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Commission recommends updates to contractor licensing rules and fees in Chapter 150
Summary
City staff proposed clarifications to Chapter 150 to align local general contractor insurance and workers' compensation requirements with state rules, add homeowner exemptions and reduce the contractor fee; the planning commission recommended approval.
The New Castle Planning and Zoning Commission on Jan. 27 recommended approval of amendments to Chapter 150 clarifying general contractor licensing, insurance and fee requirements.
Senior planner Kevin Hagbert said the city updated building regulations in April 2024 to adopt new IRC/ICC codes and that subsequent language created confusion about whether all general contractors must carry certain state-level insurance and workers' compensation. "The way that we originally had it written made it appear that everybody needed... insurance and workman's comp per state regulations. That is not a requirement for general contractors per the state," Hagbert said. He said the state requirements apply to trade contractors, not to general contractors, and staff revised local language accordingly.
Hagbert said the amendment contains three parts: (1) add a paragraph clarifying insurance and workers' compensation requirements for general contractors performing work for property owners, (2) reduce the general-contractor fee in Appendix A, Table 5 (staff described the prior fee as $200 and said it has been reduced), and (3) remove a reference to a state statute in section 150.31 where that reference was not appropriate for roofers and similar trades.
Staff proposed insurance thresholds that match surrounding communities, which Hagbert described in the hearing as "$50,000 per occurrence for insurance and $100,000 for a working's comp" (as stated in the staff comparison). The amendment also exempts homeowners and property owners acting as their own general contractor from the local requirement. City staff recommended the changes, and commissioners voted to recommend approval unanimously.
The commission recorded no public opposition. The amendments will move to the council for final action; staff noted the change is intended to reduce burdens on small contractors and homeowners while ensuring insurance coverage for projects where a general contractor performs work.
