To amend sections 4722.02 and 4745.01 and to enact sections 4785.01 to 4785.17, 4785.20, and 4785.99 of the Revised Code to require licensure of residential construction contractors and to create the Residential Builders' and Maintenance and Alteration Contractors' Licensing Board to regulate the licensure and performance of residential construction contractors.

Section 1. That sections 4722.02 and 4745.01 be amended and sections 4785.01, 4785.02, 4785.03, 4785.04, 4785.05, 4785.06, 4785.07, 4785.08, 4785.09, 4785.10, 4785.11, 4785.12, 4785.13, 4785.14, 4785.15, 4785.16, 4785.17, 4785.20, and 4785.99 of the Revised Code be enacted to read as follows:

Sec. 4722.02.  (A) Except as provided in division (C) of this section, no home construction service supplier shall perform any home construction service the cost of which equals or exceeds twenty-five thousand dollars unless the supplier enters into a written home construction services contract with the owner. The contract shall include all agreements and conditions related to the home construction service, including all of the following:

(1) The supplier's name, physical business address, business telephone number, and taxpayer identification number, and information regarding the supplier's license issued under Chapter 4785. of the Revised Code;

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

(3) The address or location of the property where the home construction service is to be performed;

(4) A general description of the home construction service, including the goods and services to be furnished as part of the service;

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

(6) The total estimated cost of the home construction service;

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

(8) A copy of the supplier's certificate of insurance showing general liability coverage in an amount of not less than two hundred fifty thousand dollars;

(9) The dated signatures of the owner and the supplier.

(B)(1) If the total amount of reasonably unforeseen, but necessary, excess costs of a home construction service at any time exceeds five thousand dollars over the course of the entire home construction contract, prior to performing the work related to the excess costs, the home construction service supplier shall provide an owner with a notice that contains a written or oral estimate, depending on which type the owner has designated in the contract.

(2) To determine the type of notice an owner requires when the costs of a home construction service 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 HOME CONSTRUCTION SERVICE REQUIRES EXTRA COSTS ABOVE THE COST SPECIFIED OR ESTIMATED IN THE CONTRACT THAT WERE REASONABLY UNFORESEEN, BUT NECESSARY, AND THE TOTAL OF ALL EXTRA COSTS TO DATE EXCEEDS FIVE THOUSAND DOLLARS OVER THE COURSE OF THE ENTIRE HOME CONSTRUCTION CONTRACT, YOU HAVE A RIGHT TO AN ESTIMATE OF THOSE EXCESS COSTS BEFORE THE HOME CONSTRUCTION SERVICE SUPPLIER BEGINS WORK RELATED TO THOSE COSTS. INITIAL YOUR CHOICE OF THE TYPE OF ESTIMATE YOU REQUIRE:

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

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

(C) A home construction service supplier who enters into a cost-plus contract with an owner for a home construction service need not comply with the requirements in divisions (A) and (B) of this section.

Sec. 4745.01.  (A) "Standard renewal procedure," as used in Chapters 905., 907., 909., 911., 913., 915., 918., 921., 923., 927., 942., 943., 953., 1321., 3710., 3713., 3719., 3742., 3748., 3769., 3783., 3921., 3951., 4104., 4105., 4143., 4169., 4561., 4703., 4707., 4709., 4713., 4715., 4717., 4723., 4725., 4727., 4728., 4729., 4731., 4733., 4734., 4735., 4739., 4741., 4747., 4749., 4752., 4753., 4755., 4757., 4758., 4759., 4761., 4766., 4773., and 4775., and 4785. of the Revised Code, means the license renewal procedures specified in this chapter.

(B) "Licensing agency," as used in this chapter, means any department, division, board, section of a board, or other state governmental unit subject to the standard renewal procedure, as defined in this section, and authorized by the Revised Code to issue a license to engage in a specific profession, occupation, or occupational activity, or to have charge of and operate certain specified equipment, machinery, or premises.

(C) "License," as used in this chapter, means a license, certificate, permit, card, or other authority issued or conferred by a licensing agency by authority of which the licensee has or claims the privilege to engage in the profession, occupation, or occupational activity, or to have control of and operate certain specific equipment, machinery, or premises, over which the licensing agency has jurisdiction.

(D) "Licensee," as used in this chapter, means either the person to whom the license is issued or renewed by a licensing agency, or the person, partnership, or corporation at whose request the license is issued or renewed.

(E) "Renewal" and "renewed," as used in this chapter and in the chapters of the Revised Code specified in division (A) of this section, includes the continuing licensing procedure provided in Chapter 3748. of the Revised Code and rules adopted under it and in sections 1321.05 and 3921.33 of the Revised Code, and as applied to those continuing licenses any reference in this chapter to the date of expiration of any license shall be construed to mean the due date of the annual or other fee for the continuing license.

Sec. 4785.01.  As used in this chapter:

(A) "Nonresidential building" and "residential building" have the same meanings as in section 3781.06 of the Revised Code.

