To amend sections 1345.01, 4740.04, and 4740.14 and to enact sections 1312.20, 4722.01 to 4722.14, and 4722.99 of the Revised Code to establish laws governing the practices of home improvement contractors and new residential construction contractors and to provide civil remedies for owners who are damaged by a contractor who violates the law.

Section 1. That sections 1345.01, 4740.04, and 4740.14 be amended and sections 1312.20, 4722.01, 4722.02, 4722.03, 4722.04, 4722.05, 4722.06, 4722.07, 4722.08, 4722.09, 4722.10, 4722.11, 4722.12, 4722.13, 4722.14, and 4722.99 of the Revised Code be enacted to read as follows:

Sec. 1312.20.  (A) An express warranty that a residential contractor offers to an owner complies with this division if that warranty is in writing and includes all of the following:

(1) The name and address of the residential contractor and any other person who is obligated to the owner under the warranty;

(2) The name and address of the owner to whom the warranty is extended;

(3) The period of time for which the warranty remains effective, which shall not be less than ten years for claims related to structural integrity, including, but not limited to, the foundation, roof, and basic core structure of the residence, or less than two years for all other claims;

(4) A description of the portions of the warranty that extends to a subsequent owner and the terms under which any extension is effective; however, any warranty must be fully transferable during the first two years of the existence of the structure;

(5) The clear and conspicuous identification of any part or portion of the home or premises that is excepted or excluded from warranty coverage;

(6) An agreement to complete any construction covered by the warranty in a reasonably efficient time, in a workerlike manner, and in accordance with the state residential building code adopted pursuant to Chapter 3781. of the Revised Code;

(7) Notice of the residential contractor's right under section 1312.03 of the Revised Code to offer to resolve any alleged construction defect before the owner may commence a dwelling action or arbitration proceeding against the residential contractor;

(8) A condition that any warranty dispute have its first hearing under a neutral, nonbinding dispute resolution procedure provided by any of the following:

(a) A local home builders trade association;

(b) The local better business bureau;

(c) A local court program;

(d) Any other mediation or dispute resolution procedure agreed to by the parties.

(9) A provision that the owner and contractor will equally share in the cost of any dispute resolution procedure;

(10) Notice that the warranty is backed by either a separate policy of insurance or a performance bond in an amount equal to or greater than the contract price. Any warranty that otherwise complies with this section is required to be backed by either a separate policy of insurance or a performance bond in an amount equal to or greater than the contract price.

(11) Any other term or condition that does not conflict with the Revised Code.

No words in the contract of sale or the deed nor merger of the contract of sale into the deed shall exclude or modify any aspect of an express warranty made pursuant to this division.

(B) Except for actions based on a claim arising from a knowing misrepresentation of a material term or condition of the contract, goods, or services, no person may bring an action against a residential contractor under sections 1345.01 to 1345.13 of the Revised Code based on the construction of a residential building if the contractor provided an express warranty that complies with division (A) of this section.

(C)(1) No owner may bring a civil action for property damage, breach of contract, or other similar claims alleging a construction defect against a residential contractor who provides an express warranty that complies with division (A) of this section unless that owner first submits the complaint to the dispute resolution procedure the residential construction advisory committee establishes pursuant to section 4740.14 of the Revised Code. All applicable statutes of limitation or repose are tolled for the period of time the owner is engaged in the dispute resolution procedure described in this division.

(2) Notwithstanding division (C)(1) of this section, an action based on an intentional act or gross negligence in the construction of a residential building or for personal injuries directly and proximately caused by the negligence or breach of contract of a residential contractor are not subject to this section and shall not be submitted to the dispute resolution procedure the residential construction advisory committee established pursuant to section 4740.14 of the Revised Code.

(D) No owner may bring a claim based on a breach of warranty against a residential contractor more than ten years after the owner discovers a construction defect if the contractor provides an express warranty that complies with division (A) of this section.

(E) In any action for property damages, whether based in tort or contract, brought against a residential contractor who offers an express warranty that complies with division (A) of this section for the construction of a residential building, each of the following apply:

(1) An owner may allege that the contractor failed to perform in a workerlike manner or that a contractor failed to substantially comply with an applicable local building code or the state residential building code.

(2) The burden of proof is on the owner to show that a residential contractor did not perform in a workerlike manner or failed to comply with a building code.

(F) The exclusive remedy for a breach of contract or a breach of warranty by a residential contractor who provides an express warranty that complies with division (A) of this section is payment of the amount of actual or consequential damages caused by the breach.

