2017 -- H 5826

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LC001826

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS - CONTRACTORS' REGISTRATION

AND LICENSING BOARD

     

     Introduced By: Representatives Tanzi, Carson, Ranglin-Vassell, McEntee, and
Donovan

     Date Introduced: March 02, 2017

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 5-65-3 of the General Laws in Chapter 5-65 entitled "Contractors'

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Registration and Licensing Board" is hereby amended to read as follows:

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     5-65-3. Registration for work on a structure required of contractor -- Issuance of

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building permits to unregistered or unlicensed contractors prohibited -- Evidence of activity

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as a contractor -- Duties of contractors.

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     (a) A person shall not undertake, offer to undertake, or submit a bid to do work as a

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contractor on a structure or arrange to have work done unless that person has a current, valid

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certificate of registration for all construction work issued by the board. A partnership,

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corporation, or joint venture may do the work, offer to undertake the work, or submit a bid to do

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the work only if that partnership, corporation, or joint venture is registered for the work. In the

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case of registration by a corporation or partnership, an individual shall be designated to be

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responsible for the corporation's or partnership's work. The corporation or partnership and its

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designee shall be jointly and severally liable for the payment of the registration fee, as requested

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in this chapter, and for violations of any provisions of this chapter. Disciplinary action taken on a

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registration held by a corporation, partnership, or sole proprietor may affect other registrations

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held by the same corporation, partnership, or sole proprietorship, and may preclude future

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registration by the principal of that business entity.

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     (b) A registered partnership or corporation shall notify the board in writing immediately

 

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upon any change in partners or corporate officers.

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     (c) A city, town, or the state shall not issue a building permit to anyone required to be

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registered under this chapter who does not have a current, valid certificate of registration

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identification card or valid license which shall be presented at the time of issuance of a permit

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and shall become a condition of a valid permit. Each city, town, or the state which requires the

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issuance of a permit as a condition precedent to construction, alteration, improvement,

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demolition, movement or repair of any building or structure or the appurtenance to the structure

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shall also require that each applicant for the permit file as a condition to issuing the permit a

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written affidavit subject to the penalties of perjury, subscribed by the applicant, that the applicant

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is registered under the provisions of this chapter, giving the number of the registration and stating

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that the registration is in full force and effect, or, if the applicant is exempt from the provisions of

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this chapter, listing the basis for the exemption. The city, town, or the state shall list the

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contractor's registration number on the permit obtained by that contractor, and if a homeowner is

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issued a permit, the building inspector or official must ascertain registration numbers of each

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contractor on the premises and shall inform the registration board of any non-registered

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contractors performing work at the site.

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     (d) Every city and town which requires the issuance of a business license as a condition

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precedent to engaging, within the city or town, in a business which is subject to regulation under

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this chapter, shall require that each licensee and each applicant for issuance or renewal of the

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license file, or has on file, with the city or town a signed statement that the licensee or applicant is

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registered under the provisions of this chapter and stating that the registration is in full force and

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effect.

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     (e) It shall be prima facie evidence of doing business as a contractor when a person for

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that person's own use performs, employs others to perform, or for compensation and with the

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intent to sell the structure, arranges to have performed any work described in § 5-65-1(3) if within

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any one twelve (12) month period that person offers for sale one or more structures on which that

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work was performed.

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     (f) Registration under this chapter shall be prima facie evidence that the registrant

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conducts a separate, independent business.

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     (g) The provisions of this chapter shall be exclusive and no city or town shall require or

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shall issue any registrations or licenses nor charges any fee for the regulatory registration of any

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contractor registered with the board. Nothing in this subsection shall limit or abridge the authority

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of any city or town to license and levy and collect a general and nondiscriminatory license fee

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levied upon all businesses, or to levy a tax based upon business conducted by any firm within the

 

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city or town's jurisdiction, if permitted under the laws of the state.

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     (h) (1) Every contractor shall maintain a list which shall include the following

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information about all subcontractors or other contractors performing work on a structure for that

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contractor:

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     (i) Names and addresses.

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     (ii) Registration numbers or other license numbers.

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     (2) The list referred to in subdivision (h)(1) of this subsection shall be delivered to the

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board within twenty-four (24) hours after a request is made during reasonable working hours, or a

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fine of twenty-five dollars ($25.00) may be imposed for each offense.

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     (i) The following subcontractors who are not employees of a registered contractor must

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obtain a registration certificate prior to conducting any work: (1) carpenters, including finish

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carpenters and framers; (2) siding installers; (3) roofers; (4) foundation installers, including

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concrete installers and form installers; (5) drywall installers; (6) plasterers; (7) insulation

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installers; (8) ceramic tile installers; (9) floor covering installers; (10) swimming pool installers,

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both above ground and in ground; (11) masons, including chimney installers, fireplace installers,

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and general masonry erectors. This list is not all inclusive and shall not be limited to the above

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referenced contractors. No subcontractor licensed by another in-state agency pursuant to § 5-65-2

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shall be required to register, provided that said work is performed under the purview of that

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license.

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     (j) A contractor including, but not limited to, a general contractor, shall not hire any

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subcontractor or other contractor to work on a structure unless the contractor is registered under

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this chapter or exempt from registration under the provisions of § 5-65-2.

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     (k) A summary of this chapter, prepared by the board and provided at cost to all

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registered contractors, shall be delivered by the contractor to the owner when the contractor

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begins work on a structure; failure to comply may result in a fine.

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     (l) The registration number of each contractor shall appear in any advertising by that

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contractor. Advertising in any form by an unregistered contractor shall be prohibited, including

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alphabetical or classified directory listings, vehicles, business cards, and all other forms of

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advertisements. The violations could result in a penalty being assessed by the board per

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administrative procedures established.

