130th Ohio General Assembly
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Sub. S. B. No. 338  As Passed by the Senate
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 



A BILL
To enact sections 4720.01, 4720.02, 4720.03, 4720.04, 4720.05, 4720.051, 4720.06, 4720.07, 4720.08, 4720.09, 4720.10, 4720.11, and 4720.12 of the Revised Code to require registration and establish laws governing the practices of air conveyance system cleaning servicers.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1.  That sections 4720.01, 4720.02, 4720.03, 4720.04, 4720.05, 4720.051, 4720.06, 4720.07, 4720.08, 4720.09, 4720.10, 4720.11, and 4720.12 of the Revised Code be enacted to read as follows:
Sec. 4720.01.  As used in this chapter:
(A) "Air conveyance system cleaning servicer" means any individual or business entity that satisfies both of the following:
(1) For compensation, directs, supervises, or has responsibility for the means, method, and manner of performance of air conveyance system cleaning services;
(2) Performs or otherwise supervises or directs other individuals who perform air conveyance system cleaning services.
(B) "Air conveyance system cleaning service" means the cleaning of a whole system within a forced airstream, consisting of various heating and cooling components.
(C) "Consumer" has the same meaning as in section 1345.01 of the Revised Code.
(D) "Crime" means any offense involving consumer fraud, predatory marketing practices, misleading advertising practices, or any other offense relating adversely to a person's competence to honestly and safely perform air conveyance system cleaning services.
(E) "Department" means the department of commerce.
(F) "Director" means the director of commerce or the director's designee.
(G) "Residential property" means any single or multi-unit structure used in whole or in part as a place of dwelling and any accessory construction incidental to the structure. "Residential property" does not include either of the following:
(1) An industrialized unit as described in section 3781.06 of the Revised Code;
(2) A mobile home as described in section 4501.01 of the Revised Code.
Sec. 4720.02. (A) No individual or business entity shall do either of the following without registering with or being assigned a registration by the director of commerce in accordance with this chapter:
(1) Act or attempt to act as an air conveyance cleaning system servicer;
(2) Advertise in print, put out any sign, card, or other device that would indicate to the public that the individual or business entity is an air conveyance system cleaning servicer in the state, or cause the individual's or business entity's name to be included in a classified advertisement or directory in the state under a classification as an air conveyance system cleaning servicer.
(B) No individual or business entity that performs air conveyance system cleaning services shall do any of the following:
(1) Represent that a consumer's air conveyance system contains any substance that is dangerous or that continued use by the consumer of their air conveyance system may be harmful when such is not the fact;
(2) Represent that the individual or business entity has any sponsorship, approval, or affiliation relating to air conveyance system cleaning services that the individual or business entity does not have;
(3) Misrepresent any sponsorship, approval, or affiliation relating to air conveyance system cleaning services that the individual or business entity does have;
(4) Misrepresent the benefits of available air conveyance system cleaning services, including the ability to test for and identify mold present in an air conveyance system;
(5) Knowingly make a false report to a consumer, or potential consumer, in a solicitation;
(6) Fail to make available accurate registration information to a consumer.
(C) A violation of any provision of this chapter, including rules adopted by the director of commerce pursuant to section 4720.03 of the Revised Code, shall constitute an unfair, deceptive, or unconscionable act or practice under sections 1345.01 to 1345.13 of the Revised Code.
Sec. 4720.03.  The director of commerce shall adopt rules establishing all of the following:
(A) Registration standards, including financial responsibility and work experience requirements;
(B) Applicable fees;
(C) A system by which consumers can readily identify registered air conveyance system cleaning servicers, that, at a minimum, should consist of a searchable internet database;
(D) Other provisions for the enforcement of this chapter.
Sec. 4720.04.  (A) The director of commerce shall assign each air conveyance system cleaning servicer registrant a unique registration number at the time a registration is approved and shall keep a record of all registration numbers for a period of twenty years.
(B) The director may deny issuance or renewal, or revoke, a registration in accordance with section 4720.08 of the Revised Code for failure to comply with, or violation of, the provisions of this chapter or for any other good cause shown within the purpose of the chapter. A denial or revocation shall not be made except upon reasonable notice to, and opportunity to be heard by, the applicant or registrant.
(C) The director may do any of the following in enforcing the chapter:
(1) In lieu of revoking a registration, suspend a registration for a reasonable time period;
(2) In lieu of suspending a registration, assess a monetary penalty to the registrant;
(3) In lieu of revoking a registration, suspend a registration for a reasonable time period and assess a monetary penalty to the registrant;
(4) Issue a new registration to an applicant whose previous registration was revoked.
