Introduced By: Senator Badeau
Date Introduced : March 19, 1999
It is enacted by the General Assembly as follows:
SECTION 1. Sections 5-65-3, 5-65-7, 5-65-16 of the General Laws in Chapter 5-65 entitled "Contractors' Registration" are hereby amended to read as follows:
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. 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 Disciplinary action taken on a registration held by a corporation, partnership, or sole proprietor may affect other registrations held by the same corporation, partnership, or sole proprietorship, and may preclude future registration by the principal of that business entity. 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 and 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 all inclusive and not limited to the above referenced contractors. No subcontractor licensed by another state agency pursuant to section 5-65-2 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.
(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.
5-65-7. Insurance required of contractors. -- (a) Throughout the period of registration, the contractor shall have in effect public liability and property damage insurance covering the work of that contractor which is subject to this chapter in not less than the following amount: Three hundred thousand dollars ($300,000) combined single limit, bodily injury and property damage.
{ADD In addition, all contractors shall have in effect Worker's Compensation insurance as required under section 28-29 et seq. Failure to maintain required insurance shall not preclude claims from being filed against a contractor. ADD}
(b) The contractor shall provide satisfactory evidence to the board at the time of registration and renewal that the insurance required by subsection (a) of this section has been procured and is in effect. Failure to maintain insurance will invalidate registration and may result in a fine to the registrant.
5-65-16. Investigatory powers of board -- Use of city or county inspectors -- Conduct of hearings. -- (a) The board may investigate the activities of any person engaged in the building and construction industry to determine compliance with this chapter. {ADD ADD}
(b) With the assistance of the city or town the board may conduct investigations with the assistance of the local building officials.
(c) The board has the power to administer oaths, issue notices
and subpoenas in the name of the board, compel the attendance
of witnesses and the production of evidence, hold hearings and
perform such other acts as are reasonably necessary to carry out
its duties under this chapter. {DEL{ADD to include
requiring any person working on residential property to provide
proper identification upon request. ADD}DEL}
(d) If any person fails to comply with a subpoena issued under subsection (c) or refuses to testify on matters on which the person may be lawfully interrogated, the board may compel obedience.
SECTION 2. Chapter 5-65 of the General Laws entitled "Contractors' Registration" is hereby amended by adding thereto the following section:
{DEL 5-65-7.1. Notice of issuance, cancellation, or failure to
renew policies. -- {ADD (a) Every insurance company having
written a policy as described in section 5-65-7, shall immediately
notify the director of the contractors' registration board of
the issuance of the policy. Upon the cancellation of the policy
or failure to renew the policy, every insurance company having
written the policy shall immediately notify the director of the
contractors' registration board of the cancellation or failure
to renew. Any insurance company that fails to notify the director
as required in this section, shall be subject to prosecution for
a misdemeanor and upon conviction thereof may be punished by a
fine of not more than two hundred fifty dollars ($250.00) for
each offense. All criminal actions for any violation of this
section shall be prosecuted by the attorney general. The attorney
general shall prosecute actions to enforce the payment of penalties
and fines at the request of the director. ADD}
{ADD (b) Cancellation of the policy or non-renewal shall not be deemed effective until written notice of the cancellation or non-renewal is received by the director. DEL}
{ADD 5-65-7.1. Notice of cancellation or failure to renew policies. -- ADD} {ADD Upon the cancellation or failure to renew, the insurance company having written a liability policy, as described in section 5-65-7, shall notify the director of the Contractors' Registration Board of the cancellation or failure to renew. The policy continues in effect until ten (10) days after written notice of the cancellation is given to the director of the Contractors' Registration Board of the cancellation or termination of the liability policy by the issuing insurance company or companies in addition to any other notices which may be required by law. Any insurance company that fails to notify the director as required in this section shall be subject to prosecution for a misdemeanor and upon conviction thereof may be punished by a fine of not more than two hundred fifty dollars ($250.00) for eachf offense. All criminal actions for any violation of this section shall be prosecuted by the attorney general. The attorney general shall prosecute actions to enforce the payment penalties and fines at the request of the director. ADD}
{ADD SECTION 2. This act shall take effect on January 1, 2000. ADD}
SECTION 3. This act shall take effect upon passage.
