Editor’s note: This commentary is by state Rep. Mark Higley, R-Lowell, who represents the Orleans-Lamoille District in the Vermont House of Representatives.
[T]he Sunrise Review report on the home improvement/builder industry from the secretary of state’s Office of Professional Regulation has been completed. It recommends the mandatory registration for providers of home-improvement services, which includes work done in or on residential homes, and voluntary state-backed certification. The yearly fee for registration would be $100. I haven’t heard about the fee for certification, but the review says it should provide fee flexibility so that revenues are matched to expenses of administration. Certification standards will have to be developed. Registrations are “licenses” and consequently can be publicly warned, conditioned or revoked by OPR in the event of misconduct. “Registrants are answerable to civil and criminal process, are insured, and are compliant with other State law and obligations, such as child-support, taxes, judgment orders and where applicable, the presence of workers’ compensation insurance.”
This recommendation comes after three public hearings in 2017. The first had only one attendee, the second had 12 and the third had 20. Information also came from the Attorney General’s Consumer Assistance Program (CAP), in particular, a consumer complaint list generated over a five-year period from 2012-2017. The reports states that “CAP received 587 consumer complaints about home-improvement services, with claimed losses exceeding $3.1 million.”
As you can see, this will mean a major change for Vermont’s home improvement industry. I believe this is unnecessary and the Legislature should not consider this proposal. I have looked over the consumer complaint list and it is just that, a complaint list. I have also talked with some on the list that have a completely different story than what the complainant has stated. I asked and was given information from the tax department on “purchases made by people who are engaged in construction of: 1. Residential maintenance and repair; 2. Single-family residential structures; 3. Multifamily residential structures; 4. Other residential structures.” In a year, approximately $353 million in taxable purchases, or $21.2 million in sales and use tax has been received. This, over a five-year period is $1.76 billion in taxable purchases, or $106 million in sales and use tax. Not to make light of the consumers that have been ripped off by some contractors, but the percentage of this problem related to the overall money the industry generates for businesses and the state is minimal. Three hundred fifty-seven of the 587 complaints, or 61 percent, are under $5,000, which qualify for small claims court. There is already avenues for the consumer to seek compensation in the event of harm from a contractor such as: CAP, mediation; small claims court; and other court action. My best advice for consumers looking to hire a home improvement contractor is go to or call the Consumer Assistance Program and ask or search out “How to Avoid Home Improvement Rip-Offs.” The phone number is 800-649-2424 and the link to the Consumer Assistance Program is here.
We say we want to support small business in Vermont but we continue to overregulate. I believe this will not only increase the cost to do business here, but will increase the cost to the consumer.
