AN ACT RELATING TO BUSINESS AND PROFESSIONS -- CONTRACTORS' REGISTRATION AND LICENSING BOARD (Expands various definitions relative to contractors, home inspectors, and claim adjusters to provide clarity regarding licensed and unlicensed vendors, consultants, or third-party representatives.)

S2205

2026 -- S 2205
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LC003905
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO BUSINESS AND PROFESSIONS -- CONTRACTORS' REGISTRATION
AND LICENSING BOARD

Introduced By:
Senators Appollonio, Thompson, Britto, and Murray

Date Introduced:
January 23, 2026

Referred To:
Senate Commerce
It is enacted by the General Assembly as follows:
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SECTION 1. Section 5-65-1 of the General Laws in Chapter 5-65 entitled "Contractors’
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Registration and Licensing Board" is hereby amended to read as follows:
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5-65-1. Definitions.
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As used in this chapter:
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(1) “Appurtenances” means any accessory improvement to real estate associated with a
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primary structure.
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(2) “Board” means the contractors’ registration and licensing board established pursuant to
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the provisions of § 5-65-14 or its designees.
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(3) “Claim” means that portion of a complaint that pertains to the complainant’s assertion
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that they are entitled to monetary damages, an order for specific performance of work and/or other
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contractual or equitable relief or remedies on account of allegations or disputes between themself
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and a contractor or themself and a subcontractor.
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(4) “Claim for retainage” means an allegation that a person seeking payment of retainage
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breached the person’s contract for the project; provided, however, that a “claim” related to a project
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with a contract value of not less than two hundred fifty thousand dollars ($250,000) shall be subject
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to the applicable dispute resolution procedure, notice, and other requirements in the contract for
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construction.
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(5) “Complaint” means a written complaint submitted to the board or office with

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allegations against or disputes involving a contractor, which may contain a claim component and/or
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allegations that a contractor has violated provisions of this chapter or the regulations promulgated
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hereunder.
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(6) “Contract for construction” means a contract for which a lien may be established under
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chapter 28 of title 34 or for state or municipal public works projects as defined in title 37 on a
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project for which the person on whose contract with the project owner has an original contract price
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of not less than two hundred fifty thousand dollars ($250,000); provided, however, that “contract
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for construction” shall not include a project containing, or designed to contain, at least one, but not
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more than four (4), dwelling units.
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(7)(i) “Contractor” means a person who, in the pursuit of an independent business,
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undertakes or offers to undertake or submits a bid, or for compensation and with or without the
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intent to sell the structure constructs, alters, repairs, improves, moves over public highways, roads,
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or streets, or demolishes a structure or to perform any work in connection with the construction,
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alteration, repair, improvement, moving over public highways, roads, or streets, or demolition of a
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structure, and the appurtenances thereto. For the purposes of this chapter, “appurtenances” includes,
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but is not limited to, the installation, alteration, or repair of wells connected to a structure consistent
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with chapter 13.2 of title 46, garage, carport, porch, patio, decks, docks, sheds, tents, gazebos,
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walkways, fencing, driveways, retaining walls, swimming pools, sidewalks, stone/masonry walls,
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and parking lots.
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(ii) “Contractor” also means any person who performs services as an “insurance adjuster”
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as defined in § 27-10-1.1, and who evaluates, inspects, opines upon, or recommends the feasibility,
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method, scope, or cost of repair or replacement of a building component regulated under the state
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building code, for use in the investigation, negotiation, appraisal, or settlement of an insurance
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claim, shall be deemed to be engaging in contractor activity and must be properly registered under
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this chapter unless otherwise licensed.
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(ii)
(iii)
“Contractor” includes, but is not limited to, any person who purchases or owns
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property and constructs, or for compensation arranges for the construction of, one or more
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structures.
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(iii)
(iv)
A certificate of registration is necessary for each “business entity” regardless of the
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fact that each entity may be owned by the same individual.
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(8) “Deliverable” means a project close-out document that shall be submitted by the person
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seeking payment of retainage under the person’s contract for construction; provided, however, that
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a lien waiver or release, which is a deliverable, shall comply with chapter 28 of title 34; provided,
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further, that “deliverable” shall not include any document affirming, certifying, or confirming

