ORDINANCE NO.          7870                

AN ORDINANCE OF THE CITY OF LAWRENCE, KANSAS CONCERNING CONTRACTORS, PROVIDING FOR THE LICENSING AND REGULATION THEREOF; ENACTING ARTICLE 5, ARTICLE 12 OF THE CODE OF THE CITY OF LAWRENCE, KANSAS, 2003 EDITION AND AMENDMENTS THERETO

BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF LAWRENCE, KANSAS:

Section 1.        Article 5, Article 12 of the Code of the City of Lawrence, Kansas, 2003 Edition and amendments thereto, is hereby enacted to read as follows:

5-1201              PURPOSE.

              The purpose of this Article is to ensure that all persons desiring to perform contracting work in this city be duly licensed to ensure capable and skilled craftsmanship utilized in construction projects, both public and private, through uniform compliance with the laws of this city, and protection of the public from unsafe construction practices.  It is further the intent that owner-occupants of single-family residential structures be permitted, without first obtaining a contractor’s license, to perform minor work on such homeowner’s residences.

5-1202 DEFINITIONS.

                        Agent  is an individual that has the authority to act on behalf of another.

Building Official is the officer or other designated authority charged with the                                             administration and enforcement of this code, or the building official's duly                                        authorized representative.

                        Building is any structure used or intended for supporting or sheltering any use                                                       or occupancy

                        Contractor, within the meaning of this Article is any person, which also means                                                    and includes a firm, co-partnership, corporation, association, or other                                                                     organization, or any combination thereof, who: (1) Undertakes, with or for another                                          within the city, to build, construct, alter, remodel, repair, or demolish any                                                                 building or structure, or any portion thereof, for which a permit from the city is                                                            required, and which work is to be done for a fixed sum price, fee percentage, or                                                      other compensation; (2) Builds, constructs, alters, or adds to another building or                                                         structure either upon his or her own or another's property;  to include every i)                                              general contractor, building contractor, residential contractor, concrete contractor                                     and framing contractor.  Unless provided otherwise by this Article, only a                                                                  contractor licensed under the provisions of this Article may obtain a building                                                   permit.

Contractor, Specialty is a contractor whose operations as such are the performance of   construction work requiring special skill and whose principal contracting business involves the use of specialized building trades or crafts.

Contractor Licensing Board (CLB) is a board, established pursuant to Chapter 5, Article 13 adopted in Ordinance No. 7871, the function of the Board which is to hear all contested matters pertaining to the   suspension, revocation, and reinstatement of licenses.  

                        Co-partner is a joint partner, as in a business enterprise; an associate.

                        Designated representative is an individual that may obtain a license on behalf     of a firm and will be the qualifying party of the firm if the individual meets the minimum requirements defined herein.

                        Experience is awarded to individuals that have worked within the specific                                      license category for the requisite time period.  Individuals must be experienced                                          workers fully qualified and able to perform the trade without supervision.  All                                      experience claims must be verifiable by a qualified and responsible person, such                                                as a contractor, a building official, an architect or an engineer.

Qualifying Party is the individual who meets the experience and examination        requirements for a license.  Every license must have a qualifying party.

Structure is that which is built or constructed, an edifice or building of any kind, or any piece of work artificially built up or composed of parts joined together in some definite manner.

5-1203              LICENSE REQUIRED. 

No building permit shall be issued to any contractor who has not first obtained a license or who is delinquent in payment of his annual license fee, or whose license has been suspended or revoked by action of the Contractor Licensing Board. It is further unlawful for any person to enter into a contract with another so as to bring himself under the classification of a contractor as defined in this Article, or to perform any work as a contractor, or any work under a contract, without having first obtained a contractor's license. It is unlawful for any person issued a license as required by this Article to contract for any work other than specified by such license.

5-1204               EXCLUSIONS.

It is the intent of this Article that the contractor that obtains a building permit shall be responsible, within the scope of such permit, for the completion of the construction, alteration, repair, or demolition in accordance with all applicable building codes.  However, the following persons are not “contractors” within the meaning of this Article.

a. An employee or agent working for and under the supervision of a contractor licensed under this Article for the type of construction, alteration, repair or demolition being undertaken; and

b. A homeowner who personally occupies or will occupy and undertakes the construction, alteration, repair, or maintenance of such homeowner’s single-family residence or an accessory structure thereto.  Notwithstanding the foregoing, for purposes of this section, any homeowner who undertakes the construction of a new residence for such homeowner’s personal occupancy more than two times in any five year period shall be deemed to be a “contractor” under this Article.

