LRB-2734/1
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2005 - 2006 LEGISLATURE
March 2, 2006 - Introduced by Representatives Kaufert, Albers, Townsend,
Towns, Petrowski, Montgomery, Musser, Travis, Owens, Pope-Roberts,
Kreibich, Newcomer, Ott, Vruwink, Berceau, Krawczyk, Lehman
and
Molepske, cosponsored by Senators Kapanke, Ellis, Decker, Cowles,
Erpenbach, Grothman, Leibham
and Zien. Referred to Committee on Housing.
AB1086,1,4 1An Act to amend 101.02 (20) (a) and 101.02 (21) (a); and to create 101.19 (1)
2(k), 101.65 (1p) and subchapter VII of chapter 101 [precedes 101.98] 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 with a subcontractor who
is not registered 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.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB1086, s. 1 1Section 1. 101.02 (20) (a) of the statutes is amended to read:
AB1086,2,72 101.02 (20) (a) For purposes of this subsection, "license" means a license,
3permit or certificate of certification or registration issued by the department under
4ss. 101.09 (3) (c), 101.122 (2) (c), 101.143 (2) (g), 101.15 (2) (e), 101.17, 101.177 (4) (a),
5101.178 (2) or (3) (a), 101.63 (2) or (2m), 101.653, 101.73 (5) or (6), 101.82 (2), 101.87,
6101.935, 101.95, 101.951, 101.952, 101.981, 145.02 (4), 145.035, 145.045, 145.15,
7145.16, 145.165, 145.17, 145.175, 145.18 or 167.10 (6m).
AB1086, s. 2 8Section 2. 101.02 (21) (a) of the statutes is amended to read:
AB1086,3,29 101.02 (21) (a) In this subsection, "license" means a license, permit or
10certificate of certification or registration issued by the department under s. 101.09
11(3) (c), 101.122 (2) (c), 101.143 (2) (g), 101.15 (2) (e), 101.17, 101.177 (4) (a), 101.178
12(2) or (3) (a), 101.63 (2), 101.653, 101.73 (5) or (6), 101.82 (2), 101.87, 101.935, 101.95,

1101.951, 101.952, 101.981, 145.02 (4), 145.035, 145.045, 145.15, 145.16, 145.165,
2145.17, 145.175, 145.18 or 167.10 (6m).
AB1086, s. 3 3Section 3. 101.19 (1) (k) of the statutes is created to read:
AB1086,3,54 101.19 (1) (k) The registration of contractors and subcontractors under subch.
5VII.
AB1086, s. 4 6Section 4. 101.65 (1p) of the statutes is created to read:
AB1086,3,97 101.65 (1p) May not issue a building permit to a person who is required to be
8registered under subch. VII unless that person, on applying for a building permit,
9produces proof of registration.
AB1086, s. 5 10Section 5. Subchapter VII of chapter 101 [precedes 101.98] of the statutes is
11created to read:
AB1086,3,1212 chapter 101
AB1086,3,1513 subchapter VII
14 regulation of construction
15 contractors and subcontractors
AB1086,3,16 16101.98 Definitions. In this subchapter:
AB1086,3,19 17(1) "Contractor" means any person engaged in the business of construction who
18contracts with the owner or lessor of real property to construct, or supervise the
19construction of, an improvement to that real property.
AB1086,3,21 20(2) "Construction" means the construction, renovation, repair, remodeling, or
21demolition of an improvement to real property or of a manufactured home.
AB1086,4,2 22(3) "Construction services" means mechanical or structural activities relating
23to construction including carpentry, concrete work, landscaping, masonry work,
24painting, plastering, insulation work, roofing, erection of scaffolding, or the

1installation or repair of floor coverings, drywall, wall coverings, tile, cabinets,
2countertops, or siding.
AB1086,4,5 3(4) "Subcontractor" means a person who enters into a contract with a
4contractor or subcontractor to perform part or all of a contract to construct or
5supervise the construction of an improvement to real property.
AB1086,4,7 6101.981 Departmental powers and duties. The department shall do all of
7the following:
AB1086,4,10 8(1) Register, and issue a unique registration number to, any person who desires
9to act as a contractor or a subcontractor and who meets the requirements for
10registration established by the department under this subchapter.
AB1086,4,12 11(2) Establish an Internet site that consumers may use to determine whether
12a contractor or subcontractor is registered under this subchapter.
AB1086,4,13 13(3) Promulgate rules establishing all of the following:
AB1086,4,1414 (a) Standards for the registration of contractors and subcontractors.
AB1086,4,1615 (b) Application procedures for persons applying for registration under this
16subchapter.
AB1086,4,1817 (c) Conditions under which the department may suspend or revoke the
18registration of a contractor or subcontractor.
AB1086,4,22 19101.982 Prohibitions. (1) No person may hold himself or herself out or act
20as a contractor or subcontractor or perform construction services unless that person
21is registered as a contractor or subcontractor by the department under this
22subchapter.
AB1086,4,25 23(2) No contractor or subcontractor may enter into a contract for construction
24services with a subcontractor who is not registered as a contractor or subcontractor
25by the department under this subchapter.
AB1086,5,5
1(3) No contractor or subcontractor may claim or maintain an action to enforce
2a lien under s. 779.01 for construction services performed or materials procured if the
3contractor or subcontractor was not registered as a contractor or a subcontractor by
4the department under this subchapter at the time that the services were performed
5or the materials were procured.
AB1086,5,8 6(4) No contractor or subcontractor may knowingly and with intent to evade any
7state or federal law, rule, or regulation coerce or induce a person to falsely declare
8that he or she is an independent contractor.
AB1086,5,10 9101.983 Requirements. Every person who is registered as a contractor or
10subcontractor by the department under this subchapter shall do all of the following:
AB1086,5,12 11(1) Display his or her registration number at his or her principal place of
12business.
AB1086,5,14 13(2) Include his or her registration number on all construction bids and
14contracts and on all advertising.
AB1086,5,16 15101.984 Registration term. Registration under this subchapter shall be
16valid for a period of not more than 4 years and shall be renewable.
AB1086,5,20 17101.985 Exception. Sections 101.982 and 101.983 do not apply to a person
18who performs construction work on real property, an improvement to real property,
19or a manufactured home if the real property, improvement, or manufactured home
20are owned or leased by that person.
AB1086,5,23 21101.987 Penalties. (1) The department may directly assess a forfeiture by
22issuing an order against any person who violates s. 101.982 or 101.983. The
23department may not assess a forfeiture exceeding $2,000 for each violation.
AB1086,5,25 24(2) The department shall promulgate rules specifying the procedures
25governing the assessment of forfeitures under this section including the following:
AB1086,6,1
1(a) The procedure for issuing an order for an alleged violation.
AB1086,6,32 (b) The amount of a forfeiture that the department may assess for an alleged
3violation, subject to the limit under sub. (1).
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