2022 -- H 7597

========

LC004836

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

____________

A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS -- CONTRACTORS' REGISTRATION

AND LICENSING BOARD

     

     Introduced By: Representatives C Lima, Bennett, Cardillo, Williams, Morales, J
Lombardi, Hull, McNamara, and McLaughlin

     Date Introduced: March 02, 2022

     Referred To: House Corporations

     (Dept. of Business Regulation)

It is enacted by the General Assembly as follows:

1

     SECTION 1. Sections 5-65-1, 5-65-2, 5-65-3, 5-65-5, 5-65-6, 5-65-7, 5-65-8, 5-65-9, 5-

2

65-10, 5-65-11, 5-65-12, 5-65-13, 5-65-14, 5-65-16, 5-65-19, 5-65-20, 5-65-23, 5-65-25 and 5-65-

3

26 of the General Laws in Chapter 5-65 entitled "Contractors' Registration and Licensing Board"

4

are hereby amended to read as follows:

5

     5-65-1. Definitions.

6

     As used in this chapter:

7

     (1) "Appurtenances" means any accessory improvement to real estate associated with a

8

primary structure.

9

     (1)(2) "Board" means the contractors' registration and licensing board established pursuant

10

to the provisions of § 5-65-14 or its designees.

11

     (3) "Claim" means that portion of a complaint which pertains to the complainant's assertion

12

that they are entitled to monetary damages, an order for specific performance of work and/or other

13

contractual or equitable relief or remedies on account of allegations or disputes between themself

14

and a contractor or themself and a subcontractor.

15

     (2)(4) "Claim for retainage" means an allegation that a person seeking payment of retainage

16

breached the person's contract for the project; provided, however, that a "claim" related to a project

17

with a contract value of not less than two hundred fifty thousand dollars ($250,000) shall be subject

18

to the applicable dispute resolution procedure, notice, and other requirements in the contract for

 

1

construction.

2

     (5) "Complaint" means a written complaint submitted to the board or office with allegations

3

against or disputes involving a contractor which may contain a claim component and/or allegations

4

that a contractor has violated provisions of this chapter or the regulations promulgated hereunder.

5

     (3)(6)(i) "Contractor" means a person who, in the pursuit of an independent business,

6

undertakes or offers to undertake or submits a bid, or for compensation and with or without the

7

intent to sell the structure arranges to construct, alter, repair, improve, move constructs, alters,

8

repairs, improves, moves over public highways, roads, or streets or demolish demolishes a structure

9

or to perform any work in connection with the construction, alteration, repair, improvement,

10

moving over public highways, roads, or streets or demolition of a structure, and the appurtenances

11

thereto. For the purposes of this chapter, "appurtenances" includes, but is not limited to, the

12

installation, alteration, or repair of wells connected to a structure consistent with chapter 13.2 of

13

title 46, garage, carport, porch, patio, decks, docks, sheds, tents, gazebos, walkways, fencing,

14

driveways, retaining walls, swimming pools, sidewalks, stone/masonry walls and parking lots.

15

     (ii) "Contractor" includes, but is not limited to, any person who purchases or owns property

16

and constructs, or for compensation arranges for the construction of, one or more structures.

17

     (ii)(iii) A certificate of registration is necessary for each "business entity" regardless of the

18

fact that each entity may be owned by the same individual.

19

     (4)(7) "Contract for construction" means a contract for which a lien may be established

20

under chapter 28 of title 34 or for state or municipal public works projects as defined in title 37 on

21

a project for which the person on whose contract with the project owner has an original contract

22

price of not less than two hundred fifty thousand dollars ($250,000); provided, however, that

23

"contract for construction" shall not include a project containing, or designed to contain, at least

24

one, but not more than four (4), dwelling units.

25

     (5)(8) "Deliverable" means a project close-out document that shall be submitted by the

26

person seeking payment of retainage under the person's contract for construction; provided,

27

however, that a lien waiver or release, which is a deliverable, shall comply with chapter 28 of title

28

34; provided, further, that "deliverable" shall not include any document affirming, certifying, or

29

confirming completion or correction of labor, materials, or other items furnished or incomplete or

30

defective work.

31

     (6)(9) "Dwelling unit" means a single unit providing complete independent-living facilities

32

for one or more persons, including permanent provisions for living, sleeping, eating, cooking, and

33

sanitation.

34

     (7)(10) "Hearing officer" means a person designated by the director of the department of

 

LC004836 - Page 2 of 25

1

business regulation or the director's designee to hear contested claims or cases, contested

2

enforcement proceedings, and contested administrative fines, and to render decisions or orders in

3

accordance with the "administrative procedures act," chapter 35 of title 42.

4

     (8)(11) "Incomplete or defective work" means labor, materials, or any other item required

5

for full performance by a person seeking payment of retainage that remains to be furnished by the

6

person under the person's contract for construction or that has been furnished by the person but

7

requires correction, repair, further completion, revision, or replacement; provided, however, that

8

"incomplete or defective work" shall not include deliverables or labor, materials, or any other item

9

to be repaired or replaced after substantial or final completion pursuant to a warranty, guarantee,

10

or other contractual obligation to correct defective work after substantial or final completion.

11

     (9)(12) "Monetary damages" means the dollar amount required in excess of the contract

12

amount necessary to provide the claimant with what was agreed to be provided under the terms of

13

the contract reduced by any amount due and unpaid to the respondent inclusive of any and all

14

awards and restitution.

15

     (10)(13) "Office" means the state building office established pursuant to § 5-84-3.1.

16

     (11)(14) "Person" means any natural person, joint venture, partnership, corporation, or

17

other business or legal entity who or that enters into a contract for construction.

18

     (12)(15) "Prime contractor" means a person who or that enters into a contract for

19

construction with the project owner.

20

     (13)(16) "Retainage" means a portion or percentage of a payment due pursuant to a contract

21

for construction that is withheld to ensure full performance of the contract for construction.

22

     (14)(17) "Staff" means any staff necessary to carry out the powers, functions, and duties of

23

the board, or the office, including inspectors, hearing officers, and other supportive staff.

24

     (15)(18) "State" means the state State of Rhode Island.

25

     (16)(19) "Structure" means (i) Any commercial building; or (ii) Any building containing

26

one or more residences and their appurtenances. The board's dispute resolution process shall apply

27

only to residential structures containing dwelling units, as defined in the state building code, or

28

residential portions of other types of buildings without regard to how many units any structure may

29

contain. The board retains jurisdiction and may conduct hearings regarding violations against all

30

contractors required to be registered or licensed by the board.

