2026 -- S 2205

========

LC003905

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2026

____________

A N   A C T

RELATING TO BUSINESS AND PROFESSIONS -- CONTRACTORS' REGISTRATION

AND LICENSING BOARD

     Introduced By: Senators Appollonio, Thompson, Britto, and Murray

     Date Introduced: January 23, 2026

     Referred To: Senate Commerce

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 5-65-1 of the General Laws in Chapter 5-65 entitled "Contractors’

Registration and Licensing Board" is 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.

     (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 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.

     (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 may contain a claim component and/or

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

hereunder.

     (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.

     (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 constructs, alters, repairs, improves, moves over public highways, roads,

or streets, or 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” also means any person who performs services as an “insurance adjuster”

as defined in § 27-10-1.1, and who evaluates, inspects, opines upon, or recommends the feasibility,

method, scope, or cost of repair or replacement of a building component regulated under the state

building code, for use in the investigation, negotiation, appraisal, or settlement of an insurance

claim, shall be deemed to be engaging in contractor activity and must be properly registered under

this chapter unless otherwise licensed.

     (ii)(iii) “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.

     (iii)(iv) A certificate of registration is necessary for each “business entity” regardless of the

fact that each entity may be owned by the same individual.

     (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

LC003905 - Page 2 of 8

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

work.

     (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.

     (10) “Hearing officer” means a person designated by the director of the department of

business regulation or the director’s designee to hear contested cases, contested enforcement

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

the “administrative procedures act,” chapter 35 of title 42.

     (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.

     (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.

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

     (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.

     (15) “Prime contractor” means a person who or that enters into a contract for construction

with the project owner.

     (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.

     (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.

     (18) “State” means the state of Rhode Island.

     (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

LC003905 - Page 3 of 8

contain. The board retains jurisdiction and may conduct hearings regarding violations against all

contractors required to be registered or licensed by the board.

     (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.

     SECTION 2. Section 5-65.1-2 of the General Laws in Chapter 5-65.1 entitled "Home

Inspectors" is hereby amended to read as follows:

     5-65.1-2. Definitions.

     When used in this chapter:

     (1) “Associate home inspector” means a person who is employed by a licensed home

inspector to conduct a home inspection of a residential building on behalf of a client for a fee under

the direct supervision of the licensed home inspector and is licensed pursuant to the provisions of

this chapter.

     (2) “Board” means the contractors’ registration and licensing board.

     (3) “Client” means any person who engages, or seeks to engage, the services of a home

inspector for the purpose of obtaining an inspection of, and written report upon, the condition of a

residential building.

     (4) “Home inspection” means an inspection and a written evaluation of the following

readily visible and accessible components of a residential building: heating, cooling, plumbing, and

electrical systems, structural components, foundation, roof, masonry structure, exterior and interior

components, and any other related residential housing components, unless the scope of the

inspection is otherwise clearly limited, in writing, in the inspection report. Unless otherwise

expressly agreed to, in writing, a home inspection shall be based solely on observation of the readily

visible and apparent condition of the foregoing components of a residential building as they exist

on the date of the inspection, and it is not the purpose of the inspection to identify violations of, or

noncompliance with, governmental codes or regulation. A home inspection shall, at a minimum,

conform to any standards of practice promulgated by the board.

     (5) “Home inspector” means any person licensed as a home inspector to conduct a home

inspection of a residential building on behalf of a client for a fee pursuant to the provisions of this

LC003905 - Page 4 of 8

chapter.

     (i) “Home inspector” also means any person who performs an inspection of commercial

and residential structures, roofing systems, or building envelopes in connection as an “insurance

adjuster” as defined in § 27-10-1.1, for an insurer or any insurer-retained vendor, where the results

are used in the investigation, negotiation, appraisal, or settlement of an insurance claim, shall be

licensed as a home inspector under this chapter unless exempt under another professional licensure

statute.

     (6) “Public body” or “agency” means any executive, legislative, judicial, regulatory, or

administrative body of the state or any political subdivision thereof, including, but not limited to:

public officials elected or appointed; any department, division, agency, commission, board, office,

bureau, authority; any school, fire, or water district; or other agency or quasi-public agency of state

or local government that exercises governmental functions.

     (7) “Residential building” means a structure consisting of one or more residences and their

appurtenances.