(D) The director shall prepare, print, and distribute booklets, pamphlets, or other written information that explains the provisions of this chapter and make the information available to consumers.
(E) The director shall not issue or renew a registration until the person applying for registration issuance or renewal demonstrates that the administrator of workers' compensation has issued to the person a certificate in accordance with section 4123.35 of the Revised Code establishing that the person has paid the required premiums or been granted the privilege to self-insure under Chapter 4123. of the Revised Code.
Sec. 4720.05.  (A) To register as an air conveyance system cleaning servicer with the director of commerce as required by division (A) of section 4720.02 of the Revised Code, an individual shall do all of the following:
(1) Complete an application for registration on a form provided by the department;
(2) Pay a reasonable fee, determined by the director, in an amount sufficient to meet the expenses the department incurs in administering the registration program;
(3) File a disclosure statement as described in division (C) of this section with the department.
(B) Each air conveyance system cleaning servicer registered under this chapter shall file an amended registration form, provided by the department, within twenty days after any change in the information required on a registration form. No fee shall be required for the filing of an amendment.
(C) In accordance with division (A)(3) of this section, every applicant for an air conveyance system cleaning servicer registration shall file a disclosure statement with the director of commerce stating whether the applicant has been convicted of or pleaded guilty to any crime. If any of the information required to be included in the disclosure statement changes, or if additional information should be added after the applicant or registrant files the statement, the applicant or registrant shall provide that information to the director, in writing, within thirty calendar days of the change or addition.
Sec. 4720.051. (A) If an individual who applies for registration pursuant to division (A) of section 4720.05 of the Revised Code intends to perform air conveyance system cleaning services as a business entity or intends to supervise or direct individuals who will perform air conveyance system cleaning services for a business entity, that individual, at the time of applying for a registration or any time thereafter, shall request that the individual's registration be assigned to the business entity with whom the individual is associated.
(B) If the individual who requests assignment is issued or holds a registration, the director of commerce shall assign the registration in the name of the business entity. The assigned registration shall state the name and position of the individual who assigned the registration to the business entity.
(C) If an individual who assigned a registration to a business entity ceases to be associated with the business entity for any reason, including the death of the individual, the individual or business entity shall notify the director of the date on which the individual ceased to be associated with the business entity. A registration assigned to a business entity is invalid ninety calendar days after the date on which the individual who assigned the registration ceases to be associated with the business entity or at an earlier time to which the business entity and the individual agree.
In the event that another individual has also assigned a registration to the business entity, the business entity may continue to operate under the valid registration.
(D) Any work a business entity or its employees performs under an assigned registration is deemed to be conducted under the personal supervision of the individual named in the assignment.
In the event that more than one registration is assigned to a business entity, any work the business entity or its employees performs is deemed to be conducted under the personal supervision of each individual named in each assignment.
(E) Any individual who assigns a registration to a business entity under this section shall be actively engaged in business as an air conveyance system cleaning servicer and be readily available for consultation with the business entity to which the registration is assigned.
(F) No registration assigned under this section shall be assigned to more than one business entity at a time.
Sec. 4720.06.  The provisions of this chapter shall apply to any person engaging in any of the activities regulated by this chapter in the state, including persons whose residence or principal place of business is located outside of the state.
Sec. 4720.07.  Each registered air conveyance system cleaning servicer shall annually reregister with the director by completing an application for registration on a form provided by the department and paying a reasonable fee, as determined by the director.
Sec. 4720.08.  (A) In accordance with section 4720.04 of the Revised Code, the director of commerce may refuse to issue, suspend, or revoke any registration of an applicant or registrant upon reasonable proof that the applicant or registrant is incapable, for medical or any other good cause, of executing the functions of a registrant in a manner consistent with the public's health, safety, and welfare or has done any of the following:
(1) Obtained a registration through fraud, deception, or misrepresentation;
(2) Engaged in the use or employment of dishonesty, fraud, deception, misrepresentation, false promise, or false pretense;
(3) Engaged in gross negligence, gross malpractice, or gross incompetence;
(4) Engaged in repeated acts of negligence, malpractice, or incompetence;
(5) Engaged in professional or occupational misconduct as determined by the director;
(6) Except as provided in division (E) of this section, been convicted of or pleaded guilty to any crime involving moral turpitude or relating adversely to a person's competence to honestly and safely perform air conveyance system cleaning services;
(7) Had the authority to engage in air conveyance system cleaning services revoked or suspended by any other state, agency, or authority for reasons consistent with this section;
(8) Violated or failed to comply with the provisions of any rule administered by the director;
(9) Was determined to be a noncomplying employer by the administrator of workers' compensation pursuant to Chapter 4123. of the Revised Code.
