Bill Text: OH SB338 | 2011-2012 | 129th General Assembly | Engrossed

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Bill Title: To require registration and establish laws governing the practices of air conveyance system cleaning servicers.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2012-06-13 - Passed 3rd Consideration House [SB338 Detail]

Download: Ohio-2011-SB338-Engrossed.html

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As Passed by the Senate

129th General Assembly Regular Session 2011-2012

Sub. S. B. No. 338

Senator Bacon 

Cosponsors: Senators Beagle, Hughes, Brown, Turner, Hite, Kearney, Lehner, Sawyer, Schiavoni, Skindell, Tavares, Wagoner 

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A BILL

To enact sections 4720.01, 4720.02, 4720.03, 4720.04,

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4720.05, 4720.051, 4720.06, 4720.07, 4720.08,

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4720.09, 4720.10, 4720.11, and 4720.12 of the

3

Revised Code to require registration and establish

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laws governing the practices of air conveyance

5

system cleaning servicers.

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

Section 1.  That sections 4720.01, 4720.02, 4720.03, 4720.04,	7
4720.05, 4720.051, 4720.06, 4720.07, 4720.08, 4720.09, 4720.10,	8
4720.11, and 4720.12 of the Revised Code be enacted to read as	9
follows:	10

Sec. 4720.01.  As used in this chapter:

11

(A) "Air conveyance system cleaning servicer" means any	12
individual or business entity that satisfies both of the	13
following:	14

(1) For compensation, directs, supervises, or has	15
responsibility for the means, method, and manner of performance of	16
air conveyance system cleaning services;	17

(2) Performs or otherwise supervises or directs other	18
individuals who perform air conveyance system cleaning services.	19

(B) "Air conveyance system cleaning service" means the	20
cleaning of a whole system within a forced airstream, consisting	21
of various heating and cooling components.	22

(C) "Consumer" has the same meaning as in section 1345.01 of	23
the Revised Code.	24

(D) "Crime" means any offense involving consumer fraud,	25
predatory marketing practices, misleading advertising practices,	26
or any other offense relating adversely to a person's competence	27
to honestly and safely perform air conveyance system cleaning	28
services.	29

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

30

(F) "Director" means the director of commerce or the	31
director's designee.	32

(G) "Residential property" means any single or multi-unit	33
structure used in whole or in part as a place of dwelling and any	34
accessory construction incidental to the structure. "Residential	35
property" does not include either of the following:	36

(1) An industrialized unit as described in section 3781.06 of	37
the Revised Code;	38

(2) A mobile home as described in section 4501.01 of the	39
Revised Code.	40

Sec. 4720.02. (A) No individual or business entity shall do	41
either of the following without registering with or being assigned	42
a registration by the director of commerce in accordance with this	43
chapter:	44

(1) Act or attempt to act as an air conveyance cleaning	45
system servicer;	46

(2) Advertise in print, put out any sign, card, or other	47
device that would indicate to the public that the individual or	48
business entity is an air conveyance system cleaning servicer in	49
the state, or cause the individual's or business entity's name to	50
be included in a classified advertisement or directory in the	51
state under a classification as an air conveyance system cleaning	52
servicer.	53

(B) No individual or business entity that performs air	54
conveyance system cleaning services shall do any of the following:	55

(1) Represent that a consumer's air conveyance system	56
contains any substance that is dangerous or that continued use by	57
the consumer of their air conveyance system may be harmful when	58
such is not the fact;	59

(2) Represent that the individual or business entity has any	60
sponsorship, approval, or affiliation relating to air conveyance	61
system cleaning services that the individual or business entity	62
does not have;	63

(3) Misrepresent any sponsorship, approval, or affiliation	64
relating to air conveyance system cleaning services that the	65
individual or business entity does have;	66

(4) Misrepresent the benefits of available air conveyance	67
system cleaning services, including the ability to test for and	68
identify mold present in an air conveyance system;	69

(5) Knowingly make a false report to a consumer, or potential	70
consumer, in a solicitation;	71

