2022 -- H 7597 AS AMENDED | |
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LC004836 | |
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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 | |
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Introduced By: Representatives C Lima, Bennett, Cardillo, Williams, Morales, J | |
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 |
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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 |
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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 |
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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 | property. |
11 | (2) A person who is constructing, altering, improving, or repairing a structure located |
12 | within the boundaries of any site or reservation under the jurisdiction of the federal government. |
13 | (3) A person who furnishes materials, supplies, equipment, or furnishes products and does |
14 | not fabricate them into, or consume them, in the performance of the work of a contractor. If the |
15 | person wants to file a claim complaint pursuant to this chapter they must be registered pursuant to |
16 | this chapter. |
17 | (4) A person working on one structure or project, under one or more contracts when the |
18 | price of all of that person's contracts for labor, materials, and all other items is less than five hundred |
19 | dollars ($500) and the work is of a casual, minor, or inconsequential nature. This subsection does |
20 | not apply to a person who advertises or puts out any sign or card or other device that might indicate |
21 | to the public that the person is a contractor. |
22 | (5) This section does not apply to a person who constructs or for compensation with the |
23 | intent to sell the structure, or who arranges to have constructed a structure to be sold before, upon, |
24 | or after completion. It shall be prima facie evidence that there was intent to offer the structure for |
25 | sale if the person who constructed the structure or arranged to have the structure constructed does |
26 | not occupy the structure for one calendar year after completion. |
27 | (6) A person performing work on a single-dwelling-unit property that person owns, |
28 | whether occupied by that person or not, or a person performing work on that person's residence, |
29 | whether or not that person owns the residence. This subdivision does not apply to a person |
30 | performing work on a structure owned by that person if the work is performed, in the pursuit of an |
31 | independent business, with the intent of offering the structure for sale before, upon, or after |
32 | completion. |
33 | (7) A person who performs work subject to this chapter as an employee of a contractor. |
34 | (8) A manufacturer of a mobile home constructed under standards established by the |
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1 | federal government. |
2 | (9) A person involved in the movement of: |
3 | (i) Modular buildings or structures other than mobile homes not in excess of fourteen feet |
4 | (14') in width. |
5 | (ii) Structures not in excess of sixteen feet (16') in width when these structures are being |
6 | moved by their owner if the owner is not a contractor required to be registered under this chapter. |
7 | (10) Any person or business entity licensed by the state employing licensed trades persons |
8 | as defined by chapters 6, 20, and 56 of this title, and 26 and 27 of title 28 and working within the |
9 | purview of the license issued by the governing agency shall be exempt from all the provisions of |
10 | this chapter except § 5-65-7, requiring insurance. A valid certificate of insurance shall be required |
11 | to be maintained by the licensing agency during the terms of the issuance date of the license as a |
12 | condition for a valid license. Failure of the licensee to maintain this insurance shall result in loss of |
13 | license pursuant to requirements of statutes governing the licensing authority. |
14 | (b) No registration shall be issued to a nonresident contractor until he or she has filed with |
15 | the board a power of attorney constituting and appointing a registered agent upon whom all |
16 | processes in any action or legal proceeding against him or her may be served, and in the power of |
17 | attorney agrees that any lawful process against him or her that may be served upon his or her |
18 | registered agent is of the same force and validity as if served on the nonresident contractor, and that |
19 | the force continues irrevocably in force until such time as the board has been duly notified in writing |
20 | of any change to that status. |
21 | 5-65-3. Registration for work on a structure required of contractor -- Issuance of |
22 | building permits to unregistered or unlicensed contractors prohibited -- Evidence of activity |
23 | as a contractor -- Duties of contractors. |
24 | (a)(1) A person shall not undertake, offer to undertake, or submit a bid to do work as a |
25 | contractor on a structure or arrange to have work done unless that person has a current, valid |
26 | certificate of registration for all construction work issued by the board. A partnership, corporation, |
27 | limited liability company or joint venture may do the work; offer to undertake the work; or submit |
28 | a bid to do the work only if that partnership, corporation, limited liability company or joint venture |
29 | is registered for the work. In and in the case of registration by a corporation, limited liability |
30 | company, joint venture or partnership, an individual shall be designated to be responsible for the |
31 | corporation's, company's, joint venture's or partnership's work. The corporation, limited liability |
32 | company, joint venture or partnership and its individual designee shall be jointly and severally |
33 | liable and responsible for the payment of the registration fee, as required in this chapter, and for |
34 | compliance with all requirements and violations of any provisions of this chapter and the |
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1 | regulations promulgated thereunder. Disciplinary action taken on a registration held by a |
2 | corporation, partnership, limited liability company, joint venture, individual or sole proprietor may |
3 | affect other registrations held by the same corporation, partnership, limited liability company, joint |
4 | venture, individual or sole proprietorship, and may shall also be grounds for the board or office to |
5 | deny and preclude future registration by any corporation, partnership, limited liability company, |
6 | joint venture, individual or sole proprietorship where the disciplined registrant and the applicant |
7 | for registration have an individual the principal of that business entity and/or responsible designee |
8 | in common. |
9 | (b) A registered partnership, limited liability company, or corporation shall notify the board |
10 | in writing immediately upon any change in partners or corporate officers. |
11 | (c) A city, town, or the state shall not issue a building permit to anyone required to be |
12 | registered under this chapter who does not have a current, valid certificate of registration |
13 | identification card or valid license that shall be presented at the time of issuance of a permit and |
14 | shall become a condition of a valid permit. Each city, town, or the state that requires the issuance |
15 | of a permit as a condition precedent to construction, alteration, improvement, demolition, |
16 | movement, or repair of any building or structure or the appurtenance to the structure shall also |
17 | require that each applicant for the permit as a condition to issuing the permit, is registered under |
18 | the provisions of this chapter, giving the number of the registration and stating that the registration |