(G) Damages for emotional distress are not available against a residential contractor who provides an express warranty that complies with division (A) of this section unless the emotional distress is associated with an actual physical injury.

(H) As used in this section, "workerlike manner" means that a contractor performs the residential construction as a skilled worker would do, using ordinary care and skill working in a reasonably efficient manner, consistent with the residential building standards the residential construction advisory board establishes pursuant to section 4740.14 of the Revised Code.

Sec. 1345.01.  As used in sections 1345.01 to 1345.13 of the Revised Code:

(A)(1) "Consumer transaction" means a sale, lease, assignment, award by chance, or other transfer of an item of goods, a service, a franchise, or an intangible, to an individual for purposes that are primarily personal, family, or household, or solicitation to supply any of these things. "Consumer

(2) "Consumer transaction" does not include any of the following transactions:

(a) Transactions between persons, defined in sections 4905.03 and 5725.01 of the Revised Code, and their customers, except for transactions in connection with residential mortgages between loan officers, mortgage brokers, or nonbank mortgage lenders and their customers; transactions

(b) Transactions between certified public accountants or public accountants and their clients; transactions

(c) Transactions between attorneys, physicians, or dentists and their clients or patients; and transactions

(d) Transactions between veterinarians and their patients that pertain to medical treatment but not ancillary services;

(e) Except as otherwise indicated in division (A)(3) of this section, transactions between owners and any of the following:

(i) Home improvement contractors licensed pursuant to section 4722.02 of the Revised Code;

(ii) Home improvement contractors who are not licensed pursuant to section 4722.02 of the Revised Code and who fulfill the criteria described in division (E) of section 4722.08 of the Revised Code;

(iii) New residential construction contractors who fulfill the criteria described in division (E) of section 1312.06 of the Revised Code;

(iv) New residential construction contractors who fulfill the criteria described in division (B) of section 1312.20 of the Revised Code;

(v) New residential construction contractors who provide an express warranty pursuant to the criteria described in division (B) of section 1312.20 of the Revised Code;

(vi) Home improvement contractors who provide home improvement goods or services valued at less than one thousand dollars, except that if through changes, modifications, or additions, the value of the home improvement goods or services exceeds one thousand dollars, the transaction shall be a consumer transaction under this section and all of the provisions of sections 1345.01 to 1345.13 of the Revised Code shall apply except for any provisions requiring or relating to written contracts.

(3) A transaction described in division (A)(2)(e) of this section shall be considered a consumer transaction under division (A)(1) of this section if the transaction is the basis of a claim for fraud or misrepresentation and the fraud or misrepresentation induces an owner to enter into a contract under this chapter.

(4) For purposes of division (A)(2) of this section, "owner," "home improvement contractor," and "new residential construction contractor" have the same meanings as in section 4722.01 of the Revised Code.

(B) "Person" includes an individual, corporation, government, governmental subdivision or agency, business trust, estate, trust, partnership, association, cooperative, or other legal entity.

(C) "Supplier" means a seller, lessor, assignor, franchisor, or other person engaged in the business of effecting or soliciting consumer transactions, whether or not the person deals directly with the consumer. If the consumer transaction is in connection with a residential mortgage, "supplier" does not include an assignee or purchaser of the loan for value, except as otherwise provided in section 1345.091 of the Revised Code. For purposes of this division, in a consumer transaction in connection with a residential mortgage, "seller" means a loan officer, mortgage broker, or nonbank mortgage lender.

(D) "Consumer" means a person who engages in a consumer transaction with a supplier.

(E) "Knowledge" means actual awareness, but such actual awareness may be inferred where objective manifestations indicate that the individual involved acted with such awareness.

(F) "Natural gas service" means the sale of natural gas, exclusive of any distribution or ancillary service.

(G) "Public telecommunications service" means the transmission by electromagnetic or other means, other than by a telephone company as defined in section 4927.01 of the Revised Code, of signs, signals, writings, images, sounds, messages, or data originating in this state regardless of actual call routing. "Public telecommunications service" excludes a system, including its construction, maintenance, or operation, for the provision of telecommunications service, or any portion of such service, by any entity for the sole and exclusive use of that entity, its parent, a subsidiary, or an affiliated entity, and not for resale, directly or indirectly; the provision of terminal equipment used to originate telecommunications service; broadcast transmission by radio, television, or satellite broadcast stations regulated by the federal government; or cable television service.

