Current through Register Vol. 35, No. 18, September 24, 2024
A.
General
information.
(1) To act in the capacity
of a contractor as defined in Section
60-13-3 NMSA 1978, an entity must
be issued a license.
(2) No
business entity, the majority of which is owned by an individual who is 17
years of age or younger, is eligible for licensure.
(3) Contractor licenses issued by CID:
(a) Are issued only to qualified business
entities which employ or are owned by one or more qualifying parties validly
certified by CID to perform the classification of contracting in which the
licensee intends to engage;
(b)
grant only the authority to engage in contracting in the classification
specified on the license issued to the entity, and on the certificate issued to
its qualifying party;
(c) are not
transferable and may not be used by any person other than the entity to which
it is issued, and any entity that permits another person to use its license, or
knows that its license is being used by another person and fails to promptly
notify CID of such use, shall be subject to disciplinary action, up to and
including revocation of the license; and
(d) authorize only the entity as named on the
license to engage in contracting and no licensee may engage in contracting
using a name other than the name that is shown on the license issued to
it.
(4) No license shall
be issued to an entity that is using a name containing word(s) identifying a
construction or contracting trade, craft, discipline or expertise that is not
covered by the classification of license for which the entity is
qualified.
(5) In the event a
licensee loses its qualifying party, through termination of employment or
otherwise, both the licensee and the qualifying party must notify CID or its
designee in writing of the separation within 30 days thereof.
(6) CID shall address all written
communication with a licensee to its address of record which is the address
shown on the application or any different address of which CID has received
written notice from the licensee. A licensee shall report in writing to CID or
its designee any change of address within 30 days after such change. Failure to
do so is cause for disciplinary action.
(7) For additional information regarding
journeyman certification, please see 14.6.4 NMAC.
B.
Types of entities.
(1)
Corporations, limited liability
companies (LLC), limited partnership (LP) and limited liability partnerships
(LLP).(a) Corporations, LLCs, LPs and
LLPs are each required to be licensed even though one or more stockholders,
members or partners have a license or qualifying party certificate.
(b) Corporations, LLCs, LPs and LLPs must be
legally authorized to do business in New Mexico in order to be eligible to
apply for, renew or retain a license.
(c) Any license issued to a corporation, LLC,
LP or LLP shall automatically cancel when the entity ceases to exist under New
Mexico law.
(2)
Joint ventures.(a) No two or
more persons shall submit a joint bid or jointly engage in contracting unless
operating as a validly licensed joint venture.
(b) To be eligible to apply for, renew or
retain a license, each entity comprising the joint venture must hold a valid
New Mexico contractor license and be legally authorized to do business in New
Mexico.
(c) Any license issued to a
joint venture entity shall automatically cancel when the entity ceases to exist
under New Mexico law.
(3)
Partnerships.
(a) A partnership
must be legally authorized to do business in New Mexico in order to be eligible
to apply for, renew or retain a license.
(b) Any license issued to a partnership shall
automatically cancel when the partnership ceases to exist under New Mexico
law.
(4)
Sole
proprietorships.
(a) A sole
proprietorship must be legally authorized to do business in New Mexico in order
to be eligible to apply for, renew or retain a license.
(b) On the death of a sole proprietor, the
license shall automatically cancel.
C.
Proof of financial
responsibility.
(1) Upon initial
licensure and as a condition of renewal each applicant shall furnish to the
division a bond in the amount of ten thousand dollars ($10,000) underwritten by
a corporate surety authorized to transact business in New Mexico.
(2) The date of effectiveness of the bond
shall cover the entire period of licensure for initial application and each
renewal cycle. Maintaining the bond for the entire period of licensure is a
condition of licensure.
(3) Payment
from a bond required by Section
60-13-49 NMSA 1978, shall be used
to cure division certified code violations caused and not corrected by the
licensee.
(4) Claims against the
bond shall be made within two years following final inspection or within two
years of issuance of a certificate of occupancy, whichever is
earlier.
(5) The surety for such a
bond shall remain in effect and liable, for the entire term of potential
liability, under the provisions of the bond for all obligations of the
principal pertaining to bond terms that occur before the bond is canceled,
expires or otherwise becomes ineffective.
(6) The bond carrier shall provide to the
division and to the licensee thirty days prior written notice of intent to
cancel a bond as required pursuant to Section
60-13-49 NMSA 1978. The division
shall notify the licensee that a new bond is required. If the licensee has not
provided a new bond according to the statute, action shall be taken immediately
for cancellation of the license.
D.
Application for licensure or
certification.
(1) Every application
for licensure, certification, and all requests for formal action to be taken on
a license or certificate, such as renewal or addition of a classification, must
be made on the applicable form issued by CID or its designee and accompanied by
the applicable fee as required by 14.5.5 NMAC.
