As Passed by the Senate

130th General Assembly Regular Session 2013-2014

Sub. S. B. No. 78

Senator Hughes 

Cosponsors: Senators Brown, Bacon, Burke, Eklund, Gentile, Patton, Peterson, Sawyer, Schiavoni 

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A BILL

To amend sections 4740.01, 4740.02, 4740.04, 4740.05,

1

4740.06, 4740.07, 4740.08, 4740.09, 4740.13, and

2

4740.16, to enact new section 4740.10 and section

3

4740.131, and to repeal section 4740.10 of the

4

Revised Code to make changes to the law regulating

5

specialty construction contractors.

6

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

Section 1. That sections 4740.01, 4740.02, 4740.04, 4740.05,	7
4740.06, 4740.07, 4740.08, 4740.09, 4740.13, and 4740.16 be	8
amended and new section 4740.10 and section 4740.131 of the	9
Revised Code be enacted to read as follows:	10

Sec. 4740.01.  As used in this chapter:

11

(A) "License" means a license the Ohio construction industry	12
licensing board issues to an individual as a heating, ventilating,	13
and air conditioning contractor, refrigeration contractor,	14
electrical contractor, plumbing contractor, or hydronics	15
contractor.	16

(B) "Contractor" means any individual or business entity	17
contracting company that satisfies both of the following:	18

(1) Directs, supervises, or hasHas responsibility for the	19
means, method, and manner of construction, improvement,	20
renovation, repair, or maintenance on a construction project with	21
respect to one or more trades and who offers, identifies,	22
advertises, or otherwise holds out or represents that the	23
individual or business entitycontracting company is permitted or	24
qualified to perform, direct, supervise, or have responsibility	25
for the means, method, and manner of construction, improvement,	26
renovation, repair, or maintenance with respect to one or more	27
trades on a construction project;	28

(2) Performs or otherwise supervises or directsDoes either	29
of the following:	30

(a) Performs construction, improvement, or renovation on a	31
construction project with respect to the individual's or	32
contracting company's trade;	33

(b) Employs tradespersons who perform construction,	34
improvement, or renovation, repair, or maintenance on a	35
construction project with respect to the contractor's	36
individual's or contracting company's trades.	37

(C) "Contracting company" means a company in the construction	38
industry working on construction projects.	39

(D) "Licensed trade" means a trade performed by a heating,	40
ventilating, and air conditioning contractor, a refrigeration	41
contractor, an electrical contractor, a plumbing contractor, or a	42
hydronics contractor.	43

(D)(E) "Tradesperson" means any individual who is supervised	44
or directed by a contractor or who is otherwise employed by a	45
contractor and who engages in construction, improvement,	46
renovation, repair, or maintenance of buildings or structures	47
without assuming responsibility for the means, method, or manner	48
of that construction, improvement, renovation, repair, or	49
maintenance.	50

(E)(F) "Construction project" means a construction project	51
involving a building or structure subject to Chapter 3781. of the	52
Revised Code and the rules adopted under that chapter, but not an	53
industrialized unit or a residential building as defined in	54
section 3781.06 of the Revised Code.	55

(G) "Training agency" means an entity approved by the	56
administrative section of the board to provide continuing	57
education courses.	58

Sec. 4740.02.  (A) There is hereby created within the	59
department of commerce, the Ohio construction industry licensing	60
board, consisting of seventeen residents of this state. The board	61
shall have an administrative section,and three specialty	62
sections: a plumbing and hydronics section, an electrical section,	63
and a heating, ventilating, air conditioning, and refrigeration	64
section. The director of commerce shall appoint all members of the	65
board. The director or the director's designee shall serve as a	66
member of the administrative section and the director shall	67
appoint to the section to represent the public, one member who is	68
not a member of any group certified by any section of the board.	69
Each section, other than the administrative section, shall	70
annually elect a member of its section to serve a one-year term on	71
the administrative section.	72

(B) The plumbing and hydronics section consists of five	73
members, one of whom is a plumbing inspector employed by the	74
department of commerce, a municipal corporation, or a health	75
district, two of whom are plumbing contractors who have no	76
affiliation with any union representing plumbers, and two of whom	77
are plumbing contractors who are signatories to agreements with	78
unions representing plumbers.	79

