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24.33.101   CONTRACTOR REGISTRATION APPLICATION REQUIREMENTS

This rule has been repealed.

History: 39-9-103, MCA; IMP, 39-9-102, 39-9-201, MCA; NEW, 2012 MAR p. 994, Eff. 5/11/12; REP, 2018 MAR p. 720, Eff. 4/14/18.

24.33.111   ADDITIONAL APPLICATION INFORMATION

(1) If an application is missing any required information, the applicant will have 30 days to submit the missing information. After 30 days, incomplete applications will be deemed denied.

(2) Applicants will have six months from the date the program receives the application to submit the missing information for approval of their construction contractor registration.

History: 39-9-103, MCA; IMP, 39-9-201, MCA; NEW, 2012 MAR p. 994, Eff. 5/11/12.

24.33.121   CONSTRUCTION CONTRACTOR REGISTRATION FEES

(1) The fee for the issuance, renewal, or reinstatement of a construction contractor certificate of registration is $70.

(a) The fee is nonrefundable for applicants.

(b) An applicant will have a maximum of six months to submit the required information for approval. After six months, the applicant must resubmit the $70 fee and a new application.

(2) If a business structure changes to require an FEIN (or not require an FEIN), a new application and $70 application fee must be submitted.

 

History: 39-9-103, MCA; IMP, 39-9-206, MCA; NEW, 1995 MAR p. 2146, Eff. 10/13/95; AMD, 1998 MAR p. 2877, Eff. 11/1/98; AMD, 2005 MAR p. 967, Eff. 6/17/05; AMD, 2012 MAR p. 994, Eff. 5/11/12; AMD, 2018 MAR p. 720, Eff. 4/14/18.

24.33.131   EVIDENCE OF COMPLIANCE WITH LAWS

(1) Compliance with workers' compensation laws must be demonstrated by:

(a) verification by the department by use of the National Council on Compensation Insurance (NCCI) national workers' compensation database that the entity applying for construction contractor registration has current workers' compensation coverage; or

(b) a declarations page from the workers' compensation policy, provided all of the following conditions are met:

(i) the insurer is a company authorized to write workers' compensation coverage in Montana;

(ii) the name of the insured as shown on the declaration page is the name of the applicant entity;

(iii) the federal employer identification number as shown on the declaration page is consistent with the federal employer identification number of the applicant entity;

(iv) Montana is listed in section 3A on the insurance policy's declarations page as the state under which laws the policy affords coverage;

(v) a policy number appears on the declaration page; and

(vi) the declaration page is signed by an authorized agent of the insurer;

(c) a certificate of insurance issued by the contractor's workers' compensation insurer (or self-insured group) stating that the contractor's employees are covered for liability under the Montana Workers' Compensation Act and Occupational Disease Act, provided the following conditions are met:

(i) the insurer is a company authorized to write workers' compensation coverage in Montana;

(ii) the name of the insured as shown on the certificate of insurance is the name of the applicant entity;

(iii) the insurer's agent is licensed to do business in Montana;

(iv) there is an original signature on the certificate of insurance of an agent or other person that is authorized to bind the insurer;

(v) the certificate of insurance specifies that the workers' compensation coverage is under the laws of Montana to the same named insured employer that is applying for construction contractor registration; and

(vi) the certificate of insurance must be validated within 20 days by the submission of a declaration page or policy from the registering entity; or

(d) a written statement, made under oath, declaring the basis for each and every exemption to the coverage requirements of the Workers' Compensation Act that the applicant contends applies. If the applicant claims the independent contractor exemption, a copy of the applicant's exemption or an application for exemption must be attached to the registration application form.

(i) A current exemption certificate must be valid for at least six months from the date of the construction contractor application.

 

History: 39-9-103, MCA; IMP, 39-9-201, MCA; NEW, 1995 MAR p. 2146, Eff. 10/13/95; AMD, 1998 MAR p. 2877, Eff. 11/1/98; AMD, 2012 MAR p. 994, Eff. 5/11/12; AMD, 2018 MAR p. 720, Eff. 4/14/18.

24.33.135   SUSPENSION OF CONSTRUCTION CONTRACTOR REGISTRATION

(1) A contractor registration may be suspended in circumstances which the department deems necessary. These circumstances include, without limitation, the following:

(a) false statements regarding any aspect of the construction contractor registration application;

(b) suspension is required by law, for example, based on non-payment of child support pursuant to Title 40, chapter 5, part 7, MCA;

(c) failure to report a change in status as required by ARM 24.33.142; and

(d) failure to maintain workers' compensation coverage, if required.