     SECTION 3. Section 27-10-1.1 of the General Laws in Chapter 27-10 entitled "Claim

Adjusters" is hereby amended to read as follows:

     27-10-1.1. Definitions.

     (a) “Adjuster” means an individual licensed as either a public, company, or independent

adjuster.

     (b) “Catastrophic disaster” according to the Federal Response Plan, means an event that

results in large numbers of deaths and injuries; causes extensive damage or destruction of facilities

that provide and sustain human needs; produces an overwhelming demand on state and local

response resources and mechanisms; causes a severe long-term effect on general economic activity;

and severely affects state, local, and private sector capabilities to begin and sustain response

activities. A catastrophic disaster shall be declared by the President of the United States, the

governor of the state, or the insurance commissioner.

     (c) “Company adjuster” means a person who:

     (1) Is an individual who contracts for compensation with insurers or self-insurers as an

employee; and

     (2) Investigates, negotiates, or settles property, casualty, or workers’ compensation claims

for insurers or for self-insurers as an employee.

     (d) “Department” means the insurance division of the department of business regulation.

     (e) “Home state” means the District of Columbia and any state or territory of the United

States in which the adjuster’s principal place of residence or principal place of business is located.

LC003905 - Page 5 of 8

If neither the state in which the independent or company adjuster maintains the principal place of

residence, nor the state in which the adjuster maintains the principal place of business, has a

substantially similar law governing adjusters, the adjuster may declare another state in which it

becomes licensed and acts as an independent or company adjuster to be the “home state.”

     (f) “Independent adjuster” means a person who:

     (1) Is an individual who contracts for compensation with insurers or self-insurers as an

independent contractor; or

     (2) Investigates, negotiates, or settles property, casualty, or workers’ compensation claims

for insurers or for self-insurers as an independent contractor.

     (g) “Insurance adjuster” means a person who:

     (1) On behalf of an insurer or any person or entity acting for or retained by an insurer,

investigates, inspects, evaluates, measures, documents, reports upon, or provides opinions

regarding damage, causation, scope of loss, repairability, replacement, or valuation of property,

when such activity is undertaken in connection with the investigation, negotiation, appraisal, or

settlement of an insurance claim.

     (2) The term “insurance adjuster” shall apply regardless of the title, designation, or

description used by the person performing such services including, but not limited to, inspector,

consultant, field representative, building consultant, or appraiser, and regardless of whether such

services are performed directly for the insurer or indirectly through a vendor, contractor, or other

third party.

     (3) Any person performing the activities described in this subsection without holding a

license issued pursuant to this chapter shall be deemed to be acting as an unlicensed insurance

adjuster.

     (g)(h) “Insurance commissioner” means the director of the department of business

regulation or the director’s designee.

     (h)(i) “NAIC” means the National Association of Insurance Commissioners.

     (i)(j) “Public adjuster” means any person who, for compensation or any other thing of value

on behalf of the insured:

     (1) Acts or aids, solely in relation to first-party claims arising under insurance contracts

that insure the real or personal property of the insured, other than automobile, on behalf of an

insured in negotiating for, or effecting the settlement of, a claim for loss or damage covered by an

insurance contract;

     (2) Advertises for employment as a public adjuster of insurance claims or solicits business

or represents themself to the public as a public adjuster of first-party insurance claims for losses or

LC003905 - Page 6 of 8

damages arising out of policies of insurance that insure real or personal property; or

     (3) Directly or indirectly solicits business, investigates or adjusts losses, or advises an

insured about first-party claims for losses or damages arising out of policies of insurance that insure

real or personal property for another person engaged in the business of adjusting losses or damages

covered by an insurance policy, for the insured.

     (j)(k) “Uniform individual application” means the current version of the National

Association of Insurance Commissioners (NAIC) Uniform Individual Application for resident and

nonresident individuals.

     SECTION 4. This act shall take effect upon passage.

========

LC003905

========

LC003905 - Page 7 of 8

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO BUSINESS AND PROFESSIONS -- CONTRACTORS' REGISTRATION

AND LICENSING BOARD

***

     This act would expand various definitions relative to contractors, home inspectors, and

claim adjusters to provide clarity regarding licensed and unlicensed vendors, consultants, or third-

party representatives.

     This act would take effect upon passage.

========

LC003905

========

LC003905 - Page 8 of 8