Contractors

Ark. Code Ann. tit. 17, ch. 25

in effect

Ark. Code Ann. § 17-25-101 Definition. [Effective July 1, 2020.]

(a)(1) As used in this chapter, “contractor” means any person, firm, partnership, copartnership, association, corporation, or other organization, or any combination thereof, that for a fixed price, commission, fee, or wage attempts to or submits a bid to construct or demolish, or contracts or undertakes to construct or demolish, or assumes charge, in a supervisory capacity or otherwise, or manages the construction, erection, alteration, demolition, or repair, or has or have constructed, erected, altered, demolished, or repaired, under his or her, their, or its direction, any building, apartment, condominium, highway, sewer, utility, grading, or any other improvement or structure on public or private property for lease, rent, resale, public access, or similar purpose, except single-family residences, when the cost of the work to be done, or done, in the State of Arkansas by the contractor, including, but not limited to, labor and materials, is fifty thousand dollars ($50,000) or more. (2) However, when a person or an entity acts as a contractor in the construction, erection, alteration, demolition, or repair of his or her own or its own property, such action shall not result in the person's or entity's being required to obtain a license, but the person or entity shall comply with all other provisions of this chapter. (b) However, the fifty-thousand-dollar exception shall not apply to any project of construction in which any of the construction work necessary to complete the project, except any in-progress change orders, is divided into separate contracts of amounts less than fifty thousand dollars ($50,000), a purpose being to circumvent the provisions of this chapter. (c) It is the intention of this definition to include all improvements, demolition, or structures, excepting only single-family residences. (d)(1) Materials purchased by a prime contractor from a third party shall not be considered as part of the subcontractor's project if the prime contractor has the proper classification listed on a current contractor's license for the work being performed by the subcontractor. (2) Materials purchased by a person or an entity acting as a contractor in the construction, erection, alteration, or repair of his or her own or its own property from a third party shall not be considered as a part of the subcontractor's project, provided that the subcontract is for wood framing, shingle roofing, painting, floor covering, concrete labor, or installation of playground equipment. (e) “Owner” means a person who owns property or is a lessee of property. (f) “Person” means any natural person, limited or general partnership, corporation, association, limited liability company, trust or other legal entity, and any organization capable of conducting business, or any combination thereof. (g) “Prime contractor” means a contractor who contracts directly with the owner of property. (h) “Subcontractor” means a person who contracts directly with a prime contractor or another subcontractor.

Ark. Code Ann. § 17-25-102 Exemptions. [Effective July 1, 2020.]

The following shall be exempted from the provisions of this chapter: (1) The practice of contracting as defined in § 17-25-101 by an authorized representative or representatives of the United States Government, State of Arkansas, incorporated town, city or county, or other political subdivision in this state; (2) Architects and engineers, whose only financial interest in a project shall be the architectural or engineering fees for preparing plans, specifications, surveys, and supervision that is customarily furnished by architects and engineers; (3)(A) Manufacturers who produce equipment to be installed in the State of Arkansas and have the responsibility for the installation of the equipment, which would require a license under this chapter, if the installation is performed by a contractor properly licensed under this chapter. (B) The Contractors Licensing Board shall have the authority to define “manufacturers” as it is used in this subdivision (3); and (4)(A) Subcontractors of a licensed contractor who are properly registered with the board under this chapter. (B) The board may issue rules necessary for the: (i) Implementation of a registration process; (ii) Determination of application fees for registration; and (iii) Establishment of civil penalties in the same amounts and under the same procedures as for other license holders under this chapter.

Ark. Code Ann. § 17-25-103 Penalties — Enforcement. [Effective July 1, 2020.]

(a)(1) It is a violation of this chapter for any contractor to knowingly do any of the following: (A)(i) For a fixed price, commission, fee, or wage attempt to or submit a bid or bids to construct or demolish or contract to construct or demolish, or undertake to construct or demolish, or assume charge in a supervisory capacity or otherwise, or manage the construction, erection, alteration, demolition, or repair of, or has constructed, erected, altered, demolished, or repaired, under his or her or its direction, any building, apartment, condominium, highway, sewer, utility, grading, or any other improvement or structure, when the cost of the work to be done, or done, in the State of Arkansas by the contractor, including, but not limited to, labor and materials, is fifty thousand dollars ($50,000) or more, without first having procured a license or registration with the proper classification to engage in the business of contracting in this state. (ii) Subdivision (a)(1)(A)(i) of this section does not apply to any demolition work or other work necessary to clean up a natural disaster within seventy-two (72) hours following the natural disaster; (B) Present or file the license or registration certificate of another; (C) Give false or forged evidence of any kind to the Contractors Licensing Board or any member thereof in obtaining a certificate of license or registration; (D) Impersonate another; or (E) Use an expired or revoked certificate of license or registration. (2) A violation under subdivision (a)(1) of this section is a Class A misdemeanor, with each day of activity constituting a separate offense. (b) The doing of any act or thing herein prohibited by any applicant, licensee, or registrant shall, in the discretion of the board, constitute sufficient grounds to refuse a license or registration to an applicant or to revoke the license of a licensee or the registration of a registrant. (c) Regarding any violation of this chapter, the board shall have the power to issue subpoenas and bring before the board as a witness any person in the state and may require the witness to bring with him or her any book, writing, or other thing under his or her control which he or she is bound by law to produce in evidence. (d)(1) Except as provided in subdivision (d)(2) of this section, no action may be brought either at law or in equity to enforce any provision of any contract entered into in violation of this chapter. (2) A contractor in violation of this chapter may bring an action for unjust enrichment or quantum meruit if the contractor: (A) Timely pays all fines, if any, assessed against him or her by the board; and (B) Properly applies to the board for a contractor's license issued under this chapter. (e)(1)(A) Any contractor who, after notice and hearing, is found by the board to have violated or used a contractor in violation of this chapter shall pay to the board a civil penalty of not less than one hundred dollars ($100) nor more than four hundred dollars ($400) per day for the activity. However, the penalty shall not exceed three percent (3%) of the total project being performed by the contractor. (B)(i) The penalty provided for in this chapter plus interest at ten percent (10%) per annum shall be paid to the board before the contractor can be issued a license to engage in the business of contracting in this state. (ii) In addition to the assessment of the penalty, the board, upon a finding of a violation of this chapter, may issue an order of abatement directing the contractor to cease all actions constituting a violation of this chapter. (2) The board shall have the power to withhold approval for up to six (6) months of any application from any person who, before approval of the application, has been found in violation of this chapter. (3) All hearings and appeals therefrom under this chapter shall be pursuant to the provisions of the Arkansas Administrative Procedure Act, § 25-15-201 et seq. (4) No proceedings under this chapter may be commenced by the board after three (3) years from the date on which the act or omission which is the basis for the proceeding occurred. (5) The board shall have the power to file suit in the Pulaski County Circuit Court to obtain a judgment for the amount of any penalty not paid within thirty (30) days of service on the contractor of the order assessing the penalty, unless the circuit court enters a stay pursuant to the provisions of this chapter. (6)(A) The board shall have the power to file suit in the Pulaski County Circuit Court to enforce any order of abatement not complied with within fifteen (15) days, excluding Saturdays, Sundays, and legal holidays, of service on the contractor of the order of abatement. (B) If the circuit court finds the order of abatement to have been properly issued, it may enforce the order by any means by which injunctions are ordinarily enforced. (C) However, nothing shall be construed herein to diminish the contractor's right to appeal and obtain a stay pursuant to the procedures provided for in this chapter.