(2) In addition to suspension, the department may assess penalties pursuant to the provisions of 39-9-301 and 39-9-401, MCA.

 

History: 39-9-103, MCA; IMP, 39-9-204, 39-9-301, 39-9-401, MCA; NEW, 2018 MAR p. 720, Eff. 4/14/18.

24.33.141   ACCEPTABLE FORMS OF SECURITY

This rule has been repealed.

History: 39-3-702 and 39-9-103, MCA; IMP, 39-3-703 and 39-9-203, MCA; NEW, 1995 MAR p. 2146, Eff. 10/13/95; REP, 1998 MAR p. 2877, Eff. 11/1/98.

24.33.142   REPORTING CERTIFICATE CHANGES

(1) Certificate holders must report all changes to a certificate in writing to the department within ten days of the change. Such reportable changes include, but are not limited to:

(a) address;

(b) name;

(c) FEIN;

(d) change in status of certificate as stated pursuant to ARM 24.33.151(1);

(e) phone number;

(f) addition to ownership;

(g) workers' compensation insurance carrier change or cancellation;

(h) business name; or

(i) any change in principal(s) of the business.

(2) If a change is not reported to the department within ten days, the certificate may be suspended.

 

History: 39-9-103, MCA; IMP, 39-9-201, 39-9-206, 39-9-301, 39-9-303, MCA; NEW, 2012 MAR p. 1148, Eff. 5/11/12; AMD, 2018 MAR p. 720, Eff. 4/14/18.

24.33.151   CERTIFICATES OF REGISTRATION

(1) Issued certificates will display one of the following statuses:

(a) "BID ONLY" means the contractor is registered only to bid construction work in Montana and cannot perform actual work until the contractor upgrades the certificate to one of the following statuses.

(b) "EMPLOYEES ONLY" means the contractor carries workers' compensation coverage on employees and is registered to have employees.

(c) "LEASED EMPLOYEES" means the contractor uses employees of a professional employer organization, as defined at 39-8-102, MCA. These employees are presumably covered with workers' compensation and unemployment insurance through the leasing company.

(d) "NO EMPLOYEES, MAY HIRE EXEMPT WORKERS ONLY" means the contractor does not carry workers' compensation coverage on any employees.

(2) Along with a certificate, each certificate holder will receive a construction contractor registration wallet card and a vehicle decal. The department shall review requests for more than one decal or card on an individual basis.

(3) To increase public visibility of the construction contractor registration program, the department may provide one participant gift per year to each registered contractor (i.e., baseball caps, flashlights, etc., as determined by the department).

 

History: 39-9-103, MCA; IMP, 39-9-204, MCA; NEW, 2012 MAR p. 994, Eff. 5/11/12; AMD, 2018 MAR p. 720, Eff. 4/14/18.

24.33.401   DEFINITIONS

As used in this subchapter, the following definitions apply:

(1) "Day" means a calendar day.

(2) "Department" means the Department of Labor and Industry.

(3) "Expiration of registration" means the registration was not timely renewed and is no longer active due to the passage of time.

(4) "Home inspection business" means a sole proprietorship, a partnership, a limited liability company, a corporation, or any other business entity, which is required by law to register with the department before being able to lawfully perform home inspection for others.

(5) "Home inspection work" means the same as "home inspection" as provided by 39-9-102, MCA.

(6) "Home inspection worker" means an individual who has demonstrated to the department that the individual is qualified to perform home inspection work.

(7) "ICEC" means the independent contractor exemption certificate issued by the department pursuant to 39-71-417, MCA.

(8) "Initial application" means the first time a home inspection business applies to the department for registration as a home inspector.

(9) "Registration" means the status held by a home inspection business after the home inspection business has successfully registered with the department.

(10) "Reinstatement of registration" means reactivation of a non-expired registration, following suspension of the registration by the department.

(11) "Renewal application" means an application by a registered home inspector to be registered for an additional two-year period after the home inspector has been properly registered via an initial application.

(12) "Roster" means the list of home inspection workers who have been identified by the home inspection business as employees. The roster may include an individual who is separately registered in their individual capacity as a home inspection business as provided by ARM 24.33.421, but who is authorized to work under the registration name and number of the registrant.

(13) "Suspension of registration" means the registration is no longer active as the result of an action taken by the department in response to conduct of the registrant.