(B) "Residential builder" means either of the following:

(1) A person who is engaged in the construction of a residential building or a combination residential and nonresidential building and who, for a fixed sum, price, fee, percentage, valuable consideration, or other compensation other than wages for personal labor only, undertakes with another or offers to undertake or purports to have the capacity to undertake with another for the erection, construction, replacement, repair, alteration, or an addition to, subtraction from, improvement of, wrecking of, or demolition of, a residential building or combination residential and nonresidential building;

(2) A person who erects a residential building or combination residential and nonresidential building.

(C) "Residential maintenance and alteration contractor" means either of the following:

(1) A person who, for a fixed sum, price, fee, percentage, valuable consideration, or other compensation other than wages for personal labor only, undertakes with another for the repair, alteration, or an addition to, subtraction from, improvement of, wrecking of, or demolition of a residential building or combination residential and nonresidential building, the building of a garage, or laying of concrete on residential property;

(2) A person who engages in the purchase, substantial rehabilitation or improvement, and resale of a residential building, and who engages in that activity on the same building more than twice in one calendar year.

(D)(1) "Salesperson" means an employee or agent, other than a qualifying officer, of a residential builder or residential maintenance and alteration contractor licensed under this chapter, who for a salary, wage, fee, percentage, commission, or other consideration, sells or attempts to sell, negotiates or attempts to negotiate, solicits for or attempts to solicit for, obtains or attempts to obtain a contract or commitment for, or furnishes or attempts or agrees to furnish, the goods and services of a residential builder or residential maintenance and alteration contractor.

(2) "Salesperson" does not include a person working for a residential builder or residential maintenance and alteration contractor licensed under this chapter who makes sales that are occasional and incidental to the person's principal employment.

(E) "Wages" means money paid or to be paid on an hourly or daily basis by an owner, lessor, or occupant of a residential building or combination residential and nonresidential building as consideration for the performance of personal labor on the structure by a person who does not perform or promise to perform the labor for any other fixed sum, price, fee, percentage, valuable consideration, or other compensation and who does not furnish or agree to furnish the material or supplies required to be used in the performance of the labor or an act listed in division (B) or (C) of this section.

Sec. 4785.02.  (A) Except as otherwise provided in division (B) of this section, no person shall engage or attempt to engage in the practice of a residential builder, residential maintenance and alteration contractor, or salesperson unless the person is licensed pursuant to this chapter.

(B) This chapter does not apply to any of the following persons:

(1) An authorized representative of the United States government, this state, or a political subdivision of this state;

(2) An owner of property, with reference to a residential building on the property for the owner's own use and occupancy;

(3) An owner of rental residential property, with reference to the maintenance and alteration of that property;

(4) An officer of the court acting within the terms of the officer's office;

(5) A person other than a salesperson who engages solely in the business of performing work and services under contract with a residential builder or a residential maintenance and alteration contractor licensed under this chapter;

(6) A person working on one undertaking or project by one or more contracts, the aggregate contract price for which labor, material, and any other item is less than six hundred dollars;

(7) An electrical contractor who is licensed under Chapter 4740. of the Revised Code or who holds a certificate issued by the state fire marshal pursuant to section 3737.65 of the Revised Code, only with respect to the electrical installation, maintenance, or repair work performed by the contractor;

(8) A plumbing contractor licensed under Chapter 4740. of the Revised Code only with respect to plumbing installation, maintenance, or repair work performed by the contractor;

(9) A heating, ventilating, and air conditioning contractor licensed under Chapter 4740. of the Revised Code, only with respect to any heating, ventilating, and air conditioning installation, maintenance, or repair work performed by the contractor;

(10) A refrigeration contractor licensed under Chapter 4740. of the Revised Code, only with respect to refrigeration installation, maintenance, or repair work performed by the contractor.

(C) The exemption described in division (B)(6) of this section does not apply if the work is only a part of a larger or major operation, regardless of whether the operation is undertaken by the same or a different residential builder or residential maintenance and alteration contractor, or in which a division of the operation is made in contracts of amounts less than six hundred dollars to evade compliance with this chapter.

Sec. 4785.03.  (A) There is hereby created in the department of commerce the residential builders' and maintenance and alteration contractors' board. The board shall consist of the following nine members, who shall be appointed by the governor with the advice and consent of the senate:

(1) Four members who are residential builders licensed under this chapter;

(2) Two members who are maintenance and alteration contractors licensed under this chapter;

(3) Three members who represent the general public, one of whom is certified under section 3781.10 of the Revised Code to inspect residential buildings.

(B) Each member of the board shall be at least eighteen years of age and shall be a resident of this state. The director of commerce is an ex officio member of the board and shall not vote on any matter before the board and is not a member for purposes of determining whether a quorum is present. In making appointments to the board, the governor shall seek nominations from a wide range of interested groups and persons, including appropriate professional associations, consumer associations, labor unions, and other organizations or individuals.

