As Reported by the Senate Insurance, Commerce and Labor Committee

127th General Assembly Regular Session 2007-2008

Sub. H. B. No. 444

Representative Stewart, J. 

Cosponsors: Representatives Szollosi, Luckie, Bolon, Book, Boyd, Brady, Brown, Budish, Celeste, Chandler, DeBose, Domenick, Driehaus, Dyer, Evans, Fende, Foley, Garrison, Gerberry, Goyal, Harwood, Heard, Koziura, Letson, Lundy, McGregor, J., Newcomb, Okey, Patton, Sayre, Slesnick, Stewart, D., Ujvagi, Williams, B., Williams, S., Yuko 

Senator Miller, D. 

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A BILL

To amend sections 3781.111, 4517.21, 4740.01,

1

4740.02, 4740.04, and 4740.07 and to enact

2

section 4740.16 of the Revised Code to make

3

changes to the construction industry licensing

4

laws, to discipline unlicensed contractors,

5

eliminate unlicensed contractor activity, to

6

provide that an insurer or subrogee may sell

7

through a licensed motor vehicle auction owner a

8

motor vehicle that comes into its possession

9

through the operation of an insurance contract,

10

and to require the Ohio Civil Rights Commission

11

to deem that specified persons involved with the

12

construction of a building have complied with

13

the Americans with Disabilities Act if the owner

14

of that building obtained a proper building

15

permit.

16

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 3781.111, 4517.21, 4740.01, 4740.02,	17
4740.04, and 4740.07 be amended and section 4740.16 of the	18
Revised Code be enacted to read as follows:	19

Sec. 3781.111.  (A) In addition to the powers conferred by	20
any other section of the Revised Code, the board of building	21
standards shall adopt standards and rules to facilitate the	22
reasonable access and use by all persons with a disability of all	23
buildings and the facilities of buildings for which plans are	24
submitted for approval under section 3791.04 of the Revised Code.	25
No standard or rule shall be applied to any building the plans or	26
drawings, specifications, and date of which have been approved	27
prior to the time that the standard or rule takes effect.	28

(B)(1) Except as otherwise provided in this section, the	29
standards and rules adopted by the board pursuant to this section	30
shall be in accordance with the "Americans with Disabilities Act	31
of 1990," 104 Stat. 327, 42 U.S.C.A. 12101, as amended, and the	32
"Fair Housing Amendments Act of 1988," 102 Stat. 1619, 42 U.S.C.A.	33
3601, as amended.	34

(2) If the owner of a building obtains a license to commence	35
construction of that building as required under section 3791.04 of	36
the Revised Code, for purposes of enforcement by the Ohio civil	37
rights commission, the following persons who prepared the plans,	38
drawings, specifications, or data submitted to obtain that	39
license, are deemed to have complied with the "Americans with	40
Disabilities Act of 1990," 104 Stat., 42 U.S.C. 12101:	41

(a) The owner;

42

(b) An architect registered under Chapter 4703. of the	43
Revised Code;	44

(c) A professional engineer registered under Chapter 4733. of	45
the Revised Code;	46

(d) Persons other than registered architects or registered	47
engineers who are permitted, pursuant to sections 3791.04,	48
4703.18, and 4733.18 of the Revised Code, to submit such plans,	49
drawings, specifications, or data.	50

(C) All signs posted to designate special parking locations	51
for persons with a disability and persons with disabilities that	52
limit or impair the ability to walk in accordance with division	53
(E) of section 4511.69 of the Revised Code and the standards and	54
rules adopted pursuant to this section shall be mounted on a fixed	55
or movable post or otherwise affixed in a vertical position at a	56
height so that the sign is clearly visible to the driver of a	57
vehicle when parked in such a location. If a new sign or a	58
replacement sign designating a special parking location is posted	59
on or after the effective date of this amendmentOctober14, 1999,	60
there also shall be affixed upon the surface of that sign or	61
affixed next to the designating sign a notice that states the fine	62
applicable for the offense of parking a motor vehicle in the	63
special designated parking location if the motor vehicle is not	64
legally entitled to be parked in that location.	65

(D) As used in this section, "disability" has the same	66
meaning as in section 4112.01 of the Revised Code. As used in	67
division (C) of this section, "persons with disabilities that	68
limit or impair the ability to walk" has the same meaning as in	69
division (A)(1) of section 4503.44 of the Revised Code.	70