(6) Fail to make available accurate registration information	72
to a consumer.	73

(C) A violation of any provision of this chapter, including	74
rules adopted by the director of commerce pursuant to section	75
4720.03 of the Revised Code, shall constitute an unfair,	76
deceptive, or unconscionable act or practice under sections	77
1345.01 to 1345.13 of the Revised Code.	78

Sec. 4720.03.  The director of commerce shall adopt rules	79
establishing all of the following:	80

(A) Registration standards, including financial	81
responsibility and work experience requirements;	82

(B) Applicable fees;

83

(C) A system by which consumers can readily identify	84
registered air conveyance system cleaning servicers, that, at a	85
minimum, should consist of a searchable internet database;	86

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

87

Sec. 4720.04.  (A) The director of commerce shall assign each	88
air conveyance system cleaning servicer registrant a unique	89
registration number at the time a registration is approved and	90
shall keep a record of all registration numbers for a period of	91
twenty years.	92

(B) The director may deny issuance or renewal, or revoke, a	93
registration in accordance with section 4720.08 of the Revised	94
Code for failure to comply with, or violation of, the provisions	95
of this chapter or for any other good cause shown within the	96
purpose of the chapter. A denial or revocation shall not be made	97
except upon reasonable notice to, and opportunity to be heard by,	98
the applicant or registrant.	99

(C) The director may do any of the following in enforcing the	100
chapter:	101

(1) In lieu of revoking a registration, suspend a	102
registration for a reasonable time period;	103

(2) In lieu of suspending a registration, assess a monetary	104
penalty to the registrant;	105

(3) In lieu of revoking a registration, suspend a	106
registration for a reasonable time period and assess a monetary	107
penalty to the registrant;	108

(4) Issue a new registration to an applicant whose previous	109
registration was revoked.	110

(D) The director shall prepare, print, and distribute	111
booklets, pamphlets, or other written information that explains	112
the provisions of this chapter and make the information available	113
to consumers.	114

(E) The director shall not issue or renew a registration	115
until the person applying for registration issuance or renewal	116
demonstrates that the administrator of workers' compensation has	117
issued to the person a certificate in accordance with section	118
4123.35 of the Revised Code establishing that the person has paid	119
the required premiums or been granted the privilege to self-insure	120
under Chapter 4123. of the Revised Code.	121

Sec. 4720.05.  (A) To register as an air conveyance system	122
cleaning servicer with the director of commerce as required by	123
division (A) of section 4720.02 of the Revised Code, an individual	124
shall do all of the following:	125

(1) Complete an application for registration on a form	126
provided by the department;	127

(2) Pay a reasonable fee, determined by the director, in an	128
amount sufficient to meet the expenses the department incurs in	129
administering the registration program;	130

(3) File a disclosure statement as described in division (C)	131
of this section with the department.	132

(B) Each air conveyance system cleaning servicer registered	133
under this chapter shall file an amended registration form,	134
provided by the department, within twenty days after any change in	135
the information required on a registration form. No fee shall be	136
required for the filing of an amendment.	137

(C) In accordance with division (A)(3) of this section, every	138
applicant for an air conveyance system cleaning servicer	139
registration shall file a disclosure statement with the director	140
of commerce stating whether the applicant has been convicted of or	141
pleaded guilty to any crime. If any of the information required to	142
be included in the disclosure statement changes, or if additional	143
information should be added after the applicant or registrant	144
files the statement, the applicant or registrant shall provide	145
that information to the director, in writing, within thirty	146
calendar days of the change or addition.	147

Sec. 4720.051. (A) If an individual who applies for	148
registration pursuant to division (A) of section 4720.05 of the	149
Revised Code intends to perform air conveyance system cleaning	150
services as a business entity or intends to supervise or direct	151
individuals who will perform air conveyance system cleaning	152
services for a business entity, that individual, at the time of	153
applying for a registration or any time thereafter, shall request	154
that the individual's registration be assigned to the business	155
entity with whom the individual is associated.	156