31

     (17) "Substantially" means any violation that affects the health, safety, and welfare of the

32

general public.

33

     (18)(20) "Substantial completion" means the stage in the progress of the project when the

34

work required by the contract for construction with the project owner is sufficiently complete in

 

LC004836 - Page 3 of 25

1

accordance with the contract for construction so that the project owner may occupy or utilize the

2

work for its intended use; provided, further, that "substantial completion" may apply to the entire

3

project or a phase of the entire project if the contract for construction with the project owner

4

expressly permits substantial completion to apply to defined phases of the project.

5

     (21) "Violation" means a violation of any provision of this chapter or the regulations

6

promulgated hereunder or any order of the board or office.

7

     5-65-2. Applications.

8

     (a) The following persons shall be exempt from registration under this chapter:

9

     (1) A person who is constructing, altering, improving, or repairing his or her own personal

10

a property that is a single family dwelling occupied by such person and where the work is

11

undertaken without the assistance of any other person who is compensated but not registered, and

12

provided all building code requirements including obtaining all required permits, approvals and

13

inspections are complied with.

14

     (2) A person who is constructing, altering, improving, or repairing a structure located

15

within the boundaries of any site or reservation under the jurisdiction of the federal government.

16

     (3) A person who furnishes materials, supplies, equipment, or furnishes products and does

17

not fabricate them into, or consume them, in the performance of the work of a contractor. If the

18

person wants to file a claim complaint pursuant to this chapter they must be registered pursuant to

19

this chapter.

20

     (4) A person working on one structure or project, under one or more contracts when the

21

price of all of that person's contracts for labor, materials, and all other items is less than five hundred

22

dollars ($500) and the work is of a casual, minor, or inconsequential nature. This subsection does

23

not apply to a person who advertises or puts out any sign or card or other device that might indicate

24

to the public that the person is a contractor.

25

     (5) This section does not apply to a person who constructs or for compensation with the

26

intent to sell the structure, or who arranges to have constructed a structure to be sold before, upon,

27

or after completion. It shall be prima facie evidence that there was intent to offer the structure for

28

sale if the person who constructed the structure or arranged to have the structure constructed does

29

not occupy the structure for one calendar year after completion.

30

     (6) A person performing work on a single-dwelling-unit property that person owns,

31

whether occupied by that person or not, or a person performing work on that person's residence,

32

whether or not that person owns the residence. This subdivision does not apply to a A person

33

performing work on a structure owned by that person if the work is performed, in the pursuit of an

34

independent business, with the intent of offering the structure for sale before, upon, or after

 

LC004836 - Page 4 of 25

1

completion, shall not be exempt from registration.

2

     (7) A person who performs work subject to this chapter as an employee of a contractor.

3

     (8) A manufacturer of a mobile home constructed under standards established by the

4

federal government.

5

     (9) A person involved in the movement of:

6

     (i) Modular buildings or structures other than mobile homes not in excess of fourteen feet

7

(14') in width.

8

     (ii) Structures not in excess of sixteen feet (16') in width when these structures are being

9

moved by their owner if the owner is not a contractor required to be registered under this chapter.

10

     (10) Any person or business entity licensed by the state employing licensed trades persons

11

as defined by chapters 6, 20, and 56 of this title, and 26 and 27 of title 28 and working within the

12

purview of the license issued by the governing agency shall be exempt from all the provisions of

13

this chapter except § 5-65-7, requiring insurance. A valid certificate of insurance shall be required

14

to be maintained by the licensing agency during the terms of the issuance date of the license as a

15

condition for a valid license. Failure of the licensee to maintain this insurance shall result in loss of

16

license pursuant to requirements of statutes governing the licensing authority.

17

     (b) No registration shall be issued to a nonresident contractor until he or she has filed with

18

the board a power of attorney constituting and appointing a registered agent upon whom all

19

processes in any action or legal proceeding against him or her may be served, and in the power of

20

attorney agrees that any lawful process against him or her that may be served upon his or her

21

registered agent is of the same force and validity as if served on the nonresident contractor, and that

22

the force continues irrevocably in force until such time as the board has been duly notified in writing

23

of any change to that status.

24

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

25

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

26

as a contractor -- Duties of contractors.

27

     (a)(1) A person shall not undertake, offer to undertake, or submit a bid to do work as a

28

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

29

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

30

limited liability company or joint venture may do the work; offer to undertake the work; or submit

31

a bid to do the work only if that partnership, corporation, limited liability company or joint venture

32

is registered for the work. In and in the case of registration by a corporation, limited liability

33

company, joint venture or partnership, an individual shall be designated to be responsible for the

34

corporation's, company's, joint venture's or partnership's work. The corporation, limited liability

 

LC004836 - Page 5 of 25

1

company, joint venture or partnership and its individual designee shall be jointly and severally

2

liable and responsible for the payment of the registration fee, as required in this chapter, and for

3

compliance with all requirements and violations of any provisions of this chapter and the

4

regulations promulgated thereunder. Disciplinary action taken on a registration held by a

5

corporation, partnership, limited liability company, joint venture, individual or sole proprietor may

6

affect other registrations held by the same corporation, partnership, limited liability company, joint

7

venture, individual or sole proprietorship, and may shall also be grounds for the board or office to

8

deny and preclude future registration by any corporation, partnership, limited liability company,

9

joint venture, individual or sole proprietorship where the disciplined registrant and the applicant

10

for registration have an individual the principal of that business entity and/or responsible designee

11

in common.

12

     (b) A registered partnership, limited liability company, or corporation shall notify the board

13

in writing immediately upon any change in partners or corporate officers.

14

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

15

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

16

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

17

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

18

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

19

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

20

require that each applicant for the permit as a condition to issuing the permit, is registered under

21

the provisions of this chapter, giving the number of the registration and stating that the registration

22

is in full force and effect, or, if the applicant is exempt from the provisions of this chapter, listing

23

the basis for the exemption. The city, town, or the state shall list the contractor's registration number

24

on the permit obtained by that contractor, and if a homeowner is issued a permit, the building

25

inspector or official must ascertain registration numbers of each contractor on the premises and

26

shall inform the registration board of any non-registered contractors performing work at the site.

27

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

28

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

29

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

30

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

31

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

32

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

33

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

34

sell the structure, arranges to have performed any work described in § 5-65-1(4) if within any one

 

LC004836 - Page 6 of 25

1

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

2

performed.

