Wisconsin Builders Association: Applauds Van Hollen opinion on reining in municipalities power to impose requirements for dwelling contractors

Contact: Annie Rubens, WBA Director of Communications, (608) 242-5151 ext. 19, arubens@wisbuild.org

(MADISON) Attorney General J.B. Van Hollen issued a formal opinion today stating that state statutory financial responsibility requirements and state statutory continuing education requirements for one- and two-family dwelling construction contractors preclude municipalities from imposing greater financial responsibility, education, or examination requirements upon such contractors.

In response to a request from Juneau County Corporation Counsel Mark B. Hazelbaker, Van Hollen’s opinion first notes that the Dwelling Code’s primary purpose is to promote statewide uniformity. The opinion states that the Dwelling Code expressly creates state requirements relating to the financial responsibility and education of dwelling contractors.

“WBA shares the concerns of local governments who want to protect new home buyers by making sure the contractors who build those homes are trained, and are financially-responsible” said WBA President Jim (Kuba) Kubasta. “However, the Department of Commerce has a comprehensive system of testing, continuing education and financial responsibility requirements that apply to home builders statewide. Local licensing requirements are no longer relevant or necessary. Those local requirements that still exist add nothing to consumer protection, and just add more red tape to the construction process.”

Van Hollen also noted that the contractor certification council created by the Legislature under section 15.157(5) of the Wisconsin Statutes is required by section 101.625 of the Wisconsin Statutes to make recommendations and provide advice to the Department of Commerce concerning (1) rules for certifying the financial responsibility of such contractors; (2) suitable courses for such contractors; and (3) the development of course examinations for such contractors.

Van Hollen emphasized that municipalities’ jurisdiction over the construction and inspection of dwellings must meet the requirements of the state Dwelling Code, which specifically impose requirements relating to education and financial responsibility. Thus, the opinion concludes that “ordinances requiring local licensure are preempted if they conflict with, defeat the purpose of or violate the spirit of state contractor financial responsibility and education requirements by imposing on persons seeking a building permit for one- or two-family dwellings greater financial responsibility, education, or examination requirements than required by state law.”

“Wisconsin has one of the best systems of laws governing new home construction in the country” said WBA Executive Vice President Jerry Deschane. “A cornerstone of that system since 1980 has been statewide uniformity, which maximizes consumer protection while minimizing needless government bureaucracy. We applaud Attorney General Van Hollen for supporting Wisconsin consumers and Wisconsin jobs.”

A copy of the formal opinion is available at http://www.doj.state.wi.us/ag/opinions/OAG-06-10.pdf