time shall exclusively apply and control, except for codes and standards for mobile housing units.

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

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

SECTION 17. 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 construction, installation, alteration, repair or addition to or within any building, structure or premises.

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

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

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

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

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

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

D. The [commission] 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. Pursuant to division rule, each trade bureau [by regulation] may require a reasonable bond or surety in the penal sum of [five hundred dollars ($500)] two thousand five hundred dollars ($2,500) or more, but not to exceed [fifteen hundred dollars ($1,500)] five thousand dollars ($5,000), 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 18. 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 19. 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 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 20. Section 70-5-1 NMSA 1978 (being Laws 1947, Chapter 214, Section 1, as amended) is repealed and a new Section 70-5-1 NMSA 1978 is enacted to read:

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

A. "bureau" means the liquefied petroleum gas bureau of the division;

B. "commission" means the construction industries commission;

C. "compressed natural gases" and "CNG" means mixtures of hydrocarbon gases and vapors consisting principally of methane in gaseous form, which has been compressed for vehicular fuel;

D. "department" means the regulation and licensing department;

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

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

G. "liquefied petroleum gases", "LPG" and "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;

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

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

SECTION 21. 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 22. 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 23. 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. On recommendation of the commission, the division may adopt and promulgate rules [and regulations] as [are] necessary to carry out the [purpose] provisions of the LPG and CNG Act and for the public peace, health and safety as affected by the use of such materials. The [regulations] rules made 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] division may adopt a schedule of reasonable fees to be charged by the bureau 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 24. 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 25. 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] the trainee may retake it after additional instruction.

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

SECTION 26. Section 70-5-9 NMSA 1978 (being Laws 1970, Chapter 65, Section 2, as amended) is amended to read:

"70-5-9. ANNUAL LICENSE FEES--INSPECTION FEES.--

A. For the purpose of defraying the expenses of administering the laws relating to the use of CNG in motor vehicles or the LP gas industry, each person, firm or corporation, at the time of application for a license and annually thereafter on or before December 31 of each calendar year, shall pay to the bureau reasonable license fees as set, classified and defined by the [bureau] division for each operating location; provided that the total annual fees charged any one licensee for a combination of LP gas activities at one location and subject to licensure under this section shall not exceed three hundred fifty dollars ($350), and the fee charged for any single activity or operation as set, classified and defined by the bureau shall not exceed one hundred fifty dollars ($150).

B. Nothing in the LPG and CNG Act is intended to alter the jurisdiction of the [state corporation commission pipeline safety department] public regulation commission.

C. In addition, there shall be paid a reasonable fee for the safety inspection, made by a representative of the bureau, of each LP gas bulk storage plant and LP gas liquid transfer facility and of the LP gas equipment on each vehicular unit used for transportation of LP gas in bulk quantities. The fee shall be set by the [bureau] division and shall not be assessed more frequently than once in each twelve months. The bureau may also charge a reasonable fee for late payment of any fees as set by the division.

D. No annual license fee fixed by the [bureau] division as provided in this section shall become effective until after notice to each licensee has been made and hearing held on the proposed annual license fees in the manner provided by Section 70-5-14 NMSA 1978. At the conclusion of any hearing, the [bureau] division shall enter its findings and decision in writing as a [regulation] rule, and the [regulation] rule shall be filed as provided by the State Rules Act."

SECTION 27. Section 70-5-10 NMSA 1978 (being Laws 1947, Chapter 214, Section 9, as amended) is amended to read:

"70-5-10. REVENUE--SUSPENSE FUND.--All fees and money collected under the provisions of the LPG and CNG Act shall be remitted by the bureau to the [director of the division] department to be deposited in the general fund of the state. The [bureau] department may maintain a "special suspense fund" with the division in an amount of one thousand dollars ($1,000) [budgeted by the bureau for the purpose of making] to make any necessary refunds. The bureau shall, with the advice and consent of the director of the division, employ inspectors, assistants and other necessary help as may be required to carry out its lawful duties."

SECTION 28. 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 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 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 adopted pursuant to the LPG and CNG Act or that any licensee has demonstrated that [he] the licensee is incompetent or lacks knowledge in matters relevant to a license to such an extent that, in the judgment of the [bureau] commission, it would endanger the public safety to allow the licensee to continue to engage in LP gas or CNG activities or operations."

SECTION 29. 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 person or party affected, the bureau may, if it finds probable cause for such complaint, request the commission 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 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 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 request the commission to hold such hearings as [it] the bureau deems necessary. The [bureau] commission 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 30. 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 OR 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] requiring compliance, with the laws relating to LP gases or CNG or any order of the bureau or rule [or regulation] of the division for the bureau [or commission] shall subject the person or the officers of the corporation to a civil penalty of [one hundred dollars ($100)] five hundred dollars ($500) 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 31. 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] 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 32. 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] 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] as provided in Section 31-19-1 NMSA 1978."

SECTION 33. Section 70-5-22 NMSA 1978 (being Laws 1973, Chapter 362, Section 22, as amended) is amended to read:

"70-5-22. ADMINISTRATIVE PENALTY ASSESSMENTS.--The bureau may charge an administrative penalty for any violation of the LPG and CNG Act or the rules [regulations, codes] adopted pursuant to that act or of the orders of the bureau."

SECTION 34. Section 71-6-7.1 NMSA 1978 (being Laws 2007, Chapter 38, Section 5) is amended to read:

"71-6-7.1. CONSTRUCTION STANDARDS TO ACCOMMODATE SOLAR COLLECTORS--RULEMAKING.--The department and the construction industries division of the regulation and licensing department [and the construction industries commission] shall jointly promulgate rules, standards or codes that establish requirements for new construction that will accommodate the installation of solar collectors to or on the new construction after that construction is otherwise complete, including roof orientation, roof strength, location of obstructions to sunlight, access to installation locations, built-in conduit, wiring and piping and brackets for attaching solar collectors."

SECTION 35. TEMPORARY PROVISION--RULES.--Rules of the construction industries commission shall be deemed to be rules of the construction industries division of the regulation and licensing department until amended or repealed by the division.

SECTION 36. REPEAL.--Sections 9-16-12, 60-13-1.1 and 60-13-15 NMSA 1978 (being Laws 1983, Chapter 297, Section 28, Laws 1967, Chapter 199, Section 4 and Laws 1977, Chapter 245, Section 177, as amended) are repealed.

SECTION 37. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2011.

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