Chapter
364
2008 -- H 8279
Enacted 07/05/08
A N A C T
RELATING TO
BUSINESSES AND PROFESSIONS -- CONTRACTORS' REGISTRATION
Introduced By:
Representatives Lima, Gallison, Moffitt, and Melo
Date Introduced: May 14,
2008
It is enacted
by the General Assembly as follows:
SECTION
1. Sections 5-65-1, 5-65-2, 5-65-3, 5-65-5, 5-65-10, 5-65-12, 5-65-16 and 5-
65-19
of the General Laws in Chapter 5-65 entitled "Contractors' Registration
and Licensing
Board"
are hereby amended to read as follows:
5-65-1.
Definitions. -- As used in this chapter:
(1) "Board" means the contractors' registration and licensing board
established pursuant
to the
provisions of Rhode Island general laws section 5-65-14 or its designees.
(2) "Commission" means the building code commission supportive of the
contractors'
registration
and licensing 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, 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 and licensing
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 or licensed by the board.
(9) "Substantially" means any violation, which affects the health,
safety, and welfare of
the
general public.
(10)
"Monetary damages" means the dollar amount required in excess of the
contract
amount
necessary to provide the claimant with what was agreed to be provided under the
terms of
the
contract reduced by any amount due and unpaid to the respondent inclusive of
any and all
awards
and restitution.
5-65-2.
Applications. – (a) The following persons shall be exempt from
registration
under
this chapter:
(1) A person who is constructing, altering, improving, or repairing his or her
own
personal
property.
(2) A person who is constructing, altering, improving, or repairing a structure
located
within
the boundaries of any site or reservation under the jurisdiction of the federal
government.
(3) A person who furnishes materials, supplies, equipment, or furnishes
products and
does not
fabricate them into, or consume them, in the performance of the work of a
contractor. If
the
person wants to file a claim pursuant to this chapter they must be registered
pursuant to this
chapter.
(4) A person working on one structure or project, under one or more contracts
when the
price of
all of that person's contracts for labor, materials, and all other items is
less than five
hundred
dollars ($500) and the work is of a casual, minor, or inconsequential nature.
This
subsection
does not apply to a person who advertises or puts out any sign or card or other
device,
which
might indicate to the public that the person is a contractor.
(5) This section does not apply to a person who constructs or for compensation
with the
intent
to sell the structure, or who arranges to have constructed a structure to be
sold before, upon
or after
completion. It shall be prima facie evidence that there was intent to offer the
structure for
sale if
the person who constructed the structure or arranged to have the structure
constructed does
not
occupy the structure for one calendar year after completion.
(6) A person performing work on a single dwelling unit property that person
owns,
whether
occupied by that person or not, or a person performing work on that person's
residence,
whether
or not that person owns the residence. This subdivision does not apply to a
person
performing
work on a structure owned by that person if the work is performed, in the
pursuit of
an
independent business, with the intent of offering the structure for sale
before, upon, or after
completion.
(7) A person who performs work subject to this chapter as an employee of a
contractor.
(8) A manufacturer of a mobile home constructed under standards established by
the
federal government.
(9) A person involved in the movement of:
(i) Modular buildings or structures other than mobile homes not in excess of
fourteen
(14)
feet in width.
(ii) Structures not in excess of sixteen (16) feet in width when these structures
are being
moved by
their owner if the owner is not a contractor required to be registered under
this chapter.
(10) Any person or business entity licensed by the state employing licensed
trades
persons
as defined by chapters 6, 20, and 56 of this title, and 26 and 27 of title 28
and working
within
the purview of the license issued by the governing agency shall be exempt from
all the
provisions
of this chapter except section 5-65-7, requiring insurance. A valid certificate
of
insurance
shall be required to be maintained by the licensing agency during the terms of
the
issuance
date of the license as a condition for a valid license. Failure of the licensee
to maintain
this
insurance shall result in loss of license pursuant to requirements of statutes
governing the
licensing
authority.