19 | is in full force and effect, or, if the applicant is exempt from the provisions of this chapter, listing |
20 | the basis for the exemption. The city, town, or the state shall list the contractor's registration number |
21 | on the permit obtained by that contractor, and if a homeowner is issued a permit, the building |
22 | inspector or official must ascertain registration numbers of each contractor on the premises and |
23 | shall inform the registration board of any non-registered contractors performing work at the site. |
24 | (d) Every city and town that requires the issuance of a business license as a condition |
25 | precedent to engaging, within the city or town, in a business that is subject to regulation under this |
26 | chapter, shall require that each licensee and each applicant for issuance or renewal of the license |
27 | file, or has on file, with the city or town a signed statement that the licensee or applicant is registered |
28 | under the provisions of this chapter and stating that the registration is in full force and effect. |
29 | (e) It shall be prima facie evidence of doing business as a contractor when a person for that |
30 | person's own use performs, employs others to perform, or for compensation and with the intent to |
31 | sell the structure, arranges to have performed any work described in § 5-65-1(4) if within any one |
32 | twelve-month (12) period that person offers for sale one or more structures on which that work was |
33 | performed. |
34 | (f) Registration under this chapter shall be prima facie evidence that the registrant conducts |
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1 | a separate, independent business. |
2 | (g) The provisions of this chapter shall be exclusive and no city or town shall require or |
3 | shall issue any registrations or licenses nor charge any fee for the regulatory registration of any |
4 | contractor registered with the board. Nothing in this subsection shall limit or abridge the authority |
5 | of any city or town to license and levy and collect a general and nondiscriminatory license fee |
6 | levied upon all businesses, or to levy a tax based upon business conducted by any firm within the |
7 | city or town's jurisdiction, if permitted under the laws of the state. |
8 | (h)(1) Every contractor shall maintain a list that shall include the following information |
9 | about all subcontractors or other contractors performing work on a structure for that contractor: |
10 | (i) Names and addresses; and |
11 | (ii) Registration numbers or other license numbers. |
12 | (2) The list referred to in subsection (h)(1) of this section shall be delivered to the board |
13 | within twenty-four (24) hours after a request is made during reasonable working hours, or a fine of |
14 | twenty-five dollars ($25.00) may be imposed for each offense. |
15 | (i) The following subcontractors who are not employees of a registered contractor must |
16 | obtain a registration certificate prior to conducting any work: (1) Carpenters, including finish |
17 | carpenters and framers; (2) Siding installers; (3) Roofers; (4) Foundation installers, including |
18 | concrete installers and form installers; (5) Drywall installers; (6) Plasterers; (7) Insulation installers; |
19 | (8) Ceramic tile installers; (9) Floor covering installers; (10) Swimming pool installers, both above |
20 | ground and in ground; (11) Masons, including chimney installers, fireplace installers, and general |
21 | masonry erectors; (12) Hardscape installers; (13) Power washers who perform work on structures; |
22 | and (14) Painters. This list is not all inclusive and shall not be limited to the above-referenced |
23 | contractors. No subcontractor licensed by another in-state agency pursuant to § 5-65-2 shall be |
24 | required to register, provided that said work is performed under the purview of that license. |
25 | (j) A contractor including, but not limited to, a general contractor, shall not hire any |
26 | subcontractor or other contractor to work on a structure unless the contractor is registered under |
27 | this chapter or exempt from registration under the provisions of § 5-65-2. |
28 | (k) A summary of this chapter, prepared by the board and provided at cost to all registered |
29 | contractors, shall be delivered by the contractor to the owner when the contractor begins work on |
30 | a structure; failure to comply may result in a fine. |
31 | (l) The registration number of each contractor shall appear in any advertising by that |
32 | contractor. Advertising in any form by an unregistered contractor shall be prohibited, including |
33 | alphabetical or classified directory listings, vehicles, business cards, and all other forms of |
34 | advertisements. The violations may result in a penalty being assessed by the board per |
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1 | administrative procedures established. |
2 | (i) The board may publish, revoke, or suspend registrations and the date the registration |
3 | was suspended or revoked on a quarterly basis. |
4 | (ii) Use of the word "license" in any form of advertising when only registered may subject |
5 | the registrant or those required to be registered to a fine of one hundred dollars ($100) for each |
6 | offense at the discretion of the board. |
7 | (m) The contractor must see that permits required by the state building code are secured on |
8 | behalf of the owner prior to commencing the work involved. The contractor's registration number |
9 | must be affixed to the permit as required by the state building code. |
10 | (n) The board may assess an interest penalty of twelve percent (12%) annually when a |
11 | monetary award is ordered by the board. |
12 | (o) All work performed, including labor and materials, in excess of one thousand dollars |
13 | ($1,000) shall be accompanied by a contract in writing. Contracts required pursuant to this |
14 | subsection shall include a location on or near the signature-line location on or in which the parties |
15 | to the contract shall initial to evidence the receipt of certain consumer education materials |
16 | disclosures and or information approved and provided by the board to the contractor. The |
17 | educational materials and/or information shall include, but not be limited to, required pursuant to |
18 | regulations promulgated by the board and the following notice and shall be provided by the |
19 | contractor to the homeowner: |
20 | NOTICE OF POSSIBLE MECHANIC'S LIEN |
21 | To: Insert name of owner, lessee, or tenant, or owner of less than the simple fee simple. |
22 | The undersigned is about to perform work and/or furnish materials for the construction, |
23 | erection, alterations, or repair upon the land at (INSERT ADDRESS) under contract with you. This |
24 | is a notice that the undersigned and any other persons who provide labor and materials for the |
25 | improvement under contract with the undersigned may file a mechanic's lien upon the land in the |
26 | event of nonpayment to them. It is your responsibility to assure yourself that those other persons |
27 | under contract with the undersigned receive payment for their work performed and materials |
28 | furnished for the construction, erection, alteration, or repair upon the land. |
29 | Failure to adhere to the provisions of this subsection may result in a one-thousand-dollar |
30 | fine ($1,000) against the contractor and shall not affect the right of any other person performing |
31 | work or furnishing materials of claiming a lien pursuant to chapter 28 of title 34. However, the |
32 | person failing to provide the notice shall indemnify and hold harmless any owner, lessee, or tenant, |
33 | or owner of less than the fee simple, from any payment or costs incurred on account of any lien |
34 | claims by those not in privity with them, unless the owner, lessee, or tenant, or owner of less than |