5-1205              CONTRACTOR RESPONSIBLE FOR ALL WORK.

                        Upon issuance of a building permit to a contractor, such contractor shall be responsible for all work undertaken pursuant to such building permit, including work done by the contractor’s employees, agents, and subcontractors.

5-1206              CONTRACTOR INSURANCE. 

Every contractor except a contractor who has an “inactive license” shall keep in force a policy of general liability insurance including completed operations coverage. 

Class A, B, and C contractors. Every building contractor shall keep in force a policy of commercial general liability insurance including completed operations/products coverage.  Such insurance policy shall be written with an insurance company licensed as an admitted insurance company in the State of Kansas.  The contractor shall maintain general liability coverage in an amount not less than $1,000,000 per occurrence single limit for bodily injury and property damage.  At the time of licensing, the contractor shall provide the City of Lawrence Neighborhood Resources Department with an original certificate of insurance verifying the insurance coverage required under this section. The City of Lawrence shall be added as a “Certificate Holder” to the insurance policy by the insurance company issuing the certificate of insurance, requiring the insurance company to notify the City of Lawrence Neighborhood Resources Department in writing of any change in coverage or cancellation of such policy at least ten (10) days prior to such changes.  In addition, every contractor shall procure and maintain workers’ compensation insurance, as required by law. 

Class D contractors.  Every contractor shall keep in force a policy of commercial general liability insurance including completed operations/products coverage.  Such insurance policy shall be written with an insurance company licensed as an admitted insurance company in the State of Kansas.  The contractor shall maintain general liability coverage in an amount not less than $500,000 per occurrence single limit for bodily injury and property damage.  At the time of licensing, the contractor shall provide the City of Lawrence Neighborhood Resources Department with an original certificate of insurance verifying the insurance coverage required under this section.  The City of Lawrence shall be added as a “Certificate Holder” to the insurance policy by the insurance company issuing the certificate of insurance, requiring the insurance company to notify the City of Lawrence Neighborhood Resources Department in writing of any changes in coverage or canceling of such policy at least ten (10) days prior to such changes.  In addition, every contractor shall procure and maintain workers’ compensation insurance, as required by law. 

A contractor, at the time of licensing under this Article, shall provide the City of Lawrence Codes Enforcement Division with a certificate of insurance or other satisfactory evidence of the insurance coverage.

5-1207              CONTRACTOR LICENSES AUTHORIZED. 

There shall be four (4) separate classes of licenses authorized for contractors as provided in this Article.

5-1208              CLASS A, GENERAL CONTRACTOR (Requires 6 yrs. experience).

                        A Class A License shall entitle the holder thereof to construct, remodel, repair,                                           demolish any structure and perform work described as Class D, Building                                                    Specialties.  The annual Class A License fee shall be $200. Qualifying parties                                       who hold a Class B, Building Contractor license and have at least ten (10) years of                                experience working as a Building Contractor shall be eligible for examination                                       for certification as a Class A, General Contractor.

5-1209              CLASS B, BUILDING CONTRACTOR (Requires 4 yrs. Experience). 

                        A Class B License shall entitle the holder thereof to construct, remodel, repair,                                           demolish all structures not exceeding three stories in height and perform work                                            described as Class D, Building Specialties.  A Class B License shall also entitle                                                the license holder to perform non-structural remodeling, tenant-finish, and repairs                                  of all structures.  The annual Class B License fee shall be $200.  Qualifying                                           parties who hold a Class C, Residential Contractor license and have at least six (6)                                years of experience working as a Residential Contractor shall be eligible for                                                examination for certification as a Class B, Building Contractor.

5-1210             CLASS C, RESIDENTIAL CONTRACTOR (Requires 2 yrs. Experience). 

                        A Class C License shall entitle the holder thereof to construct, remodel, repair,                                           and demolish single family or duplex residences, buildings accessory thereto and                                 perform work described as Class D, Building Specialties.  The annual Class C                                               License fee shall be $200.  Qualifying parties who hold a Class D,

                        Building Specialty Contractor license and have at least four (4) years of experience                                     working as a Building Specialty Contractor shall be eligible for examination for                                            certification as a Class C, Residential Contractor.