The plumbing and hydronics section has primary responsibility	80
for the licensure of plumbing contractors and hydronics	81
contractors.	82

(C) The electrical section consists of five members, one of	83
whom is an electrical inspector employed by the department of	84
commerce, a municipal corporation, or a county, two of whom are	85
electrical contractors who have no affiliation with any union	86
representing electricians, and two of whom are electrical	87
contractors who are signatories to agreements with unions	88
representing electricians.	89

The electrical section has primary responsibility for the	90
licensure of electrical contractors.	91

(D) The heating, ventilating, air conditioning, and	92
refrigeration section consists of five members, one of whom is a	93
heating, ventilating, air conditioning, and refrigeration	94
inspector employed by either the department of commerce or a	95
municipal corporation; two of whom are heating, ventilating, and	96
air conditioning contractors or refrigeration contractors who have	97
no affiliation with any union representing heating, ventilating,	98
and air conditioning tradespersons or refrigeration tradespersons;	99
and two of whom are heating, ventilating, and air conditioning	100
contractors or refrigeration contractors who are signatories to	101
agreements with unions representing heating, ventilating, and air	102
conditioning tradespersons or refrigeration tradespersons.	103

The heating, ventilating, air conditioning, and refrigeration	104
section has primary responsibility for the licensure of heating,	105
ventilating, and air conditioning contractors and refrigeration	106
contractors.	107

(E) Within ninety days after July 31, 1992, initial	108
appointments shall be made to the board. Of the initial	109
appointments to the board, two appointments in each section, other	110
than the administrative section, are for terms ending one year	111
after July 31, 1992, and two are for terms ending two years after	112
July 31, 1992. All other appointments to the board are for terms	113
ending three years after July 31, 1992. Thereafter, terms of	114
office are for three years, each term ending on the same day of	115
the same month of the year as did the term that it succeeds. Each	116
member shall hold office from the date of appointment until the	117
end of the term for which the member was appointed. Members may be	118
reappointed. Vacancies shall be filled in the manner provided for	119
original appointments. Any member appointed to fill a vacancy	120
occurring prior to the expiration of the term for which the	121
member's predecessor was appointed shall hold office as a member	122
for the remainder of that term. A member shall continue in office	123
subsequent to the expiration of a term until a successor takes	124
office or until a period of sixty days has elapsed, whichever	125
occurs first.	126

(F) Before entering upon the discharge of official duties,	127
each member shall take, and file with the secretary of state, the	128
oath of office required by Section 7 of Article XV, Ohio	129
Constitution.	130

(G) Each member, except for the director or the director's	131
designee, shall receive a per diem amount fixed pursuant to	132
section 124.15 of the Revised Code when actually attending to	133
matters of the board and for the time spent in necessary travel,	134
and all actual and necessary expenses incurred in the discharge of	135
official duties.	136

(H) The director of commerce may remove any member of the	137
board the director appoints for malfeasance, misfeasance, or	138
nonfeasance.	139

(I) Membership on the board and holding any office of the	140
board does not constitute holding a public office or employment	141
within the meaning of any section of the Revised Code, or an	142
interest, either direct or indirect, in a contract or expenditure	143
of money by the state or any municipal corporation, township,	144
special district, school district, county, or other political	145
subdivision. No member or officer of the board is disqualified	146
from holding any public office or employment nor shall the officer	147
or member forfeit any public office or employment by reason of	148
holding a position as an officer or member of the board.	149

(J) The board, and each section of the board, shall meet only	150
after adequate advance notice of the meeting has been given to	151
each member of the board or section, as appropriate.	152

Sec. 4740.04.  The administrative section of the Ohio	153
construction industry licensing board is responsible for the	154
administration of this chapter and shall do all of the following:	155

(A) Schedule the contractor examinations each of the other	156
sections of the board directs. Each type of examination shall be	157
held at least four times per year.	158

(B) Select and contract with one or more persons to do all of	159
the following relative to the examinations:	160