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1 | the fee simple, shall not have paid such person. |
2 | (p) Contracts entered into must contain notice of right of rescission as stipulated in all |
3 | pertinent Rhode Island consumer protection laws and/or § 5-65-27, if applicable. |
4 | (q) The contractor must stipulate whether or not all the proper insurances are in effect for |
5 | each job contracted. |
6 | (r) Contractors who are in compliance with the provisions of this section shall be exempt |
7 | from A notice of possible mechanic's lien given in accordance with the requirements of § 34-28- |
8 | 4.1 shall satisfy the notice of possible mechanic's lien required pursuant to subsection (o) of this |
9 | section. |
10 | (s) In addition to the requirements of this chapter, contractors engaged in well-drilling |
11 | activities shall also be subject to regulations pertaining to licensing and registration promulgated |
12 | by the contractors' registration and licensing board pursuant to chapter 65.2 of this title and § 46- |
13 | 13.2-4. |
14 | 5-65-5. Registered application. |
15 | (a) A person who wishes to register as a contractor shall submit an application upon a form |
16 | in a manner as prescribed by the board or office. The application shall include: |
17 | (1) Workers' compensation insurance account number, or company name if a number has |
18 | not yet been obtained, if applicable; |
19 | (2) Unemployment insurance account number, if applicable; |
20 | (3) State withholding tax account number, if applicable; |
21 | (4) Federal employer identification number, if applicable, or if self-employed and |
22 | participating in a retirement plan; |
23 | (5)(i) The individual(s) name and business address and residential address of: |
24 | (A) Each partner or venturer, if the applicant is a partnership or joint venture; |
25 | (B) The owner, if the applicant is an individual proprietorship; |
26 | (C) The corporation corporate officers, members and managers and a copy of corporate |
27 | papers filed with the Rhode Island secretary of state's office, if the applicant is a corporation; |
28 | (ii) Post office boxes are not acceptable as the only address; |
29 | (6) A statement as to whether or not the applicant has previously applied for registration, |
30 | or is or was an officer, manager, member, partner, or venturer of an applicant who previously |
31 | applied for registration and if so, the name of the corporation, limited liability company, |
32 | partnership, or venture; and |
33 | (7) Valid insurance certificate for the type of work being performed and as required under |
34 | § 5-65-7. |
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1 | (b) A person may be prohibited from registering or renewing a registration as a contractor |
2 | under the provisions of this chapter or his or her registration may be revoked or suspended if he or |
3 | she has any unsatisfied or outstanding judgments from arbitration, bankruptcy, courts, or |
4 | administrative agency against him or her relating to his or her work as a contractor, and provided, |
5 | further, that a statement shall be provided to the board attesting to the information herein. |
6 | (c) Failure to provide or falsified information on an application, or any document required |
7 | by this chapter, is punishable by a fine not to exceed ten thousand dollars ($10,000) or and/or denial |
8 | or revocation of the registration, or both. |
9 | (d) An applicant must be at least eighteen (18) years of age. |
10 | (e) For new applications, satisfactory proof shall be provided to the board evidencing the |
11 | completion of five (5) hours of preregistration education units as determined by the board pursuant |
12 | to established regulations. |
13 | (e)(f) For renewal applications, satisfactory Satisfactory proof shall be provided to the |
14 | board evidencing the completion of two and one-half (2.5) hours of continuing education units that |
15 | will be required to be maintained by residential contractors as a condition of registration as |
16 | determined by the board pursuant to established regulations. |
17 | (f)(g) A certification in a form issued by the board shall be completed upon registration or |
18 | license or renewal to ensure contractors are aware of certain provisions of this law and shall be |
19 | signed by the registrant before a registration can be issued or renewed. |
20 | 5-65-6. Contractor to notify of address change -- Effect of mail to last known address. |
21 | It is the duty of a contractor to notify the board in writing of any change of address while |
22 | registered and for one year following the date the contractor's registration expires or becomes |
23 | inactive. The contractor shall notify the board in writing within ten (10) days of the date upon which |
24 | the change of address occurs. Any proposed or final order or notice of hearing directed by the board |
25 | or office to the last-known address of record shall be considered delivered and deemed served when |
26 | deposited in the United States mail and/or sent registered or certified or post office receipt secured. |
27 | Any other communication directed by the board or office to the last-known address of record shall |
28 | be considered delivered when deposited in the United States mail, regular mail. |
29 | 5-65-7. Insurance required of contractors. |
30 | (a) Throughout the period of registration, the contractor shall have in effect public liability |
31 | and property damage insurance covering the work of that contractor that shall be subject to this |
32 | chapter in not less than the following amount: five hundred thousand dollars ($500,000) combined |
33 | single limit, bodily injury and property damage. |
34 | (b) In addition, all contractors shall have in effect workers' compensation insurance as |
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1 | required under chapter 29 of title 28. Failure to maintain required insurance shall not preclude |
2 | claims from being filed against a contractor. |
3 | (c) The contractor shall provide satisfactory evidence to the board at the time of registration |
4 | and renewal that the insurance required by subsection subsections (a) and (b) of this section has |
5 | been procured and is in effect. Failure to maintain insurance shall invalidate registration and may |
6 | result in a fine to the registrant and/or suspension or revocation of the registration. |
7 | 5-65-8. Term of registration – Renewal – Registration identification card Term of |
8 | registration – Renewal. |
9 | (a) A certificate of registration shall be valid for one (1) year from the date of issuance |
10 | unless the registration is revoked or suspended as described in § 5-65-10. It may be renewed by the |
11 | same procedure provided for an original registration upon application and furnishing of any |
12 | additional supplemental information that the board may require by rule. |
13 | (b) The board shall issue a pocket-card certificate of registration to a contractor registered |
14 | under this chapter including a picture of the registrant as prescribed by the board in the rules and |
15 | regulations. The Rhode Island department of administration, division of motor vehicles, shall, upon |
16 | the board's request, provide electronic copies of the digital photos of any registrant under this |
17 | chapter on record to be incorporated into the contractors' registration data bank to match the drivers' |
18 | licenses or IDs provided by registrants or applicants unless the applicant provides written |
19 | notification to the board to the contrary. |
20 | (c) The board may vary the dates of registration renewal by giving to the registrant written |
21 | notice of the renewal date assigned and by making appropriate adjustments in the renewal fee. |
22 | (d) The presentation of the registration or license identification card shall be mandatory at |
