Chap. 431.—An ACT to regulate the practice of general contracting in Virginia;
to establish a State Registration Board for Contractors and to define its
powers and duties; to provide the method of obtaining a certificate of
registration to engage in the practice of general contracting, and to fix fees
for such certificates; to dispose of the monies raised; to provide the method
of suspension and cancellation of such certificate of registration; and to
prescribe the punishment for violation of the provisions of this act.

[H B 229]

Approved April 1, 1938

‘1. Be it enacted by the General Assembly of Virginia as follows:

Section 1. On and after the first day of January, nineteen hundred
and thirty-nine, it shall be unlawful for any person, firm, association,
or corporation to engage in, or offer to engage in general contracting
in this State, unless such person, firm, association, or corporation has
been duly licensed and issued a certificate of registration under the
provisions of this act, as hereinafter provided.

For the purpose of this act, a general contractor is defined to be,
any person, firm, association, or corporation that for a fixed price,
commission, fee, percentage, undertakes to bid upon, or to construct
or superintend the construction of, any building, highway, bridge, rail-
way, sewer, pipe line, grading, or any improvement, or structure, where
the cost of the undertaking is twenty thousand dollars or more; and
any person, firm, association, or corporation who shall bid upon or
engage in constructing or superintending the construction of any
structure or any undertaking or improvements above mentioned, in the
State of Virginia, costing twenty thousand dollars or more, shall be
deemed and held to have engaged in the business of general contracting
in this State.

Section 2. There shall be a State registration board for contractors
hereinafter referred to as the “board”, consisting of five members who
shall be appointed by the Governor within sixty days after this act
becomes effective. At least one member of such board shall have as
a larger part of his business the construction of highways; at least
one member of such board shall have as the larger part of his business
the construction of public utilities; at least one member shall have as
the larger part of his business the construction of buildings. The
members of the first board shall be appointed for one, two, three, four
and five years, respectively, their terms of office expiring on the
thirty-first day of December of the said years. Thereafter in each
year the Governor in like manner shall appoint to fill the vacancy caused
by the expiration of the term of office a member for a term of five
years. Each member shall hold over after the expiration of his term
until his successor shall be duly appointed and qualified. If vacancies
shall occur in the board for anv cause the same shall be filled by the
appointment of the Governor. The Governor may remove any member
of the board for misconduct, incompetency or neglect of duty.

Section 3. JEach member of the board shall, before entering upon
the discharge of the duties of his office take, subscribe and file with
the secretary of the Commonwealth the oath of office required by section
thirty-four of the Constitution of Virginia.

Section 4. The said board shall, within thirty days after its appoint-
ment by the Governor, meet in the city of Richmond, at a time and
place to be designated by the Governor, and organize by electing a
chairman, a vice-chairman and a secretary-treasurer, each to serve for
one year. Said board shall have power to make such by-laws, rules
and regulations as it shall deem best, provided the same are not in
conflict with the laws of Virginia. The secretary-treasurer shall give
bond in such sum as the board shall determine, with such security as
shall be approved by the board, said bond to be conditioned for the
faithful performance of the duties of his office and for the faithful
accounting of all monies and other property as shall come into his hands.

Section 5. The board shall adopt a seal for its own use. The seal
shall have the words “registration board for contractors, Commonwealth
of Virginia”, and the secretary-treasurer shall have charge, care and
custody thereof.

Section 6. The board shall meet twice each year, once in April and
once in October, for the purpose of transacting such business as may
properly come before it. At the April meeting in each year the board
shall elect officers. Special meetings may be held at such times as the
board may provide in its by-laws. Notice of each meeting and the time
and place thereof shall be given to each member in such manner as the
by-laws of the board may provide. Three members of the board shall
constitute a quorum.

Section 7. The secretary-treasurer shall keep a record of the
proceedings of the board and shall receive and account for all monies
derived from the operation of this act. All fees collected pursuant
to the provisions of this act shall be paid into the State treasury and
warrants for the expenditure of funds for the proper enforcement and
execution of this act, including the employment of such clerical assis-
tance as may be necessary and the actual traveling and hotel expenses
of members of the board and its assistants, shall be issued by the
Comptroller upon vouchers signed by the chairman of the board, and
shall be paid by the State Treasurer out of the said funds.

