2013 -- S 0476

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LC01594

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO BUSINESSES AND PROFESSIONS - UNDERGROUND UTILITY

CONTRACTORS

     Introduced By: Senators Walaska, and Lombardo

     Date Introduced: February 28, 2013

     Referred To: Senate Labor

It is enacted by the General Assembly as follows:

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     SECTION 1. Title 5 of the General Laws entitled "BUSINESSES AND PROFESSIONS"

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is hereby amended by adding thereto the following chapter:

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     CHAPTER 65.3

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UNDERGROUND UTILITY CONTRACTORS

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     5-65.3-1. Purpose. -- The purpose of this chapter is to establish provisions, qualifications

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and procedures for licensing underground utility contractors engaged in the laying or repairing of

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underground utilities.

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     5-65.3-2. Definitions. -- When used in this chapter:

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     (1) "Board" means the contractors registration and licensing board as defined in section

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5-65-1.

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     (2) "Underground utility" means the installation, repair, alteration or replacement of

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underground utilities, sewer lines, storm drainage lines or water lines, mains and laterals, laying

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drains and related services outside of buildings, making connections with public and/or private

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underground utilities provided that such work is to be done between the main, lateral, related

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services and/or appurtenances to within five feet (5') of the outer wall of a building or structure

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and specifically excluding gas and telecommunications work.

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     (3) "Underground utility contractor" means any corporation, association, sole

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proprietorship, firm, partnership, limited liability corporation, limited liability partnership, or

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other business organization which is engaged in the installation, repair, alteration or replacement

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of underground utilities outside of buildings, making connections with public and/or private

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underground utilities provided that such work is to be done between the main, laterals, services

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and/or appurtenances to within five feet (5') of the outer walls of a building or structure. The term

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“underground utility contractor" shall include any agent, servant and/or employee of a licensed

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underground utility contractor. The term "underground utility contractor" does not include

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individuals licensed under chapter 5-20 entitled "Plumbers and Irrigators."

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     5-65.3-3. License required. -- (a) It is unlawful for any underground utility contractor to

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engage in the installation, repair, alteration or replacement of an underground utility as defined in

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this chapter without a valid license issued by the board.

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     (b) Any person licensed as a master plumber under the provisions of chapter 5-20 or as a

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master pipefitter under the provisions of chapter 28-27 shall be exempt from the requirement to

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obtain both an underground utility contractor's license as required by chapter 5-65.3 and an

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installer's license as required by chapter 5-56 provided that such master plumber or master

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pipefitter shall be required to comply with the provisions of sections 5-65.2-10 and 5-56-7.

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     (c) Any public utility or agent thereof regulated by the public utilities commission or the

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division of public utilities and carriers shall be exempt from the provisions of this chapter.

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     5-65.3-4. Conditions for obtaining an underground utility contractor’s license. -- (a)

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To obtain a license under chapter 5-65.2, an underground utility contractor must submit to the

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contractors' registration and licensing board an application for an underground utility contractor's

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license completed in its entirety, together with a fee of two hundred dollars ($200). The

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application must also comply with the following requirements:

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     (1) The applicant must have demonstrated to the board that the underground utility

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contractor is capable of installing, repairing, alternating or replacing sewer lines, storm drainage

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lines or waterlines and services in accordance with approved plans and specifications.

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     (2) The applicant must obtain a passing grade on a written examination provided by a

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third-party approved by the board, intended to demonstrate an understanding of the rules and

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regulations, and ability to read and interpret approved plans and specifications. Any applicant

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who fails an examination for a license is permitted to take further examinations upon payment of

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the prescribed fee for each examination. The board shall assure that these services are provided

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and conduct examinations at least three (3) times each year. All examinations shall be conducted

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at places designated by the board.

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     (3) The board shall approve or deny applications for an underground utility contractor's

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license as soon after the examination as is practicable. Each applicant who has successfully

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passed the examination and has had an application approved for a license as an underground

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utility contractor shall have issued and mailed to them, by the board, a certificate of license

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specifying that applicant as an underground utility contractor.

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     (4) Any contractor licensed in accordance with this chapter shall not be required to obtain

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another license or to take any other test by any other municipality in order to perform

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underground utility work.

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     5-65.3-5. Expiration and renewal of licenses.-- All licenses of underground utility

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contractors issued by the board expire every two (2) years on the anniversary date of the license's

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issuance and may be renewed on or before that date for a period of two (2) years, upon payment

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of a two hundred dollar ($200) fee.