(B) If the individual who requests assignment is issued or	157
holds a registration, the director of commerce shall assign the	158
registration in the name of the business entity. The assigned	159
registration shall state the name and position of the individual	160
who assigned the registration to the business entity.	161

(C) If an individual who assigned a registration to a	162
business entity ceases to be associated with the business entity	163
for any reason, including the death of the individual, the	164
individual or business entity shall notify the director of the	165
date on which the individual ceased to be associated with the	166
business entity. A registration assigned to a business entity is	167
invalid ninety calendar days after the date on which the	168
individual who assigned the registration ceases to be associated	169
with the business entity or at an earlier time to which the	170
business entity and the individual agree.	171

In the event that another individual has also assigned a	172
registration to the business entity, the business entity may	173
continue to operate under the valid registration.	174

(D) Any work a business entity or its employees performs	175
under an assigned registration is deemed to be conducted under the	176
personal supervision of the individual named in the assignment.	177

In the event that more than one registration is assigned to a	178
business entity, any work the business entity or its employees	179
performs is deemed to be conducted under the personal supervision	180
of each individual named in each assignment.	181

(E) Any individual who assigns a registration to a business	182
entity under this section shall be actively engaged in business as	183
an air conveyance system cleaning servicer and be readily	184
available for consultation with the business entity to which the	185
registration is assigned.	186

(F) No registration assigned under this section shall be	187
assigned to more than one business entity at a time.	188

Sec. 4720.06.  The provisions of this chapter shall apply to	189
any person engaging in any of the activities regulated by this	190
chapter in the state, including persons whose residence or	191
principal place of business is located outside of the state.	192

Sec. 4720.07.  Each registered air conveyance system cleaning	193
servicer shall annually reregister with the director by completing	194
an application for registration on a form provided by the	195
department and paying a reasonable fee, as determined by the	196
director.	197

Sec. 4720.08.  (A) In accordance with section 4720.04 of the	198
Revised Code, the director of commerce may refuse to issue,	199
suspend, or revoke any registration of an applicant or registrant	200
upon reasonable proof that the applicant or registrant is	201
incapable, for medical or any other good cause, of executing the	202
functions of a registrant in a manner consistent with the public's	203
health, safety, and welfare or has done any of the following:	204

(1) Obtained a registration through fraud, deception, or	205
misrepresentation;	206

(2) Engaged in the use or employment of dishonesty, fraud,	207
deception, misrepresentation, false promise, or false pretense;	208

(3) Engaged in gross negligence, gross malpractice, or gross	209
incompetence;	210

(4) Engaged in repeated acts of negligence, malpractice, or	211
incompetence;	212

(5) Engaged in professional or occupational misconduct as	213
determined by the director;	214

(6) Except as provided in division (E) of this section, been	215
convicted of or pleaded guilty to any crime involving moral	216
turpitude or relating adversely to a person's competence to	217
honestly and safely perform air conveyance system cleaning	218
services;	219

(7) Had the authority to engage in air conveyance system	220
cleaning services revoked or suspended by any other state, agency,	221
or authority for reasons consistent with this section;	222

(8) Violated or failed to comply with the provisions of any	223
rule administered by the director;	224

(9) Was determined to be a noncomplying employer by the	225
administrator of workers' compensation pursuant to Chapter 4123.	226
of the Revised Code.	227

(B) The director shall prohibit an applicant who violates	228
section 4720.02 of the Revised Code from registering as an air	229
conveyance system cleaning servicer for a period of up to six	230
months after the violation.	231

(C) An applicant or registrant whose registration is denied,	232
suspended, or revoked pursuant to division (A) or (B) of this	233
section, upon a written request transmitted to the director within	234
thirty calendar days of the denial, suspension, or revocation, may	235
appeal the decision pursuant to Chapter 119. of the Revised Code.	236

(D) An applicant or registrant shall have the continuing duty	237
to provide any assistance or information requested by the	238
director, and to cooperate in any inquiry, investigation, or	239
hearing conducted by the director regarding the issuance, denial,	240
suspension, or revocation of a registration.	241