(C) Not later than ninety days after the effective date of this section, the governor shall make the initial appointments to the board. Of the initial appointments to the board, one member representing residential builders, one member representing residential maintenance and alteration contractors, and one member representing the general public shall be appointed for terms of four years; two members representing residential builders and one member representing the general public shall be appointed for terms of three years; and the remaining members shall be appointed for a term of two years. Thereafter, each term shall be for four years, ending on the same day of the same month as the term that it succeeds. Each member shall hold office from the date of appointment until the end of the term for which appointed. Vacancies shall be filled in the manner provided for original appointments. A member appointed to fill a vacancy prior to the expiration of a term shall hold office for the remainder of that term. A member shall continue in office subsequent to the expiration of the term until the member's successor takes office. No member may be appointed for more than two consecutive terms of four years.

(D) Each member of the board shall be paid an amount fixed pursuant to division (J) of section 124.15 of the Revised Code for each day or portion thereof spent in the discharge of the member's official duties and shall be reimbursed for the member's actual and necessary expenses incurred in the discharge of those duties.

(E) The board shall meet as often as necessary to fulfill its duties under this chapter, but shall meet not less than twice a year and at other dates set by the director. A majority of the members appointed and serving shall constitute a quorum. A member of a board shall not vote by proxy.

(F) The board annually shall elect a chairperson, a vice-chairperson, and other officers the board determines necessary. The board may adopt bylaws for the regulation of its internal affairs. The board shall report its activities to the director annually and at any additional time as the director requests.

Sec. 4785.04.  (A) The residential builders' and maintenance and alteration contractors' board shall do all of the following:

(1) Interpret a licensure requirement of this chapter, and, if necessary, furnish aid in an investigation conducted under section 4785.10 of the Revised Code;

(2) Assist the director of commerce in implementing this chapter;

(3) Adopt any rules as required under this chapter that are necessary and appropriate in accordance with Chapter 119. of the Revised Code;

(4) Impose, after a hearing conducted pursuant to Chapter 119. of the Revised Code, any penalties that the board determines appropriate in accordance with sections 4785.12 and 4785.13 of the Revised Code;

(5) Aid the director in interpreting a licensure requirement set forth in this chapter that is incomplete or subjective in nature to determine whether the person seeking a license or a renewal has satisfied the requirements for the license or renewal;

(6) Develop with the director the examinations required under sections 4785.05 and 4785.09 of the Revised Code.

(B) The examinations developed by the board and the director pursuant to division (A)(6) of this section shall test an applicant's or licensee's knowledge of the obligations of a residential builder or residential maintenance and alteration contractor to the public and to the applicant's or licensee's principal, and the applicant's or licensee's knowledge of the laws relating to the license for which the applicant applied or that the licensee holds.

The board and the director, in developing the examination under that division, may adopt an examination or test prepared by another agency if the board and the director determine that the examination or test serves as a basis for determining whether a person has the knowledge and skills to perform as a residential builder, residential maintenance and alteration contractor, or salesperson. Notwithstanding section 121.22 of the Revised Code, the material required by the board and the director to develop an examination may be considered by the board in an executive session, if the board satisfies the requirements of division (G) of that section. The board and the director, in determining the form of the recommended examination, shall give special emphasis to an alternative form of testing that permits a person to demonstrate a special qualification the person may have that is not evident under a written examination, but is related to being a residential builder, residential maintenance and alteration contractor, or salesperson. The alternative form of testing shall be structured to give weight to a person's experience, noninstitutional training, and innate skills and shall be flexible enough to enable a person with a mental or physical disability to demonstrate that the person has the requisite knowledge and skills.

(C)(1) A member of the board, at the discretion of the board, may attend an informal conference conducted under section 4785.14 of the Revised Code.

(2) The board may adopt rules to establish the minimum standards of acceptable practice as a residential builder, residential maintenance and alteration contractor, or salesperson.

Sec. 4785.05.  (A) The director of commerce shall issue a license to an applicant for a residential builder license, residential maintenance and alteration contractor license, or a salesperson license if the applicant does all of the following:

(1) Satisfactorily demonstrates to the director that the applicant is of good moral character and is financially stable;

(2) Submits a copy of a driver's license, commercial driver's license, or state identification card issued pursuant to Chapter 4506. or 4507. of the Revised Code or the equivalent law of another state, to demonstrate proof of identity;

(3) Passes the examination described in divisions (A)(6) and (B) of section 4785.04 of the Revised Code;

(4) Maintains a principal place of business in this state;

(5) Pays the fees required under section 4785.20 of the Revised Code.

(B) An applicant for a salesperson license is not required to satisfy the requirement described in division (A)(4) of this section to receive a salesperson license.

(C) Notwithstanding division (A) of this section, a person or qualifying officer for a corporation or member of a partnership or other business association who holds a residential builder or residential maintenance and alteration contractor license is not required to retake an examination for that license when applying for an additional license. However, a residential maintenance and alteration contractor who holds a license and applies for a license as a residential builder is required to take an examination for the residential builder license.

(D) A residential builder or residential maintenance and alteration contractor shall submit the application for a salesperson license on behalf of an employee of the builder or contractor who wishes to be licensed as a salesperson.

