OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
S.B. 238 Bill Analysis
135th General Assembly
Click here for S.B. 238’s Fiscal Note
Version: As Introduced
Primary Sponsor: Sen. Schaffer
Effective date:
Abby Gerty, Research Analyst
SUMMARY
 Establishes an optional certification for specialty residential construction contractors.
 Specifies procedures for certification including application requirements, renewal
procedures, and continuing education requirements for specialty residential contractors
with exceptions.
 Prohibits an individual from claiming to be a certified residential-only contractor if that
individual has not been issued a residential-only certificate, and imposes criminal
penalties for violations of that prohibition.
DETAILED ANALYSIS
Specialty residential contractor
The bill establishes a new, optional certification for specialty residential construction
contractors. Under the bill, a “residential-only certification” is issued by the Ohio Construction
Industry Licensing Board (OCILB) to a residential heating, ventilating, and air conditioning
contractor, residential refrigeration contractor, residential electrical contractor, residential
plumbing contractor, or residential hydronics contractor.1
Certification issuance and renewal
Application requirements
An individual or residential contracting company that seeks a residential-only
certification must complete an application that includes an individual’s name, the name of the
residential contracting company associated with the individual, the amount of time the
1 R.C. 4740.18(A)(1).
May 21, 2024
Office of Research and Drafting LSC Legislative Budget Office
individual has engaged in residential contracting, and any other information required by the
appropriate specialty section of the OCILB.2 The application must include a $100 certification
fee unless the certificate is set to expire in less than five years. In such a case, the fee is reduced
proportionally based on the duration of the certification period. The certification fee cannot be
less than $20.3
Additionally, the applicant must maintain and provide proof of contractor’s liability
insurance that includes coverage of at least $250,000 for complete operations and coverage of
at least $250,000 for construction, improvements, renovations, repairs, or maintenance
performed by subcontractors.4
When a residential-only certification is issued, it must include all the following:
 The individual’s name and certificate number;
 The name of the residential contracting company associated with the individual;
 The license number associated with any other licenses held by the individual.
Renewal
Under the bill, all residential-only certificates expire every five years on the same date of
the expiration date of the original residential-only certificate. An individual holding a valid,
unexpired residential-only certificate can renew it by submitting an application to the
appropriate specialty section of the OCILB. The application must be submitted 90 days before
the certificate’s expiration, along with a $100 renewal fee.5
The bill requires a renewal application to provide proof that the individual still meets
the liability insurance requirements under the initial application requirements.6
Continuing education
Requirements
In addition to the renewal application requirements mentioned above, an applicant
must provide proof that they have completed 20 hours of OCILB-approved continuing
education in the preceding five-year certification period. If the certification period is less than
five years, the number of continuing education hours required is instead the product of four
hours times the number of full years that elapsed since the certification was issued. For
2 R.C. 4740.18(B)(1).
3 R.C. 4740.18(B)(4).
4 R.C. 4740.18(B)(2) and (3).
5 R.C. 4740.18(D).
6 R.C. 4740.18(D)(1).
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As Introduced
Office of Research and Drafting LSC Legislative Budget Office
example, if the certification period was three years, 12 continuing education hours would be
required. The number of required continuing education hours must be at least four hours.7
Under the bill, a continuing education course may be counted for the renewal of a
certificate if both of the following apply:
 The course is offered by a training agency approved by the Administrative Section of the
OCILB that pays a $25 annual fee for the purposes of establishing and maintaining that
approval;
 In addition to the $25 fee, a training agency must remit a fee of $1 per credit hour of
instruction for each person who attends the training agency’s continuing education
courses.8
 The course of study or program of instruction is approved by the appropriate specialty
section of the Board following payment by the training agency of a one-time fee of
$10 plus $1 per credit hour.9
Exceptions
Within one year after the expiration of a residential-only certificate, the bill allows the
appropriate specialty section of the OCILB to waive any renewal requirements if that section
finds that the applicant substantially meets renewal requirements or their failure to apply for
renewal is due to excusable neglect. A specialty section of the OCILB can impose any conditions
deemed necessary for renewal and assess a late fee of up to $200.10
Criminal penalties
The bill prohibits an individual from knowingly acting as, or claiming to be a certified
residential-only contractor without being issued a residential-only certificate. An individual who
acts as a residential contractor without a residential-only certificate is guilty of a minor
misdemeanor for the first violation and a fourth degree misdemeanor for each subsequent
violation. If an individual is found to be in violation of this prohibition, the Attorney General, on
the appropriate specialty section’s request, may bring a civil action for appropriate relief,
including a temporary restraining order or permanent injunction. This prohibition also applies
to an individual purporting to offer continuing education courses.11
7 R.C. 4740.18(D)(2).
8 R.C. 4740.18(G).
9 R.C. 4740.18(F).
10 R.C. 4740.18(E).
11 R.C. 4740.18(H) and (I) and 4740.99.
P a g e |3 S.B. 238
As Introduced
Office of Research and Drafting LSC Legislative Budget Office
HISTORY
Action Date
Introduced 03-26-24
ABSB0238IN-135/ts
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As Introduced


Statutes affected:
As Introduced: 4740.99