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completion or correction of labor, materials, or other items furnished or incomplete or defective
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work.
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(9) “Dwelling unit” means a single unit providing complete independent-living facilities
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for one or more persons, including permanent provisions for living, sleeping, eating, cooking, and
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sanitation.
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(10) “Hearing officer” means a person designated by the director of the department of
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business regulation or the director’s designee to hear contested cases, contested enforcement
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proceedings, contested administrative fines, and to render decisions or orders in accordance with
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the “administrative procedures act,” chapter 35 of title 42.
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(11) “Incomplete or defective work” means labor, materials, or any other item required for
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full performance by a person seeking payment of retainage that remains to be furnished by the
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person under the person’s contract for construction or that has been furnished by the person but
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requires correction, repair, further completion, revision, or replacement; provided, however, that
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“incomplete or defective work” shall not include deliverables or labor, materials, or any other item
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to be repaired or replaced after substantial or final completion pursuant to a warranty, guarantee,
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or other contractual obligation to correct defective work after substantial or final completion.
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(12) “Monetary damages” means the dollar amount required in excess of the contract
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amount necessary to provide the claimant with what was agreed to be provided under the terms of
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the contract reduced by any amount due and unpaid to the respondent inclusive of any and all
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awards and restitution.
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(13) “Office” means the state building office established pursuant to § 5-84-3.1.
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(14) “Person” means any natural person, joint venture, partnership, corporation, or other
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business or legal entity who or that enters into a contract for construction.
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(15) “Prime contractor” means a person who or that enters into a contract for construction
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with the project owner.
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(16) “Retainage” means a portion or percentage of a payment due pursuant to a contract
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for construction that is withheld to ensure full performance of the contract for construction.
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(17) “Staff” means any staff necessary to carry out the powers, functions, and duties of the
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board, or the office, including inspectors, hearing officers, and other supportive staff.
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(18) “State” means the state of Rhode Island.
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(19) “Structure” means (i) Any commercial building; or (ii) Any building containing one
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or more residences and their appurtenances. The board’s dispute resolution process shall apply only
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to residential structures containing dwelling units, as defined in the state building code, or
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residential portions of other types of buildings without regard to how many units any structure may

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contain. The board retains jurisdiction and may conduct hearings regarding violations against all
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contractors required to be registered or licensed by the board.
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(20) “Substantial completion” means the stage in the progress of the project when the work
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required by the contract for construction with the project owner is sufficiently complete in
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accordance with the contract for construction so that the project owner may occupy or utilize the
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work for its intended use; provided, further, that “substantial completion” may apply to the entire
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project or a phase of the entire project if the contract for construction with the project owner
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expressly permits substantial completion to apply to defined phases of the project.
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(21) “Violation” means a violation of any provision of this chapter or the regulations
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promulgated hereunder or any order of the board or office.
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SECTION 2. Section 5-65.1-2 of the General Laws in Chapter 5-65.1 entitled "Home
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Inspectors" is hereby amended to read as follows:
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5-65.1-2. Definitions.
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When used in this chapter:
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(1) “Associate home inspector” means a person who is employed by a licensed home
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inspector to conduct a home inspection of a residential building on behalf of a client for a fee under
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the direct supervision of the licensed home inspector and is licensed pursuant to the provisions of
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this chapter.
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(2) “Board” means the contractors’ registration and licensing board.
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(3) “Client” means any person who engages, or seeks to engage, the services of a home
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inspector for the purpose of obtaining an inspection of, and written report upon, the condition of a
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residential building.
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(4) “Home inspection” means an inspection and a written evaluation of the following
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readily visible and accessible components of a residential building: heating, cooling, plumbing, and
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electrical systems, structural components, foundation, roof, masonry structure, exterior and interior
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components, and any other related residential housing components, unless the scope of the
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inspection is otherwise clearly limited, in writing, in the inspection report. Unless otherwise
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expressly agreed to, in writing, a home inspection shall be based solely on observation of the readily
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visible and apparent condition of the foregoing components of a residential building as they exist
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on the date of the inspection, and it is not the purpose of the inspection to identify violations of, or
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noncompliance with, governmental codes or regulation. A home inspection shall, at a minimum,
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conform to any standards of practice promulgated by the board.
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(5) “Home inspector” means any person licensed as a home inspector to conduct a home
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inspection of a residential building on behalf of a client for a fee pursuant to the provisions of this

