Overview of Illinois Legislature & State Roofing Industry Licensing Act

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1 Overview of Illinois Legislature & State Roofing Industry Licensing Act Rod Petrick, Chair State Roofing Advisory Board Margaret Vaughn, Lobbyist Chicago Roofing Contractors Association IL Council of Code Administrators

2 Congress vs. IL General Assembly? Federal D.C. - U.S. Senators & Congressmen State Level - Springfield State Senate & IL House of Representatives

3 Federal vs. State CONGRESS is legislative branch of the Federal Government and consists of the U.S. House of Representatives (Congressmen) and U.S. Senators who meet in Washington, D.C. and deal with national and international issues. GENERAL ASSEMBLY is the legislative branch of State Government which consists of the Illinois State Senate and the US House of Representatives who meet in Springfield and deal with state issues such as roofing licensure.

4 IL House of Representatives 118 members 2 year term

5 Illinois State Senate - 59 Members Staggered 2 & 4 year terms

6 In November 2016 several races over $2 million spent on each side Governor Rauner spent $14 million on State Legislative Races in 2016 Salary of Legislator - $67,800

7 Key Players in Springfield Governor Bruce Rauner

8 House Leaders Speaker Mike Madigan (D-Chicago) Minority Leader Jim Durkin R-Western Springs

9 Senate Leaders President John Cullerton D-Chicago Minority Leader Christine Radogno R-Lemont

10 Chair of Licensing Committees Rep. Bob Rita, D-Blue Island Sen. Iris Martinez, D-Chicago

11 From Concept to a Law Draft Legislation Find a House Sponsor Bill Assigned to House Committee House Committee Hearing Full House Vote Find a Senate Sponsor Bill Assigned to Senate Committee Senate Committee Hearing Full Senate Vote

12 Bill Gets to Governor Desk 60 Days to Sign into Law or Veto If Vetoed Need Not Just Majority 3/5ths Votes to Pass

13 CRCA PUSHES for SUCCESSFUL PASSAGE ROOFING INDUSTRY LICENSING ACT Created Company Licensure through Division of IL Division Financial & Professional Regulation (IDFPR)

14 Law Licenses Roofing Contractor Not Individual Roofers (except Sole-Proprietors) Definitions - Roofing Contractor is one who has the experience, knowledge and skill to construct, reconstruct, alter, maintain and repair roofs and use materials and items used in the construction, reconstruction, alteration, maintenance and repair of all kinds of roofing and waterproofing as related to roofing, all in such manner to comply with all plans, specifications, codes, laws, and regulations applicable thereto, but does not include such contractor's employees to the extent the requirements of Section 3 of this Act apply and extend to such employees

15 Definitions Roofing to construct, reconstruct, alter, maintain and use materials and items used in the construction, reconstruction, alteration and repair of all kinds of roofing and waterproofing. Nothing shall be construed to require sheet metal, electrical, plumbing, refrigeration or mason contractors or carpenters who perform chimney repairs or install soil pipes, electrical jacks, gutters, heating and cooling vents, wood decks or any other kind of roof deck or television antenna to be licensed under the Act

16 Exam Requirement Added in 2000

17 Exam Requirement Added Qualify Party (or test taker to law) Qualifying Party means the individual filing as a sole proprietor, partner of a partnership, officer of a corporation, trustee of a business trust, or party of another legal entity, who is legally qualified to act for the business organization in all matters connected with its roofing contracting business, has the authority to supervise roofing installation operations, and is actively engaged in day to day activities of the business organization.

18 Every Roofing Contractor Must Have A Qualifying Party What if Qualifying Party leaves? If Qualifying Party status is terminated DPR must in be notified 30 days and NEW Qualifying Party named NEW Qualifying Party must pass the IL Roofing QP exam within 7 months Can someone act as a qualifying party for more than 1 company? May act as qualifying party for one additional licensee if there is common ownership of at least 25% between the two companies

19 Limited vs. Unlimited License? Limited roofing license" roofing residential properties consisting of 8 units or less. Limited Exam consists of technical aspects of residential roofing. $10,000 Bond "Unlimited roofing license" unlimited in nature and includes roofing on residential, commercial, and industrial properties. Unlimited Exam consists of technical aspects of residential, commercial and industrial roofing. $25,000 Bond

20 Limited vs Unlimited Permits (a-3) A municipality or a county that requires a building permit may not issue a building permit to a roofing contractor unless that contractor has provided sufficient proof that he or she is licensed currently as a roofing contractor by the State. Holders of an unlimited roofing license may be issued permits for residential, commercial, and industrial roofing projects. Holders of a limited roofing license are restricted to permits for work on residential properties consisting of 8 units or less.

21 State Roofing Contractor License Requirements 1. Must have obtained public liability and property damage insurance; 2. Workers Compensation Insurance covering his employees or is approved as a self-insurer of Workers Comp in accordance with Illinois Law; 3. Must have Illinois Unemployment Insurance EIN #; 4. $10,000 Bonded for Limited or $25,000 Bond for Unlimited; 5. Qualifying Party Passed Exam.

