2023 Rhode Island General Laws › Title 5 - Businesses and Professions › Chapter 5-65 - Contractors’ Registration and Licensing Board › Section 5-65-10. - Grounds for discipline — Injunctions.

§ 5-65-10. Grounds for discipline — Injunctions.
(a)
The board or office may revoke, suspend, or refuse to issue, reinstate, or reissue a registration if the board or office determines, after notice and opportunity for a hearing:
(1)
That the registrant or applicant has violated § 5-65-3 or any other provision of this chapter or the regulations promulgated thereunder.
(2)
That the insurance required by § 5-65-7 is not currently in effect.
(3)
That the registrant, licensee, or applicant has engaged in conduct as a contractor that is dishonest or fraudulent that the board or office finds injurious to the welfare of the public.
(4)
Has violated a rule or order of the board.
(5)
That the registrant has knowingly assisted an unregistered person to act in violation of this chapter or the regulations promulgated thereunder.
(6)
That a lien was filed on a structure under chapter 28 of title 34 because the registrant or applicant wrongfully failed to perform a contractual duty to pay money to the person claiming the lien.
(7)
That the registrant has violated state building codes.
(8)
That the registrant has made false or fraudulent statements on his or her application.
(9)
That a registrant has engaged in repeated acts in violation of this chapter and the board’s rules and regulations inclusive of substandard workmanship and any misuse of registration.
(10)
The board or office may take disciplinary action against a contractor who performed work, or arranged to perform work, while the registration was suspended, invalidated, or revoked. Deposits received by a contractor and ordered returned are not considered a monetary award when no services or supplies have been received.
(11)
That the registrant breached a contract.
(12)
That the registrant performed negligent and/or improper work.
(13)
That the contractor has advertised with a license number when only registered.
(14)
That the registrant has failed to complete a project(s) for construction or willfully failed to comply with the terms of a contract or written warranty.
(15)
That the registrant has misrepresented his or her registration status as valid when the registration was suspended, revoked, invalidated, inactive, or unregistered as required by the board.
(16)
That the registrant has failed to pay a fine or comply with any order issued by the board or office.
(17)
That the registrant has failed to obtain or maintain the required continuing education/units required by the board, or failed to sign the statement required by the board for registration or renewal.
(18)
When a violation for hiring a nonregistered contractor, working as a nonregistered contractor, or not maintaining the insurance required is issued, the board or office may suspend the registration until the violation is resolved to the satisfaction of the board or office or otherwise through the administrative hearing proceeding.
(19)
That the registrant has violated any of the provisions of chapter 3 of title 25; chapter 3, 12, 14, 36, or 50 of title 28; or chapter 13 of title 37. A finding that the registrant has violated any of those chapters shall not be grounds for imposition of a monetary penalty under subsection (c) below.
(b)
Subject to providing notice and an opportunity for a hearing, in addition to all other remedies, when the board or office has reason to believe that a person has engaged in, or is engaging in, any act, practice, or transaction that violates the provisions of this chapter or the regulations promulgated thereunder, the board or office may order such person to cease and desist from the violation or request the attorney general to apply to the court for an injunction restraining the person from violating the provisions of this chapter. An injunction shall not be issued for failure to maintain the list provided for in § 5-65-3(h) unless the court determines that the failure is intentional.
(c)
Subject to providing notice and an opportunity for a hearing:
(1)
For each first violation of a particular section of this chapter or any rule or regulation promulgated by the board, a fine not to exceed five thousand dollars ($5,000) may be imposed. Where corrective work is completed and/or if restitution is made to the person for whom the work was to be performed, the fine assessed may be reduced as determined by the board. Fines for violations may be imposed against registered contractors, as well as those persons required to be registered, by the board.
(2)
For each subsequent violation of a particular subsection of this chapter or of a rule or regulation promulgated by the board, a fine not to exceed ten thousand dollars ($10,000) may be imposed. All fines collected by the board shall be deposited into a restricted-receipt account to be used to enforce the provisions of this chapter.
(3)
For a violation of § 5-65-3, only for nonregistered contractors, a fine of up to five thousand dollars ($5,000) for a first offense and up to ten thousand dollars ($10,000) for each subsequent offense shall be imposed.
(d)
In any decision following a hearing, the hearing officer, board, or office may require the registrant, in addition to or in lieu of a fine, to attend continuing education courses as appropriate. Failure to adhere to the requirement may result in immediate revocation of the registration.
(e)
The expiration of a registration by operation of law or by order or decision of the board, the office, or a court, or the voluntary surrender of registration by the registrant, does not deprive the board or office of jurisdiction of an action or disciplinary proceeding against the registrant, or to render a decision suspending or revoking a registration.