 

History: 39-9-102, 39-9-212, MCA; IMP, 39-9-212, MCA; NEW, 2019 MAR p. 2121, Eff. 11/23/19.

24.33.406   FEE SCHEDULE

(1) The following fees are charged by the department for home inspection businesses:

(a) initial application $80.00

(b) renewal application 80.00

(c) reinstatement of suspended registration 40.00

(d) change of address no charge

(e) change of home inspection worker roster no charge

(f) photocopies, per page 0.25

(2) All fees are nonrefundable.

 

History: 39-9-103, MCA; IMP, 39-9-206, MCA; NEW, 2019 MAR p. 2121, Eff. 11/23/19.

24.33.411   INITIAL APPLICATION FOR HOME INSPECTION BUSINESS REGISTRATION

(1) In order to be registered by the department, a home inspection business shall complete a registration application and pay the registration fee as provided in ARM 24.33.406.

(2) The applicant shall provide the following information to the department:

(a) legal name of the home inspection business;

(b) type of business structure (sole proprietorship, partnership, LLC, etc.);

(c) mailing address of the business;

(d) physical address of the business, if different than the mailing address; and

(e) telephone number.

(3) The applicant shall provide a roster identifying each person who will perform home inspection work on behalf of the applicant.

(4) The applicant shall provide proof of training or examination for all home inspection workers on the roster, demonstrating that each worker on the roster meets the minimum initial qualifications as provided by ARM 24.33.431.

(5) The applicant shall provide proof that the applicant is a member of a national association for home inspectors.

(6) The applicant shall provide proof of required insurance coverages. Proof of insurance is demonstrated by:

(a) the policy declaration page;

(b) a binder of coverage; or

(c) a certificate of insurance issued by an authorized agent of the insurer.

(7) The following are the minimum per incident amounts of insurance coverage required for a home inspection business:

(a) for commercial general liability insurance, $100,000; and

(b) for errors and omission insurance, $100,000.

(8) An applicant may demonstrate proof of compliance with the workers' compensation insurance requirements by submitting either:

(a) proof of Montana workers' compensation insurance coverage; or

(b) proof that each home inspection worker listed on the roster holds a valid independent contractor exemption certificate issued by the department, where home inspection is a listed occupation for that worker.

(9) All insurance policies must be underwritten by an insurer authorized to provide that coverage under the laws of Montana.

(10) Application contents are public record open to inspection, except for personally identifiable information protected from public disclosure.

(11) An applicant may complete an incomplete application during the six months following submission of the application before a new application fee will be charged. The applicant is not allowed to operate a home inspection business until the application is completed and approved by the department.

 

History: 39-9-103, 39-9-212, MCA; IMP, 39-9-212, MCA; NEW, 2019 MAR p. 2121, Eff. 11/23/19.

24.33.416   APPROVAL OF APPLICATIONS

(1) In order to be registered, the applicant shall submit a fully completed application to the department and pay the required fees.

(2) An application may be made in person during regular business hours, at the department's offices at 1805 Prospect Avenue, Helena, Montana, or submitted via mail to: Registration Section, Employment Relations Division, Department of Labor and Industry, P.O. Box 8011, Helena, MT 59604-8011.

(3) The registration period is two years and expires on the two-year anniversary of the initial registration.

(4) An applicant is not allowed to operate a home inspection business until the application is approved by the department.

(5) An applicant who is aggrieved by the department's denial of an application may request a hearing as provided by ARM 24.33.475.

 

History: 39-9-103, 39-9-212, MCA; IMP, 39-9-212, MCA; NEW, 2019 MAR p. 2121, Eff. 11/23/19.

24.33.421   REGISTRATION REQUIRED FOR SUBCONTRACTORS AND INDEPENDENT CONTRACTORS

(1) A home inspection worker who engages in subcontracting with a home inspection business of another shall individually register as a home inspection business, as required by ARM 24.33.411.

(2) A home inspection worker who is engaged as an employee of a registered home inspection business does not need to separately register as a home inspection business, if the home inspection worker never:

(a) subcontracts with a registered home inspection business owned by another; or

(b) independently offers her or his services to members of the public.

 

History: 39-9-103, 39-9-212, 39-71-203, MCA; IMP, 39-9-212, 39-71-417, MCA; NEW, 2019 MAR p. 2121, Eff. 11/23/19.

