law22252

Chapter 252

2022 -- S 2814 AS AMENDED
Enacted 06/28/2022

A N A C T

RELATING TO BUSINESSES AND PROFESSIONS -- CONTRACTORS' REGISTRATION AND LICENSING BOARD

Introduced By: Senator Frank A. Ciccone

Date Introduced: March 24, 2022

It is enacted by the General Assembly as follows:

SECTION 1. Sections 5-65-1, 5-65-2, 5-65-3, 5-65-5, 5-65-6, 5-65-7, 5-65-8, 5-65-9, 5-

65-10, 5-65-11, 5-65-12, 5-65-13, 5-65-14, 5-65-16, 5-65-19, 5-65-20, 5-65-23, 5-65-25 and 5-65-

26 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) "Appurtenances" means any accessory improvement to real estate associated with a

primary structure.

(1)(2) "Board" means the contractors' registration and licensing board established pursuant

to the provisions of § 5-65-14 or its designees.

(3) "Claim" means that portion of a complaint which that pertains to the complainant's

assertion that they are entitled to monetary damages, an order for specific performance of work

and/or other contractual or equitable relief or remedies on account of allegations or disputes

between themself and a contractor or themself and a subcontractor.

(2)(4) "Claim for retainage" means an allegation that a person seeking payment of retainage

breached the person's contract for the project; provided, however, that a "claim" related to a project

with a contract value of not less than two hundred fifty thousand dollars ($250,000) shall be subject

to the applicable dispute resolution procedure, notice, and other requirements in the contract for

construction.

(5) "Complaint" means a written complaint submitted to the board or office with allegations

against or disputes involving a contractor, which that which may contain a claim component and/or

allegations that a contractor has violated provisions of this chapter or the regulations promulgated

hereunder.

(3)(6)(7)(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 constructs, alters,

repairs, improves, moves over public highways, roads, or streets, or demolish demolishes 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. For the purposes of this chapter, "appurtenances" includes, but is not limited

to, the installation, alteration, or repair of wells connected to a structure consistent with chapter

13.2 of title 46, garage, carport, porch, patio, decks, docks, sheds, tents, gazebos, walkways,

fencing, driveways, retaining walls, swimming pools, sidewalks, stone/masonry walls, and parking

lots.

(ii) "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)(iii) 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)(7)(6) "Contract for construction" means a contract for which a lien may be established

under chapter 28 of title 34 or for state or municipal public works projects as defined in title 37 on

a project for which the person on whose contract with the project owner has an original contract

price of not less than two hundred fifty thousand dollars ($250,000); provided, however, that

"contract for construction" shall not include a project containing, or designed to contain, at least

one, but not more than four (4), dwelling units.

(5)(8) "Deliverable" means a project close-out document that shall be submitted by the

person seeking payment of retainage under the person's contract for construction; provided,

however, that a lien waiver or release, which is a deliverable, shall comply with chapter 28 of title

34; provided, further, that "deliverable" shall not include any document affirming, certifying, or

confirming completion or correction of labor, materials, or other items furnished or incomplete or

defective work.

(6)(9) "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.

(7)(10) "Hearing officer" means a person designated by the director of the department of

business regulation or the director's designee to hear contested claims or cases, contested

enforcement proceedings, and contested administrative fines, and to render decisions or orders in

accordance with the "administrative procedures act," chapter 35 of title 42.

(8)(11) "Incomplete or defective work" means labor, materials, or any other item required

for full performance by a person seeking payment of retainage that remains to be furnished by the

person under the person's contract for construction or that has been furnished by the person but

requires correction, repair, further completion, revision, or replacement; provided, however, that

"incomplete or defective work" shall not include deliverables or labor, materials, or any other item

to be repaired or replaced after substantial or final completion pursuant to a warranty, guarantee,

or other contractual obligation to correct defective work after substantial or final completion.

(9)(12) "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.

(10)(13) "Office" means the state building office established pursuant to § 5-84-3.1.

(11)(14) "Person" means any natural person, joint venture, partnership, corporation, or

other business or legal entity who or that enters into a contract for construction.

(12)(15) "Prime contractor" means a person who or that enters into a contract for

construction with the project owner.

(13)(16) "Retainage" means a portion or percentage of a payment due pursuant to a contract

for construction that is withheld to ensure full performance of the contract for construction.

