Mississippi Home Court Rule Sent to Governor

The Mississippi Legislature has passed and on April 2, 2018, sent to the Governor HB 1306 for his signature. [Click here for link to House Bill 1306.] This legislation provides that "[a] provision in any contract, subcontract, or purchase order for the improvement of real property in this state or to provide materials therefor, is void and against public policy if it makes the contract, subcontract, or purchase order subject to the laws of another state, or provides that the exclusive forum for any litigation, arbitration or other dispute resolution process be located in another state." This means that Mississippi residents do not have to travel to foreign jurisdictions to have disputes resolved on projects located in Mississippi or have the laws of a foreign jurisdiction apply to a dispute arising out of or related to the improvement [construction or repair] of real property in this state.

This legislation provides Mississippi residents with a "home court" advantage that previously did not exist. HB 1306 will be effective for contracts entered into on or after July 1, 2018.

Amendment to Statutes Governing Mississippi State Board of Contractors -- Effective July 1, 2015

 

The 2015 Mississippi Legislature has made a number of changes to the statutes governing the Mississippi State Board of Contractors, Miss. Code Ann. §§ 31-3-1, et seq. and Miss. Code Ann. §§ 73-59-1, et seq. The enumerated changes are found in Senate Bill 2508 [click here for SB 2508], which have been sent to the Governor for his signature. Listed below are some of the changes:

     

  • Demolition is added to the list of activities covered by the statute for which a certificate of responsibility will be required.

     

  • The thirty (30) day waiting period for an application for a Certificate of Responsibility has been removed.

     

  • The number of entities for which a qualifying party may appear is limited to three (3) unless special permission is granted.

     

  • Grants the Board of Contractors to issue citations to any commercial or residential contractor preforming work with a Certificate of Responsibility and may order the work to be stopped.

     

  • The definition of "resident contractor" has been clarified to include a nonresident person, firm or corporation that has been qualified to do business in this state and has maintained a permanent full-time office in the State of Mississippi for two (2) years prior to submission of the bid.

 

     

  • Board of Contractors now has the authority to issue public reprimands for violations of the statutes and/or regulations.

     

  • The appeal process for commercial and residential contractors from a decision of State Board of Contractors has been clarified and defines content of administrative record which is to be considered on appeal.

     

  • The Board of Contractors has that authority to require residential builders and remodelers issued licenses after July 1, 2015, to have two (2) hours of continuing education per year.

Commercial and residential contractors and subcontractors should read these amended statutes and check the website for the Mississippi State Board of Contractors at http://www.msboc.us/ for any changes to its Rules and Regulations resulting from these legislative changes.