(f)(1)
In emergency situations, when a registrant is acting to the detriment of the health, welfare, and safety of the general public, the director of the department of business regulation, or the director’s designee, may revoke or suspend a registration without a hearing for just cause for a period of thirty (30) days.
(2)
A registration revocation or suspension in an emergency situation may be extended beyond thirty (30) days after notice and opportunity for a hearing.
(g)
A registrant may petition the board to partially or completely expunge his or her record and the board may grant or deny such petition in its sole discretion.
(h)
Any person or contractor, registered or not, who or that uses another contractor’s registration or allows another person to use their contractor’s registration fraudulently in any way, will be subject to a fine not exceeding ten thousand dollars ($10,000).
(i)
When fraudulent advertising is used to entice an individual to hire an unregistered contractor, a fine of up to ten thousand dollars ($10,000) may be imposed on the unregistered contractor by the board or office.
(j)
If a social security number or copy of the driver’s license is received from a registrant by a building official as a condition of obtaining a permit, such information shall be maintained in accordance with applicable law.
(k)
When upon investigation a complaint reveals: serious code infractions; unsatisfied mechanic’s liens; abandonment of a job for a substantial period of time without apparent cause; or any other conduct detrimental to the public, the board can double the fines.
(
l
)
No person shall register as a contractor with the board for the purpose of deceiving or circumventing the registration process by enabling a person whose registration has been suspended or revoked to conduct business. Provided, however, that any person who, in good faith, relies on the board or the board’s website for information regarding the registration status of another, shall be exempt from violations pursuant to this section if the information provided by the board is not correct. Violators of this section shall be jointly and individually liable and responsible for violations and for damages resulting from their activities as contractors pursuant to this chapter. Violations of this subsection may result in a suspension or revocation of registration and/or fines not to exceed ten thousand dollars ($10,000). Furthermore, the director of the department of business regulation, or the director’s designee, shall require that all applicants for registration shall sign a statement that they are aware of this provision and its implications.
(m)
Upon receipt of notice of a final determination, after the exhaustion of all appeals, by the department of labor and training, consent agreement, or court order that a registered contractor violated any of the provisions of chapter 3 of title 25; chapter 3, 12, 14, 36, or 50 of title 28; or chapter 13 of title 37 and owes any wages, benefits, or other sums arising out of the violation, the board shall immediately suspend the registration of the contractor in accordance with this subsection. The suspension shall continue until all wages, benefits, or other sums owed have been paid or the contractor has entered into a written, binding agreement to pay the same acceptable to the department of labor and training and is not in default of payment under the agreement. If the contractor fails to remain current in payment under the agreement, the department of labor and training shall notify the board and the suspension shall be imposed or reinstated, as the case may be. The foregoing sanction is mandatory, but shall not be grounds for imposition of a monetary penalty under subsection (c) above.
(n)
When the registration of a contractor has been revoked or suspended, neither the contractor nor any successor entity or sole proprietorship that: (1) Has one or more of the same principals or officers as the partnership, limited partnership, limited-liability partnership, joint venture, limited-liability company, corporation, or sole proprietorship as the subject contractor; and (2) Is engaged in the same or equivalent trade or activity shall be qualified to register, apply, renew, or retain a registration as a contractor under this chapter, unless and until the board or office shall determine that the basis of the revocation or suspension has been satisfied or removed and that the registrant or applicant otherwise satisfies the requirements for registration under this chapter. Notwithstanding the foregoing, a natural person may obtain relief from the application and enforcement of this subsection as to him or her if he or she can establish that he or she was not responsible for, and did not acquiesce to, the misconduct that is the basis of the revocation, suspension, or denial of registration.
History of Section.
P.L. 1989, ch. 222, § 1; P.L. 1992, ch. 381, § 1; P.L. 1994, ch. 350, § 2; P.L. 1995, ch. 370, art. 40, § 34; P.L. 2001, ch. 323, § 1; P.L. 2003, ch. 282, § 1; P.L. 2006, ch. 648, § 1; P.L. 2007, ch. 228, § 2; P.L. 2008, ch. 364, § 1; P.L. 2012, ch. 293, § 1; P.L. 2012, ch. 348, § 1; P.L. 2019, ch. 88, art. 4, § 1; P.L. 2020, ch. 79, art. 2, § 2; P.L. 2022, ch. 251, § 1, effective June 28, 2022; P.L. 2022, ch. 252, § 1, effective June 28, 2022.