Bill Text: OH SB338 | 2011-2012 | 129th General Assembly | Engrossed
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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Senator Bacon
Cosponsors:
Senators Beagle, Hughes, Brown, Turner, Hite, Kearney, Lehner, Sawyer, Schiavoni, Skindell, Tavares, Wagoner
| To enact sections 4720.01, 4720.02, 4720.03, 4720.04, | 1 |
| 4720.05, 4720.051, 4720.06, 4720.07, 4720.08, | 2 |
| 4720.09, 4720.10, 4720.11, and 4720.12 of the | 3 |
| Revised Code to require registration and establish | 4 |
| laws governing the practices of air conveyance | 5 |
| system cleaning servicers. | 6 |
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 |
