It is enacted by the General Assembly as follows:

SECTION 1. Sections 5-65-1, 5-65-3, 5-65-9, 5-65-12, 5-65-15, 5-65-17 and 5-65-19 of the General Laws in Chapter 5-65 entitled "Contractors' Registration" are hereby amended to read as follows:

5-65-1. Definitions. -- As used in this chapter:

(1) "Board" means the {ADD seven (7) member appointed ADD} contractors' registration board.

(2)(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 over public highways, roads or streets or demolish 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. "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) A certificate of registration is necessary for each "Business Entity" regardless of the fact that each entity may be owned by the same individual.

(3) "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.

(4) "State" means the state of Rhode Island.

(5) "Structure" means a residence, including a site-built home, a modular home constructed off-site, a condominium, a manufactured home, a mobile home, and duplex or multi-unit residential building, consisting of four (4) dwelling units or less. This definition shall include and be pre-empted by the regulations promulgated by the state building commission rules and regulations for family dwellings and multi-family dwellings.

{ADD (6) "Staff" means the executive director for the contractors' registration board, and any other staff necessary to carry out the powers, functions and duties of the board including inspector(s), hearing officer(s) and other supportive staff.

(7) "Hearing officer" means a person designated by the executive director, with the approval of the director of administration to hear contested claims or cases, contested enforcement proceedings, and contested administrative fines, in accordance with the Administrative Procedures Act. ADD}

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) 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 residential work issued by the board. A partnership, corporation, or joint venture may do such work, offer to undertake such work, or submit a bid to do such work only if that partnership, corporation, or joint venture is registered for such work. {ADD In the case of registration by a corporation or partnership, an individual shall be designated to be responsible for the corporation's or partnership's work. The corporation or partnership and its designee shall be jointly and severally liable for; the payment of the registration fee, as requested herein, and for violations of any provisions of this chapter. ADD}

(b) A registered partnership or corporation shall notify the board immediately upon any change in partners or corporate officers.

(c) A city, town, or the state shall not issue a building permit to anyone required to be registered under this chapter who does not have a current, valid certificate of registration identification card or valid license which shall be presented at the time of issuance of a permit and becomes a condition of a valid permit. Each city, town, or the state which 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 such permit file as a condition to issuing the permit a written statement, subscribed by the applicant, that the applicant 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 premise and shall inform the registration board of any non-registered contractors performing work at the site.

(d) Every city and town which requires the issuance of a business license as a condition precedent to engaging, within the city or town in a business which is subject to regulation under this chapter, shall require that each licensee and each applicant for issuance or renewal of such license file, or have on file, with such city or town a signed statement that such 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 section 5-65-1(2) if within any one twelve (12) month period that person offers for sale one or more structures on which that work was performed.

(f) Registration under this chapter is 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 issue any registrations or licenses nor charge any fee for the regulatory registration of any contractor registered with the board. However, 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 which includes the following information about all subcontractors or other contractors performing work on a structure for that contractor:

(i) Names and addresses.

(ii) Registration numbers or other license numbers.

(iii) Contracts entered into must contain notice of right of rescission as stipulated in all pertinent Rhode Island consumer protection laws.

(iv) The contractor must stipulate whether or not all the proper insurances are in effect for each job contracted.

(2) The list referred to in paragraph (1) of this subsection shall be delivered to the board within twenty four (24) hours after a request made during reasonable working hours, or a fine of twenty five dollars ($25.00) may be imposed for each such 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, 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. This list is not {ADD all ADD} inclusive and not limited to the above referenced contractors. No subcontractor licensed by another state agency {ADD pursuant to section 5-65-2 ADD} shall be required to register.

(j) A contractor, including but not limited to, a general contractor, shall not hire any subcontractor or other contractor to work on a residential structure unless the contractor is registered under this chapter or exempt from registration under the provisions of section 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 is prohibited, including alphabetical or classified directory listings vehicles, business cards, and all other forms of advertisements. Such violations could result in a penalty to be assessed by the board per administrative procedures established.

{ADD (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 said permit as required by the state building code. ADD}

5-65-9. Registration fee. -- (a) Each applicant shall pay to the board:

(1) For original registration or renewal of registration, a fee of sixty dollars ($60.00).

(2) A fee for all changes in the registration, as prescribed by the board, other than those due to clerical errors. All fees collected by the board shall be deposited as general revenues.