(H) "Loan officer" has the same meaning as in section 1322.01 of the Revised Code, except that it does not include an employee of a bank, savings bank, savings and loan association, credit union, or credit union service organization organized under the laws of this state, another state, or the United States; an employee of a subsidiary of such a bank, savings bank, savings and loan association, or credit union; or an employee of an affiliate that (1) controls, is controlled by, or is under common control with, such a bank, savings bank, savings and loan association, or credit union and (2) is subject to examination, supervision, and regulation, including with respect to the affiliate's compliance with applicable consumer protection requirements, by the board of governors of the federal reserve system, the comptroller of the currency, the office of thrift supervision, the federal deposit insurance corporation, or the national credit union administration.

(I) "Residential mortgage" or "mortgage" means an obligation to pay a sum of money evidenced by a note and secured by a lien upon real property located within this state containing two or fewer residential units or on which two or fewer residential units are to be constructed and includes such an obligation on a residential condominium or cooperative unit.

(J) "Mortgage broker" has the same meaning as in section 1322.01 of the Revised Code, except that it does not include a bank, savings bank, savings and loan association, credit union, or credit union service organization organized under the laws of this state, another state, or the United States; a subsidiary of such a bank, savings bank, savings and loan association, or credit union; an affiliate that (1) controls, is controlled by, or is under common control with, such a bank, savings bank, savings and loan association, or credit union and (2) is subject to examination, supervision, and regulation, including with respect to the affiliate's compliance with applicable consumer protection requirements, by the board of governors of the federal reserve system, the comptroller of the currency, the office of thrift supervision, the federal deposit insurance corporation, or the national credit union administration; or an employee of any such entity.

(K) "Nonbank mortgage lender" means any person that engages in a consumer transaction in connection with a residential mortgage, except for a bank, savings bank, savings and loan association, credit union, or credit union service organization organized under the laws of this state, another state, or the United States; a subsidiary of such a bank, savings bank, savings and loan association, or credit union; or an affiliate that (1) controls, is controlled by, or is under common control with, such a bank, savings bank, savings and loan association, or credit union and (2) is subject to examination, supervision, and regulation, including with respect to the affiliate's compliance with applicable consumer protection requirements, by the board of governors of the federal reserve system, the comptroller of the currency, the office of thrift supervision, the federal deposit insurance corporation, or the national credit union administration.

(L) For purposes of divisions (H), (J), and (K) of this section:

(1) "Control" of another entity means ownership, control, or power to vote twenty-five per cent or more of the outstanding shares of any class of voting securities of the other entity, directly or indirectly or acting through one or more other persons.

(2) "Credit union service organization" means a CUSO as defined in 12 C.F.R. 702.2.

Sec. 4722.01.  As used in this chapter:

(A) "Construction defect" means a deficiency that arises directly or indirectly from a home improvement.

(B) "Construction project" means any home improvement or new residential construction.

(C) "Contractor" means any home improvement contractor or new residential construction contractor.

(D) "Dwelling action" means any of the following actions, brought against a home improvement contractor, for damages or the loss of use of real property, caused by a construction defect:

(1) A civil action in contract or tort for damages or indemnity;

(2) Any action brought pursuant to Chapter 1345. of the Revised Code;

(3) Any action brought pursuant to this chapter.

(E) "Home improvement" means any repair, alteration, or addition to any residential building, industrialized unit, manufactured home, or mobile home, or to any dwelling unit in any type of structure. "Home improvement" does not include any of the following:

(1) Construction of a new residential building, industrialized unit, or manufactured home;

(2) Work performed on a structure that contains four or more dwelling units, except for work on an individual dwelling unit within that structure;

(3) Work performed on the common area of a condominium property.

(F) "Home improvement contractor" means any person who performs or offers to perform any home improvement for compensation.

(G) "Industrialized unit," "manufactured home," and "residential building" have the same meanings as in section 3781.06 of the Revised Code.

(H) "Mobile home" has the meaning as in section 4501.01 of the Revised Code.

(I) "New residential construction" means any original construction of a residential building.

(J) "New residential construction contractor" means any person who performs or offers to perform any new residential construction for compensation.

(K) "Owner" means the person who contracts with a contractor for a construction project. "Owner" may include the owner of the property, a tenant who occupies the dwelling unit on which the construction project is performed, or a person the owner authorizes to act on the owner's behalf to contract for a construction project, and any other person who contracts for a construction project.

Sec. 4722.02.  (A) The Ohio construction industry licensing board shall issue licenses to home improvement contractors in a manner prescribed by the board in rules it adopts under division (B) of this section. Any home improvement contractor may apply for a license by filing with the board a written application, accompanied by the filing fee established pursuant to rules the board adopts under division (B)(1) of this section. A home improvement contractor is not required to maintain a license issued pursuant to this section to perform construction projects in this state.