23 | the time of permit application. |
24 | (e) If a registrant files in bankruptcy court, the board must be notified in writing by the |
25 | registrant and kept informed of the status of the case until dismissed, discharged, or resolved in |
26 | court. |
27 | 5-65-9. Registration fee. |
28 | (a) Each applicant shall pay to the board:(1) For for original registration or renewal of |
29 | registration, a fee of one hundred and fifty dollars ($150). |
30 | (2) A fee for all changes in the registration, as prescribed by the board, other than those |
31 | due to clerical errors. |
32 | (b) All fees and fines collected by the board shall be deposited as general revenues to |
33 | support the activities set forth in this chapter until June 30, 2008. Beginning July 1, 2008, all All |
34 | fees and fines collected by the board shall be deposited into a restricted-receipt account for the |
| LC004836 - Page 11 of 25 |
1 | exclusive use of supporting programs established by this chapter. |
2 | (c) On or before January 15, 2018, and annually thereafter, the board shall file a report with |
3 | the speaker of the house and the president of the senate, with copies to the chairpersons of the house |
4 | and senate finance committees, detailing: |
5 | (1) The total number of fines issued, broken down by category, including the number of |
6 | fines issued for a first violation and the number of fines issued for a subsequent violation; |
7 | (2) The total dollar amount of fines levied; |
8 | (3) The total amount of fees, fines, and penalties collected and deposited for the most |
9 | recently completed fiscal year; and |
10 | (4) The account balance as of the date of the report. |
11 | (d) Each year, the department of business regulation shall prepare a proposed budget to |
12 | support the programs approved by the board. The proposed budget shall be submitted to the board |
13 | for its review. A final budget request shall be submitted to the legislature as part of the department |
14 | of business regulation's annual request. |
15 | (e) New or renewal registrations may be filed online or with a third party approved by the |
16 | board, with the additional cost incurred to be borne by the registrant. |
17 | 5-65-10. Grounds for discipline -- Injunctions. |
18 | (a) The board or office may revoke, suspend, or refuse to issue, reinstate, or reissue a |
19 | certificate of registration if the board or office determines, after notice and opportunity for a |
20 | hearing: |
21 | (1) That the registrant or applicant has violated § 5-65-3 or any other provision of this |
22 | chapter or the regulations promulgated thereunder. |
23 | (2) That the insurance required by § 5-65-7 is not currently in effect. |
24 | (3) That the registrant, licensee, or applicant has engaged in conduct as a contractor that is |
25 | dishonest or fraudulent that the board or office finds injurious to the welfare of the public. |
26 | (4) Has violated a rule or order of the board. |
27 | (5) That the registrant has knowingly assisted an unregistered person to act in violation of |
28 | this chapter or the regulations promulgated thereunder. |
29 | (6) That a lien was filed on a structure under chapter 28 of title 34 because the registrant or |
30 | applicant wrongfully failed to perform a contractual duty to pay money to the person claiming the |
31 | lien. |
32 | (7) That the registrant has substantially violated state or local building codes. |
33 | (8) That the registrant has made false or fraudulent statements on his or her application. |
34 | (9) That a registrant has engaged in repeated acts in violation of this chapter and the board's |
| LC004836 - Page 12 of 25 |
1 | rules and regulations inclusive of substandard workmanship and any misuse of registration. |
2 | (10) The board or office may take disciplinary action against a contractor who performed |
3 | work, or arranged to perform work, while the registration was suspended, invalidated, or revoked. |
4 | Deposits received by a contractor and ordered returned are not considered a monetary award when |
5 | no services or supplies have been received. |
6 | (11) That the registrant breached a contract. |
7 | (12) That the registrant performed negligent and/or improper work. |
8 | (13) That the registrant contractor has advertised with a license number instead of using a |
9 | registration number when only registered. |
10 | (14) That the registrant has failed to complete a project(s) for construction or willfully |
11 | failed to comply with the terms of a contract or written warranty. |
12 | (15) That the registrant has misrepresented his or her registration status as valid when the |
13 | registration was suspended, revoked, invalidated, inactive, or unregistered as required by the board. |
14 | (16) That the registrant has failed to pay a fine or comply with any order issued by the |
15 | board or office. |
16 | (17) That the registrant has failed to obtain or maintain the required continuing |
17 | education/units required by the board, or failed to sign the statement required by the board for |
18 | registration or renewal. |
19 | (18) When a violation for hiring a nonregistered contractor, working as a nonregistered |
20 | contractor, or not maintaining the insurance required is issued, the board or office may suspend the |
21 | registration may become invalidated until the violation is resolved to the satisfaction of the board |
22 | or office or otherwise through the administrative hearing is requested on this offense proceeding. |
23 | (19) That the registrant has violated any of the provisions of chapter 3 of title 25; 3, 12, 14, |
24 | 36, or 50 of title 28; or 13 of title 37. A finding that the registrant has violated any of those chapters |
25 | shall not be grounds for imposition of a monetary penalty under subsection (c) below. |
26 | (b) Subject to providing notice and an opportunity for a hearing, in In addition to all other |
27 | remedies, when it appears to the board or office has reason to believe that a person has engaged in, |
28 | or is engaging in, any act, practice, or transaction that violates the provisions of this chapter or the |
29 | regulations promulgated thereunder, the board or office may direct order such person to cease and |
30 | desist from the violation or request the attorney general to apply to the court for an injunction |
31 | restraining the person from violating the provisions of this chapter. An injunction shall not be issued |
32 | for failure to maintain the list provided for in § 5-65-3(h) unless the court determines that the failure |
33 | is intentional. |
34 | (c) Subject to providing notice and an opportunity for a hearing: |
| LC004836 - Page 13 of 25 |
1 | (1) For each first violation of a particular section of this chapter or any rule or regulation |
2 | promulgated by the board, a fine not to exceed five thousand dollars ($5,000) may be imposed after |
3 | a hearing by the board. Provided, further, that the board, at its discretion, may, after a hearing, |
4 | impose an additional fine up to but not to exceed the face value of the contract or the actual damages |
5 | caused by the contractor, whichever shall be greater. Where the claim is for actual damages, the |
6 | board shall require proof satisfactory to the board indicating the damages. Where corrective work |
7 | is completed as ordered by the board and/or if restitution is made to the person for whom the work |
8 | was to be performed, the fine assessed may be reduced as determined by the board. Fines and |
9 | decisions on claims or for violations, inclusive of monetary awards, can may be imposed against |
10 | registered contractors, as well as contractors those persons required to be registered, by the board. |
11 | (2) For each subsequent violation of a particular subsection of this chapter or of a rule or |
12 | regulation promulgated by the board, a fine not to exceed ten thousand dollars ($10,000) may be |