(b)
No registration shall be issued to a nonresident contractor until he or she has
filed
with
the board a power of attorney constituting and appointing a lawful attorney
upon whom all
processes
in any action or legal proceeding against him or her may be served, and in the
power of
attorney
agrees that any lawful process against him or her which may be served upon his
or her
attorney
is of the same force and validity as if served on the nonresident contractor,
and that the
force
continues irrevocably in force until such time as the board has been duly
notified in writing
of
any change to that status.
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.
(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.
(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 of when claims have been
filed with the
board
at twelve percent (12%) annually when
a monetary award is ordered by the board.
(o) 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 dollar ($1,000) fine against the
contractor
and shall not affect the right of any other person performing work or
furnishing
materials
of claiming a lien pursuant to Chapter 34-28. However, such person failing to
provide
such
notice shall indemnify and hold harmless any owner, lessee or tenant, or owner
of less than
the fee
simple from any payment or costs incurred on account of any liens claims by
those not in
privity
with them, unless such owner, lessee or tenant, or owner of less than the fee
simple shall
not have
paid such person.
(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.
(r) Contractors who are in compliance with the provisions of this subsection
shall be
exempt
from the requirements of section 34-28-4.1.
5-65-5.
Registered application. -- (a) A person who wishes to register as a
contractor
shall
submit an application, under oath, upon a form prescribed by the board. The
application
shall
include:
(1) Workers' compensation insurance account number, or company name if a number
has
not yet
been obtained, if applicable;
(2) Unemployment insurance account number if applicable;
(3) State withholding tax account number if applicable;
(4) Federal employer identification number, if applicable, or if self-employed
and
participating
in a retirement plan;
(5) The individual(s) name and business address and residential address of:
(i) Each partner or venturer, if the applicant is a partnership or joint
venture;
(ii) The owner, if the applicant is an individual proprietorship;
(iii) The corporation officers and a copy of corporate papers filed with the
Rhode Island
secretary
of state's office, if the applicant is a corporation;
(iv) Post office boxes are not acceptable as the only address.
(6) A signed affidavit subject to the penalties of perjury of whether or not
the applicant
has
previously applied for registration, or is or was an officer, partner, or
venturer of an applicant
who
previously applied for registration and if so, the name of the corporation,
partnership, or
venture.
(7) Valid insurance certificate for the type of work being performed.
(b) A person may be prohibited from registering or renewing registration as a
contractor
under
the provisions of this chapter or his or her registration may be revoked or suspended
if he
or she
has any unsatisfied or outstanding judgments from arbitration, bankruptcy,
courts and/or
administrative
agency against him or her relating to their work as a contractor, and provided,
further,
that an affidavit subject to the penalties of perjury shall be provided to the
board attesting
to the
information herein.
(c) Failure to provide or falsified Falsified information on an
application, or failure to
provide any document required by this chapter is punishable
by a fine not to exceed ten thousand
dollars
($10,000).
(d) Applicant must be at least eighteen (18) years of age.
(e) Satisfactory proof shall be provided to the board evidencing the completion
of five
(5)
hours of continuing education units which will be required to be maintained by
residential
contractors
as a condition of registration as determined by the board pursuant to
established
regulations.
(f) An affidavit issued by the board shall be completed upon registration or
renewal to
assure contractors
are aware of certain provisions of this law and shall be signed by the
registrant
before a
registration can be issued or renewed.
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, licensee 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 of this chapter
and the
board's
rules and regulations inclusive of substandard workmanship and any misuse of
registration.
(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.
Deposits
received
by a contractor and ordered returned are not considered a monetary award when
no
services
or supplies have been received.
(11) That the registrant breached a contract.
(12) That the registrant performed negligent and/or improper work.
(13) That the registrant has advertised with a license number instead of using
a
registration
number.
(14) That the registrant has failed to complete a project(s) for construction
or a willful
failure
to comply with the terms of a contract or written warranty.
(15) That the registrant has misrepresented his registration status as valid when
said
registration
is suspended, revoked, invalidated, inactive or unregistered as required by the
board.