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     5-65.3-6. Duties of the contractor's registration and licensing board.-- The

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contractors' registration and licensing board shall:

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     (1) Prepare, provide and conduct examinations in conjunction with a third-party provider;

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     (2) Prepare license certificates and issue them in conformity with this chapter and the

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rules and regulations;

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     (3) Maintain an up-to-date record specifying the names and addresses of licensed

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underground utility contractors of this state. Such record shall include the dates of issuance of

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licenses and shall be open to public inspection; and

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     (4) Maintain an up-to-date record of any complaints filed with the board, the nature of

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those complaints, dates of complaints and any final orders made based on the complaints.

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     5-65.3-7. Licensing of underground utility contractors granted without examination.

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-- (a) After enactment of this chapter and at any time prior to the expiration of six (6) months

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following enactment of this section, the board shall, without examination, upon payment of the

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fees required in this chapter and approval of the issuance of the license by the board, issue a

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license to any applicant who shall present satisfactory evidence as described in subsection (b) of

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this section that the applicant has the qualification for issuance of an underground utility

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contractor license. Thereafter, in order to qualify for an underground utility contractor license

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after the initial "grandfather" window, said licensee may renew the license pursuant to section 5-

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65.2-5.

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     (b) The owner(s) of a business entity as defined in subdivision 5-65.3-2(3) shall meet the

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requirements of this section for issuance of a license, without examination, by presenting

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evidence of either of one of the following:

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     (1) Must have been actively engaged and held a license in good standing as a sewer/drain

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layer water installer for the previous three (3) years; or

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     (2) The contractor or licensee shall provide satisfactory evidence that he or she has been

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previously granted a license within the past three (3) years as a sewer/drain layer installer by three

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(3) or more Rhode Island cities or towns granting or issuing such a license.

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     5-65.3-8. Responsibilities, performance and conduct. -- A licensed underground utility

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contractor shall perform all work in compliance with the plans and specifications approved by the

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local municipality or other appropriate authority having jurisdiction over the utility and/or work

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to be performed.

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     5-65.3-9. Insurance required of underground utility contractors. -- (a) Throughout

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the period of licensure, the contractor shall have in effect public liability and property damage

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insurance covering the work of that contractor which shall be subject to this chapter in not less

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than the following amount: one million dollars ($1,000,000) combined single limit, bodily injury

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and property damage.

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     (b) In addition, all contractors shall be in compliance with workers' compensation

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insurance as required under chapter 28-29. Failure to maintain insurance shall not preclude claims

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from being filed against a contractor.

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     (c) The contractor shall provide satisfactory evidence to the board at the time of license

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and renewal that the insurance required by subsections (a) and (b) of this section has been

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procured and is in effect. Failure to maintain insurance shall invalidate registration and may result

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in a fine to the licensee.

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      5-65.3-10. Bond requirement.-- Every applicant for a certificate of license as an

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underground utility contractor to carry on the business of installing, repairing or servicing,

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altering or replacing of sewer lines, storm drainage lines or water lines and related services in

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accordance with this chapter, shall furnish a bond, satisfactory to the board, in the sum of twenty

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thousand dollars ($20,000), conditioned substantially that the applicant indemnifies and holds

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harmless the several cities and towns of this state and their officers from all suits and actions of

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every name and description brought against any of those cities, towns and state or any of their

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officers, for or on account of any injuries or damages received or sustained by any person in

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consequence of, or resulting from, any work performed by the applicant, or its employees,

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servants or agents, or of or from any improper materials used in the work, or of or from any

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negligence in guarding the work, or of or from any act or omission of the applicant, or its

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employees, servants or agents.

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     5-65.3-11. License not transferable or assignable. -- Underground utility contractor's

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licenses are not transferable or assignable and automatically become invalid upon a change of

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ownership or upon suspension or revocation of a license.

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     5-65.3-12. Denial, suspension and revocation of licenses. -- (a) The board may suspend

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or revoke the license of any underground utility contractor after a hearing when the weight of the

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evidence establishes any one or more of the following specific violations:

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     (1) Obtaining or conspiring with others to obtain a license by inducing the issuance of

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that license in consideration of the payment of money or any other thing of value, or by and

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through a willful or fraudulent misrepresentation of facts in the procurement of a license;

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     (2) Gross negligence or incompetence in the performance of any licensed work in

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accordance with any underground utility ordinance, or rules of any city or town, or any law of

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this state regulating the conduct of sewer drain and water work;

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     (3) Willfully and fraudulently loaning its license to any other underground utility

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contractor for the purpose of permitting that underground utility contractor to engage in any

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underground utility work in violation of the provision of this chapter; and

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     (4) Willfully violating any of the provisions of this chapter.

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     (5) For any violation to section 5-65-10.

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     (b) When an application for a license is denied, a hearing shall be granted provided the

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aggrieved applicant requests a hearing in writing within ten (10) days of the denial with the

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board.

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     5-65.3-13. Procedure for revocation of license. -- (a) No proceeding to revoke a license,

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as provided in this section shall be instituted unless filed with the board within one year

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immediately following the date or dates of violation.