(B) The Ohio construction industry licensing board shall adopt rules in accordance with Chapter 119. of the Revised Code to establish all of the following:

(1) Fees for license issuance and renewal, including late fees, subject to the approval of the controlling board.

(2) Continuing education requirements for license renewal, including a requirement that a licensed home improvement contractor satisfactorily complete not less than ten hours of continuing education courses per year.

(3) A code of ethics for home improvement contractors.

(4) Standards for minimal best practices of licensed home improvement contractors that the licensed home improvement contractors shall follow, including, but not limited to, rules specifying unfair contractor practices.

(5) Disciplinary procedures for contractors who violate the minimal best practices rules adopted by the board pursuant to division (B)(4) of this section.

(6) Requirements by which an arbitration procedure, if any, may be certified for use between contractors and owners to address disputes, to assure that an arbitration procedure does not contain unconscionable provisions, and to require the use of neutral arbitrators.

(7) Any other requirement that is necessary and proper for the implementation of this section.

(C) The Ohio construction industry licensing board has the same powers as those described in divisions (A), (B), and (C) of section 4740.10 of the Revised Code to discipline and investigate a licensee who violates this chapter.

(D) Any person who wishes to make a complaint against a person who, on the date the action or event upon which the complaint is based held a valid license issued pursuant to this section, shall submit the complaint in writing to the Ohio construction industry licensing board within ten years after the date the owner has knowledge of the event upon which the complaint is based.

(E) Any contractor holding a valid, unexpired license may renew the license by submitting an application to the Ohio construction industry licensing board not more than ninety calendar days before the expiration of the license, along with the renewal fee the board establishes pursuant to rules it adopts under division (B)(1) of this section and proof of compliance with the applicable continuing education requirements.

(F) Upon application and within one calendar year after a license has expired, the board may waive any of the requirements for renewal of a license upon finding that an applicant substantially meets the renewal requirements or that failure to timely apply for renewal is due to excusable neglect. If the board waives requirements for renewal of a license, the board may impose conditions upon the licensee and assess a late renewal fee of not more than double the usual renewal fee. The board shall not reissue a license to an applicant until after that applicant has satisfied every condition the board imposed upon that applicant for reissuance of a license.

(G) Any person who previously held a license issued pursuant to division (A) of this section that subsequently had that licensed revoked by the board pursuant to a disciplinary action under division (C) of this section or pursuant to rules adopted under division (B)(5) of this section shall not engage in construction projects in this state.

Sec. 4722.03.  (A) No contractor shall perform any construction project the cost of which equals or exceeds one thousand dollars unless that person enters into a written contract with the owner. The contract shall include all agreements and conditions related to the construction project, including all of the following:

(1) The contractor's name, physical business address, business telephone number, and, if licensed under section 4722.02 of the Revised Code, license number, but if not licensed, also the contractor's taxpayer identification number and physical home address;

(2) The owner's name, address, and telephone number;

(3) The address of the property where the construction project is to be performed;

(4) A detailed description of the construction project, including the goods and services to be furnished as part of the construction project;

(5) The date or time period the construction project is to begin and the date or time period it is to be completed;

(6) The total cost of the construction project;

(7) Any cost of installation, delivery, or other cost that the total cost does not cover;

(8) The dated signatures of the owner and the contractor;

(9) A notice of applicable right to cure provisions in substantially the following language:

"RIGHT TO CURE

IN THE EVENT THAT THE CONSTRUCTION PROJECT THAT IS THE SUBJECT OF THIS CONTRACT RESULTS IN A CONSTRUCTION DEFECT, THE CONTRACTOR NAMED IN THIS CONTRACT WILL HAVE THE RIGHT TO CURE THE CONSTRUCTION DEFECT IN A MANNER CONSISTENT WITH CHAPTER 1312. OF THE REVISED CODE IF THE CONSTRUCTION DEFECT ARISES FROM NEW RESIDENTIAL CONSTRUCTION, OR CHAPTER 4722. OF THE REVISED CODE IF THE CONSTRUCTION DEFECT ARISES FROM A HOME IMPROVEMENT. GENERALLY THE RIGHT TO CURE PROVISIONS PROVIDE THE CONTRACTOR SIXTY (60) DAYS TO CURE ANY CONSTRUCTION DEFECT, BUT SEE THE APPLICABLE SECTIONS OF THE REVISED CODE TO DETERMINE SPECIFIC TIME AND NOTICE REQUIREMENTS.";

(10) A notice stating whether or not the contractor has performance bonds or other insurance beyond the insurance required by section 4722.11 of the Revised Code that will cover losses incurred through defects or breach of contract terms by the contractor.

