Chapter 425
2017 -- H 5826 SUBSTITUTE A
Enacted 10/05/2017

A N   A C T
RELATING TO BUSINESSES AND PROFESSIONS - CONTRACTORS' REGISTRATION AND LICENSING BOARD

Introduced By: Representatives Tanzi, Carson, Ranglin-Vassell, McEntee, and
Date Introduced: March 02, 2017

It is enacted by the General Assembly as follows:
     SECTION 1. Section 5-65-3 of the General Laws in Chapter 5-65 entitled "Contractors'
Registration and Licensing Board" is hereby amended to read as follows:
     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 that 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 that
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 that requires the issuance of a business license as a
condition precedent to engaging, within the city or town, in a business which that 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 § 5-65-1(3) if within
any one twelve-(12) month (12) 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 that shall include the following
information about all subcontractors or other contractors performing work on a structure for that
contractor:
     (i) Names and addresses.; and
     (ii) Registration numbers or other license numbers.
     (2) The list referred to in subdivision subsection (h)(1) of this subsection section 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 offense.
     (i) The following subcontractors who are not employees of a registered contractor must
obtain a registration certificate prior to conducting any work: (1) cCarpenters, including finish
carpenters and framers; (2) sSiding installers; (3) rRoofers; (4) fFoundation installers, including
concrete installers and form installers; (5) dDrywall installers; (6) pPlasterers; (7) iInsulation
installers; (8) cCeramic tile installers; (9) fFloor covering installers; (10) sSwimming pool
installers, both above ground and in ground; (11) mMasons, 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 § 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 § 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 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 and/or §5-65-27 if applicable.
     (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 § 34-28-4.1.
     (s) In addition to the requirements of this chapter, contractors engaged in well drilling
activities shall also be subject to regulations pertaining to licensing and registration promulgated
by the contractors' registration and licensing board pursuant to chapter 5-65.2 and § 46-13.2-4.
     SECTION 2. Chapter 5-65 of the General Laws entitled "Contractors' Registration and
Licensing Board" is hereby amended by adding thereto the following section:
     5-65-27. Elderly person in-home solicitation - Right to cancel.
     (a) Definitions. For purposes of this section:
     (1) "Consumer" means an individual who contracts with a person offering to undertake or
submit a bid to do work as a contractor.
     (2) "Elderly person" is defined in §42-66-4.1.
     (3) "Emergency" means an urgent and immediate need for services, assistance, or repairs,
which that must be addressed without delay to avoid substantial harm to persons or property.
     (4) "In-home solicitation" means any transaction made at the consumer's primary
residence, including telephonic or online, except those transactions initiated by the consumer. A
consumer response to an advertisement is not an in-home solicitation.
     (5) "Person" means an individual, partnerships, corporation, limited-liability company,
association, or other group, however organized.
     (6) "Services" means work, labor, and services as a contractor pursuant to chapter 65 of
title 5, as well as other disciplines governed by the board pursuant to statutory law.
     (b) In addition to all other methods of consumer protection provided by federal or state
law, any contract which that originates from an in-home solicitation of an elderly person for the
purposes of performing work as a contractor pursuant to chapter 65 of title 5, as well as other
disciplines governed by the board pursuant to statutory law, shall provide that any consumer who
is an elderly person shall, in the absence of an emergency as defined herein, have three (3) days
within which to cancel the in-home solicitation contract for contractor services.
     (c) The contractor shall, at the time of the agreement in accordance with §5-65-3, give
notice to the elderly person of all the rights that substantially comply with this section. The notice
must:
     (1) Appear in the agreement under the conspicuous caption: "Notice of Cancellation";
and
     (2) Read as follows:
     ... (date of transaction) "You may cancel this agreement, without any penalty or
obligation, within three (3) business days from the above date. If you cancel, your cancellation
notice must state that you do not wish to be bound by the agreement and mailed by registered or
certified mail not later than midnight three (3) days following the consumer's signing the
agreement, excluding Sunday and any holiday on which regular mail deliveries are not made. All
cancellations must be mailed to:
     (insert name and address of the seller)."
     (d) Whenever the agreement fails to conform to the provisions of this section and the
consumer or their his or her agent has notified the seller of their the consumer’s intent to cancel
the agreement by registered mail, return receipt requested, the contractor shall, within twenty (20)
days, return any deposit made by the consumer. Failure to return any deposit shall enable the
consumer to recover from the contractor double damages in any subsequent legal proceeding.
     SECTION 3. This act shall take effect upon passage.
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LC001826/SUB A
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