(E) If a residential builder or residential maintenance and alteration contractor has more than one place of business in this state, the director shall issue a branch license to the residential builder or residential maintenance and alteration contractor for each place of business maintained. A residential builder or residential maintenance and alteration contractor shall submit an application to the director for each branch office.

(F) A residential builder or residential maintenance and alteration contractor licensed under this chapter shall report to the director a change of name or address or a change of members or addresses of the partnership, association, or corporation holding a license under this chapter within thirty days after the change occurs.

Sec. 4785.06.  (A)(1) A person issued a license as a residential maintenance and alteration contractor under section 4785.05 of the Revised Code is authorized to engage in the following crafts or trades:

(a) Carpentry;

(b) Concrete;

(c) Swimming pool installation;

(d) Waterproofing a basement;

(e) Excavation;

(f) Insulation work;

(g) Masonry work;

(h) Painting and decorating;

(i) Roofing;

(j) Siding and gutters;

(k) Screen or storm sash installation;

(l) Tile and marble work;

(m) House wrecking.

(2) The director of commerce shall specify on the license the particular craft or trade for which the licensee is qualified to perform. Nothing in this section prohibits a residential maintenance and alteration contractor from taking and executing a contract involving the use of two or more crafts or trades if the performance of the work in the craft or trade other than the craft or trade for which the contractor is licensed is incidental and supplemental to the performance of work in the craft or trade for which the contractor is licensed.

(B) A salesperson shall be licensed in the employ of only one residential builder or residential maintenance and alteration contractor. If a licensed salesperson wishes to change employment from one residential builder or residential maintenance and alteration contractor to another, the salesperson shall forward the license to the director of commerce and the new residential builder or residential maintenance and alteration contractor shall apply for a transfer and the issuance of a new license under the salesperson's new employer.

Sec. 4785.07.  If a corporation, partnership, association, limited liability company, or other entity applies for a license under section 4785.05 of the Revised Code, the applicant shall designate one of its officers, partners, members, or managing agents as a qualifying officer who, upon taking and passing the examination, and satisfying all other requirements of this chapter, shall receive a license to act for the entity. The qualifying officer also shall obtain and maintain a license under this chapter as an individual. The qualifying officer is responsible for exercising the supervision or control of the building or construction operations necessary to secure full compliance with this chapter and the rules adopted under it. The director of commerce shall not issue a license to a corporation, partnership, association, limited liability company, or other entity unless each partner, trustee, director, officer, or member or a person exercising control of the entity is at least eighteen years of age and satisfies the requirements for a license under section 4785.05 of the Revised Code other than those requirements relating to knowledge and experience. If an individual licensee is also a qualifying officer, the director shall list the individual's name and license number on any license issued to the individual as a qualifying officer. In the case of a license issued under this section, each officer, partner, member, or managing agent, regardless of whether the person is the qualifying officer, shall provide a copy of the person's driver's license, commercial driver's license, or state identification card issued pursuant to Chapter 4506. or 4507. of the Revised Code or the equivalent law of another state for use by the director only for identification purposes.

The license issued to a corporation, partnership, association, limited liability company, or other entity is suspended when a license or license application of a qualifying officer, partner, trustee, director, officer, member, or a person exercising control of the entity is suspended, revoked, or denied. The suspension remains in effect until the residential builders' and maintenance and alteration contractors' board determines that the disability created by the suspension, revocation, or denial has been removed.

If a qualifying officer of a licensee ceases to be the licensee's qualifying officer, the licensee's license is suspended. However, upon request, the director may permit the license to remain in force for a reasonable time to permit the qualification of a new qualifying officer.

Sec. 4785.08.  Notwithstanding division (A)(4) of section 4785.05 of the Revised Code, the director of commerce may issue a license under that section to an applicant who does not have a principal place of business in this state if the applicant otherwise complies with this chapter. The director shall not issue a license to a foreign corporation as defined in section 1701.01 of the Revised Code unless the corporation is authorized to do business in this state by the secretary of state. The applicant shall file an irrevocable consent to service of process. The consent shall be signed by the applicant or by an authorized officer, member, or partner of the applicant and shall be notarized. If the applicant is a corporation, the consent shall be accompanied by a certified copy of the resolution of the corporation authorizing the consent. A process or pleading served upon the director shall be sufficient service upon the licensee. A process or pleading served upon the director under this section shall be in duplicate. The director immediately shall forward by registered mail one copy of the process or pleading to the main office of the licensee served.

Sec. 4785.09.  A license issued under section 4785.05 or 4785.08 of the Revised Code is valid for a period of three years after the date the license is issued. The license shall be renewed in accordance with the standard renewal procedure under Chapter 4745. of the Revised Code, except that, notwithstanding section 4745.02 of the Revised Code, the director of commerce shall cause to be mailed the notice and renewal application for a residential builder or residential maintenance and alteration contractor license on or before the sixtieth day prior to the expiration of the license. The director shall renew a salesperson license if the licensee so requests and pays the fee listed in section 4785.20 of the Revised Code. To renew a residential builder license or residential maintenance and alteration contractor license, a licensee shall do all of the following:

(A) State in the renewal application that the licensee has a current copy of the residential building code in effect in the area where the licensee performs work;

(B) Pass the examination described in divisions (A)(6) and (B) of section 4785.04 of the Revised Code;

(C) Pay the fees listed in section 4785.20 of the Revised Code for the examination and renewal.