(B)(1) To determine the type of notice an owner requires when the costs of a construction project exceed the estimate provided in the contract, the contract shall include a statement in substantially the following language:

"EXCESS COSTS

IF AT ANY TIME A CONSTRUCTION PROJECT REQUIRES EXTRA COSTS ABOVE THE COST SPECIFIED OR ESTIMATED IN THE CONTRACT WHICH WERE UNFORESEEN, BUT REASONABLY NECESSARY, AND THE TOTAL OF ALL EXTRA COSTS TO DATE EXCEEDS TEN PER CENT OF THE CONTRACT COST, YOU HAVE A RIGHT TO AN ESTIMATE OF THOSE EXCESS COSTS BEFORE THE CONTRACTOR BEGINS WORK RELATED TO THOSE COSTS. INITIAL YOUR CHOICE OF THE TYPE OF ESTIMATE YOU REQUIRE:

..... written estimate ..... oral estimate"

(2) If the total amount of unforeseen, but reasonably necessary excess costs of a construction project at any time exceeds ten per cent of the cost estimated or specified in the contract, prior to performing the work related to the excess costs, the contractor shall provide an owner with the type of notice the owner has designated in the contract.

(3) If the contract stipulates that the specified cost of the construction project is a firm price and the contractor will not charge the owner with any excess costs, the contractor need not comply with the notice requirements of this division.

(4) An owner is not liable for any excess costs unless the costs were unforeseen, but reasonably necessary, and unless the contractor complies with this section's notice requirements.

Sec. 4722.04. No contractor shall do any of the following:

(A) Prior to commencing work related to the construction project, fail to enter into a written contract that complies with this chapter;

(B) After entering into a contract with an owner and prior to commencing any work that is related to an excess cost, fail to provide an estimate of the excess costs as this chapter requires;

(C) After entering into a contract with an owner, do any of the following:

(1) Fail to disclose, prior to the owner's acceptance of any goods or work related to an excess cost, that in failing to approve an excess cost, completion of the work may not be possible and a charge may be imposed for any disassembly, reassembly, or partially completed work, which shall be directly related to the actual labor or parts involved;

(2) Charge for any excess cost that the owner has not approved;

(3) Represent that repairs or work have been performed when such is not the fact;

(4) Fail to provide the owner, upon the owner's request, a written itemized list of repairs performed or services rendered, including a list of parts or materials and a statement of whether they are used, manufactured, or rebuilt, if not new, the cost to the owner, the amount charged for labor, and the identity of the individual performing the repair or service;

(5) Fail to tender to the owner any replaced parts, unless the parts are to be rebuilt or sold by the contractor, or returned to the manufacturer in connection with a warranted repair or service, and the intended reuse or return is made known to the owner prior to commencing any repair or services;

(6) Fail to provide a full refund for any goods or services that the contractor has failed to deliver in accordance with the terms and conditions of the contract required by section 4722.03 of the Revised Code and for which the contractor has received payment;

(7) Fail to provide to the owner, upon the owner's request, a written, itemized receipt for any item of goods that are left with, or turned over to, the contractor for repair or services. The receipt shall include all of the following:

(a) The identity of the person who will perform the repair or services;

(b) The name and dated signature of the person or representative who actually accepts the goods;

(c) A description including make and model number or other features that will reasonably identify the goods that are turned over and the repair or services that are to be performed.

(D) Make the performance of any construction project contingent upon a consumer's waiver of any rights this chapter provides;

(E) Represent that repairs, services, or work is necessary when such is not the fact;

(F) Represent that an item of goods or any part thereof that is being inspected or diagnosed for a construction project is in a dangerous condition, or that its continued use may be harmful, when such is not the fact;

(G) Materially understate or misstate the estimated cost of the construction project;

(H) Fraudulently misrepresent any aspect of the transaction or the nature or the quality of the work or materials;

(I) Fail at the time any owner signs or initials any document to provide the owner with a copy of the document;

(J) Fail to disclose to the owner prior to the commencement of any repair or service, that any part of the repair or service will be performed by a person other than the contractor or employee of the contractor if the contract disclaims any warranty of the repair or service that the other person performs;

(K) Represent that repairs or services must be performed away from the property on which the construction project is being performed when that is not the fact.