(2) An incomplete or insufficient application
shall be rejected and returned to the applicant, with a statement of the reason
for the rejection.
(3) All
requirements for licensing or certification must be met within six months from
the date the application is received by CID or its designee. Any application
not completed within the six month period shall expire and any fees paid in
connection with the expired application shall automatically forfeit.
(4) An application for licensure or
certification may be denied if the applicant has been convicted of a felony
enumerated as a disqualifying criminal conviction pursuant to Subsection F of
14.6.3.8 NMAC.
(5) CID may deny an application on the basis
of an applicant's conduct to the extent that such conduct violates the
Construction Industries Licensing Act, the LP and CNG Act or their accompanying
rules, regardless of whether the individual was convicted of a crime for such
conduct or whether the crime for which the individual was convicted is listed
as one of the disqualifying criminal convictions listed in Subsection F
below.
E.
Qualifying party certificates.
(1) Qualifying party certificates issued by
CID:
(a) Are issued only to individuals who
are 18 years of age or older;
(b)
Grant only the authority for the licensee to engage in contracting in the
classification specified on the certificate;
(c) Are not transferable and may not be used
by any individual other than the individual to whom it is issued, and any
individual who permits another person to use his certificate, or knows that his
certificate is being used by another person and fails to promptly notify CID of
such use, shall be subject to disciplinary action, up to and including
revocation of the certificate.
(2) While validly attached to, and qualifying
a license, no qualifying party shall accept or engage in any employment that
would conflict with his responsibilities as a qualifying party for, or conflict
with his ability to adequately supervise the work performed by, the
licensee.
(3) No individual may
qualify more than one licensed entity, other than a joint venture, unless there
is at least thirty percent common ownership among the qualified entities. CID
may require evidence of such ownership that is satisfactory to the
director.
(4) A qualifying party
may only perform work authorized by the qualifying party certificate while
validly attached to a validly licensed entity.
F.
Potential denial of licensure based
on disqualifying criminal conviction(s).
(1) Pursuant to Section
28-2-4 NMSA 1978, the division may
refuse to grant or renew a license or certificate if an applicant has been
convicted of a felony and the criminal conviction directly relates to the
particular trade, business or profession.
(2) To deny an application for licensure or
certification based on a disqualifying criminal conviction the following must
be considered:
(a) CID shall not consider an
applicant's criminal conviction to deny licensure or certification unless the
conviction is one of the disqualifying criminal convictions listed in Paragraph
(4) below.
(b) Should an applicant
be denied a license or certificate based on a disqualifying criminal
conviction, the applicant may submit a written justification providing evidence
of mitigation or rehabilitation for reconsideration by the division.
(c) Should CID deny the license or
certification after receipt of the written justification stated above, the
denial may be appealed and subject to a hearing pursuant to the Uniform
Licensing Act to determine whether the denial is properly based upon a
disqualifying criminal conviction.
(3) In connection with an application for
licensure, the division shall not use, distribute, disseminate, or admit into
evidence at an adjudicatory proceeding criminal records of any of the
following:
(a) A conviction that has been
sealed, dismissed, expunged or pardoned;
(b) a juvenile adjudication; or
(c) a conviction for any crime other than the
disqualifying criminal convictions listed in Paragraph (4), Subsection F of
this rule.
(4)
Disqualifying felony criminal convictions that may allow the denial of
licensure or certification or the denial of renewal of licensure or
certification, whether in New Mexico or their equivalent in any other
jurisdiction include:
(a) conviction involving
attempts to evade or defeat payment of a tax that is owed or may be lawfully
assessed;
(b) conviction involving
physical harm to a person or for an attempt, conspiracy or solicitation to
commit such crimes;
(c) robbery,
larceny, burglary, fraud, forgery, embezzlement, arson, theft of identity,
extortion, racketeering or receiving stolen property or for an attempt,
conspiracy or solicitation to commit such crimes;
(d) conviction involving bribery of a public
officer or public employee or for an attempt, conspiracy or solicitation to
commit such crimes.
G.
Qualifying party certification
process.
(1) Except for individuals
seeking expedited licensure as military service members, an individual applying
for a qualifying party certificate must provide proof of work experience, as
required in the act and Title 14, NMAC, in the classification of contracting
for which application is made. Training that is classified as technical
training by an accredited college, university, manufacturer's accredited
training program, technical vocational institute or an accredited
apprenticeship program will be considered in lieu of work experience. Each year
of equivalent training shall be applied as one-half year of experience, but in
no case shall accredited training exceed one-half of the total work experience
requirement.
(2) Examination
Procedure.
