Chapter 282

2003 -- S 802 SUBSTITUTE A AS AMENDED

Enacted 07/17/03

AN ACT

RELATING TO BUSINESSES AND PROFESSIONS -- CONTRACTORS' REGISTRATION

Introduced By: Senator John A. Celona

Date Introduced: February 26, 2003

It is enacted by the General Assembly as follows:

SECTION 1. Sections 5-65-8, 5-65-9, 5-65-10 and 5-65-11 of the General Laws in

Chapter 5-65 entitled "Contractors’ Registration" are hereby amended to read as follows:

5-65-8. Term of registration -- Renewal -- Registration identification card. -- (a) A

certificate of registration is valid for ~~one year~~ two (2) years from the date of issuance unless the

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

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

additional supplemental information that the board may require by rule.

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

under this chapter.

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

fee.

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

time of permit application.

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

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

court.

5-65-9. Registration fee. -- Each applicant pays to the board:

(1) For original registration or renewal of registration, a fee ~~of sixty dollars ($60.00)~~ of

one hundred twenty dollars ($120.00).

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

due to clerical errors. All fees collected by the board are deposited as general revenues. to support

the activities set forth in this chapter.

(3) Each year, the executive director prepares a proposed budget to support the programs

approved by the board. The proposed budget is submitted to the board for their review. A final

budget request is submitted to the legislature as part of the division of central services annual

request.

5-65-10. Grounds for discipline -- Injunctions. -- (a) The board or commission may

revoke, suspend, or refuse to issue, reinstate, or reissue a certificate of registration if the board or

commission determines after notice and opportunity for a hearing:

(1) That the registrant or applicant has violated section 5-65-3.

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

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

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

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

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

of this chapter.

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

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

the lien.

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

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

(9) That a registrant has engaged in repeated acts in violation to this chapter and the

board's rules and regulations.

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

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

(11) That the registrant breached contract.

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

(b) In addition to all other remedies, when it appears to the board that a person has

engaged in, or is engaging in, any act, practice or transaction which violates the provisions of this

chapter, the board may direct the attorney general to apply to the court for an injunction

restraining the person from violating the provisions of this chapter. An injunction is not issued for

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

failure is intentional.

hundred dollars ($500) for the first violation of this chapter, or any rules or regulations

promulgated by the board per day per offense. In addition, when claims are filed, the board may

impose a fine upon the contractor in an amount not to exceed ten thousand dollars ($10,000)

when a contractor fails to complete work as ordered by the board or commission. The fine may

include the contract price or the value of corrective measures, the dollar amount of an imposed

lien, as well as incidental damages incurred by the prevailing party. Where corrective work is

completed as ordered by the board, the fine shall not be imposed.

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

regulation promulgated by the board, a fine of a minimum of five hundred dollars ($500) but not

to exceed one thousand dollars ($1,000) may be imposed after a hearing by the board. All

subsequent violations shall impose fines at a minimum of one thousand dollars ($1,000) but not

to exceed five thousand dollars ($5,000). All fines collected by the board are deposited as general

revenues to be used to enforce the provisions of this chapter.

(3) For the first violation of section 5-65-3, ~~concerning~~ only for non-registered

contractors, a minimum mandatory fine of two hundred fifty dollars ($250) shall be imposed, not

to exceed one thousand dollars ($1,000).

(d) The hearing officer, upon rendering a conclusion may require the registrant, in lieu of

a fine, to attend continuing education courses as appropriate. Failure to adhere to the requirement

could result in immediate revocation of registration.

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

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

board of jurisdiction, an action or disciplinary proceeding against the registrant or to render a

decision suspending or revoking a registration.

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

welfare and safety of the general public, the board's executive director may revoke or suspend a

registration without a hearing for just cause for a period of thirty (30) days.

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

record.

5-65-11. Types of allowable claims. -- The board only accepts and makes determinations

of the following types of claims for damages against contractors. ~~registered under this chapter.~~

This section applies to the following types of claims:

(1) Claims against a contractor by the owner of a structure for the following in

performing any work subject to this chapter:

(i) Negligent work.

(ii) Improper work.

