As Introduced

129th General Assembly
Regular Session
2011-2012
S. B. No. 338


Senator Bacon 



A BILL
To enact sections 4720.01 to 4720.12 of the Revised 1
Code to require registration and establish laws 2
governing the practices of air conveyance system 3
cleaning servicers.4


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

       Section 1.  That sections 4720.01, 4720.02, 4720.03, 4720.04, 5
4720.05, 4720.06, 4720.07, 4720.08, 4720.09, 4720.10, 4720.11, and 6
4720.12 of the Revised Code be enacted to read as follows:7

       Sec. 4720.01.  As used in this chapter:8

       (A) "Air conveyance system cleaning servicer" means a person 9
engaged in the business of air conveyance system cleaning services 10
for a commercial or residential property for compensation.11

       (B) "Air conveyance system cleaning service" means the 12
cleaning of a whole system within a forced airstream, consisting 13
of various heating and cooling components.14

       (C) "Consumer" has the same meaning as in section 1345.01 of 15
the Revised Code.16

       (D) "Crime" means any offense involving consumer fraud, 17
predatory marketing practices, misleading advertising practices, 18
or any other offense relating adversely to a person's competence 19
to honestly and safely perform air conveyance system cleaning 20
services.21

       (E) "Department" means the department of commerce.22

       (F) "Director" means the director of commerce or the 23
director's designee.24

       (G) "Person" means an individual, corporation, partnership, 25
association, or any other form of business organization or entity, 26
and its officers, representatives, agents, and employees.27

       (H) "Residential property" means any single or multi-unit 28
structure used in whole or in part as a place of dwelling and any 29
accessory construction incidental to the structure. "Residential 30
property" does not include either of the following:31

       (1) An industrialized unit as described in section 3781.06 of 32
the Revised Code;33

       (2) A mobile home as described in section 4501.01 of the 34
Revised Code.35

       Sec. 4720.02. (A) No person shall do either of the following 36
without registering with the director of commerce in accordance 37
with this chapter:38

       (1) Offer or attempt to perform, engage, or receive 39
remuneration for performing or engaging in the business of air 40
conveyance system cleaning services;41

       (2) Advertise in print, put out any sign, card, or other 42
device that would indicate to the public that the person is an air 43
conveyance system cleaning servicer in the state, or cause the 44
person's name to be included in a classified advertisement or 45
directory in the state under a classification as an air conveyance 46
system cleaning servicer.47

       (B) No air conveyance system cleaning servicer shall do any 48
of the following either before or after registering with the 49
director of commerce in accordance with this chapter:50

       (1) Represent that a consumer's air conveyance system 51
contains any substance that is dangerous or that continued use by 52
the consumer of their air conveyance system may be harmful when 53
such is not the fact;54

        (2) Represent that the air conveyance system cleaning 55
servicer has any sponsorship, approval, or affiliation that the 56
air conveyance system cleaning servicer does not have;57

        (3) Misrepresent any sponsorship, approval, or affiliation 58
that the air conveyance system cleaning servicer does have;59

        (4) Misrepresent the benefits of available air conveyance 60
system cleaning services, including the ability to test for and 61
identify mold present in an air conveyance system;62

        (5) Knowingly make a false report to a consumer, or potential 63
consumer, in a solicitation;64

        (6) Fail to make available accurate registration information 65
to a consumer.66

        (C) A violation of any provision of this chapter, including 67
rules adopted by the director of commerce pursuant to section 68
4720.03 of the Revised Code, shall constitute an unfair, 69
deceptive, or unconscionable act or practice under sections 70
1345.01 to 1345.13 of the Revised Code.71

       Sec. 4720.03.  The director of commerce shall adopt rules 72
establishing all of the following:73

        (A) Registration standards, including financial 74
responsibility and work experience requirements;75

        (B) Applicable fees;76

        (C) A system by which consumers can readily identify 77
registered air conveyance system cleaning servicers, that, at a 78
minimum, should consist of a searchable internet database;79

        (D) Other provisions for the enforcement of this chapter.80

       Sec. 4720.04.  (A) The director of commerce shall assign each 81
air conveyance system cleaning servicer registrant a unique 82
registration number at the time a registration is approved and 83
shall keep a record of all assignments for a period of twenty 84
years.85