24.33.431   MINIMUM INITIAL QUALIFICATIONS FOR A HOME INSPECTION WORKER

(1) An individual who intends to work as a home inspector shall document one of the following:

(a) the individual has passed the National Home Inspector Examination offered by the Examination Board of Professional Home Inspectors;

(b) the individual has passed the examination offered by an organization recognized by the department; or

(c) the individual has successfully completed a comprehensive educational program for home inspectors approved by the department.

(2) Any organization wishing to be approved by the department for the purposes of offering an examination under (1)(b) must apply to the department for approval of its examination. The organization must demonstrate that its examination is psychometrically valid, and covers at least the following topics:

(a) roofing;

(b) exterior;

(c) interior;

(d) structural;

(e) electrical;

(f) plumbing;

(g) heating and cooling (HVAC);

(h) insulation;

(i) fireplace and chimney; and

(j) ethical business practices, professional standards, and reports.

(3) Any organization wishing to be approved by the department for the purposes of offering a comprehensive educational program for home inspectors consisting of at least 40 hours of instruction under (1)(c) must apply to the department for recognition. The organization must demonstrate that its educational program is comprehensive and covers at least the following topics:

(a) roofing;

(b) exterior;

(c) interior;

(d) structural;

(e) electrical;

(f) plumbing;

(g) heating and cooling (HVAC);

(h) insulation;

(i) fireplace and chimney; and

(j) ethical business practices, professional standards, and reports.

(4) Any organization wishing to be approved by the department for the purposes of offering a comprehensive educational program for home inspectors under (1)(c) must also demonstrate that it conducts a valid assessment of students' knowledge and understanding of the subject matter being taught in order to demonstrate successful completion. The organization shall describe in detail how the assessment is made, and the criteria by which a student is deemed to have successfully completed the educational program.

(5) A list of organizations approved by the department to offer home inspector examinations is available by contacting the department's home inspection program, and can also be found at the department's web site: http://www.mtcontractor.com.

(6) A list of formal home inspection educational programs approved by the department is available by contacting the department's home inspection program, and can also be found at the department's web site: http://www.mtcontractor.com.

 

History: 39-9-103, 39-9-212, MCA; IMP, 39-9-212, MCA; NEW, 2019 MAR p. 2121, Eff. 11/23/19.

24.33.441   DUTY TO UPDATE ROSTER AND BUSINESS INFORMATION – SUSPENSION – REINSTATEMENT OF REGISTRATION

(1) A home inspection business shall provide to the department in writing, within ten days of the occurrence, changes to:

(a) the roster of home inspectors performing work for the home inspection business; and

(b) the business name, address, contact information, or type of business structure.

(2) A home inspection business shall demonstrate to the department that a home inspector added to the roster meets the minimum initial qualifications as provided by ARM 24.33.431.

(a) A person may not perform services as a home inspection worker until the home inspection business is notified by the department that the person has met the minimum initial qualifications as a home inspection worker.

(b) A home inspection worker registered pursuant to ARM 24.33.421 meets the minimum initial qualifications and may begin work immediately.

(3) A home inspection business that does not timely provide information to the department as required by (1) is subject to having its registration suspended.

(4) A home inspection business may reinstate a suspended registration by providing the department with any updated information as required by (1) and paying the reinstatement fee provided in ARM 24.33.406.

(5) As provided by 39-9-212, MCA, a home inspection business may not operate without being properly registered. Operating a home inspection business without proper registration may result in the imposition of a civil penalty as provided by ARM 24.33.471.

(a) The imposition of a civil penalty does not preclude the department from seeking injunctive relief.

 

History: 39-9-103, 39-9-212, MCA; IMP, 39-9-212, MCA; NEW, 2019 MAR p. 2121, Eff. 11/23/19.

24.33.445   RENEWAL OF BUSINESS REGISTRATION

(1) Prior to the expiration of registration, a home inspection business may renew its registration by applying to the department and paying the fee provided by ARM 24.33.406. A home inspection business may not conduct operations unless it has a current registration. There is no "grace period" allowed for operating with an expired registration.

(2) A renewal applicant shall provide the department with the following information:

(a) an updated roster of all home inspection workers performing work on behalf of the renewal applicant;

(b) proof of the required 40 hours of continuing education credit for each home inspection worker listed on the roster;

(c) proof that the renewal applicant is a member of a national home inspector association;

(d) proof that the renewal applicant has insurance coverage as required by ARM 24.33.411; and

(e) proof that the renewal applicant is complying with the workers' compensation laws, as required by ARM 24.33.411.