(b) The state auditor general shall conduct an audit of the board's budget and shall evaluate all of the board's revenue and expenditures. This report shall determine the actual surplus generated from fees as assessed for registration of contractors. The executive director shall be responsible for the development of the board's annual budget to be submitted to the board for approval. The budget shall be submitted to the legislature as part of the building commission's annual request.

{ADD (3) Each year, the executive director will prepare a proposed budget to support the programs approved by the board. The proposed budget will be submitted to the board for their review. A final budget request will be submitted to the legislature as part of the division of central services annual request. ADD}

5-65-12. Procedure for making claims against a contractor -- Investigation by board -- Disciplinary action. -- (a) 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. {ADD Claims resolved prior to issuance of an order shall be removed from the contractor's registration board record pursuant to administrative regulations. ADD}

{ADD (1) All claims filed with contractor's registration board shall be heard 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 written notice and a copy of the filed civil complaint the board shall discontinue processing the claim.

(2) 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. ADD}

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

(1) 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;

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

(3) 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

(4) 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.

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

(1) 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 {ADD one (1) year after the date of the closing on the structure, whichever shall later occur ADD} .

(2) 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;

(3) 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;

(4) 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;

(5) 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;

(6) If a material or equipment supplier, an employee, or a registered subcontractor files the claim, the board must receive the claim not later than one (1) year after the date the registrant incurred the indebtedness;

(7) 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.

(d) 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. 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.

5-65-15. Officers -- Quorum -- Compensation and expenses. -- (a) The board shall select from among its members a chair, a vice chairperson and such other officers for such terms and with such duties and powers necessary for the performance of their duties as the board determines.

(b) A majority of the members of the board constitutes a quorum for the transaction of business.

(c) The board shall have an executive director who shall attend all meetings and direct the conduct of any investigation which may be necessary in the preparation of any hearing. The executive director shall be a member of the classified service on the staff of the state building commissioner and shall be compensated as appropriate for the expertise required.

5-65-17. Rule making authority. -- The board shall promulgate rules, and fines, to carry out this chapter in accordance with the Administrative Procedures Act, chapter 35 of title 42.

5-65-19. Penalty for operating without a registration and failure to comply with a final order of the board. -- (a) Any person who violates a final order of the board, or fails to register as a contractor as stipulated, and upon proper written notification, shall be deemed guilty of a misdemeanor, and shall, on conviction thereof, be imprisoned for a term not exceeding one year, or fined not more than one thousand dollars ($1,000) for each offense.

(b) A final order is considered delivered when served to defendant pursuant to rule 49 of the district court rules of criminal procedure. {ADD (b) A final order is considered delivered when served to defendant pursuant to rule 49 of the district court rules of criminal procedure. In addition to any sentence or fine imposed by the court under subsection (s) of this section, the court may order a defendant to comply with any outstanding final order of the board and/or to pay to the board any outstanding fine(s) previously imposed by the board pursuant to section 5-65-10(c) of this chapter. ADD}

SECTION 2. Chapter 5-65 of the General Laws entitled "Contractors' Registration" is hereby amended by adding thereto the following sections:

{ADD 5-65-15.1. Staff. -- (a) The state building code commission shall provide the board with appropriate staff, including hearing official(s) and investigator(s), who shall perform their duties under the administrative supervision of the executive director. ADD}

{ADD (b) The board may delegate such powers, functions and duties to provided staff. ADD}

{ADD 5-65-20. Administrative hearings. -- Contested claims or cases, contested enforcement proceedings, and contested administrative fines shall be heard, in accordance with the Administrative Procedures Act and the administrative regulations promulgated by the baord, by the hearings office(s) duly assigned by the executive director of the board.

(b) The board shall have jurisdiction to hear appeals from decisions of the hearing officer(s), and may by regulation impose a filing fee, not to exceed $20.00. for any such appeal.

(c) Notwithstanding the foregoing, the executive director for the board shall be authorized to resolve contested enforcement or claim proceedings through informal disposition pursuant to regulations promulgated by the board. ADD}

{ADD 5-65-21. Severability. -- The provisions of this chapter are severable. If any provisions of this chapter or the application thereof to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of this chapter which can be given effect without regard to the invalid provisions or application. ADD}

SECTION 3. This act shall take effect upon passage.