(1) Prepare, administer, score, and maintain the	161
confidentiality of the examinations;	162

(2) Be responsible for all the expenses required to fulfill	163
division (B)(1) of this section;	164

(3) Charge an applicant a fee in an amount the administrative	165
section of the board authorizes for administering the examination;	166

(4) Design the examination for each type of contractor to	167
determine an applicant's competence to perform that type of	168
contracting.	169

(C) Issue and renew licenses as follows:

170

(1) Issue a license to any individual who the appropriate	171
specialty section of the board determines is qualified pursuant to	172
section 4740.06 of the Revised Code to hold a license and has	173
attained, within the twelve months preceding the individual's	174
application for licensure, a score on the examination that the	175
appropriate specialty section authorizes for the licensed trade.	176

(a) Each license shall include athe contractor's name,	177
license number and an, expiration date, and the name of the	178
contracting company associated with the individual, as applicable.	179

(b) Each license issued to an individual who holds more than	180
one valid license shall contain the same license number and	181
expiration date as the original license issued to that individual.	182

(2) Renew licenses for individuals who meet the renewal	183
requirements of section 4740.06 of the Revised Code.	184

(D) Make an annual written report to the director of commerce	185
on proceedings had by or before the board for the previous year	186
and make an annual statement of all money received and expended by	187
the board during the year;	188

(E) Keep a record containing the name, address, the date on	189
which the board issues or renews a license to, and the license	190
number of, every heating, ventilating, and air conditioning	191
contractor, refrigeration contractor, electrical contractor,	192
plumbing contractor, and hydronics contractor issued a license	193
pursuant to this chapter;	194

(F) Regulate a contractor's use and display of a license	195
issued pursuant to this chapter and of any information contained	196
in that license;	197

(G) Adopt rules in accordance with Chapter 119. of the	198
Revised Code as necessary to properly discharge the administrative	199
section's duties under this chapter. The rules shall include, but	200
not be limited to, the following:	201

(1) Application procedures for examinations;

202

(2) Specifications for continuing education requirements for	203
license renewal that address all of the following:	204

(a) A requirement that an individual who holds any number of	205
valid and unexpired licenses accrue a total of ten hours of	206
continuing education courses per year;	207

(b) Fees the board charges to persons who provide continuing	208
education courses, in an amount of twenty-five dollars annually	209
for each person approved to provide courses, not more than ten	210
dollars plus one dollar per credit hour for each course offered	211
submitted to a specialty section of the board for approval	212
according to division (F) of section 4740.05 of the Revised Code,	213
and one dollar per credit hour of instruction per attendee;	214

(c) A provision limiting approval of continuing education	215
courses to one year.	216

(3) Requirements for criminal records checks of applicants	217
under section 4776.03 of the Revised Code.	218

(H) Adopt any continuing education curriculum as the other	219
sections of the board establish or approve pursuant to division	220
(C)(F) of section 4740.05 of the Revised Code;	221

(I) Keep a record of its proceedings and do all things	222
necessary to carry out this chapter.	223

Sec. 4740.05. (A) Each specialty section of the Ohio	224
construction industry licensing board, other than the	225
administrative section, shall do all of the following:	226

(1)(A) Adopt rules in accordance with Chapter 119. of the	227
Revised Code that are limited to the following:	228

(a)(1) Criteria for the section to use in evaluating the	229
qualifications of an individual;	230

(b)(2) Criteria for the section to use in deciding whether to	231
authorize the administrative section to issue, renew, suspend,	232
revoke, or refuse to issue or renew a license;	233

(c)(3) The determinations and approvals the section makes	234
under the reciprocity provision of section 4740.08 of the Revised	235
Code;	236

(d)(4) Criteria for continuing education courses conducted	237
pursuant to this chapter;	238

(e)(5) A requirement that personsany training agency seeking	239
approval to provide continuing education courses submit the	240
required information to the appropriate specialty section of the	241
board at least thirty days, but not more than one year, prior to	242
the date on which the course is proposed to be offered;	243

