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2007 - 2008 LEGISLATURE
July 9, 2007 - Introduced by Senators Wirch, Hansen, Lehman, Decker, Cowles,
Schultz, Harsdorf, Sullivan, Olsen, Lassa
and Erpenbach, cosponsored by
Representatives Kaufert, Mason, Steinbrink, Kreuser, Boyle, Hahn,
Montgomery, Jeskewitz, Sheridan, Jorgensen, Bies, Albers, A. Ott,
Petrowski, Townsend
and Musser. Referred to Committee on Commerce,
Utilities and Rail.
SB228,1,4 1An Act to amend 101.02 (20) (a) and 101.02 (21) (a); and to create 101.19 (1)
2(m), 101.65 (1p) and subchapter VIII of chapter 101 [precedes 101.99] of the
3statutes; relating to: the regulation of construction contractors and
4subcontractors, granting rule-making authority, and providing a penalty.
Analysis by the Legislative Reference Bureau
The Department of Commerce (Commerce) administers various laws, including
building codes, that promote safety in public and private buildings and in the
subsystems of those buildings. To that end, Commerce issues various licenses,
permits, registrations, and other credentials (licenses) to persons engaged in the
construction trades such as electricians and plumbers. Commerce also administers
and issues licenses in connection with the administration of other laws relating to
public safety such as those regulating fireworks and the storage of flammable
liquids.
This bill requires Commerce to register any person who desires to act as a
contractor or subcontractor and who meets certain registration requirements
established by Commerce. Under the bill, a contractor is a person engaged in the
business of construction who contracts with the owner or lessor of real property to
construct, or supervise the construction of, an improvement to that real property.
The bill specifies that a subcontractor is a person who enters into a contract with a
contractor or a subcontractor to perform part or all of a contract to construct or
supervise the construction of an improvement to real property.

Under the bill, Commerce must establish an Internet site that consumers may
use to determine whether a contractor or subcontractor is registered by Commerce.
The bill also requires Commerce to promulgate rules establishing standards for the
registration of contractors and subcontractors, application procedures for persons
who apply for such registration, and conditions under which Commerce may suspend
or revoke such a registration. The bill creates a contractor advisory committee that
is required to make recommendations to Commerce regarding the promulgation of
these rules.
The bill provides that a person may not hold himself or herself out or act as a
contractor or subcontractor or perform construction services unless the person is
registered as a contractor or subcontractor by Commerce. The bill also prohibits a
contractor or subcontractor from entering into contracts for construction services
with a person who is not registered as a contractor or subcontractor with Commerce.
Further, the bill prohibits a contractor or subcontractor from claiming a lien for
construction services performed or materials procured if the contractor or
subcontractor is not registered with Commerce.
The bill authorizes Commerce to directly assess a forfeiture by issuing an order
against any person who violates the requirements imposed upon contractors and
subcontractors under the bill.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB228, s. 1 1Section 1. 101.02 (20) (a) of the statutes, as affected by 2005 Wisconsin Act
2456
, is amended to read:
SB228,2,83 101.02 (20) (a) For purposes of this subsection, "license" means a license,
4permit or certificate of certification or registration issued by the department under
5ss. 101.09 (3) (c), 101.122 (2) (c), 101.143 (2) (g), 101.15 (2) (e), 101.17, 101.177 (4) (a),
6101.178 (2) or (3) (a), 101.63 (2) or (2m), 101.653, 101.73 (5) or (6), 101.82 (2), 101.87,
7101.935, 101.95, 101.951, 101.952, 101.985 (1) to (3), 101.991, 145.02 (4), 145.035,
8145.045, 145.15, 145.16, 145.165, 145.17, 145.175, 145.18 or 167.10 (6m).
