Chapter
324
2007 -- H 5081 SUBSTITUTE A
Enacted 07/07/07
A N A C T
RELATING
TO BUSINESSES AND PROFESSIONS -- CONTRACTORS REGISTRATION
Introduced
By: Representatives Lima, Gallison, Moffitt, Wasylyk, and Melo
Date
Introduced: January 16, 2007
It is enacted by the General Assembly as
follows:
SECTION 1.
Sections 5-65-1, 5-65-3 and 5-65-24 of the General Laws in Chapter 5-65
entitled "Contractors' Registration"
are hereby amended to read as follows:
5-65-1.
Definitions. -- As used in this chapter:
(1)
"Board" means the contractors' registration board established
pursuant to the
provisions of Rhode Island general laws section
5-65-14.
(2)
"Commission" means the building code commission supportive of the
contractors'
registration board.
(3) (i)
"Contractor" means a person who, in the pursuit of an independent
business,
undertakes or offers to undertake or submits a
bid, or for compensation and with or without the
intent to sell the structure arranges to construct,
alter, repair, improve, move over public
highways, roads or streets or demolish a
structure or to perform any work in connection with the
construction, alteration, repair, improvement,
moving over public highways, roads or streets or
demolition of a structure, and the appurtenances
thereto. "Contractor" includes, but is not limited
to, any person who purchases or owns property
and constructs or for compensation arranges for
the construction of one or more structures.
(ii) A
certificate of registration is necessary for each "business entity"
regardless of the
fact that each entity may be owned by the same
individual.
(4)
"Dwelling unit" means a single unit providing complete independent
living facilities
for one or more persons, including permanent
provisions for living, sleeping, eating, cooking, and
sanitation.
(5) "Hearing
officer" means a person designated by the executive director, with the
approval of the director of the department of
administration to hear contested claims or cases,
contested enforcement proceedings, and contested
administrative fines, in accordance with the
Administrative Procedures Act, chapter 35 of
title 42.
(6)
"Staff" means the executive director for the contractors'
registration board, and any
other staff necessary to carry out the powers,
functions and duties of the board including
inspectors, hearing officers and other
supportive staff.
(7)
"State" means the state of Rhode Island.
(8)
"Structure" means (i) any commercial building or (ii) any
building containing one or
more residences and their appurtenances. The
board's dispute resolution process shall apply only
to residential structures containing dwelling
units as defined in the state building code or
residential portions of other types of buildings
without regard to how many units any structure
may contain. The board retains jurisdiction and
may conduct hearings regarding violations
against all contractors required to be
registered.
(9)
"Substantially" means any violation, which affects the health,
safety, and welfare of
the general public.
5-65-3.
Registration for work on a structure required of contractor -- Issuance of
building permits to unregistered or unlicensed
contractors prohibited -- Evidence of activity
as a contractor -- Duties of
contractors. --
(a) A person shall not undertake, offer to undertake,
or submit a bid to do work as a
contractor on a structure or arrange to have work done unless that
person has a current, valid
certificate of registration for all construction work issued by the board.
A partnership, corporation, or joint
venture may do the work, offer to undertake the work, or
submit a bid to do the work only if
that partnership, corporation, or joint venture is registered for
the work. In the case of registration
by a corporation or partnership, an individual shall be
designated to be responsible for the
corporation's or partnership's work. The corporation or
partnership and its designee shall be
jointly and severally liable for the payment of the
registration fee, as requested in this
chapter, and for violations of any provisions of this chapter.
Disciplinary action taken on a
registration held by a corporation, partnership, or sole proprietor
may affect other registrations held by
the same corporation, partnership, or sole proprietorship,
and may preclude future registration
by the principal of that business entity.
(b) A
registered partnership or corporation shall notify the board in writing
immediately
upon any change in partners or
corporate officers.