(f)(6) A prohibition against any persontraining agency	244
providing a continuing education course unless the administrative	245
section of the board approved that persontraining agency not more	246
than one year prior to the date the course is offered;	247

(g)(7) A list of disqualifying offenses pursuant to sections	248
4740.06, 4740.10, and 4776.10 of the Revised Code.	249

(2)(B) Investigate allegations in reference to violations of	250
this chapter and the rules adopted pursuant to it that pertain to	251
the specialty section and determine by rule a procedure to conduct	252
investigations and hearings on these allegations;	253

(3)(C) Maintain a record of its proceedings;

254

(4)(D) Grant approval to a persontraining agency to offer	255
continuing education courses pursuant to rules the board adopts;	256

(5)(E) As required, do all things necessary to carry out this	257
chapter.	258

(B) In accordance with rules they establish, the trade	259
sections of the board shall authorize the administrative section	260
to issue, renew, suspend, revoke, or refuse to issue or renew	261
licenses for the classes of contractors for which each has primary	262
responsibility as set forth in section 4740.02 of the Revised	263
Code.	264

(C) Each trade section of the board shall establish;

265

(F) Establish or approve a continuing education curriculum	266
for license renewal for each class of contractors for which the	267
section has primary responsibility. No curriculum may require more	268
than five hours per year in specific course requirements. No	269
contractor may be required to take more than ten hours per year in	270
continuing education courses. The ten hours shall be the aggregate	271
of hours of continuing education for all licenses the contractor	272
holds.	273

(G) Design the examination for the type of contractor the	274
specialty section licenses to determine an applicant's competence	275
to perform that type of contracting.	276

Sec. 4740.06. (A) Any individual who applies for a license	277
shall file a written application with the appropriate specialty	278
section of the Ohio construction industry licensing board,	279
accompanied with the application fee as determined pursuant to	280
section 4740.09 of the Revised Code. The individual shall file the	281
application not more than sixty days nor less than thirty days	282
prior to the date of the examination. The application shall be on	283
the form the section prescribes and verified by the applicant's	284
oath. The applicant shall provide information satisfactory to the	285
section showing that the applicant meets the requirements of	286
division (B) of this section.	287

(B) To qualify to take an examination, an individual shall:

288

(1) Be at least eighteen years of age;

289

(2) Be a United States citizen or legal alien who produces	290
valid documentation to demonstrate the individual is a legal	291
resident of the United States;	292

(3) Either have been a tradesperson in the type of licensed	293
trade for which the application is filed for not less than five	294
years immediately prior to the date the application is filed, be a	295
currently registered engineer in this state with three years of	296
business experience in the construction industry in the trade for	297
which the engineer is applying to take an examination, or have	298
other experience acceptable to the appropriate specialty section	299
of the board;	300

(4) Maintain contractor's liability insurance, including	301
without limitation, complete operations coverage, in an amount the	302
appropriate specialty section of the board determines and only in	303
one contracting company name;	304

(5) Not have done any of the following:

305

(a) Been convicted of or pleaded guilty to a crime of moral	306
turpitude or a disqualifying offense as those terms are defined in	307
section 4776.10 of the Revised Code;	308

(b) Violated this chapter or any rule adopted pursuant to it;

309

(c) Obtained or renewed a license issued pursuant to this	310
chapter, or any order, ruling, or authorization of the board or a	311
section of the board by fraud, misrepresentation, or deception;	312

(d) Engaged in fraud, misrepresentation, or deception in the	313
conduct of business.	314

(C) When an applicant for licensure as a contractor in a	315
licensed trade meets the qualifications set forth in division (B)	316
of this section and passes the required examination, the	317
appropriate specialty section of the board, within ninety days	318
after the application was filed, shall authorize the	319
administrative section of the board to license the applicant for	320
the type of contractor's license for which the applicant	321
qualifies. A specialty section of the board may withdraw its	322
authorization to the administrative section for issuance of a	323
license for good cause shown, on the condition that notice of that	324
withdrawal is given prior to the administrative section's issuance	325
of the license.	326

(D)(1) Except as provided in division (D)(2) of this section,	327
if an applicant does not pass the required examination, the	328
applicant may retake the examination not less than sixty days	329
after the applicant's most recent examination.	330