(14)(17) "Staff" means any staff necessary to carry out the powers, functions, and duties of

the board, or the office, including inspectors, hearing officers, and other supportive staff.

(15)(18) "State" means the state State state of Rhode Island.

(16)(19) "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.

(17) "Substantially" means any violation that affects the health, safety, and welfare of the

general public.

(18)(20) "Substantial completion" means the stage in the progress of the project when the

work required by the contract for construction with the project owner is sufficiently complete in

accordance with the contract for construction so that the project owner may occupy or utilize the

work for its intended use; provided, further, that "substantial completion" may apply to the entire

project or a phase of the entire project if the contract for construction with the project owner

expressly permits substantial completion to apply to defined phases of the project.

(21) "Violation" means a violation of any provision of this chapter or the regulations

promulgated hereunder or any order of the board or office.

5-65-2. Applications Exemptions from registration -- Registered agent for service of

process.

(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 complaint 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 that 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 feet

(14') in width.

(ii) Structures not in excess of sixteen feet (16') 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 chapters 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 § 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 registered agent 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 that may be served upon his or her

registered agent 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)(1) 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,

limited liability company, 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, limited liability company, or joint venture

is registered for the work. In and in the case of registration by a corporation, limited liability

company, joint venture, or partnership, an individual shall be designated to be responsible for the

corporation's, company's, joint venture's, or partnership's work. The corporation, limited liability

company, joint venture, or partnership and its individual designee shall be jointly and severally

liable and responsible for the payment of the registration fee, as required in this chapter, and for

compliance with all requirements and violations of any provisions of this chapter and the

regulations promulgated thereunder. Disciplinary action taken on a registration held by a

corporation, partnership, limited liability company, joint venture, individual, or sole proprietor may

affect other registrations held by the same corporation, partnership, limited liability company, joint

venture, individual, or sole proprietorship, and may shall also be grounds for the board or office to

deny and preclude future registration by any corporation, partnership, limited liability company,

joint venture, individual, or sole proprietorship where the disciplined registrant and the applicant

for registration have an individual the principal of that business entity and/or responsible designee

in common.

(b) A registered partnership, limited liability company, or corporation shall notify the board

in writing immediately upon any change in partners or corporate officers.

registered under this chapter who does not have a current, valid certificate of registration

identification card or valid license 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 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 as a condition to issuing the permit, 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 that requires the issuance of a business license as a condition

precedent to engaging, within the city or town, in a business 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(4) if within any one

twelve-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 charge 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 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 subsection (h)(1) of this 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) 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; (12) Hardscape installers; (13) Power washers who perform work on structures;

and (14) Painters. 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 may 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

disclosures and or information approved and provided by the board to the contractor. The

educational materials and/or information shall include, but not be limited to, required pursuant to

regulations promulgated by the board and 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 simple.

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

fine ($1,000) 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 28 of title 34. However, the

person failing to provide the 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 lien

claims by those not in privity with them, unless the 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 section shall be exempt

from A notice of possible mechanic's lien given in accordance with the requirements of § 34-28-

4.1 shall satisfy the notice of possible mechanic's lien required pursuant to subsection (o) of this

section.

(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 65.2 of this title and § 46-

13.2-4.

5-65-5. Registered application Application for registration -- Continuing education.

(a) A person who wishes to register as a contractor shall submit an application upon a form

in a manner as prescribed by the board or office. 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)(i) The individual(s) name and business address and residential address of:

(A) Each partner or venturer, if the applicant is a partnership or joint venture;

(B) The owner, if the applicant is an individual proprietorship;

papers filed with the Rhode Island secretary of state's office, if the applicant is a corporation;

(ii) Post office boxes are not acceptable as the only address;

(6) A statement as to whether or not the applicant has previously applied for registration,

or is or was an officer, manager, member, partner, or venturer of an applicant who previously

applied for registration and if so, the name of the corporation, limited liability company,

partnership, or venture; and

(7) Valid insurance certificate for the type of work being performed and as required under

§ 5-65-7.

(b) A person may be prohibited from registering or renewing a 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, or

administrative agency against him or her relating to his or her work as a contractor, and provided,

further, that a statement shall be provided to the board attesting to the information herein.

by this chapter, is punishable by a fine not to exceed ten thousand dollars ($10,000) or and/or denial

or revocation of the registration, or both.

(d) An applicant must be at least eighteen (18) years of age.

