SB 0862 Creates a home builders licensure board to license and regulate residential home builders
LR Number:3617S.01I Fiscal Note:3617-01
Committee:Insurance and Housing
Last Action:02/12/02 - Hearing Conducted S Insurance & Housing Committee Journal page:
Effective Date:August 28, 2002
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Current Bill Summary

SB 862 - Under this act, a Home Builders Licensure Board is created to license and regulate home builders. After January 1, 2002, each home builder will have to be licensed by this agency in order to engage in the home building industry. Certain builders are exempted from obtaining a license (people who build their own house or those who manufacture mobile homes for instance).

The Board, by filing a complaint with the Administrative Hearing Commission, may revoke or suspend the license of any licensee who, in the opinion of the Board, has committed fraud in obtaining a license, or is guilty of gross negligence, incompetence, or misconduct in the practice of residential home building. Filing false information for the purpose of obtaining a license is a criminal offense. In addition to disciplinary action, the Board may impose administrative penalties for violations of the home builders licensure law and the rules and regulations of the Board. Building officials or other authorities charged with the duty of issuing building permits shall not issue such permits unless the home builder is licensed. If a home builder without a license builds a home, such builder will be guilty of a Class C misdemeanor. An unlicensed home builder may not maintain an action at law or in equity against a home buyer for compensation.

This act establishes a special fund so that home buyers can collect damages caused by the home builder. This fund is subsidized by the home builders when they apply for a license. After a home buyer has successfully sued a home builder in court, the buyer can collect the unpaid judgment from the fund.

This act is identical to SB 210 (2001).