(E) No owner of a building or facility where special parking	71
locations for persons with a disability must be designated in	72
accordance with the standards and rules adopted pursuant to this	73
section shall fail to properly mark the special parking locations	74
as required by those standards and rules or fail to maintain the	75
markings of the special parking locations, including the erection	76
and maintenance of the fixed or movable signs.	77

Sec. 4517.21.  (A) No motor vehicle auction owner licensed	78
under Chapter 4517. of the Revised Code shall:	79

(1) Engage in the sale of motor vehicles at retail from the	80
same licensed location;	81

(2) Knowingly permit the auctioning of a motor vehicle if the	82
motor vehicle auction owner has reasonable cause to believe it is	83
not being offered for sale by the legal owner of the motor	84
vehicle;	85

(3) Knowingly permit the sale of a motor vehicle to any	86
person except the following:	87

(a) A motor vehicle dealer licensed in this state or any	88
other jurisdiction, or any other person licensed pursuant to	89
Chapter 4517. of the Revised Code or a substantially similar	90
statute of any other jurisdiction;	91

(b) A person who purchases a motor vehicle from a licensed	92
motor vehicle dealer at an auction of motor vehicles conducted at	93
the licensed motor vehicle dealer's place of business in	94
accordance with division (B) of this section;	95

(c) A person who purchases a classic motor vehicle, as	96
defined in section 4517.021 of the Revised Code, at an auction	97
conducted at the established place of business of a licensed motor	98
vehicle auction owner where only classic motor vehicles are being	99
auctioned.	100

(4) Knowingly permit the sale of a motor vehicle by any	101
person who is not licensed pursuant to Chapter 4517. of the	102
Revised Code, except by insurers and subrogees selling only those	103
motor vehicles that have come into their possession through	104
the operation of the terms of an insurance contract;	105

(5) Knowingly permit any person to violate section 4517.19 of	106
the Revised Code;	107

(6) Deny reasonable inspection of the motor vehicle auction	108
owner's business records, relating to the sale of motor vehicles,	109
to the registrar of motor vehicles or the attorney general, when	110
requested in writing to do so. The motor vehicle auction owner	111
shall maintain for a period of six years from the date of the sale	112
of a motor vehicle at least the following information:	113

(a) The year, make, model and vehicle identification number	114
of the motor vehicle;	115

(b) The name and address of the selling dealer;

116

(c) The name and address of the buying dealer;

117

(d) The date of the sale;

118

(e) The purchase price;

119

(f) The odometer reading of the motor vehicle at the time of	120
sale and an odometer disclosure statement from the seller that	121
complies with subchapter IV of the "Motor Vehicle Information and	122
Cost Savings Act," 86 Stat. 961 (1972), 15 U.S.C. 1981.	123

A motor vehicle auction owner may supplement the required	124
information with any additional information the motor vehicle	125
auction owner considers appropriate.	126

(7) Knowingly permit a dealer whose license has been	127
suspended or revoked, or a person whose application for a license	128
to operate as a dealer has been denied, to participate as a buyer	129
or seller at the motor vehicle auction owner's auction after	130
notification by the registrar of the suspension or revocation of a	131
license, or denial of an application for a license. The registrar	132
shall notify each auction owner by certified mail, return receipt	133
requested, within five business days of the suspension or	134
revocation of a license, or the denial of an application for	135
license. Any motor vehicle auction owner who has knowledge of the	136
presence at the motor vehicle auction owner's auction of a dealer	137
whose license has been suspended or revoked, or of a person whose	138
application for a license to operate as a dealer has been denied,	139
shall immediately cause the removal of the person from the	140
auction.	141

(8) Knowingly accept a motor vehicle for sale or possible	142
sale by a dealer whose license has been suspended or revoked,	143
during the period of suspension or revocation, or by a person	144
whose application for a license to operate as a dealer has been	145
denied, after notification by the registrar, in accordance with	146
division (G) of this section, of the suspension or revocation of	147
the license, or denial of an application for a license.	148

(9) Knowingly permit the auctioning of a motor vehicle whose	149
ownership is not evidenced at the time of auctioning by a current	150
certificate of title or a manufacturer's certificate of origin,	151
and all title assignments that evidence the seller's ownership of	152
the motor vehicle, without first giving clear and unequivocal	153
notice of the lack of such evidence.	154

