Bill Summary for H 816 (2017-2018)

Summary date: 

Apr 12 2017

Bill Information:

View NCGA Bill Details2017-2018 Session
House Bill 816 (Public) Filed Tuesday, April 11, 2017
Intro. by Arp.

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Bill summary

Enacts new Article 9, Roofing Repair Contractors in GS Chapter 75, which provides as follows.

Provides that the Article is to be in addition to, not in lieu of, a required licensure.

Requires written contracts for roofing repairs and specifies items to be included in those contracts. Defines roofing repairs as repairs to an existing roofing system with an estimated cost of more than $750, including a total replacement of the existing roofing system. Sets out additional required provisions for contracts for roofing repairs for which the consumer anticipates using insurance proceeds to pay for the performance of the contact and the roofing repair contractor is aware of the source of funds. The additional requirements include the inclusion of a specified notice of cancellation.

Allows a consumer who has entered into a written contract for roofing repair with a roofing repair contractor to provide materials, labor, or services to be paid from insurance proceeds to cancel the contract at any time before midnight of the third business day after the consumer has received written notice that the insurer will not be paying a claim for the repair. Sets out the procedure for cancellation. Requires the roofing repair contractor to return any payments or deposits and cancel any indebtedness within 10 days after a contract has been cancelled. Specifies that if the roofing repair contractor has performed any emergency services, acknowledged by the consumer in writing to be necessary to prevent further damage to the premises, the roofing repair contractor is entitled to the reasonable value of the emergency services. Any provision in a written contract for roofing repairs that in the event of cancellation requires the payment of any fee for anything except emergency services is a violation of GS 75‑1.1 and is not enforceable against any consumer who has cancelled a contract under this statute.

Prohibits a roofing repair contractor from: (1) advertising or otherwise promising or offering to pay, or paying, all or any portion of any insurance deductible as an inducement to the sale of any materials, labor, and or services; (2) offering, or providing, any upgraded work, material, or product, granting any allowance or offering any discount against the fees to be charged or paying the consumer any form of compensation, gift, prize, bonus, coupon, credit, referral fee, trade‑in or trade‑in payment, advertising, or other fee or payment as an inducement to the sale of any materials, labor, or services; (3) offering, or providing, anything of value in exchange for permitting the roofing repair contractor to display a sign or any other type of advertisement at the consumer's premises; or (4) with respect to any insurance claim in connection with the repair or replacement of roof systems, or the performance of any other exterior repair, replacement, construction, or reconstruction work, obtaining a power of attorney from or on behalf of a consumer, offering to report or adjust a claim on behalf of a consumer, representing or negotiating or obtaining or attempting to obtain, an assignment of claims, rights, benefits, or proceeds from or on behalf of a consumer, or offering or advertising to represent or negotiate, obtain, or attempt to obtain an assignment of claims, rights, benefits, or proceeds.

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

Violations of the Article are an unfair and deceptive trade practice.

Applies to contracts for roofing repair entered into on or after October 1, 2017.

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