HomeMy WebLinkAboutOrdinance 17-029 Ordinance 17-029
An Ordinance Amending Chapter 22 of the Ordinances of the City of Brookings
and Providing Procedures for the Licensing of Residential Contractors
in the City of Brookings.
Be It Ordained by the City of Brookings that Chapter 22 of the Code of Ordinances of the City
of Brookings be amended to include the following article:
I.
Article VIII. Residential Contractor's License
Section 22-520. — Definitions.
The following words, terms and phrases, when used in this Article VIII, shall be defined,
except where the context clearly indicates a different meaning, as follows:
City: The City of Brookings, South Dakota.
Employee: a person whose compensation for construction work is reported by the
employer on an Internal Revenue Service W-Z Form, and who is also otherwise
considered an employee under South Dakota law.
Residential Building Contracting: the enlargement, alteration, repair, improvement,
conversion or new construction of any 1 or 2 family dwelling, or any accessory
structure associated with a 1 or 2 family dwelling.
Residential Building Contractor.� a sole proprietorship, partnership, firm, limited liability
company or corporation which, for compensation, undertakes or offers to undertake
residential building contracting.
Section 22-521: License Required
1. It is unlawful for any person or persons representing or operating as a sole
proprietorship, partnership, firm, limited liability company or corporation, to conduct,
carry on or engage in the business of residential contracting work or acting in the
capacity of a residentia! contractor without having first been issued a valid residential
contractor's license by the city. For the purposes of this section, any residential
building contracting work perFormed within the licensing jurisdiction of the City that
requires a building permit would also require a residential contractor's license. This
work includes, but is not limited to concrete work, masonry, carpentry, all building
trade contracting including roofing, remodeling, siding, rough framing; all phases of
new construction, alteration, additions; repair or demolition of structures; and excluding
those activities exempted by the following section.
2. The following are exempt from the licensing requirements:
a. Employees of a person licensed in accordance with this chapter when they are
under the direction and control of a person or company who holds a residential
contractor's license issued by the City.
b. Persons engaged in the following construction trades: mechanical, plumbing
and electrical, when that person is performing work consistent with that building
trade and applicable City or State license.
c. A dwelling owner for work to be done on their property which they occupy as
their own home or will occupy as his or her own home and when the property
owner is acting as their own contractor. A dwelling owner may not build more
than one (1) single family dwelling in a three (3) year period without obtaining a
residential contractor's license, unless they occupy the dwelling a minimum
period of one (1) year after the final inspection is approved.
� A landlord for work to be done on the landlord's property when the landlord is
acting as their own contractor.
e. A residential developer for work to be done on their property when the
residential developer has hired licensed contractors to complete all permitted
work.
Section 22-522: License Application Procedure
A residential contractor license shall be issued to every proprietorship, partnership, firm,
limited liability company or corporation who makes application for the license, pays the
required application fee and meets the requirements as stated in this chapter. The office of
the City Clerk is authorized to issue a residential contractor's license provided the provisions
of this chapter are satisfied. The City Clerk may refer any licensing issues to the City
Manager for review prior to approval or rejection.
(a) Person or persons responsible for license. Each residential contractor license issued
to a sole proprietorship, partnership, firm, limited liability company or corporation shall
be the responsibility of the owner or manager of the sole proprietorship, partnership,
firm, limited liability company or corporation.
(b) License use restricted. No licensed residential building contractor shall knowingly allow
their name to be used by any other person directly or indirectly, either to obtain a
residential contractor license or to perform residential building contracting which is not
conducted by the licensed residential contractor or under the supervision of the
licensed residential contractor.
(c) License term renewal. All licenses issued under the provisions of this chapter shall
expire on December 31 of every year.
(d) Liability Insurance. Liability insurance shall be required of every residential contractor.
Every applicant for a residential contractor's license shall present to the Building
Services Administrator for their review a valid certificate of insurance at the time of
application. It shall be the duty of every residential contractor to continually maintain
valid liability insurance. The minimum required general liability insurance shall be Five
Hundred Thousand Dollars ($500,000) for each occurrence.
(e) Worker's compensation insurance. In accordance with South Dakota State law, proof
of worker's compensation insurance shall be verified prior to issuance of a residential
contractor's license.
(fl Proof of excise tax number. Applicants for a residential contractor's license shall be
required to supply their excise tax number.
Section 22-523: Fees
The initial fee, as well as the annual renewal fee for a residential contractor's license shall be
established by resolution of the City Council. All licenses shall be effective when issued and
shall terminate December 31St in the year for which issued. The license fee charged shall be
paid on the basis of a full year. However, if the license is not renewed prior to the expiration
date and the contractor has a job in progress, the license fee will be double the fee
established by resolution of the City Council.
Section 22-524: Enforcement
1. Any person who commences any residential building work for which a permit is
required by this code without first having obtained a license shall, if subsequently
permitted to obtain a permit, pay an additional license fee as established by the City
Council. This provision shall not, however, apply to emergency work when it is proven
to the satisfaction of the City Clerk that the work was urgently necessary and that it
was not practical to obtain a license before the commencement of the work.
2. The City of Brookings may suspend, revoke, refuse to issue or renew a license in the
following events:
a) In its discretion, it is in the public interest; and
b) Based upon substantial evidence, the applicant or licensee:
c) Has filed an application for a license that is incomplete in any material respect
or contains false or misleading statements; or
d) Has engaged in any fraudulent, deceptive or dishonest act or practice; or
e) Has violated any applicable provisions of the building codes, city ordinances,
rule or regulation or State law.
fl Fails to file with the City the required certificates of insurance or hold a valid
certificate of insurance.
Section 22-525: Notice of Violation
1. The building official may suspend or revoke any license if obtained through
nondisclosure, misstatement or misrepresentation of a material fact or if a licensee
violates any of the provisions of this article.
2. Before a license may be suspended or revoked, the licensee shall receive notice in
writing enumerating the charges against it and shall be entitled to a hearing by the
Board of Appeals.
3. Should any licensee or applicant for a license under this chapter be aggrieved by the
action of the building official, they may, within ten (10) days of the decision, appeal
such decision by filing a written request for such appeal with the City Manager for
review by the Board of Appeals. Upon review, the Board of Appeals may affirm, modify
or reverse the action of the building official and may order for good cause the issuance
of a license. The decision of the Board of Appeals shall be based upon the evidence
produced at the hearing. A person whose license has been revoked shall not be
permitted to apply until one year after the date of revocation.
4. A licensed contractor who is the subject of an investigation shall cooperate fully with
the City in its investigations. Cooperation includes, but is not limited to:
(a) Responding fully and promptly to questions;
(b) Providing copies of records relative to the matter under investigation; and
(c) Appearing at conferences or hearings as scheduled.
Section 22-526 — 22-535: Reserved
II.
Any or all ordinances in conflict herewith are hereby repealed.
First Reading: November 28, 2017
Second Reading and Adoption: December 12, 2017
Published: December 15, 2017
CITY OF BROOKINGS
6��/�
Keith W. Corbett, Mayor
� �-��►T�� T:
� .
w Mi.k,3
x�' 183
�,.
o'•,
y/f�Gs•C0.5 . � ��
ari Thornes, City C rk