Maryland Home Improvement Commission

Public Business Meeting Minutes

Date: May 10, 2007February 6, 2008

Time: 10:00 a.m.

Place: 500 N. Calvert Street

Baltimore, Maryland 21202

MEMBERS PRESENT: John Borz, Chairman

Marilyn Jumalon

Rossana Marsh

George Rose

Joseph Tunney

Andrew Snyder

I. Jean White

OTHERS PRESENT: Kathleen M. SmithJennifer Grimes, Acting Executive Director

Jennifer Grimes, Assistant Executive Director

Joel Jacobson, Assistant Attorney General

Sheri Henderson, Licensing Supervisor

Kimberly G. Rosenthal, Administrative Aide

Leonard HowieStanley Botts, Commissioner

Helen Johnson, Administrative Officer

Call to Order

The meeting was called to order at 10:10 01 a.m.

IntroductionsClosed Session

At 10:05 a.m., the members of the Commission voted to adjourn the open session to a closed session. The purpose of the closed session wasto discuss the employment status and performance of an employee of the Commission.Each member of the Commission in attendance, Commissioners Borz, Jumalon, Marsh, Snyder, Tunney, and White,voted to adjourn to a closed session. TheCommission adjourned to a closed session, pursuant to its authority under State Government Article, Sec. 10-508(a)(1), Annotated Code of Maryland. In addition to the above referencedmembers of the Commission, Stanley A. Botts, Commissioner of the Division ofOccupational and Professional Licensing, was present during the closed session. At 10:30 a.m., the Commission returned to open session.

The Executive Director introduced Commissioner Leonard Howie to the Commissioners. .

Minutes

The Minutes of the April 5November 1, 2007, 2007 meeting were unanimously approved.

Guaranty Fund

The Guaranty Fund balance as of March December 31, 200731, 2007 was $2,132,504.741,946,254.76.

Summary Report

Ms. Smith Grimes submitted the following data for Fiscal Year 2007 2008 through April January 20082007:

Investigator/Complaint Activity /

April Totals

/

FY 2007 Year To Date

Claims Received / 29 / 534
Complaints Received / 223 / 2400
Monetary Status
Monetary Settlement by Investigators / $5,600.00 / $299,707.92
Restitution thru Criminal Cases / $207,619.00 / $1,951,165.25
Total / $213,219.00 / $2,250,873.17
Guaranty Fund
Guaranty Fund Award / $74,974.92 / $1,047,890.20
Fees Recovered / $3,330.00 / $307,044.56
Licensing Activity / Current/Expired / Total
Contractor/Salesperson / 14,803/25,260 / 40,063
Sub-Contractor / 615/3,067 / 3,682
Salesperson / 2,043/11,017 / 13,060
Contractor/Salesperson (Corp/Part) / 5,985/6,773 / 12,758
New Applications Received / 115 / 1041
Telephone Calls Received / 464 / 6859
Applications Returned to Contractors / 81 / 943
Investigator/Complaint Activity /

December

/

January

/

FY 2008 Year To Date

Claims Received / 35 / 33 / 181
Complaints Received / 247 / 162 / 1256
Monetary Status
Monetary Settlement by Investigators / $25,150.00 / $17,910.00 / $135,598.06
Restitution thru Criminal Cases / $185,557.00 / $61,313.96 / $870,822.45
Total / $210,707.00 / $79,223.96 / $1,006,420.50
Guaranty Fund
Guaranty Fund Award / $52,741.00 / $131,247.00 / $846,799.36
Fees Recovered / $17,765.00 / $0 / $62,669.28
Licensing Activity / Current/Expired / Current/Expired / Total
Contractor/Salesperson / 15,560/25,546 / 15,676/25,564 / 41,240
Sub-Contractor / 649/3,099 / 653/3,102 / 3,755
Salesperson / 2,195/11,182 / 2,221/11,189 / 13,410
Contractor/Salesperson (Corp/Part) / 6,463/6,894 / 6,665/6,960 / 13,625
New Applications Received / 110 / 125 / 635
Telephone Calls Received / 160 / 209 / 3529
Applications Returned to Contractors / 25 / 37 / 310

Examination Results

The overall passing rate for November January 2008 was 6165%.

Old BusinessNew Business

a.  HB1020Remote Control for Spa’s and Pools

The Commission reviewed a remote control called the Jandy Aqualink-PDA-PS6 Pool/Spa Combination Control System. The Commission decided that they had no jurisdiction over this device.

The Executive Director informed the Commission that HB 1020 passed in the House of Delegates, but died in the committee in the Senate.

b.  Temporary Licensing death provisionHouse Bill 409

The Acting Executive Director discussed House Bill 409 which is Raising the maximum amount of money that the Maryland Home Improvement Commission may award from the Home Improvement Guaranty Fund to 1 claimant for acts or omissions of 1 contractor from $15,000 to be $20,000; raising the maximum amount of a specified total claim for which the Commission may issue specified orders from $2,500 to be $5,000 etc.

c.  Making Homeowners Aware

Commissioner Snyder proposed the Commission to consider contacting officials in Allegany and Garrett County for a workshop about the Maryland Home Improvement Commission. We need to make homeowners aware of the Commission.

The Executive Director informed the Commission that her research of other states that oversee similar licensing and regulatory activities concluded that there was no mandate for a death provision. The research concluded that nearly every state operates as Maryland does, the license dies with the licensee if the licensee is a sole proprietor. The Commissioners unanimously agreed to retain the existing position with no change. All agreed that every effort would be made to expedite the licensing process in the case of the death of the licensee if the company wanted to remain in business.

New Business

a.  Administrative Law Judge Decisions

The Commission discussed Administrative Law Judges' decisions regarding Guaranty Fund payouts for contractors who were licensed at the time a contract was signed. The Commissioners expressed concern that complainants, in certain situations, were not receiving an award from Administrative Law Judges as deserved. MHIC's Assistant Attorney General will formulate an appropriate communication (collaboration with pertinent parties) in response in to this matter.

b.  Reportable Complaints

There is a 30 day period before a complaint becomes reportable.

c.  Preliminary discussion regarding 2008 Legislative Session

The Executive Director asked the Commissioners to consider what, if any, proposed changes they would recommend to the law and/or regulation for the '08 Legislative Session. The Department's Legislative Agenda reflects the priorities of the Secretary, the Executive Director will be present recommendations, if any, to him for consideration

Meeting was adjourned at 11:05 11:45 a.m.

______

John Borz, Chairman Kathleen M. SmithJennifer Grimes, Acting Executive Director