(iii) Breach of contract.

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

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

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

the board under this section by any amount the claimant owes the contractor. The board only

determines claims under this subsection if:

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

and

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

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

completion of the structure.

(3) Claims against a registered contractor by a registered contractor for the following in

performing any work subject to this chapter:

(i) Negligent work;

(ii) Improper work;

(iii) Breach of contract; or

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

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

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

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

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

board may hold an administrative hearing to suspend or revoke the contractors’ registration,

impose a fine, and provide monetary relief.

SECTION 2. Sections 5-65.1-4, 5-65.1-9, 5-65.1-10 and 5-65.1-12 of the General Laws

in Chapter 5-65.1 entitled “Home Inspectors” are hereby amended to read as follows:

5-65.1-4. Eligibility for licensure as home inspector. -- (a) To be eligible for licensure

as a home inspector, an applicant shall fulfill the following requirements:

(1) Be of good moral character;

(2) Have successfully completed high school or its equivalent;

(3) Have been engaged as a licensed associate home inspector for no less than one year,

and have performed not less than one hundred (100) home inspections for compensation, or have

been a registered/licensed contractor in good standing in any state for an aggregate of not less

than five (5) years; and

(4) Have passed an examination approved or administered by the board. The

examination may have been passed before the effective date of this chapter; or

(b) For the first three hundred and sixty-five (365) days after the effective date of this

chapter, the board shall issue a license to any person upon application, provided that the applicant

meets:

(1) The requirements of subdivisions (a)(1), (2) and (4), and either (i) has been engaged

in the practice of home inspections for compensation for not less than one year prior to July 1,

~~2000~~ 2003 and has performed not less than one hundred (100) home inspections for

compensation, prior to July, ~~2001~~ 2003, or (ii) is a registered/licensed contractor in good standing

in any state for an aggregate of not less than five (5) years; or

(2) The requirements of subdivisions (a)(1) and (2) of this section and has been engaged

in the practice of home inspections for compensation for not less than two years and performed

not less than 150 home inspections for compensation prior to July 1, ~~2000~~ 2003.

5-65.1-9. Fees. -- (a) The board is hereby empowered and directed to establish a fee

schedule for the application, continuing education, examination and re-examination of applicants

for licensing; provided, however, that the fee for home inspector and associate home inspector

licenses, and all subsequent renewals shall be two hundred dollars ($200). All licenses issued by

the board shall be valid for two (2) years.

(b) Any fees established, prescribed, or changed by the board shall be to the extent

necessary to defray all proper expenses incurred by the board and any staff employed to

administer this chapter, except that fees shall not be fixed at a level that will raise revenues in

excess of the amount estimated to be so required.

shall be allocated to provide sufficient resources to properly administer this program.

5-65.1-10. Insurance requirements. -- (a) Every licensed home inspector and associate

home inspector shall secure, maintain, and file with the board a certificate of insurance for an

errors and omissions policy and a certificate of insurance for a general liability policy; both shall

be for a minimum amount of two hundred and fifty thousand dollars ($250,000) ~~in the aggregate.~~

per occurrence, and five hundred thousand dollars ($500,000) in the aggregate. These certificates

must be valid from the date a license is issued until the license expires. Such proof shall be

deemed satisfactory if the policy is carried by the corporation, partnership or franchise for which

the home inspector is a contracted employee and the home inspector or associate home inspector

is specifically covered by such policy.

(b) Every proof of an errors and omissions or general liability policy required to be filed

with the board shall not be effective unless it provides that the insurance may not be canceled

until at least ten (10) days notice of intention to cancel or to not renew has been received in

writing by the board.

result in the immediate loss of his or her license.

5-65.1-12. Licensing requirement and prohibitions. -- (a) Any person who provides,

presents, calls or represents himself or herself as a home inspector for compensation shall be

licensed in accordance with the provisions of this chapter.

(b) No person, not licensed as a home inspector or associate home inspector, shall

advertise or hold himself or herself out as a home inspector, or impersonate a home inspector or

associate home inspector.

inspector or represent itself as an inspection company unless a licensed home inspector as

provided in this chapter is continuously engaged in the supervision of its inspections.

