New Mexico Register / Volume
XXXIII, Issue 3 / February 8, 2022
TITLE 14 HOUSING AND CONSTRUCTION
CHAPTER 6 CONSTRUCTION INDUSTRIES LICENSING
PART 3 CONTRACTOR’S LICENSE
REQUIREMENTS
14.6.3.1 ISSUING AGENCY: The Construction Industries Division (CID) of
the Regulation and Licensing Department.
[14.6.3.1 NMAC - Rp,
14.6.3.1 NMAC, 3/10/2022]
14.6.3.2 SCOPE: This rule applies to individuals seeking to
obtain a license or certificate issued by CID.
[14.6.3.2 NMAC - Rp,
14.6.3.2 NMAC, 3/10/2022]
14.6.3.3 STATUTORY AUTHORITY: Sections 60-13-9, 60-13-12, 60-13-14,
60-13-18, 70-5-6, 70-5-9, 70-5-12, 70-5-17 and 40-5A-1 through 9 NMSA 1978.
[14.6.3.3 NMAC - Rp,
14.6.3.3 NMAC, 3/10/2022]
14.6.3.4 DURATION: Permanent.
[14.6.3.4 NMAC - Rp,
Rp, 14.6.3.4 NMAC, 3/10/2022]
14.6.3.5 EFFECTIVE DATE: March 10, 2022, unless a later date is cited
at the end of a section.
[14.6.3.5 NMAC - Rp,
14.6.3.5 NMAC, 3/10/2022]
14.6.3.6 OBJECTIVE: The objective of 14.6.3 NMAC is to set forth
general provisions governing contractor licensing in New Mexico.
[14.6.3.6 NMAC - Rp,
14.6.3.6 NMAC, 3/10/2022]
14.6.3.7 DEFINITIONS:
[14.6.3.7 NMAC - Rp,
14.6.3.7 NMAC, 3/10/2022]
See Section 60-13-3
NMSA 1978 and 14.5.1.7 NMAC for definitions.
14.6.3.8 LICENSE AND QUALIFYING PARTY REQUIREMENTS.
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.
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.
[14.6.3.8 NMAC - Rp,
14.6.3.8 NMAC, 3/10/2022]
14.6.3.9 PAYMENT OF ADMINISTRATIVE
PENALTIES.
A. A person whose
license or certificate has been suspended or revoked pursuant to Section
60-13-23, 24 or 36 NMSA 1978, of the act shall not be eligible for
reinstatement of the license or certificate until all fees and administrative
penalties assessed have been paid in full, except as allowed in Subsection B,
below.
B. The commission
may authorize CID to establish a payment plan for administrative penalties
assessed against a licensee. If the
licensee demonstrates good faith in making payments, CID may issue a new
license or certificate or reinstate a suspended license or certificate before full
payment has been made. If a licensee
obtains a license or certificate pursuant to this provision, and thereafter
fails to remain current on payments, the licensee may be subject to
additional disciplinary action, including suspension, revocation of the license
or certificate and additional administrative penalties.
C. Nothing in this
rule shall enable a person to apply for or be issued a license or certificate
if ineligible for licensure under any other provision of the act or Title 14,
NMAC.
[14.6.3.9 NMAC - Rp,
14.6.3.9 NMAC, 3/10/2022]
14.6.3.10 [RESERVED]
[14.6.3.10 NMAC - N,
1/1/2010; Repealed, 11/1/2013]
History of 14.6.3
NMAC:
Pre-NMAC History:
Material in this
part was derived from that previously filed with the commission of public
records - state records center and archives as:
CIC 70-2, General
Construction Classifications, filed 11/25/1970;
CIC 72-4, General
Construction Classifications, filed 02/16/1972;
CIC 76-2, Rules And
Regulations, filed 05/05/1976;
CID 78-2, Rules And
Regulations, filed 12/05/1978;
CID 79-1, Rules And
Regulations, filed 06/06/1979;
CID 82-1,
Construction Industries Rules And Regulations, filed 04/14/1982;
CID 85-1,
Construction Industries Rules And Regulations, filed 02/04/1985;
CID 90-1,
Construction Industries Rules And Regulations, filed 05/31/1990.
History of Repealed Material:
14 NMAC 6.3, Housing
and Construction - Construction Industries Licensing - Contractor’s License
Requirements (filed 9/2/1997) repealed 12/1/2000.
14.6.3, Housing and
Construction - Construction Industries Licensing - Contractor’s License
Requirements (filed 10/16/2000) repealed 2/01/2006.
Other History:
That portion of CID
90-1, Construction Industries Rules And Regulations, filed 05/31/1990 --
renumbered, reformatted and amended to 14 NMAC 6.3, Housing and Construction -
Construction Industries Licensing - Contractor’s License Requirements,
effective 09/14/1996.
14 NMAC 6.3, Housing
and Construction - Construction Industries Licensing - Contractor’s License
Requirements (filed 09/03/1996) replaced by 14 NMAC 6.3, Housing and Construction
- Construction Industries Licensing - Contractor’s License Requirements,
effective 09/23/1997.
14 NMAC 6.3, Housing
and Construction - Construction Industries Licensing - Contractor’s License
Requirements (filed 09/02/1997) replaced by 14.6.3, Housing and Construction -
Construction Industries Licensing - Contractor’s License Requirements,
effective 12/01/2000.
14.6.3 NMAC,
Contractor’s License Requirements (filed 10/16/2000) was replaced by 14.6.3,
Contractor’s License Requirements, effective 2/01/2006.
14.6.3 NMAC, Contractor’s
License Requirements (filed 2/01/2006) was replaced by 14.6.3, Contractor’s
License Requirements, effective 3/10/2022.