Ark. Code Ann. § 17-25-104 Injunction. [Effective July 1, 2020.]

When any contractor engages or attempts to engage in the business of contracting as herein defined, in violation of this chapter, the Contractors Licensing Board shall have the right to go into a court where venue is proper and is of competent jurisdiction and, upon affidavit, secure a writ of injunction, without bond, restraining and prohibiting the contractor from performance of the work then being done or about to commence.

Ark. Code Ann. § 17-25-105 Form of indictment.

In all prosecutions for violations of the provisions of this chapter for engaging in the business of contracting without a certificate of authority, it shall be sufficient to allege in the indictment, affidavit, or complaint that “‘A.’ unlawfully engaged in business as a contractor, without authority from the Contractors Licensing Board, State of Arkansas, to do so.”

Ark. Code Ann. § 17-25-107 Abuse, neglect, or exploitation. [Effective July 1, 2020.]

(a) The definitions under § 5-28-101 apply to this chapter. (b) Any contractor licensed or registered under this chapter that is found by the Contractors Licensing Board or the Residential Contractors Committee to have abused, neglected, or exploited an endangered person or an impaired person while engaging in performing the services of a contractor as defined under § 17-25-101 is subject to emergency license or registration suspension under §§ 17-25-309 and 17-25-510. (c) The board may provide evidence, documentation, reports, and information related to the abuse, neglect, or exploitation of an endangered person or an impaired person to any entity with the authority to enforce § 5-28-101 et seq.

Ark. Code Ann. § 17-25-201 Creation — Members.

(a) There is created a Contractors Licensing Board, consisting of seven (7) members, who shall be appointed by the Governor. (b)(1) Each member shall be at least thirty-five (35) years of age and must have been a resident of the State of Arkansas for the previous five (5) years. (2)(A) Five (5) members shall be contractors of not fewer than ten (10) years' experience in responsible charge of construction projects of a magnitude consistent with the duties of their offices. Each must hold an unexpired contractor's license issued under this chapter. Each must, at the time of appointment, maintain his or her principal place of business in Arkansas. (B) At least one (1) member of the board shall have had as a larger part of his or her business the construction of sewers and waterworks. (C) At least one (1) member of the board shall have had as a larger part of his or her business the construction of buildings. (D) At least one (1) member of the board shall have had as a larger part of his or her business the construction of highways. (3) Two (2) members of the board shall not be actively engaged in or retired from the profession of contracting. One (1) shall represent consumers, and one (1) shall be sixty (60) years of age or older and shall represent the elderly. Both shall be appointed from the state at large subject to confirmation by the Senate. The two (2) positions may not be held by the same person. Both shall be full voting members but shall not participate in the grading of examinations. (c)(1) Members shall serve five-year terms. (2) Terms shall expire on December 31 of the fifth year. (3) Each member shall hold over after the expiration of his or her term until his or her successor shall be duly appointed and qualified. (4) If a vacancy shall occur in the board for any cause, it shall be filled by appointment by the Governor. (5) The Governor may remove any member of the board at any time for misconduct, incompetency, or neglect of duty. (d) Each member of the board shall receive a certificate of appointment from the Governor and, before entering upon the discharge of the duties of his or her office, shall file with the Secretary of State the constitutional oath of office. (e) Each member of the board may receive expense reimbursement and stipends in accordance with § 25-16-901 et seq.

Ark. Code Ann. § 17-25-202 Organization and functions.

(a) The Contractors Licensing Board shall elect a chair, vice chair, and secretary, each to serve in his or her respective capacity for one (1) year. Officers shall be elected by the board annually. (b) The board shall have two (2) regular meetings in each year. One (1) meeting shall be in the month of February, and one (1) meeting shall be in the month of August, for the purpose of transacting such business as may properly come before it, on call of the Chair of the Contractors Licensing Board. (c) Special or adjourned meetings may be held at such times as the board may provide by the bylaws which it shall adopt, or at such times as the board may, by reasonable resolution, provide. (d) Due notice of each meeting and the time and place thereof shall be given to each member in such manner as the bylaws shall provide. (e) Three (3) members of the board shall constitute a quorum. (f) The board shall adopt a seal for its own use and shall have on it the words, “Contractors Licensing Board, State of Arkansas, Seal”, and the secretary shall have charge and custody of it.

Ark. Code Ann. § 17-25-203 Powers.

(a) The Contractors Licensing Board shall have power to make such bylaws and rules for its operation as it shall consider appropriate, provided that they are not in conflict with the laws of the State of Arkansas. (b) All expenses incurred by the board for the administration of this chapter are authorized to be paid by the board. (c) The board, or any committee thereof, shall be entitled to the services of the Attorney General or other state legal counsel as deemed appropriate, in connection with the operation of the affairs of the board. Additional legal counsel may be employed by the board from time to time as it may deem necessary.

Ark. Code Ann. § 17-25-204 Employees.

The Contractors Licensing Board in consultation with the Secretary of the Department of Labor and Licensing may employ a chief administrative employee, also known as “administrator”, who shall possess such qualifications as may be determined by the board and who shall serve at the pleasure of the board. In addition, the board may employ such additional professional and clerical employees as may be necessary for the operation of the board and its various functions and pay salaries thereto as may be authorized by law.

Ark. Code Ann. § 17-25-205 Disposition of funds.

The fees of the Contractors Licensing Board shall be deposited into banks to be used by the Contractors Licensing Board in the manner prescribed by law, similar to the accounts of other examining and licensing boards of the state, and shall be audited under rules prescribed by the Secretary of the Department of Finance and Administration.

Ark. Code Ann. § 17-25-206 Records and reports.

(a) The Secretary of the Contractors Licensing Board shall keep a record of the proceedings of the Contractors Licensing Board. (b) The Secretary of the Contractors Licensing Board shall keep a register of all applications for license showing for each: (1) The date of application, name, qualification, place of business, and place of residence; (2) Whether the license was granted or refused; and (3) A complete transcript of the proceedings, including evidence submitted by applicants, licensees, the board, or otherwise, at any hearing. (c) The books and register of this board, including transcripts of proceedings, shall be prima facie evidence of all matters recorded therein. A certified copy of such books or register, including a transcript of proceedings, under the seal of the board and attested by the Secretary of the Contractors Licensing Board, shall be received in evidence in all courts of the state in lieu of the original. (d) A roster showing the names and places of business and of residence of all licensed contractors shall be prepared annually by the secretary. (e) On or before August 1 of each year, the board shall submit to the Secretary of the Department of Labor and Licensing a report of its transactions for the preceding year and shall file with the Secretary of State a copy of the report, together with a complete statement of receipts and expenditures of the board attested by the affidavit of the Chair of the Contractors Licensing Board and the Secretary of the Contractors Licensing Board and a copy of the roster of licensed contractors. (f) A record shall be made and preserved by the board of each examination of applicant or licensee. The findings of the board thereon and a certified copy of the record shall be furnished to any applicant or licensee desiring to appeal from the findings of the board, as provided in § 17-25-312, upon payment of the costs of transcribing the record.