(c) A
city, town, or the state shall not issue a building permit to anyone required
to be
registered under this chapter who does
not have a current, valid certificate of registration
identification card or valid license
which shall be presented at the time of issuance of a permit
and shall become a condition of a
valid permit. Each city, town, or the state which requires the
issuance of a permit as a condition
precedent to construction, alteration, improvement,
demolition, movement or repair of any
building or structure or the appurtenance to the structure
shall also require that each applicant
for the permit file as a condition to issuing the permit a
written affidavit subject to the
penalties of perjury, subscribed by the applicant, that the applicant
is registered under the provisions of
this chapter, giving the number of the registration and stating
that the registration is in full force
and effect, or, if the applicant is exempt from the provisions of
this chapter, listing the basis for
the exemption. The city, town, or the state shall list the
contractor's registration number on
the permit obtained by that contractor, and if a homeowner is
issued a permit, the building
inspector or official must ascertain registration numbers of each
contractor on the premises and shall
inform the registration board of any non-registered
contractors performing work at the
site.
(d) Every city
and town which requires the issuance of a business license as a condition
precedent to engaging, within the city or town,
in a business which is subject to regulation under
this chapter, shall require that each licensee
and each applicant for issuance or renewal of the
license file, or has on file, with the city or
town a signed statement that the licensee or applicant is
registered under the provisions of this chapter
and stating that the registration is in full force and
effect.
(e) It shall be
prima facie evidence of doing business as a contractor when a person for
that person's own use performs, employs others
to perform, or for compensation and with the
intent to sell the structure, arranges to have
performed any work described in section 5-65-1(3) if
within any one twelve (12) month period that
person offers for sale one or more structures on
which that work was performed.
(f) Registration
under this chapter shall be prima facie evidence that the registrant
conducts a separate, independent business.
(g) The
provisions of this chapter shall be exclusive and no city or town shall require
or
shall issue any registrations or licenses nor
charges any fee for the regulatory registration of any
contractor registered with the board. Nothing in
this subsection shall limit or abridge the authority
of any city or town to license and levy and
collect a general and nondiscriminatory license fee
levied upon all businesses, or to levy a tax
based upon business conducted by any firm within the
city or town's jurisdiction, if permitted under
the laws of the state.
(h) (1) Every
contractor shall maintain a list which shall include the following
information about all subcontractors or other
contractors performing work on a structure for that
contractor:
(i) Names and
addresses.
(ii) Registration
numbers or other license numbers.
(iii)
Contracts entered into must contain notice of right of rescission as stipulated
in all
pertinent Rhode Island consumer protection laws.
(iv) The
contractor must stipulate whether or not all the proper insurances are in
effect
for each job contracted.
(v) (2)
The list referred to in subdivision (h) (1) of this subsection shall be
delivered to
the board within twenty-four (24) hours after a
request is made during reasonable working hours,
or a fine of twenty-five dollars ($25.00) may be
imposed for each the offense.
(i) The following
subcontractors who are not employees of a registered contractor must
obtain a registration certificate prior to
conducting any work: (1) carpenters, including finish
carpenters and framers; (2) siding installers;
(3) roofers; (4) foundation installers, including
concrete installers and form installers; (5)
drywall installers; (6) plasterers; (7) insulation
installers; (8) ceramic tile installers; (9)
floor covering installers; (10) swimming pool installers,
both above ground and in ground; (11) masons,
including chimney installers, fireplace installers,
and general masonry erectors. This list is not
all inclusive and shall not be limited to the above
referenced contractors. No subcontractor
licensed by another in-state agency pursuant to section
5-65-2 shall be required to register, provided
that said work is performed under the purview of
that license.
(j) A contractor
including, but not limited to, a general contractor, shall not hire any
subcontractor or other contractor to work on a
structure unless the contractor is registered under
this chapter or exempt from registration under the
provisions of section 5-65-2.
(k) A summary of
this chapter, prepared by the board and provided at cost to all
registered contractors, shall be delivered by
the contractor to the owner when the contractor
begins work on a structure; failure to comply
may result in a fine.