(B) The director shall prohibit an applicant who violates section 4720.02 of the Revised Code from registering as an air conveyance system cleaning servicer for a period of up to six months after the violation.
(C) An applicant or registrant whose registration is denied, suspended, or revoked pursuant to division (A) or (B) of this section, upon a written request transmitted to the director within thirty calendar days of the denial, suspension, or revocation, may appeal the decision pursuant to Chapter 119. of the Revised Code.
(D) An applicant or registrant shall have the continuing duty to provide any assistance or information requested by the director, and to cooperate in any inquiry, investigation, or hearing conducted by the director regarding the issuance, denial, suspension, or revocation of a registration.
(E) Notwithstanding division (A)(6) of this section, the director shall not deny a registration or have a registration suspended or revoked on the basis of any conviction or plea of guilty disclosed if the applicant or registrant has affirmatively demonstrated to the director clear and convincing evidence of the applicant's or registrant's rehabilitation. In determining whether an applicant or registrant has affirmatively demonstrated rehabilitation, the director shall consider the following factors:
(1) The nature and responsibility of the position the applicant or registrant would hold;
(2) The nature and seriousness of the offense;
(3) The circumstances under which the offense occurred;
(4) The date of the offense;
(5) The age of the applicant or registrant when the offense was committed;
(6) Whether the offense was an isolated incident or repeated situation;
(7) Any social conditions that may have contributed to the offense;
(8) Any evidence of rehabilitation, including good conduct in prison or in the community, counseling or psychiatric treatment received, acquisition of additional academic or vocational schooling, successful participation in correctional work-release programs, or the recommendation of persons who have the applicant or registrant under their supervision.
Sec. 4720.09.  Every registered air conveyance system cleaning servicer shall secure, maintain, and file with the director of commerce proof of commercial general liability insurance in a minimum amount of five hundred thousand dollars per occurrence. If a registrant's insurance is to be canceled or is nonrenewable, the registrant shall submit to the director a copy of a new insurance policy or a replacement policy that meets the requirements of this section before the former policy lapses.
Sec. 4720.10.  Each registrant shall prominently display the registration number assigned to the registrant, as described in division (A) of section 4720.04 of the Revised Code, in the registrant's place of business, in all advertisements distributed within the state, on business documents, contracts, and correspondence with consumers of air conveyance system cleaning services, and on all commercial vehicles registered in the state that are leased or owned by the registrant and used by the registrant for the purpose of engaging in air conveyance system cleaning services.
If a registration has been assigned to a business entity pursuant to section 4720.051 of the Revised Code, the business entity shall display the registration number of the individual named in the assignment. If more than one registration is assigned to a business entity, the business entity shall display the registration number of each individual named in each assignment.
Sec. 4720.11.  This chapter and the rules adopted pursuant to it shall supersede any ordinance or regulation of a municipal corporation that provides for licensing or registration of air conveyance system cleaning servicers or for the protection of consumers by bonds or warranties required to be provided by servicers. A municipal corporation may enact ordinances and regulations relating to air conveyance system cleaning servicers that are not provided for in this chapter or in rules adopted by the director of commerce pursuant to this chapter.
Sec. 4720.12.  (A) No registered air conveyance system cleaning servicer shall perform any air conveyance system cleaning services unless that servicer enters into a written contract with the consumer. The contract shall clearly and accurately set forth in legible form and understandable language all agreements and conditions related to the service, including all of the following:
(1) The legal name of the air conveyance system cleaning servicer, and if the registration has been assigned pursuant to section 4720.051 of the Revised Code, the name of the individual associated with the assignment;
(2) The business address and registration number, as described in division (A) of section 4720.04 of the Revised Code, of the air conveyance system cleaning servicer;
(3) A copy of the proof of commercial general liability insurance required of a servicer pursuant to section 4720.09 of the Revised Code;
(4) The total price or other consideration to be paid by the consumer, including the finance charges.
Section 2. Section 4720.02 of the Revised Code, as enacted by this act, shall take effect six months after the effective date of this act.
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