Ark. Code Ann. § 17-25-301 Significance — Proof. [Effective July 1, 2020.]

(a) The issuance of a certificate of license or registration by the Contractors Licensing Board shall be evidence that the person, firm, or corporation named on the certificate of license or registration is entitled to all of the rights and privileges of a licensed or registered contractor while the license or registration remains unrevoked or unexpired. (b)(1) Upon making application to the building inspector or other authority of any incorporated city or town in Arkansas charged with the duty of issuing building or other permits for the construction of any building, apartment, condominium, utility, highway, sewer, grading, or any other improvement or structure, when the cost of the work to be done by the contractor, but not limited to labor and materials, is fifty thousand dollars ($50,000) or more, any person, firm, or corporation, before being entitled to the issuance of such permits, shall furnish satisfactory proof to the inspector or authority that he or she is duly licensed under the terms of this chapter. (2) It shall be unlawful for the building inspector or other authority to issue or allow the issuance of a building permit unless and until the applicant has furnished evidence that he or she is either exempt from the provisions of this chapter or is duly licensed under this chapter to carry out or superintend the work for which the permit has been applied.

Ark. Code Ann. § 17-25-302 Limitations. [Effective July 1, 2020.]

The Contractors Licensing Board shall have power to limit by proper classification the license or registration to the character of work for which the applicant is qualified.

Ark. Code Ann. § 17-25-303 Application — Renewal — Fees. [Effective July 1, 2020.]

(a)(1)(A) A person desiring to be licensed or registered as a contractor in this state shall make and file with the Contractors Licensing Board thirty (30) days before any regular or special meeting of the board, a written application on a form prescribed by the board, for examination by the board. (B) The application shall be accompanied by payment in a sum to be determined by the board, but not to exceed one hundred dollars ($100) to the board. (2) The thirty-day requirement may be waived by the board provided that the contractor has on file with the board a completed original application and proof of having successfully completed any examination required. (b) Thereafter, an annual renewal license or registration fee to be determined by the board but not to exceed one hundred dollars ($100) shall be paid by each licensee or registrant to defray the costs and expenses of the administration of this chapter.

Ark. Code Ann. § 17-25-304 Financial statement — Surety bond. [Effective July 1, 2020.]

(a)(1) All persons and entities required by this chapter to be licensed by the Contractors Licensing Board shall transmit to the board with their original and renewal applications a financial statement of the applicant reviewed by a licensed certified public accountant or licensed public accountant in accordance with the American Institute of Certified Public Accountants Statements on Standards for Accounting and Review Services. (2) However, if the total cost of the work to be completed by the applicant, including without limitation labor and materials, is less than one million five hundred thousand dollars ($1,500,000) for a single commercial project, the applicant shall transmit to the board with his or her original and renewal applications a compiled financial statement of the applicant prepared by a licensed certified public accountant or licensed public accountant in accordance with the American Institute of Certified Public Accountants Statements on Standards for Accounting and Review Services. (b)(1) The financial statement shall not be made public information and shall not be made available for inspection by any person, except pursuant to an order of a court of competent jurisdiction. (2) After the contractor is licensed, the board has the option of: (A) Destroying the financial statement by the process of shredding; or (B) Returning the financial statement to the contractor. (c)(1) In lieu of providing a financial statement for a person or entity required to be licensed or registered by the board as required by subsections (a) and (b) of this section, an applicant may provide a surety bond from: (A) A surety authorized to transact surety business in the State of Arkansas; and (B) A surety listed on the current United States Department of the Treasury's List of Approved Sureties. (2) The surety bond shall be in an amount ten (10) times the required net worth for the applicant's license or registration classification with his or her initial or renewal application. (3) The surety bond provided under this subsection shall: (A) Be continuous in form; (B)(i) Be maintained in effect for as long as the applicant maintains the license or registration issued by the board. (ii) If an applicant submits a financial statement acceptable to the board, the surety bond may be canceled; (C)(i) List the State of Arkansas as obligee for the bond. (ii) The state shall have priority over all other claims to recover against the bond; (D) Be for the benefit of any person who is damaged by: (i) An act or omission of the applicant constituting a breach of a construction contract or a contract for the furnishing of labor, materials, or professional services for construction undertaken by the applicant; or (ii) An unlawful act or omission of the applicant in performing the services of a contractor as defined under § 17-25-101; and (E) Be in addition to, and not in lieu of, any other surety bond required of the applicant by law or rule, or by any party to a contract with the applicant. (4)(A) The surety bond provided in this subsection may only be canceled by notification to the board by the surety and the applicant sixty (60) days before cancellation. (B) When the surety bond is canceled, the licensee or registrant shall provide a replacement bond or submit a financial statement as required by this section before the effective date of the cancellation or the license or registration of the licensee or registrant shall be suspended. (5) The board may adopt rules necessary to enforce this subsection.

Ark. Code Ann. § 17-25-305 Applicant qualifications.

(a) The Contractors Licensing Board, in determining the qualifications of any applicant for an original license or any renewal license, shall, among other things, consider the following: (1) Experience; (2) Ability; (3) The manner of performance of previous contracts; (4) Financial condition; (5) Equipment; (6) Any other fact tending to show ability and willingness to conserve the public health and safety; and (7) Default in complying with the provisions of this chapter or another law of the state. (b) The board may develop reciprocal agreements with other states with similar licensing responsibilities. (c) In addition to the offenses listed in § 17-3-102, the board may consider the following offenses when determining fitness for licensure or registration of a contractor under this chapter: (1) Conviction of a crime with an element of dishonesty or fraud under the laws of this state, another state, or the United States; (2) Conviction of voyeurism as prohibited in §§ 5-16-101 and 5-16-102; (3) Conviction under the Arkansas Hot Check Law, § 5-37-301 et seq.; and (4)(A) A crime or act that is substantially related to the qualifications, functions, or duties of a contractor. (B) A crime or act may be deemed substantially related to the qualifications, functions, or duties of a contractor if, to a substantial degree, the crime or act evidences present or potential unfitness of a person applying for or holding a contractor's license or registration to perform the functions authorized by the license or registration.

Ark. Code Ann. § 17-25-306 Examinations — Certification.

(a) Any person desiring to apply for a license shall be permitted to take an examination to determine the applicant's qualifications. (b) If the result of the examination of any applicant shall be satisfactory to the Contractors Licensing Board, and if the application complies with the board's rules, then the board shall issue to the applicant a certificate to engage in contracting in the State of Arkansas. (c) Anyone failing to pass the examination may be reexamined at any regular meeting of the board upon payment of the regular fee.

Ark. Code Ann. § 17-25-307 Expiration.

(a) All certificates of license or registration to engage in performing the services of a contractor as defined under § 17-25-101 in the State of Arkansas shall expire at 12:00 midnight on the day before the anniversary date of issuance unless otherwise designated by the Contractors Licensing Board, and all certificates of license or registration shall become invalid on that day unless renewed. (b) A registration may be renewed for a period of one (1) year, two (2) years, or three (3) years with the fee of one hundred dollars ($100) per year.

