201 CMR, § 14.20 - Duties of Fund Administrator

(1) Notice to Contractor . No less than 30 days prior to the payment of a claim, and again when a claim has been paid, the Fund Administrator shall provide written notice to the contractor, or subcontractor, or their administrator, executor or personal representative, found responsible for the claim that such payment will be, or has been made. The notice shall be sent to the last known address of the contractor, or subcontractor by certified mail, return receipt requested, and shall include information about the contractor's or subcontractor's responsibility to reimburse the fund as well as any sanctions which may be imposed pursuant to M.G.L. c. 142A for non-payment. In the case of a deceased contractor, or subcontractor, notice shall be sent to the contractor, or subcontractor's administrator, executor, or personal representative.

(2) Fund Reimbursement. When a payment from the fund is awarded to an owner as a result of a claim against a registered contractor or subcontractor, the Fund Administrator shall, at his or her discretion:

(a) require the contractor or subcontractor to reimburse the fund in full within 30 days of notification that a claim has been paid; or

(b) initiate an agreement with the contractor, or subcontractor allowing said contractor, or subcontractor to reimburse the fund by installment, the frequency and amount of which shall be determined by the Fund Administrator.

(c)201 CMR 14.20 does not pertain to cases where the contractor filed for bankruptcy.

(3) Revocations of Registration for Non-reimbursement. If the contractor or subcontractor fails to reimburse the fund pursuant to 201 CMR 14.20(2), the Fund Administrator shall recommend that the contractor's, or subcontractor's registration be revoked pursuant to M.G.L. c. 142A, § 8 and 201 CMR 18.00: Registration and Enforcement of Home Improvement Contractor Program.

(4) Non-reimbursement-notification to the Attorney General. If the registrant does not reimburse the amount paid from the fund, plus interest, according to the terms as set forth by the Fund Administrator pursuant to 201 CMR 14.20(2), the Fund Administrator may notify the Attorney General who shall be authorized to initiate legal proceedings in superior court against said contractor or subcontractor for failure to reimburse the fund pursuant to M.G.L. c. 142A, § 8.

(5) Non-reimbursement-ineligibility of Contractor to Receive Registration. If a contractor's, or subcontractor's registration is revoked pursuant to M.G.L. c. 142A, § 15(b), the contractor, or subcontractor will not be eligible to receive a new or renewed registration or to operate under another registration until the entire amount of the claim, plus a reasonable amount of interest to be determined by the Fund Administrator, has been repaid to the fund in full, beginning from the time said claim was disbursed from the fund.

(6) Fund Administrator Reports. The Fund Administrator shall provide a written report to the director of OCABR on a semiannual basis relative to the fund. Said report shall: provide general information about the fund, including, but not limited, to investment and interest income, liquidity of funds, contractor contributions, claims and other disbursements paid from the fund relative to the health of the fund, and any recommendations pertaining to maintaining the solvency of the fund. Said report shall be made available to the general public upon request.

Notes

201 CMR, § 14.20

Amended by Mass Register Issue 1314, eff. 6/3/2016.