22 Where does roofing contractor have to list state license #? Each State licensed roofing contractor shall affix the roofing contractor license number and the licensee's name, as it appears on the license, to all of his or her contracts and bids

23 Advertising It is unlawful for any person to engage in the business or act in the capacity of or hold himself or herself out in any manner as a roofing contractor without having been duly licensed under the provisions of this Act. No person licensed under this Act may advertise services regulated by this Act unless that person includes in the advertisement the roofing contractor license number and the licensee's name, as it appears on the license

24 Commercial Vehicles Any entity offering services regulated by the Roofing Industry Licensing Act, shall affix the roofing contractor license number and the licensee's name, as it appears on the license, on all commercial vehicles used in offering such services. An entity in violation of this Section shall be subject to a $250 civil penalty. This Section may be enforced by local code enforcement officials employed by units of local government as it relates to roofing work being performed within the boundaries of their jurisdiction. *If the alleged violation has been corrected prior to or on the date of the hearing scheduled to adjudicate the alleged violation, it shall be dismissed.

25 Where does building official have to list state license #? The official issuing building permits shall affix the roofing contractor license number to each application for a building permit and on each building permit.

26 VIOLATIONS OF ROOFING ACT PENALTIES AND FINES Grounds for disciplinary action. The Department may refuse to issue or to renew, or may revoke, suspend, place on probation, reprimand or take other disciplinary or non-disciplinary action as the Department may deem proper, including fines not to exceed $10,000 for each violation (both qualifying party and company), with regard to any license for any one or combination of the following causes:

27 Highlights of some of the 31 violations Advertising in any manner which is false, misleading or deceptive Violating Consumer Fraud and Deceptive Business Act Allowing the use of his or her roofing license by an unlicensed roofing contractor for the purposes of providing roofing or waterproofing services Or aiding or assisting another person in violating this Act.

28 What if someone steals your license #?

29 Post Notice at Permit Counter A person who knowingly, in the course of applying for a building permit with a unit of local government, provides the roofing license number or name of a roofing contractor whom he or she does not intend to have perform the work on the roofing portion of the project commits identity theft under paragraph (8) of subsection (a) of Section of the Criminal Code of 1961 Punishable as Class 3-4 Felony depending on past record and value of permit

30 Government Issued ID Law Effective August 2012 Building permit applicant must present government issued photo ID to building official and ID# and name must be retained in permit file Put in law as a deterrent to Identity Theft and to create paper trail in case it happens

31 What do if you have been victim of Identity Theft? Work with building department official and property owner to file police report (contact CRCA with questions regarding law). Show officer copy of Roofing Act, building permit application, pictures of job site, etc., or any other evidence. Determine if identity was stolen or loaned out by a willing contractor If license was loan out by licensed contractor to unlicensed contractor he could be subject to fines and loose license and must be reported to IDPR.

32 2017 REPEAL of ROOFING LICENSURE ACT ATTEMPT

33 SB 1819 Repeal of Roofing Industry Licensure Act Governor Rauner wants to reduce professional barriers to employment by Repealing the Licensure Acts of 12 different professions 02/08/17 At Governor s request, Sen. Pam Althoff (R-Crystal Lake) introduces SB 1819 to Repeal Roofing Industry Licensing Act IFDPR Reaches out to CRCA Lobbyist to regarding Repeal

34 Sen. Pam Althoff (R-Crystal Lake)

35 CRCA MOBILIZES TROOPS

36 Plan of Action CRCA & Lobbyist Develop Strategy LOBBYIST orchestrates conference call with Sen. Althoff, IDPR Director & Legal Staff, Rod Petrick, Jay Refieuna, Springfield Fire Marshal Chris Richmond, Frank Marino of Safety Check and Insurance & Codes Representative to educate them on dangers perils to consumers, workers and construction economy in Illinois

37 Grass Roots Effort Members Urged to contact: Sen. President Cullerton Sen. Iris Martinez, Chair of Licensing Committee Their local state representatives & senators

38 Sen. Iris Martinez, Chair of Senate Licensing

39 Coalition Building Lobbyist Builds Coalition Opposes Repeal: IL Council of Code Administrators IL AFL-CIO Roofers Local #11 IL Firefighters Association Insurance Industry

40 Repeal Update 03/13/16 because of mounting opposition, Sen. Althoff decides not to advance SB 1891 Repeal of 6 other professions moving forward. Damaging issues for industry can pop up at any time on any day the Legislature is in session Important for industry to be proactive, build and maintain rapport with legislators and have constant presence at Capitol

41 HB 732 Limit exemption of building owner s employees HB 732 was introduced by Rep. Dan Burke (C- Chicago), 2017 CRCA Legislator of the Year Narrows exemption in law in so that employees of a commercial or industrial property owner can do roof repair as defined by ICC but anything beyond that or torching requires a roofing contractor license Waiting Passage on House Floor

42 CRCA 2017 Legislator of the Year Rep. Dan Burke (D-Chicago)

43 State Roofing Advisory Board Acts as Grievance Board 5 Licensed Roofing Contractors 1 Licensed Roofing Contractor Representing Home Builders 1 Public Member (non-contractor) 1 Member of Retailers Association

44 Online IDFPR Complaint Google Illinois Department of Professional Regulation File Compliant Take you right to complaint intake page

45 Overview of Illinois Legislature & State Roofing Industry Licensing Act Rod Petrick, Chair State Roofing Advisory Board Margaret Vaughn, Lobbyist Chicago Roofing Contractors Association IL Council of Code Administrators