Current through Vol. 42, No. 1, September 16, 2024
(a) Unless as
otherwise provided in (b) of this Section: Each active plumbing contractor must
maintain a five thousand dollar ($5,000.00) corporate surety bond, payable to
the Board on the Board's call upon the bond, and must cause the surety to file
a copy of such bond with the Plumbing Licensing Unit.
(b) An active plumbing contractor may also
satisfy the requirements of (a) of this Section by filing with the Plumbing
Licensing Unit documentation demonstrating cash funds securely held for bonding
purposes equivalent to a corporate surety bond of either the sum of $5,000 cash
or a certificate of deposit in the sum of $5,000 so held for bonding purposes
and payable to the Board on the Board's call upon the bond.
(c) Failure to maintain a corporate surety
bond in effect shall constitute an inactive contractor status of a bonded
plumbing contractor license immediately upon the expiration of such bond.
(d) A corporate surety bond may be
accepted from any surety authorized to do business in the State of Oklahoma. It
shall continue in effect until thirty (30) days have elapsed after the Bond and
Insurance Unit is notified by the surety of the cancellation of such bond,
unless the bond expired on a date certain on its face.
(e) A bond or other surety filed in
accordance with (a) of this Section shall be in lieu of filing a bond with each
municipality where the plumbing contractor works, and shall be conditioned upon
all the following terms:
(1) Plumbing
contractors shall faithfully and properly conduct business in compliance with
applicable statutes, rules of the Oklahoma Construction Industries Board, and
with all the applicable ordinances of the municipality in which plumbing work
is performed.
(2) Plumbing
contractors shall pay all fines and penalties imposed by penalty orders of the
Board and fines and penalties imposed by courts of competent jurisdiction for
the violation of municipal ordinances. The Board may seek payment through the
surety bond of any fines or penalties, which the licensee fails to pay.
(3) In lieu of a corporate surety,
an active plumbing contractor may deposit with the Bonds and Insurance Unit the
required amount in lawful money or negotiable bonds of the United States,
accompanied by a written instrument, to be approved by the Construction
Industries Board, executed and acknowledged by the active plumbing contractor,
and setting forth the conditions upon which the deposit is made. When the true
owner is other than the active plumbing contractor making the deposit, the
instrument shall so state and shall also be executed and acknowledged by the
true owner. Upon exoneration, the instrument and deposit may be returned by the
Bonds and Insurance Unit to the depositor or the true owner, if the depositor
is other than the named true owner, after application of the deposit to claims
made pursuant to this Section.
(4)
Notwithstanding any provision of a security instrument to the contrary, every
surety or depositor of security subjects himself or herself to the jurisdiction
of the Construction Industries Board and irrevocably appoints the Administrator
as his or her agent upon whom any papers affecting his or her liability may be
served. Every surety or depositor of security consents to his or her liability
being joint and several. Consequently, judgment may be entered against the
surety, or depositor of security, in accordance with his or her obligation
simultaneously with judgment against the principal, and execution may thereupon
issue.
(5) Plumbing contractors
shall protect, save harmless and indemnify the State and municipalities against
any liability imposed by law against the State and municipalities for the
negligence of said contractor arising from any act or omission while engaged in
work pursuant to the Plumbing License Law.
(6) Any aggrieved person may bring an action
upon the bond for the recovery of penalty thereof to the same extent and with
equal rights as though such aggrieved person had been named as the obligee in
the bond.
(7) For purposes of this
Section, the term plumbing contractor also includes the agents, servants, and
employees of a plumbing contractor.
(f) Exceptions. The bond and insurance
requirement will be waived if:
(1) The
plumbing contractor wishes to be inactive. A contractor may choose to place his
or her license on inactive status and may practice as a journeyman but shall
not practice as an active contractor. The inactive contractor can obtain an
active license at any time if his or her license is valid and the bond and
insurance requirements are met; or
(2) The plumbing contractor is employed by a
corporation, partnership, public entity, or political subdivision and said
corporation, partnership, public entity or political subdivision submits an
affidavit on behalf of the contractor that the employee will only perform
plumbing work on property owned by said corporation, partnership, public
entity, or political subdivision and the employer assumes all financial
responsibility in lieu of the contractor providing bond and insurance. The
affidavit must include a statement by the employer that the Board will be
notified if the contractor is no longer employed by said employer, or if the
employer no longer wishes to assume financial responsibility for the
contractor.
(g)
Insurance. A plumbing contractor shall provide proof of financial
responsibility by providing a certificate of insurance, which indicates a
minimum general liability policy of $50,000. The Construction Industries Board
must be notified in the event such liability policy is cancelled for any reason
or expires for non-payment of premiums. Plumbing contractors are to add the
Construction Industries Board to the certificate as a certificate holder but
not as an additional insured and with no additional cost to ensure required
notification.
(h) Failure to
provide the complete information with current bond and insurance certificate or
failure to maintain bond and insurance will result in an inactive plumbing
contractor's license being temporarily issued until such time as the
requirements are met.
Added at 19 Ok Reg 721,
eff 1-22-02 (emergency); Added at 19 Ok Reg 1264, eff 5-28-02; Amended at 21 Ok
Reg 491, eff 11-14-03 (emergency); Amended at 21 Ok Reg 761, eff 4-26-04;
Amended at 22 Ok Reg 1059, eff 5-26-05; Amended at 25 Ok Reg 1856, eff
6-26-08