5-1211              CLASS D, BUILDING SPECIALTY CONTRACTOR.  FRAMING AND CONCRETE (requires 2 yrs. experience).

The annual Class D License fee shall be $200.00. A Class D License shall entitle the holder thereof to perform services as described below:

FRAMING CONTRACTOR.   A Class D License shall entitle the holder thereof to perform such work for the framing of a structure or building, including bearing and non-bearing walls, and including any repair to any of the above.

CONCRETE CONTRACTOR. A Class D License shall entitle the holder thereof to perform  general concrete work to include the placing and erecting of steel or bars for the reinforcing of mass, pavement, flat and other concrete work.

5-1212              APPLICATION FORM.

The City of Lawrence Codes Enforcement Division shall receive and process contractor license applications.  License fees shall be paid without proration.  No contractor license may be transferred or assigned. 

5-1213              RENEWAL OR REINSTATEMENT OF LICENSE.

a.  Every contractor license shall be issued on a calendar year basis to expire on December 31^st of each year.  A contractor shall be entitled to renew such contractor’s license upon satisfaction of the requirements of this Article.  A license renewal application may be submitted to the City of Lawrence Codes Enforcement Division beginning on December first through and including the last day of January without a late fee.  Thereafter, a $75 late fee shall be collected to off set administrative costs incurred as a result of such later renewal.  Unless an expired license is renewed within one year of its expiration, the contractor shall be required to make a new application and satisfy all the then-existing contractor licensing requirements.  License renewal applications shall be mailed by the City of Lawrence Codes Enforcement Division no later than November first of each year to every licensed contractor at the address provided by the contractor.  The failure to receive an application shall not excuse untimely license renewal.

b.  During the annual renewal period, a licensed contractor that has completed the annual requirement for continuing education may, upon the payment of a fee sufficient to cover the expense of the annual continuing education, have the contractor’s license declared inactive.  No building permit shall be issued to a contractor with an inactive license.  The holder of an inactive license may annually renew the inactive license upon the completion of all continuing education requirements and the payment of the annual renewal fee.  The holder of an inactive license may obtain an active contractor’s license at any time upon the payment of the required license fee.

c.  Any contractor whose license is suspended for any Code-related violation must provide satisfactory evidence to the Contractor Licensing Board (“CLB”) that the violation has been corrected in accordance with the applicable Code.  Failure to provide such evidence may result in the revocation of the contractor’s license.

d.  When a contractor’s license is revoked, a new license shall not be granted until the contractor has first passed an examination as required by Chapter 5, Article 12, Section 1215, and has provided the CLB with satisfactory evidence that a new license should be issued.  If the contractor’s license was revoked as the result of a Code-related violation, such contractor may not be re-licensed unless the CLB determines that the violation has been corrected.

e. Any contractor with delinquent fees shall make full payment to the City of Lawrence prior to the issuance or renewal of a contractor license.

5-1214              EXAMINATIONS, LICENSE APPROVAL, AND ISSUANCE. 

Contractor applicants shall be licensed by satisfying one or more of the following provisions (a-d)

a. Obtain a certificate of competence from a nationally-recognized testing institution as contemplated by K.S.A. 12-1556 (building and residential contractors); or

b. Until 12/31/06, a license may be obtained upon verification that a person provide verifiable evidence that the applicant or a firm’s designated representative has the required number of years of full-time experience in the building construction industry for that license:

i. Class A License – 15 years or more experience

ii. Class B License – 10 years or more experience;

iii. Class C License – 5 years or more experience;

iv. Class D License – 5 years or more experience.

c. Hold a bachelor’s degree in engineering, architecture, or construction science from an accredited college or university;

d. The holder of Hold a provisional license (General, Building and Residential contractor only) may obtain a regular license upon the completion of and complete not less than 32 hours of codes-related education prior to the expiration of such provisional license.

e. Reciprocity. To the extent that other jurisdictions or states which provide for the licensing of general contractors provide for similar action, the Neighborhood Resources Department Director may grant licenses of the same or equivalent classification to general contractors licensed by other municipalities or states, without written examination, upon satisfactory proof furnished to the director that the qualifications of such applicants are equal to the qualifications of holders of similar licenses in the City of Lawrence and upon payment of the required fee.

