HB538 Summary

• Extends liability protection to owners, architects, engineers, construction managers, and awarding authorities when a subcontractor's current license number is submitted with a bid, matching protections previously available only for general contractors.

• Eliminates the exception that allowed subcontractors to bid on projects without a license; subcontractors must now be licensed prior to beginning work rather than just at time of bidding.

• Requires general contractors to ensure subcontractors are licensed before entering into construction contracts with them; violators face Class B misdemeanor penalties.

• Clarifies that general contractors and subcontractors cannot be held liable for receiving bids from unlicensed contractors.

• Becomes effective on the first day of the third month following passage and approval by the Governor.