13 | imposed. after a hearing by the board. All fines collected by the board shall be deposited as general |
14 | revenues until June 30, 2008, to be used to enforce the provisions of this chapter. Beginning July |
15 | 1, 2008, all All fines collected by the board shall be deposited into a restricted-receipt account to |
16 | be used to enforce the provisions of this chapter. |
17 | (3) For the first a violation of § 5-65-3, only for nonregistered contractors, a fine of up to |
18 | five thousand dollars ($5,000) for a first offense and up to ten thousand dollars ($10,000) for each |
19 | subsequent offense shall be imposed. |
20 | (d) In any decision following a hearing, the The hearing officer, upon rendering a |
21 | conclusion, board or office may require the registrant, in addition to or in lieu of a fine, to attend |
22 | continuing education courses as appropriate. Failure to adhere to the requirement may result in |
23 | immediate revocation of the registration. |
24 | (e) The expiration of a registration by operation of law or by order or decision of the board, |
25 | the office or a court, or the voluntary surrender of registration by the registrant, does not deprive |
26 | the board or office of jurisdiction of an action or disciplinary proceeding against the registrant, or |
27 | to render a decision suspending or revoking a registration. |
28 | (f)(1) In emergency situations, when a registrant is acting to the detriment of the health, |
29 | welfare, and safety of the general public, the director of the department of business regulation, or |
30 | the director's designee, may revoke or suspend a registration without a hearing for just cause for a |
31 | period of thirty (30) days. |
32 | (2) A registration revocation or suspension in an emergency situation may be extended |
33 | beyond thirty (30) days after notice and opportunity for a hearing. |
34 | (g) A registrant may petition the board to partially or completely expunge his or her record |
| LC004836 - Page 14 of 25 |
1 | provided that notice of the expungement proceedings has been provided to the claimant who was |
2 | the subject of the violation. For purposes of this subsection, "notice" shall consist of a mailing to |
3 | the last-known address of the claimant and need not be actual notice and the board may grant or |
4 | deny such petition in its sole discretion. |
5 | (h) Any person or contractor, registered or not, who or that uses another contractor's |
6 | registration, contractor's registration identification card, or allows another person to use their |
7 | contractor's registration fraudulently in any way, will be subject to a fine not exceeding ten |
8 | thousand dollars ($10,000). |
9 | (i) When the use of fraudulent advertising entices is used to entice an individual to hire an |
10 | unregistered contractor, a fine of up to ten thousand dollars ($10,000) may be imposed on the |
11 | unregistered contractor by the board or office. |
12 | (j) It shall be unlawful to retain If a social security number or copy of the driver's license |
13 | is received from a registrant by a building official as a condition of obtaining a permit, such |
14 | information shall be maintained in accordance with applicable law. |
15 | (k) The board is further authorized upon certain findings or violations to: |
16 | (1) Put a lien on property held by a contractor. |
17 | (2) Take action on registrant when the continuing-education requirements have failed to be |
18 | attained as required in rules and regulations. |
19 | (3)(k) When upon investigation a complaint reveals: serious code infractions; unsatisfied |
20 | mechanic's liens; abandonment of a job for a substantial period of time without apparent cause; or |
21 | any other conduct detrimental to the public, the board can double the fines. |
22 | (4) Suspend, revoke, or refuse to issue, reinstate, or reissue a certificate of registration to |
23 | any registrant who has contracted, advertised, offered to contract, or submitted a bid when the |
24 | contractor's registration is suspended, revoked, invalidated, inactive, or unregistered as required by |
25 | the board. |
26 | (l) No person shall register as a contractor with the contractors' registration board for the |
27 | purpose of deceiving or circumventing the registration process by enabling a person whose |
28 | registration has been suspended or revoked to conduct business. Provided, further however, that |
29 | any person who, in good faith, relies on the board or the contractor's registration board's website |
30 | for information regarding registration status of another, shall be exempt from violations pursuant |
31 | to this section if the information provided by the board is not correct. Violators of this section shall |
32 | be jointly and individually liable and responsible for violations and for damages resulting from |
33 | their activities as contractors pursuant to this chapter. Violations of this subsection may result in a |
34 | suspension or revocation of registration and/or fines not to exceed ten thousand dollars ($10,000) |
| LC004836 - Page 15 of 25 |
1 | and/or up to one year in jail. Furthermore, the director of the department of business regulation, or |
2 | the director's designee, shall require that all applicants for registration shall sign a statement that |
3 | they are aware of this provision and its implications. |
4 | (m) Upon receipt of notice of a final determination, after the exhaustion of all appeals, by |
5 | the department of labor and training, consent agreement, or court order that a registered contractor |
6 | violated any of the provisions of chapter 3 of title 25; 3, 12, 14, 36, or 50 of title 28; or 13 of title |
7 | 37 and owes any wages, benefits, or other sums arising out of the violation, the board shall |
8 | immediately suspend the contractor's registration of the contractor in accordance with this |
9 | subsection. The suspension shall continue until all wages, benefits, or other sums owed have been |
10 | paid or the contractor has entered into a written, binding agreement to pay the same acceptable to |
11 | the department of labor and training and is not in default in of payment under the agreement. If the |
12 | contractor fails to remain current in payment under the agreement, the department of labor and |
13 | training shall notify the contractors' registration board and the suspension shall be imposed or |
14 | reinstated, as the case may be. The foregoing sanction is mandatory, but shall not be grounds for |
15 | imposition of a monetary penalty under subsection (c) above. |
16 | (n) When the registration of a contractor has been revoked or suspended, neither the |
17 | contractor nor any successor entity or sole proprietorship that: (1) Has one or more of the same |
18 | principals or officers as the partnership, limited partnership, limited-liability partnership, joint |
19 | venture, limited-liability company, corporation, or sole proprietorship as the subject contractor; and |
20 | (2) Is engaged in the same or equivalent trade or activity shall be qualified to register, apply, renew |
21 | or retain a registration as a contractor under this chapter, unless and until the board or office shall |
22 | determine that the basis of the revocation or suspension has been satisfied or removed and that the |
23 | registrant or applicant otherwise satisfies the requirements for registration under this chapter. |
24 | Notwithstanding the foregoing, a natural person may obtain relief from the application and |
25 | enforcement of this subsection as to him or her if he or she can establish that he or she was not |
26 | responsible for, and did not acquiesce to, the misconduct that is the basis of the revocation, |
27 | suspension, or denial of registration. |
28 | 5-65-11. Types of allowable claims Submission of complaints. |
29 | (a) The board and office shall only accept and make determinations of the following types |