(2) An applicant who does not pass the required examination	331
after taking the examination five times under this section shall	332
reapply for a license under division (A) of this section before	333
retaking the required examination any subsequent time.	334

(E) All licenses a contractor holds pursuant to this chapter	335
shall expire annually on the same date, which shall be the	336
expiration date of the original license the contractor holds. An	337
individual holding a valid, unexpired license may renew the	338
license, without reexamination, by submitting an application to	339
the appropriate specialty section of the board not more than	340
ninety calendar days before the expiration of the license, along	341
with the renewal fee the specialty section requires and proof of	342
compliance with the applicable continuing education requirements.	343
The applicant shall provide information in the renewal application	344
satisfactory to demonstrate to the appropriate specialty section	345
that the applicant continues to meet the requirements of division	346
(B) of this section.	347

Upon application and within one calendar year after a license	348
has expired, a section may waive any of the requirements for	349
renewal of a license upon finding that an applicant substantially	350
meets the renewal requirements or that failure to timely apply for	351
renewal is due to excusable neglect. A section that waives	352
requirements for renewal of a license may impose conditions upon	353
the licensee and assess a late filing fee of not more than double	354
the usual renewal fee. An applicant shall satisfy any condition	355
the section imposes before a license is reissued.	356

(E)(F) An individual holding a valid license may request the	357
section of the board that authorized that license to place the	358
license in inactive status under conditions, and for a period of	359
time, as that section determines.	360

(F)(G) Except for the ninety-day extension provided for a	361
license assigned to a business entitycontracting company under	362
division (D) of section 4740.07 of the Revised Code, a license	363
held by an individual immediately terminates upon the death of the	364
individual.	365

(G)(H) Nothing in any license issued by the Ohio construction	366
industry licensing board shall be construed to limit or eliminate	367
any requirement of or any license issued by the Ohio fire marshal.	368

(H)(I)(1) Subject to divisions (H)(I)(2), (3), and (4) of	369
this section, no tradespecialty section of the board shall adopt,	370
maintain, renew, or enforce any rule, or otherwise preclude in any	371
way, an individual from receiving or renewing a license under this	372
chapter due to any past criminal activity or interpretation of	373
moral character, except as pursuant to division (B)(5)(a) of this	374
section. If the specialty section denies an individual a license	375
or license renewal, the reasons for such denial shall be put in	376
writing.	377

(2) Except as otherwise provided in this division, if an	378
individual applying for a license has been convicted of or pleaded	379
guilty to a misdemeanor that is not a crime of moral turpitude or	380
a disqualifying offense less than one year prior to making the	381
application, the section may use its discretion in granting or	382
denying the individual a license. Except as otherwise provided in	383
this division, if an individual applying for a license has been	384
convicted of or pleaded guilty to a felony that is not a crime of	385
moral turpitude or a disqualifying offense less than three years	386
prior to making the application, the section may use its	387
discretion in granting or denying the individual a license. The	388
provisions in this paragraph do not apply with respect to any	389
offense unless the section, prior to the effective date of this	390
amendment, was required or authorized to deny the application	391
based on that offense.	392

In all other circumstances, the section shall follow the	393
procedures it adopts by rule that conform to division (H)(I)(1) of	394
this section.	395

(3) In considering a renewal of an individual's license, the	396
section shall not consider any conviction or plea of guilty prior	397
to the initial licensing. However, the board may consider a	398
conviction or plea of guilty if it occurred after the individual	399
was initially licensed, or after the most recent license renewal.	400

(4) The section may grant an individual a conditional license	401
that lasts for one year. After the one-year period has expired,	402
the license is no longer considered conditional, and the	403
individual shall be considered fully licensed.	404

Sec. 4740.07.  (A) Except as otherwise provided in this	405
section, the administrative section of the Ohio construction	406
industry licensing board shall issue and renew all licenses under	407
this chapter in the name of the individual who meets the	408
requirements of section 4740.06 of the Revised Code.	409