Section 8. The secretary-treasurer shall keep a record of the
proceedings of the board and a register of all applicants for registra-
tion, showing for each the date of application, name, qualifications,
place of business, place of residence, and whether certificate of regis-
tration was granted or refused. The books and register of the board
shall be a prima facie evidence of all matters recorded therein. A
roster showing the names and places of business and of residence of
all registered general contractors shall be prepared by the secretary
of the board during the month of January of each year; such roster
shall be printed by the board out of funds of said board as provided
in section seven, and a copy mailed to and placed on file by the clerk
of each incorporated city, town and county in the State. On or before
the first day of March of each year the board shall submit to the
Governor a report of. its transactions for the preceding year, together
with a complete statement of the receipts and expenditures of the
board, attested by the affidavits of the chairman and the secretary, and
a copy of the said roster of registered general contractors; a copy of
the said report, statement, and roster shall at the same time be filed
with the Secretary of the Commonwealth.

Section. 9. Any person, firm, association or corporation hereafter
desiring to be registered asa general contractor in this State shall make
and file with the board thirty (30) days prior to any regular or special
meeting thereof a written application of such form as may then be
by the board prescribed for examination by the board, which applica-
tion shall be accompanied by thirty ($30.00) dollars. The board may
require the applicant to furnish evidence of his ability, character and
financial responsibility, and if said application is satisfactory to the
board, then the applicant shall be entitled to an examination to determine
his qualifications. If the result of the examination of any applicant
shall be satisfactory to the board, then the board shall issue to the
applicant a certificate to engage as a general contractor in this State
as provided in said certificate, and it shall be the responsibility of the
board, or the members of said board, to ascertain from reliable sources
whether or not the past performance record of an applicant is good,
and whether or not he has the reputation of paying his labor and
material bills, as well as carrying out other contracts that he may have
entered into. Any applicant failing to pass such examination may
be re-examined at any regular meeting of the board without additional
fee. Certificate of registration shall expire on the last day of December
following its issuance or renewal and shall become invalid on that
date unless renewed, subject to the approval of the board. Renewal
may be effective any time during the month of January by the pay-
ment of a fee of fifteen ($15.00) dollars to the secretary of the board.

Section 10. The board shall have the power to revoke the certificate
of registration of any general contractor registered hereunder who is
found guilty of any fraud or deceit in obtaining the registration, or
gross negligence, incompetence or misconduct in the practice of his
profession, or wilful violation of any provision of this act. Any person
may prefer charges of such fraud, deceit, negligence, or misconduct
against any general contractor registered hereunder. Such charges shall
be in writing and sworn to by the complainant and submitted to the
board. Such charges, unless dismissed without hearing by the board
as unfounded or trival, shall be heard and determined within three
(3) months after the date in which they were preferred. A time and
place for such hearing shall be fixed by the board and held in the county
in which the cause of said charges originated. A copy of the charges
together with the notice of the time and place of hearing, shall be
legally served on the accused at least thirty (30) days before the fixed
date for the hearing, and in the event that such service cannot be ef-
fected thirty (30) days before such hearing, then the date of hearing
and determination shall be postponed as may be necessary to permit
the carrying out of this condition. At said hearing the accused shall
have the right to appear personally and by counsel and to cross-examine
witnesses against him, her or them, and to produce evidence of wit-
nesses in his, her or their defense. If after said hearing the board
shall: unanimously vote in favor of finding the accused guilty of any
fraud or deceit in obtaining certificate of registration, or of gross
negligence, incompetency or misconduct in practice, the board shall
revoke the registration of the accused, provided, however, that the
right of appeal shall be from the decision of the said board in all cases
to either the corporation or circuit court having jurisdiction where the
contract is to be performed, or where the cause of said charges origi-
nated and pending such appeal such contractor may continue to operate
until final adjudication.

The board may at any time reissue a certificate of registration to
any person, firm, association or corporation whose certificate has been
revoked, provided three or more members of the board vote in favor of
such reissuance.

The board shall immediately notify the Secretary of the Common-
wealth and the clerk of each incorporated city, town or county in the
State of its finding in the case of the revocation of a certificate or of
the reissuance of a revoked certificate.

A certificate of registration to replace any certificate lost, destroyed
or mutilated may be issued subject to the rules and regulations of the
board.

Section 11. The issuance of a certificate of registration by this
board shall be evidence that the person, firm, association or corporation
named therein is entitled to engage in business as a general contractor
while the said certificate remains unrevoked or unexpired.

