GENERAL ASSEMBLY OF NORTH CAROLINA
1995 SESSION
CHAPTER 114
AN ACT TO MAKE VARIOUS AMENDMENTS TO THE LAW REGARDING THE LICENSING OF ELECTRICAL CONTRACTORS.
The General Assembly of North Carolina enacts:
Section 1. G.S. 87-39 reads as rewritten:
"§ 87-39.
Board of Examiners; appointment; terms; chairman; chair; meetings;
quorum; principal office; compensation; oath.
(a) The State
Board of Examiners of Electrical Contractors shall continue as the State agency
responsible for the licensing of persons engaging in electrical contracting
within this State, and shall consist of one member from the North Carolina
Department of Insurance to be designated by the Commissioner of Insurance; one
member who has satisfied the requirements for an unlimited license as defined
in G.S. 87-43.3 and who is a representative of the North Carolina Association
of Electrical Contractors to be designated by the governing body of that organization;
and five members to be appointed by the Governor: one from the faculty of The
Greater University of North Carolina who teaches or does research in the field
of electrical engineering, one who is serving as a chief electrical inspector
of a municipality or county in North Carolina, one who has satisfied the
requirements for an unlimited license as defined in G.S. 87-43.3 and who is a
representative of the Carolinas Electrical Contractors Association operating a
sole proprietorship, partnership or corporation located in North Carolina which
is actively engaged in the business of electrical contracting, and two who have
no ties with the construction industry and who represent the interest of the
public at large. The terms of all members shall be seven years and
until their successors are designated or appointed and are qualified. A
vacancy occurring during a term shall be filled for the remainder of the
unexpired term by the authority which designated or appointed the member to the
seat being vacated. All members shall be citizens of North Carolina and
reside in North Carolina during their tenure on the Board. No member
shall serve two complete consecutive terms.
(b) Members of the Board shall serve staggered seven-year terms. Each member shall serve until his or her successor is designated or appointed, and is duly qualified. Vacancies occurring during a term shall be filled for the remainder of that term by the authority that designated or appointed the departing member.
(c) Members of the Board shall not serve consecutive, complete terms. For purposes of this subsection, only a term of less than seven years that results from the filling of a vacancy is an incomplete term; a term of less than seven years that results from the successor's late designation or appointment is not an incomplete term.
(d) All members shall be residents of North Carolina during their tenure on the Board. Any member of the Board may be removed by the authority that designated or appointed that member for misconduct, incompetency, or neglect of duty.
(e) The Board
shall hold regular meetings quarterly and may hold meetings on call of the chairman.
chair. The chairman chair shall be required to
call a special meeting upon written request by two members of the Board. The
Board shall, at the first meeting following appointment of the new member in
each year, meet and elect from its membership a chairman and vice-chairman,
each to serve for one year. At its regular first quarter meeting,
the Board shall elect from its membership a chair and a vice-chair, each to
serve for one year. Four members of the Board shall constitute a
quorum. The principal office of the Board shall be at such place as shall be
designated by a majority of the members thereof. Payment of compensation and
reimbursement of expenses of Board members shall be governed by G.S. 93B-5.
(f) Before
entering upon the performance of his or her duties hereunder, each
member of the Board shall take and file with the Secretary of State an oath in
writing to properly perform the duties of his or her office as a member
of said the Board, and to uphold the Constitution of North
Carolina and the Constitution of the United States."
Sec. 2. G.S. 87-40 reads as rewritten:
"§ 87-40. Secretary-treasurer.
The State Board of Examiners of Electrical Contractors
shall at its first meeting following appointment of the new member in each year
appoint a secretary-treasurer for a period of one year. At its
regular first quarter meeting, the Board shall appoint a secretary-treasurer to
serve for one year. The secretary-treasurer need not be a member of
the Board, and the Board is authorized to employ a full-time
secretary-treasurer and such other assistants and to make such other
expenditures as may be necessary to the proper performance of the duties of the
Board under this Article. The compensation and the duties of the
secretary-treasurer shall be fixed by the Board, and the secretary-treasurer
shall give bond in such sum and form as the Board shall require for the
faithful performance of his duties. duty. The secretary-treasurer
shall keep a record of the proceedings of said Board and shall receive and
account for all moneys derived from the operations of the Board under this
Article."
Sec. 3. G.S. 87-43.4 reads as rewritten:
"§ 87-43.4. Residential dwelling license.
There is hereby created a separate license for electrical contractors which shall permit an electrical contractor to engage in electrical contracting projects pertaining to single-family detached residential dwellings. The value of a single project pertaining to a single-family detached residential dwelling shall not be in excess of the maximum value, established in G.S. 87-43.3, of a single project engaged in by a licensee with a license classified as limited. The Board shall establish appropriate standards for this new license. The standards of knowledge, experience and proficiency shall be those appropriate for that license."