f. The contractor-applicant shall disclose, at the time of application, any current or previous contractor license held in Kansas or any other state and any disciplinary actions taken against such contractor-applicant.  If the contractor-applicant is employed by or a principal of a firm, the application shall disclose whether the firm or the firm’s employees or principals have had any contractor-related disciplinary action taken against them in Kansas or any other state.  No license shall be issued to any contractor-applicant who has had a license suspended or revoked for disciplinary reasons, or who has surrendered a license during any disciplinary proceeding or investigation, within the immediately preceding five years.  Any contractor-applicant denied a license under the provisions of this section may appeal such denial to the CLB.

5-1215              PROVISIONAL LICENSE.

Until 07/01/06, any person or firm that has obtained a building permit during 2004 may obtain a provisional contractor’s license if all of the following conditions are met:

a. At the time of the license application, the applicant, if an individual, or the designated representative, if a firm, is working full-time in the construction industry for the license Class requested; and

b. The applicant for a Class A license shall have not less than 7 years of full-time experience in planning, supervising, and undertaking Class A type construction;

c. The applicant for a Class B license shall have not less than 5 years of full-time experience in planning, supervising, and undertaking Class B type construction;

d. The applicant for a Class C license shall have not less than 3 years of full-time experience in planning, supervising, and undertaking Class C type construction;

e. The applicant provides evidence of insurance coverage as required by Chapter 5, Article 12, Section 1206; and

f. All application and license fees are paid.

g. For purposes of this section, 24 credit hours of post-secondary education in the courses of engineering, architecture, or building trades shall be deemed equivalent to one year of full-time experience.  “Full-time” means a minimum of thirty hours a week carrying out the work of a contractor.

5-1216              RENEWAL OF PROVISIONAL LICENSE.

The holder of a provisional license may renew the provisional license for an additional 365 days following its expiration.  Upon the expiration of a provisional license, a contractor licensed under the provisional licensing provisions of this Article shall be required to satisfy the licensing requirements of  Section 5-1214, Examinations, license approval, and issuance. 

5-1217              FIRMS/QUALIFYING PARTY.

Under this Article, a firm may obtain, in the firm’s name, a contractor’s license provided that such firm has at least one full-time employee who is designated by the firm as its qualifying party.  The qualifying party must spend a minimum of thirty hours a week carrying out the work of the firm.  Whenever a building permit is issued in the name of a firm, the firm shall be subject to these regulations and the jurisdiction of the CLB.  The qualifying party shall be the legal representative for the contractor relative to the provisions of this Article. The designated qualifying party shall satisfy the requirements this Article.  A designated qualifying party shall not be a qualifying party for more than one company, unless the companies have a common owner. When the qualifying party terminates employment with the licensee, the Codes Enforcement Division shall be notified in writing within thirty days of the disassociation and another qualifying party must qualify within sixty days. The qualifying party or parties are:

a. Any individual contractor or copartner.

b. Any employee of said applicant shall not be allowed to be the qualifying party for more than one company. Any employee of the contractor, applicant so long as said employee spends a minimum of thirty (30) hours a week carrying out the work of the firm.

c.  Any stockholder of a corporation who was an original incorporator or original stockholder as shown in the articles of incorporation.

A contractor, including firms, may appoint, on forms provided by the City of Lawrence Codes Enforcement Division, one or more individuals who shall be authorized to obtain building permits on behalf of the contractor.  Such individuals are not required to be a licensed contractor.

5-1218              CONTINUING EDUCATION. 

The Contractor Licensing Board Neighborhood Resources Department may establish continuing education requirements, rules, and regulations for contractors licensed under this Article.  Every qualifying party shall complete at least (eight) 8 hours of continuing education as required by the CLB each calendar year.  The CLB shall provide for the recognition of codes-related education provided by governmental entities, trade associations, contractor education providers, and others for courses and instruction directly related to those codes adopted within Lawrence, Kansas. The Neighborhood Resources Department shall identify courses and education programs provided by governmental entities, trade associations, contractor education providers, and others on the codes adopted by the City of Lawrence which satisfy the continuing education requirements of this Section.

5-1219              CONTRACTOR DISCIPLINE.