Ark. Code Ann. § 17-25-308 Grounds for revocation. [Effective July 1, 2020.]

(a) The Contractors Licensing Board may revoke the certificate of license or registration of any contractor licensed or registered under this chapter who is found guilty of any fraud or deceit in obtaining a license or registration or for aiding or abetting any contractor or person to violate the provisions of this chapter or for gross negligence, incompetence, or misconduct in the conduct of the contractor's business. (b) The board may revoke the certificate of license of a contractor licensed under this chapter who fails to obtain or maintain workers' compensation coverage as required under the Workers' Compensation Law, § 11-9-101 et seq., and § 17-25-514.

Ark. Code Ann. § 17-25-309 Procedure for revocation — Reissuance — Emergency suspension. [Effective July 1, 2020.]

(a) Any person may prefer charges in connection with the foregoing against any contractor licensed or registered under this chapter. (b) The charges shall be in writing and sworn to by the complainant and mailed to the Contractors Licensing Board and, unless dismissed without hearing by the board as unfounded or trivial, shall be heard and determined by the board. (c) A time and place for the hearing shall be fixed by the board, and the hearing shall be held in the State of Arkansas. (d) A copy of the charges, together with the notice of the time and place of hearing, shall be considered as legally served by the board when sent to the last known address of the accused by certified mail at least ten (10) days before the date fixed for the hearing. In the event that such service cannot be effected ten (10) days before the hearing, then the date of hearing and determination shall be postponed as may be necessary to permit the carrying out of this condition. (e) At the hearing the accused contractor shall have the right to appear personally and by counsel and to cross-examine witnesses and to submit evidence in the contractor's behalf and defense. (f) If after the hearing the board finds the facts as alleged and of such character as to disqualify the contractor, then the board shall revoke the license or registration of the contractor, but in that event no refund shall be made of the license or registration fee. (g) Within its discretion and upon proper application or hearing, the board may reissue a license or registration to any contractor whose license or registration has been revoked. (h)(1) When abuse, neglect, or exploitation of an endangered person or an impaired person is found by the board to have occurred, the board may: (A) State in writing that due to imminent physical or other harm to the endangered person or impaired person, the situation merits the emergency suspension of a license or registration; and (B) Proceed with the suspension of a license or registration without a hearing or upon any abbreviated hearing that the board finds practicable to suspend the license or registration. (2) The emergency suspension shall become effective immediately, unless otherwise stated in the written determination by the board. (3) The emergency suspension may be effective for a period of thirty (30) days or less and the emergency suspension shall not be renewable. (4) When an emergency suspension is ordered, a formal suspension or revocation proceeding shall be promptly instituted and acted upon in accordance with the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

Ark. Code Ann. § 17-25-310 Replacement. [Effective July 1, 2020.]

A certificate of license or registration to replace any lost, destroyed, or mutilated certificate may be issued subject to the rules of the Contractors Licensing Board.

Ark. Code Ann. § 17-25-311 Corporations and partnerships — Unlawful acts.

(a) A corporation or partnership may engage in the business of contracting when licensed by the Contractors Licensing Board. (b) It shall be unlawful and a violation of this chapter for any two (2) or more contractors, whether doing business as individuals, partnerships, corporations, or other organizations, to jointly submit a bid or enter into a contract for construction as a joint venture unless all parties to the joint venture are licensed pursuant to this chapter. (c) Any combination of contractors other than a joint venture shall obtain a license for the combination before submitting a bid.

Ark. Code Ann. § 17-25-312 Review.

Any party aggrieved by any decision of the Contractors Licensing Board shall have the right to seek review thereof pursuant to the provisions of the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

Ark. Code Ann. § 17-25-313 License requirements to accompany invitation to bid.

All architects and engineers preparing plans and specifications for work to be contracted in the State of Arkansas shall include in their invitation to bidders and in their specifications a copy of this chapter or such portions thereof as are deemed necessary to convey to the invited bidder, whether he or she is a resident of this state or not, the information that it will be necessary for him or her to have a certificate of license with the proper classification from the Contractors Licensing Board before his or her bid is submitted.

Ark. Code Ann. § 17-25-315 Rules — Federally funded projects — Contractor qualifications.

(a)(1) The Contractors Licensing Board shall have the power to promulgate rules for the efficient enforcement of this chapter and shall also have the power to assign the right or give permission to any state agency, board, or commission to determine qualifications of a contractor solely for the purpose of submitting a bid to the state agency, board, or commission on projects involving federal aid funds before the contractor's being licensed by the Contractors Licensing Board. (2) No state agency, board, or commission shall execute any construction contract involving federal aid funds unless and until the successful bidder for the project furnishes a certificate of license issued by the Contractors Licensing Board. (b)(1) The Contractors Licensing Board shall have the power to provide by rule for any political subdivision or other political corporation to accept bids from unlicensed contractors for projects involving federal funds. (2) However, no contractor shall submit a bid under this section before submitting application for licensure, and no political subdivision or political corporation shall execute any construction contract unless and until the successful bidder for the project furnishes an appropriate license issued by the Contractors Licensing Board.

Ark. Code Ann. § 17-25-316 Workers' compensation coverage required. [Effective July 1, 2020.]

(a) A contractor required to be licensed or registered by the Contractors Licensing Board shall obtain and maintain workers' compensation coverage as required under the Workers' Compensation Law, § 11-9-101 et seq. (b) The board shall require proof of current workers' compensation coverage before issuing or renewing a license or registration to a contractor required to have workers' compensation coverage under the Workers' Compensation Law, § 11-9-101 et seq. (c)(1) If a contractor fails to maintain workers' compensation coverage or fails to maintain proof of current workers' compensation coverage on file with the board, the board may revoke or suspend the contractor's license or registration. (2) A contractor's license or registration that has been revoked or suspended due to failure to maintain workers' compensation coverage may be reinstated upon receipt by the board of proof that the contractor has secured workers' compensation coverage. (d) The board shall promulgate rules necessary to enforce this section.

Ark. Code Ann. § 17-25-317 Lifetime certificate of license as a contractor.

(a)(1) Upon reaching the age of sixty-five (65), or any time thereafter, any individual who has received a certificate of license as a contractor from the Contractors Licensing Board for not less than twelve (12) years may apply for a lifetime certificate of license as a contractor. (2) The lifetime certificate of license as a contractor shall be issued upon satisfactory proof of age and upon payment of a one-time fee of sixty-five dollars ($65.00). (3) The annual renewal fee for a lifetime license shall be waived if all required information is provided on the renewal application. (b) An individual issued a lifetime certificate of license as a contractor shall maintain: (1) All bonds as required by law or rule of the board for any period in which any work as a contractor is performed for remunerative purposes, whether as an employee or an independent contractor; and (2) Workers' compensation coverage as required under the Workers' Compensation Law, § 11-9-101 et seq., and § 17-25-514.

Ark. Code Ann. § 17-25-401 Definition. [Effective July 1, 2020.]

