The commission may revoke, suspend, or restrict for a period not to exceed one year the license of a residential builder or registration of a residential specialty contractor who, in the opinion of the commission, has committed fraud or deceit in obtaining a license or in registering as required by the provisions of this chapter or has been guilty of gross negligence, incompetence, or misconduct in the practice of home building or residential specialty contracting. A person, including the commission, may prefer charges of fraud, deceit, negligence, incompetence, or misconduct against a residential builder licensed under this chapter or a residential specialty contractor registered under this chapter. The charges must be made to the commission in writing and sworn to by the person so charging and must be submitted to the director of the commission.

The charges, unless dismissed without hearing by the commission as unfounded or trivial, must be heard by the commission in an open hearing within three months after the date on which they were preferred. A copy of the charges, together with notice of the time and place of the hearing, must be served legally on the residential builder or residential specialty contractor charged at least thirty days before the fixed date for the hearing. At the hearing the residential builder or residential specialty contractor charged may appear personally or be represented by counsel and may cross-examine witnesses against him and produce evidence and witnesses in his defense. If, after the hearing, a majority of the commission votes in favor of revoking, suspending, or restricting for a period not to exceed one year, the license of the residential builder or registration of the residential specialty contractor charged on the basis of fraud or deceit in obtaining his license or in registering with the commission or gross negligence, incompetence, or misconduct in the performance of home building or residential specialty contracting, the commission shall order the license of the residential builder or the registration of the residential specialty contractor revoked, suspended, or restricted for a period not to exceed one year. After the commission revokes, suspends, or restricts for a period not to exceed one year the license of the residential builder or the registration of the residential specialty contractor, he has ten days to file with the commission written notice of his intention to appeal to an administrative law judge as provided under Article 5 of Chapter 23 of Title 1 from the order of the commission. All appeals from the order of the commission are governed by the provisions of Article 3, Chapter 23 of Title 1 (the Administrative Procedures Act).

The commission may reissue a license to a residential builder of a residential specialty contractor whose license was previously revoked if a majority of the members of the commission vote in favor of the reissuance.