(e) For new applications, satisfactory proof shall be provided to the board evidencing the

completion of five (5) hours of preregistration education units as determined by the board pursuant

to established regulations.

(e)(f) For renewal applications, satisfactory Satisfactory proof shall be provided to the

board evidencing the completion of two and one-half (2.5) hours of continuing education units that

will be required to be maintained by residential contractors as a condition of registration as

determined by the board pursuant to established regulations.

(f)(g) A certification in a form issued by the board shall be completed upon registration or

license or renewal to ensure contractors are aware of certain provisions of this law and shall be

signed by the registrant before a registration can be issued or renewed.

5-65-6. Contractor to notify of address change -- Effect of mail to last known address.

It is the duty of a contractor to notify the board in writing of any change of address while

registered and for one year following the date the contractor's registration expires or becomes

inactive. The contractor shall notify the board in writing within ten (10) days of the date upon which

the change of address occurs. Any proposed or final order or notice of hearing directed by the board

or office to the last-known address of record shall be considered delivered and deemed served when

deposited in the United States mail and/or sent registered or certified or post office receipt secured.

Any other communication directed by the board or office to the last-known address of record shall

be considered delivered when deposited in the United States mail, regular mail.

5-65-7. Insurance required of contractors.

(a) Throughout the period of registration, the contractor shall have in effect public liability

and property damage insurance covering the work of that contractor that shall be subject to this

chapter in not less than the following amount: five hundred thousand dollars ($500,000) combined

single limit, bodily injury and property damage.

(b) In addition, all contractors shall have in effect workers' compensation insurance as

required under chapter 29 of title 28. Failure to maintain required insurance shall not preclude

claims from being filed against a contractor.

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

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

result in a fine to the registrant and/or suspension or revocation of the registration.

5-65-8. Term of registration – Renewal – Registration identification card Term of

registration – Renewal.

(a) A certificate of registration shall be valid for one (1) year from the date of issuance

unless the registration is revoked or suspended as described in § 5-65-10. It may be renewed by the

same procedure provided for an original registration upon application and furnishing of any

additional supplemental information that the board may require by rule.

(b) The board shall issue a pocket-card certificate of registration to a contractor registered

under this chapter including a picture of the registrant as prescribed by the board in the rules and

regulations. The Rhode Island department of administration, division of motor vehicles, shall, upon

the board's request, provide electronic copies of the digital photos of any registrant under this

chapter on record to be incorporated into the contractors' registration data bank to match the drivers'

licenses or IDs provided by registrants or applicants unless the applicant provides written

notification to the board to the contrary.

notice of the renewal date assigned and by making appropriate adjustments in the renewal fee.

(d) The presentation of the registration or license identification card shall be mandatory at

the time of permit application.

(e) If a registrant files in bankruptcy court, the board must be notified in writing by the

registrant and kept informed of the status of the case until dismissed, discharged, or resolved in

court.

5-65-9. Registration fee -- Report.

(a) Each applicant shall pay to the board:(1) For for original registration or renewal of

registration, a fee of one hundred and fifty dollars ($150).

(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 until June 30, 2008. Beginning July 1, 2008, all All

fees and fines collected by the board shall be deposited into a restricted-receipt account for the

exclusive use of supporting programs established by this chapter.

the speaker of the house and the president of the senate, with copies to the chairpersons of the house

and senate finance committees, detailing:

(1) The total number of fines issued, broken down by category, including the number of

fines issued for a first violation and the number of fines issued for a subsequent violation;

(2) The total dollar amount of fines levied;

(3) The total amount of fees, fines, and penalties collected and deposited for the most

recently completed fiscal year; and

(4) The account balance as of the date of the report.

(d) Each year, the department of business regulation 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 department

of business regulation's annual request.

(e) 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.

5-65-10. Grounds for discipline -- Injunctions.

(a) The board or office may revoke, suspend, or refuse to issue, reinstate, or reissue a

certificate of registration if the board or office determines, after notice and opportunity for a

hearing:

(1) That the registrant or applicant has violated § 5-65-3 or any other provision of this

chapter or the regulations promulgated thereunder.

(2) That the insurance required by § 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 or office 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 or the regulations promulgated thereunder.

(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 or office may take disciplinary action against a contractor who performed

work, or arranged to perform work, 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 contractor has advertised with a license number instead of using a

registration number when only registered.

(14) That the registrant has failed to complete a project(s) for construction or willfully

failed to comply with the terms of a contract or written warranty.

