Just over two weeks ago, police across the state arrested six contractors on a variety of charges as part of an investigation conducted with the attorney general’s office. The charges – which ranged from not finishing jobs to doing shoddy work – were all misdemeanors.
But now, thanks to a new bill crafted by a special legislative commission, contractors who commit similar offenses in the future could be facing felony charges and stiffer fines.
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The committee – composed of consumers and public- and private-sector officials – met throughout the session, listening to feedback from people who felt that they had been conned by contractors. At its final meeting, last Monday, the committee proposed a bill to crack down on “rogue” behavior by contractors.
The measure, which Rep. Charlene Lima, D-Cranston, the commission chairwoman, said she’d introduce before the close of the legislative session, would allow the attorney general’s office to prosecute contractors with multiple violations as felons if they have at least three more violations on different properties within two years.
The bill would also increase the fines for unregistered contractors – there are believed to be more than 15,000 in the state – to a maximum of $5,000 for a first offense and $10,000 for a second offense. Under current law, the maximum fines are $500 and $1,000, respectively.
Felix Carlone, chairman of the R.I. Contractors’ Registration Board, said the stiffer penalties would help cut down on the number of unregistered contractors in Rhode Island.
“Word gets out there very quickly,” Carlone said. “All you have to do is whack a couple of these guys and the registrations are going to come pouring in. These guys are going to want to play roulette for that high a price. They’ll play if for $1,500 or $800, but they are not going to play it for 10 grand.”
The commission also voted to increase the amount of time during which a consumer can file a complaint against a contractor from one to two years, provided the customer notifies the contractor or the registration board within a year of the completed work. The measure is key to ensuring the public is protected, Lima said.
Throughout the public comment portion of the hearings, people who felt they were victimized by contractors often had no recourse because their work was completed before the one-year cutoff, she said.
“The consumer might not realize the problem in that year,” Lima said. “It may be a structural problem that doesn’t show up for a year and a half.”
The bill will also require homeowners to sign an affidavit stating they understand a lien could be placed on their home if a contractor doesn’t pay a subcontractor.
The commission, which has wrapped up its meetings for the session, will convene to discuss other issues in future sessions, including the issue of requiring all contractors to become licensed.
Roger Warren, executive director of the R.I. Builders Association and a member of the legislative commission, said his organization had supported increasing the penalties for unregistered and rogue contractors.
The contractors targeted by the legislation, Warren said, are the ones who can harm the industry’s reputation. However, because they are often unregistered and uninsured, they are often able to underbid by-the-books contractors and get more jobs, Warren said.
“Not only are they harming the public – they’re harming the industry as well,” he said.