30 | of claims for damages against contractors registered or required to be registered. This section shall |
31 | apply to and consider complaints for purposes of determining whether registered contractors or |
32 | other persons who are required to be registered have violated the provisions of this chapter or the |
33 | regulations promulgate thereunder. This includes complaints that contain the following types of |
34 | claims: |
| LC004836 - Page 16 of 25 |
1 | (1) Claims against a contractor by the owner of a structure for residential dwelling unit |
2 | asserting the following in performing any work subject to this chapter: |
3 | (i) Negligent work; |
4 | (ii) Improper work; |
5 | (iii) Breach of contract; or |
6 | (iv) Contract disputes. |
7 | (2) Claims against a contractor by the owner of a structure to discharge or to recoup funds |
8 | expended in discharging a lien established under chapter 28 of title 34 and under circumstances |
9 | described under this subsection. The board may reduce any amount adjudged by the board under |
10 | this section by any amount the claimant owes the contractor. The board shall only determine claims |
11 | under this subsection if: |
12 | (i) The owner has paid the contractor for that contractor's work subject to this chapter; and |
13 | (ii) A lien is filed against the structure of the owner under chapter 28 of title 34 because |
14 | the contractor failed to pay the person claiming the lien for that person's contribution toward |
15 | completion of the structure. |
16 | (3) Claims against a registered contractor by a registered contractor for asserting the |
17 | following in performing any work subject to this chapter: |
18 | (i) Negligent work; |
19 | (ii) Improper work; |
20 | (iii) Breach of contract; |
21 | (iv) Furnishing labor or material or renting or supplying equipment to a contractor; or |
22 | (v) Contract dispute. |
23 | (4) Claims by an employee of a registered contractor. |
24 | (5) If at a hearing the contractor's registration number is not on the contract, or recession |
25 | clause when required by law, or mechanic's lien notice; the registrant shall be subject to a fine. |
26 | (6) If a settlement/agreement reached by the parties, or payment plan is breached, the board |
27 | may hold an administrative hearing to suspend or revoke the contractors' registration, impose a |
28 | fine, and provide monetary relief. |
29 | (b) While the board and office will accept complaints for purposes of determining |
30 | violations and taking enforcement action against registrants and other persons pursuant to the |
31 | provisions of this chapter, the board and office will not adjudicate any complainant claims, causes |
32 | of action, or rights or remedies, contractual or otherwise, or order payment of monetary damages, |
33 | other monetary relief, specific performance, or other contractual or equitable remedies or relief to |
34 | or for a complainant. |
| LC004836 - Page 17 of 25 |
1 | (c) Nothing in this section shall alter or impair the ability of a registrant or other person |
2 | who violates the provisions of this chapter from entering into a consensual agreement or order with |
3 | the board or office that includes performance of work and/or restitution to a complainant in |
4 | consideration and as a condition of such consensual resolution of proceedings. |
5 | 5-65-12. Procedure for making claims against a contractor -- Investigation by board |
6 | -- Disciplinary action Procedure for making a complaint against a contractor -- Investigation |
7 | by board -- Disciplinary action. |
8 | (a) Any person having a claim complaint against a contractor of the type referred to in § 5- |
9 | 65-11, may file with the board a statement of the claim complaint in any a form and with any fee |
10 | that the board prescribes. The filing fee may be reimbursed to the claimant by the respondent, if |
11 | the respondent is found to be at fault. Claims Complaints resolved prior to issuance of an order may |
12 | be removed from the contractors' registration board record pursuant to administrative regulations. |
13 | (1) All claims complaints filed with the contractors' registration board shall be heard |
14 | processed by a designated hearing officer, unless either party prior to the administrative hearing, |
15 | files a civil action on the matter in a state court. Upon receipt of a written notice and a copy of the |
16 | filed civil complaint the office or the board for purposes of determining any violations as described |
17 | in this chapter. In the event a complainant or contractor files a civil action with respect to the matter, |
18 | the board shall may discontinue processing the claim If documentation is not received, the hearing |
19 | will be conducted. complaint; provided, however, that nothing herein shall preclude the board or |
20 | office from continuing investigation and enforcement proceedings with respect to any violations of |
21 | this chapter or the regulations promulgated thereunder. |
22 | (2) The commencement of a civil or criminal action and/or issuance of a A court judgment |
23 | may constitute the basis for regulatory action against a contractor's registration, which may result |
24 | in the imposition of fines and penalties. A petition to enforce a mechanic's lien does not necessarily |
25 | constitute a civil action for purposes of this section. |
26 | (b) The board may refuse to accept, or refuse at any time to continue processing a claim |
27 | complaint or determine to hold a complaint in abeyance, if: |
28 | (1) The same facts and issues involved in the claim complaint have been submitted to any |
29 | other entity authorized by law or the parties to effect a resolution and and/or settlement; |
30 | (2) The claimant complainant does not permit the contractor against whom the claim |
31 | complaint is filed to be present at any inspection made by the board; |
32 | (3) The board determines that the contractor against whom the claim complaint is filed is |
33 | capable of complying with the any recommendations made by the board relative to the claim |
34 | complaint, but the claimant complainant does not permit the contractor to comply with the |
| LC004836 - Page 18 of 25 |
1 | recommendations. The board may refuse to accept further process of a claim continue processing |
2 | a complaint under this paragraph only if the contractor was registered at the time the work was first |
3 | performed and is registered at the time the board makes its recommendations; or |
4 | (4) The board or office determines that the nature, or complexity, or amount in controversy |
5 | of the claim complaint is such that a court is the appropriate forum for the adjudication of the claim |
6 | complaint. |
7 | (c) The board shall not process a claim complaint unless it is filed in a timely manner as |
8 | follows: |
9 | (1) If the owner of a new structure files the claim complaint, the board must receive the |
10 | claim complaint not later than one year after the date the structure was first occupied as determined |
11 | from the date of issuance of the certificate of occupancy, or one year after the date of the closing |
12 | on the structure, whichever occurs later. |
13 | (2) If the owner of an existing structure files the claim complaint, the board must receive |
14 | the claim complaint not later than one year after the date the work was substantially completed as |
15 | determined by the certificate of occupancy, or the date that work ceased. |
16 | (3) Regardless of whether the claim complaint involves a new or existing structure, if the |
17 | owner files the claim complaint because the contractor failed to begin the work pursuant to a written |
18 | contract, the board must receive the claim complaint not later than one year after the date the parties |
19 | entered into a written contract. |
20 | (4) Regardless of whether the claim complaint involves a new or existing structure, if the |