(a)(1) As used in this subchapter, “contractor” means a person, firm, joint venture, partnership, copartnership, association, corporation, or other organization engaged in the business of the construction, alteration, dismantling, demolition, or repairing of roads, bridges, viaducts, sewers, water and gas mains, streets, disposal plants, water filters, tanks, towers, airports, buildings, dams, levees, canals, railways and rail facilities, oil and gas wells, water wells, pipelines, refineries, industrial or processing plants, chemical plants, power plants, electric, telephone, or any other type of energy or message transmission lines or equipment, or any other kind of improvement or structure. (2) As used in this subchapter, “contractor” includes: (A) All original, prime, and general contractors; and (B) A contractor who is required to obtain a contractor's license or registration under the state licensing law of this state, § 17-25-101 et seq. (b) However, when a person or entity acts as a contractor in the construction, erection, alteration, or repair of his or her own or its own property or of a single-family residence, or if the cost of the work to be done, including, but not limited to, labor and materials, is less than fifty thousand dollars ($50,000), the person or entity shall not be deemed a contractor under this chapter.

Ark. Code Ann. § 17-25-402 Expenses — Disposition of funds.

(a) All expenses incurred by the Contractors Licensing Board for the administration of this subchapter are authorized to be paid by the board. (b)(1) All taxes, premiums, contributions, penalties, interest, and fines collected pursuant to this subchapter, except enforcement penalties, shall be distributed pro rata, based upon the amount of taxes, premiums, and contributions due to the Department of Finance and Administration, the Division of Workforce Services, the Workers' Compensation Commission, or any city, county, or school district, or any other state agency or other political subdivision of the state, first to the extent of any taxes, premiums, and contributions due with any remainder applied to interest, penalties, and fines, in that order. (2) All enforcement penalties assessed to a contractor pursuant to the provisions of this subchapter shall be paid directly to the board to defer the cost of enforcement. (c) The board may employ such additional professional and clerical employees as may be necessary and pay salaries thereto as authorized by law.

Ark. Code Ann. § 17-25-403 Liability of customer.

(a)(1) In the event the contractor fails to honor its financial obligations to the State of Arkansas or to any city, county, school district, state agency, or other political subdivision of the state, the customer for whom the work was being performed shall be responsible for all financial obligations of the contractor to the State of Arkansas or to any city, county, school district, state agency, or other political subdivision of the state, on that customer's project, provided that the customer receives written notice of the contractor's failure to comply with this subchapter before final payment to the contractor. (2) The responsibility of the customer shall not exceed any amount owed to the contractor on or after the date the customer receives the written notice. (3) The written notice shall be sent by certified mail, return receipt requested, and must include the maximum amount of all financial obligations the contractor may potentially owe to the State of Arkansas or to any city, county, school district, state agency, or other political subdivision of the state, arising from that customer's project. (b)(1) As used in this section, “financial obligations” includes, but is not limited to, civil penalties imposed by the State of Arkansas or any city, county, school district, state agency, or other political subdivision of the state. (2) Civil penalties imposed pursuant to § 17-25-103(e)(1)(A) and § 17-25-408 for violations of the provisions of this chapter arise from and are connected to the customer's project, and the provisions of this section apply thereto.

Ark. Code Ann. § 17-25-404 Bond — Filing — Terms.

(a)(1) Before commencing work or undertaking to perform any services or duties in the state, a contractor shall file with the Contractors Licensing Board as the depository agency a surety bond of a surety authorized to do business in this state or a cash bond. (2) The bond shall be a condition of licensure, and a contractor's license shall not be released until the bond has been properly filed. (b) The bond shall be: (1) In a penal sum of ten thousand dollars ($10,000); (2) Payable to the State of Arkansas; and (3) Conditioned on the contractor's complying with the tax laws of the State of Arkansas and, when applicable, the ordinances, rules, and regulations of any city, county, school district, state agency, or other political subdivision of the state, the Division of Workforce Services Law, § 11-10-101 et seq., the Workers' Compensation Law, § 11-9-101 et seq., and the provisions of this subchapter.

Ark. Code Ann. § 17-25-406 Notice of bond cancellation.

(a)(1) Notice of bond cancellation shall be given to the Contractors Licensing Board in writing sixty (60) days before cancellation. The board shall notify the Department of Finance and Administration, the Division of Workforce Services, and the Workers' Compensation Commission of the notice of cancellation. (2) It shall be the responsibility of each governmental agency to make any claims against the bond in accordance with state law for collection of any taxes, premiums, contributions, penalties, interest, or fines within the statute of limitations of the appropriate state law. (b) A contractor's license that has become invalid due to bond cancellation may be reinstated upon receipt of a proper replacement bond.

Ark. Code Ann. § 17-25-408 Failure to comply — Penalties — Enforcement.

(a) The fact that a contractor is performing or has performed work in Arkansas and compliance as required by this subchapter has not been met shall constitute prima facie evidence of failure to comply. (b) Upon notice to the contractor and a hearing thereon, if requested by the contractor or if deemed appropriate by the Contractors Licensing Board or any committee thereof, should it be determined that a violation exists, the board or committee may assess a penalty for noncompliance in a sum not to exceed five percent (5%) of the value of the contract performed, and upon a finding of a second or subsequent violation, the contractor may be assessed a penalty equal to ten percent (10%) of the value of the contract performed. Further, any contractor found in violation for a second or subsequent violation of this subchapter may lose its contractor's license for a period of one (1) year. The board or committee may also issue an order to cease and desist the work pending compliance. (c) Failure of a contractor to comply with the provisions of this subchapter shall be grounds for revocation of any license issued to the contractor by the board. (d) Enforcement of the bond filing requirements contained herein shall be the responsibility of the board. (e) The board shall have the power to make such rules for enforcement as it may consider appropriate and not in conflict with Arkansas law.

Ark. Code Ann. § 17-25-409 Proceedings upon violation.

(a) Regarding any violation of this subchapter, the Contractors Licensing Board shall have the power to issue subpoenas and bring before the board as a witness any person in the state and may require the witness to bring with him or her any book, writing, or other thing under his or her control which he or she is bound by law to produce in evidence. (b) No proceedings under this section may be commenced by the board after three (3) years from the date on which the act or omission which is the basis for the proceeding occurred. (c) The board shall have the power to file suit in the Pulaski County Circuit Court to enforce any cease and desist order not complied with within fifteen (15) days, excluding Saturdays, Sundays, and legal holidays, of service on the contractor of the order. If the circuit court finds the order to have been properly issued, it may enforce it by any means by which injunctions are ordinarily enforced. However, nothing shall be construed herein to diminish the contractor's right to appeal. (d) All hearings and appeals therefrom under this section shall be pursuant to the provisions of the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

Ark. Code Ann. § 17-25-501 Purpose.

It is the intent of this subchapter to protect homeowners and the purchasers of homes constructed in this state by establishing reasonable and adequate licensing and regulation of homebuilders and home improvement contractors. It is intended that this subchapter apply to everyone not specifically excluded. It is also the intent of this subchapter that the Residential Contractors Committee be located with the Contractors Licensing Board and that the staff and appropriation for the board be utilized to implement this subchapter.

Ark. Code Ann. § 17-25-502 Definitions.