3

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

4

a separate, independent business.

5

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

6

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

7

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

8

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

9

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

10

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

11

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

12

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

13

     (i) Names and addresses; and

14

     (ii) Registration numbers or other license numbers.

15

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

16

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

17

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

18

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

19

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

20

carpenters and framers; (2) Siding installers; (3) Roofers; (4) Foundation installers, including

21

concrete installers and form installers; (5) Drywall installers; (6) Plasterers; (7) Insulation installers;

22

(8) Ceramic tile installers; (9) Floor covering installers; (10) Swimming pool installers, both above

23

ground and in ground; (11) Masons, including chimney installers, fireplace installers, and general

24

masonry erectors; (12) Hardscape installers; (13) Power washers who perform work on structures;

25

and (14) Painters. This list is not all inclusive and shall not be limited to the above-referenced

26

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

27

required to register, provided that said work is performed under the purview of that license.

28

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

29

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

30

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

31

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

32

contractors, shall be delivered by the contractor to the owner when the contractor begins work on

33

a structure; failure to comply may result in a fine.

34

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

 

LC004836 - Page 7 of 25

1

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

2

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

3

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

4

administrative procedures established.

5

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

6

was suspended or revoked on a quarterly basis.

7

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

8

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

9

offense at the discretion of the board.

10

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

11

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

12

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

13

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

14

monetary award is ordered by the board.

15

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

16

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

17

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

18

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

19

disclosures and or information approved and provided by the board to the contractor. The

20

educational materials and/or information shall include, but not be limited to, required pursuant to

21

regulations promulgated by the board and the following notice and shall be provided by the

22

contractor to the homeowner:

23

NOTICE OF POSSIBLE MECHANIC'S LIEN

24

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

25

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

26

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

27

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

28

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

29

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

30

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

31

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

32

     Failure to adhere to the provisions of this subsection may result in a one-thousand-dollar

33

fine ($1,000) against the contractor and shall not affect the right of any other person performing

34

work or furnishing materials of claiming a lien pursuant to chapter 28 of title 34. However, the

 

LC004836 - Page 8 of 25

1

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

2

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

3

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

4

the fee simple, shall not have paid such person.

5

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

6

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

7

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

8

each job contracted.

9

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

10

from A notice of possible mechanic's lien given in accordance with the requirements of § 34-28-

11

4.1 shall satisfy the notice of possible mechanic's lien required pursuant to subsection (o) of this

12

section.

13

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

14

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

15

by the contractors' registration and licensing board pursuant to chapter 65.2 of this title and § 46-

16

13.2-4.

17

     5-65-5. Registered application.

18

     (a) A person who wishes to register as a contractor shall submit an application upon a form

19

in a manner as prescribed by the board or office. The application shall include:

20

     (1) Workers' compensation insurance account number, or company name if a number has

21

not yet been obtained, if applicable;

22

     (2) Unemployment insurance account number, if applicable;

23

     (3) State withholding tax account number, if applicable;

24

     (4) Federal employer identification number, if applicable, or if self-employed and

25

participating in a retirement plan;

26

     (5)(i) The individual(s) name and business address and residential address of:

27

     (A) Each partner or venturer, if the applicant is a partnership or joint venture;

28

     (B) The owner, if the applicant is an individual proprietorship;

29

     (C) The corporation corporate officers, members and managers and a copy of corporate

30

papers filed with the Rhode Island secretary of state's office, if the applicant is a corporation;

31

     (ii) Post office boxes are not acceptable as the only address;

32

     (6) A statement as to whether or not the applicant has previously applied for registration,

33

or is or was an officer, manager, member, partner, or venturer of an applicant who previously

34

applied for registration and if so, the name of the corporation, limited liability company,

 

LC004836 - Page 9 of 25

1

partnership, or venture; and

2

     (7) Valid insurance certificate for the type of work being performed and as required under

3

§ 5-65-7.

4

     (b) A person may be prohibited from registering or renewing a registration as a contractor

5

under the provisions of this chapter or his or her registration may be revoked or suspended if he or

6

she has any unsatisfied or outstanding judgments from arbitration, bankruptcy, courts, or

7

administrative agency against him or her relating to his or her work as a contractor, and provided,

8

further, that a statement shall be provided to the board attesting to the information herein.

9

     (c) Failure to provide or falsified information on an application, or any document required

10

by this chapter, is punishable by a fine not to exceed ten thousand dollars ($10,000) or and/or denial

11

or revocation of the registration, or both.

12

     (d) An applicant must be at least eighteen (18) years of age.

13

     (e) For new applications, satisfactory proof shall be provided to the board evidencing the

14

completion of five (5) hours of preregistration education units as determined by the board pursuant

15

to established regulations.

16

     (e)(f) For renewal applications, satisfactory Satisfactory proof shall be provided to the

17

board evidencing the completion of two and one-half (2.5) hours of continuing education units that

18

will be required to be maintained by residential contractors as a condition of registration as

19

determined by the board pursuant to established regulations.

20

     (f)(g) A certification in a form issued by the board shall be completed upon registration or

21

license or renewal to ensure contractors are aware of certain provisions of this law and shall be

22

signed by the registrant before a registration can be issued or renewed.

23

     5-65-6. Contractor to notify of address change -- Effect of mail to last known address.

24

     It is the duty of a contractor to notify the board in writing of any change of address while

25

registered and for one year following the date the contractor's registration expires or becomes

26

inactive. The contractor shall notify the board in writing within ten (10) days of the date upon which

27

the change of address occurs. Any proposed or final order or notice of hearing directed by the board

28

or office to the last-known address of record shall be considered delivered and deemed served when

29

deposited in the United States mail and/or sent registered or certified or post office receipt secured.

30

Any other communication directed by the board or office to the last-known address of record shall

31

be considered delivered when deposited in the United States mail, regular mail.

32

     5-65-7. Insurance required of contractors.

33

     (a) Throughout the period of registration, the contractor shall have in effect public liability

34

and property damage insurance covering the work of that contractor that shall be subject to this

 

LC004836 - Page 10 of 25

1

chapter in not less than the following amount: five hundred thousand dollars ($500,000) combined

2

single limit, bodily injury and property damage.

3

     (b) In addition, all contractors shall have in effect workers' compensation insurance as

4

required under chapter 29 of title 28. Failure to maintain required insurance shall not preclude

5

claims from being filed against a contractor.