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chapter.
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(i) “Home inspector” also means any person who performs an inspection of commercial
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and residential structures, roofing systems, or building envelopes in connection as an “insurance
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adjuster” as defined in § 27-10-1.1, for an insurer or any insurer-retained vendor, where the results
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are used in the investigation, negotiation, appraisal, or settlement of an insurance claim, shall be
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licensed as a home inspector under this chapter unless exempt under another professional licensure
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statute.
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(6) “Public body” or “agency” means any executive, legislative, judicial, regulatory, or
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administrative body of the state or any political subdivision thereof, including, but not limited to:
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public officials elected or appointed; any department, division, agency, commission, board, office,
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bureau, authority; any school, fire, or water district; or other agency or quasi-public agency of state
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or local government that exercises governmental functions.
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(7) “Residential building” means a structure consisting of one or more residences and their
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appurtenances.
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SECTION 3. Section 27-10-1.1 of the General Laws in Chapter 27-10 entitled "Claim
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Adjusters" is hereby amended to read as follows:
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27-10-1.1. Definitions.
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(a) “Adjuster” means an individual licensed as either a public, company, or independent
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adjuster.
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(b) “Catastrophic disaster” according to the Federal Response Plan, means an event that
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results in large numbers of deaths and injuries; causes extensive damage or destruction of facilities
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that provide and sustain human needs; produces an overwhelming demand on state and local
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response resources and mechanisms; causes a severe long-term effect on general economic activity;
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and severely affects state, local, and private sector capabilities to begin and sustain response
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activities. A catastrophic disaster shall be declared by the President of the United States, the
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governor of the state, or the insurance commissioner.
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(c) “Company adjuster” means a person who:
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(1) Is an individual who contracts for compensation with insurers or self-insurers as an
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employee; and
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(2) Investigates, negotiates, or settles property, casualty, or workers’ compensation claims
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for insurers or for self-insurers as an employee.
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(d) “Department” means the insurance division of the department of business regulation.
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(e) “Home state” means the District of Columbia and any state or territory of the United
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States in which the adjuster’s principal place of residence or principal place of business is located.

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If neither the state in which the independent or company adjuster maintains the principal place of
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residence, nor the state in which the adjuster maintains the principal place of business, has a
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substantially similar law governing adjusters, the adjuster may declare another state in which it
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becomes licensed and acts as an independent or company adjuster to be the “home state.”
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(f) “Independent adjuster” means a person who:
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(1) Is an individual who contracts for compensation with insurers or self-insurers as an
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independent contractor; or
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(2) Investigates, negotiates, or settles property, casualty, or workers’ compensation claims
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for insurers or for self-insurers as an independent contractor.
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(g) “Insurance adjuster” means a person who:
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(1) On behalf of an insurer or any person or entity acting for or retained by an insurer,
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investigates, inspects, evaluates, measures, documents, reports upon, or provides opinions
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regarding damage, causation, scope of loss, repairability, replacement, or valuation of property,
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when such activity is undertaken in connection with the investigation, negotiation, appraisal, or
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settlement of an insurance claim.
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(2) The term “insurance adjuster” shall apply regardless of the title, designation, or
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description used by the person performing such services including, but not limited to, inspector,
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consultant, field representative, building consultant, or appraiser, and regardless of whether such
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services are performed directly for the insurer or indirectly through a vendor, contractor, or other
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third party.
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(3) Any person performing the activities described in this subsection without holding a
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license issued pursuant to this chapter shall be deemed to be acting as an unlicensed insurance
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adjuster.
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(g)
(h)
“Insurance commissioner” means the director of the department of business
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regulation or the director’s designee.
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(h)
(i)
“NAIC” means the National Association of Insurance Commissioners.
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(i)
(j)
“Public adjuster” means any person who, for compensation or any other thing of value
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on behalf of the insured:
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(1) Acts or aids, solely in relation to first-party claims arising under insurance contracts
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that insure the real or personal property of the insured, other than automobile, on behalf of an
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insured in negotiating for, or effecting the settlement of, a claim for loss or damage covered by an
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insurance contract;
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(2) Advertises for employment as a public adjuster of insurance claims or solicits business
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or represents themself to the public as a public adjuster of first-party insurance claims for losses or

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damages arising out of policies of insurance that insure real or personal property; or
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(3) Directly or indirectly solicits business, investigates or adjusts losses, or advises an
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insured about first-party claims for losses or damages arising out of policies of insurance that insure
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real or personal property for another person engaged in the business of adjusting losses or damages
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covered by an insurance policy, for the insured.
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(j)
(k)
“Uniform individual application” means the current version of the National
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Association of Insurance Commissioners (NAIC) Uniform Individual Application for resident and
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nonresident individuals.
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SECTION 4. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO BUSINESS AND PROFESSIONS -- CONTRACTORS' REGISTRATION
AND LICENSING BOARD
***
1
This act would expand various definitions relative to contractors, home inspectors, and
2
claim adjusters to provide clarity regarding licensed and unlicensed vendors, consultants, or third-
3
party representatives.
4
This act would take effect upon passage.
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LC003905
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