(16) That the registrant has failed to pay a fine or respond to comply
with any order
issued
by the board.
(17) That the registrant has failed to obtain or maintain the required
continuing
education/
units required by the board, or failed to sign the affidavit required by the
board for
registration
or renewal.
(18) When a violation for hiring a non-registered contractor, working as a
non-registered
contractor,
or not maintaining the insurance required is issued, the registration may
become
invalidated
until the violation is resolved or hearing is requested on this offense.
(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 shall
not be
issued
for failure to maintain the list provided for in section 5-65-3(h) unless the
court determines
that the
failure is intentional.
(c) (1) The For each first violation of a particular section of this
chapter or any rule or
regulation
promulgated by the board, a fine not to exceed five thousand dollars ($5,000)
may be
imposed
after a hearing by the board. Provided, further, that the board at its discretion may, after
a hearing,
impose a an additional fine up to but not to exceed the face
value of the contract or the
actual
damages caused by the contractor, whichever shall be greater. Where the claim
is for actual
damages
the board shall require proof satisfactory to the board indicating said
damages. Where
corrective
work is completed as ordered by the board, the fine assessed may be reduced as
determined
by the board. Fines and decisions on claims or violations inclusive of
monetary
awards can be imposed against registered as well as
contractors required to be registered by the
board.
(2) For each subsequent violation of a particular subsection of this chapter or
of a rule or
regulation
promulgated by the board, a fine not to exceed ten thousand dollars ($10,000)
may be
imposed
after a hearing by the board. All fines collected by the board shall be
deposited as
general
revenues until June 30, 2008 to be used to enforce the provisions of this
chapter.
Beginning
July 1, 2008, all fines collected by the board shall be deposited into a
restricted receipt
account
to be used to enforce the provisions of this chapter.
(3) For the first violation of section 5-65-3, only for non-registered
contractors, a fine of
up to
five thousand dollars ($5,000) for a first offense and up to ten thousand
dollars ($10,000)
for each
subsequent offense shall be imposed.
(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 provided
that notice of said expungment proceedings has been provided to the claimant
who
was the subject of the violation. For purposes of this subsection
"notice" shall consist of a
mailing
to the last known address of the claimant and need not be actual notice.
(h) Any person or contractor, registered or not, who uses another contractor's
registration,
contractor's registration identification card, or allows another person to use
their
contractor's
registration fraudulently in any way, will be subject to a fine not exceeding
ten
thousand
dollars ($10,000).
(i) When the use of fraudulent advertising entices an individual to hire an
unregistered
contractor,
a fine of up to ten thousand dollars ($10,000) may be imposed by the board.
(j) It shall be unlawful to retain a social security number or copy of the
driver's license
from a registrant
by a building official as a condition of obtaining a permit.
(k) The board is further authorized upon certain findings or violations to:
(1) Put a lien on property held by a contractor.
(2) Take action on registrant when the continuing education requirements have
failed to
be
attained as required in rules and regulations.
(3) When upon investigation a complaint reveals: serious code infractions;
unsatisfied
mechanic's
liens; abandonment of a job for a substantial period of time without apparent
cause; or
any
other conduct detrimental to the public, the board can double the fines.
(4) Suspend, revoke or refuse to issue, reinstate or reissue a certificate of
registration to
any
registrant who has contracted, advertised, offered to contract or submitted a
bid when the
contractor's
registration is suspended, revoked, invalidated or inactive or unregistered as
required
by the
board.
(l)
No person shall register as a contractor with the contractors' registration board
for the
purpose
of deceiving or circumventing the registration process by enabling a person
whose
registration
has been suspended or revoked to conduct business. Provided, further, that any
person
who, in
good faith relies on the board or the contractor's registration website for
information
regarding
registration status of another shall be exempt from violations pursuant to this
section if
the
information is not correct. Violators of this section shall be jointly and
individually liable for
damages
resulting from their activities as contractors pursuant to this chapter.