(B) Notwithstanding any provision of Chapter 4517. of the	155
Revised Code to the contrary, a licensed motor vehicle auction	156
owner, in addition to engaging in the business of auctioning motor	157
vehicles at the auction owner's established place of business, may	158
engage in the business of auctioning a licensed motor vehicle	159
dealer's motor vehicles at that licensed motor vehicle dealer's	160
established place of business, provided such dealer's place of	161
business is not owned, operated, or in any way managed by a motor	162
vehicle auction owner or subsidiary. The motor vehicle auction	163
owner is not required to obtain an additional license for each	164
dealer's premises at which the motor vehicle auction owner is	165
engaging in the business of auctioning motor vehicles, regardless	166
of whether the dealer's premises are located in another county,	167
but the motor vehicle auction owner is required to have a	168
certified copy of the auction owner's license available for	169
inspection when the auction owner is engaging in the business of	170
auctioning motor vehicles at an established place of business of a	171
licensed motor vehicle dealer.	172

(C) Whoever violates this section is guilty of a misdemeanor	173
of the fourth degree.	174

Sec. 4740.01.  As used in this chapter:

175

(A) "License" means a license the Ohio construction industry	176
licensing board issues to an individual as a heating, ventilating,	177
and air conditioning contractor, refrigeration contractor,	178
electrical contractor, plumbing contractor, or hydronics	179
contractor.	180

(B) "Contractor" means any individual or business entity that	181
satisfies both of the following:	182

(1) For compensation, directsDirects, supervises, or has	183
responsibility for the means, method, and manner of construction,	184
improvement, renovation, repair, or maintenance on a construction	185
project with respect to one or more trades and who offers,	186
identifies, advertises, or otherwise holds out or represents that	187
the individual or business entity is permitted or qualified to	188
perform, direct, supervise, or have responsibility for the means,	189
method, and manner of construction, improvement, renovation,	190
repair, or maintenance with respect to one or more trades on a	191
construction project;	192

(2) Performs or employshas employees who are tradespersons	193
who perform construction, improvement, renovation, repair, or	194
maintenance on a construction project with respect to the	195
contractor's trades.	196

(C) "Licensed trade" means a trade performed by a heating,	197
ventilating, and air conditioning contractor, a refrigeration	198
contractor, an electrical contractor, a plumbing contractor, or a	199
hydronics contractor.	200

(D) "Tradesperson" means an individual employed by a	201
contractor who engages in construction, improvement, renovation,	202
repair, or maintenance of buildings or structures without assuming	203
responsibility for the means, method, or manner of that	204
construction, improvement, renovation, repair, or maintenance.	205

(E) "Construction project" means a construction project	206
involving a building or structure subject to Chapter 3781. of the	207
Revised Code and the rules adopted under that chapter, but not an	208
industrialized unit or a residential building as defined in	209
section 3781.06 of the Revised Code.	210

Sec. 4740.02.  (A) There is hereby created within the	211
department of commerce, the Ohio construction industry licensing	212
board, consisting of seventeen residents of this state. The board	213
shall have an administrative section, a plumbing and hydronics	214
section, an electrical section, and a heating, ventilating, air	215
conditioning, and refrigeration section. The director of commerce	216
shall appoint all members of the board. The director or the	217
director's designee shall serve as a member of the administrative	218
section and the director shall appoint to the section to represent	219
the public, one member who is not a member of any group certified	220
by any section of the board. Each section, other than the	221
administrative section, shall annually elect a member of its	222
section to serve a one-year term on the administrative section.	223

(B) The plumbing and hydronics section consists of five	224
members, one of whom is a plumbing inspector employed by the	225
department of commerce, a municipal corporation, or a health	226
district, two of whom are plumbing contractors who have no	227
affiliation with any union representing plumbers, and two of whom	228
are plumbing contractors who are signatories to agreements with	229
unions representing plumbers.	230

The plumbing and hydronics section has primary responsibility	231
for the licensure of plumbing contractors and hydronics	232
contractors.	233