       (B) The director may deny issuance or renewal, or revoke, a 86
registration in accordance with section 4720.08 of the Revised 87
Code for failure to comply with, or violation of, the provisions 88
of this chapter or for any other good cause shown within the 89
purpose of the chapter. A denial or revocation shall not be made 90
except upon reasonable notice to, and opportunity to be heard by, 91
the applicant or registrant.92

       (C) The director may do any of the following in enforcing the 93
chapter:94

       (1) In lieu of revoking a registration, suspend a 95
registration for a reasonable time period;96

       (2) In lieu of suspending a registration, assess a monetary 97
penalty to the registrant;98

       (3) In lieu of revoking a registration, suspend a 99
registration for a reasonable time period and assess a monetary 100
penalty to the registrant;101

       (4) Issue a new registration to an applicant whose previous 102
registration was revoked.103

       (D) The director shall prepare, print, and distribute 104
booklets, pamphlets, or other written information that explains 105
the provisions of this chapter and make the information available 106
to consumers.107

       (E) The director shall not issue or renew a registration 108
until the person applying for registration issuance or renewal 109
demonstrates that the administrator of workers' compensation has 110
issued to the person a certificate in accordance with section 111
4123.35 of the Revised Code establishing that the person has paid 112
the required premiums or been granted the privilege to self-insure 113
under Chapter 4123. of the Revised Code.114

       Sec. 4720.05.  (A) To register as an air conveyance system 115
cleaning servicer with the director of commerce as required by 116
division (A) of section 4720.02 of the Revised Code, a person 117
shall do all of the following:118

       (1) Complete an application for registration on a form 119
provided by the department;120

       (2) Pay a reasonable fee, determined by the director, in an 121
amount sufficient to meet the expenses the department incurs in 122
administering the registration program;123

       (3) File a disclosure statement as described in division (C) 124
of this section with the department.125

        (B) Each air conveyance system cleaning servicer registered 126
under this chapter shall file an amended registration form, 127
provided by the department, within twenty days after any change in 128
the information required on a registration form. No fee shall be 129
required for the filing of an amendment.130

       (C) In accordance with division (A)(3) of this section, every 131
applicant for an air conveyance system cleaning servicer 132
registration shall file a disclosure statement with the director 133
of commerce stating whether the applicant has been convicted of or 134
pleaded guilty to any crime. If any of the information required to 135
be included in the disclosure statement changes, or if additional 136
information should be added after the applicant or registrant 137
files the statement, the applicant or registrant shall provide 138
that information to the director, in writing, within thirty 139
calendar days of the change or addition.140

       Sec. 4720.06.  The provisions of this chapter shall apply to 141
any person engaging in any of the activities regulated by this 142
chapter in the state, including persons whose residence or 143
principal place of business is located outside of the state. 144

       Sec. 4720.07.  Each person registered as an air conveyance 145
system cleaning servicer shall annually reregister with the 146
director by completing an application for registration on a form 147
provided by the department and paying a reasonable fee, as 148
determined by the director.149

       Sec. 4720.08.  (A) In accordance with section 4720.04 of the 150
Revised Code, the director of commerce may refuse to issue, 151
suspend, or revoke any registration of an applicant or registrant 152
upon reasonable proof that the applicant or registrant is 153
incapable, for medical or any other good cause, of executing the 154
functions of a registrant in a manner consistent with the public's 155
health, safety, and welfare or has done any of the following:156

       (1) Obtained a registration through fraud, deception, or 157
misrepresentation;158

       (2) Engaged in the use or employment of dishonesty, fraud, 159
deception, misrepresentation, false promise, or false pretense;160

       (3) Engaged in gross negligence, gross malpractice, or gross 161
incompetence;162

       (4) Engaged in repeated acts of negligence, malpractice, or 163
incompetence;164

       (5) Engaged in professional or occupational misconduct as 165
determined by the director;166

       (6) Except as provided in division (E) of this section, been 167
convicted of or pleaded guilty to any crime involving moral 168
turpitude or relating adversely to a person's competence to 169
honestly and safely perform air conveyance system cleaning 170
services;171

       (7) Had the authority to engage in air conveyance system 172
cleaning services revoked or suspended by any other state, agency, 173
or authority for reasons consistent with this section;174

       (8) Violated or failed to comply with the provisions of any 175
rule administered by the director;176

