It is enacted by the General Assembly as follows:

SECTION 1. Section 5-65-12 of the General Laws in Chapter 5-65 entitled "Contractor's Registration" is hereby amended to read as follows:

{ADD 5-65-12. Procedure for making claims against a contractor -- Investigation by board -- Disciplinary action. -- ADD} (1) Any person having a claim against a contractor of the type referred to in section 5-65-11, may file with the board a statement of the claim in such form and with such fee as the board prescribes.

(2) The board may refuse to accept, or refuse at any time to continue processing a claim if:

(a) The same facts and issues involved in the claim have been submitted to a court of competent jurisdiction for determination or have been submitted to any other entity authorized by law or the parties to effect a resolution and settlement;

(b) The claimant does not permit the contractor against whom the claim is filed to be present at any inspection made by the board;

(c) The board determines that the contractor against whom the claim is filed is capable of complying with the recommendations made by the board relative to the claim, but the claimant does not permit the contractor to comply with the recommendations. However, the board may refuse to accept further process of a claim 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

(d) The board determines that the nature or complexity of the claim is such that a court is the appropriate forum for the adjudication of the claim.

(3) The board shall not process a claim unless it is filed in a timely manner as follows:

(a) If the owner of a new structure files the claim, the board must receive the claim not later than one (1) year after the date the structure was first occupied as determined from the date of issuance of the certificate of occupancy or two (2) years after completion;

(b) If the owner of an existing structure files the claim, the board must receive the claim not later than one (1) year after the date the work was substantially completed as determined by the certificate of occupancy, or the date that worked ceased;

(c) Regardless of whether the claim involves a new or existing structure, if the owner files the claim because the contractor failed to begin the work pursuant to a written contract, the board must receive the claim not later than one (1) year after the date the parties entered into a written contract;

(d) Regardless of whether the claim involves a new or existing structure, if the owner files a claim because the contractor failed to substantially complete the work, the board must receive the claim not later than one (1) year after the date the contractor ceased work on the structure;

(e) If a registered general contractor files the claim against a registered subcontractor, because the subcontractor failed to substantially complete the work, the board must receive the claim not later than one (1) year after the date the subcontractor ceased to work on the structure;

(g) Any corrective work performed to resolve a claim will be the responsibility of the contractor for one (1) year beyond the completion date but only for said work performed.

(4) Upon acceptance of the statement of claim, the board shall give notice to the party against whom the claim is made and shall initiate proceedings to determine the validity of the claim. If, after investigation, the board determines that a violation of this chapter or of any rule promulgated thereunder has occurred, the board shall recommend to the registrant such action as the board considers appropriate, including revocation of said certificate, to compensate the claimant for any damages incurred as the result of the violation. If the contractor performs accordingly, the board shall give that fact due consideration in any subsequent disciplinary proceeding brought by the board. {ADD Provided however, the board shall suspend for a period of one (1) year 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 (1) year period. ADD}

SECTION 2. This act shall take effect upon passage.