32-1154

32-1154. Grounds for suspension or revocation
of license; continuing jurisdiction; civil penalty; recovery fund
award; summary suspension

A. The holder of a license or any person listed on a license pursuant to this
chapter shall not commit any of the following acts or omissions:

1. Abandonment of a contract or refusal to perform after submitting a bid on work
without legal excuse for the abandonment or refusal.

2. Departure from or disregard of plans or specifications or any building codes of
the state or any political subdivision of the state in any material respect which is
prejudicial to another without consent of the owner or the owner's duly authorized
representative and without the consent of the person entitled to have the particular
construction project or operation completed in accordance with such plans and
specifications and code.

3. Violation of any rule adopted by the registrar.

4. Failure to comply with the statutes or rules governing social security, workers'
compensation or unemployment insurance.

5. Failure to pay income taxes, withholding taxes or any tax imposed by title 42,
chapter 5, articles 1 and 4 and incurred in the operation of the licensed business.

6. Misrepresentation of a material fact by the applicant in obtaining a license.

7. The doing of a fraudulent act by the licensee as a contractor resulting in
another person being substantially injured.

8. Conviction of a felony.

9. Failure in a material respect by the licensee to complete a construction project
or operation for the price stated in the contract, or in any modification of the
contract.

10. Aiding or abetting a licensed or unlicensed person to evade this chapter,
knowingly or recklessly combining or conspiring with a licensed or unlicensed person,
allowing one's license to be used by a licensed or unlicensed person or acting as agent,
partner, associate or otherwise of a licensed or unlicensed person with intent to evade
this chapter.

11. Failure by a licensee or agent or official of a licensee to pay monies in excess
of seven hundred fifty dollars when due for materials or services rendered in connection
with the licensee's operations as a contractor when the licensee has the capacity to pay
or, if the licensee lacks the capacity to pay, when the licensee has received sufficient
monies as payment for the particular construction work project or operation for which the
services or materials were rendered or purchased.

12. Failure of a contractor to comply with any safety or labor laws or codes of the
federal government, state or political subdivisions of the state.

13. Failure in any material respect to comply with this chapter.

14. Knowingly entering into a contract with a contractor for work to be performed
for which a license is required with a person not duly licensed in the required
classification.

15. Acting in the capacity of a contractor under any license issued under this
chapter in a name other than as set forth upon the license.

16. False, misleading or deceptive advertising whereby any member of the public may
be misled and injured.

17. Knowingly contracting beyond the scope of the license or licenses of the
licensee.

18. Contracting or offering to contract or submitting a bid while the license is
under suspension or while the license is on inactive status.

19. Failure to notify the registrar in writing within a period of fifteen days of
any disassociation of the person who qualified for the license. Such licensee shall have
sixty days from the date of such disassociation to qualify through another person.

20. Subsequent discovery of facts which if known at the time of issuance of a
license or the renewal of a license would have been grounds to deny the issuance or
renewal of a license.

21. Having a person named on the license who is named on any other license in this
state or in another state which is under suspension or revocation unless the prior
revocation was based solely on a violation of this paragraph.

22. Continuing a new single family residential construction project with actual
knowledge that a pretreatment wood-destroying pests or organisms application was either:

(a) Not performed at the required location.

(b) Performed in a manner inconsistent with label requirements, state law or rules.

23. Failure to take appropriate corrective action to comply with this chapter or
with rules adopted pursuant to this chapter without valid justification within a
reasonable period of time after receiving a written directive from the registrar. The
written directive shall set forth the time within which the contractor is to complete the
remedial action. The time permitted for compliance shall not be less than fifteen days
from the date of issuance of the directive. A license shall not be revoked or suspended
nor shall any other penalty be imposed for a violation of this paragraph until after a
hearing has been held.

24. Prohibit, threaten to prohibit, retaliate, threaten to retaliate or otherwise
intimidate any contractor or materialman from serving a preliminary notice pursuant to
section 33-992.01.