        (9) Was determined to be a noncomplying employer by the 177
administrator of workers' compensation pursuant to Chapter 4123. 178
of the Revised Code.179

       (B) The director shall prohibit a person who violates section 180
4720.02 of the Revised Code from registering as an air conveyance 181
system cleaning servicer for a period of up to six months after 182
the violation.183

       (C) An applicant or registrant whose registration is denied, 184
suspended, or revoked pursuant to division (A) or (B) of this 185
section, upon a written request transmitted to the director within 186
thirty calendar days of the denial, suspension, or revocation, may 187
appeal the decision pursuant to Chapter 119. of the Revised Code.188

       (D) An applicant or registrant shall have the continuing duty 189
to provide any assistance or information requested by the 190
director, and to cooperate in any inquiry, investigation, or 191
hearing conducted by the director regarding the issuance, denial, 192
suspension, or revocation of a registration.193

       (E) Notwithstanding division (A)(6) of this section, the 194
director shall not deny a registration or have a registration 195
suspended or revoked on the basis of any conviction or plea of 196
guilty disclosed if the applicant or registrant has affirmatively 197
demonstrated to the director clear and convincing evidence of the 198
applicant's or registrant's rehabilitation. In determining whether 199
an applicant or registrant has affirmatively demonstrated 200
rehabilitation, the director shall consider the following factors:201

       (1) The nature and responsibility of the position the 202
applicant or registrant would hold;203

       (2) The nature and seriousness of the offense;204

       (3) The circumstances under which the offense occurred;205

       (4) The date of the offense;206

       (5) The age of the applicant or registrant when the offense 207
was committed;208

       (6) Whether the offense was an isolated incident or repeated 209
situation;210

       (7) Any social conditions that may have contributed to the 211
offense;212

       (8) Any evidence of rehabilitation, including good conduct in 213
prison or in the community, counseling or psychiatric treatment 214
received, acquisition of additional academic or vocational 215
schooling, successful participation in correctional work-release 216
programs, or the recommendation of persons who have the applicant 217
or registrant under their supervision.218

       Sec. 4720.09.  Every registered air conveyance system 219
cleaning servicer shall secure, maintain, and file with the 220
director of commerce proof of commercial general liability 221
insurance in a minimum amount of five hundred thousand dollars per 222
occurrence. If a registrant's insurance is to be canceled or is 223
nonrenewable, the registrant shall submit to the director a copy 224
of a new insurance policy or a replacement policy that meets the 225
requirements of this section before the former policy lapses.226

       Sec. 4720.10.  Each registrant shall prominently display the 227
registration number assigned to the registrant, as described in 228
division (A) of section 4720.04 of the Revised Code, in the 229
registrant's place of business, in all advertisements distributed 230
within the state, on business documents, contracts, and 231
correspondence with consumers of air conveyance system cleaning 232
services, and on all commercial vehicles registered in the state 233
that are leased or owned by the registrant and used by the 234
registrant for the purpose of engaging in air conveyance system 235
cleaning services.236

       Sec. 4720.11.  This chapter and the rules adopted pursuant to 237
it shall supersede any ordinance or regulation of a municipal 238
corporation that provides for licensing or registration of air 239
conveyance system cleaning servicers or for the protection of 240
consumers by bonds or warranties required to be provided by 241
servicers. A municipal corporation may enact ordinances and 242
regulations relating to air conveyance system cleaning servicers 243
that are not provided for in this chapter or in rules adopted by 244
the director of commerce pursuant to this chapter.245

       Sec. 4720.12.  (A) No registered air conveyance system 246
cleaning servicer shall perform any air conveyance system cleaning 247
services unless that person enters into a written contract with 248
the consumer. The contract shall clearly and accurately set forth 249
in legible form and understandable language all agreements and 250
conditions related to the service, including all of the following:251

       (1) The legal name, business address, and registration 252
number, as described in division (A) of section 4720.04 of the 253
Revised Code, of the air conveyance system cleaning servicer;254

       (2) A copy of the proof of commercial general liability 255
insurance required of a servicer pursuant to section 4720.09 of 256
the Revised Code;257

       (3) The total price or other consideration to be paid by the 258
consumer, including the finance charges.259

       Section 2. The provisions of this act shall take effect six 260
months after the effective date of the act.261