Enforcement Action

(1) Administrative Penalties. If the director determines that any registrant or contractor required to be registered is liable for a violation of any of the provisions of 201 CMR 18.00 or M.G.L. c. 142A, the director may: (a) suspend the registrant's certificate of registration for such period of time as shall be determined by the director; (b) revoke the registrant's certificate of registration; (c) send a letter of reprimand to the registrant; or (d) assess an administrative penalty not to exceed $2,000, payable within 30 days of the date of the order of assessment, for each violation of any provisions of 201 CMR 18.00 and/or M.G.L. c. 142A committed by the home improvement contractor(s) or subcontractor(s) who are registered or required to be registered under 201 CMR 18.00. This penalty shall be deposited to the fund. (2) Pendency of a Claim. The pendency of a claim against the fund shall not limit the director from taking enforcement action against any registrant pursuant to 201 CMR 18.00 or M.G.L c. 142A. (3) Fines and Criminal Penalties - Attorney General or District Attorney. (a) Sought by Attorney General or District Attorney. Fines and imprisonment specified in 201 CMR 18.00 and M.G.L. c. 142A may be sought by the attorney general or a district attorney, and such fines and imprisonment shall be in addition to any administrative penalty otherwise applicable thereto. (b) Operating without a Certificate. Any home improvement contractor or subcontractor who shall knowingly, willfully, or negligently operate without obtaining a certificate of registration as required by 201 CMR 18.00 and M.G.L. c. 142A or any home improvement contractor or subcontractor who continues to operate after revocation of or during suspension of their certificate of registration, or who had failed to renew their certificate of registration, shall be punished by a fine of up to $5,000 or imprisonment in a jail or house of correction for not more than two years or by both such fine and imprisonment. (c) Other Violations. Any person who knowingly and willfully violates any of the provisions of 201 CMR 18.00 or M.G.L. c. 142A with respect to which a greater penalty is not otherwise provided by the provisions of 201 CMR 18.00 or M.G.L. c. 142A or by any other law may be punished by a fine of up to $2,000 or by imprisonment in a jail or house of correction for not more than one year or by both such fine and imprisonment. (4) Injunctions, Restitution. (a) Order from Superior Court. If the director concludes that the continuing conduct of any person alleged to be in violation of 201 CMR 18.00 and M.G.L. c. 142A may result in substantial or irreparable harm to any citizen of the Commonwealth, the director may seek: 1. a permanent or temporary injunction with respect to the conduct from the superior court of any county in which the alleged violation is occurring, or in which the violator has its principal place of business; or 2. an order requiring restitution or satisfactory completion of the home improvement contractor's contract with an owner. (b) Bond Not Required. The director shall not be required to file a bond or to show a lack of an adequate remedy at law when seeking an injunction under M.G.L. c. 142A against any person, association, partnership, or corporation not registered under 201 CMR 18.00 and M.G.L. c. 142A. (5) Permit Requirements and Prohibited Acts. (a) Permit Requirements. All building permits for residential contracting work covered by 201 CMR 18.00 and M.G.L. c. 142A shall: 1. clearly state that persons contracting with unregistered contractors do not have access to the guaranty fund; and 2. contain the registered home improvement contractors or subcontractors certificate number. (b) Prohibited Acts. The following acts are prohibited by registered home improvement contractors or subcontractors, and those required to register under the provisions of 201 CMR 18.00 and M.G.L. c. 142A: 1. operating without a certificate of registration issued by the director; 2. abandoning or failing to perform, without justification, any contract or project engaged in or undertaken, or deviating from or disregarding plans or specifications in any material way without the consent of the owner, except for changes in plans, specifications, or construction techniques required by building regulations; 3. failing to credit the owner any payment they have made to the contractor or their salesperson in connection with a residential contracting transaction; 4. making any material misrepresentation in the procurement of a contract or making any false promise of a character likely to influence, persuade, or induce the procurement of a contract; 5. knowingly contracting beyond the scope of the registration as a contractor or subcontractor; 6. acting directly, regardless of the receipt or expectation of receipt of compensation or gain from the mortgage lender, in connection with a residential contracting transaction by preparing, offering or negotiating or attempting to or agreeing to prepare, arrange, offer or negotiate a mortgage loan on behalf of a mortgage lender; 7. acting as a mortgage broker or agent for any mortgage lender; 8. publishing, directly or indirectly, any advertisement relating to residential contracting which does not contain the home improvement contractor's or subcontractor's certificate of registration number or which does contain an assertion, representation or statement of fact which is false, deceptive, or misleading; 9. advertising in any manner that a registrant is registered under 201 CMR 18.00 unless the advertisement includes an accurate reference to the home improvement contractor's or subcontractor's certificate of registration; 10. violating any of the building laws of the Commonwealth or of any political subdivision thereof; 11. misrepresenting a material fact by an applicant in obtaining a certificate of registration; 12. failing to notify the director of any change of trade name or address as required by 201 CMR 18.02(9)(e)1.; 13. conducting a residential contracting business in any name other than the one in which the home improvement contractor or subcontractor is registered; 14. failing to pay for materials or services rendered in connection with their operating as a home improvement contractor or subcontractor where the contractor or subcontractor has received sufficient funds as payment for the particular construction work, project or operation for which the services or materials were rendered or purchased; 15. failing to comply with any order, demand or requirement lawfully made by the director or fund administrator under and within the authority of 201 CMR 18.00 and M.G.L. c. 142A; 16. demanding or receiving payment in violation of M.G.L. c. 142A, § 2(a)(6); 17. violating any other provisions of 201 CMR 18.00 and M.G.L. c. 142A; 18. failing to pay to the Guaranty Fund in full, including interest, any amount paid from said fund because of the conduct of the registrant; 19. performing any act considered grounds for refusal to register or renew in 201 CMR 18.02(5); 20. failing to display the registration number on every contract, building permit and advertisement as required by 201 CMR 18.04(5)(a)2., 18.04(5)(b)8. and 9., and 18.05(2)(a)2.; 21. failure to cooperate with OCABR, including but not limited to failing to appear at an adjudicatory hearing; 22. engaging in gross fraud or cheat pursuant to M.G.L. c. 266, § 76; and 23. having a license, certificate, registration or authority issued by another state or territory of the United States, the District of Columbia or a foreign state or nation with authority to issue such a license, certificate, registration or authority revoked, cancelled, suspended, not renewed or otherwise acted against, or if the holder has been disciplined, if the basis for the action would constitute a basis for disciplinary action in the Commonwealth. (c) Penalties. Violations of 201 CMR 18.00 or M.G.L. c. 142A shall subject the violator, to the administrative sanctions of 201 CMR 18.04(1) and to criminal prosecution or other court action as prescribed in 201 CMR 18.04(3) and (4). (d) Deceptive Act. Violations of any of the provisions of 201 CMR 18.00 and M.G.L. c. 142A shall constitute an unfair or deceptive act under the provisions of M.G.L. c. 93A