As used in this subchapter: (1) “Home improvement contractor” means any person, firm, partnership, copartnership, association, corporation, or other organization or any combination that attempts to or submits a bid or contracts, undertakes, or assumes charge in a supervisory capacity or otherwise manages the reconstruction, alteration, renovation, repair, modification, improvement, removal, demolition, or addition to any preexisting single family residence or the property and structures appurtenant thereto; (2) “Residential building contractor” means any person, firm, partnership, copartnership, association, corporation, or other organization or any combination, which for a fixed price, commission, fee, or wage, attempts to or submits a bid to construct or contract or undertakes to construct or assumes charge in a supervisory capacity or otherwise manages the construction of a single family residence or the property and structures appurtenant thereto; and (3) “Single family residence” means any project consisting of at least one (1) but not more than four (4) units of new construction for residential occupancy.

Ark. Code Ann. § 17-25-503 Committee established — Members — Expenses — Administrative support.

(a)(1) There is created the Residential Contractors Committee, to consist of seven (7) members. (2)(A)(i) The Governor shall appoint five (5) persons, each of whom has at least five (5) years' experience in residential construction. (ii) The Governor shall consult the statewide trade organization or organizations that represent the residential construction industry before making an appointment under this section. (iii) Of the five (5) residential construction members, one (1) member shall be appointed from each of the four (4) congressional districts, and the remaining member shall be appointed from the state at large. (iv) The appointments made under this subdivision (a)(2)(A) shall be subject to confirmation by the Senate. (B)(i) Two (2) members of the committee shall not be actively engaged in or retired from the profession of residential contracting. (ii) One (1) shall represent consumers, and the other shall be at least sixty (60) years of age. (iii) Both shall be appointed by the Governor from the state at large, subject to confirmation by the Senate. (iv) These two (2) positions may not be held by the same person. (v) Members appointed to these two (2) positions shall be full voting members but shall not participate in the grading of examinations. (C) The members shall serve three-year terms. No member may serve more than three (3) three-year terms. (3)(A) The committee shall elect a chair, vice chair, and secretary, each to serve in his or her respective capacity for one (1) year. (B) Officers shall be elected by the committee annually. (4) Three (3) voting members shall constitute a quorum. (b) Committee members shall receive the same expense reimbursement and stipend as provided to the Contractors Licensing Board under the procedures prescribed by § 25-16-901 et seq. Expenses and stipends shall be paid by the board. (c) The Governor shall make appointments to fill vacancies in the same manner as appointments were made under subsection (a) of this section. Persons appointed to fill vacancies shall serve the unexpired term of office and shall possess the same qualifications as if they were being appointed to a full term on the committee. (d) The board shall provide staff and administrative support for the committee.

Ark. Code Ann. § 17-25-504 Authority.

The Residential Contractors Committee may: (1) Issue, modify, suspend, and revoke licenses issued by the committee; (2) Establish qualifications for licenses issued by the committee; (3) Enforce this subchapter and the committee's rules; (4) Issue rules necessary for the implementation of this subchapter; (5) Levy civil penalties under this subchapter; (6) Issue orders of abatement in the same manner and to the same extent as authorized for the Contractors Licensing Board under § 17-25-103; and (7) Seek any other civil remedies which are available to the board.

Ark. Code Ann. § 17-25-505 License from committee required. [Effective July 1, 2020.]

(a) A person shall not act as a residential building contractor after July 1, 2001, unless licensed by the Residential Contractors Committee or exempted from licensure under this subchapter. (b) A person shall not act as a home improvement contractor after January 1, 2012, unless: (1) Licensed by the committee; or (2) Exempt from licensure under this subchapter. (c) Any person, firm, partnership, copartnership, association, corporation, limited liability company, or other organization that fails to procure a license as required under this subchapter shall be deemed guilty of a Class A misdemeanor with each day in violation of the requirement to constitute a separate offense.

Ark. Code Ann. § 17-25-506 Application for license.

(a) Applications for licensure shall be made on forms prescribed by the Residential Contractors Committee and shall have attached thereto: (1)(A) Except as provided in subdivision (a)(1)(B) of this section, a compiled financial statement with each application for all persons and entities required by this subchapter to be licensed by the committee when the cost of the work done or to be done in the State of Arkansas by the contractor, including without limitation labor and materials, is fifty thousand dollars ($50,000) or more. (B) A person or entity required to be licensed under this subchapter when the cost of the work done or to be done in the State of Arkansas by the contractor, including without limitation labor and materials, is less than fifty thousand dollars ($50,000) shall not be required to submit a financial statement; and (2) Such other information as required by the committee. (b)(1) The financial statement required with each application is not public information and may not be made available for inspection by any person, unless by an order of a court of competent jurisdiction. (2) After the contractor is licensed, the Contractors Licensing Board shall destroy the financial statement by the process of shredding or returning the financial statement to the contractor.

Ark. Code Ann. § 17-25-507 Applicant qualifications.

(a) In determining the qualifications of any applicant for original license or any renewal license, the Residential Contractors Committee shall consider, among other things, the following: (1) Experience; (2) Ability; (3) The manner of performance of previous contracts; (4) Financial condition; (5) Any other fact tending to show ability and willingness to conserve the public health and safety; and (6) Default in complying with the provisions of this subchapter or any other law of the state. (b) The committee may limit a license issued by the committee to the character of work for which the applicant is qualified to perform. (c) In addition to the offenses listed in § 17-3-102, the committee may consider the following offenses when determining fitness for licensure or registration of a contractor under this subchapter: (1) Conviction of a crime with an element of dishonesty or fraud under the laws of this state, another state, or the United States; (2) Conviction of voyeurism as prohibited in §§ 5-16-101 and 5-16-102; (3) Conviction under the Arkansas Hot Check Law, § 5-37-301 et seq.; and (4)(A) A crime or act that is substantially related to the qualifications, functions, or duties of a contractor. (B) A crime or act may be deemed substantially related to the qualifications, functions, or duties of a contractor if, to a substantial degree, the crime or act evidences present or potential unfitness of a person applying for or holding a contractor's license or registration to perform the functions authorized by the license or registration.

Ark. Code Ann. § 17-25-508 Name of licensed contractor.

Contractors licensed under this subchapter may act as such only in the name under which they are licensed by the Residential Contractors Committee.

Ark. Code Ann. § 17-25-509 Written examination.

(a) Except as otherwise provided in this section, a person shall not be licensed as a residential building contractor unless the person has passed a written examination prescribed by the Residential Contractors Committee. (b)(1) Until January 1, 2012, the committee shall waive the written examination for a person who: (A) Submits proof of having obtained five (5) building permits within the three (3) years preceding the date of application; (B) Submits proof of having obtained one (1) building permit within the preceding twelve (12) months; or (C) Submits proof of experience in construction acceptable to the committee. (2) Subdivision (b)(1) of this section does not apply to applicants for a residential builder license.

Ark. Code Ann. § 17-25-510 Hearings regarding violations — Emergency suspension. [Effective July 1, 2020.]