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     (b) No license of an underground utility contractor shall be revoked or cancelled until

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after a full and impartial hearing is completed as provided in this section.

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     (c) No hearing for the purpose of revoking any license of an underground utility

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contractor shall be held unless there is first placed on file with the board a verified complaint, in

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writing, reciting in the complaint with reasonable particularity a statement of facts which if

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proved would be sufficient to constitute a violation of one or more of the specifications for

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revocation of license as prescribed in this chapter.

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     (d) Upon the filing of a verified complaint as provided in this section, the board shall

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promptly set a date for a hearing of the charges of the complaint. The board shall promptly, by

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registered or certified mail, forward to the licensee charged in the complaint a true and correct

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copy of the complaint and notification of the time and place when and where a hearing of those

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charges is to be held.

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     (e) At the time and place fixed in the notification, the board shall proceed to a hearing of

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the charges specified in the complaint. No hearing upon the charges of the complaint shall be held

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unless the records of the board contain evidence that the licensee charged in the complaint has

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been served with a copy of the complaint and notification at least twenty (20) days prior to the

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date of the hearing; provided, that the appearance of the charged licensee, either on its own behalf

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or by counsel, constitutes proof that sufficient notice of the hearing was served.

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     (f) A complaining party, individually or by counsel, may aid in the presentation of

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evidence toward sustaining the complaint. Ample opportunity shall be accorded for a hearing of

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all evidence and statement of counsel either in support of or against the charges of the complaint.

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Upon good cause shown, the date of the hearing on the complaint may be continued provided the

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licensee and other interested parties are reasonably notified about the date of continuance.

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     5-65.3-14. Subpoena of witness. -- The board shall have the power to subpoena and

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bring before it, any witness to take testimony, either orally or by deposition, or both, in any

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proceeding authorized by law.

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     5-65.3-15. Administration of oaths. -- The board shall have the power to administer

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oaths to witnesses at a hearing, which the board is authorized by law to conduct, and any other

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oaths authorized or administered by the board.

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     5-65.3-16. Recommendations of board - Order - Rehearing - Review. -- Any

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applicant or licensee aggrieved by any decision or ruling of the board may appeal that decision to

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the board which shall review the decision or ruling. Upon review, the board shall order that the

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license of the licensee charged in the complaint be revoked or the complaint shall be dismissed. A

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copy of the order shall be immediately served upon the licensee either personally or by registered

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or certified mail. The order of the board is final unless the charged licensee, the division or

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complainant, within twenty (20) days after receipt of that order, files his or her motion, in writing,

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for a review of the order specifying in the motion the points and reasons for the order. The filing

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of a motion for a review stays the operation of the order pending final decision on that motion. A

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motion for a review shall be immediately scheduled for a hearing. The decision review shall be

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issued in writing to the licensee.

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     5-65.3-17. Penalties for violations. -- Violations of any provision of this chapter shall be

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subject to the penalties as follows: any corporation, association, sole proprietorship, firm

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partnership, limited liability corporation, limited liability partnership or other business

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organization licensed by the board shall be subject to a fine up to five thousand dollars ($5,000)

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for the first offense and up to ten thousand dollars ($10,000) for the second and subsequent

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violations of this chapter.

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     5-65-18. Enforcement. -- (a) It shall be the duty of the board to enforce the provisions of

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this chapter. The appropriate local municipality authority; involved in the day-to-day inspection

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of sewer or drain installations, shall assist the board in enforcing the provision of this chapter.

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The appropriate local municipality shall have the authority to demand the production of the

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licenses required by this chapter on any site where underground utility contractor work is being

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installed and have the authority to investigate, and where appropriate, make complaints, pursuant

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to section 5-65.3-12, where sufficient evidence has been obtained to sustain a reasonable belief

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that a violation of this chapter has occurred.

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     5-65.3-19. Prosecution of violations and penalties. -- It is the duty of the board to fine

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any corporation, association, individual proprietorship, firm, partnership, limited liability

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corporation, limited liability partnership or other business organization violating any of the

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provisions of this chapter upon complaint being made whether brought pursuant to section 5-

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65.3-12 and/or section 5-65-18.

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     5-65.3-20. Injunctions. -- Violations of this chapter may be enjoined upon a complaint

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being filed in the superior court for the county in which those violations have been committed, by

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the board or by any appropriate local municipal authority. An injunction may be granted by the

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superior court after hearing in open court against any corporation, association, individual

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proprietorship, firm, partnership, limited liability corporation, limited liability partnership or other

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business organization which has violated any of the provision of this chapter without regard to

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whether proceedings have been or may be instituted before the board or whether criminal

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proceedings have been or may be instituted. No ex parte restraining orders shall be issued in suits

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brought pursuant to this section.

