ROOFING CONTRACTORS/CONSUMER PROTECTION.

View NCGA Bill Details2013-2014 Session
House Bill 880 (Public) Filed Thursday, April 11, 2013
A BILL TO BE ENTITLED AN ACT TO LICENSE ROOFING CONTRACTORS AND TO PROVIDE CONSUMER PROTECTIONS RELATED TO ROOFING CONTRACTORS.
Intro. by R. Brawley.

Status: Re-ref Com On Finance (House Action) (Jul 11 2013)

SOG comments (1):

Long Title

House committee substitute changes the long title. The original title was:

A BILL TO BE ENTITLED AN ACT TO ENACT CONSUMER PROTECTIONS STATUTES RELATED TO ROOFING CONTRACTORS AND TO ESTABLISH REGISTRATION FOR ROOFING CONTRACTORS.

H 880

Bill Summaries:

  • Summary date: Jul 11 2013 - More information

    House committee substitute makes the following changes to the 1st edition.

    Amends the short title.

    Amends proposed GS 87-15.23, requiring roofing contractors to be licensed by the State Licensing Board (Board) for General Contractors (previously, only required roofing contractors to be registered as roofing contractors to do business in North Carolina). Makes conforming changes throughout the act reflecting the change to becoming licensed as a roofing contractor in lieu of registering as one.  Provides that roofing contractors cannot seek to be licensed as a roofing contractor under a different name during periods where the contractor's license is suspended or revoked. Provides that a suspension or revocation of a corporate or business entity is considered to be the suspension or revocation of all owners, employees, or affiliates of the entity.

    Makes clarifying changes to proposed GS 87-15.24, Exemptions, and provides that the provisions of the new proposed Article do not apply to licensed NC general contractors.

    Amends proposed GS 87-15.25, Requirements for licensure; issuance, requiring applicants to submit to the Board a sworn statement of the applicant's experience and qualification as a roofing contractor (was, submit proof that the applicant has at least five years of experience as a roofing contractor). Provides that a roofing contractor's license is suspended on the date that the required liability insurance policy is canceled or lapses for nonpayment of premiums and cannot be restored without proof of an active insurance policy.

    Reduces the fee amounts charged for licensure in proposed GS 87-15.27 and deletes the listing and fee for a corporate license.

    Amends proposed GS 87-15.29, concerning limitations of the license, requiring a roofing contractor to submit the contractor's license number when applying for any state or local permits for work on the contractor's own property, and to display the license number on all signs, cards, correspondence, estimates, contracts, and commercial vehicles used in connection with the roofing services. Makes a clarifying change.

    Amends proposed GS 87-15.30, directing the Board to establish on the internet or other publicly accessible technology a system which can be used to verify the license status of every licensed roofing contractor. Sets out the information required to be provided on the system.

    Amends proposed GS 87-15.31, concerning disciplinary action for licensees, providing that violations of any provision of GS Chapter 75, Article 8, can result in the denial, restriction, suspension, or revocation of a license. Makes a clarifying change. Provides that the Board can determine that a licensee is not in good standing on the basis of violations of the provisions in GS Chapter 87 and violations of GS Chapter 75, Article 8, in addition to the violation of any rules adopted by the Board.

    Amends proposed GS 87-15.32, concerning complaints, making technical deletions and clarifying changes. Also deletes language that stated that a complaint will still be referred to the NC Attorney General's Consumer Protection Division even if a response is not received.

    Amends proposed GS 87-15.33, concerning criminal history record checks, providing that no license will be issued to an applicant that refuses to consent to a criminal history record check. Makes a clarifying change.

    Enacts new GS 87-15.34, Roofing contractor's agent for service of process, making the Secretary of State the agent for service of process for any applicant that is not a resident of North Carolina, except for foreign corporations, LLCs, limited liability partnerships, and foreign limited partnerships authorized to do business in North Carolina and having a current licensed agent and address on file with the Secretary of State.

    Enacts new GS 87-15.35, Roofing Contractor License Revolving Fund, establishing said Fund and providing that fees collected by the Board under GS Chapter 87, Article 1B, for roofing contractors will be deposited in the Fund to be used by the Board for the implementation of GS Chapter 87, Article 1B.

    Amends proposed GS 75-140, concerning definitions for GS 75, Article 8, Roofing Contractors, making a clarifying change.

    Deletes the following proposed statutes:

    GS 75-142, Registration required; penalty.

    GS 75-146, Roofing contractor's agent for service of process.

    GS 75-147, Application for building permits; disclosure of registration certificate number.

    GS 75-148, Verification of roofing contractor's registration number to enforcement officials and public.

