New Legislation Affecting Home Improvement Contractors - The Beebe ...

Jul 28th, 2011 | By admin | Category: Community

The Arkansas Residential Contractors Committee is the state board that licenses and regulates residential construction in Arkansas.?? During the last legislative session, Act 1208 was passed by the Legislator and signed by Governor Beebe, adding most contractors who perform work on single family residences over $2,000.00 (including labor and materials) to the residential licensure requirements
Prior to Act 1208, the Residential Licensing Law set out at Ark. Code Ann. ? 17-25-501, et seq., regulated only the licensure of ?residential building contractors? or general contractors building ?new construction? when the cost of the project is $20,000 or more.??? Act 1208 specifically adds ?Home improvement contractor? performing work on single family residences when the cost of the work, including labor and materials, is more than $2,000.00 (including labor and materials).
There are some important exemptions in the Act.? As before, owners are exempt from licensure when acting as the contractor in the construction of his or her residence unless he or she builds more than one residence during any calendar year.???? The Bill also exempts:

(1)?? Owners acting as his or her own home improvement contractor on his or her own property (note that the subcontractors working for the owner would not be ??? exempt)

(2)??? ?Subcontractors working for a licensed contractors and
(3)??? ?Contractors licensed by other licensing agencies or boards if the contractor is performing work within the scope of the license. For example, a plumber properly licensed by the Plumbing Board would not need a license from the Residential Contractors Committee to do plumbing work on a single family residence.? However, if that plumber also painted the house and the cost of that work was more than $2,000, labor and material, he would need a license for the painting work.
Therefore, if a contractor does work at a single family residence that is more than $2,000, labor and material, and does not fall within one of the exemptions, the contractor will need a license.? There will be a grandfathering period from July 27, 2011 until January 1, 2012.?? During this time, the Committee will grandfather any home improvement contractor who submits proof of appropriate experience in construction acceptable to the Committee.?? There will be no test requirement if a contractor becomes licensed within this period and the licensure process will generally be easier.?? If the contractor waits until after January 1, 2012, a test will be required, and the contractor will be required to go through the full application procedure.
All home improvement contractors performing work over $2,000.00 on single family residences and do not fall within one of the exemptions are required to be licensed by January 1, 2012.?? The penalty for not having a license after this date is $100 to $400 per day.??? If you have any questions, you may contact the Arkansas Contractors Licensing Board at (501) 371-4661 or visit the Board?s website at aclb.arkansas.gov.

Source: http://beebenews.com/?p=13846

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