SB 54

As Introduced
136th General Assembly
   Regular Session  S. B. No. 54
       2025-2026
  Senator Schaffer
  A BILL
  To amend section 4740.99 and to enact section  1
  4740.18 of the Revised Code to establish a  2
  certification for specialty residential  3
  construction contractors.  4
 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
     Section 1. That section 4740.99 be amended and section  5
4740.18 of the Revised Code be enacted to read as follows:  6
     Sec. 4740.18. (A) As used in this section:  7
     (1) "Residential-only certification" means a certification  8
the Ohio construction industry licensing board issues under this  9
section to a residential heating, ventilating, and air  10
conditioning contractor, residential refrigeration contractor,  11
residential electrical contractor, residential plumbing  12
contractor, or residential hydronics contractor.  13
     (2) "Residential contractor" means an individual or  14
residential contracting company that satisfies both of the  15
following:  16
     (a) Has responsibility for the means, method, and manner  17
of construction, improvement, renovation, repair, or maintenance  18
S. B. No. 54  Page 2
As Introduced
on a residential construction project with respect to one or  19
more trades and who offers, identifies, advertises, or otherwise  20
holds out or represents that the individual or residential  21
contracting company with which the individual is associated is  22
permitted or qualified to perform or have responsibility for the  23
means, method, and manner of construction, improvement,  24
renovation, repair, or maintenance with respect to one or more  25
trades on a residential construction project;  26
       (b) Does any of the following:  27
       (i) Performs construction, improvement, or renovation on a  28
residential construction project with respect to the  29
individual's or residential contracting company's trade;  30
       (ii) Employs tradespersons who perform construction,  31
improvement, or renovation on a construction project with  32
respect to the individual's or contracting company's trades;  33
       (iii) Uses direct labor subcontractors who perform  34
construction, improvement, or renovation on a residential  35
construction project with respect to the individual's or  36
contracting company's trades.  37
       (3) "Residential contracting company" means a company in  38
the construction industry that contracts with a person for a  39
residential construction project involving heating, ventilating,  40
and air conditioning, refrigeration, electrical, plumbing, or  41
hydronics.  42
       (4) "Residential construction project" means a project  43
involving a residential building subject to Chapter 3781. of the  44
Revised Code and the rules adopted under that chapter.  45
       (5) "Direct labor subcontractor" means an individual who  46
engages in construction, improvement, renovation, repair, or  47
S. B. No. 54  Page 3
As Introduced
maintenance of a residential construction project under terms  48
specified in an agreement with a residential contractor and to  49
whom both of the following apply:  50
       (a) The residential contractor has the right to control or  51
direct only the result of the construction, improvement,  52
renovation, repair, or maintenance performed by the individual;  53
       (b) The income the individual earns from the construction,  54
improvement, renovation, repair, or maintenance is subject to  55
the "Self-Employment Contributions Act of 1954," 26 U.S.C. 1401  56
et seq., and the regulations adopted under it.  57
       (6) "Residential building" and "industrialized unit" have  58
the same meanings as in section 3781.06 of the Revised Code.  59
       (B) The administrative section of the Ohio construction  60
industry licensing board shall issue a residential-only  61
certificate to any individual who does all of the following:  62
       (1) Completes an application that includes an individual's  63
name, the name of the residential contracting company associated  64
with the individual, the amount of time the individual has  65
engaged in the residential contracting business, and any other  66
information that may be required by the appropriate specialty  67
section of the board;  68
       (2) Maintains and provides proof of contractor's liability  69
insurance in the name of the associated residential contracting  70
company that includes complete operations coverage in an amount  71
not less than two hundred fifty thousand dollars;  72
       (3) Maintains and provides proof of contractor's liability  73
insurance in the name of the associated residential contracting  74
company that includes, in addition to the coverage required by  75
division (B)(2) of this section, coverage for construction,  76
S. B. No. 54  Page 4
As Introduced
improvements, renovations, repairs, or maintenance performed by  77
the company's direct labor subcontractors in an amount not less  78
than two hundred fifty thousand dollars;  79
       (4) Pays a certification fee of one hundred dollars,  80
except if the certificate is to expire in less than five years,  81
the certification fee shall be reduced proportionally based on  82
the duration of the certification period. The certification fee  83
