City of Milwaukee - File #: 100593

• File #: 100593
• Version: 0
• Type: Ordinance
• Status: Passed
• File created: 9/21/2010
• In control: LICENSES COMMITTEE
• Final action: 10/12/2010
• Effective date: 10/29/2010
• Title: An ordinance eliminating the performance bond requirement for home improvement contractors.
• Sponsors: THE CHAIR
• Indexes: BONDS, LICENSES

Date	Ver.	Action By	Action	Result	Tally
10/28/2010	0	CITY CLERK	PUBLISHED
10/21/2010	0	MAYOR	SIGNED
10/12/2010	0	COMMON COUNCIL	PASSED	Pass	15:0
9/28/2010	0	LICENSES COMMITTEE	RECOMMENDED FOR PASSAGE; Minutes note: Individual present: Rebecca Grill present for this item. Ms. Grill said that the bonds requirements provides no value at this time.	Pass	3:0
9/21/2010	0	COMMON COUNCIL	ASSIGNED TO

Number

100593

Version

Original

Reference

Sponsor

The Chair

Title

An ordinance eliminating the performance bond requirement for home improvement contractors.

Sections

95-14-5-0                                          am

95-14-5-a                                            rp

95-14-5 b                                           rn

95-14-5-c                                            ra

95-14-5-d                                            ra

Analysis

This ordinance eliminates the performance bond requirement for home improvement contractors.

Current code requires a home improvement contractor to file a $1,000 performance bond with the city clerk. This performance bond protects the city, not the resident, and is unnecessary because the city’s liability insurance provides the same protection.

Body

The Mayor and Common Council of the City of Milwaukee do ordain as follows:

Part 1. Section 95-14-5-0 of the code is amended to read:

95-14. Home Improvement Contractor and Salesperson Licenses.

5. [[BONDS AND ]]INSURANCE. Upon application, every person applying for a contractor's license shall file with the city clerk [[a performance bond in the sum of $1,000 annual aggregate of all losses and ]]a certificate of insurance as provided in [[pars.]]>>par.<< a [[and b]].

Part 2. Section 95-14-5-a of the code is repealed.

Part 3. Section 95-14-5-b of the code is renumbered 95-14-5-a.

Part 4. Section 95-14-5-c and d of the code is renumbered 95-14-5-b and c and amended to read:

b. Cancellation or Nonrenewal. In the event of a cancellation or nonrenewal of [[either the performance bond or ]]the certificate of insurance, the contractor's license shall be automatically suspended. The suspension shall terminate upon presentation of a certificate of insurance [[or performance bond.]]that evidences that the policies required under this subsection have been issued or reissued to the contractor. All [[bonds and ]]certificates shall be executed by [[a corporate surety or ]]>>an<<insurance company licensed to do business in the state of Wisconsin and shall have affixed thereto an affidavit of no interest.

c. Reinstatement Fee. If a home improvement contractor license is suspended due to the cancellation, expiration or nonrenewal of a [[performance bond or ]]certificate of insurance required by this section, the contractor shall pay a fee specified in s. 81-1-6 prior to reinstatement of the license.

LRB

APPROVED AS TO FORM

____________________________

Legislative Reference Bureau

Date:  ______________________

Attorney

IT IS OUR OPINION THAT THE ORDINANCE

IS LEGAL AND ENFORCEABLE

____________________________

Office of the City Attorney

Date:  ______________________

Requestor

License Division

Drafter

#121329-1

ANC

09/13/10