6

     (c) The contractor shall provide satisfactory evidence to the board at the time of registration

7

and renewal that the insurance required by subsection subsections (a) and (b) of this section has

8

been procured and is in effect. Failure to maintain insurance shall invalidate registration and may

9

result in a fine to the registrant and/or suspension or revocation of the registration.

10

     5-65-8. Term of registration – Renewal – Registration identification card Term of

11

registration – Renewal.

12

     (a) A certificate of registration shall be valid for one (1) year from the date of issuance

13

unless the registration is revoked or suspended as described in § 5-65-10. It may be renewed by the

14

same procedure provided for an original registration upon application and furnishing of any

15

additional supplemental information that the board may require by rule.

16

     (b) The board shall issue a pocket-card certificate of registration to a contractor registered

17

under this chapter including a picture of the registrant as prescribed by the board in the rules and

18

regulations. The Rhode Island department of administration, division of motor vehicles, shall, upon

19

the board's request, provide electronic copies of the digital photos of any registrant under this

20

chapter on record to be incorporated into the contractors' registration data bank to match the drivers'

21

licenses or IDs provided by registrants or applicants unless the applicant provides written

22

notification to the board to the contrary.

23

     (c) The board may vary the dates of registration renewal by giving to the registrant written

24

notice of the renewal date assigned and by making appropriate adjustments in the renewal fee.

25

     (d) The presentation of the registration or license identification card shall be mandatory at

26

the time of permit application.

27

     (e) If a registrant files in bankruptcy court, the board must be notified in writing by the

28

registrant and kept informed of the status of the case until dismissed, discharged, or resolved in

29

court.

30

     5-65-9. Registration fee.

31

     (a) Each applicant shall pay to the board:(1) For for original registration or renewal of

32

registration, a fee of one hundred and fifty dollars ($150).

33

     (2) A fee for all changes in the registration, as prescribed by the board, other than those

34

due to clerical errors.

 

LC004836 - Page 11 of 25

1

     (b) All fees and fines collected by the board shall be deposited as general revenues to

2

support the activities set forth in this chapter until June 30, 2008. Beginning July 1, 2008, all All

3

fees and fines collected by the board shall be deposited into a restricted-receipt account for the

4

exclusive use of supporting programs established by this chapter.

5

     (c) On or before January 15, 2018, and annually thereafter, the board shall file a report with

6

the speaker of the house and the president of the senate, with copies to the chairpersons of the house

7

and senate finance committees, detailing:

8

     (1) The total number of fines issued, broken down by category, including the number of

9

fines issued for a first violation and the number of fines issued for a subsequent violation;

10

     (2) The total dollar amount of fines levied;

11

     (3) The total amount of fees, fines, and penalties collected and deposited for the most

12

recently completed fiscal year; and

13

     (4) The account balance as of the date of the report.

14

     (d) Each year, the department of business regulation shall prepare a proposed budget to

15

support the programs approved by the board. The proposed budget shall be submitted to the board

16

for its review. A final budget request shall be submitted to the legislature as part of the department

17

of business regulation's annual request.

18

     (e) New or renewal registrations may be filed online or with a third party approved by the

19

board, with the additional cost incurred to be borne by the registrant.

20

     5-65-10. Grounds for discipline -- Injunctions.

21

     (a) The board or office may revoke, suspend, or refuse to issue, reinstate, or reissue a

22

certificate of registration if the board or office determines, after notice and opportunity for a

23

hearing:

24

     (1) That the registrant or applicant has violated § 5-65-3 or any other provision of this

25

chapter or the regulations promulgated thereunder.

26

     (2) That the insurance required by § 5-65-7 is not currently in effect.

27

     (3) That the registrant, licensee, or applicant has engaged in conduct as a contractor that is

28

dishonest or fraudulent that the board or office finds injurious to the welfare of the public.

29

     (4) Has violated a rule or order of the board.

30

     (5) That the registrant has knowingly assisted an unregistered person to act in violation of

31

this chapter or the regulations promulgated thereunder.

32

     (6) That a lien was filed on a structure under chapter 28 of title 34 because the registrant

33

or applicant wrongfully failed to perform a contractual duty to pay money to the person claiming

34

the lien.

 

LC004836 - Page 12 of 25

1

     (7) That the registrant has substantially violated state or local building codes.

2

     (8) That the registrant has made false or fraudulent statements on his or her application.

3

     (9) That a registrant has engaged in repeated acts in violation of this chapter and the board's

4

rules and regulations inclusive of substandard workmanship and any misuse of registration.

5

     (10) The board or office may take disciplinary action against a contractor who performed

6

work, or arranged to perform work, while the registration was suspended, invalidated, or revoked.

7

Deposits received by a contractor and ordered returned are not considered a monetary award when

8

no services or supplies have been received.

9

     (11) That the registrant breached a contract.

10

     (12) That the registrant performed negligent and/or improper work.

11

     (13) That the registrant contractor has advertised with a license number instead of using a

12

registration number when only registered.

13

     (14) That the registrant has failed to complete a project(s) for construction or willfully

14

failed to comply with the terms of a contract or written warranty.

15

     (15) That the registrant has misrepresented his or her registration status as valid when the

16

registration was suspended, revoked, invalidated, inactive, or unregistered as required by the board.

17

     (16) That the registrant has failed to pay a fine or comply with any order issued by the

18

board or office.

19

     (17) That the registrant has failed to obtain or maintain the required continuing

20

education/units required by the board, or failed to sign the statement required by the board for

21

registration or renewal.

22

     (18) When a violation for hiring a nonregistered contractor, working as a nonregistered

23

contractor, or not maintaining the insurance required is issued, the board or office may suspend the

24

registration may become invalidated until the violation is resolved to the satisfaction of the board

25

or office or otherwise through the administrative hearing is requested on this offense proceeding.

26

     (19) That the registrant has violated any of the provisions of chapter 3 of title 25; 3, 12, 14,

27

36, or 50 of title 28; or 13 of title 37. A finding that the registrant has violated any of those chapters

28

shall not be grounds for imposition of a monetary penalty under subsection (c) below.

29

     (b) Subject to providing notice and an opportunity for a hearing, in In addition to all other

30

remedies, when it appears to the board or office has reason to believe that a person has engaged in,

31

or is engaging in, any act, practice, or transaction that violates the provisions of this chapter or the

32

regulations promulgated thereunder, the board or office may direct order such person to cease and

33

desist from the violation or request the attorney general to apply to the court for an injunction

34

restraining the person from violating the provisions of this chapter. An injunction shall not be issued

 

LC004836 - Page 13 of 25

1

for failure to maintain the list provided for in § 5-65-3(h) unless the court determines that the failure

2

is intentional.