Violations of this
subsection
may result in a revocation of registration and/or fines not to exceed ten
thousand
dollars
($10,000) and/or up to one year in jail. Furthermore, the director shall
require that all
applicants
for registration shall swear by way of affidavit that they are aware of this
provision and
its
implications.
5-65-12.
Procedure for making claims against a contractor -- Investigation by board
--
Disciplinary action. -- (a) Any
person having a claim against a contractor of the type referred
to in
section 5-65-11, may file with the board a statement of the claim in any form
and with any
fee that
the board prescribes. The filing fee may be reimbursed to the claimant by the
respondent,
if the
respondent is found to be at fault. Claims resolved prior to issuance of an
order may be
removed
from the contractor's registration board record pursuant to administrative
regulations.
(1) All claims filed with the contractor's registration board shall be heard by
a designated
hearing
officer, unless either party prior to the administrative hearing, files a civil
action on the
matter in
a state court. Upon receipt of a written notice and a copy of the filed civil
complaint the
board
shall discontinue processing the claim. If documentation is not received, the
hearing will be
conducted.
(2) A court judgment may constitute the basis for regulatory action against a
contractor's
registration,
which may result in the imposition of fines and penalties. A petition to
enforce a
mechanic's
lien does not necessarily constitute a civil action for purposes of this
section.
(b) The board may refuse to accept, or refuse at any time to continue
processing a claim
if:
(1) The same facts and issues involved in the claim have been submitted to any
other
entity
authorized by law or the parties to effect a resolution and settlement;
(2) The claimant does not permit the contractor against whom the claim is filed
to be
present
at any inspection made by the board;
(3) The board determines that the contractor against whom the claim is filed is
capable of
complying
with the recommendations made by the board relative to the claim, but the
claimant
does not
permit the contractor to comply with the recommendations. The board may refuse
to
accept
further process of a claim under this paragraph only if the contractor was
registered at the
time the
work was first performed and is registered at the time the board makes its
recommendations;
or
(4) The board determines that the nature or complexity of the claim is such
that a court is
the
appropriate forum for the adjudication of the claim.
(c) The board shall not process a claim unless it is filed in a timely manner
as follows:
(1) If the owner of a new structure files the claim, the board must receive the
claim not
later
than one year after the date the structure was first occupied as determined
from the date of
issuance
of the certificate of occupancy, or one year after the date of the closing on
the structure,
whichever
occurs later.
(2) If the owner of an existing structure files the claim, the board must
receive the claim
not
later than one year after the date the work was substantially completed as
determined by the
certificate
of occupancy, or the date that work ceased.
(3) Regardless of whether the claim involves a new or existing structure, if
the owner
files
the claim because the contractor failed to begin the work pursuant to a written
contract, the
board
must receive the claim not later than one year after the date the parties
entered into a
written
contract.
(4) Regardless of whether the claim involves a new or existing structure, if
the owner
files a
claim because the contractor failed to substantially complete the work, the
board must
receive
the claim not later than one year after the date the contractor ceased work on
the structure.
(5) If a registered general contractor files the claim against a registered
subcontractor,
because
the subcontractor failed to substantially complete the work, the board must
receive the
claim
not later than one year after the date the subcontractor ceased to work on the
structure.
(6) If a material or equipment supplier, an employee, or a registered
subcontractor files
the
claim, the board must receive the claim not later than one year after the date
the registrant
incurred
the indebtedness.
(7) Any corrective work performed to resolve a claim shall be the
responsibility of the
contractor
for one year beyond the completion date but only for corrective work performed.
(d) Upon acceptance of the statement of claim, the board shall give notice to
the party
against
whom the claim is made and shall initiate proceedings to determine the validity
of the
claim.