(C) The electrical section consists of five members, one of	234
whom is an electrical inspector employed by the department of	235
commerce, a municipal corporation, or a county, two of whom are	236
electrical contractors who have no affiliation with any union	237
representing electricians, and two of whom are electrical	238
contractors who are signatories to agreements with unions	239
representing electricians.	240

The electrical section has primary responsibility for the	241
licensure of electrical contractors.	242

(D) The heating, ventilating, air conditioning, and	243
refrigeration section consists of five members, one of whom is a	244
heating, ventilating, air conditioning, and refrigeration	245
inspector employed by either the department of commerce or a	246
municipal corporation; two of whom are heating, ventilating, and	247
air conditioning contractors or refrigeration contractors who have	248
no affiliation with any union representing heating, ventilating,	249
and air conditioning tradespersons or refrigeration tradespersons;	250
and two of whom are heating, ventilating, and air conditioning	251
contractors or refrigeration contractors who are signatories to	252
agreements with unions representing heating, ventilating, and air	253
conditioning tradespersons or refrigeration tradespersons.	254

The heating, ventilating, air conditioning, and refrigeration	255
section has primary responsibility for the licensure of heating,	256
ventilating, and air conditioning contractors and refrigeration	257
contractors.	258

(E) Within ninety days after July 31, 1992, initial	259
appointments shall be made to the board. Of the initial	260
appointments to the board, two appointments in each section, other	261
than the administrative section, are for terms ending one year	262
after July 31, 1992, and two are for terms ending two years after	263
July 31, 1992. All other appointments to the board are for terms	264
ending three years after July 31, 1992. Thereafter, terms of	265
office are for three years, each term ending on the same day of	266
the same month of the year as did the term that it succeeds. Each	267
member shall hold office from the date of appointment until the	268
end of the term for which the member was appointed. Members may be	269
reappointed. Vacancies shall be filled in the manner provided for	270
original appointments. Any member appointed to fill a vacancy	271
occurring prior to the expiration of the term for which the	272
member's predecessor was appointed shall hold office as a member	273
for the remainder of that term. A member shall continue in office	274
subsequent to the expiration of a term until a successor takes	275
office or until a period of sixty days has elapsed, whichever	276
occurs first.	277

(F) Before entering upon the discharge of official duties,	278
each member shall take, and file with the secretary of state, the	279
oath of office required by Section 7 of Article XV, Ohio	280
Constitution.	281

(G) Each member, except for the director or the director's	282
designee, shall receive a per diem amount fixed pursuant to	283
section 124.15 of the Revised Code when actually attending to	284
matters of the board and for the time spent in necessary travel,	285
and all actual and necessary expenses incurred in the discharge of	286
official duties.	287

(H) The director of commerce may remove any member of the	288
board the director appoints for malfeasance, misfeasance, or	289
nonfeasance.	290

(I) Membership on the board and holding any office of the	291
board does not constitute holding a public office or employment	292
within the meaning of any section of the Revised Code, or an	293
interest, either direct or indirect, in a contract or expenditure	294
of money by the state or any municipal corporation, township,	295
special district, school district, county, or other political	296
subdivision. No member or officer of the board is disqualified	297
from holding any public office or employment nor shall the officer	298
or member forfeit any public office or employment by reason of	299
holding a position as an officer or member of the board.	300

(J) The board, and each section of the board, shall meet only	301
after adequate advance notice of the meeting has been given to	302
each member of the board or section, as appropriate.	303

Sec. 4740.04.  The administrative section of the Ohio	304
construction industry licensing board is responsible for the	305
administration of this chapter and shall do all of the following:	306

(A) Schedule the contractor examinations each of the other	307
sections of the board directs. Each type of examination shall be	308
held at least four times per year.	309

(B) Select and contract with one or more persons to do all of	310
the following relative to the examinations:	311

(1) Prepare, administer, score, and maintain the	312
confidentiality of the examinations;	313

(2) Be responsible for all the expenses required to fulfill	314
division (B)(1) of this section;	315

(3) Charge an applicant a fee in an amount the	316
administrative section of the board authorizes for administering	317
the examination;	318

(4) Design the examination for each type of contractor to	319
determine an applicant's competence to perform that type of	320
contracting.	321

(C) Issue and renew licenses as follows:

322

(1) Issue a license to any individual who the appropriate	323
section of the board determines is qualified pursuant to section	324
4740.06 of the Revised Code to hold a license and has attained,	325
within the twelve months preceding the individual's application	326
for licensure, a score on the examination that the appropriate	327
section authorizes for the licensed trade.	328

(a) Each license shall include a license number and an	329
expiration date.	330

(b) Each license issued to an individual who holds more than	331
one valid license shall contain the same license number and	332
expiration date as the original license issued to that individual.	333

(2) Renew licenses for individuals who meet the renewal	334
requirements of section 4740.06 of the Revised Code.	335

(D) Make an annual written report to the director of commerce	336
on proceedings had by or before the board for the previous year	337
and make an annual statement of all money received and expended by	338
the board during the year;	339

(E) Keep a record containing the name, address, the date on	340
which the board issues or renews a license to, and the license	341
number of, every heating, ventilating, and air conditioning	342
contractor, refrigeration contractor, electrical contractor,	343
plumbing contractor, and hydronics contractor issued a license	344
pursuant to this chapter;	345

(F) Regulate a contractor's use and display of a license	346
issued pursuant to this chapter and of any information contained	347
in that license;	348

(G) Adopt rules in accordance with Chapter 119. of the	349
Revised Code as necessary to properly discharge the administrative	350
section's duties under this chapter. The rules shall include, but	351
not be limited to, the following:	352

(1) Application procedures for examinations;

353

(2) Specifications for continuing education requirements for	354
license renewal that address all of the following:	355

(a) A requirement that an individual who holds any number of	356
valid and unexpired licenses accrue a total of ten hours of	357
continuing education courses per year;	358

(b) Fees the board charges to persons who provide continuing	359
education courses, in an amount of twenty-five dollars annually	360
for each person approved to provide courses, not more than ten	361
dollars plus one dollar per credit hour for each course offered,	362
and one dollar per credit hour of instruction per attendee;	363

(c) A provision limiting approval of continuing education	364
courses to one year.	365

(3) Requirements for criminal records checks of applicants	366
under section 4776.03 of the Revised Code.	367

(H) Adopt any continuing education curriculum as the other	368
sections of the board establish or approve pursuant to division	369
(C) of section 4740.05 of the Revised Code;	370

(I) Keep a record of its proceedings and do all things	371
necessary to carry out this chapter.	372

Sec. 4740.07.  (A) Except as otherwise provided in this	373
section, the administrative section of the Ohio construction	374
industry licensing board shall issue and renew all licenses under	375
this chapter in the name of the individual who meets the	376
requirements of section 4740.06 of the Revised Code.	377

(B) AnyAn individual mayshall request, at the time of	378
applying for a license or at any time thereafter, that the	379
individual's license be assigned to aone business entity with	380
whom the individual is associated as a full-time officer,	381
proprietor, partner, or employee. If the individual is issued or	382
holds a license and meets the requirements of this section for the	383
assignment of the license to a business entity, the	384
administrative section shall assign the license to and issue a	385
license in the name of the business entity. The license assigned	386
and issued to a business entity under this division shall state	387
the name and position of the individual who assigned the license	388
to the business entity.	389

(C) During the period a business entity holds a license	390
issued under division (B) of this section, the administrative	391
section shall not issue another license to the individual who	392
assigned the license to the business entity for the same type of	393
contracting for which the business entity utilizes the assigned	394
license.	395

(D)(1) If an individual who assigned a license to a business	396
entity ceases to be associated, for any reason, with the business	397
entity for any reason, including the death of the individualto	398
whom the individual's license had been assigned, the individual or	399
business entity immediately shall notify the appropriate section	400
of the board of the date on which the individual ceased to be	401
associated with the business entity. A license assigned to a	402
business entity is invalid ninety calendar days after the date on	403
which the individual who assigned the license ceases to be	404
associated with the business entity or at an earlier time to which	405
the business entity and the individual agree.	406

(2) If a license assigned to a business entity becomes	407
invalid pursuant to division (D)(1) of this section, an individual	408
shall do one of the following:	409

(a) At least ninety days before the date the license	410
assigned to the business entity becomes invalid, or, if the	411
business entity and the individual agree to an invalidation date	412
that is prior to the expiration of that ninety-day period as	413
permitted under division (D)(1) of this section, on that	414
invalidation date, request the appropriate section of the board	415
to reassign the individual's license to a business entity with	416
whom the individual is associated as described in division (B) of	417
this section;	418