(B) Any individual mayAll individuals applying for a license	410
under this chapter shall request, at the time of applying for a	411
license or at any time thereafter, that the individual's license	412
be assigned to a business entitycontracting company with whom the	413
individual is associated as a full-time officer, proprietor,	414
partner, or employeeemployed. If the individual is issued or	415
holds a license and meets the requirements of this section for the	416
assignment of the license to a business entitycontracting	417
company, the administrative section shall assign the license to	418
and issue a license in the name of the business entitycontracting	419
company. The license assigned and issued to a business entity	420
contracting company under this division shall state the name and	421
position of the individual who assigned the license to the	422
business entitycontracting company. If a license is not assigned	423
to a contracting company in accordance with this division, the	424
appropriate specialty section of the board shall place that	425
license in inactive status.	426

(C) During the period a business entitycontracting company	427
holds a license issued under division (B) of this section, the	428
administrative section shall not issue another license to the	429
individual who assigned the license to the business entity	430
contracting company for the same type of contracting for which the	431
business entitycontracting company utilizes the assigned license.	432

(D)(1) If an individuala contractor who assigned a license	433
to a business entitycontracting company under division (B) of	434
this section ceases to be associated with the business entity	435
contracting company for any reason, including the death of the	436
individualcontractor, the individualcontractor or business	437
entitycontracting company immediately shall notify the	438
appropriate specialty section of the board of the date on which	439
the individualcontractor ceased to be associated with the	440
business entitycontracting company. ASuch a license assigned to	441
a business entityassignation is invalid ninetyaccording to the	442
following, as applicable:	443

(a) Ninety calendar days after the date on which the	444
individual who assigned the license ceases to be associated with	445
the business entity or atdeath of the contractor;	446

(b) Ninety calendar days after the contractor completes a	447
change of company form;	448

(c) At an earlier time to which the business entity	449
contracting company and the individualcontractor agree.	450

(2) If a license assignedassignation made to a business	451
entitycontracting company becomes invalid pursuant to division	452
(D)(1) of this section and another individual has assigned a	453
license to the business entitycontracting company for the same	454
type of contracting for which the invalidated license assignation	455
had been assignedmade, the business entitycontracting company	456
may continue to operate under the other assigned license.	457

(E) Any work a business entitycontracting company conducts	458
under athe license assigned under this section or displayed under	459
division (F) of section 4740.04 of the Revised Code is deemed to	460
be conducted under the personal supervision of the individual	461
named in the license and any violation of any term of the license	462
is deemed to have been committed by the individual named in the	463
license.	464

For the period of time during which more than one license for	465
the same type of contracting is assigned to a business entity, any	466
work the business entity conducts under any of those licenses is	467
deemed to be conducted under the personal supervision of the	468
individuals named in those licenses and any violation of any term	469
of any license is deemed to have been committed by the individuals	470
named in all of the licenses.	471

(F) No individual who assigns a license to a business entity	472
contracting company shall assign a license for the same type of	473
contracting to another business entitycontracting company until	474
the original license assignedassignation is invalid pursuant to	475
division (D) of this section.	476

(G) Any individual who assigns a license to a business entity	477
contracting company under this section shall be actively engaged	478
in business as the type of contractor for which the license is	479
issued and be readily available for consultation with the business	480
entitycontracting company to which the license is assigned.	481

(H) No license assigned under this section shall be assigned	482
to more than one business entitycontracting company at a time.	483

Sec. 4740.08.  When a written reciprocity agreement between	484
the states exists, and an individual who is registered, licensed,	485
or certified in another state applies to the appropriate specialty	486
section of the Ohio construction industry licensing board submits	487
a copy of the reciprocity agreement, and pays the licensure fee	488
determined pursuant to section 4740.09 of the Revised Code, the	489
appropriate specialty section of the board shall authorize the	490
administrative section to issue, without examination, a license to	491
that individual if the appropriate specialty section of the board	492
determines, pursuant to rules it adopts, that the requirements for	493
registration, licensure, or certification under the laws of the	494
other state are substantially equal to the requirements for	495
licensure in this state and that the other state extends similar	496
reciprocity to persons licensed under this chapter. The	497
appropriate specialty section of the board may withdraw its	498
authorization to the administrative section for issuance of a	499
license for good cause prior to the administrative section's	500
issuance of the license.	501