For purposes of section 4745.02 of the Revised Code, the director shall not accept a renewal application for a residential builder or residential alteration and maintenance contractor license until the licensee passes the required examination.

Sec. 4785.10.  (A) Any person may file a complaint with the director of commerce that alleges that a person has violated this chapter or a rule adopted or order issued under it. A complaint shall be filed not later than eighteen months after the latest of the following events regarding a residential building or a combination of residential and nonresidential building:

(1) In the case of a residential maintenance and alteration contract, completion of the contract or occupancy or purchase of the building;

(2) In the case of a project involving construction of a new residential building or requiring an occupancy permit, issuance of the certificate of occupancy or temporary certificate of occupancy or closing.

(B) A person shall describe in writing in the complaint submitted to the director the factual basis for the allegation. The person shall send a copy of the initial complaint to the licensee identified in the complaint concurrent with the submission of the complaint to the director.

(C) If the complaint is filed by an owner of a building, the director shall proceed with an investigation only if the owner demonstrates that the owner provided notice to the licensee describing reasonable times and dates that the building was accessible for any needed repairs and submits proof acceptable to the director that the repairs were not made within sixty days after the date the notice was sent. The director may waive the requirements of this division if the director determines that a waiver is necessary to safeguard the building or to protect an occupant's health and safety. If the director waives the requirements, the director may utilize any remedy available under division (A) of section 4785.11 of the Revised Code.

(D) The director, upon receipt of a complaint, immediately shall begin an investigation of the allegations of the complaint and shall open a correspondence file. The director shall make a written acknowledgment of the complaint within fifteen days after receipt of the complaint to the person making the complaint. If the complaint is made by the director, the director shall designate one or more employees of the director to act as the person making the complaint. The director shall conduct the investigation.

(E) The director shall request the appropriate building official to inspect the property that is the subject of the complaint. Upon receipt of a building inspection report issued to the director by a state or local building enforcement official that verifies or confirms the substance of a complaint, the director shall send by certified mail a copy of the verified complaint to the licensee. If the director does not send a copy of the verified complaint within thirty days after receipt of the building inspection report, the residential builders' and maintenance and alteration contractors' board shall not assess a fine against the licensee under section 4785.13 of the Revised Code, but the director may pursue restitution, license suspension, or other remedies provided under that section.

(F) If the owner and a licensed residential builder or residential maintenance and alteration contractor have agreed contractually on mutually acceptable performance guidelines relating to workmanship, the director shall consider those guidelines in the director's evaluation of the complaint. The guidelines shall be consistent with the residential building code adopted pursuant to Chapter 3781. of the Revised Code.

(G) In furtherance of an investigation, the director may request that the attorney general petition a court of competent jurisdiction to issue a subpoena requiring a person to appear before the director and be examined with reference to a matter within the scope of the investigation and to produce books, papers, or documents pertaining to the investigation.

Sec. 4785.11.  (A) The director of commerce shall conclude an investigation conducted under section 4785.10 of the Revised Code within thirty days after the complaint is filed. The director may take additional time if the director gives the parties to the complaint written notice of the extension before the initial thirty-day period expires.

If the investigation does not disclose a violation of this chapter or a rule adopted or an order issued under it, the director shall close the complaint. The director shall forward the reasons for closing the complaint to the parties, who then may provide additional information to reopen the complaint.

If the investigation discloses evidence of a violation, the director shall prepare the appropriate action against the person, which may be any of the following:

(1) A formal complaint;

(2) A cease and desist order;

(3) Summary suspension;

(4) A citation.

(B)(1) If the director issues a formal complaint under division (A)(1) of this section, the director shall serve the formal complaint upon the parties to the complaint. At the same time, the director shall serve the respondent with a notice that includes both of the following:

(a) An offer to choose one of the following:

(i) An opportunity to meet with the director to negotiate a settlement of the matter;

(ii) An opportunity for a hearing under Chapter 119. of the Revised Code.

(b) A description of the process for an informal conference under section 4785.14 of the Revised Code and for a hearing under Chapter 119. of the Revised Code.

(2) The respondent, within fifteen days after the receipt of notice described in division (B)(1) of this section, shall select one of the options described in that division. If a respondent does not select one of those options within that time period, then the director shall proceed with a hearing held under Chapter 119. of the Revised Code.

(C) If a cease and desist order has been issued under division (A)(2) of this section, the person ordered to cease and desist may request a hearing in accordance with Chapter 119. of the Revised Code. Upon a violation of a cease and desist order, the attorney general may apply in a court with appropriate jurisdiction to restrain and enjoin, temporarily or permanently, or both, the person from further violating the cease and desist order.

