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Home Improvement Laws Changed After Complaints
by Eric Thomason
Less than a month after the County’s new Home Improvement Laws went into effect, they were altered by the Putnam County Legislature at a special meeting called on Monday, August 27.
When the laws went into effect at the beginning of August, angry contractors began appearing before the Legislature and the Home Improvement Board to voice their displeasure. The Legislature’s Rules Committee chairman Mike Semo, a Republican from the Town of Patterson, had maintained that the Home Improvement Laws could be changed if there was enough documented evidence brought in by contractors proving change was needed.
According to contractors at the meeting, they wanted three major problems with the law addressed.
First, the required insurance, especially the vehicle insurance, was so expensive that many expressed doubt that they could continue as licensed contractors in Putnam County.
Second, the contractors wanted to know whether these laws were going to be enforced.
Third, the contractors claimed they were not involved in the process of putting together the laws, and wanted to see the level of communication changed in the future.
As a result, the insurance requirements for contractors were changed. While the new laws had required contractors to carry commercial general liability insurance totaling $2 million a year in order to receive their license - $1 million for personally-owned vehicles and $1 million for commercially-owned vehicles. This caused a number of contractors to say they were considering not applying for their licenses in Putnam County.
At earlier meetings, Mr. Semo had asked for documentation of the costs, as he and his other legislators did not consider the cost increase would be as great as some of the contractors were claiming.
According to Legislator Sam Oliverio, Jr., of Putnam Valley, following the Protective Services meeting on Tuesday, August 21, members of the Legislature had finally heard enough to decide that change was needed.
"This meeting wasn’t supposed to happen tonight," said Oliverio. "We saw that something was radically wrong, called a meeting and fixed it."
The Home Improvement Laws came into effect after unscrupulous contractors swindled numerous consumers. However, Terry Intrary, Kent Representative to the Legislature, said that protecting the consumers is not the only goal of the nine-member board. He said the Legislature listened very carefully and decided to act now, adding that their job "is to protect [both] the consumer and the contractor."
Putnam Valley resident Barry Buzzurro, who was a force behind the laws after becoming a victim of construction fraud, also spoke in favor of rescinding the insurance laws.
In his quest for laws to protect the consumer from the fraud he faced, Mr. Buzzurro said that making contractors pay higher insurance costs "does nothing for me". However, he pointed out that raising the bond does makes sense, noting, "For seventy more dollars, the consumer gets five times the protection." He stressed that he is all for protecting the "legal contractor" but said there were several contractors working illegally that had brought about the need for the laws.
Raising the bond was amongst some of the other changes made to the laws that were not disputed by the contractors present. The other changes included an increase in the contractors’ annual license fee from an annual rate of $75 to a bi-annual fee of $250. The bond permits they are required to carry to purchase a license is now $25,000, which is up from the previous rate of $5,000.
Buzzurro said that the number one complaint he has heard against the new laws is, "Why do I have to get a license when I see a lot of guys working without a license?" This, he said, is a matter of enforcement. Said Buzzurro, "When someone is stealing our money they need to be prosecuted." He called for the District Attorney’s office "to take action," saying it made no sense to have the laws if they are not enforced.
Local contractor Dan Kelleher agreed, saying, "You are enacting these laws and that is great. Where is the enforcement of these laws? You see ten or twelve guys driving down the road in the back of a truck – I know those guys don’t have a license."
Joseph LaBarbera of the Home Improvement Board responded, "Approximately thirty contractors have been summoned for working without a license." He said more enforcement would be forthcoming.
Contractor Gene Patter believes the problem stemmed from the actions of one man, convicted contractor John Cleary, who served five months after being charged with grand larceny. He said the laws are "a horrible thing to do to us."
Not being properly informed about the meetings also upset Mr. Patter. He said he felt lucky to hear about the special meeting and told many of his friends, who also did not know about it. Mr. Patter questioned which papers carried news of the meeting and the location of flyers that were supposedly placed.
Patter claims that contractors have been kept in the dark about the new laws, saying, "Nobody knows about the law being passed." He said he was "really appalled" when he found out about the insurance increase, but is happy the laws are now being changed.
Committee Chairman Mike Semo defended the process of making a law, saying, "Every one of our Rules Committee meetings are open to anyone."
The lawmakers say that the laws have been changed to enable contractors to purchase affordable insurance, and they maintain that additional enforcement is forthcoming. Only time will tell if further complaints arise as more contractors find out about the changes. The next Rules Committee meeting, on September 18th, however, is likely to be devoted to the 2002 budget, and not this issue.
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