    GS 75-149, Roofing Contractor Registration Revolving Fund.

    Makes conforming and reorganizational changes.

    Amends proposed GS 75-142, concerning prohibited conduct, prohibiting roofing contractors from offering rebates of insurance deductibles, discounts, or any compensation to the consumer in order to induce sales as well as prohibiting the contractor from offering to obtain an assignment of benefits on any insurance claim.

    Prohibits an adjuster or a public adjuster from acting as a roofing contractor.

    Amends proposed GS 75-143, concerning the requirement of a written contract, making a technical deletion.

     


  • Summary date: Apr 16 2013 - More information

    Article 8. Enacts new Article 8, Roofing Contractors, in GS Chapter 75. Provides that the Article is to be in addition to, not in lieu of, a required licensure. Requires registration under Article 1B (Roofing Contractors, also created in the act) of GS Chapter 87 before acting as a roofing contractor or bringing suit related to the person's business or capacity as roofing contractor. Makes it a Class 2 misdemeanor, subject to a fine of up to $500, to act as a roofing contractor without being registered, or while the registration is revoked or suspended, or to violate any provision of GS Chapter 87, Article 1B. Makes it Class 2 misdemeanor to register, or attempt to do so, under another person's name while the contractor's registration is suspended or revoked.

    Prohibits roofing contractors from performing specified acts, including providing anything of value in exchange for allowing the contractor to display advertisement on the consumer's premises. Requires written contracts for roofing repairs and specifies items to be included in those contracts, including a specific notice of cancellation. Allows a consumer who has entered into a written contract with a roofing contractor for goods or services to be paid from the proceeds of a property and casualty insurance policy to cancel the contract prior to midnight of the third business day after the consumer receives notice that all or part of the claim or contract is not covered under the insurance policy. Provides further requirements for such a cancelation.

    Provides that every registration applicant who is a nonresident appoints the Secretary of State and their agent for service of process. Makes an exception for registered foreign corporations and partnerships that have a current registered agent and registered address on file. Specifies further requirements for service of process.

    Requires a roofing contractor to supply the permit issuing official with their registration certificate number when applying for a permit for engaging in roofing related work. Also provides for noting subcontractor registration numbers on permits and displaying contractor numbers. Requires verification of a roofing contractor registration number, upon request, to city, county, and state enforcement officials, and to the public. Requires the registrar to establish a verification system for confirming roofing contractor registration certificates and registration status. Specifies items to be included in the system.

    Creates the NC Roofing Contractor Registration Revolving Fund consisting of monies collected under the registration act. Allows fund monies to be expended by the NC Licensing Board for General Contractors for implementation and administration of the registration act. Makes violation of the Article an unfair and deceptive trade practice.

    Effective October 1, 2013.

    Article 1B. Enacts new Article 1B (Roofing Contractors) in GS Chapter 87. Authorizes the State Licensing Board for General Contractors (Board) to administer and enforce the article. Specifies the Board's powers and duties. Specifies individuals and entities that are exempt from the Article. Sets out requirements for registration as a roofing contractor, including paying required fees and maintaining a certificate of liability insurance. Requires issuing registration when an applicant meets all of the requirements. Requires registration to be renewed on or before June 30 of each year. Specifies further requirements for registration renewal and for renewal of a revoked registration. Requires a registration not renewed by August 30 to be suspended for failure to renew, and one not renewed by January 1 to be revoked. Specifies fees. Requires notification in changes to contractor's name, address, legal service agent, or cease of business.

    Entitles registration holders to engage in the roofing business, subject to specified limitations, including having a valid registration number and being in good standing at the time of soliciting a project and during subsequent job performance and prohibiting a registration from being shared or used by another.

    Requires the Board to maintain an indexed record of roofing contractor registrations and information maintained on individual roofing contractors. Allows for disposal of inactive files after three years. Provides for furnishing copies of information. Allows the Board to deny, restrict, suspend, or revoke a registration or refuse to issue or renew a registration in specified circumstances, including if the registrant or applicant commits an act of gross malpractice or incompetence, has been declared incompetent, or has failed to pay taxes. Allows the applicant to appeal the Board's decision. Requires the Board to read each complaint and to make a notation in the roofing contractor's recording showing the date the complaint was received and the nature of the complaint. Requires the Board to notify the contractor of the complaint. Matters must be referred to the Attorney General's Consumer Protection Division. Provides for punishment based on the outcome of the complaint referral.

    Requires applicants for registration to consent to a criminal history record check and specifies further requirements related to the record check and reviewing any convictions. Provides that convictions are not an automatic bar to registration and provides factors to be considered.

     


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