21 | owner files a claim complaint because the contractor failed to substantially complete the work, the |
22 | board must receive the claim complaint not later than one year after the date the contractor ceased |
23 | work on the structure. |
24 | (5) If a registered general contractor files the claim a complaint against a registered |
25 | subcontractor because the subcontractor failed to substantially complete the work, the board must |
26 | receive the claim complaint not later than one year after the date the subcontractor ceased to work |
27 | on the structure. |
28 | (6) If a material or equipment supplier, an employee, or a registered subcontractor files the |
29 | claim complaint, the board must receive the claim complaint not later than one year after the date |
30 | the registrant incurred the indebtedness. |
31 | (7) The complainant will notify the board if after submission of the complaint, any |
32 | corrective work is performed to resolve the complaint. Any corrective work performed to resolve |
33 | a claim complaint shall be the responsibility of the contractor for one year beyond the completion |
34 | date but only for corrective work performed. |
| LC004836 - Page 19 of 25 |
1 | (d) Upon acceptance of the statement of claim claimant, the board shall give notice to the |
2 | party against whom the claim complaint is made and shall initiate proceedings to determine the |
3 | validity of the claim complaint. If, after investigation, the board determines that a violation of this |
4 | chapter or of any rule promulgated under this chapter has occurred, the board shall order take any |
5 | action deemed appropriate, including action on the contractor's registration and compensation to |
6 | the claimant for any damages incurred as the result of the violation or claim. If the contractor |
7 | performs accordingly, the board shall give that fact due consideration in any subsequent |
8 | disciplinary proceeding brought by the board and/or imposition of fines pursuant to § 5-65-10; |
9 | provided, that the board shall suspend for a period of one year certification of any registrant who |
10 | is found by final determination to have willfully and knowingly violated any provisions of this |
11 | chapter with respect to three (3) or more structures within a one-year period. |
12 | (e) In any action brought by a person under this chapter, the board may award, in addition |
13 | to the relief provided in this section, treble damages, reasonable attorney's fees and costs, and any |
14 | award for service of process costs pursuant to § 5-65-26. |
15 | (f) Notwithstanding any language limiting an action pursuant to this chapter, whenever a |
16 | consumer shall notify, in writing, a contractor of any problem with work performed by a contractor |
17 | or subcontractor within one year of the completion of the work and the problem has not been |
18 | corrected by the contractor or subcontractor, the aggrieved party shall have up to two (2) years one |
19 | year from the date of completion of the contractor's work to file a claim complaint with the |
20 | contractors' registration board. The two-year (2) one year period shall not be construed as an |
21 | extension of any one-year warranty period expressed in any contract. |
22 | 5-65-13. Nonlawyer may represent corporation before board. |
23 | A corporation or limited liability company that is registered or required to be registered as |
24 | a contractor under this chapter and that is a party in any proceeding before the board or any |
25 | representative of a party or office may appear or be represented in the proceeding by an officer of |
26 | the corporation who is not a member of the state bar; provided such officer provides satisfactory |
27 | documentation and attestation to the board confirming that such officer is the sole owner, officer, |
28 | director, manager, member of the corporation or limited liability company. |
29 | 5-65-14. Builder board -- Members -- Terms -- Confirmation -- Vacancies -- |
30 | Qualification. |
31 | (a) The board shall consist of seventeen (17) members appointed by the governor, at least |
32 | ten (10) of whom shall be registered contractors, of which. Of the seventeen (17), two (2) shall be |
33 | licensed roofers; one shall be a current member of the building codes standards committee pursuant |
34 | to § 23-27.3-100.1.4; one shall be a representative of the general public; one shall be a licensed and |
| LC004836 - Page 20 of 25 |
1 | practicing architect; and two (2) shall be licensed home inspectors; one who shall be the president |
2 | of the Rhode Island Builders Association or designee; one shall be the executive director of the |
3 | Utility Contractors Association of Rhode Island, or designee; one shall be the executive director of |
4 | the Rhode Island Independent Contractors and Associates, or designee; and one who shall be the |
5 | executive director of the Rhode Island Association of General Contractors or designee. The |
6 | building code standards committee member shall be designated by the state building commissioner, |
7 | and shall be appointed as provided in subsection (b) of this section. |
8 | (b) Except for the The commissioner's designee, the governor shall appoint seven (7) |
9 | members for a term of three (3) years and five (5) members for a term of two (2) years. The governor |
10 | shall appoint the member designated by the state building commissioner for a term of two (2) years. |
11 | Each member reappointed by the governor shall serve for the term of his or her original appointment |
12 | and the other members appointed by the governor shall each serve a term of three (3) years. Before |
13 | the expiration of the term of a member, the governor shall either reappoint the member or appoint |
14 | a successor. A member is eligible for reappointment. If there is a vacancy for any cause, the |
15 | governor shall make an appointment immediately effective for the unexpired term. At the |
16 | expiration of their terms, members shall remain and shall continue in their official capacity until a |
17 | new member is appointed and confirmed. |
18 | (c) In order to be eligible for board membership, the eight (8) ten (10) contractor members |
19 | of the board must be registered and/or licensed under this chapter and maintain their registrations |
20 | and/or licenses in good standing during their term of office. In order to be eligible for board |
21 | membership, the two (2) home inspector members shall be licensed pursuant to chapter 65.1 of this |
22 | title and shall maintain their license in good order during their terms of office. |
23 | 5-65-16. Powers and duties of the board -- Investigatory powers of board -- Use of city |
24 | or county inspectors -- Conduct of hearings. |
25 | (a) The board may investigate the activities of any person engaged in the building and |
26 | construction industry to determine compliance with this chapter. |
27 | (b) With the assistance of the city or town, the The board may conduct investigations with |
28 | the assistance of the local building officials. |
29 | (c) The board has the power to administer oaths; issue notices and subpoenas in the name |
30 | of the board; compel the attendance of witnesses and the production of evidence; hold hearings and |
31 | perform any other acts that are reasonably necessary to carry out its duties under this chapter. |
32 | (d) If any person fails to comply with a subpoena issued under subsection (c) or refuses to |
33 | testify on matters on which the person may be lawfully interrogated, such person shall be |
34 | considered in contempt and the board or director may compel obedience compliance and/or punish |
| LC004836 - Page 21 of 25 |
1 | any contempt of the authority in like manner as may be punished in either the supreme or the |
2 | superior court. |