Section 12. Any person, firm, association or corporation not being
duly authorized who shall contract for or bid upon the construction of
any of the projects or works enumerated in section one of this act,
without having first complied with the provisions hereof, or who shall
attempt to practice general contracting in this State, except as provided
for in this act, and any person, firm, association or corporation present-
ing or attempting to file as his own the registration certificate of another
or who shall give false or forged evidence of any kind to the board or
to any number thereof in maintaining a certificate of registration or
who falsely shall impersonate another or who shall use an expired or
revoked certificate, and any awarding authority, who knowingly receives
or considers a bid from any one not properly registered under this act,
shall be deemed guilty of a misdemeanor and the board may in its
discretion use its funds to defray the expense, legal or otherwise in
the prosecution of any violations of this act.

Section 13. Any persons, firm, association or corporation, upon
making application to the building inspector or such other authority
of any incorporated city, town, village or other political sub-division
in this State, charged with the duty of issuing building or other per-
mits for the construction of any building, highway, sewer, grading or
any improvement or structure where the cost thereof is to be ten
thousand dollars or more, shall, before he be entitled to the issuance
of such permit, furnish satisfactory proof to such inspector or authority
that he is duly registered under the terms of this act to carry out or
superintend the same and that he has paid the taxes and/or license
required by the laws of this State, and of any city, county, town, or
other political sub-division, thereof then in force so as to be qualified
to bid upon or contract for the work for which the permit has been
applied; and it shall be unlawful for such building inspector or other
authority to issue or allow the issuance of such building permit unless
and until the applicant has furnished evidence that he is either exempt
from the provisions of this act or is duly registered under this act
to carry out or superintend the work for which permit has been applied
and further that the applicant has paid the license then in force so as
to be qualified to bid upon or contract for the work covered by the
permit; and such building inspector, or other such authority, violating
the terms of this section shall be guilty of a misdemeanor.

Section 14. Any person, firm, association or corporation having
its residence or chief office in or incorporated under the law of the
State of Virginia who or which was engaged in the business of general
contracting in Virginia prior to July first, nineteen hundred and thirty-
eight, shall be entitled to a certificate of registration provided for in
this act upon payment of the fees herein prescribed, without submitting
to any examination.

Section 15. All architects and engineers preparing plans and speci-
fications for work to be contracted in Virginia shall include in their
invitations to bidder and in their specifications a reference to this act
so as to convey to the invited bidder, whether he be a resident or non-
resident of this State and whether a certificate of registration has been
issued to him or not, the information that it will be necessary for him
to show evidence of a certificate of registration before his bid 1s con-
sidered. Before any non-resident person, firm or association, or any
foreign corporation, shall bid on any work in this State, such non-
resident person, firm, or association, or any foreign corporation shall,
by written power of attorney, appoint the Secretary of the Common-
wealth and his successor in office the agent of such non-resident person,
firm or association, or any foreign corporation upon whom all lawful
process against or notice to such non-resident person, firm or associa-
tion or any foreign corporation may be served, and who shall be author-
ized to enter an appearance in behalf of such non-resident person, firm,
or association, or any foreign corporation. Upon the filing of such
power of attorney the provisions of sections thirty-eight hundred and
forty-five and thirty-eight hundred and forty-six of the Code of Vir-
ginia with reference to service of process and notice, and judgments,
decrees and orders entered therein, shall be applicable as to such non-
resident person, firm or association, or any foreign corporation.

Section 15-a. The provisions of this act shall not apply to the
practice of general contracting as defined in Section one of this Act
by any authorized representative or representatives of, or to the con-
struction, reconstruction or repair, of any of the projects or works
enumerated in Section one hereof where any such project or work is
financed wholly or in part with funds furnished by the United States
of America or any of its instrumentalities or agencies, the Common-
wealth of Virginia or any of its instrumentalities, agencies or institu-
tions, or by any county, city, town or other political subdivision of, or
any district, zone, local subdivision or area in, the State of Virginia.

Section 16. If any section, sentence or provision of this Act shall
be held unconstitutional or invalid, such holding shall not affect the
remainder of the Act not in itself unconstitutional or invalid.
Section 16134. Nothing in this act shall apply to any person who
for wages, undertakes to act as foreman or supervise any construction
project regardless of the cost thereof.

Section 17. Wherever the singular personal pronoun occurs in this
act, the same shall be taken to include any person, firm, association, or
corporation. |

Section 18. All other laws and parts of laws in conflict with this
act are hereby repealed.