Sec. 4740.09.  The fees for licenses and their renewal,	502
including late fees, subject to the approval of the controlling	503
board, shall be determined by each respective specialty section of	504
the Ohio construction industry examininglicensing board. Each	505
respective specialty section of the board may increase these	506
fees, provided that no increase exceeds fifty per cent of the	507
lowest fee determined by that section of the board during the	508
three-year period immediately preceding an increase, and further	509
provided that no increase is made more than once a year.	510

Sec. 4740.10.  (A) A specialty section of the Ohio	511
construction industry licensing board may impose any of the	512
following, or any combination of the following, disciplinary	513
actions against an applicant or license holder for committing an	514
act listed in division (B) of this section:	515

(1) Suspend, revoke, or refuse to issue any license;

516

(2) Require additional continuing education hours;

517

(3) Issue a fine.

518

(B)(1) An applicant or licensee shall be subject to	519
disciplinary action as prescribed under division (A) of this	520
section for any of the following:	521

(a) Having been convicted of or pleading guilty to a crime of	522
moral turpitude or disqualifying offense as those terms are	523
defined in section 4776.10 of the Revised Code;	524

(b) Violating any provision of this chapter;

525

(c) Violating any rule adopted pursuant to this chapter;

526

(d) Obtaining or attempting to obtain a license or a renewal	527
of such license pursuant to this chapter by means of fraud,	528
deception, or misrepresentation;	529

(e) Obtaining an order, ruling, or authorization from any	530
section of the board by means of fraud or misrepresentation;	531

(f) Engaging in fraud, misrepresentation, or deception in the	532
conduct of business;	533

(g) Transferring the person's license to another person	534
without the approval of the appropriate specialty section;	535

(h)(i) Allowing the person's license to be used by an	536
unlicensed person or entity;	537

(ii) Division (B)(1)(h)(i) of this section does not apply to	538
a contracting company that has been assigned a license under	539
section 4740.07 of the Revised Code.	540

(i) Failing to comply with a disciplinary action imposed by	541
the appropriate specialty section;	542

(j) Failing to maintain insurance throughout the license	543
year, unless the license has properly been placed in inactive	544
status under section 4740.06 of the Revised Code.	545

(2) The appropriate specialty section of the board may take	546
disciplinary action against an applicant or license holder as	547
prescribed under division (A) of this section upon receiving	548
notice that a municipal corporation or any other governmental	549
agency has suspended or revoked the local contracting license or	550
registration of an individual or contracting company that also	551
holds a license pursuant to this chapter.	552

(C) The appropriate specialty sections shall direct the	553
administrative section to refuse to issue any license to an	554
applicant upon a finding by the appropriate specialty section that	555
the applicant has done either of the following:	556

(1) Had another person take the required examination for the	557
applicant;	558

(2) Failed to pass the required examination.

559

(D) If an individual fails to request a hearing within thirty	560
days after the date a specialty section, in accordance with	561
section 119.07 of the Revised Code, notifies the individual of the	562
board's intent to impose a disciplinary action against the	563
individual under division (A) of this section, the specialty	564
section, by a majority vote of a quorum of the section members,	565
may impose the action against the individual without holding an	566
adjudication hearing.	567

Sec. 4740.13. (A) No person shall act as or claim to be a	568
type of contractor that this chapter licenses unless that person	569
holds or has been assigned a license issued pursuant to this	570
chapter for the type of contractor that person is acting as or	571
claiming to be.	572

(B) Upon the request of the appropriate specialty section of	573
the Ohio construction industry licensing board, the attorney	574
general may bring a civil action for appropriate relief, including	575
but not limited to a temporary restraining order or permanent	576
injunction in the court of common pleas of the county where the	577
unlicensed person resides or is acting as or claiming to be a	578
licensed contractor.	579

(C) A contractor licensed under this chapter may install,	580
service, and maintain the related or interfaced control wiring for	581
equipment and devices related to their specific license, on the	582
condition that the control wiring is less than twenty-five volts.	583