(b) If the individual is not associated with a business	419
entity as described in division (B) of this section on the date	420
the license assigned to the business entity becomes invalid,	421
request that the appropriate section of the board place the	422
individual's license in escrow until the date the individual	423
requests the appropriate section of the board to assign the	424
license to another business entity with whom the individual is	425
associated as described in division (B) of this section.	426

(3) If a license assigned to a business entity becomes	427
invalid pursuant to division (D)(1) of this section and another	428
individual has assigned a license to the business entity for the	429
same type of contracting for which the invalidated license had	430
been assigned, the business entity may continue to operate under	431
the other assigned license.	432

(E) Any work a business entity conducts under a license	433
assigned under this section is deemed to be conducted under the	434
personal supervision of the individual named in the license and	435
any violation of any term of the license is deemed to have been	436
committed by the individual named in the license.	437

For the period of time during which more than one license for	438
the same type of contracting is assigned to a business entity, any	439
work the business entity conducts under any of those licenses is	440
deemed to be conducted under the personal supervision of the	441
individuals named in those licenses and any violation of any term	442
of any license is deemed to have been committed by the individuals	443
named in all of the licenses.	444

(F) No individual who assigns a license to a business entity	445
shall assign a license for the same type of contracting to another	446
business entity until the original license assigned is invalid	447
pursuant to division (D)(1) of this section.	448

(G) Any individual who assigns a license to a business entity	449
under this section shall be actively engaged in business as the	450
type of contractor for which the license is issued and be readily	451
available for consultation with the business entity to which the	452
license is assigned.	453

(H) No license assigned under this section shall be assigned	454
to more than one business entity at a time.	455

Sec. 4740.16. (A) The appropriate section of the Ohio	456
construction industry licensing board may investigate any person	457
who allegedly has violated section 4740.13 of the Revised Code.	458
If, after an investigation pursuant to section 4740.05 of the	459
Revised Code, the appropriate section determines that reasonable	460
evidence exists that a person has violated section 4740.13 of the	461
Revised Code, within seven days after that determination, the	462
appropriate section shall send a written notice to that person in	463
the same manner as prescribed in section 119.07 of the Revised	464
Code for licensees, except that the notice shall specify that a	465
hearing will be held and specify the date, time, and place of the	466
hearing.	467

(B) The appropriate section shall hold a hearing regarding	468
the alleged violation in the same manner prescribed for an	469
adjudication hearing under section 119.09 of the Revised Code. If	470
the appropriate section, after the hearing, determines a violation	471
has occurred, the appropriate section may impose a fine on the	472
person, not exceeding one thousand dollars per violation per day.	473
The appropriate section's determination is an order that the	474
person may appeal in accordance with section 119.12 of the Revised	475
Code.	476

(C) If the person who allegedly committed a violation of	477
section 4740.13 of the Revised Code fails to appear for a hearing,	478
the appropriate section may request the court of common pleas of	479
the county where the alleged violation occurred to compel the	480
person to appear before the appropriate section for a hearing.	481

(D) If the appropriate section assesses a person a civil	482
penalty for a violation of section 4740.13 of the Revised Code and	483
the person fails to pay that civil penalty within the time period	484
prescribed by the appropriate section, the appropriate section	485
shall forward to the attorney general the name of the person and	486
the amount of the civil penalty for the purpose of collecting that	487
civil penalty. In addition to the civil penalty assessed pursuant	488
to this section, the person also shall pay any fee assessed by the	489
attorney general for collection of the civil penalty.	490

Section 2. That existing sections 3781.111, 4517.21, 4740.01,	491
4740.02, 4740.04, and 4740.07 of the Revised Code are hereby	492
repealed.	493

Section 3.  Section 3781.111 of the Revised Code is presented	494
in this act as a composite of the section as amended by both Sub.	495
H.B. 148 and Am. H.B. 264 of the 123rd General Assembly. The	496
General Assembly, applying the principle stated in division (B)	497
of section 1.52 of the Revised Code that amendments are to be	498
harmonized if reasonably capable of simultaneous operation, finds	499
that the composite is the resulting version of the section in	500
effect prior to the effective date of the section as presented in	501
this act.	502