Sec. 4722.05. (A) A home improvement contractor who is not licensed under section 4722.02 of the Revised Code may take as a down payment not more than ten per cent of the contract price before the home improvement contractor's performance that is required by the contract is completed, except a home improvement contractor may take as a down payment not more than seventy-five per cent of the total cost of any special order item that is otherwise not returnable or usable before the home improvement contractor's performance that is required by the contract is completed.

(B) A contractor shall begin work on the date or within the time period the contract specifies and shall complete the construction project pursuant to any agreed-upon schedule unless delay is due to reasonable cause beyond the contractor's control. In no case shall an owner be required to pay more than ten per cent of the value of the work completed by the contractor.

Sec. 4722.06.  (A) No owner shall commence arbitration proceedings or file a dwelling action against a home improvement contractor unless, at least sixty days before commencing the proceedings or filing the action, the owner provides the home improvement contractor with written notice of the construction defect that would be the basis of the arbitration proceedings or the dwelling action. The notice shall be in writing and mailed, sent by telegram, delivered in person, or sent by any means the home improvement contractor has indicated communications may be sent, including facsimile transmission and electronic mail. The notice shall substantially comply with the requirements set forth in division (B) of this section.

(B) Any notice that an owner provides to a home improvement contractor pursuant to this section shall substantially do all of the following:

(1) Assert a claim involving a construction defect by itemizing and describing those construction defects;

(2) Include or attach a copy of any documentation concerning the construction defects prepared by a person who inspected the building for the owner;

(3) Include the name, address, and telephone number of the owner and the home improvement contractor and the address of the building that is the subject of the claim.

(C) After receiving a notice of defects, a home improvement contractor may request an owner to provide a description of the cause of the defects and the nature and extent of repairs necessary to remedy the defects. An owner may provide this information if the owner has knowledge of the cause of the defects and the repairs necessary to remedy those defects.

(D) If a home improvement contractor files a mechanics lien or commences any type of arbitration proceedings or legal action against an owner, this section does not apply, and the owner immediately may counterclaim, commence arbitration proceedings, or file a dwelling action against the home improvement contractor.

Sec. 4722.07.  (A) A home improvement contractor shall provide the owner with a good faith written response to any notice provided pursuant to section 4722.06 of the Revised Code. The response shall be provided within twenty-one days after the owner mailed the notice, delivered it by personal delivery, or transmitted it by telegram, facsimile, or electronic mail. In the response, the home improvement contractor shall offer to take one of the following actions:

(1) Inspect the building that is the subject of the claim;

(2) Compromise and settle the claim without an inspection;

(3) Dispute the claim.

(B) If a home improvement contractor fails to respond as required by division (A) of this section or disputes the claim, an owner is deemed to have complied with this section and may commence arbitration proceedings or file a dwelling action without further notice to the home improvement contractor.

(C) If an owner rejects a home improvement contractor's offer to inspect the property or to compromise and settle a claim, the owner shall notify the home improvement contractor of that rejection within fourteen days after receiving the home improvement contractor's offer. The rejection notice shall be in writing and include a reason for the rejection.

(D) After providing a rejection notice, an owner has complied with this section and may commence arbitration proceedings or file a dwelling action without further notice to the contractor.

Sec. 4722.08.  (A) If an owner accepts a home improvement contractor's offer to inspect the building, the owner shall notify the home improvement contractor of that acceptance within fourteen days after receipt of the notice described in division (A) of section 4722.07 of the Revised Code. After accepting the offer to inspect, the owner shall allow the home improvement contractor reasonable access to the building during normal working hours. The home improvement contractor shall inspect the building within fourteen days after the owner notifies the home improvement contractor that the owner accepts the offer to inspect the building. The home improvement contractor shall take reasonable measures to determine the nature and cause of the construction defects and the appropriate remedy. The measures the contractor takes may include, but are not limited to, testing.

(B) Within ten days after a home improvement contractor conducts an inspection as described in division (A) of this section, the home improvement contractor shall provide the owner with one of the following:

(1) A written offer to remedy the defects at no cost to the owner, an inspection report, a prediction of the additional construction work necessary to remedy each defect, and a timetable for completing the work necessary to remedy the defects;

(2) A written offer to settle the claim;

(3) A written statement asserting that the home improvement contractor does not intend to remedy the defects.

(C) An owner has complied with sections 4722.06, 4722.07, 4722.08, 4722.09, and 4722.10 of the Revised Code and may commence arbitration proceedings or file a dwelling action without further notice to the home improvement contractor if any of the following occur:

(1) The home improvement contractor does not inspect the property within fourteen days after the owner notifies the home improvement contractor that the owner accepts the offer to inspect.