SB228, s. 2 9Section 2. 101.02 (21) (a) of the statutes, as affected by 2005 Wisconsin Act
10456
, is amended to read:
SB228,3,6
1101.02 (21) (a) In this subsection, "license" means a license, permit or
2certificate of certification or registration issued by the department under s. 101.09
3(3) (c), 101.122 (2) (c), 101.143 (2) (g), 101.15 (2) (e), 101.17, 101.177 (4) (a), 101.178
4(2) or (3) (a), 101.63 (2), 101.653, 101.73 (5) or (6), 101.82 (2), 101.87, 101.935, 101.95,
5101.951, 101.952, 101.985 (1) to (3), 101.991, 145.02 (4), 145.035, 145.045, 145.15,
6145.16, 145.165, 145.17, 145.175, 145.18 or 167.10 (6m).
SB228, s. 3 7Section 3. 101.19 (1) (m) of the statutes is created to read:
SB228,3,98 101.19 (1) (m) The registration of contractors and subcontractors under subch.
9VIII.
SB228, s. 4 10Section 4. 101.65 (1p) of the statutes is created to read:
SB228,3,1311 101.65 (1p) May not issue a building permit to a person who is required to be
12registered under subch. VIII unless that person, on applying for a building permit,
13produces proof of registration.
SB228, s. 5 14Section 5. Subchapter VIII of chapter 101 [precedes 101.99] of the statutes is
15created to read:
SB228,3,1616 chapter 101
SB228,3,1917 subchapter VIII
18 regulation of construction
19 contractors and subcontractors
SB228,3,20 20101.99 Definitions. In this subchapter:
SB228,3,22 21(1) "Construction" means the construction, renovation, repair, remodeling, or
22demolition of an improvement to real property or of a manufactured home.
SB228,4,2 23(2) "Construction services" means mechanical or structural activities relating
24to construction including carpentry, concrete work, landscaping, masonry work,
25painting, plastering, insulation work, roofing, erection of scaffolding, or the

1installation or repair of floor coverings, drywall, wall coverings, tile, cabinets,
2countertops, or siding.
SB228,4,5 3(3) "Contractor" means any person engaged in the business of construction who
4contracts with the owner or lessor of real property to construct, or supervise the
5construction of, an improvement to that real property.
SB228,4,8 6(4) "Subcontractor" means a person who enters into a contract with a
7contractor or subcontractor to perform part or all of a contract to construct or
8supervise the construction of an improvement to real property.
SB228,4,10 9101.991 Departmental powers and duties. The department shall do all of
10the following:
SB228,4,13 11(1) Register, and issue a unique registration number to, any person who desires
12to act as a contractor or a subcontractor and who meets the requirements for
13registration established by the department under this subchapter.
SB228,4,15 14(2) Establish an Internet site that consumers may use to determine all of the
15following:
SB228,4,1716 (a) The name and address of every contractor and subcontractor registered by
17the department under this subchapter.
SB228,4,1918 (b) The name of the contact person for every contractor and subcontractor
19registered by the department under this subchapter.
SB228,4,2220 (c) Whether a contractor or subcontractor registered by the department under
21this subchapter carries a performance bond or other financial assurance to ensure
22the work of the contractor or subcontractor.
SB228,4,23 23(3) Promulgate rules establishing all of the following:
SB228,4,2424 (a) Standards for the registration of contractors and subcontractors.
SB228,5,2
1(b) Application procedures for persons applying for registration under this
2subchapter.
SB228,5,43 (c) Conditions under which the department may suspend or revoke the
4registration of a contractor or subcontractor.
SB228,5,8 5101.992 Prohibitions. (1) No person may hold himself or herself out or act
6as a contractor or subcontractor or perform construction services unless that person
7is registered as a contractor or subcontractor by the department under this
8subchapter.
SB228,5,11 9(2) No contractor or subcontractor may enter into a contract for construction
10services with a person who is not registered as a contractor or subcontractor by the
11department under this subchapter.
