39-9-207. Registration prerequisite to suit or lien claim -- limiting liability. (1) A person engaged in the business or acting in the capacity of a contractor may not bring or maintain an action in any court of this state for the collection of compensation for the performance of any work or for breach of contract for which registration is required under this chapter without alleging and proving that the contractor was a registered contractor and held a current and valid certificate of registration at the time the contractor entered the contract for the performance of work.
     (2) For the purposes of this section, the court may not find a contractor in compliance with the registration requirements of this chapter unless:
     (a) the department has on file the information required by 39-9-202; and
     (b) the contractor has a current bond or other security as required by 39-9-203.
     (3) In determining whether a contractor is in compliance with the registration requirements of this chapter, the court shall consider the length of time during which the contractor did not hold a valid certificate of registration.
     (4) A contractor may not bring or maintain a lien claim under Title 71, chapter 3, part 5, unless the contractor is registered at the time of entering into a contract.
     (5) A contractor engaging the services of another contractor is not liable as an employer for workers' compensation and unemployment insurance coverage for the other contractor or for any employee of the other contractor if the contractor verifies with the department that the other contractor with whom the contractor is contracting for services is registered as provided under this chapter.

     History: En. Sec. 9, Ch. 500, L. 1995.