(D) The director may issue a summary suspension under division (A)(3) of this section based on an affidavit by a person familiar with the facts set forth in the affidavit, or, if appropriate, based upon an affidavit on information and belief that an imminent threat to the public health, safety, and welfare exists.

(E)(1) A citation issued pursuant to division (A)(4) of this section shall contain all of the following:

(a) The date of the citation;

(b) The name and title of the individual issuing the citation;

(c) The name and address of the respondent, indicating that the respondent is being cited for a violation of this chapter or rules adopted or orders issued under it;

(d) A brief description of the conduct or conditions that are considered to be a violation and a reference to the section of the chapter, the rule, or the order the respondent is alleged to have violated;

(e) The proposed penalties or actions required for compliance, including the payment of a fine that shall not exceed one hundred dollars for each violation;

(f) A space for the respondent to sign as a receipt for the citation;

(g) A space for the respondent to indicate that the respondent accepts the citation and agrees to comply or to indicate that the respondent contests the violation contained in the citation;

(h) A notice that the respondent must accept or reject the terms of the citation within thirty days after the date of the citation;

(i) A brief description of the hearing process under Chapter 119. of the Revised Code and the process for settlement through an informal conference as described in section 4785.14 of the Revised Code.

(2) The director may send a citation to a respondent by certified mail, return receipt requested, or an employee of the department of commerce may deliver the citation in person.

(3) If a respondent accepts the conditions set forth in a citation, the respondent, within thirty days after receiving the citation, shall sign the citation and return it to the director along with any fine or other material required to be submitted by the terms of the citation. The citation and accompanying material shall be placed in the person's records with the director, indicating the nature of the violation and that the person accepted the conditions imposed. A citation issued under this section shall have the same force and effect as a final order issued by the residential builders' and maintenance and alteration contractors' board and may be disclosed to the public. If no further disciplinary actions are placed upon the person's record within five calendar years after the date the citation is issued, the director shall remove the citation and accompanying material from the records. If a respondent so chooses, a one-page explanation prepared by the respondent shall be placed in the director's files and shall be disclosed each time the issuance of the citation is disclosed.

(4) If a respondent does not admit to the violation cited, the respondent may state that fact on the citation and return one copy to the director within the thirty days after the date of the citation. Upon receiving a copy of the citation not admitting to the violation, the director shall implement the process described in division (B) of this section, with the citation serving as the formal complaint.

(5) The signing of a citation as an indication that the citation was received by the respondent shall be considered to be only a receipt of, not an admission to, the violation cited.

Sec. 4785.12.  (A) If a licensee or respondent fails to appear or participate in or defend any action, the residential builders' and maintenance and alteration contractors' board shall issue an order granting by default the relief requested, based upon proof submitted to and findings made by a hearing examiner after a hearing conducted under Chapter 119. of the Revised Code.

(B) Within sixty days after receipt of a hearing examiner's report, the board shall meet and make a determination of the penalties or disciplinary action to be assessed under section 4785.13 of the Revised Code. The board shall make the determination based on the hearing examiner's report. If the board does not determine the appropriate penalty to be assessed or action to be taken within that time period, the director of commerce may determine the appropriate penalty and issue a final order. A member of the board who has participated in an investigation of a complaint filed with the director or who has attended an informal conference under section 4785.14 of the Revised Code shall not participate in making a final determination regarding that complaint.

Sec. 4785.13.  (A) A licensee or applicant who commits one or more of the following actions may be subject to any of the disciplinary actions set forth in division (B) of this section:

(1) Abandonment without legal excuse of a contract, construction project, or operation relating to an activity described in division (B), (C), or (D) of section 4785.01 of the Revised Code that is engaged in or undertaken by the licensee;

(2) Diversion of funds or property received for prosecution or completion of a specific construction project or operation, or for a specified purpose in the prosecution or completion of a construction project or operation, and the funds or property are applied or used for another construction project or operation, obligation, or purposes;

(3) Failure to account for or remit money coming into the person's possession that belongs to others;

(4) A willful departure from or disregard of plans or specifications in a material respect and prejudicial to another, without consent of the owner or an authorized representative and without the consent of the person entitled to have the particular construction project or operation completed in accordance with the plans and specifications;

(5) A willful violation of the building laws of this state or of a political subdivision of this state;

(6) In a residential maintenance and alteration contract, failure to furnish to a lender the purchaser's signed completion certificate executed upon completion of the work to be performed under the contract;

(7) If an individual is a licensed residential builder or licensed residential maintenance and alteration contractor, failure to notify the director of commerce within ten days after a change in the control or direction of the licensee's business resulting from a change in the licensee's partners, directors, officers, or trustees, or a change in the control or direction of the licensee's business resulting from any other occurrence or event;

(8) Failure to deliver to the purchaser the entire agreement of the parties, including any finance or other charge arising out of or incidental to the agreement if the agreement involves repair, alteration, or addition to, subtraction from, improvement of, wrecking of, or demolition of a residential building or combination of residential and nonresidential building, or the building of a garage or laying of concrete on residential property;