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     (i) The board may publish, revoke or suspend registrations and the date the registration

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was suspended or revoked on a quarterly basis.

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     (ii) Use of the word "license" in any form of advertising when only registered may

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subject the registrant or those required to be registered to a fine of one hundred dollars ($100) for

 

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each offense at the discretion of the board.

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     (m) The contractor must see that permits required by the state building code are secured

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on behalf of the owner prior to commencing the work involved. The contractor's registration

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number must be affixed to the permit as required by the state building code.

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     (n) The board may assess an interest penalty of twelve percent (12%) annually when a

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monetary award is ordered by the board.

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     (o) All work performed, including labor and materials, in excess of one thousand dollars

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($1,000) shall be accompanied by a contract in writing. Contracts required pursuant to this

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subsection shall include a location on or near the signature line location on or in which the parties

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to the contract shall initial to evidence the receipt of certain consumer education materials or

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information approved and provided by the board to the contractor. Said educational materials

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and/or information shall include, but not be limited to, the following notice and shall be provided

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by the contractor to the homeowner: NOTICE OF POSSIBLE MECHANIC'S LIEN

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     To: Insert name of owner, lessee or tenant, or owner of less than the simple fee.

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     The undersigned is about to perform work and/or furnish materials for the construction,

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erection, alterations or repair upon the land at (INSERT ADDRESS) under contract with you.

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This is a notice that the undersigned and any other persons who provide labor and materials for

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the improvement under contract with the undersigned may file a mechanic's lien upon the land in

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the event of nonpayment to them. It is your responsibility to assure yourself that those other

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persons under contract with the undersigned receive payment for their work performed and

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materials furnished for the construction, erection, alteration or repair upon the land. Failure to

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adhere to the provisions of this subsection may result in a one thousand dollar ($1,000) fine

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against the contractor and shall not affect the right of any other person performing work or

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furnishing materials of claiming a lien pursuant to Chapter 34-28. However, such person failing

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to provide such notice shall indemnify and hold harmless any owner, lessee or tenant, or owner of

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less than the fee simple from any payment or costs incurred on account of any liens claims by

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those not in privity with them, unless such owner, lessee or tenant, or owner of less than the fee

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simple shall not have paid such person.

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     (p) Contracts entered into must contain notice of right of rescission as stipulated in all

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pertinent Rhode Island consumer protection laws and/or §5-65-27 if applicable.

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     (q) The contractor must stipulate whether or not all the proper insurances are in effect for

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each job contracted.

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     (r) Contractors who are in compliance with the provisions of this subsection shall be

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exempt from the requirements of § 34-28-4.1.

 

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     (s) In addition to the requirements of this chapter, contractors engaged in well drilling

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activities shall also be subject to regulations pertaining to licensing and registration promulgated

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by the contractors' registration and licensing board pursuant to chapter 5-65.2 and § 46-13.2-4.

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     SECTION 2. Chapter 5-65 of the General Laws entitled "Contractors' Registration and

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Licensing Board" is hereby amended by adding thereto the following section:

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     5-65-27. Senior citizen home solicitation - Right to cancel.

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     (a) Definitions. For purposes of this section:

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     (1) "Consumer" means an individual who contracts with a person offering to undertake or

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submit a bid to do work as a contractor.

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     (2) "Home solicitation" means any transaction made at the consumer's primary residence,

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including telephonic or online, except those transactions initiated by the consumer. A consumer

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response to an advertisement is not a home solicitation.

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     (3) "Person" means an individual, partnerships, corporation, limited-liability company,

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association, or other group, however organized.

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     (4) "Senior citizen" means a person who is sixty-five (65) years of age or older.

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     (5) "Services" means work, labor, and services as a contractor pursuant to chapter 65 of

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title 5.

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     (b) In addition to all other methods of consumer protection provided by federal or state

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law, any contract which originates from a home solicitation of a senior citizen for the purposes of

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performing work as a contractor pursuant to chapter 65 of title 5 shall provide that any consumer

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who is a senior citizen shall have seven (7) days within which to cancel the home solicitation

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contract for contractor services.

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     (c) The contractor shall, at the time of the agreement in accordance with §5-65-3, give

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notice to the senior citizen of all the rights that substantially comply with this section. The notice

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must:

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     (1) Appear in the agreement under the conspicuous caption: "Notice of Cancellation";

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and

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     (2) Read as follows:

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     ... (date of transaction) "You may cancel this agreement, without any penalty or

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obligation, within seven (7) business days from the above date. If you cancel, your cancellation

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notice must state that you do not wish to be bound by the agreement and mailed by registered or

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certified mail not later than midnight seven (7) days following the consumer's signing the

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agreement, excluding Sunday and any holiday on which regular mail deliveries are not made. All

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cancellations must be mailed to:

 

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     (insert name and address of the seller)."

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     (d) Whenever the agreement fails to conform to the provisions of this section and the

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consumer or their agent has notified the seller of their intent to cancel the agreement by registered

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mail, return receipt requested, the contractor shall, within twenty (20) days, return any deposit

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made by the consumer. Failure to return any deposit shall enable the consumer to recover from

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the contractor double damages in any subsequent legal proceeding.

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     SECTION 3. This act shall take effect upon passage.

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LC001826

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS - CONTRACTORS' REGISTRATION

AND LICENSING BOARD

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     This act would provide that senior citizens may cancel any agreement for contractor

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services within seven (7) days if the contract originated in a home solicitation by the contractor.

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     This act would take effect upon passage.

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