B. The registrar may on the registrar's own motion, and shall on the written
complaint of any owner or contractor that is a party to a construction contract or a
person who suffers a material loss or injury as a result of a contractor's failure to
perform work in a professional and workmanlike manner or in accordance with any
applicable building codes and professional industry standards, investigate the acts of
any contractor within this state and may temporarily suspend, with or without imposition
of specific conditions in addition to increased surety bond or cash deposit requirements,
or permanently revoke any or all licenses issued under this chapter if the holder of the
license issued pursuant to this chapter is guilty of or commits any of the acts or
omissions set forth in subsection A of this section. For the purposes of this subsection:

1. "Construction contract" means a written or oral agreement relating to the
construction, alteration, repair, maintenance, moving or demolition of any building,
structure or improvement or relating to the contractor's excavation of or other
development or improvement to land if the registrar investigates the contractor's actions
under this subsection.

2. "Owner" means any person, firm, partnership, corporation, association or other
organization, or a combination of any of them, that causes a building, structure or
improvement to be constructed, altered, repaired, maintained, moved or demolished or that
causes land to be excavated or otherwise developed or improved, whether the interest or
estate of the person is in fee, as vendee under a contract to purchase, as lessee or
another interest or estate less than fee, pursuant to a construction contract.

C. The expiration, cancellation, suspension or revocation of a license by operation
of law or by decision and order of the registrar or a court of law or the voluntary
surrender of a license by a licensee shall not deprive the registrar of jurisdiction to
proceed with any investigation of or action or disciplinary proceeding against such
licensee, or to render a decision suspending or revoking such a license, or denying the
renewal or right of renewal of such license.

D. The registrar may impose a civil penalty of not to exceed five hundred dollars
on a contractor for each violation of subsection A, paragraph 23 of this section. Civil
penalties collected pursuant to this subsection shall be deposited in the residential
contractors' recovery fund. The failure by the licensee to pay any civil penalty imposed
under this subsection results in the automatic revocation of the license thirty days
after the effective date of the order providing for the civil penalty. No future license
may be issued to an entity consisting of a person associated with the contractor, as
defined in section 32-1101, subsection A, paragraph 5, unless payment of any outstanding
civil penalty is tendered.

E. The registrar shall impose a civil penalty of not to exceed one thousand dollars
on a contractor for each violation of subsection A, paragraph 18 of this section. Civil
penalties collected pursuant to this subsection shall be deposited in the residential
contractors' recovery fund. The failure by the licensee to pay any civil penalty imposed
under this subsection results in the automatic permanent revocation of the license thirty
days after the effective date of the order providing for the civil penalty. No future
license may be issued to an entity consisting of a person associated with the contractor,
as defined in section 32-1101, subsection A, paragraph 5, unless payment of any
outstanding civil penalty is tendered.

F. Notwithstanding any other provisions in this chapter, if a contractor's license
has been revoked or has been suspended as a result of an order to remedy a violation of
this chapter, and the contractor refuses or is unable to comply with the order of the
registrar to remedy the violation, the registrar may order payment from the residential
contractors' recovery fund to remedy the violation. The registrar shall serve the
contractor with a notice setting forth the amount claimed or to be awarded. If the
contractor contests the amount or propriety of the payment, the contractor shall respond
within ten days of the date of service by requesting a hearing to determine the amount or
propriety of the payment. Failure by the contractor to respond in writing within ten days
of the date of service shall be deemed a waiver by the contractor of the right to contest
the amount claimed or to be awarded. Service may be made by personal service to the
contractor or by mailing a copy of the notice by registered mail with postage prepaid to
the contractor's latest address of record on file in the registrar's office. If service
is made by registered mail, it is effective five days after the notice is mailed. Except
as provided in section 41-1092.08, subsection H, the contractor or injured person may
seek judicial review of the registrar's final award pursuant to title 12, chapter 7,
article 6.