(9) If the licensee is a salesperson, failure to pay over immediately upon receipt money received by the salesperson, in connection with a transaction governed by this chapter to the residential builder or residential maintenance and alteration contractor under whom the salesperson is licensed;

(10) Aiding or abetting an unlicensed person to evade this chapter, or knowingly combining or conspiring with, or acting as agent, partner, or associate for an unlicensed person, allowing one's license to be used by an unlicensed person, or acting as or being an ostensible licensed residential builder or licensed residential maintenance and alteration contractor for an undisclosed person who does or has the right to control or direct, or who may have the right to control or direct, directly or indirectly, the operations of a licensee;

(11) Accepting a commission, bonus, or other valuable consideration by a salesperson for the sale of goods or the performance of service specified in this chapter from a person other than the residential builder or residential maintenance and alteration contractor under whom the person is licensed;

(12) Becoming insolvent, filing a bankruptcy action, becoming subject to a receivership, assigning for the benefit of creditors, failing to satisfy judgments or liens, or failing to pay an obligation as it becomes due in the ordinary course of business;

(13) Performing work that does not meet the standards of the applicable residential code;

(14) Practicing fraud or deceit in obtaining a license;

(15) Practicing fraud, deceit, or dishonesty as a residential builder, residential maintenance and alteration contractor, or salesperson;

(16) Violating a rule of conduct of a residential builder, residential maintenance and alteration contractor, or salesperson;

(17) Demonstrating a lack of good moral character;

(18) Committing an act of gross negligence in practicing as a residential builder, residential maintenance and alteration contractor, or salesperson;

(19) Practicing false advertising;

(20) Committing an act that demonstrates incompetence;

(21) Violating any other provision of this chapter or a rule adopted under this chapter for which a penalty is not otherwise prescribed;

(22) Failing to comply with a subpoena issued under this chapter;

(23) Failing to respond to a citation as required by section 4785.11 of the Revised Code;

(24) Violating or failing to comply with a final order issued by the director, including a stipulation, settlement agreement, or a citation.

(B) The residential builders' and maintenance and alteration contractors' board may do any of the following with respect to a person who commits an act described in division (A) of this section:

(1) Place a limitation on a license;

(2) Suspend a license;

(3) Deny issuance or renewal of a license;

(4) Revoke a license;

(5) Assess a fine against a licensee, not to exceed ten thousand dollars per violation;

(6) Censure;

(7) Place a licensee on probation;

(8) Require that restitution be made, based upon proof submitted to and findings made by the hearing examiner after a hearing.

(C) If restitution is required to be made under division (B)(8) of this section, the board may suspend the license of the person required to make the restitution until the restitution is made.

(D) A suspension, revocation, or denial of a license of a person shall suspend, revoke, or deny any other license held or applied for by that person issued under this chapter. A suspension, revocation, or denial of a license held by a qualifying officer of a corporation, partnership, association, limited liability company, or other entity by the board shall suspend, revoke, or deny any other license held or applied for under this chapter by that qualifying officer.

Sec. 4785.14.  (A) A residential builder or residential maintenance and alteration contractor licensed under this chapter may contractually provide for an alternative dispute resolution procedure to resolve complaints filed with the director of commerce. The procedure shall be conducted by a neutral third party for determining the rights and responsibilities of the parties and shall be initiated by the licensee, who shall provide notice of the initiation of the procedure to the complainant by certified mail not less than thirty days before the commencement of that procedure. The procedure shall be conducted at a location mutually agreed to by the parties.

(B) Failure of the person bringing a complaint against a licensee to utilize a contractually provided alternative dispute resolution procedure shall be an affirmative defense to an action brought in a court of this state against a licensee under this chapter.

The director may initiate a proceeding against a licensee under section 4785.11 of the Revised Code if the licensee has contractually provided for an alternative dispute resolution procedure that has not been utilized and completed, only if any of the following apply:

(1) The licensee has not complied with a decision or order issued as a result of that alternative dispute resolution procedure.

(2) That alternative dispute resolution procedure was not fully completed within ninety days after the filing of the complaint with the director.

(3) An alternative dispute resolution procedure meeting the requirements of division (A) of this section is not available to the complainant.

(C) At any time during an investigation under section 4785.10 of the Revised Code or after the issuance of a formal complaint, the director may bring together the parties to a complaint for an informal conference. At the informal conference, the director shall attempt to resolve issues raised in the complaint and may attempt to aid the parties in reaching a formal settlement or stipulation.

A member of the residential builders' and maintenance and alteration contractors' board, at the discretion of the board, may attend an informal conference. An informal conference may result in a settlement, consent order, waiver, default, or other method of settlement agreed upon by the parties and the director. A settlement may include the denial, revocation, suspension, or limitation of a license; fine; censure; probation; or restitution. The board may reject a settlement and require a hearing under Chapter 119. of the Revised Code.

