Roll Call! Senate Imposes $2500 Fine for Unauthorized Construction Projects over $2500 (20-10), 2021

H.157 AN ACT RELATING TO REGISTRATION OF CONSTRUCTION CONTRACTORS

PASSED
in the State Senate
on May 21, 2021, by a vote of
20-10

Purpose: To mandate that construction contractors register with the State and conform to certain regulatory requirements in order to legally do business on residential homes in Vermont.

Analysis: H.157 requires anyone who engages in a residential construction job exceeding $2500 in labor and materials with work including but not limited to, interior and exterior construction, renovation, and repair; painting; paving; roofing; weatherization; installation or repair of heating, plumbing, solar, electrical, water, or wastewater systems, to register with the Office of Professional Regulation, and to enter into a written contract with the homeowner before receiving payment or beginning work.

In order to register, an applicant must show proof of liability insurance coverage at the minimum levels of $300,000 per claim and $1,000,000 aggregate, and pay the following fees at initial application and biennial renewal: (1) Registration, individual: $75 (2) Registration, business organization: $250. (3) State certifications: $75 for a first certification and $25 for each additional certification.

Anyone failing to comply can be subject civil penalty for “unauthorized practice” which, according to 3 V.S.A. 127 could mean a fine of "not more than $2,500.00 for practicing or permitting the practice of a regulated profession without authority."

Those voting YES believe this bill will help prevent fraud and provide consumer protection when fraud occurs, and create a mechanism for the state to communicate with residential contractors about compliance with existing and future environmental building regulations.

Those voting NO believe the cost of this bill exceeds any potential benefit. (Between 2012 and 2017 there were only 587, not all of which would be covered under this law, consumer complaints with total losses to homeowners of $3.1 million. That’s a $620,000 a year problem, for which H.157 will create an estimated $740,000 annual cost in registration fees, plus other costs to businesses and consumers to comply with contract mandates, etc., decreased supply of contractors, not to mention the social cost of fining workers for handshake deals. Mechanisms already exist for consumers to seek redress for poor or fraudulent actions by contractors without expanding the state bureaucracy.

As Recorded in the House Journal, Tuesday, May 21, 2021: “Thereupon, the proposal of amendment of the Committee on Economic Development, Housing and General Affairs, as amended, was agreed to and third reading of the bill was ordered on a roll call, Yeas 20, Nays 10.." (Read the Journal, p. 1257).

Watch the floor debate on YouTube.

Related:

Roll Call! House Criminalizes “Handshake” Deals for Residential Construction Projects over $3500

These roll call reports are designed to help citizens understand how their elected representatives vote on key issues. The bills may or may not eventually become law. Click on the link to the bill page at the top of this post for an up to date status on the bill.

How They Voted

Becca Balint (D-Windham) – YES
Philip Baruth (D-Chittenden) – YES
Joseph Benning (R-Caledonia) – NO
Christopher Bray (D-Addison) – YES
Randy Brock (R-Franklin) – NO
Brian Campion (D-Bennington) – YES
Thomas Chittenden (D-Chittenden) – YES
Alison Clarkson (D-Windsor) – YES
Brian Collamore (R-Rutland) – NO
Ann Cummings (D-Washington) – YES
Ruth Hardy (D-Addison) – YES
Cheryl Hooker (D-Rutland) – YES
Russ Ingalls (R-Essex-Orleans) – NO
M. Jane Kitchel (D-Caledonia) – YES
Virginia Lyons (D-Chittenden) – YES
Mark MacDonald (D-Orange) – YES
Richard Mazza (D-Chittenden-Grand Isle) – NO
Richard McCormack (D-Windsor) – YES
Alice Nitka (D-Windsor District) – NO
Corey Parent (R-Franklin) – NO
Chris Pearson (P-Chittenden) – YES
Andrew Perchlik (D-Washington) – YES
Anthony Pollina (P/D-Washington) – YES
Kesha Ram (D-Chittenden) – YES
Richard Sears (D-Bennington) – YES
Michael Sirotkin (D-Chittenden) – YES
Robert Starr (D-Essex-Orleans) – NO
Joshua Terenzini (R-Rutland) – NO
Richard Westman (R-Lamoille) – NO
Jeanette White (D-Windham) – YES

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