ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, February 19, 1991                   TAG: 9102190361
SECTION: VIRGINIA                    PAGE: B3   EDITION: NEW RIVER VALLEY 
SOURCE: THOMAS BOYER LANDMARK NEWS SERVICE
DATELINE: RICHMOND                                LENGTH: Medium


CONTRACTORS' BILL CALLED BLOW TO VA. CONSUMERS

The House of Delegates came down on the side of the building industry on Monday, overwhelmingly passing what one legislator called "the most anti-senior citizen, anti-homeowner, anti-consumer" measure of the 1991 legislative session.

The House voted 82-17 to erase a requirement that home-improvement contractors pass out a sheet of consumer information to their customers before starting work.

If upheld by the Senate, the vote effectively will overrule recent efforts by the state Board of Contractors to better police the home-improvement industry.

Del. Clifton Woodrum, D-Roanoke, who led the House floor effort on the builders' behalf, said the new rules were too complex for small operators who "work out of their homes, out of a tool kit, out of the back of the truck."

Others disagreed. "One sheet of paper basically is all you're asking," said Del. Marian VanLandingham, D-Alexandria. "It's a pretty minor burden."

The board, after receiving a record 1,143 complaints about contractors last year, imposed tough new rules last month to make sure consumers know their rights before the contractor drives the first nail.

"You finally get a regulatory body to do the right thing," said Jean Ann Fox, president of the Virginia Citizens Consumer Council. "It goes into effect Jan. 1, and the next thing you know, they're in the General Assembly to undo it."

Contractors and home builders' lobbying groups said they were fighting excess paper work.

Del. George Grayson, D-Williamsburg, who led the fight Monday against the builders, suggested some contractors may not want consumers to know the law, such as their right to change their minds on a home-improvement contract within three days of signing it.

\ Monday's House of Delegates vote to dismantle regulations protecting consumers from unscrupulous contractors was only the latest of many defeats for consumers in the 1991 General Assembly.

"It's a hard year," acknowledged Jean Ann Fox, president of the Virginia Citizens Consumer Council. Among the other setbacks for Fox's organization:

Lending. Legislation that would have barred financial institutions from making loans under the rule of 78s died in the House Corporations, Insurance and Banking committee. The rule of 78s is a method of computing interest under which borrowers can unknowingly pay hundreds of extra dollars if they pay off loans early. Banks and small-loan companies opposed the bill.

Auto Safety. The House Roads committee, responding to lobbying from the auto industry, killed a bill that would have required car dealers to put stickers on light trucks and minivans warning customers that those vehicles frequently don't meet federal passenger-car safety standards.

Insurance. The consumer council drafted legislation to tighten the regulation of credit insurance, which surveys have shown carries high premiums and pays relatively few claims. But chances of passage were deemed so slight in the General Assembly that the council decided to work with the state Bureau of Insurance instead.

Extended warranties. Legislation to regulate extended warranties offered on such products as appliances and cars was amended in a House committee to remove autos - one of the largest categories of such warranties.



 by CNB