If, after investigation, the board determines that a violation of this chapter
or of any rule
promulgated
under this chapter has occurred, the board shall recommend to the registrant
order
any
action that the board considers deemed appropriate, including revocation
of the registrant's
certificate,
to compensate action on the
contractor's registration and compensation to the claimant
for any
damages incurred as the result of the violation or claim. If the
contractor performs
accordingly,
the board shall give that fact due consideration in any subsequent disciplinary
proceeding
brought by the board; provided, that the board shall suspend for a period of
one year
certification
of any registrant who is found by final determination to have willfully and
knowingly
violated any provisions of this chapter with respect to three (3) or more
structures
within a
one year period.
(e) In any action brought by a person under this chapter, the board may award,
in
addition
to the relief provided in this section, treble damages, reasonable attorneys' fees
and costs
and any
award for services of process costs pursuant to section 5-65-26.
(f) Notwithstanding any language limiting an action pursuant to this chapter,
whenever a
consumer
shall notify, in writing, a contractor of any problem with work performed by a
contractor
or subcontractor within one year of the completion of the work and said problem
has
not been
corrected by the contractor or subcontractor, the aggrieved party shall have up
to two (2)
years
from the date of completion of the contractor's work to file a claim with the
contractors'
registration
board. Such two (2) year period shall not be construed as an extension of any
one
year
warranty period expressed in any contract.
5-65-16.
Investigatory powers of board -- Use of city or county inspectors -- Conduct
of
hearings Powers and
duties of the board -- Investigatory powers of board -- Use of city or
county
inspectors -- Conduct of hearings. -- (a) The board may investigate the activities of any
person
engaged in the building and construction industry to determine compliance with
this
chapter.
(b) With the assistance of the city or town, the board may conduct
investigations with the
assistance
of the local building officials.
(c) The board has the power to administer oaths, issue notices and subpoenas in
the name
of the
board, compel the attendance of witnesses and the production of evidence, hold
hearings
and
perform any other acts that are reasonably necessary to carry out its duties
under this chapter.
(d) If any person fails to comply with a subpoena issued under subsection (c)
of this
section
or refuses to testify on matters on which the person may be lawfully
interrogated, the
board
may compel obedience.
(e) The board shall have the authority to hire private investigators or
constables to carry
out the
duties of this chapter. The costs and expenses incurred by the hiring of
private
investigators
may be borne by the contractor or non-prevailing party.
(f)
In addition to all powers granted to the board under this chapter the board
shall have
the
power and authority to:
(1)
award monetary damages and fines provided by this chapter;
(2)
order specific performance of any contract; and
(3)
provide any other relief and/or remedy provided by this chapter and the
contractors'
registration
board's rules and regulations.
(g)
The board may, at its discretion, require any contractor who has had action
taken
against
his/her registration to obtain a bond not to exceed thirty thousand dollars
($30,000).
5-65-19.
Penalty for operating without a registration -- Failure to comply with a
final
order of the board -- Repeat offense a felony. -- (a) Any person who violates a final order
of the board,
or fails to register as a contractor as stipulated, and upon proper written
notification,
is
deemed guilty of a misdemeanor, and, upon conviction, shall be imprisoned for a
term not
exceeding
one year, or fined not more than five thousand dollars ($5,000) for a first
offense and
not more
than ten thousand dollars ($10,000) for a second and/or subsequent offense(s)
each.
(b) A final order shall be considered delivered when served to a defendant or
designated
agent to
accept service. In addition to any sentence or fine imposed by the court under
subsection
(a) of
this section, the court may order a defendant to comply with any outstanding
final order of
the
board, including any monetary judgment, and/or to pay to the board any
outstanding fine or
fines
previously imposed by the board pursuant to section 5-65-10(c) this
chapter.
(c) If a contractor is a repeat offender with violations of three (3) or more
final orders of
the
board with respect to three (3) separate contracts executed by three (3)
separate
individuals/aggrieved
parties and said violations are filed within a twenty-four (24) month period,
the
violation shall be prosecuted as a felony and upon conviction the violator
shall be subject to
imprisonment
for a term not to exceed five (5) years or fined not more than ten thousand
dollars
($10,000).
SECTION
2. This act shall take effect upon passage.
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LC02913
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