3

     (c) Subject to providing notice and an opportunity for a hearing:

4

     (1) For each first violation of a particular section of this chapter or any rule or regulation

5

promulgated by the board, a fine not to exceed five thousand dollars ($5,000) may be imposed after

6

a hearing by the board. Provided, further, that the board, at its discretion, may, after a hearing,

7

impose an additional fine up to but not to exceed the face value of the contract or the actual damages

8

caused by the contractor, whichever shall be greater. Where the claim is for actual damages, the

9

board shall require proof satisfactory to the board indicating the damages. Where corrective work

10

is completed as ordered by the board and/or if restitution is made to the person for whom the work

11

was to be performed, the fine assessed may be reduced as determined by the board. Fines and

12

decisions on claims or for violations, inclusive of monetary awards, can may be imposed against

13

registered contractors, as well as contractors those persons required to be registered, by the board.

14

     (2) For each subsequent violation of a particular subsection of this chapter or of a rule or

15

regulation promulgated by the board, a fine not to exceed ten thousand dollars ($10,000) may be

16

imposed. after a hearing by the board. All fines collected by the board shall be deposited as general

17

revenues until June 30, 2008, to be used to enforce the provisions of this chapter. Beginning July

18

1, 2008, all All fines collected by the board shall be deposited into a restricted-receipt account to

19

be used to enforce the provisions of this chapter.

20

     (3) For the first a violation of § 5-65-3, only for nonregistered contractors, a fine of up to

21

five thousand dollars ($5,000) for a first offense and up to ten thousand dollars ($10,000) for each

22

subsequent offense shall be imposed.

23

     (d) In any decision following a hearing, the The hearing officer, upon rendering a

24

conclusion, board or office may require the registrant, in addition to or in lieu of a fine, to attend

25

continuing education courses as appropriate. Failure to adhere to the requirement may result in

26

immediate revocation of the registration.

27

     (e) The expiration of a registration by operation of law or by order or decision of the board,

28

the office or a court, or the voluntary surrender of registration by the registrant, does not deprive

29

the board or office of jurisdiction of an action or disciplinary proceeding against the registrant, or

30

to render a decision suspending or revoking a registration.

31

     (f)(1) In emergency situations, when a registrant is acting to the detriment of the health,

32

welfare, and safety of the general public, the director of the department of business regulation, or

33

the director's designee, may revoke or suspend a registration without a hearing for just cause for a

34

period of thirty (30) days.

 

LC004836 - Page 14 of 25

1

     (2) A registration revocation or suspension in an emergency situation may be extended

2

beyond thirty (30) days after notice and opportunity for a hearing.

3

     (g) A registrant may petition the board to partially or completely expunge his or her record

4

provided that notice of the expungement proceedings has been provided to the claimant who was

5

the subject of the violation. For purposes of this subsection, "notice" shall consist of a mailing to

6

the last-known address of the claimant and need not be actual notice and the board may grant or

7

deny such petition in its sole discretion.

8

     (h) Any person or contractor, registered or not, who or that uses another contractor's

9

registration, contractor's registration identification card, or allows another person to use their

10

contractor's registration fraudulently in any way, will be subject to a fine not exceeding ten

11

thousand dollars ($10,000).

12

     (i) When the use of fraudulent advertising entices is used to entice an individual to hire an

13

unregistered contractor, a fine of up to ten thousand dollars ($10,000) may be imposed on the

14

unregistered contractor by the board or office.

15

     (j) It shall be unlawful to retain If a social security number or copy of the driver's license

16

is received from a registrant by a building official as a condition of obtaining a permit, such

17

information shall be maintained in accordance with applicable law.

18

     (k) The board is further authorized upon certain findings or violations to:

19

     (1) Put a lien on property held by a contractor.

20

     (2) Take action on registrant when the continuing-education requirements have failed to be

21

attained as required in rules and regulations.

22

     (3)(k) When upon investigation a complaint reveals: serious code infractions; unsatisfied

23

mechanic's liens; abandonment of a job for a substantial period of time without apparent cause; or

24

any other conduct detrimental to the public, the board can double the fines.

25

     (4) Suspend, revoke, or refuse to issue, reinstate, or reissue a certificate of registration to

26

any registrant who has contracted, advertised, offered to contract, or submitted a bid when the

27

contractor's registration is suspended, revoked, invalidated, inactive, or unregistered as required by

28

the board.

29

     (l) No person shall register as a contractor with the contractors' registration board for the

30

purpose of deceiving or circumventing the registration process by enabling a person whose

31

registration has been suspended or revoked to conduct business. Provided, further however, that

32

any person who, in good faith, relies on the board or the contractor's registration board's website

33

for information regarding registration status of another, shall be exempt from violations pursuant

34

to this section if the information provided by the board is not correct. Violators of this section shall

 

LC004836 - Page 15 of 25

1

be jointly and individually liable and responsible for violations and for damages resulting from

2

their activities as contractors pursuant to this chapter. Violations of this subsection may result in a

3

suspension or revocation of registration and/or fines not to exceed ten thousand dollars ($10,000)

4

and/or up to one year in jail. Furthermore, the director of the department of business regulation, or

5

the director's designee, shall require that all applicants for registration shall sign a statement that

6

they are aware of this provision and its implications.

7

     (m) Upon receipt of notice of a final determination, after the exhaustion of all appeals, by

8

the department of labor and training, consent agreement, or court order that a registered contractor

9

violated any of the provisions of chapter 3 of title 25; 3, 12, 14, 36, or 50 of title 28; or 13 of title

10

37 and owes any wages, benefits, or other sums arising out of the violation, the board shall

11

immediately suspend the contractor's registration of the contractor in accordance with this

12

subsection. The suspension shall continue until all wages, benefits, or other sums owed have been

13

paid or the contractor has entered into a written, binding agreement to pay the same acceptable to

14

the department of labor and training and is not in default in of payment under the agreement. If the

15

contractor fails to remain current in payment under the agreement, the department of labor and

16

training shall notify the contractors' registration board and the suspension shall be imposed or

17

reinstated, as the case may be. The foregoing sanction is mandatory, but shall not be grounds for

18

imposition of a monetary penalty under subsection (c) above.

