2009 -- S 0464

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LC01392

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2009

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A N A C T

RELATING TO BUSINESSES AND PROFESSIONS

     Introduced By: Senators Walaska, and Bates

     Date Introduced: February 25, 2009

     Referred To: Senate Corporations

It is enacted by the General Assembly as follows:

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

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is hereby amended by adding thereto the following chapter:

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     CHAPTER 20.1

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UNDERGROUND UTILITY CONTRACTORS

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     5-20.1-1. Purpose. -- The purpose of this chapter is to establish provisions, qualifications

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

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underground utilities.

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     5-20.1-2. Definitions. -- The following words and phrases shall have the meanings stated

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herein when used in this chapter:

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

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

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

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

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

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

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

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

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individuals licensed under chapter 20 of title 5, entitled "Plumbers and Irrigators."

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     (2) The term "underground utility contracting" means the installation, repair, alteration or

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replacement of underground utilities which shall include, but are not limited to, sewer lines, storm

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drainage lines or water lines, mains and laterals, laying drains and related services outside of

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buildings, making connections with public and/or private underground utilities excluding any

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such work performed within the scope of the mechanical trades covered under Rhode Island

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general laws section 28-27-28 and provided that such work is to be done between the main,

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

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or structure.

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     (3) The term “licensing municipality” means the municipality wherein an underground

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utility contractor:

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     (i) Resides; or

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     (ii) Maintains a business location.

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     5-20.1-3. License required. -- (a) It is unlawful for any underground utility contractor to

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engage in the installation, repair, alteration or replacement of sewer lines and services, located

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between the main or lateral services and/or appurtenances to within five feet (5') of the outer

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walls of a building or structure without a valid triannual license issued by one licensing

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municipality; provided, however, that a city or town is not prohibited from requiring a license for

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storm drainage or water lines.

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

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shall be exempt from the requirement to obtain both an underground utility contractor's license as

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required by this chapter and an installers license as required by chapter 56 of title 5 provided that

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master plumbers are required to comply with the provisions of sections 5-20.1-10 and 5-56-7.

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

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be exempt from the provisions of this chapter.

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     5-20.1-4. Conditions for obtaining an underground utility contractor's license. -- (a)

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To obtain a license under this chapter, an underground utility contractor must submit to a

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licensing municipality an application for an underground utility contractor's license completed in

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its entirety, together with a fee as designated by the licensing municipality. The application must

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also comply with any requirements established by licensing municipality which may include:

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     (1) Demonstrating to the licensing municipality that the underground utility contractor is

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capable of installing, repairing, altering or replacing sewer lines, storm drainage lines or

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waterlines and services in accordance with approved plans and specifications.

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     (2) Obtaining a passing grade on a written examination given by the licensing

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municipality, intended to demonstrate an understanding of the rules and regulations, and an

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ability to read and interpret approved plans and specifications. Any applicant who fails in an

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examination for a license is permitted to take further examinations upon payment for each

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examination of the prescribed fee.

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     (b) In the event a municipality determines not to grant licenses to any underground utility

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contractors, an underground utility contractor residing or maintaining its business in that

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municipality may apply for a license in any other municipality and shall become subject to that

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municipality’s licensing requirements and enforcement practices.

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     5-20.1-5. Expiration and renewal of licenses. -- All licenses of underground utility

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contractors issued by a licensing municipality shall expire annually on the anniversary date of the

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license's issuance and may be renewed on or before that date for a period of one year, upon

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compliance with section 5-20.1-4.

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     5-20.1-6. Licensing of underground utility contractors granted without examination

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. – (a) After enactment of this chapter and at any time prior to the expiration of twelve (12)

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months following enactment of this section, each licensing municipality shall, without

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examination, upon payment of the fees required by this chapter, issue a license to any applicant

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who shall present satisfactory evidence as described in subsection (b) of this section that the

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applicant has the qualifications for issuance of an underground utility contractor license. After

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the initial “grandfather” window, any eligible underground utility contractor not licensed in any

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municipality in the prior twelve (12) months provided for in this section may be required to pass a

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written examination and show the aforementioned proof of eligibility.

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     (b) Satisfactory evidence shall be any of the following that is applicable:

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     (1) The owner(s) of an enterprise must have been active as a sewer/drain layer installer

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for the previous three (3) years;

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     (2) Notarized conformation under penalty of perjury by three (3) underground utility

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contractors of his/her or it’s active standing as an underground utility contractor; or

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     (3) The contractor or licensee shall provide satisfactory evidence that they have

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previously been granted a license as a sewer/drain layer installer by three (3) or more Rhode

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Island cities or towns granting or issuing such a license.

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     5-20.1-7. Responsibilities, performance and conduct. – A licensed underground utility

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contractor shall:

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     (1) Perform all work in compliance with plans and specifications approved by the

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appropriate authority having jurisdiction over the utility; and

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     (2) Perform all work in compliance with all federal, state and local health and safety

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requirements.

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     5-20.1-8. Bond requirement. – Every applicant for a certificate of license as an

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

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alteration or replacement of mains, laterals, services and/or appurtenances and related services in

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accordance with this chapter, shall furnish a bond in the sum of ten thousand dollars ($10,000)

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with one or more sureties, conditioned substantially that the applicant indemnifies and holds

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

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name and description brought against any of those cities or towns or any of their officer(‘s), for or

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on account of any injuries or damages received or sustained by any person in consequence of or

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

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from any improper materials used in the work, or of or from any negligence in guarding the work,

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or of or from any act or omission of the applicant, or its employees, servants or agents.

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     5-20.1-9. License not transferable or assignable. – Underground utility contractor’s

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

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ownership or upon suspension or revocation.

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     5-20.1-10. Penalties for violations. – Violation of any provision of this chapter shall be

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

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

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organization, shall be subject to a fine, which shall be set by the licensing municipality and

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payable to the licensing municipality but shall not be greater than five hundred dollars ($500) for

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the first offense and for the second and subsequent violations of this chapter is subject to a fine

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not greater than nine hundred fifty dollars ($950).

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     5-20.1-11. Enforcement. –It is the duty of the appropriate local municipal authority

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and/or the licensing authority to enforce the provisions of this chapter. Any licensed underground

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utility contractor aggrieved by a decision of the appropriate local municipal authority or the

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licensing municipality shall have the right to appeal said decision pursuant to the administrative

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procedures act, chapter 35 of title 42.

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     5-20.1-12. Severability. – If any provision or part of this chapter, or its application to any

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entity or circumstance, is held unconstitutional or otherwise invalid, the remaining provisions of

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

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

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

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and Irrigators" is hereby repealed.

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

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

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

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

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

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

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

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

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

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     SECTION 3. This act shall take effect on January 1, 2010.

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LC01392

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO BUSINESSES AND PROFESSIONS

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     This act would establish provisions, qualifications and procedures for the licensing of

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underground utility contractors.

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     This act would take effect on January 1, 2010.

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LC01392

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