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Committee Substitute House Bill 4690 History

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COMMITTEE SUBSTITUTE

FOR


H. B. 4690


(By Delegates Sobonya, Lane, Stephens,

Reynolds and Cowles)

(Originating in the Committee on the Judiciary)


[February 24, 2008]


A BILL to amend and reenact §21-11-10 of the Code of West Virginia, 1931, as amended, relating to disclosure by a contractor of a customer's option to acquire insurance covering the contractor's performance.

Be it enacted by the Legislature of West Virginia:
That §21-11-10 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:
ARTICLE 11. WEST VIRGINIA CONTRACTOR LICENSING ACT.

§21-11-10. Prerequisites to obtaining building permit; mandatory written contracts.

(a) Any person making application to the building inspector or other authority of any incorporated municipality or other political subdivision in this state charged with the duty of issuing building or other permits for the construction of any building, highway, sewer or structure or for any removal of materials or earth, grading or improvement, shall, before issuance of the permit, either furnish satisfactory proof to the inspector or authority that such person is duly licensed under the provisions of this article to carry out or superintend the same, or file a written affidavit that such person is not subject to licensure as a contractor or subcontractor as defined in this article. The inspector or authority may not issue a building permit to any person who does not possess a valid contractor's license when required by this article.
(b) Effective the first day of October, two thousand two, no No person licensed under the provisions of this article may perform contracting work of an aggregate value of ten thousand dollars or more, including materials and labor, without a written contract, setting forth a description and cost of the work to be performed, signed by the licensee and the person for whom the work is to be performed, and setting forth a separate disclosure section to be signed by the person for whom the work is to be performed. The disclosure section shall contain a statement informing the person for whom the work is to be performed that they have the option to hire at their own expense an independent contractor, engineer or similar expert in home construction to periodically inspect the progress of the construction or to purchase an insurance policy or performance bond covering the contractor's performance.
(c) On or before the first day of June, two thousand two eight, the board shall file a procedural rule setting forth a standard contract form which meets the minimum requirements of this subsection for use by licensees. The board shall post the contract form on its website and shall assist licensees in the correct completion of the form. On or before the first day of August, two thousand two eight, the board shall mail a written notice of the requirements imposed by the rule to each licensed contractor at the address provided to the board by the contractor on his or her last application for licensure or renewal.
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