2011 -- S 0516

=======

LC01924

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2011

____________

A N A C T

RELATING TO BUSINESSES AND PROFESSIONS

     Introduced By: Senators Walaska, and Bates

     Date Introduced: March 10, 2011

     Referred To: Senate Corporations

It is enacted by the General Assembly as follows:

1-1

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

1-2

is hereby amended by adding thereto the following chapter:

1-3

     CHAPTER 20.1

1-4

UNDERGROUND UTILITY CONTRACTORS

1-5

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

1-6

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

1-7

underground utilities.

1-8

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

1-9

herein when used in this chapter:

1-10

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

1-11

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

1-12

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

1-13

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

1-14

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

1-15

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

1-16

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

1-17

underground utility contractor. The term “underground utility contractor” does not include

1-18

individuals licensed under chapters 5-20 (“Plumbers and Irrigators”) and 23-65 (“Board of

1-19

Certification of Operators of Public Water Facilities”);

2-1

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

2-2

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

2-3

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

2-4

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

2-5

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

2-6

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

2-7

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

2-8

building or structure;

2-9

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

2-10

utility contractor:

2-11

     (i) Resides; or

2-12

     (ii) Maintains a business location.

2-13

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

2-14

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

2-15

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

2-16

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

2-17

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

2-18

storm drainage or water lines.

2-19

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

2-20

exempt from the requirement to obtain both and underground utility contractor’s license as

2-21

required by this chapter and an installers license as required by chapter 5-56; provided, that

2-22

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

2-23

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

2-24

be exempt from the provisions of this chapter.

2-25

     (d) Any public utility water system or agent thereof regulated by the department of health

2-26

shall be exempt from the provisions of this chapter.

2-27

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

2-28

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

2-29

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

2-30

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

2-31

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

2-32

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

2-33

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

2-34

lines and services in accordance with approved plans and specifications;

3-1

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

3-2

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

3-3

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

3-4

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

3-5

examination of the prescribed fee.

3-6

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

3-7

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

3-8

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

3-9

municipality’s licensing requirements and enforcement practices.

3-10

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

3-11

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

3-12

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

3-13

compliance with section 5-20.1-4.

3-14

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

3-15

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

3-16

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

3-17

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

3-18

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

3-19

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

3-20

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

3-21

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

3-22

written examination and show the aforementioned proof of eligibility.

3-23

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

3-24

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

3-25

for the previous three (3) years;

3-26

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

3-27

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

3-28

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

3-29

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

3-30

Island cities or towns granting or issuing such a license.

3-31

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

3-32

contractor shall:

3-33

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

3-34

appropriate authority having jurisdiction over the utility; and

4-1

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

4-2

requirements.

4-3

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

4-4

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

4-5

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

4-6

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

4-7

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

4-8

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

4-9

name and description brought against any of those cities or towns or any of their officer or

4-10

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

4-11

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

4-12

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

4-13

guarding the work, or of or from any act or omission of the applicant, or its employees, servants

4-14

or agents.

4-15

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

4-16

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

4-17

ownership or upon suspension or revocation.

4-18

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

4-19

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

4-20

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

4-21

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

4-22

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

4-23

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

4-24

not greater than nine hundred fifty dollars ($950)

4-25

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

4-26

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

4-27

utility contractor aggrieved by a decision of the appropriate local municipality authority of the

4-28

licensing municipality shall have the right to appeal said decision pursuant to chapter 42-35

4-29

(“Administrative Procedures”).

4-30

     5-20.1-12. Severability . – If any provision of this chapter or the application thereof to

4-31

any person or circumstances is held invalid, such invalidity shall not affect other provisions or

4-32

applications of the chapter, which can be given effect without the invalid provision or application,

4-33

and to this end the provisions of this chapter are declared to be severable.

4-34

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

5-1

and Irrigators" is hereby repealed.

5-2

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

5-3

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

5-4

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

5-5

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

5-6

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

5-7

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

5-8

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

5-9

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

5-10

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

5-11

     SECTION 3. This act shall take effect on January 1, 2012.

=======

LC01924

=======

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO BUSINESSES AND PROFESSIONS

***

6-1

     This act would create a comprehensive licensing structure for the underground utility

6-2

construction industry.

6-3

     This act would take effect on January 1, 2012.

=======

LC01924

=======