(15) That the registrant has misrepresented his or her registration status as valid when the

registration was suspended, revoked, invalidated, inactive, or unregistered as required by the board.

(16) That the registrant has failed to pay a fine or comply with any order issued by the

board or office.

(17) That the registrant has failed to obtain or maintain the required continuing

education/units required by the board, or failed to sign the statement required by the board for

registration or renewal.

(18) When a violation for hiring a nonregistered contractor, working as a nonregistered

contractor, or not maintaining the insurance required is issued, the board or office may suspend the

registration may become invalidated until the violation is resolved to the satisfaction of the board

or office or otherwise through the administrative hearing is requested on this offense proceeding.

(19) That the registrant has violated any of the provisions of chapter 3 of title 25; chapter

3, 12, 14, 36, or 50 of title 28; or chapter 13 of title 37. A finding that the registrant has violated

any of those chapters shall not be grounds for imposition of a monetary penalty under subsection

(b) Subject to providing notice and an opportunity for a hearing, in In addition to all other

remedies, when it appears to the board or office has reason to believe that a person has engaged in,

or is engaging in, any act, practice, or transaction that violates the provisions of this chapter or the

regulations promulgated thereunder, the board or office may direct order such person to cease and

desist from the violation or request 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 § 5-65-3(h) unless the court determines that the failure

is intentional.

(1) 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 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 the damages. Where corrective work

is completed as ordered by the board and/or if restitution is made to the person for whom the work

was to be performed, the fine assessed may be reduced as determined by the board. Fines and

decisions on claims or for violations, inclusive of monetary awards, can may be imposed against

registered contractors, as well as contractors those persons 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 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 a violation of § 5-65-3, only for nonregistered 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) In any decision following a hearing, the The hearing officer, upon rendering a

conclusion, board, or office may require the registrant, in addition to or in lieu of a fine, to attend

continuing education courses as appropriate. Failure to adhere to the requirement may result in

immediate revocation of the registration.

(e) The expiration of a registration by operation of law or by order or decision of the board,

the office, or a court, or the voluntary surrender of registration by the registrant, does not deprive

the board or office of jurisdiction of an action or disciplinary proceeding against the registrant, or

to render a decision suspending or revoking a registration.

(f)(1) In emergency situations, when a registrant is acting to the detriment of the health,

welfare, and safety of the general public, the director of the department of business regulation, or

the director's designee, may revoke or suspend a registration without a hearing for just cause for a

period of thirty (30) days.

(2) A registration revocation or suspension in an emergency situation may be extended

beyond thirty (30) days after notice and opportunity for a hearing.

(g) A registrant may petition the board to partially or completely expunge his or her record

provided that notice of the expungement 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 and the board may grant or

deny such petition in its sole discretion.

(h) Any person or contractor, registered or not, who or that 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 is used to entice an individual to hire an

unregistered contractor, a fine of up to ten thousand dollars ($10,000) may be imposed on the

unregistered contractor by the board or office.

(j) It shall be unlawful to retain If a social security number or copy of the driver's license

is received from a registrant by a building official as a condition of obtaining a permit, such

information shall be maintained in accordance with applicable law.

(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)(k) 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, 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 however, that

any person who, in good faith, relies on the board or the contractor's registration board's website

for information regarding the registration status of another, shall be exempt from violations

pursuant to this section if the information provided by the board is not correct. Violators of this

section shall be jointly and individually liable and responsible for violations and for damages

resulting from their activities as contractors pursuant to this chapter. Violations of this subsection

may result in a suspension or 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 of the department of

business regulation, or the director's designee, shall require that all applicants for registration shall

sign a statement that they are aware of this provision and its implications.

(m) Upon receipt of notice of a final determination, after the exhaustion of all appeals, by

the department of labor and training, consent agreement, or court order that a registered contractor

violated any of the provisions of chapter 3 of title 25; chapter 3, 12, 14, 36, or 50 of title 28; or

chapter 13 of title 37 and owes any wages, benefits, or other sums arising out of the violation, the

board shall immediately suspend the contractor's registration of the contractor in accordance with

this subsection. The suspension shall continue until all wages, benefits, or other sums owed have

been paid or the contractor has entered into a written, binding agreement to pay the same acceptable

to the department of labor and training and is not in default in of payment under the agreement. If

the contractor fails to remain current in payment under the agreement, the department of labor and

training shall notify the contractors' registration board and the suspension shall be imposed or

reinstated, as the case may be. The foregoing sanction is mandatory, but shall not be grounds for

imposition of a monetary penalty under subsection (c) above.