(E) Notwithstanding division (A)(6) of this section, the	242
director shall not deny a registration or have a registration	243
suspended or revoked on the basis of any conviction or plea of	244
guilty disclosed if the applicant or registrant has affirmatively	245
demonstrated to the director clear and convincing evidence of the	246
applicant's or registrant's rehabilitation. In determining whether	247
an applicant or registrant has affirmatively demonstrated	248
rehabilitation, the director shall consider the following factors:	249

(1) The nature and responsibility of the position the	250
applicant or registrant would hold;	251

(2) The nature and seriousness of the offense;

252

(3) The circumstances under which the offense occurred;

253

(4) The date of the offense;

254

(5) The age of the applicant or registrant when the offense	255
was committed;	256

(6) Whether the offense was an isolated incident or repeated	257
situation;	258

(7) Any social conditions that may have contributed to the	259
offense;	260

(8) Any evidence of rehabilitation, including good conduct in	261
prison or in the community, counseling or psychiatric treatment	262
received, acquisition of additional academic or vocational	263
schooling, successful participation in correctional work-release	264
programs, or the recommendation of persons who have the applicant	265
or registrant under their supervision.	266

Sec. 4720.09.  Every registered air conveyance system	267
cleaning servicer shall secure, maintain, and file with the	268
director of commerce proof of commercial general liability	269
insurance in a minimum amount of five hundred thousand dollars per	270
occurrence. If a registrant's insurance is to be canceled or is	271
nonrenewable, the registrant shall submit to the director a copy	272
of a new insurance policy or a replacement policy that meets the	273
requirements of this section before the former policy lapses.	274

Sec. 4720.10.  Each registrant shall prominently display the	275
registration number assigned to the registrant, as described in	276
division (A) of section 4720.04 of the Revised Code, in the	277
registrant's place of business, in all advertisements distributed	278
within the state, on business documents, contracts, and	279
correspondence with consumers of air conveyance system cleaning	280
services, and on all commercial vehicles registered in the state	281
that are leased or owned by the registrant and used by the	282
registrant for the purpose of engaging in air conveyance system	283
cleaning services.	284

If a registration has been assigned to a business entity	285
pursuant to section 4720.051 of the Revised Code, the business	286
entity shall display the registration number of the individual	287
named in the assignment. If more than one registration is assigned	288
to a business entity, the business entity shall display the	289
registration number of each individual named in each assignment.	290

Sec. 4720.11.  This chapter and the rules adopted pursuant to	291
it shall supersede any ordinance or regulation of a municipal	292
corporation that provides for licensing or registration of air	293
conveyance system cleaning servicers or for the protection of	294
consumers by bonds or warranties required to be provided by	295
servicers. A municipal corporation may enact ordinances and	296
regulations relating to air conveyance system cleaning servicers	297
that are not provided for in this chapter or in rules adopted by	298
the director of commerce pursuant to this chapter.	299

Sec. 4720.12.  (A) No registered air conveyance system	300
cleaning servicer shall perform any air conveyance system cleaning	301
services unless that servicer enters into a written contract with	302
the consumer. The contract shall clearly and accurately set forth	303
in legible form and understandable language all agreements and	304
conditions related to the service, including all of the following:	305

(1) The legal name of the air conveyance system cleaning	306
servicer, and if the registration has been assigned pursuant to	307
section 4720.051 of the Revised Code, the name of the individual	308
associated with the assignment;	309

(2) The business address and registration number, as	310
described in division (A) of section 4720.04 of the Revised Code,	311
of the air conveyance system cleaning servicer;	312

(3) A copy of the proof of commercial general liability	313
insurance required of a servicer pursuant to section 4720.09 of	314
the Revised Code;	315

(4) The total price or other consideration to be paid by the	316
consumer, including the finance charges.	317

Section 2. Section 4720.02 of the Revised Code, as enacted by	318
this act, shall take effect six months after the effective date of	319
this act.	320