(D) A person is not an electrical contractor subject to	584
licensure under this chapter for work that is limited to the	585
construction, improvement, renovation, repair, testing, or	586
maintenance of the following systems using less than fifty volts	587
of electricity: fire alarm or burglar alarm, cabling, tele-data	588
sound, communication, and landscape lighting and irrigation.	589

Sec. 4740.131.  Nothing in this chapter shall be construed to	590
prohibit a contractor from leasing, on a temporary or permanent	591
basis, an employee from a professional employer organization, as	592
defined by section 4125.01 of the Revised Code, or from a	593
temporary agency to perform work under the direct supervision of	594
the contractor.	595

Sec. 4740.16. (A) TheAn investigator appointed by the	596
director of commerce, on behalf of the appropriate specialty	597
section of the Ohio construction industry licensing board may	598
investigate any person who allegedly has violated section 4740.13	599
of the Revised Code. If, after an investigation pursuant to	600
section 4740.05 of the Revised Code, the appropriate specialty	601
section determines that reasonable evidence exists that a person	602
has violated section 4740.13 of the Revised Code, within seven	603
days after that determination, the appropriate specialty section	604
shall send a written notice to that person in the same manner as	605
prescribed in section 119.07 of the Revised Code for licensees,	606
except that the notice shall specify that a hearing will be held	607
and specify the date, time, and place of the hearing.	608

(B) The appropriate specialty section shall hold a hearing	609
regarding the alleged violation in the same manner prescribed for	610
an adjudication hearing under section 119.09 of the Revised Code.	611
If the appropriate specialty section, after the hearing,	612
determines a violation has occurred, the appropriate specialty	613
section, upon an affirmative vote of foura majority of its	614
members, may impose a fine on the person, not exceeding one	615
thousand dollars per violation per day and may file a complaint	616
against the person with the appropriate local prosecutor for	617
criminal prosecution. The appropriate specialty section's	618
determination is an order that the person may appeal in accordance	619
with section 119.12 of the Revised Code.	620

(C) If the person who allegedly committed a violation of	621
section 4740.13 of the Revised Code fails to appear for a hearing,	622
the appropriate section may request the court of common pleas of	623
the county where the alleged violation occurred to compel the	624
person to appear before the appropriate section for a hearing.	625

(D) If the appropriate specialty section assesses a person a	626
civil penalty for a violation of section 4740.13 of the Revised	627
Code and the person fails to pay that civil penalty within the	628
time period prescribed by the appropriate specialty section, the	629
appropriate specialty section shall forward to the attorney	630
general the name of the person and the amount of the civil penalty	631
for the purpose of collecting that civil penalty. In addition to	632
the civil penalty assessed pursuant to this section, the person	633
also shall pay any fee assessed by the attorney general for	634
collection of the civil penalty.	635

(D) If a person fails to request a hearing within thirty days	636
after the date the appropriate specialty section, in accordance	637
with section 119.07 of the Revised Code, notifies the person of	638
the section's intent to act against the person under division (A)	639
of this section, the section, by majority vote of a quorum of the	640
section members, may take the action against a person without	641
holding an adjudication hearing.	642

Section 2.  That existing sections 4740.01, 4740.02, 4740.04,	643
4740.05, 4740.06, 4740.07, 4740.08, 4740.09, 4740.13, and 4740.16	644
and section 4740.10 of the Revised Code are hereby repealed.	645

Section 3.  Notwithstanding division (B) of section 4740.07	646
of the Revised Code, as amended by this act, an individual who is	647
licensed as a speciality contractor pursuant to section 4740.06 of	648
the Revised Code on the effective date of this act and who has not	649
assigned the individual's license to a contracting company shall	650
have sixty days after the effective date of this act to assign the	651
license to a contracting company in accordance with section	652
4740.07 of the Revised Code, as amended by this act. If a license	653
is not assigned to a contracting company within sixty days after	654
the effective date of this act, the appropriate specialty section	655
of the Ohio Construction Industry Licensing Board shall place the	656
license in inactive status.	657