19

     (n) When the registration of a contractor has been revoked or suspended, neither the

20

contractor nor any successor entity or sole proprietorship that: (1) Has one or more of the same

21

principals or officers as the partnership, limited partnership, limited-liability partnership, joint

22

venture, limited-liability company, corporation, or sole proprietorship as the subject contractor; and

23

(2) Is engaged in the same or equivalent trade or activity shall be qualified to register, apply, renew

24

or retain a registration as a contractor under this chapter, unless and until the board or office shall

25

determine that the basis of the revocation or suspension has been satisfied or removed and that the

26

registrant or applicant otherwise satisfies the requirements for registration under this chapter.

27

Notwithstanding the foregoing, a natural person may obtain relief from the application and

28

enforcement of this subsection as to him or her if he or she can establish that he or she was not

29

responsible for, and did not acquiesce to, the misconduct that is the basis of the revocation,

30

suspension, or denial of registration.

31

     5-65-11. Types of allowable claims Submission of complaints.

32

     (a) The board and office shall only accept and make determinations of the following types

33

of claims for damages against contractors registered or required to be registered. This section shall

34

apply to and consider complaints for purposes of determining whether registered contractors or

 

LC004836 - Page 16 of 25

1

other persons who are required to be registered have violated the provisions of this chapter or the

2

regulations promulgate thereunder. This includes complaints that contain the following types of

3

claims:

4

     (1) Claims against a contractor by the owner of a structure for residential dwelling unit

5

asserting the following in performing any work subject to this chapter:

6

     (i) Negligent work;

7

     (ii) Improper work;

8

     (iii) Breach of contract; or

9

     (iv) Contract disputes.

10

     (2) Claims against a contractor by the owner of a structure to discharge or to recoup funds

11

expended in discharging a lien established under chapter 28 of title 34 and under circumstances

12

described under this subsection. The board may reduce any amount adjudged by the board under

13

this section by any amount the claimant owes the contractor. The board shall only determine claims

14

under this subsection if:

15

     (i) The owner has paid the contractor for that contractor's work subject to this chapter; and

16

     (ii) A lien is filed against the structure of the owner under chapter 28 of title 34 because

17

the contractor failed to pay the person claiming the lien for that person's contribution toward

18

completion of the structure.

19

     (3) Claims against a registered contractor by a registered contractor for asserting the

20

following in performing any work subject to this chapter:

21

     (i) Negligent work;

22

     (ii) Improper work;

23

     (iii) Breach of contract;

24

     (iv) Furnishing labor or material or renting or supplying equipment to a contractor; or

25

     (v) Contract dispute.

26

     (4) Claims by an employee of a registered contractor.

27

     (5) If at a hearing the contractor's registration number is not on the contract, or recession

28

clause when required by law, or mechanic's lien notice; the registrant shall be subject to a fine.

29

     (6) If a settlement/agreement reached by the parties, or payment plan is breached, the board

30

may hold an administrative hearing to suspend or revoke the contractors' registration, impose a

31

fine, and provide monetary relief.

32

     (b) While the board and office will accept complaints for purposes of determining

33

violations and taking enforcement action against registrants and other persons pursuant to the

34

provisions of this chapter, the board and office will not adjudicate any complainant claims, causes

 

LC004836 - Page 17 of 25

1

of action, or rights or remedies, contractual or otherwise, or order payment of monetary damages,

2

other monetary relief, specific performance, or other contractual or equitable remedies or relief to

3

or for a complainant.

4

     (c) Nothing in this section shall alter or impair the ability of a registrant or other person

5

who violates the provisions of this chapter from entering into a consensual agreement or order with

6

the board or office that includes performance of work and/or restitution to a complainant in

7

consideration and as a condition of such consensual resolution of proceedings.

8

     5-65-12. Procedure for making claims against a contractor -- Investigation by board

9

-- Disciplinary action Procedure for making a complaint against a contractor -- Investigation

10

by board -- Disciplinary action.

11

     (a) Any person having a claim complaint against a contractor of the type referred to in § 5-

12

65-11, may file with the board a statement of the claim complaint in any a form and with any fee

13

that the board prescribes. The filing fee may be reimbursed to the claimant by the respondent, if

14

the respondent is found to be at fault. Claims Complaints resolved prior to issuance of an order may

15

be removed from the contractors' registration board record pursuant to administrative regulations.

16

     (1) All claims complaints filed with the contractors' registration board shall be heard

17

processed by a designated hearing officer, unless either party prior to the administrative hearing,

18

files a civil action on the matter in a state court. Upon receipt of a written notice and a copy of the

19

filed civil complaint the office or the board for purposes of determining any violations as described

20

in this chapter. In the event a complainant or contractor files a civil action with respect to the matter,

21

the board shall may discontinue processing the claim If documentation is not received, the hearing

22

will be conducted. complaint; provided, however, that nothing herein shall preclude the board or

23

office from continuing investigation and enforcement proceedings with respect to any violations of

24

this chapter or the regulations promulgated thereunder.

25

     (2) The commencement of a civil or criminal action and/or issuance of a A court judgment

26

may constitute the basis for regulatory action against a contractor's registration, which may result

27

in the imposition of fines and penalties. A petition to enforce a mechanic's lien does not necessarily

28

constitute a civil action for purposes of this section.

29

     (b) The board may refuse to accept, or refuse at any time to continue processing a claim

30

complaint or determine to hold a complaint in abeyance, if:

31

     (1) The same facts and issues involved in the claim complaint have been submitted to any

32

other entity authorized by law or the parties to effect a resolution and and/or settlement;

33

     (2) The claimant complainant does not permit the contractor against whom the claim

34

complaint is filed to be present at any inspection made by the board;

 

LC004836 - Page 18 of 25

1

     (3) The board determines that the contractor against whom the claim complaint is filed is

2

capable of complying with the any recommendations made by the board relative to the claim

3

complaint, but the claimant complainant does not permit the contractor to comply with the

4

recommendations. The board may refuse to accept further process of a claim continue processing

5

a complaint under this paragraph only if the contractor was registered at the time the work was first

6

performed and is registered at the time the board makes its recommendations; or

7

     (4) The board or office determines that the nature, or complexity, or amount in controversy

8

of the claim complaint is such that a court is the appropriate forum for the adjudication of the claim

9

complaint.

10

     (c) The board shall not process a claim complaint unless it is filed in a timely manner as

11

follows:

12

     (1) If the owner of a new structure files the claim complaint, the board must receive the

13

claim complaint not later than one year after the date the structure was first occupied as determined

14

from the date of issuance of the certificate of occupancy, or one year after the date of the closing

15

on the structure, whichever occurs later.