(n) When the registration of a contractor has been revoked or suspended, neither the

contractor nor any successor entity or sole proprietorship that: (1) Has one or more of the same

principals or officers as the partnership, limited partnership, limited-liability partnership, joint

venture, limited-liability company, corporation, or sole proprietorship as the subject contractor; and

(2) Is engaged in the same or equivalent trade or activity shall be qualified to register, apply, renew,

or retain a registration as a contractor under this chapter, unless and until the board or office shall

determine that the basis of the revocation or suspension has been satisfied or removed and that the

registrant or applicant otherwise satisfies the requirements for registration under this chapter.

Notwithstanding the foregoing, a natural person may obtain relief from the application and

enforcement of this subsection as to him or her if he or she can establish that he or she was not

responsible for, and did not acquiesce to, the misconduct that is the basis of the revocation,

suspension, or denial of registration.

5-65-11. Types of allowable claims Submission of complaints.

(a) The board and office shall only accept and make determinations of the following types

of claims for damages against contractors registered or required to be registered. This section shall

apply to and consider complaints for purposes of determining whether registered contractors or

other persons who are required to be registered have violated the provisions of this chapter or the

regulations promulgate promulgated thereunder. This includes complaints that contain the

following types of claims:

(1) Claims against a contractor by the owner of a structure for residential dwelling unit

asserting the following in performing any work subject to this chapter:

(i) Negligent work;

(ii) Improper work;

(iii) Breach of contract; or

(iv) Contract disputes.

(2) Claims against a contractor by the owner of a structure to discharge or to recoup funds

expended in discharging a lien established under chapter 28 of title 34 and under circumstances

described under this subsection. The board may reduce any amount adjudged by the board under

this section by any amount the claimant owes the contractor. The board shall only determine claims

under this subsection if:

(i) The owner has paid the contractor for that contractor's work subject to this chapter; and

(ii) A lien is filed against the structure of the owner under chapter 28 of title 34 because

the contractor failed to pay the person claiming the lien for that person's contribution toward

completion of the structure.

(3) Claims against a registered contractor by a registered contractor for asserting the

following in performing any work subject to this chapter:

(i) Negligent work;

(ii) Improper work;

(iii) Breach of contract;

(iv) Furnishing labor or material or renting or supplying equipment to a contractor; or

(v) Contract dispute.

(4) Claims by an employee of a registered contractor.

(5) If at a hearing the contractor's registration number is not on the contract, or recession

clause when required by law, or mechanic's lien notice; the registrant shall be subject to a fine.

(6) If a settlement/agreement reached by the parties, or payment plan is breached, the board

may hold an administrative hearing to suspend or revoke the contractors' registration, impose a

fine, and provide monetary relief.

(b) While the board and office will accept complaints for purposes of determining

violations and taking enforcement action against registrants and other persons pursuant to the

provisions of this chapter, the board and office will not adjudicate any complainant claims, causes

of action, or rights or remedies, contractual or otherwise, or order payment of monetary damages,

other monetary relief, specific performance, or other contractual or equitable remedies or relief to

or for a complainant.

who violates the provisions of this chapter from entering into a consensual agreement or order with

the board or office that includes performance of work and/or restitution to a complainant in

consideration and as a condition of such consensual resolution of proceedings.

5-65-12. Procedure for making claims against a contractor -- Investigation by board

-- Disciplinary action Procedure for making a complaint against a contractor -- Investigation

by board -- Disciplinary action.

(a) Any person having a claim complaint against a contractor of the type referred to in § 5-

65-11, may file with the board a statement of the claim complaint in any a 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 Complaints resolved prior to issuance of an order may

be removed from the contractors' registration board record pursuant to administrative regulations.

(1) All claims complaints filed with the contractors' registration board shall be heard

processed 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 office or the board for purposes of determining any violations as described

in this chapter. In the event a complainant or contractor files a civil action with respect to the matter,

the board shall may discontinue processing the claim If documentation is not received, the hearing

will be conducted. complaint; provided, however, that nothing herein shall preclude the board or

office from continuing investigation and enforcement proceedings with respect to any violations of

this chapter or the regulations promulgated thereunder.

