NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3246B
SPONSOR: Brindisi (MS) TITLE OF BILL:
An act to amend the general business law, in relation to roofing
contract provisions
PURPOSE OR GENERAL IDEA OF BILL:
This bill is intended to curtail the practice of unscrupulous persons
posing as legitimate roofing contractors offering repair or remodeling
services but either perform substandard work that must be done again or
never even perform the services. These persons, frequently referred to
as "storm chasers", often descend on an area after a catastrophic
wind/hail storm or any natural disaster.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1. Amend General Business Law section 770 by adding a new subdi-
vision 8 to define a "roofing contractor" and include as exemptions from
the law's provisions residential owners and farmers who perform their
own roofing improvement work and any federal, state or municipal employ-
ees performing roofing work.
Section 2. Amend the General Business Law by adding a new section 771-b
to outline the requirements and responsibilities of roofing contractors.
More specifically, this new section would contain the following
provisions:
*Require a roofing contractor to enter into a written contract with a
property owner before engaging in roof repair services, this contract
must follow all of the requirements set forth in the law for a home
improvement contractor.
*A new subdivision 2 shall prohibit roofing contractors from advertising
or promising to pay or rebate any or all of an insurance deductible as
an inducement to the sale of any goods or services.
*Subdivision 3 provides a homeowner the right to cancel a roofing
improvement contract within three business days after notice from their
insurer that the claim for repairs has been denied in whole or part.
*Subdivision 4 stipulates that an owner shall not be responsible for any
payments after the contract has been cancelled except for work done
before cancellation. This right would not apply to emergency repairs
where the work was initiated by the owner to meet a bona Me emergency of
the owner and the roofing contractor is entitled to the reasonable value
of such repairs.
*Subdivision 5 prohibits a roofing contractor from requiring a deposit
and allows a roofing contractor to invoice for materials upon delivery
to the property owner.
*Subdivision 6 prohibits a roofing contractor from abandoning or failing
to perform, without justification, a roofing improvement contract it has
entered into, nor can the contractor materially deviate from or disre-
gard the plans or specifications for the work.
*Subdivision 7 stipulates that a roofing contractor shall not fail to
pay for materials or services rendered when the contractor has received
sufficient funds as payment for the contract applicable to those materi-
als and services.
*Subdivision 8 bars a roofing contractor from performing any reporting,
adjusting or negotiating of a claim for the owner, nor can the contrac-
tor receive compensation for a referral to an entity that performs such
claim services.
*Subdivision 9 implements minimum insurance requirements for roofing
contractors. These requirements would only apply to roofing improvement
contracts performed in political subdivisions that do not contain any
insurance requirements for roofing contracts. The roofing contractor
would have to provide a valid certificate of workers' compensation
insurance coverage (or if a sole proprietor a certificate of exemption),
a certificate of general liability and property damage insurance with
limits of at least $100,000 per person/$300,000 per occurrence for bodi-
ly injury and at least $50,000 each occurrence and aggregate for proper-
ty damage.
Section 3. Effective date is 180 days after enactment.
JUSTIFICATION:
While the vast majority of roofing contractors are honest and scrupulous
business persons, there is a very small group of people who purport to
be legitimate contractors but are actually con artists. These illegit-
imate groups of people are commonly known as "storm chasers" who often
come into an area right after a natural disaster promising to quickly
and efficiently restore the roofs of people who have suffered damage and
loss from the disaster. Storm chasers end up either performing extremely
substandard work or do not even perform the work. These con artists will
often walk door to door in a neighborhood and use high-pressure sales
tactics to compel consumers into signing roof repair contracts. A
particular target for storm chasers is the elderly, especially those who
have paid off their mortgage because if the mortgage is not paid off
then the insurer must include the mortgage holder (usually a bank) on
the check.
In sum, this proposed legislation would establish a prohibition on roof-
ing contractors advertising or promising to pay or rebate all or any
part of an insurance deductible as an inducement to the sale of any
goods or services. The measure allows a residential property owner to
cancel a roofing contract within 3 business days after receiving notice
from the owner's insurer that the claim has been denied in whole or in
part. Within 10 days after cancellation, the roofing contractor is
required to return any payments made by the insured and note or evidence
of indebtedness. The roofing contractor would be entitled to compen-
sation for their work on emergency repairs.
LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect 180 days after it shall have become a law.