(a) The Residential Contractors Committee may conduct hearings regarding alleged violations of this subchapter or rules promulgated thereunder, and the hearings shall be conducted in accordance with the Arkansas Administrative Procedure Act, § 25-15-201 et seq. The committee shall within a reasonable time make findings and determinations as a result of the hearings. (b) A contractor who, after notice and hearing, is found to have committed the following actions shall pay to the Contractors Licensing Board a civil penalty of not less than one hundred dollars ($100) nor more than four hundred dollars ($400) for each day that the violation occurred: (1) Acting as a contractor without having a valid license in violation of this chapter; (2) Using a contractor in violation of this chapter; (3) Presenting or filing the license certificate of another; (4) Giving false or forged evidence of any kind to the board in obtaining a certificate of license; (5) Using an expired or revoked certificate of license; (6) Giving false or fraudulent evidence of a contractor's license to another person or entity; or (7) Committing other violations under this chapter. (c) The committee may revoke the certificate of license of any contractor licensed under this subchapter who is found guilty of: (1) Fraud or deceit in obtaining a license; (2) Aiding or abetting a contractor or person to violate this chapter; or (3) Gross negligence, incompetence, or misconduct in the contractor's business. (d)(1) When abuse, neglect, or exploitation of an endangered person or an impaired person is found by the committee to have occurred, the committee may: (A) State in writing that due to imminent physical or other harm to the endangered person or impaired person, the situation merits the emergency suspension of a license or registration; and (B) Proceed with the suspension of a license or registration without a hearing or upon any abbreviated hearing that the committee finds practicable to suspend the license or registration. (2) The emergency suspension shall become effective immediately, unless otherwise stated in the written documentation by the committee. (3) The emergency suspension may be effective for a period of longer than thirty (30) days and the emergency suspension shall not be renewable. (4) When an emergency suspension is ordered, a formal suspension or revocation proceeding shall be promptly instituted and acted upon in accordance with the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

Ark. Code Ann. § 17-25-511 Appeal from committee decision.

Any person aggrieved by an action or decision of the Residential Contractors Committee may appeal to the Contractors Licensing Board within ten (10) calendar days after the action or decision under procedures prescribed by the board. Aggrieved parties shall be granted an opportunity to address the board regarding the committee's actions, and the final actions of the board shall be binding upon the committee.

Ark. Code Ann. § 17-25-512 Expiration of license — Fees.

(a)(1) All licenses issued by the Contractors Licensing Board shall expire one (1) year after the date of issuance unless otherwise provided by the Residential Contractors Committee. (2) The committee may charge reasonable examination fees and delinquency fees and may charge a fee not to exceed one hundred dollars ($100) for new licenses or renewal of a license. (3) All fees and other moneys collected by the committee shall be disposed of as provided by § 17-25-205 and shall be used by the board to implement this subchapter. (b) The committee may provide by rule for renewal of licenses for a period of one (1) year, two (2) years, or three (3) years with the fee not to exceed one hundred dollars ($100) per year.

Ark. Code Ann. § 17-25-513 Exemptions.

The following shall be exempted from the licensing requirements of this subchapter: (1) A person who acts as a residential building contractor in the construction of his or her residence unless he or she builds more than one (1) residence during any calendar year; (2) The owner of a single family residence acting as his or her own home improvement contractor on his or her own property; (3)(A) A person or entity acting as a residential building contractor or a home improvement contractor on any project, when the cost of the work done or to be done does not exceed two thousand dollars ($2,000). (B) Subdivision (3)(A) of this section shall not apply to a project in which the construction work necessary to complete the project is divided into separate contracts of amounts less than two thousand dollars ($2,000); (4) A subcontractor of a contractor licensed by the Residential Contractors Committee; and (5) A person or entity licensed as a contractor by another licensing agency, board, or commission of the State of Arkansas if the contractor is performing work within the scope of the license held by the person or entity. (6) A person or entity performing work as a roofing contractor as defined under § 17-25-601 et seq.

Ark. Code Ann. § 17-25-514 Workers' compensation required.

(a) A contractor required to be licensed by the Residential Contractors Committee shall secure and maintain workers' compensation coverage as required under § 11-9-401 et seq. (b) The committee shall require proof of current workers' compensation coverage before issuing or renewing a license to a contractor who is required to have workers' compensation coverage under § 11-9-401 et seq. (c) Unless otherwise required by law, a home improvement contractor required to be licensed under this subchapter shall not be required to secure the payment of workers' compensation under § 11-9-401 et seq. or provide proof of coverage to the committee before issuing or receiving a license if the cost of the work done or to be done in the State of Arkansas by the home improvement contractor, including without limitation labor and materials, is less than fifty thousand dollars ($50,000). (d)(1) If a contractor fails to maintain workers' compensation coverage or fails to maintain proof of current workers' compensation coverage on file with the committee, the committee shall revoke the contractor's license. (2) A contractor's license that has been revoked due to failure to maintain workers' compensation coverage may be reinstated upon receipt of proof that the contractor has secured workers' compensation coverage. (e) The committee shall promulgate rules necessary to enforce this section.

Ark. Code Ann. § 17-25-515 Actions to enforce contracts in violation of this subchapter.

A contractor who performs work in violation of this subchapter shall not bring an action: (1) In law or equity to enforce any provision of a contract entered into in violation of this subchapter; or (2) For quantum meruit.

Ark. Code Ann. § 17-25-602 Authority.

The Residential Contractors Committee may: (1) Issue, modify, suspend, and revoke a roofing contractor registration certificate issued by the committee; (2) Establish qualifications for roofing contractor registration certificates issued by the committee; (3) Enforce this subchapter and the rules of the committee; (4) Issue rules necessary for the implementation of this subchapter; (5) Levy civil penalties under this subchapter; (6) Issue orders of abatement for violations of this subchapter in the same manner and to the same extent as authorized for the Contractors Licensing Board under § 17-25-103; and (7) Seek a civil remedy available to the board.

Ark. Code Ann. § 17-25-603 Roofing contractor registration certificate from committee required.

(a) A person shall not act as a roofing contractor after July 1, 2021, unless a person is: (1) Granted a roofing contractor registration certificate by the Residential Contractors Committee; or (2) Exempt from certification under this subchapter. (b) A person that fails to procure a roofing contractor registration certificate as required under this subchapter is upon conviction guilty of a Class A misdemeanor with each day in violation of the requirement to constitute a separate offense.

Ark. Code Ann. § 17-25-604 Application for roofing contractor registration certificate.

(a) An application for a roofing contractor registration certificate shall be made on a form prescribed by the Residential Contractors Committee. (b) To obtain a roofing contractor registration certificate, an applicant shall under oath include the following information on the application: (1) A statement that the applicant requesting the roofing contractor registration certificate is at least eighteen (18) years of age; (2) The applicant's: (A) Name; (B) Physical address; and (C) Telephone number; (3) The name of the applicant's business, including any fictitious business names; (4) The address of the applicant's business; (5) The name of all other persons authorized to act for the applicant's business and the registered agent of the applicant's business; and (6) A statement that the applicant: (A) Will comply with all federal, state, and local laws and rules; (B) Is or is not registered, certified, or licensed as a roofing contractor in another state; and (C) Has or has not been the subject of a disciplinary action in this state or another state as a roofing contractor. (c) If the applicant for a roofing contractor registration certificate is a nonresident roofing contractor, the applicant shall designate a registered agent of service in the State of Arkansas. (d) The application for a roofing contractor registration certificate shall have the following information attached: (1) A surety bond in the minimum amount of fifteen thousand dollars ($15,000); (2) Proof of workers' compensation coverage as required under § 11-9-401 et seq.; and (3) Any other information required by the committee.