(a) No applicant for a qualifying
party certificate is eligible to take a qualifying examination until providing
satisfactory work experience, as to four years within the 10 years immediately
prior to application, documentation to the division.
(b) Examinations shall be administered by
CID, or its designee.
(c) A passing
exam score is seventy-five percent or higher.
(d) An applicant who fails to appear for a
scheduled exam or fails to attain a passing score of seventy-five percent or
higher may take another regularly scheduled exam, provided the applicant
reapplies to take the exam, pays the fee and does not repeat the exam more than
twice in any 30-day period.
(e) If
CID or its designee determines that an applicant has cheated, the exam shall be
deemed invalid, all fees shall be forfeited, and any license or certificate
issued on the basis of that exam shall be automatically and immediately voided.
The applicant will not be eligible to take any exam administered by CID, or its
designee, for one year after the date of such an event.
(f) The bureau chief may waive the state
specific written trade exam requirement for a qualifying party who has passed
the general construction, electrical, or electrical journeyman, national
association of state contractors licensing agencies (NASCLA) accredited
examination at the passing exam score when applying and successfully completing
all other qualifying party requirements and journeyman certification
requirements.
H.
Qualifying party process for
expedited certification for military service members.
(1) The applicant shall submit a completed
division approved qualifying party application.
(2) In lieu of work experience verification
the applicant shall provide the following documentation satisfactory to the
division:
(a) Applicant is currently licensed
or certified and in good standing in another jurisdiction, including a branch
of the United States armed forces;
(b) applicant has met the minimal licensing
or certification requirements in that jurisdiction and the minimal licensing
requirements in that jurisdiction are substantially equivalent to the
certification requirements for New Mexico; and
(c) submit the following documentation:
(i) For military service member: copy of
military orders;
(ii) for spouse of
military service members: copy of service member's military orders, and copy of
marriage license;
(iii) for spouses
of deceased military service members: copy of deceased service member's DD214
and copy of marriage license;
(iv)
for dependent children of military service members: copy of military orders
listing dependent child, or a copy of service member's military orders and one
of the following: copy of birth certificate of the dependent child, military
service member's federal tax return or other governmental or judicial
documentation establishing dependency;
(v) for veterans (retired or separated): copy
of DD214 showing proof of honorable discharge.
(3) The certificate shall be issued by the
division as soon as practicable but no later than 30 days after a qualified
military service member, spouse, dependent child, or veteran files a completed
division approved application and provides a background check, if required, for
the certification.
(4) Military
service members and veterans shall not be charged a fee for the first three
years for a license or certificate issued pursuant to this rule. The three-year
exemption for licensing fees does not include fees for copies of documents,
replacement licenses or other expenses related to a license, which fees shall
be charged according to the division's fees currently in effect. A license
issued pursuant to this section shall be valid for a three-year period subject
to renewal requirements of Subsection I below.
I.
License renewals.
(1) CID or its designee shall mail to every
licensee a renewal application form at least 30 days prior to the expiration of
the license to the current address of record for that licensee. Whether or not
the application form is received, it is the sole duty and responsibility of
each licensee to timely renew its license.
(2) The filing date of the renewal
application shall be the date the envelope is postmarked or, if hand delivered,
the date it is received by CID or its designee.
(3) The signatures of all current qualifying
parties on each license must appear on the renewal form.
(4) If a renewal application is not timely
received, or if received but is rejected for failure to comply with renewal
requirements, the license shall be suspended and subject to cancellation
pursuant to Subsections E and F of Section
60-13-18 NMSA 1978, of the
Act.
(5) An application for renewal
of a license or certificate may be denied if the applicant has been convicted
of a felony enumerated as a disqualifying criminal conviction pursuant to
Subsections F of
14.6.3.8 NMAC.
J.
Change of name.
(1) The licensee must submit a written
request for a name change accompanied by:
(a)
An amended registration certificate from the New Mexico department of taxation
and revenue.
(b) A rider from the
bonding company;
(c) If a
corporation, LLC, LP or LLP, a copy of the New Mexico certificate of amendment
or other document issued by the state showing that the name change has been
officially recorded.
(2)
A change of name is not effective until approved and posted by CID. Conducting
business under the new name prior to CID's approval and notification within
CID's licensee database may constitute a violation of Subsection K of Section
60-13-23 NMSA 1978, of the
Act.
K.
Validity of
licenses and certificates.
(1) The
following events may cause a license or certificate to be, or to become,
invalid:
(a) Failure to renew pursuant to
Sections 60-13-18 and
60-13-39 NMSA 1978, of the
Act.
(b) Failure to maintain proof
of financial responsibility pursuant to Section
60-13-49 NMSA 1978, of the
Act.