(3) Renewal application contents are public record, except for personally identifiable information protected from public disclosure.

 

History: 39-9-103, 39-9-212, MCA; IMP, 39-9-212, MCA; NEW, 2019 MAR p. 2121, Eff. 11/23/19.

24.33.461   RECOGNITION OF CONTINUING EDUCATION COURSES

(1) Any sponsoring organization that requests continuing education credits be approved by the department for training must complete and submit a request on a form provided by the department. 

(2) The department shall review the course submission and determine the number of credit hours to be awarded for completion of the course. Course topics must be germane to the skills needed for competency as a home inspection worker.

(3) An hour of credit is available for each 50 minutes of continuing education instruction.

(4) Courses subject to an award of continuing education credits may include but are not limited to:

(a) classroom setting or seminars;

(b) self-study, electronic media;

(c) correspondence course;

(d) computer-based training; or

(e) remote training.

(5) Continuing education programs offered or recognized by the following associations are deemed to be accepted by the department:

(a) American Society of Home Inspectors (ASHI); and

(b) International Association of Certified Home Inspectors (InterNACHI).

(6) The department will accept continuing education courses offered by any other content provider, where the course has been recognized or accepted by two or more states that require continuing education for home inspectors as a condition of renewal of authority to engage in home inspection in that state.

(7) A list of recognized continuing education sponsors is available on the department's home inspector web page.

(8) A list of approved continuing education courses from other content providers is available on the department's home inspector web page.

 

History: 39-9-103, 39-9-212, MCA; IMP, 39-9-212, MCA; NEW, 2019 MAR p. 2121, Eff. 11/23/19.

24.33.471   PENALTIES – CIVIL FINES – INJUNCTIVE RELIEF

(1) The following schedule of penalties (civil fines) applies to the home inspector program:

(a) failure to register:

(i) first offense $ 250

(ii) second offense 500

(iii) third offense and subsequent offenses 1,000

(b) use of a false name or a false identity:

(i) first offense 1,000

(ii) second offense 2,500

(iii) third offense and subsequent offenses 5,000

(2) In the event of an inadvertent failure to register, or a de minimus violation to timely update information, the department may, in its sole discretion, reduce or waive a penalty.

(3) The imposition of a civil fine does not preclude the department from taking any other enforcement action against the party. The department expressly reserves its right to seek injunctive relief for violations of Title 39, chapter 9, MCA.

 

History: 39-9-103, 39-9-212, MCA; IMP, 39-9-206, 39-9-212, 39-9-301, 39-9-401, MCA; NEW, 2019 MAR p. 2121, Eff. 11/23/19.

24.33.475   DISPUTE RESOLUTION PROCESS

(1) A person aggrieved by the department's decision pertaining to that person may request a hearing within 30 days of the date of the decision. All requests for hearing must be made in writing and sent to the department at any of the following addresses:

(a) Registration Section, Employment Relations Division, Department of Labor and Industry, P.O. Box 8011, Helena, MT 59604-8011;

(b) Registration Section, Employment Relations Division, Department of Labor and Industry, 1805 Prospect Avenue, Helena, MT 59601; or

(c) appeals@mtcontractor.com.

(2) The hearing will be conducted as a contested case pursuant to the Montana Administrative Procedure Act, Title 2, chapter 4, part 6, MCA, and the department's rules.

(3) The hearing and related proceedings will be conducted by the department's Office of Administrative Hearings.

(4) Because home inspector registration is not a licensing matter, the hearing may be conducted either as a formal or informal proceeding, at the election of the person requesting the hearing.

 

History: 39-9-103, 39-9-212, MCA; IMP, 2-4-603, 39-9-212, 39-9-401, MCA; NEW, 2019 MAR p. 2121, Eff. 11/23/19.

24.33.486   EDUCATION AND OUTREACH PROGRAM

(1) As required by 39-9-212, MCA, the department shall dedicate 15 percent of the fees received by the home inspection program for education and outreach for consumers and home inspectors.

(2) The department shall operate and separately account for the home inspector education and outreach separately from the construction contractor registration program.

(3) Where appropriate, the department may coordinate the education and outreach for consumers and home inspectors with similar efforts of the construction contractor registration program, provided that the costs are allocated on an equitable basis between the two programs.

 

History: 39-9-103, 39-9-212, MCA; IMP, 39-9-206, MCA; NEW, 2019 MAR p. 2121, Eff. 11/23/19.