Vermont would set up its first-ever certification process for construction contractors under a bill endorsed by a Senate committee Thursday.
Between 2012 and 2017, the Attorney General’s consumer complaint division received nearly 600 consumer complaints about construction projects, detailing losses totaling $3.1 million, as some contractors disappeared with deposits, performed low-quality work or failed to finish a job.
H.157 is an attempt to change that. The dense 12-page bill sets up a new registry system for the future, outlines the potential for problems in not having a registry, and aims for a system to help people recognize which contractors are legitimate and which are not.
“Homes are our biggest assets for most Vermonters,” said Sen. Alison Clarkson, D-Windsor. “This is a step toward protecting them more fully. This gives us an opportunity for education and really helps us shine a light on this issue.”
There is no master list of home contractors operating in the state. Vermont is one of just eight states where that’s the case.
“It’s the Wild West out there,” Clarkson said.
Officials say there’s no way for the state to contact all Vermont contractors for updates on public health requirements, safe working conditions, codes and standards, and available trainings and certifications.
Nor is there any standard process for adjudicating fraud complaints against contractors.
The new system of mandatory registration applies to contractors working on projects costing $2,500 or more. The bill clarifies that the measure is meant to protect against fraud, deception, breach of contract and violations of law, and is not intended to create standards or professional qualifications.
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The committee approved the legislation 4-1, with Sen. Randy Brock, R-Franklin, opposed.
“The nagging concern that I have is, are we just creating another administrative monster with little likelihood of solving the problem for which it’s intended?” he said.
Brock said it’s clear to him that consumer fraud is a real problem in the home repair business, but this bill doesn’t get any money back for a consumer who’s defrauded. That consumer, he said, still has to sue in small claims court in an effort to get the money back.
Sen. Michael Sirotkin, D-Chittenden, said he thought Brock had failed to take into account the preventive nature of the bill.
“I think having this structure in the first place will see a reduction in the amount of the cases and amount of complaints,” he said.
Brock also wondered if the people who are being scammed now — older Vermonters or people who don’t know how to identify a reliable contractor — are unlikely to be the ones using the registry’s online portal effectively.
“My suspicion is the usage might not be as high as we might want or think,” he said. “And it’s difficult to put the toothpaste back in the tube. I’m very unconvinced, other than that we’d be creating a monster.”
Senate President Pro Tem Becca Balint, D-Windham, said that, as the longest-serving member of the committee, the bill is of particular importance to her because of how long the Legislature has been trying to move it forward — no matter how big or small of a difference it might make.
The Vermont Home Builders and Remodelers Association has been working sporadically for 15 years to get a registration system in place, most recently with a 2019 bill that was almost derailed but then passed the Senate — and yet failed to become law.
“Yes, this will not get us everything we want in terms of holding people accountable for their bad actions toward consumers,” Balint said. “But it’s long past time that we are looking out for people when they are just simply trying to do repairs to their homes.”
H.157 passed the House in April. Now, it heads to the Senate floor.