(2) Within ten days after the home improvement contractor conducts the inspection, the home improvement contractor does not provide a written response as required under division (B) of this section.

(3) The home improvement contractor notifies the owner that the home improvement contractor does not intend to remedy the defects.

(4) The home improvement contractor fails to remedy the defects in the manner the home improvement contractor describes or within the timetable the home improvement contractor provides.

(D) If a home improvement contractor makes or provides for any repair or replacement to remedy a construction defect, the home improvement contractor may take reasonable steps to document the repair or replacement and to inspect the repair or replacement or have it inspected.

(E) If an owner accepts an offer that a home improvement contractor makes in compliance with sections 4722.06, 4722.07, 4722.08, 4722.09, and 4722.10 of the Revised Code to compromise and settle the claim, to remedy the defects, or to settle the claim, and the contractor fulfills that offer in compliance with sections 4722.06, 4722.07, 4722.08, 4722.09, and 4722.10 of the Revised Code, the owner is barred from bringing a dwelling action or commencing arbitration proceedings for the claim, except for claims of fraud or misrepresentation and the fraud or misrepresentation induces an owner to enter into a contract.

Sec. 4722.09.  Unless otherwise indicated in sections 4722.06, 4722.07, 4722.08, and 4722.10 of the Revised Code, an owner has complied with those sections and may commence arbitration proceedings or file a dwelling action sixty days after the owner mails, delivers, sends by facsimile transmission or electronic mail, or otherwise provides the home improvement contractor with a defect notice pursuant to division (A) of section 4722.06 of the Revised Code.

Sec. 4722.10.  (A) All applicable statutes of limitation or repose are tolled from the time the owner sends a notice of defect to a home improvement contractor pursuant to section 4722.06 of the Revised Code until the owner has complied with this chapter.

(B) If an owner files a dwelling action or commences arbitration proceedings without having complied with sections 4722.06, 4722.07, 4722.08, and 4722.09 of the Revised Code, the court or arbitrator shall dismiss that action or those proceedings without prejudice. The owner may again file a dwelling action or commence arbitration proceedings after complying with those sections.

(C) Sections 4722.06, 4722.07, 4722.08, and 4722.09 of the Revised Code do not apply to any civil action in tort alleging personal injury or wrongful death to a person resulting from a construction defect.

(D) This section and sections 4722.06, 4722.07, 4722.08, and 4722.09 of the Revised Code do not apply to any dwelling action arising out of a construction defect where that construction defect will jeopardize the welfare, health, or safety of the owner or any other occupant of the residential building or the residential building has been rendered uninhabitable by the construction defect.

Sec. 4722.11. A contractor shall maintain general liability insurance in an amount not less than two hundred fifty thousand dollars.

Sec. 4722.12. (A) An owner may initiate a civil action in a court of common pleas for damages due to any breach of contract or for breach of any duty this chapter imposes. The court may grant an injunction, a temporary restraining order, actual damages, or other appropriate relief for a violation of this chapter.

(B) The court may award the owner treble damages if it finds a contractor knowingly committed an act or practice that violates this chapter.

(C) In any action pursuant to this chapter, the court may award to the prevailing party a reasonable attorney's fee limited to the work reasonably performed, if either of the following applies:

(1) The owner complaining of the act or practice that violated this chapter has brought or maintained an action that is groundless, and the owner filed or maintained the action in bad faith;

(2) The contractor knowingly committed an act or practice that violates this chapter.

(D) Nothing in this section limits any other action brought by an owner or contractor at common law.

Sec. 4722.13. The attorney general may initiate criminal proceedings for a prosecution under section 4722.99 of the Revised Code, or any other section of the Revised Code for claims related to or arising out of a construction project, by presenting evidence of criminal violations to the prosecuting attorney of the city or county in which the offense may be prosecuted. If the prosecuting attorney notifies the attorney general in writing that the prosecuting attorney does not wish to prosecute the violations, or at the request of the prosecuting attorney, the attorney general may proceed in the prosecution with all the rights, privileges, and powers conferred by law on prosecuting attorneys, including the power to appear before grand juries and to interrogate witnesses before grand juries.

Sec. 4722.14. (A) Any instrumentality, as defined in division (B)(6) of section 2981.01 of the Revised Code, of a contractor convicted of an offense in connection with a construction project, shall be subject to the forfeiture provisions of Chapter 2981. of the Revised Code.

(B) If a contractor is convicted of a criminal offense in connection with a construction project, the sentencing court, when sentencing that contractor, shall consider and specify a plan of restitution to the owner of the property harmed by the offense, pursuant to any community control sanctions ordered pursuant to sections 2929.15 to 2929.28 of the Revised Code.