shall not be less than twenty dollars.  84
       (C) Each certificate issued under this section shall  85
include the the following:  86
       (1) The individual's name and certificate number;  87
       (2) The name of the residential contracting company  88
associated with the individual;  89
       (3) The license number associated with any other licenses  90
held by the individual under this chapter.  91
       (D) All residential-only certificates an individual holds  92
under this section shall expire every fifth year on the same  93
date, which shall be the expiration date of the original  94
residential-only certificate the individual holds. An individual  95
holding a valid, unexpired residential-only certificate may  96
renew the certificate by submitting an application to the  97
appropriate specialty section of the board not more than ninety  98
days before the expiration of the certificate, along with a  99
renewal fee of one hundred dollars. The application shall  100
include proof of both of the following:  101
       (1) That the applicant continues to meet the certification  102
requirements related to contractor's liability insurance under  103
divisions (B)(2) and (3) of this section;  104
S. B. No. 54  Page 5
As Introduced
       (2) That the applicant has completed twenty hours of  105
board-approved continuing education in the preceding  106
certification period for each certification the individual  107
holds. If the certification period is less than five years, the  108
number of board-approved continuing education hours required  109
shall instead be the product of four hours times the number of  110
full years that elapsed since the certification was issued. In  111
no case shall the number of board-approved continuing education  112
hours required for renewal of a residential-only certification  113
be less than four.  114
       (E) Upon application within one calendar year after a  115
certification has expired, the appropriate specialty section may  116
waive any of the requirements for renewal of a residential-only  117
certification if the section finds that the applicant  118
substantially meets the renewal requirements or that failure to  119
timely apply for renewal is due to excusable neglect. A section  120
that waives requirements for renewal of a certification may  121
impose conditions upon the certificate holder and assess a late  122
filing fee of not more than two hundred dollars. An applicant  123
shall satisfy any condition the section imposes before a  124
certification is reissued.  125
       (F) A continuing education course may be counted for the  126
renewal of a residential-only certificate only if both of the  127
following apply:  128
       (1) The course is offered by a training agency approved by  129
the administrative section of the Ohio construction industry  130
licensing board that pays to the board an annual fee of twenty-  131
five dollars for the purposes of establishing and maintaining  132
that approval.  133
       (2) The course of study or program of instruction  134
S. B. No. 54  Page 6
As Introduced
comprising the continuing education course is approved by the  135
appropriate specialty section of the Ohio construction industry  136
licensing board following payment by the training agency of a  137
one-time fee of ten dollars plus one dollar per credit hour.  138
       (G) In addition to the fees prescribed by division (F) of  139
this section, an approved training agency shall remit, in the  140
form and manner required by the administrative section of the  141
Ohio construction industry licensing board, a fee of one dollar  142
per credit hour of instruction for each person who attends the  143
training agency's continuing education courses.  144
       (H) No person shall knowingly act as or claim to be a  145
certified residential-only contractor unless that person holds  146
or has been issued a residential-only certificate under this  147
section.  148
       (I) Upon the request of the appropriate specialty section  149
of the Ohio construction industry licensing board, the attorney  150
general may bring a civil action for appropriate relief,  151
including a temporary restraining order or permanent injunction  152
in the court of common pleas of the county where the person  153
alleged to have violated division (F) or (H) of this section  154
resides or is acting or claiming to be a certified residential-  155
only contractor or offering or purporting to offer continuing  156
education courses, as applicable.  157
       (J) This section does not require a residential contractor  158
or any other person to obtain a residential-only certification  159
to work on residential construction projects in this state.  160
       (K) Nothing in this chapter shall be construed to require  161
a direct labor subcontractor to be licensed or certified under  162
this chapter.  163
S. B. No. 54  Page 7
As Introduced
       Sec. 4740.99. Whoever violates division (A) of section  164
4740.13 or division (H) of section 4740.18 of the Revised Code  165
is guilty of a minor misdemeanor on the first violation and a  166
misdemeanor of the fourth degree on subsequent violations.  167
       Section 2. That existing section 4740.99 of the Revised  168
Code is hereby repealed.  169