2019 -- S 0081

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LC000507

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS - CONTRACTOR'S REGISTRATION

AND LICENSING BOARD

     

     Introduced By: Senators Coyne, Crowley, Quezada, Seveney, and DiPalma

     Date Introduced: January 16, 2019

     Referred To: Senate Judiciary

     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 required in

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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 that shall be presented at the time of issuance of a permit and

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

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

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movement, or repair of any building or structure or the appurtenance to the structure shall also

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require that each applicant for the permit file, as a condition to issuing the permit, a written

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

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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 that 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 that 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(4) if within

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any one twelve-month (12) 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 charge 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 that shall include the following information

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

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     (i) Names and addresses; and

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     (ii) Registration numbers or other license numbers.

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

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

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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. The 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:

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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 28 of title 34. However, such person

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

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

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claims by those not in privity with them, unless such owner, lessee or tenant, or owner of less

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than the fee 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 65.2 of this title and § 46-

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13.2-4.

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     (t) Contracts entered into pursuant to this chapter shall not contain any provision which

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would limit a consumer's rights to initiate legal proceedings against the contractor for breach of

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contract or any other allowable claim under § 5-65-11.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS - CONTRACTOR'S REGISTRATION

AND LICENSING BOARD

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     This act would prohibit any contractual clause in a contract for home repairs which would

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limit the homeowner's ability to initiate legal proceedings against the contractor for breach of

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contract.

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     This act would take effect upon passage.

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