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     5-65.3-21. Investigation and prosecution of violations. -- The board shall act as an

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investigator with respect to the enforcement of all sections of this statute, shall act as an

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investigator with respect to the enforcement of all provisions of laws relative to the licensing of

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underground utility contractors, and to this effect whenever a complaint is made to the board, or

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its designee, that provisions of this chapter are being violated, the board, may issue an order to

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cease and desist from that violation and may impose penalties against the violator, and against the

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contractors.

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     5-65.3-22. Judicial review of proceedings. -- Any further appeal from the actions of the

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board is in accordance with the provisions of the administrative procedures act, chapter 42-35.

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     5-65.3-23. Licensing authority. -- The board shall carry out the functions and duties

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conferred upon it by this chapter. The licensing authority shall adopt standards, rules and

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regulations, pursuant to chapter 42-35, for the administration of the licensing program established

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under this chapter and related activities.

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     5-65.3-24. Municipal inspectors and installation permits. -- Nothing contained in this

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chapter prohibits any city or town from requiring permits for the installation, maintenance and

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repair of underground utility systems and collecting fees for the installation and repair of an

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underground utility system.

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     5-65.3-25. Severability. -- If any provision or part of this chapter, or its application to

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any entity or circumstances is held unconstitutional or otherwise invalid, the remaining provision

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of this chapter and the application of the provisions to the other entities or circumstances other

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than those to which it is held invalid shall not be affected by the invalidity.

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     SECTION 2. Section 5-20-11 of the General Laws in Chapter 5-20 entitled "Plumbers

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and Irrigators" is hereby repealed.

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     5-20-11. Licensing of drainlayers and installers. -- (a) Nothing in this chapter prohibits

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any city or town from granting a license to any person as a drainlayer to engage in the laying of

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drains outside of buildings, making connections with the public sewers, private drains and

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cesspools; provided, that the holder of a certificate or license issued by the department of labor

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and training in conformity with this chapter is not required by any city or town to obtain any other

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license for the installation, maintenance, or repair of plumbing or the laying of drains.

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      (b) Persons licensed as master plumbers under the provisions of this chapter are not

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required to obtain an installer's license as required by chapter 56 of title 5; provided, that master

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plumbers are required to comply with the provisions of section 5-56-7.

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     SECTION 3. Section 5-65-14 of the General Laws in Chapter 5-65 entitled "Contractors

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Registration and Licensing Board" is hereby amended to read as follows:

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     5-65-14. Builder board - Member - Terms - Confirmation - Vacancies -

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Qualification. — (a) The board shall consist of fifteen (15) seventeen (17) members appointed by

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the governor, eight (8) ten (10) of whom shall be registered contractors, of which two (2) shall be

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licensed roofers; one shall be a current member of the building codes standards committee

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pursuant to section 23-27.3-100.1.4; one shall be a representative of the general public; one shall

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be a licensed and practicing architect; and two (2) shall be licensed home inspectors; one who

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shall be the president of the Rhode Island Builders Association or designee; one shall be the

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executive director of the utility contractors association of Rhode Island, or designee; one shall be

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the executive director of the Rhode Island independent contractors and associates, or designee;

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and one who shall be the executive director of the Rhode Island Association of General

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Contractors or designee. The building code standards committee member shall be designated by

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the state building commissioner, and shall be appointed as provided in subsection (b) of this

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section.

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     (b) Except for the commissioner's designee the governor shall appoint seven (7) members

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for a term of three (3) years and five (5) members for a term of two (2) years. The governor shall

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appoint the member designated by the state building commissioner for a term of two (2) years.

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Each member reappointed by the governor shall serve for the term of his or her original

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appointment. Before the expiration of the term of a member, the governor shall appoint a

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successor. A member is eligible for reappointment. If there is a vacancy for any cause, the

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governor shall make an appointment immediately effective for the unexpired term. At the

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expiration of their terms, members shall remain and shall continue in their official capacity until a

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new member is appointed and confirmed.

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     (c) In order to be eligible for board membership, the six(6) eight (8) contractor members

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of the board must be registered and/or licensed under this chapter and maintain their registrations

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and/or licenses in good standing during their term of office. In order to be eligible for board

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membership, the two (2) home inspector members shall be licensed pursuant to chapter 65.1 of

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this title and shall maintain their license in good order during their terms of office.

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     SECTION 4. This act shall take effect on January 1, 2014.

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LC01594

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO BUSINESSES AND PROFESSIONS - UNDERGROUND UTILITY

CONTRACTORS

***

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     This act would establish qualifications and procedures to license underground utility

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contractors. It would also establish the duties of the contractor's registration and licensing board

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in administering and overseeing the licensee.

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     This act would take effect on January 1, 2014.

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LC01594

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