16

     (2) If the owner of an existing structure files the claim complaint, the board must receive

17

the claim complaint not later than one year after the date the work was substantially completed as

18

determined by the certificate of occupancy, or the date that work ceased.

19

     (3) Regardless of whether the claim complaint involves a new or existing structure, if the

20

owner files the claim complaint because the contractor failed to begin the work pursuant to a written

21

contract, the board must receive the claim complaint not later than one year after the date the parties

22

entered into a written contract.

23

     (4) Regardless of whether the claim complaint involves a new or existing structure, if the

24

owner files a claim complaint because the contractor failed to substantially complete the work, the

25

board must receive the claim complaint not later than one year after the date the contractor ceased

26

work on the structure.

27

     (5) If a registered general contractor files the claim a complaint against a registered

28

subcontractor because the subcontractor failed to substantially complete the work, the board must

29

receive the claim complaint not later than one year after the date the subcontractor ceased to work

30

on the structure.

31

     (6) If a material or equipment supplier, an employee, or a registered subcontractor files the

32

claim complaint, the board must receive the claim complaint not later than one year after the date

33

the registrant incurred the indebtedness.

34

     (7) The complainant will notify the board if after submission of the complaint, any

 

LC004836 - Page 19 of 25

1

corrective work is performed to resolve the complaint. Any corrective work performed to resolve

2

a claim complaint shall be the responsibility of the contractor for one year beyond the completion

3

date but only for corrective work performed.

4

     (d) Upon acceptance of the statement of claim claimant, the board shall give notice to the

5

party against whom the claim complaint is made and shall initiate proceedings to determine the

6

validity of the claim complaint. If, after investigation, the board determines that a violation of this

7

chapter or of any rule promulgated under this chapter has occurred, the board shall order take any

8

action deemed appropriate, including action on the contractor's registration and compensation to

9

the claimant for any damages incurred as the result of the violation or claim. If the contractor

10

performs accordingly, the board shall give that fact due consideration in any subsequent

11

disciplinary proceeding brought by the board and/or imposition of fines pursuant to § 5-65-10;

12

provided, that the board shall suspend for a period of one year certification of any registrant who

13

is found by final determination to have willfully and knowingly violated any provisions of this

14

chapter with respect to three (3) or more structures within a one-year period.

15

     (e) In any action brought by a person under this chapter, the board may award, in addition

16

to the relief provided in this section, treble damages, reasonable attorney's fees and costs, and any

17

award for service of process costs pursuant to § 5-65-26.

18

     (f) Notwithstanding any language limiting an action pursuant to this chapter, whenever a

19

consumer shall notify, in writing, a contractor of any problem with work performed by a contractor

20

or subcontractor within one year of the completion of the work and the problem has not been

21

corrected by the contractor or subcontractor, the aggrieved party shall have up to two (2) years one

22

year from the date of completion of the contractor's work to file a claim complaint with the

23

contractors' registration board. The two-year (2) one year period shall not be construed as an

24

extension of any one-year warranty period expressed in any contract.

25

     5-65-13. Nonlawyer may represent corporation before board.

26

     A corporation or limited liability company that is registered or required to be registered as

27

a contractor under this chapter and that is a party in any proceeding before the board or any

28

representative of a party or office may appear or be represented in the proceeding by an officer of

29

the corporation who is not a member of the state bar; provided such officer provides satisfactory

30

documentation and attestation to the board confirming that such officer is the sole owner, officer,

31

director, manager, member of the corporation or limited liability company.

32

     5-65-14. Builder board -- Members -- Terms -- Confirmation -- Vacancies --

33

Qualification.

34

     (a) The board shall consist of seventeen (17) members appointed by the governor, at least

 

LC004836 - Page 20 of 25

1

ten (10) of whom shall be registered contractors, of which. Of the seventeen (17), two (2) shall be

2

licensed roofers; one shall be a current member of the building codes standards committee pursuant

3

to § 23-27.3-100.1.4; one shall be a representative of the general public; one shall be a licensed and

4

practicing architect; and two (2) shall be licensed home inspectors; one who shall be the president

5

of the Rhode Island Builders Association or designee; one shall be the executive director of the

6

Utility Contractors Association of Rhode Island, or designee; one shall be the executive director of

7

the Rhode Island Independent Contractors and Associates, or designee; and one who shall be the

8

executive director of the Rhode Island Association of General Contractors or designee. The

9

building code standards committee member shall be designated by the state building commissioner,

10

and shall be appointed as provided in subsection (b) of this section.

11

     (b) Except for the The commissioner's designee, the governor shall appoint seven (7)

12

members for a term of three (3) years and five (5) members for a term of two (2) years. The governor

13

shall appoint the member designated by the state building commissioner for a term of two (2) years.

14

Each member reappointed by the governor shall serve for the term of his or her original appointment

15

and the other members appointed by the governor shall each serve a term of three (3) years. Before

16

the expiration of the term of a member, the governor shall either reappoint the member or appoint

17

a successor. A member is eligible for reappointment. If there is a vacancy for any cause, the

18

governor shall make an appointment immediately effective for the unexpired term. At the

19

expiration of their terms, members shall remain and shall continue in their official capacity until a

20

new member is appointed and confirmed.

21

     (c) In order to be eligible for board membership, the eight (8) ten (10) contractor members

22

of the board must be registered and/or licensed under this chapter and maintain their registrations

23

and/or licenses in good standing during their term of office. In order to be eligible for board

24

membership, the two (2) home inspector members shall be licensed pursuant to chapter 65.1 of this

25

title and shall maintain their license in good order during their terms of office.

26

     5-65-16. Powers and duties of the board -- Investigatory powers of board -- Use of city

27

or county inspectors -- Conduct of hearings.

28

     (a) The board may investigate the activities of any person engaged in the building and

29

construction industry to determine compliance with this chapter.

30

     (b) With the assistance of the city or town, the The board may conduct investigations with

31

the assistance of the local building officials.

32

     (c) The board has the power to administer oaths; issue notices and subpoenas in the name

33

of the board; compel the attendance of witnesses and the production of evidence; hold hearings and

34

perform any other acts that are reasonably necessary to carry out its duties under this chapter.

 

LC004836 - Page 21 of 25

1

     (d) If any person fails to comply with a subpoena issued under subsection (c) or refuses to

2

testify on matters on which the person may be lawfully interrogated, such person shall be

3

considered in contempt and the board or director may compel obedience compliance and/or punish

4

any contempt of the authority in like manner as may be punished in either the supreme or the

5

superior court.

