ARTICLE 32 SUBSTITUTE A
RELATING TO CONTRACTOR'S REGISTRATION FEES
SECTION 1. Sections 5-65-1,
5-65-3, 5-65-9 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.
5-65-9. Registration fee. – (a)
Each applicant shall pay to the board:
(1) For original registration
or renewal of registration, a fee of one hundred twenty dollars ($120) two
hundred ($200).
(2) A fee for all changes in
the registration, as prescribed by the board, other than those due to clerical
errors.
(b) All fees and fines
collected by the board shall be deposited as general revenues to support the activities
set forth in this chapter.
(c) Each year, the executive
director shall prepare a proposed budget to support the programs approved by
the board. The proposed budget shall be submitted to the board for its review.
A final budget request shall be submitted to the legislature as part of the
capital projects and property management annual request.
(d) New or renewal
registrations may be filed online or with a third-party approved by the board,
with the additional cost incurred to be borne by the registrant.
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 article shall take effect upon
passage.