Wisconsin Statutes & Annotations
Chapter 101 - Department of safety and professional services — regulation of industry, buildings and safety.
101.654 - Contractor certification; education.

101.654 Contractor certification; education.
(1)
(a) Subject to par. (b), no person may obtain a building permit unless the person annually obtains from the department a certificate of financial responsibility showing that the person is in compliance with sub. (2), completes the continuing education requirements described under sub. (1m), and furnishes to the issuer of the permit proof of completion of those continuing education requirements.
(b) Paragraph (a) does not apply to an owner of a dwelling who resides or will reside in the dwelling and who applies for a building permit to perform work on that dwelling.
(c)
1. In this paragraph, “ license" means an occupational license, as defined in s. 101.02 (1) (a) 2.
2. The continuing education requirements under par. (a) and the rules promulgated by the department under sub. (1m) do not apply to any person who holds a current license issued by the department at the time that the person obtains a building permit if the work the person does under the permit is work for which the person is licensed.
(1m)
(a) The department shall promulgate rules establishing continuing education requirements for persons seeking to obtain a building permit under sub. (1) (a).
(b) The rules promulgated under this subsection shall require all of the following:
1. Completion every 2 years of at least 12 hours of continuing education relevant to the professional area of expertise of the person seeking to obtain a building permit, approved by the department. The hours of continuing education required under this subdivision shall include a total of at least 4 hours of continuing education on construction laws and codes and contracts, liability, and risk management every 2 years.
2. Attendance at one or more professional meetings or educational seminars designed for both building contractors and building inspectors.
3. For a person who does not hold a certificate of financial responsibility on April 11, 2006, successful completion of an examination developed by the department on the continuing education courses required under this subsection.
(c) The rules promulgated under this subsection may not require a person who holds a certificate of financial responsibility on April 11, 2006, to take an examination on the continuing education courses required under this subsection.
(cm) The rules promulgated under this subsection may not require a person to take continuing education courses, or to take an examination on continuing education courses, that are not relevant to that person's professional area of expertise.
(d) Subject to the continuing education requirements under pars. (b) and (c), the rules promulgated under par. (a) may specify different continuing education course requirements for persons who hold a certificate of financial responsibility on April 11, 2006, and for persons who do not hold a certificate of financial responsibility on April 11, 2006.
(e) The department may approve continuing education courses that are offered by other states.
(f) A provider of a continuing education course approved by the department under this subsection shall do all of the following:
1. Submit to the department test questions related to the course.
2. After each occasion that a person completes the course over the Internet, submit to the department verification that the person completed the course and any test related to the course.
(2) An applicant for a certificate of financial responsibility shall provide to the satisfaction of the department proof of all of the following:
(a) That the applicant has in force one of the following:
1. A bond endorsed by a surety company authorized to do business in this state of not less than $5,000, conditioned upon the applicant complying with all applicable provisions of the one- and 2-family dwelling code and any ordinance enacted under s. 101.65 (1) (a).
2. A policy of general liability insurance insuring the applicant in the amount of at least $250,000 per occurrence because of bodily injury to or death of others or because of damage to the property of others and issued by one of the following:
a. An insurer authorized to do business in this state.
b. An insurer that is eligible to provide insurance as a surplus lines insurer in one or more states.
(b) If the applicant is required under s. 102.28 (2) (a) to have in force a policy of worker's compensation insurance or if the applicant is self-insured in accordance with s. 102.28 (2) (b) or (bm), that the applicant has in force a policy of worker's compensation insurance issued by an insurer authorized to do business in this state or is self-insured in accordance with s. 102.28 (2) (b) or (bm).
(c) If the applicant is required to make state unemployment insurance contributions under ch. 108 or is required to pay federal unemployment compensation taxes under 26 USC 3301 to 3311, that the applicant is making those contributions or paying those taxes as required.
(2m) If an applicant wishes to use a bond under sub. (2) (a) 1. of less than $25,000 to comply with sub. (2) (a), the applicant shall agree not to perform any work on a dwelling for which the estimated cost of completion is greater than the amount of the bond. The department shall indicate any restriction under this subsection on the certificate of financial responsibility issued under sub. (3).
(3)
(a) Upon receipt of all of the following, the department shall issue to the applicant a certificate of financial responsibility:
1. The proof required under sub. (2).
2. The fee required by rules promulgated under s. 101.63 (2m).
3. Proof of completing at least 12 hours in an educational course approved by the department that satisfies all of the following:
a. The educational course consists of in-person or online instruction.
b. The provider of the educational course requires the applicant to show photo identification to register attendance for the course.
c. The educational course includes instruction on accounting, lien law, ethics, and best business practices.
(b) A certificate of financial responsibility issued under this subsection is valid for one year after the date of issuance, unless sooner suspended or revoked.
(4)
(a) A bond or insurance policy required under sub. (2) may not be canceled by the person insured under the bond or policy or by the surety company or insurer except on 30 days' prior written notice served on the department in person or by 1st class mail or, if the cancellation is for nonpayment of premiums to the insurer, on 10 days' prior written notice served on the department in person or by 1st class mail. The person insured under the bond or policy shall file with the department proof to the satisfaction of the department of a replacement bond or replacement insurance within the 30-day notice period or 10-day notice period, whichever is applicable, and before the expiration of the bond or policy. The department shall suspend without prior notice or hearing the certificate of financial responsibility of a person who does not file satisfactory proof of a replacement bond or replacement insurance as required by this subsection.
(b) A bond under sub. (2) (a) 1. shall be executed in the name of the state for the benefit of any person who sustains a loss as a result of the person insured under the bond not complying with an applicable provision of the one- and 2-family dwelling code or any ordinance enacted under s. 101.65 (1) (a), except that the aggregate liability of the surety to all persons may not exceed the amount of the bond.
(5) The department may revoke or suspend a certificate of financial responsibility if any of the following apply:
(a) The holder fails to comply with the continuing education requirements specified under subs. (1) and (1m).
(b) The holder engages in the construction of a dwelling without a permit required under this chapter.
(c) The holder is convicted of a crime related to the construction of a dwelling.
(d) The holder has been adjudged bankrupt on 2 or more occasions.
History: 1993 a. 126; 1995 a. 392; 1997 a. 39; 2005 a. 200; 2007 a. 14; 2009 a. 276; 2015 a. 55, 180; 2017 a. 16, 331; 2021 a. 237.
A particular municipal licensure requirement may be preempted if that requirement logically conflicts with, defeats the purpose of, or violates the spirit of state contractor financial responsibility and continuing education requirements. Ordinances requiring local licensure are preempted if they impose on persons seeking a building permit for one- or two-family dwellings greater financial responsibility, education, or examination requirements than required by state law. OAG 6-10.

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