SB228,5,16 12(3) No contractor or subcontractor may claim or maintain an action to enforce
13a lien under s. 779.01 for construction services performed or materials procured if the
14contractor or subcontractor was not registered as a contractor or a subcontractor by
15the department under this subchapter at the time that the services were performed
16or the materials were procured.
SB228,5,19 17(4) No contractor or subcontractor may knowingly and with intent to evade any
18state or federal law, rule, or regulation coerce or induce a person to falsely declare
19that he or she is an independent contractor.
SB228,5,21 20101.993 Requirements. Every person who is registered as a contractor or
21subcontractor by the department under this subchapter shall do all of the following:
SB228,5,23 22(1) Display his or her registration number at his or her principal place of
23business.
SB228,5,25 24(2) Include his or her registration number on all construction bids and
25contracts and on all advertising.
SB228,6,2
1101.994 Registration term. Registration under this subchapter shall be
2valid for a period of not more than 4 years and shall be renewable.
SB228,6,6 3101.995 Exception. Sections 101.992 and 101.993 do not apply to a person
4who performs construction work on real property, an improvement to real property,
5or a manufactured home if the real property, improvement, or manufactured home
6is owned or leased by that person.
SB228,6,9 7101.997 Penalties. (1) The department may directly assess a forfeiture by
8issuing an order against any person who violates s. 101.992 or 101.993. The
9department may not assess a forfeiture exceeding $2,000 for each violation.
SB228,6,11 10(2) The department shall promulgate rules specifying the procedures
11governing the assessment of forfeitures under this section including the following:
SB228,6,1212 (a) The procedure for issuing an order for an alleged violation.
SB228,6,1413 (b) The amount of a forfeiture that the department may assess for an alleged
14violation, subject to the limit under sub. (1).
SB228,6,1515 (c) The procedure for contesting an order issued for an alleged violation.
SB228,6,1716 (d) The procedure for contesting the assessment of a forfeiture for an alleged
17violation.
SB228,6,19 18(3) The department shall remit all forfeitures paid under this section to the
19secretary of administration for deposit in the school fund.
SB228,6,21 20(4) All forfeitures that are not paid as required under this section shall accrue
21interest at the rate of 12 percent per year.
SB228,6,25 22(5) The attorney general may bring an action in the name of the state to collect
23any forfeiture imposed, or interest accrued, under this subsection if the forfeiture or
24interest has not been paid after the exhaustion of all administrative and judicial
25reviews.
SB228, s. 6
1Section 6 . Nonstatutory provisions.
SB228,7,82 (1) Proposed rules. No later than the first day of the 12th month beginning
3after the effective date of this subsection, the department of commerce shall submit
4in proposed form the rules required under sections 101.991 (3) and 101.997 (2) of the
5statutes, as created by this act, to the legislative council staff under section 227.15
6(1) of the statutes. Notwithstanding section 227.137 (2) of the statutes the secretary
7of administration may not require the department to of commerce prepare an
8economic impact report for the proposed rules.
SB228,7,209 (2) Contractor advisory committee. There is created a contractor advisory
10committee shall consist of 7 members appointed by the secretary of commerce. Of
11the members appointed to the committee, 4 members shall be contractors, as defined
12in section 101.99 (3) of the statutes, as created by this act, or subcontractors, as
13defined in section 101.99 (4) of the statutes, as created by this act, 2 members shall
14be representatives of labor unions, and one member shall be a public member. The
15committee shall make recommendations to the department of commerce regarding
16the promulgation of rules under sections 101.991 (3) and 101.997 (2) of the statutes,
17as created by this act. The committee shall cease to exist on the first day of the 12th
18month beginning after the day on which the rules required under sections 101.991
19(3) and 101.997 (2) of the statutes, as created by this act, are promulgated by the
20department of commerce.
SB228, s. 7 21Section 7. Effective dates. This act takes effect on the first day of the 18th
22month beginning after publication, except as follows:
SB228,7,2323 (1) Section 6 (1 ) and (2) of this act take effect on the day after publication.
SB228,7,2424 (End)
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