If an informal conference is not held or does not result in a settlement of a complaint, a hearing pursuant to Chapter 119. of the Revised Code shall be held. A member of the board may attend a hearing.

Sec. 4785.15.  (A) A residential builder or residential maintenance and alteration contractor shall not bring or maintain an action in a court of this state for the collection of compensation for the performance of an act or contract for which a license is required under this chapter without proving that the residential builder or residential maintenance and alteration contractor was licensed under this chapter during the performance of the act or contract.

(B) A residential builder or residential maintenance and alteration contractor shall not impose or take any legal or other action to impose a lien on real property unless that builder or contractor was licensed under this chapter during the performance of the act or contract.

(C) Divisions (A) and (B) of this section apply only to contracts entered into on or after the effective date of division (A) of section 4785.02 of the Revised Code.

Sec. 4785.16.  (A) A prosecuting attorney or the attorney general may bring an action for a civil violation in a court of competent jurisdiction against a person not licensed under this chapter who has violated division (A) of section 4785.02 of the Revised Code. The court shall assess a civil fine of not less than five thousand dollars and not more than twenty-five thousand dollars and any additional civil damages or restitution the court considers appropriate.

(B) If the attorney general considers it necessary, the attorney general shall intervene in and prosecute all cases arising under this chapter. Nothing in this division prohibits the director of commerce from bringing any civil, criminal, or administrative action for the enforcement of division (A) section 4785.02 of the Revised Code. The director has standing to bring an administrative action or to directly bring an action in a court of competent jurisdiction regarding unlicensed practice of an occupation.

(C) The attorney general or the appropriate prosecuting attorney may utilize the forfeiture provisions of Chapter 2981. of the Revised Code for items seized and determined to be proceeds of a crime, substituted proceeds of a crime, or the instrumentality of a crime.

Sec. 4785.17.  The director of commerce shall post on the web site maintained by the department of commerce any final order of the residential builders' and maintenance and alteration contractors' board and the date the order was issued. The director shall post the order within thirty days after the order is issued.

The director annually shall post on the web site the number of final orders of the board.

Sec. 4785.20.  (A) The director of commerce shall charge the following fees with respect to administering this chapter:

(1) An application processing fee of fifteen dollars;

(2) A fee of fifty dollars to take the complete examination for a license or renewal of a license as a residential builder or residential maintenance and alteration contractor;

(3) A fee of thirty dollars to take the law and rules portion of the examination for a license or renewal of a license as a residential builder or residential maintenance and alteration contractor;

(4) A fee of thirty dollars to take the practice or trades portion of the examination for a license or renewal of a license as a residential builder or residential maintenance and alteration contractor;

(5) A fee of thirty dollars to take the salesperson examination;

(6) An examination review fee of twenty dollars;

(7) A license and renewal fee of fifty dollars;

(8) A late renewal fee of twenty dollars;

(9) A duplicate license fee of ten dollars;

(10) A change of name, address, or employer fee of ten dollars if the change results in the issuance of a new document.

(B) There is hereby created in the state treasury the builder enforcement fund. The director shall deposit any fees and fines the director receives under this chapter into the fund. The director shall use the fund to enforce this chapter and to reimburse the attorney general for the reasonable cost of services provided to the director and for expenses incurred in prosecutions for unlicensed practice or a prosecuting attorney for expenses incurred in conducting prosecutions of unlicensed practice.

Sec. 4785.99.  Whoever violates division (A) of section 4785.02 of the Revised Code is guilty of a misdemeanor, punishable by a fine of not less than five thousand dollars or more than twenty-five thousand dollars, imprisonment for not more than one year, or both. If the offender has been previously convicted of a violation of that division, the person is guilty of a misdemeanor punishable by a fine of not less than five thousand dollars or more than twenty-five thousand dollars, imprisonment for not more than two years, or both. In the case of an offense that causes death or serious injury, the person is guilty of a felony punishable by a fine of not less than five thousand dollars or more than twenty-five thousand dollars, imprisonment for not more than four years, or both.

Section 2.  That existing sections 4722.02 and 4745.01 of the Revised Code are hereby repealed.

Section 3. Division (A) of section 4785.02 of the Revised Code, as enacted by this act, shall take effect one hundred eighty days after the effective date of this act.

Section 4. (A) Notwithstanding section 4785.03 of the Revised Code, as enacted by this act, the Governor may appoint, as the initial members of the Residential Builders' and Maintenance and Alteration Contractors' Board who are required to be licensed under that section, an individual who satisfies either of the following qualifications:

(1) The individual is certified or otherwise approved by a national organization that certifies or otherwise approves individuals in the occupation to be licensed by the Board.

(2) The individual has actively engaged in the business of a residential builder or residential maintenance and alteration contractor, taught in an educational institution that prepares applicants for licensure as a residential builder or residential maintenance and alteration contractor, or both, for not less than two years immediately preceding the date of the individual's appointment.

(B) Within three years after the effective date of this act, each individual appointed under division (A) of this section shall be licensed as required under section 4785.02 of the Revised Code, as enacted by this act.