(2) The commencement of a civil or criminal action and/or issuance of a 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

complaint or determine to hold a complaint in abeyance, if:

(1) The same facts and issues involved in the claim complaint have been submitted to any

other entity authorized by law or the parties to effect a resolution and and/or settlement;

(2) The claimant complainant does not permit the contractor against whom the claim

complaint is filed to be present at any inspection made by the board;

(3) The board determines that the contractor against whom the claim complaint is filed is

capable of complying with the any recommendations made by the board relative to the claim

complaint, but the claimant complainant does not permit the contractor to comply with the

recommendations. The board may refuse to accept further process of a claim continue processing

a complaint 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 or office determines that the nature, or complexity, or amount in controversy

of the claim complaint is such that a court is the appropriate forum for the adjudication of the claim

complaint.

follows:

(1) If the owner of a new structure files the claim complaint, the board must receive the

claim complaint 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 complaint, the board must receive

the claim complaint 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 complaint involves a new or existing structure, if the

owner files the claim complaint because the contractor failed to begin the work pursuant to a written

contract, the board must receive the claim complaint not later than one year after the date the parties

entered into a written contract.

(4) Regardless of whether the claim complaint involves a new or existing structure, if the

owner files a claim complaint because the contractor failed to substantially complete the work, the

board must receive the claim complaint not later than one year after the date the contractor ceased

work on the structure.

(5) If a registered general contractor files the claim a complaint against a registered

subcontractor because the subcontractor failed to substantially complete the work, the board must

receive the claim complaint 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 complaint, the board must receive the claim complaint not later than one year after the date

the registrant incurred the indebtedness.

(7) The complainant will notify the board if after submission of the complaint, any

corrective work is performed to resolve the complaint. Any corrective work performed to resolve

a claim complaint 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 claimant complaint, the board shall give

notice to the party against whom the claim complaint is made and shall initiate proceedings to

determine the validity of the claim complaint. 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

order take any action deemed appropriate, including 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 and/or imposition of fines pursuant to § 5-65-10;

provided, that the board shall suspend for a period of one year the 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 attorney's fees and costs, and any

award for service of process costs pursuant to § 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 the problem has not been

corrected by the contractor or subcontractor, the aggrieved party shall have up to two (2) years one

year from the date of completion of the contractor's work to file a claim complaint with the

contractors' registration board. The two-year (2) one-year period shall not be construed as an

extension of any one-year warranty period expressed in any contract.

5-65-13. Nonlawyer may represent corporation before board.

A corporation or limited liability company that is registered or required to be registered as

a contractor under this chapter and that is a party in any proceeding before the board or any

representative of a party or office may appear or be represented in the proceeding by an officer of

the corporation who is not a member of the state bar; provided such officer provides satisfactory

documentation and attestation to the board confirming that such officer is the sole owner, officer,

director, manager, member of the corporation or limited liability company.

5-65-14. Builder board Contractors’ registration and licensing board -- Members --

Terms -- Confirmation -- Vacancies -- Qualification.

(a) The board shall consist of seventeen (17) members appointed by the governor, at least

ten (10) of whom shall be registered contractors, of which. Of the seventeen (17), members two

(2) shall be licensed roofers; one shall be a current member of the building codes standards

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

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

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

executive director of the Utility Contractors Association of Rhode Island, or designee; one shall be

the executive director of the Rhode Island Independent Contractors and Associates, or designee;

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

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

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

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

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

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

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

and the other members appointed by the governor shall each serve a term of three (3) years. Before

the expiration of the term of a member, the governor shall either reappoint the member or appoint

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

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

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

new member is appointed and confirmed.

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

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

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

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

5-65-16. 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 The board may conduct investigations with

the assistance of the local building officials.

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) or refuses to

testify on matters on which the person may be lawfully interrogated, such person shall be

considered in contempt and the board or director may compel obedience compliance and/or punish

any contempt of the authority in like manner as may be punished in either the supreme or the

superior court.

(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 nonprevailing party.

(f) In addition to all powers granted to the board and office under this chapter, the board

and office, and their designees, shall have the power and authority to:

(1) Award monetary damages and Assess fines as 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) in such amount

as determined by the board.

5-65-19. Penalty for operating without a registration – Failure to comply with a final

order of the board – Repeat offense a felony Penalty for operating without a registration --

Failure to comply with a final order or decision -- Repeat offense a felony offenses.