6

     (e) The board shall have the authority to hire private investigators or constables to carry

7

out the duties of this chapter. The costs and expenses incurred by the hiring of private investigators

8

may be borne by the contractor or nonprevailing party.

9

     (f) In addition to all powers granted to the board and office under this chapter the board

10

and office, and their designees, shall have the power and authority to:

11

     (1) Award monetary damages and Assess fines as provided by this chapter;

12

     (2) Order specific performance of any contract; and

13

     (3) Provide any other relief and/or remedy provided by this chapter and the contractors'

14

registration board's rules and regulations.

15

     (g) The board may, at its discretion, require any contractor who has had action taken against

16

his/her registration to obtain a bond not to exceed thirty thousand dollars ($30,000) in such amount

17

as determined by the board.

18

     5-65-19. Penalty for operating without a registration – Failure to comply with a final

19

order of the board – Repeat offense a felony Penalty for operating without a registration --

20

Failure to comply with a final order or decision -- Repeat offense a felony.

21

     In addition to any other penalties provided under this chapter:

22

     (a) Any person who fails to register as a contractor as adjudged in a final order issued by

23

the board, upon proper written notification, is deemed guilty of a misdemeanor and, upon

24

conviction, shall be imprisoned for a term not exceeding one year, fined not more than one thousand

25

dollars ($1,000), or both, for a first or second offense. A third or subsequent violation of this

26

subsection chapter by a person for failure to register as a contractor is to be deemed a felony and,

27

upon conviction, the violator shall be imprisoned for a term not exceeding two (2) years, fined not

28

more than two thousand dollars ($2,000), or both.

29

     (b) Any person who violates a final order of the board where the monetary total of the order

30

including, but not limited to, the monetary judgment and/or fines, is not more than five thousand

31

dollars ($5,000), upon proper written notification, is deemed guilty of a misdemeanor, and, upon

32

conviction, shall be imprisoned for a term not exceeding one year, fined not more than one thousand

33

dollars ($1,000), or both.

34

     (c) Any person who violates a final order of the board where the monetary total of the order

 

LC004836 - Page 22 of 25

1

including, but not limited to, the monetary judgment and/or fines, is five thousand dollars ($5,000)

2

or more, upon written notification, is deemed guilty of a felony and, upon conviction, shall be

3

imprisoned for a term not exceeding ten (10) years, fined not more than ten thousand dollars

4

($10,000), or both.

5

     (d) A final order shall be considered delivered when served to a defendant or designated

6

agent to accept service. In addition to any sentence or fine imposed by the court under subsections

7

(a), (b), and (c), the court shall order a defendant to comply with any outstanding final order or

8

decision of the board or office, including any monetary judgment and to pay payment of to the

9

board any outstanding fine or fines previously imposed by the board or office pursuant to this

10

chapter.

11

     (e) If a contractor is a repeat offender with violations of three (3) or more by final orders

12

or decisions of the board or office, a contractor is found to have committed violations of this chapter

13

with respect to three (3) or more separate contracts executed by with three (3) separate

14

individuals/aggrieved parties and the violations are filed occurred within a twenty-four-month (24)

15

period, the violation violations shall be deemed and prosecuted as a felony and upon conviction the

16

violator shall be subject to imprisonment for a term not to exceed ten (10) years or fined not more

17

than ten thousand dollars ($10,000).

18

     5-65-20. Administrative hearings.

19

     (a) Contested claims or cases, contested enforcement proceedings, and contested

20

administrative fines shall be heard, in accordance with the administrative procedures act, chapter

21

35 of title 42, and the administrative regulations promulgated by the board, by the hearings

22

officer(s) assigned by the director of the department of business regulation or the director's

23

designee.

24

     (b) The board has jurisdiction to hear appeals from decisions of the hearing officer(s), and

25

may by regulation impose a filing fee, not to exceed twenty dollars ($20.00), for any appeal.

26

     (c) Notwithstanding the preceding, the director of the department of business regulation,

27

or the director's designee, and the office is authorized to resolve complaints and contested

28

enforcement or claim proceedings through informal disposition pursuant to regulations

29

promulgated by the board.

30

     5-65-23. Registration required as part of bidding process.

31

     Whenever any bid is solicited by the state or any municipality or private party in the state

32

of Rhode Island, the registration and/or license number of any bidder who is a contractor required

33

to be registered and/or licensed under the laws of the state of Rhode Island shall be provided by the

34

bidder. A space on the bid form, quotation, proposal, or other document shall indicate the bid price

 

LC004836 - Page 23 of 25

1

to perform the particular work involved and shall also indicate the registration and/or license

2

number of the contractor, as issued by the state of Rhode Island, to perform that work.

3

     5-65-25. Violations -- Notice.

4

     The board shall provide, by way of the contractors' registration and licensing board website,

5

by request, or by any other means approved by the board, a posting of all final decisions and orders

6

issued by the board, all proposed orders of the board, and any and all hearing notices issued by the

7

board. Provided, however, that all claims and violations adjudicated in favor of the contractor shall

8

be removed from the website or publications as soon as practicable.

9

     Provided however, this shall not prevent the board from expunging a contractor's record

10

pursuant to established rules and regulations.

11

     5-65-26. Notice of final order -- Service of process -- Restitution for homeowner

12

contributions Notice of final order -- Service of process.

13

     In any final order or decision of the board or office determining that a contractor has

14

violated the provisions of this chapter or the regulations promulgated thereunder, the The board or

15

office is hereby authorized to assess against any the contractor a monetary award to the claimant

16

the costs of service of process up to but not to exceed one thousand dollars ($1,000) for the costs

17

of service of process for any final orders of the board when the funds for the service of process

18

were provided by an aggrieved party under this chapter. The aggrieved party's claim assessment

19

shall be limited to the actual cost of the service of process or one thousand dollars ($1,000),

20

whichever is less. The board shall require provide the contractor with proof of costs from the

21

aggrieved party evidencing the expense for the service of process upon request.

22

     SECTION 2. This act shall take effect upon passage.

========

LC004836

========

 

LC004836 - Page 24 of 25

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS -- CONTRACTORS' REGISTRATION

AND LICENSING BOARD

***

1

     The act would revise the manner in which complaints against contractors are made,

2

processed, investigated, and resolved in a more efficient and expeditious manner and would make

3

various technical and grammatical corrections.

4

     This act would take effect upon passage.

========

LC004836

========

 

LC004836 - Page 25 of 25