The CLB shall have the authority to admonish, reprimand, and otherwise discipline any contractor subject to the requirements of this Article including the suspension or revocation of the contractor’s license issued under the provisions of this Article in accordance with the procedures set forth in Chapter 5, Article 13 as adopted in Ordinance No. 7871.  Before a contractor is disciplined, a hearing shall be held following not less than ten days notice to the affected contractor. The CLB may suspend or revoke a contractor’s license if the CLB concludes, following a hearing, that the contractor’s action or inaction is:

a.  A serious or repeated violation of the provisions of this Article, any applicable Code, or the failure to comply within a reasonable time to any lawful written order of a building code official;

b.  A knowing and intentional misrepresentation of a material fact made in  connection with obtaining a contractor’s license or a building permit;

c.  A fraudulent or deceitful use of a contractor’s license to obtain a building permit;

d.  A failure to obtain a building permit or to obtain a required inspection of an ongoing project as required by any applicable Code;

e.  A failure to exercise regular, routine control and supervision over an on-going project for which the contractor has obtained a building permit;

f.  A failure to timely obtain a certificate of occupancy or Required Final Inspection for a completed structure as required by the applicable building safety code.

g.  A failure to hire a licensed Building Speciality, electrical, plumbing, or HVAC contractor to supervise any electrical, plumbing, or HVAC or specialty work on the job site for which the contractor obtained a building permit; or

h.  A failure to pay the any required application or licensing fees for a building permit, contractor license, or inspection fee.

i. A violation of any one or more of the above items.

5-1220             BOARD ACTION.

Upon finding by a majority of the members present at the hearing that a contractor has violated one or more of the provisions of Article 5, Article 12, Section 1219, the CLB may admonish, reprimand, or take other appropriate disciplinary action against such contractor including, but not limited to:

a.  Suspension of the contractor’s license for a fixed period not to exceed ninety days.

b.  Suspension of the contractor’s license for a fixed period exceeding 90 days, provided, however, the contractor shall have the right to have the suspension and the terms thereof reconsidered by the CLB at the expiration of the first 90- days and every 90 days thereafter to determine if just cause exists to modify or terminate the suspension.  Such reconsideration may, at the Board’s option, include a hearing.

c.  Revocation of the contractor’s license for a period not less than 12 months from the date of revocation.  A contractor’s license shall be revoked if the contractor has been suspended two times during any 36 month period.

Any decision of the CLB shall be made in writing and mailed to the contractor.  A contractor whose license is the subject of a CLB action may appeal any decision of the CLB to the Lawrence City Commission by filing a notice of appeal with the CLB within 30 days following the third day after the Contractor Licensing Board’s written decision was mailed to the contractor as evidenced by a certificate of mailing which shall be included with the decision.  When an appeal is filed, the secretary of the CLB shall forward the appeal and the CLB decision to the Lawrence City Commission together with the CLB record.  Appeals to the City Commission shall be de novo and no action shall be taken by the CLB during a pending appeal.

5-1221              SAFE HARBOR PROVISIONS.

                        A contractor shall not be found in violation of this Article, nor disciplined by the CLB for a violation of an applicable building safety code provision if the contractor performs the work in accordance with and reliance upon duly certified plans and specifications prepared or approved by an architect or engineer licensed in Kansas without knowledge by the contractor that such plans and specifications, or pertinent parts thereof, are in violation of applicable codes.

5-1222              HEARINGS.

 All contested matters pertaining to the suspension or revocation of licenses shall be heard by the CLB.

5-1223              RULES AND REGULATIONS.

                       The CLB may adopt rules, regulations, and procedures consistent with the provisions of this Article and Chapter 5, Article 13, as adopted in Ordinance No. 7871.

5-1224             CONTRACTOR LICENSING REGULATIONS.

This Article may be referred to as the “Contractor Licensing Regulations.”

Section 2.        Chapter 5, Article 12 of the Code of the City of Lawrence, Kansas, 2003 Edition, and amendments thereto is hereby enacted.

Section 3.        This ordinance shall be effective as of the 1^st day of July, 2005.

PASSED by the Governing Body this  day of , 2005.

                                                                        Mike Rundle, Mayor

ATTEST:          

Frank S. Reeb, City Clerk

Approved as to form and legality:

David L. Corliss, Assistant City Manager and

   Director of Legal Services