In addition to any other penalties provided under this chapter:

(a) (1) Any person who fails to register as a contractor as adjudged in a final order issued

by the board, upon proper written notification, is deemed guilty of a misdemeanor and, upon

conviction, shall be imprisoned for a term not exceeding one year, fined not more than one thousand

dollars ($1,000), or both, for a first or second offense. A third or subsequent violation of this

subsection chapter by a person for failure to register as a contractor is to be deemed a felony and,

upon conviction, the violator shall be imprisoned for a term not exceeding two (2) years, fined not

more than two thousand dollars ($2,000), or both.

(b) (2) Any person who violates a final order of the board where the monetary total of the

order including, but not limited to, the monetary judgment and/or fines, is not more than five

thousand dollars ($5,000), upon proper written notification, is deemed guilty of a misdemeanor,

and, upon conviction, shall be imprisoned for a term not exceeding one year, fined not more than

one thousand dollars ($1,000), or both.

order including, but not limited to, the monetary judgment and/or fines, is five thousand dollars

($5,000) or more, upon written notification, is deemed guilty of a felony and, upon conviction, shall

be imprisoned for a term not exceeding ten (10) years, fined not more than ten thousand dollars

($10,000), or both.

(d) (4) 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 subsections

(a), (b), and (c), the court shall order a defendant to comply with any outstanding final order or

decision of the board or office, including any monetary judgment and to pay payment of to the

board any outstanding fine or fines previously imposed by the board or office pursuant to this

chapter.

(e) (5) If a contractor is a repeat offender with violations of three (3) or more by final orders

or decisions of the board or office, a contractor is found to have committed violations of this chapter

with respect to three (3) or more separate contracts executed by with three (3) separate

individuals/aggrieved parties and the violations are filed occurred within a twenty-four-month (24)

period, the violation violations shall be deemed and prosecuted as a felony and upon conviction the

violator shall be subject to imprisonment for a term not to exceed ten (10) years or fined not more

than ten thousand dollars ($10,000).

5-65-20. Administrative hearings.

(a) Contested claims or cases, contested enforcement proceedings, and contested

administrative fines shall be heard, in accordance with the administrative procedures act, chapter

35 of title 42, and the administrative regulations promulgated by the board, by the hearings

officer(s) assigned by the director of the department of business regulation or the director's

designee.

(b) The board has jurisdiction to hear appeals from decisions of the hearing officer(s), and

may by regulation impose a filing fee, not to exceed twenty dollars ($20.00), for any appeal.

or the director's designee, and the office is authorized to resolve complaints and contested

enforcement or claim proceedings through informal disposition pursuant to regulations

promulgated by the board.

5-65-23. Registration required as part of bidding process.

Whenever any bid is solicited by the state or any municipality or private party in the state

of Rhode Island, the registration and/or license number of any bidder who is a contractor required

to be registered and/or licensed under the laws of the state of Rhode Island shall be provided by the

bidder. A space on the bid form, quotation, proposal, or other document shall indicate the bid price

to perform the particular work involved and shall also indicate the registration and/or license

number of the contractor, as issued by the state of Rhode Island, to perform that work.

5-65-25. Violations -- Notice.

The board shall provide, by way of the contractors' registration and licensing board website,

by request, or by any other means approved by the board, a posting of all final decisions and orders

issued by the board, all proposed orders of the board, and any and all hearing notices issued by the

board. Provided, however, that all claims and violations adjudicated in favor of the contractor shall

be removed from the website or publications as soon as practicable.

Provided however, this shall not prevent the board from expunging a contractor's record

pursuant to established rules and regulations.

5-65-26. Notice of final order -- Service of process -- Restitution for homeowner

contributions Notice of final order -- Service of process.

In any final order or decision of the board or office determining that a contractor has

violated the provisions of this chapter or the regulations promulgated thereunder, the The board or

office is hereby authorized to assess against any the contractor a monetary award to the claimant

the costs of service of process up to but not to exceed one thousand dollars ($1,000) for the costs

of service of process for any final orders of the board when the funds for the service of process

were provided by an aggrieved party under this chapter. The aggrieved party's claim assessment

shall be limited to the actual cost of the service of process or one thousand dollars ($1,000),

whichever is less. The board shall require provide the contractor with proof of costs from the

aggrieved party evidencing the expense for the service of process upon request.

SECTION 2. This act shall take effect upon passage.

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LC005315

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