3 | (e) The board shall have the authority to hire private investigators or constables to carry |
4 | out the duties of this chapter. The costs and expenses incurred by the hiring of private investigators |
5 | may be borne by the contractor or nonprevailing party. |
6 | (f) In addition to all powers granted to the board and office under this chapter the board |
7 | and office, and their designees, shall have the power and authority to: |
8 | (1) Award monetary damages and Assess fines as provided by this chapter; |
9 | (2) Order specific performance of any contract; and |
10 | (3) Provide any other relief and/or remedy provided by this chapter and the contractors' |
11 | registration board's rules and regulations. |
12 | (g) The board may, at its discretion, require any contractor who has had action taken against |
13 | his/her registration to obtain a bond not to exceed thirty thousand dollars ($30,000) in such amount |
14 | as determined by the board. |
15 | 5-65-19. Penalty for operating without a registration – Failure to comply with a final |
16 | order of the board – Repeat offense a felony Penalty for operating without a registration -- |
17 | Failure to comply with a final order or decision -- Repeat offense a felony. |
18 | In addition to any other penalties provided under this chapter: |
19 | (a) Any person who fails to register as a contractor as adjudged in a final order issued by |
20 | the board, upon proper written notification, is deemed guilty of a misdemeanor and, upon |
21 | conviction, shall be imprisoned for a term not exceeding one year, fined not more than one thousand |
22 | dollars ($1,000), or both, for a first or second offense. A third or subsequent violation of this |
23 | subsection chapter by a person for failure to register as a contractor is to be deemed a felony and, |
24 | upon conviction, the violator shall be imprisoned for a term not exceeding two (2) years, fined not |
25 | more than two thousand dollars ($2,000), or both. |
26 | (b) Any person who violates a final order of the board where the monetary total of the order |
27 | including, but not limited to, the monetary judgment and/or fines, is not more than five thousand |
28 | dollars ($5,000), upon proper written notification, is deemed guilty of a misdemeanor, and, upon |
29 | conviction, shall be imprisoned for a term not exceeding one year, fined not more than one thousand |
30 | dollars ($1,000), or both. |
31 | (c) Any person who violates a final order of the board where the monetary total of the order |
32 | including, but not limited to, the monetary judgment and/or fines, is five thousand dollars ($5,000) |
33 | or more, upon written notification, is deemed guilty of a felony and, upon conviction, shall be |
34 | imprisoned for a term not exceeding ten (10) years, fined not more than ten thousand dollars |
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1 | ($10,000), or both. |
2 | (d) A final order shall be considered delivered when served to a defendant or designated |
3 | agent to accept service. In addition to any sentence or fine imposed by the court under subsections |
4 | (a), (b), and (c), the court shall order a defendant to comply with any outstanding final order or |
5 | decision of the board or office, including any monetary judgment and to pay payment of to the |
6 | board any outstanding fine or fines previously imposed by the board or office pursuant to this |
7 | chapter. |
8 | (e) If a contractor is a repeat offender with violations of three (3) or more by final orders |
9 | or decisions of the board or office, a contractor is found to have committed violations of this chapter |
10 | with respect to three (3) or more separate contracts executed by with three (3) separate |
11 | individuals/aggrieved parties and the violations are filed occurred within a twenty-four-month (24) |
12 | period, the violation violations shall be deemed and prosecuted as a felony and upon conviction the |
13 | violator shall be subject to imprisonment for a term not to exceed ten (10) years or fined not more |
14 | than ten thousand dollars ($10,000). |
15 | 5-65-20. Administrative hearings. |
16 | (a) Contested claims or cases, contested enforcement proceedings, and contested |
17 | administrative fines shall be heard, in accordance with the administrative procedures act, chapter |
18 | 35 of title 42, and the administrative regulations promulgated by the board, by the hearings |
19 | officer(s) assigned by the director of the department of business regulation or the director's |
20 | designee. |
21 | (b) The board has jurisdiction to hear appeals from decisions of the hearing officer(s), and |
22 | may by regulation impose a filing fee, not to exceed twenty dollars ($20.00), for any appeal. |
23 | (c) Notwithstanding the preceding, the director of the department of business regulation, |
24 | or the director's designee, and the office is authorized to resolve complaints and contested |
25 | enforcement or claim proceedings through informal disposition pursuant to regulations |
26 | promulgated by the board. |
27 | 5-65-23. Registration required as part of bidding process. |
28 | Whenever any bid is solicited by the state or any municipality or private party in the state |
29 | of Rhode Island, the registration and/or license number of any bidder who is a contractor required |
30 | to be registered and/or licensed under the laws of the state of Rhode Island shall be provided by the |
31 | bidder. A space on the bid form, quotation, proposal, or other document shall indicate the bid price |
32 | to perform the particular work involved and shall also indicate the registration and/or license |
33 | number of the contractor, as issued by the state of Rhode Island, to perform that work. |
34 | 5-65-25. Violations -- Notice. |
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1 | The board shall provide, by way of the contractors' registration and licensing board website, |
2 | by request, or by any other means approved by the board, a posting of all final decisions and orders |
3 | issued by the board, all proposed orders of the board, and any and all hearing notices issued by the |
4 | board. Provided, however, that all claims and violations adjudicated in favor of the contractor shall |
5 | be removed from the website or publications as soon as practicable. |
6 | Provided however, this shall not prevent the board from expunging a contractor's record |
7 | pursuant to established rules and regulations. |
8 | 5-65-26. Notice of final order -- Service of process -- Restitution for homeowner |
9 | contributions Notice of final order -- Service of process. |
10 | In any final order or decision of the board or office determining that a contractor has |
11 | violated the provisions of this chapter or the regulations promulgated thereunder, the The board or |
12 | office is hereby authorized to assess against any the contractor a monetary award to the claimant |
13 | the costs of service of process up to but not to exceed one thousand dollars ($1,000) for the costs |
14 | of service of process for any final orders of the board when the funds for the service of process |
15 | were provided by an aggrieved party under this chapter. The aggrieved party's claim assessment |
16 | shall be limited to the actual cost of the service of process or one thousand dollars ($1,000), |
17 | whichever is less. The board shall require provide the contractor with proof of costs from the |
18 | aggrieved party evidencing the expense for the service of process upon request. |
19 | SECTION 2. This act shall take effect upon passage. |
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LC004836 | |
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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 | |
*** | |
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. |
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LC004836 | |
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