Ark. Code Ann. § 17-25-605 Applicant qualifications.

(a) The Residential Contractors Committee may limit a roofing contractor registration certificate issued by the committee to the character of work that the applicant is qualified to perform. (b) In addition to the offenses listed in § 17-3-102, the committee may consider the following convictions when determining an applicant's fitness for a roofing contractor registration certificate under this subchapter: (1) Conviction of a crime with an element of dishonesty or fraud under the laws of this state, another state, or the United States; (2) Conviction of a voyeurism offense as prohibited in §§ 5-16-101 and 5-16-102; (3) Conviction under the Arkansas Hot Check Law, § 5-37-301 et seq.; and (4)(A) Conviction of a crime or act that is substantially related to the qualifications, functions, or duties of a roofing contractor. (B) A crime or act is substantially related to the qualifications, functions, or duties of a roofing contractor if, to a substantial degree, the crime or act indicates a present or potential unfitness of a person applying for or holding a roofing contractor registration certificate to perform the functions authorized by the roofing contractor registration certificate.

Ark. Code Ann. § 17-25-606 Name of roofing contractor holding roofing contractor registration certificate.

(a) A roofing contractor that obtains a roofing contractor registration certificate under this subchapter may act as a roofing contractor only in the name under which the Residential Contractors Committee granted the roofing contractor registration certificate. (b) A roofing contractor shall submit a written update to the committee if the information submitted with the application for a roofing contractor registration certificate under this subchapter changes.

Ark. Code Ann. § 17-25-607 Hearings regarding violations.

(a) The Residential Contractors Committee may conduct hearings regarding alleged violations of this subchapter or rules promulgated under this subchapter, and the hearings shall be conducted in accordance with the Arkansas Administrative Procedure Act, § 25-15-201 et seq. (b) The committee shall within a reasonable time make findings and determinations as a result of the hearings. (c) A roofing contractor that, after notice and hearing, is found to have committed one (1) or more of the following actions shall pay to the Contractors Licensing Board a civil penalty of not less than one hundred dollars ($100) nor more than four hundred dollars ($400) for each day that the violation occurred: (1) Acting as a roofing contractor without having a valid roofing contractor registration certificate in violation of this subchapter; (2) Using a roofing contractor in violation of this subchapter; (3) Presenting or filing a roofing contractor registration certificate of another roofing contractor; (4) Giving false or forged evidence to the board in order to obtain a roofing contractor registration certificate; (5) Using an expired or revoked roofing contractor registration certificate; (6) Giving false or fraudulent evidence of a roofing contractor's roofing contractor registration certificate to another person; or (7) Committing other violations under this subchapter. (c) The committee may revoke the roofing contractor registration certificate of a roofing contractor that is found guilty of: (1) Fraud or deceit in obtaining a roofing contractor registration certificate; (2) Aiding or abetting a roofing contractor or other person to violate this subchapter; (3) Gross negligence, incompetence, or misconduct in the roofing contractor's business; (4) Abandoning a roofing contract without legal grounds after a consideration in payment has been tendered; (5) Mishandling funds or property entrusted to the roofing contractor; (6) Engaging in fraudulent or deceptive acts or practices; (7) Misrepresenting products, services, or qualifications; (8) Engaging in roofing services without obtaining a proper permit as may be required by a local authority; or (9) Damaging or injuring a person or property while performing roofing services under a valid roofing contractor registration certificate for which the roofing contractor's liability insurance, worker's compensation coverage, or other method of remuneration for injuries does not make the injured party whole. (d)(1) When abuse, neglect, or exploitation of an endangered person or an impaired person by a roofing contractor is found by the committee to have occurred, the committee may: (A) State in writing that due to imminent physical or other harm to the endangered person or impaired person, the situation merits the emergency suspension of the roofing contractor registration certificate of the roofing contractor; and (B) Proceed with the suspension of the roofing contractor registration certificate without a hearing or upon an abbreviated hearing that the committee finds practicable to suspend the roofing contractor registration certificate. (2) An emergency suspension under this subsection shall be effective immediately, unless otherwise stated in the written documentation by the committee. (3) An emergency suspension under this subsection may be effective for a period of more than thirty (30) days and the emergency suspension shall not be renewable. (4) When an emergency suspension is ordered under this subsection, a formal suspension or revocation proceeding shall be promptly instituted and acted upon in accordance with the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

Ark. Code Ann. § 17-25-608 Appeal from committee decision.

(a) A person aggrieved by an action or decision of the Residential Contractors Committee may appeal to the Contractors Licensing Board within ten (10) calendar days after the action or decision under procedures prescribed by the board. (b) A person aggrieved shall be granted an opportunity to address the board regarding the committee's actions, and the final decision of the board shall be binding upon the committee.

Ark. Code Ann. § 17-25-609 Expiration of certification — Fees.

(a) A roofing contractor registration certificate issued by the Residential Contractors Committee shall expire one (1) year after the date of issuance unless otherwise provided by the committee. (b) The committee may charge reasonable delinquency fees and may charge a fee not to exceed one hundred dollars ($100) for a new roofing contractor registration certificate or the renewal of a roofing contractor registration certificate. (c) All fees and other moneys collected by the committee shall be disposed of as provided by § 17-25-205 and shall be used by the committee to implement this subchapter.

Ark. Code Ann. § 17-25-610 Exemptions.

The following are exempt from the registration requirements of this subchapter: (1) A person that acts as a roofing contractor in the construction of his or her residence unless he or she builds more than one (1) residence during a calendar year; (2) The owner of a single-family residence acting as his or her own roofing contractor on his or her own property; (3) A person licensed as a contractor by a licensing agency, board, or commission of the State of Arkansas if the person is performing work within the scope of the license held by the person; (4) A contractor licensed by the Contractors Licensing Board if the contractor holds a classification that authorizes the contractor to perform roofing as defined under § 17-25-601; and (5) A home improvement contractor or residential building contractor if the home improvement contractor or residential building contractor: (A) Is in compliance with all requirements to do business in the State of Arkansas, including requirements of a municipality or county applicable to the location in which the home improvement contractor or residential building contractor intends to do business that involves roofing services; (B) Engages in roofing services in addition to construction, installation, renovation, repair, maintenance, alteration, or waterproofing services on the project and the roofing services do not constitute more than fifty percent (50%) of the total project cost; and (C) Does not authorize agents, employees, or representatives of the home improvement contractor or the residential building contractor to engage in door-to-door sales of roofing services.

Ark. Code Ann. § 17-25-611 Actions to enforce contracts in violation of subchapter.

A roofing contractor who performs work or enters into a contract in violation of this subchapter shall not bring an action: (1) In law to enforce a provision of a contract entered into with a consumer in violation of this subchapter; or (2) For quantum meruit.

Source: Public.Resource.Org / UniCourt, Official Code of Arkansas Annotated, Release 78 (2020) (unicourt.github.io/cic-code-ar)URL: https://unicourt.github.io/cic-code-ar/transforms/ar/ocar/r78/gov.ar.code.title.17.htmlFetched: 11/8/2026