(c) Failure to comply with
workers' compensation laws pursuant to Section
60-13-23 NMSA 1978, of the
Act.
(d) Failure to comply with the
Parental Responsibility Act.
(e)
Failure of a license to be qualified by a qualifying party
certificate.
(f) Loss of
authorization to conduct business in New Mexico.
(g) Death of a sole proprietor.
(h) Revocation or suspension of a license
pursuant to Section
60-13-23 NMSA 1978, of the
Construction Industries Licensing Act, the Criminal Offender Employment Act or
14.5.8 NMAC.
(i) Revocation or
suspension of a certificate pursuant to Section
60-13-24 and 36 NMSA 1978, of the
Construction Industries Licensing Act, the Criminal Offender Employment Act or
14.5.8 NMAC.
(2) When a
license ceases to be qualified by a qualifying party certificate, the license
will be automatically cancelled and the licensee may not bid or commence any
new work in that classification. Any bid or new work commenced after a license
is cancelled pursuant to this rule shall be considered unlicensed and will
subject the licensee to disciplinary action. Work in progress at the time of
the cancellation may continue for not more than 120 days. After 120 days, any
permit that was issued to the licensee for work in the affected classification
shall be automatically cancelled, no inspection shall be conducted pursuant to
any such cancelled permit, and any work continued or undertaken shall be deemed
to be unlicensed activity and will subject the licensee to prosecution pursuant
to Section
60-13-52 NMSA 1978, of the
Act.
(3) A qualifying party
certificate that is not qualifying a valid license will automatically expire as
follows:
(a) A new qualifying party
certificate that does not qualify a valid license within 12 months from the
date on which the exam score was reported to CID, or its designee, shall
automatically expire.
(b) A
qualifying party who does not qualify a valid license for any consecutive two -
year period shall lose eligibility as a qualifying party and the certificate
shall automatically expire. Any individual who wishes to become recertified in
the same classification after the expiration of the certificate pursuant to
this rule must apply, retest, and pay all applicable fees. The director may
waive the exam requirement for an additional 12 months if the applicant submits
documentation of work experience indicating technical and business knowledge
equivalent to that indicated by exam scores.
(4) Any work in progress at the time a sole
proprietor dies or an entity ceases to exist or be authorized to do business,
as described in subpart B. of this rule, may continue for not longer than 120
days provided that CID receives written notice of the death or event that
causes the entity to lose its authorization to do business within 30 calendar
days thereafter. At the end of the 120 days, all permits issued to the entity
shall be cancelled, no inspections on such permits shall be performed, and any
work performed thereafter by the entity shall be deemed unlicensed activity and
may be prosecuted under Section
60-13-52 NMSA 1978, of the Act. If
the licensee, or the licensee's representative fails to notify CID as required
in this rule, any work performed after the death of the sole proprietor or the
termination of the entity's authorization to do business in New Mexico shall
constitute unlicensed activity under the act and may be prosecuted by
CID.
L.
Compliance
with Parental Responsibility Act.
(1)
Pursuant to the Parental Responsibility Act (PRA), any person who fails to come
into compliance with all court ordered child support obligations within 30 days
after receiving notice of non-compliance from CID will be subject to revocation
of all licenses and certificates, pursuant to the due process requirements of
the Uniform Licensing Act.
(2) The
only proof of compliance with the PRA is a certificate of compliance issued to
the license or certificate holder by the human services department (HSD
certificate).
(3) If a license or
certificate has been suspended or revoked pursuant to the requirements of the
PRA and this rule, it shall be re-instated upon receipt by CID of an HSD
certificate and payment of any fines, fees or other amounts owing to CID,
subject to the following conditions:
(a) If
more than 90 days have elapsed since the expiration date of a revoked license,
the license shall not be reinstated. The respondent will be required to apply
for a new license pursuant to the requirements of the act and these rules;
provided, however, that the one year waiting period required by Section
60-13-29 NMSA 1978, of the act
shall not apply.
(b) If more than
180 days have elapsed since the expiration of a revoked certificate of
competence, the certificate shall not be reinstated. The respondent will be
required to apply for a new certificate pursuant to the requirements of the act
and these rules; provided, however, that the one year waiting period required
by Section
60-13-29 NMSA 1978, of the Act
shall not apply.
(c) If a more than
two years have elapsed since the date of an order revoking a qualifying party
certificate, the certificate shall not be reinstated. The respondent will be
required to apply for a new certificate pursuant to the act and these rules;
provided, however, that the one year waiting period required by Section
60-13-16 NMSA 1978, of the act
shall not apply.
(d) Nothing in
this rule or the PRA shall require CID to reinstate a license or certificate if
cause exists to suspend or revoke the license or certificate on other
grounds.