(l) The
registration number of each contractor shall appear in any advertising by that
contractor. Advertising in any form by an
unregistered contractor shall be prohibited, including
alphabetical or classified directory listings,
vehicles, business cards, and all other forms of
advertisements. The violations could result in a
penalty being assessed by the board per
administrative procedures established.
(i) The board may
publish, revoke or suspend registrations and the date the registration
was suspended or revoked on a quarterly basis.
(ii) Use of the
word "license" in any form of advertising when only registered may
subject the registrant or those required to be registered
to a fine of one hundred dollars ($100) for
each offense at the discretion of the board.
Provided, however, that fines issued for a violation of
this subsection shall only be issued as a
secondary offense actionable only in connection with a
final order issued by the board for violations
of other sections of this chapter.
(m) The
contractor must see that permits required by the state building code are
secured
on behalf of the owner prior to commencing the
work involved. The contractor's registration
number must be affixed to the permit as required
by the state building code.
(n) The board may
assess an interest penalty when claims have been filed with the board
at twelve percent (12%) annually.
(o) Effective
October 1, 2006, all work performed, including labor and materials, in
excess of one thousand dollars ($1,000) shall be
accompanied by a contract in writing. Contracts
required pursuant to this subsection shall
include a location on or near the signature line location
on or in which the parties to the contract shall
initial to evidence the receipt of certain consumer
education materials or information approved and
provided by the board to the contractor. Said
educational materials and/or information shall
include, but not be limited to, the following notice
and shall be provided by the contractor to the
homeowner:
NOTICE OF POSSIBLE
MECHANIC'S LIEN
To: Insert name of
owner, lessee or tenant, or owner of less than the simple fee. The
undersigned is about to perform work and/or
furnish materials for the construction, erection,
alterations or repair upon the land at (INSERT
ADDRESS) under contract with you. This is a
notice that the undersigned and any other
persons who provide labor and materials for the
improvement under contract with the undersigned
may file a mechanic's lien upon the land in the
event of nonpayment to them. It is your
responsibility to assure yourself that those other persons
under contract with the undersigned receive
payment for their work performed and materials
furnished for the construction, erection,
alteration or repair upon the land.
Failure to adhere
to the provisions of this subsection may result in a one thousand dollars
($1,000) fine against the contractor.
(END OF FORM
NOTICE)
(p) Contracts
entered into must contain notice of right of rescission as stipulated in all
pertinent Rhode Island consumer protection laws.
(q) The
contractor must stipulate whether or not all the proper insurances are in effect
for
each job contracted.
5-65-24.
Limited applicability of chapter to non-residential contractors. -- (a)
Notwithstanding anything set forth in this
chapter to the contrary, the provisions of the following
sections of this chapter shall not apply to any
contractor who does not regularly in the course of
his or her or its business as a contractor
engage in construction activities as contemplated under
this chapter on residential structures:
(1) section
5-65-3(p);
(1) (2)
section 5-65-3(k);
(2) (3)
section 5-65-4;
(3) (4)
section 5-65-11;
(4) (5)
section 5-65-12; and
(5) (6)
section 5-65-18.
(b)
Notwithstanding anything set forth in this chapter to the contrary, the
provisions of
the following sections of this chapter shall
have only the limited applicability set forth below
respecting any contractor who does not regularly
in the course of his or her or its business as a
contractor engage in construction activities as
contemplated under this chapter on residential
structures:
(1) the
provisions of section 5-65-3(a) concerning the joint and several liability of
applicable corporations or partnerships and
their respective designees for the payment of the
registration fee as requested in this chapter
and for violations of any provisions of this chapter
shall apply; and
(2) the
provisions of section 5-65-10(a)(4) concerning violation of a rule or order of
the
board shall only apply to the extent that any
such rule or order does not relate to or is not derived
from one of the inapplicable provisions
referenced in this section.
SECTION 2. This
act shall take effect upon passage
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LC00072/SUB
A/2
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