Sec. 4722.99.  (A) Whoever knowingly violates section 4722.03 of the Revised Code is guilty of a misdemeanor of the fourth degree.

(B) Any contractor who knowingly engages in a pattern of misrepresentation to consumers or knowingly and improperly represents quality, timeliness, or quantity of the work that was or is to be performed for a construction project is guilty of a misdemeanor of the first degree.

(C) Whoever violates division (F) of section 4722.02 of the Revised Code is guilty of a misdemeanor of the first degree for each violation.

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

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

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

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

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

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

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

(C) Issue and renew licenses as follows:

(1) Issue a license to any individual who the appropriate section of the board determines is qualified pursuant to section 4740.06 of the Revised Code to hold a license and has attained a score on the examination that the appropriate section authorizes for the licensed trade.

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

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

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

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

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

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

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

(1) Application procedures for examinations;

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

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

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

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

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

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

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

(J) Fulfill the duties and obligations required by section 4722.02 of the Revised Code.

Sec. 4740.14.  (A) There is hereby created within the department of commerce the residential construction advisory committee consisting of nine persons the director of commerce appoints. Of the advisory committee's members, three shall be general contractors who have recognized ability and experience in the construction of residential buildings, two shall be building officials who have experience administering and enforcing a residential building code, one, chosen from a list of three names the Ohio fire chief's association submits, shall be from the fire service certified as a fire safety inspector who has at least ten years of experience enforcing fire or building codes, one shall be a residential contractor who has recognized ability and experience in the remodeling and construction of residential buildings, one shall be an architect registered pursuant to Chapter 4703. of the Revised Code, with recognized ability and experience in the architecture of residential buildings, and one, chosen from a list of three names the Ohio municipal league submits to the director, shall be a mayor of a municipal corporation in which the Ohio residential building code is being enforced in the municipal corporation by a certified building department.

(B) The director shall make appointments to the advisory committee within ninety days after May 27, 2005. Terms of office shall be for three years, with each term ending on the date three years after the date of appointment. Each member shall hold office from the date of appointment until the end of the term for which the member was appointed. The director shall fill a vacancy in the manner provided for initial appointments. Any member appointed to fill a vacancy in an unexpired term shall hold office for the remainder of that term.

(C) The advisory committee shall do all of the following:

(1) Recommend to the board of building standards a building code for residential buildings. The committee shall recommend a code that it models on a residential building code a national model code organization issues, with adaptations necessary to implement the code in this state. If the board of building standards decides not to adopt a code the committee recommends, the committee shall revise the code and resubmit it until the board adopts a code the committee recommends as the state residential building code;

(2) Advise the board regarding the establishment of standards for certification of building officials who enforce the state residential building code;

(3) Assist the board in providing information and guidance to residential contractors and building officials who enforce the state residential building code;

(4) Advise the board regarding the interpretation of the state residential building code;

(5) Develop guidelines to use in determining what is a "workerlike manner" in the construction and rehabilitation of residential buildings as referenced in section 1312.20 of the Revised Code;

(6) Adopt rules under Chapter 119. of the Revised Code to establish dispute resolution procedures for the timely resolution of disputes between an owner and a contractor regarding an alleged breach of warranty or the construction of a residential building when the contractor has provided an express warranty that complies with division (A) of section 1312.20 of the Revised Code. The rules shall specify that decisions made pursuant to these dispute resolution procedures are not binding on the owner or other parties involved in the dispute;

(7) Provide other assistance the committee considers necessary.

(D) In making its recommendation to the board pursuant to division (C)(1) of this section, the advisory committee shall consider all of the following:

(1) The impact that the state residential building code may have upon the health, safety, and welfare of the public;

(2) The economic reasonableness of the residential building code;

(3) The technical feasibility of the residential building code;

(4) The financial impact that the residential building code may have on the public's ability to purchase affordable housing.

(E) Members of the advisory committee shall receive no salary for the performance of their duties as members, but shall receive their actual and necessary expenses incurred in the performance of their duties as members of the advisory committee and shall receive a per diem for each day in attendance at an official meeting of the committee, to be paid from the industrial compliance operating fund in the state treasury, using fees collected in connection with residential buildings pursuant to division (F)(2) of section 3781.102 of the Revised Code and deposited in that fund.

(F) The advisory committee is not subject to divisions (A) and (B) of section 101.84 of the Revised Code.

Section 2. That existing sections 1345.01, 4740.04, and 4740.14 of the Revised Code are hereby repealed.