Sec. 4. G.S. 87-47 reads as rewritten:
"§ 87-47. Jurisdiction
of Board. Penalties imposed by Board; enforcement procedures.
(a) Repealed by Session Laws 1989, c. 709, s. 9.
(a1) In the interest of protecting
the public, whenever the Board finds that (i) an applicant for certification as
a qualified individual, (ii) an applicant for a license, (iii) an applicant for
a renewal of a license, (iv) a qualified individual, or (v) a person,
partnership, firm or corporation to whom or to which a certification or license
has been issued, is guilty of one or more of the following: The
following activities are prohibited:
(1) Offering to engage or
engaging in electrical contracting without being licensed; licensed.
(2) Selling, transferring,
or assigning a license, regardless of whether for a fee; fee.
(3) Aiding or abetting an
unlicensed person, partnership, firm, or corporation to offer to engage or to
engage in electrical contracting; contracting.
(4) A Being
convicted of a crime involving fraud or moral turpitude by conviction
thereof; turpitude.
(5) Fraud or
misrepresentation in obtaining a certification, in obtaining or renewing a
license, or in the practice of electrical contracting; Engaging in fraud
or misrepresentation to obtain a certification, obtain or renew a license, or
practice electrical contracting.
(6) False Engaging
in false or misleading advertising; or advertising.
(7) Malpractice, Engaging
in malpractice, unethical conduct, fraud, deceit, gross negligence, gross
incompetence, or gross misconduct in the practice of electrical contracting;
contracting.
the Board may refuse or revoke
certification as a qualified individual, or may refuse to issue or renew a
license.
(a2) In addition to the
administrative action authorized by subdivision (a1) above, the The Board
may administer one or more of the following penalties if the applicant,
licensee, or qualified individual is found to be guilty of one or more of
the acts listed in subdivision (a1): has engaged in any activity
prohibited under subsection (a1) of this section:
(1) Reprimand; Reprimand.
(2) Suspension from
practice for a period not to exceed 12 months; months.
(3) Revocation of the
right to serve as a listed qualified individual on any license issued by the Board;
Board.
(4) Revocation of license;
and license.
(5) Probationary
revocation of license or the right to serve as a listed qualified individual on
any license issued by the Board, upon conditions set by the Board as the case shall
warrant, with warrants, and revocation upon failure to comply with
the conditions.
(6) Revocation of certification.
(7) Refusal to certify an applicant or a qualified individual.
(8) Refusal to issue a license to an applicant.
(9) Refusal to renew a license.
(a3) In addition to administering a penalty under subsection (a2) of this section, the Board may assess a civil penalty of not more than one thousand dollars ($1,000) against a licensee or a qualified individual who has engaged in an activity prohibited under subsection (a1) of this section or has violated another provision of this Article or a rule adopted by the Board. Civil penalties collected under this subsection shall be deposited in the General Fund of North Carolina as nontax revenue.
In determining the amount of a civil penalty, the Board shall consider:
(1) The degree and extent of harm to the public safety or to property, or the potential for harm.
(2) The duration and gravity of the violation.
(3) Whether the violation was committed willfully or intentionally, or reflects a continuing pattern.
(4) Whether the violation involved elements of fraud or deception either to the public or to the Board, or both.
(5) The violator's prior disciplinary record with the Board.
(6) Whether and the extent to which the violator profited by the violation.
(a3) (a4) The Board
shall, in accordance with Chapter 150B of the General Statutes, formulate rules
of procedure governing the hearings of charges against applicants, qualified
individuals and licensees. Any person person, including the
Board and its staff on their own initiative, may prefer charges against
any applicant, qualified individual, or licensee, pursuant to this
section, and such charges must be sworn to by the complainant and submitted
in writing to the Board. The Board may, without a hearing, dismiss
charges as unfounded or trivial. The Board may issue a notice of
violation based on the charges, to be served by a member of the Board's staff
or in accordance with Rule 4 of the Rules of Civil Procedure, against any
person, partnership, firm, or corporation for engaging in an activity
prohibited under subsection (a1) of this section or for a violation of the
provisions of this Article or any rule adopted by the Board. The person
or other entity to whom the notice of violation is issued may request a hearing
by notifying the Board in writing within 20 days after being served with the
notice of violation. Hearings shall be conducted by the Board or an administrative
law judge pursuant to Article 3A of Chapter 150B of the General Statutes.
