Bill Summaries: S653 (2015-2016 Session)

  • Summary date: Mar 31 2015 - View summary

    Enacts new GS Chapter 75, Article 9, Residential Contractors, setting out definitions for use in the section, including general construction and residential contractor.  Sets out four areas of prohibited conduct for residential contractors, including advertising or promising or offering to pay or rebate all or any portion of any insurance deductible as an inducement to the sale of any goods or services, as well as offering or providing anything of value in exchange for permitting the residential contractor to display a sign or any other type of advertisement at the consumer's premises. Prohibits an adjuster or public adjuster as specified from acting as a residential contractor. 

    Includes provisions that require a contract for general construction, including a public contract, which must be in writing and signed by both parties. Sets out requirements for a valid contract, including that it must contain a copy of a work estimate with several specified disclosures as well as requiring that it contain the name and physical address of the residential contractor. 

    Includes provisions concerning a consumer's right to cancel a contract if not covered by insurance, providing consumers that have entered into a written contract with a contractor to provide goods or services to be paid from the proceeds of a property and casualty insurance policy can cancel the contract at any time prior to midnight of the third business day after the consumer has received written notification from the insurer that any part of the claim is not covered by the insurance policy. Sets out procedures for the cancellation of a contract. Requires a refund of a cancelled contract for general construction to be tendered to the consumer within 10 days after the cancellation, with a few exceptions. Establishes that a violation of GS Chapter 75, Article 9, constitutes an unfair and deceptive trade practice. 

    Enacts new GS 114-8.8, Older adult exploitation database, requiring the Attorney General to operate and maintain an internet-accessible database that collects reports made by financial institutions pursuant to GS 108A-115(a)(4). Requires the Attorney General to ensure that the database is accessible to various entities, agencies, and personnel. Provides that the contents of the database are not considered to be a public record, with procedures taken to protect the privacy of the contents. 

    Amends GS 108A-115, concerning the duty to report suspected fraud, adding the Attorney General to the list of individuals/entities to which financial institutions, officers, or employees must report instances of financial exploitation. Makes clarifying changes regarding the medium for reports required under GS 108A-115(a).

    Effective January 1, 2016.