TIFFANY L. PARKS
Daily Reporter
Interested parties have continued to weigh in on a bill that would require statewide registration of home improvement contractors.
The House Commerce and Labor Committee was scheduled to vote this week on an amended version of the proposal, House Bill 77, but the bill’s sponsor, Rep. Bill Patmon, has not officially filed the substitute measure.
Steve Feldmann, the director of government affairs for the Homebuilders Association of Greater Cincinnati, offered the group’s take on the revised bill.
“Back in March, we were pleased to have Mike Hoffmaster, our president and owner of GreatWay Homes in Fairfield, Ohio, testify about our concerns with HB 77,” he said.
“After reviewing the substitute, most of these concerns remain. There will be a heavier regulatory burden on our members, with increased oversight from Columbus into their businesses.”
At the same time, Feldmann said the additional regulatory structure will not stop the “stormchasers.”
With regard to the substitute bill, Patmon has said home improvement retailers would not have to be registered but they would have to ensure that any of their contractors or subcontractors are registered.
Registration requirements would include having liability insurance or a surety bond of at least $250,000 and completing at least 10 hours of continuing education to get renewed annually.
The revised bill would not allow counties or municipal governments to regulate those with a registration and also outlines financial penalties for contractors.
In opposing both the original and revised versions of HB 77, Feldmann said the HBA is “respectfully proposing a solution that can be used by those contractors who are reputable and already conducting their business the right way.”
“As Mr. Hoffmaster stated in his March testimony, one of the foundational structures of our association is our ability to provide consumers with a point of reference when they hire a builder or remodeler,” he said.
“To be a builder or remodeler member of the HBA, one must go through a thorough vetting process. Not every HBA applicant is accepted and members can be dismissed.”
Feldmann said the organization’s solution is to permit contractors to opt-out of the state registration, if they belong to a trade association that has requirements comparable to those required in the substitute amendment, such as a defined grievance dispute resolution procedure administered by the association and a defined code of ethics.
“As an association, we would also provide the names of eligible contractors who are members of the association and report on those members who no longer meet the criteria,” he said.
“If a contractor does not belong to an association or no longer meets the opt-out criteria, then they would have to register with the state to continue operations.”
Feldmann said the HBA’s opt-out option would accomplish several objectives, including keeping consumer disputes at the local level.
“Consumers would air their grievances against a contractor through the trade association,” he said.
“It doesn’t add another regulatory burden on our reputable members. It decreases the workload of the state. It meets the standards established in the legislation. It ensures that businesses are not put at a competitive disadvantage if they are on the border with other states or have a permanent place of business in another state, as is often the case in southwestern Ohio.”
Shari Bates, the executive director of the central Ohio chapter of the National Association of the Remodeling Industry, said that while HB 77 is a “noble attempt” to provide consumer protection, “the end result for consumers is simply an increase in remodeling prices by those honest and ethical contractors who abide by the law.”
She went on to offer ideas that would bring “substance” to the proposed legislation.
“Non-profit industry trade association members of NARI, NAHB and Landscapers Association would be “grandfathered” in as registered contractors because of their affiliation with credible associations with codes of ethics and standards of practice,” she said.
Bates also suggested that NARI could provide industry education throughout the state as part of the registration requirement.
“An additional section (could) be added to the registration/consumer website that would list people/companies who have discussed remodeling with consumers who are not registered,” she said.
“We believe that this would be what we call ‘teeth’ for this bill.”