Chapter 324

2007 -- H 5081 SUBSTITUTE A

Enacted 07/07/07

 

A N  A C T

RELATING TO BUSINESSES AND PROFESSIONS -- CONTRACTORS REGISTRATION

          

     Introduced By: Representatives Lima, Gallison, Moffitt, Wasylyk, and Melo

     Date Introduced: January 16, 2007

     

It is enacted by the General Assembly as follows:

 

     SECTION 1. Sections 5-65-1, 5-65-3 and 5-65-24 of the General Laws in Chapter 5-65

entitled "Contractors' Registration" are hereby amended to read as follows:

 

     5-65-1. Definitions. -- As used in this chapter:

      (1) "Board" means the contractors' registration board established pursuant to the

provisions of Rhode Island general laws section 5-65-14.

      (2) "Commission" means the building code commission supportive of the contractors'

registration board.

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

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

intent to sell the structure arranges to construct, alter, repair, improve, move over public

highways, roads or streets or demolish a structure or to perform any work in connection with the

construction, alteration, repair, improvement, moving over public highways, roads or streets or

demolition of a structure, and the appurtenances thereto. "Contractor" includes, but is not limited

to, any person who purchases or owns property and constructs or for compensation arranges for

the construction of one or more structures.

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

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

      (4) "Dwelling unit" means a single unit providing complete independent living facilities

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

sanitation.

      (5) "Hearing officer" means a person designated by the executive director, with the

approval of the director of the department of administration to hear contested claims or cases,

contested enforcement proceedings, and contested administrative fines, in accordance with the

Administrative Procedures Act, chapter 35 of title 42.

      (6) "Staff" means the executive director for the contractors' registration board, and any

other staff necessary to carry out the powers, functions and duties of the board including

inspectors, hearing officers and other supportive staff.

      (7) "State" means the state of Rhode Island.

      (8) "Structure" means (i) any commercial building or (ii) any building containing one or

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

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

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

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

against all contractors required to be registered.

      (9) "Substantially" means any violation, which affects the health, safety, and welfare of

the general public.

 

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

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

as a contractor -- Duties of contractors. -- (a) A person shall not undertake, offer to undertake,

or submit a bid to do work as a contractor on a structure or arrange to have work done unless that

person has a current, valid certificate of registration for all construction work issued by the board.

A partnership, corporation, or joint venture may do the work, offer to undertake the work, or

submit a bid to do the work only if that partnership, corporation, or joint venture is registered for

the work. In the case of registration by a corporation or partnership, an individual shall be

designated to be responsible for the corporation's or partnership's work. The corporation or

partnership and its designee shall be jointly and severally liable for the payment of the

registration fee, as requested in this chapter, and for violations of any provisions of this chapter.

Disciplinary action taken on a registration held by a corporation, partnership, or sole proprietor

may affect other registrations held by the same corporation, partnership, or sole proprietorship,

and may preclude future registration by the principal of that business entity.

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

upon any change in partners or corporate officers.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

contractors performing work at the site.

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

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

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

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

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

effect.

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

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

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

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

which that work was performed.

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

conducts a separate, independent business.

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

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

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

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

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

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

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

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

contractor:

      (i) Names and addresses.

      (ii) Registration numbers or other license numbers.

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

pertinent Rhode Island consumer protection laws.

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

for each job contracted.

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

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

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

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

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

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

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

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

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

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

referenced contractors. No subcontractor licensed by another in-state agency pursuant to section

5-65-2 shall be required to register, provided that said work is performed under the purview of

that license.

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

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

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

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

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

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

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

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

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

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

administrative procedures established.

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

was suspended or revoked on a quarterly basis.

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

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

each offense at the discretion of the board. Provided, however, that fines issued for a violation of

this subsection shall only be issued as a secondary offense actionable only in connection with a

final order issued by the board for violations of other sections of this chapter.

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

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

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

      (n) The board may assess an interest penalty when claims have been filed with the board

at twelve percent (12%) annually.

      (o) Effective October 1, 2006, all work performed, including labor and materials, in

excess of one thousand dollars ($1,000) shall be accompanied by a contract in writing. Contracts

required pursuant to this subsection shall include a location on or near the signature line location

on or in which the parties to the contract shall initial to evidence the receipt of certain consumer

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

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

and shall be provided by the contractor to the homeowner:

 

NOTICE OF POSSIBLE MECHANIC'S LIEN

 

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

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

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

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

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

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

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

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

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

($1,000) fine against the contractor.

     (END OF FORM NOTICE)

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

pertinent Rhode Island consumer protection laws.

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

each job contracted.

 

     5-65-24. Limited applicability of chapter to non-residential contractors. -- (a)

Notwithstanding anything set forth in this chapter to the contrary, the provisions of the following

sections of this chapter shall not apply to any contractor who does not regularly in the course of

his or her or its business as a contractor engage in construction activities as contemplated under

this chapter on residential structures:

      (1) section 5-65-3(p);

      (1) (2) section 5-65-3(k);

      (2) (3) section 5-65-4;

      (3) (4) section 5-65-11;

      (4) (5) section 5-65-12; and

      (5) (6) section 5-65-18.

      (b) Notwithstanding anything set forth in this chapter to the contrary, the provisions of

the following sections of this chapter shall have only the limited applicability set forth below

respecting any contractor who does not regularly in the course of his or her or its business as a

contractor engage in construction activities as contemplated under this chapter on residential

structures:

      (1) the provisions of section 5-65-3(a) concerning the joint and several liability of

applicable corporations or partnerships and their respective designees for the payment of the

registration fee as requested in this chapter and for violations of any provisions of this chapter

shall apply; and

      (2) the provisions of section 5-65-10(a)(4) concerning violation of a rule or order of the

board shall only apply to the extent that any such rule or order does not relate to or is not derived

from one of the inapplicable provisions referenced in this section.

 

     SECTION 2. This act shall take effect upon passage

     

=======

LC00072/SUB A/2

=======