SECTION 3. Sections 5-73-3 and 5-73-4 of the General Laws in Chapter 5-73 entitled

“Roofing Contractors” are hereby amended to read as follows:

5-73-3. Registration and licensing of roofing contractors. -- (a) All roofing

contractors, in addition to the requirements of chapter 65 of this title entitled "Contractor's

Registration", if applicable, prior to conducting roofing business in the state of Rhode Island,

must first submit an application to and be licensed by the contractor registration board on the

form or forms that the board requires. The application includes the following information:

(1) The name of the applicant;

(2) The business address of the applicant;

(3) The mailing address of the applicant;

(4) The telephone number of the applicant;

(5) The name of the party or officer who is responsible for all roofing activities

conducted in the state of Rhode Island

(6) Any registration number and/or other license numbers issued by the state, or any city

or town; and

(7) A statement of the skills, training and experience of the applicant sufficient to ensure

public safety, health and welfare.

(8) Licensing requirements do not apply to roofing contractors applying shingles only.

(b) To be eligible for licensure as a roofing contractor an applicant shall also fulfill the

following requirements:

(1) Be of good moral character;

(2) Pass an examination approved or administered by the contractors' registration board

or have previously been registered as a commercial roofer in good standing and met all the

requirements of the rules and regulations established by the board;

(3) Be in good standing with the contractors' registration board;

(4) All field personnel of the roofing contractor must have a current certificate of

completion of the ten (10) hours OSHA safety course or equivalent thereof as determined by the

contractors' registration board.;

(5) Take ten (10) hours continuing roofing education per year as set forth and recognized

by the contractors' registration board; ~~and~~

(6) Be bonded in the aggregate amount of the total dollar value of any contract entered

into to perform roofing work; single project in the amount of one hundred thousand dollars

($100,000) minimum.; and

(7) Provide the board with an insurance certificate in the amount of one million five

hundred thousand dollars ($1,500,000) per occurrence pursuant to the established rules and

regulations, with the board as the holder, from the date of issuance, continuously.

pursuant to the Administrative Procedures Act, chapter 35 of title 42, necessary to effectuate the

purposes of this chapter.

(1) Rules and regulations will provide a fine schedule which will establish grounds for

discipline for licensee holders or nonlicensed contractors

(2) Fines will be structured not to exceed five thousand dollars ($5,000) per day per

offense for conduct injurious to the welfare of the public as well as those required pursuant to

Rhode Island general laws section 5-65-10.

(d) Any person applying for a license or registration and making any material

misstatement as to his or her experience or other qualifications, or any person, firm, or

corporation subscribing to or vouching for any misstatement shall be subject to the discipline and

penalties provided in section 5-65-10.

(e) No corporation, firm, association, or partnership shall engage in the business of

commercial roofing or represent itself as a commercial roofing contractor unless a licensed

commercial roofer as provided in this chapter is continuously engaged in the supervision of its

commercial roofing work, provided that the commercial roofer is a general partner or an officer

and shareholder in the firm or corporation. If the license holder dies or otherwise becomes

incapacitated, the corporation, firm, or association shall be allowed to continue to operate until

the next examination shall be given or such times as the board shall see fit. In no event, however,

shall the corporation, firm, association, or partnership continue to operate longer than ~~fifteen (15)~~

twelve (12) months or in accordance with the board's established rules and regulations without

satisfying the license requirements of this chapter. Those roofers who have been registered with

the board on ~~October 15, 2001~~ July 1, 2003 and remain in good standing shall be exempt from the

testing requirements set forth in this chapter.

(f) Complaints filed with the board will be heard only in regard to those issues so

established in the rules and regulations.

5-73-4. Registration fee. -- All roofing contractors shall submit a payment in the amount

of ~~two~~ four hundred dollars (~~$200~~ $400), which will support the licensing program, representing a

license fee along with the application referenced in section 5-73-3, and be required to comply

with the provisions of chapter 65 of this title and those provisions shall be interpreted to include

commercial roofers as defined in this chapter.

SECTION 4. This act shall take effect on July 1, 2003.

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LC02101/SUB A

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