In conducting hearings of charges, hearings, the Board may
remove the hearings to any county in which the offense, or any part thereof,
was committed if in the opinion of the Board the ends of justice or the
convenience of witnesses require such removal.
(a5) If the person or other entity does not request a hearing under subsection (a4) of this section, the Board shall enter a final decision and may impose penalties against the person or other entity. If the person or other entity is not a licensee or a qualified individual, the Board may impose penalties under subsection (a2) of this section. If the person or other entity is a licensee or a qualified individual, the Board may impose penalties under subsection (a2) of this section, subsection (a3) of this section, or both.
(b) The Board shall adopt and publish rules, in accordance with Chapter 150B of the General Statutes and consistent with the provisions of this Article, governing the matters contained in this section.
(c) The Board shall
establish and maintain a system whereby detailed records are kept regarding complaints
charges and notices of violation against each applicant, qualified
individual and licensee. pursuant to this section. This record
shall include, for each person, partnership, firm, and corporation charged
or notified of a violation, applicant, qualified individual and
licensee, the date and nature of each complaint, charge or notice
of violation, investigatory action taken by the Board, any findings by the
Board, and the disposition of the matter.
(d) The Board may reinstate a qualified individual's certification and may reinstate a license after having revoked it, provided that one year has elapsed from revocation until reinstatement and that the vote of the Board for reinstatement is by a majority of its members.
The Board shall immediately notify the Secretary of State and the electrical inspectors within the licensee's county of residence upon the revocation of a license or the reissuance of a license which had been revoked.
(e) In any case in which
the Board is entitled to convene a hearing to consider a charge under this
section, imposing any penalty provided for in subsection (a2) or (a3) of
this section, the Board may accept an offer in compromise of the charge,
whereby the accused shall pay to the Board a penalty of not more than one
thousand dollars ($1,000). All such penalties Penalties collected
by the Board under this subsection shall be deposited in the General
Fund of North Carolina. Carolina as nontax revenue."
Sec. 5. Notwithstanding the provisions of G.S. 87-39 to the contrary, the terms of the members serving on the Board on the effective date of this section shall, in order to establish a staggered term system, expire upon completion of those terms and the following shall apply for the following appointments: the term of one member who represents the interest of the public at large shall expire June 30, 2004; the term of the member who is a representative of the North Carolina Association of Electrical Contractors shall expire June 30, 2005; the term of the member who is serving as a chief electrical inspector of a municipality or county in North Carolina shall expire June 30, 2006; and the remaining appointments shall expire seven years after their successors' terms expire. Thereafter all terms shall be seven years in accordance with the provisions of G.S. 87-39, as amended by Section 1 of this act.
Members serving terms less than seven years for the purpose of establishing staggered terms under this section are not serving complete terms for purposes of G.S. 87-39(e), as amended by Section 1 of this act, and are eligible for redesignation or appointment to the Board.
Sec. 6. G.S. 87-43.3 reads as rewritten:
"§ 87-43.3. Classification of licenses.
An electrical contracting license shall be issued in one of
the following classifications: Limited, under which a licensee shall be permitted
to engage in a single electrical contracting project of a value not in excess
of seventeen thousand five hundred dollars ($17,500) twenty-five
thousand dollars ($25,000) and on which the equipment or installation in
the contract is rated at not more than 600 volts; Intermediate, under which a
licensee shall be permitted to engage in a single electrical contracting
project of a value not in excess of seventy-five thousand dollars ($75,000);
Unlimited, under which a licensee shall be permitted to engage in any
electrical contracting project regardless of value; and such other special
Restricted classifications as the Board may establish from time to time to
provide, (i) for the licensing of persons, partnerships, firms or corporations
wishing to engage in special restricted electrical contracting, under which
license a licensee shall be permitted to engage only in a specific phase of
electrical contracting of a special, limited nature, and (ii) for the licensing
of persons, partnerships, firms or corporations wishing to engage in electrical
contracting work as an incidental part of their primary business, which is a
lawful business other than electrical contracting, under which license a
licensee shall be permitted to engage only in a specific phase of electrical
contracting of a special, limited nature directly in connection with said
primary business. The Board may establish appropriate standards for each
classification, such standards not to be inconsistent with the provisions of
G.S. 87-42."
Sec. 7. Sections 1 and 5 of this act become effective January 1, 1997. Sections 3 and 6 of this act become effective July 1, 1995, and apply to electrical contracting projects commenced on or after that date. The remaining sections of this act become effective December 1, 1995.
In the General Assembly read three times and ratified this the 29th day of May, 1995.
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Dennis A. Wicker
President of the Senate
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Harold J. Brubaker
Speaker of the House of Representatives