Bill Summary for S 205 (2021-2022)

Summary date: 

Mar 9 2021

Bill Information:

View NCGA Bill Details2021
Senate Bill 205 (Public) Filed Tuesday, March 9, 2021
AN ACT TO PROVIDE CONSUMER PROTECTIONS RELATED TO ROOFING REPAIR CONTRACTORS.
Intro. by Sawyer, Newton.

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Bill summary

Enacts Article 9, Roofing Repair Contractors, to GS Chapter 75. Defines four terms. Excludes the following from the scope of the Article: licensed general contractors; persons engaged in the demolition of a structure or the cleanup of construction waste and debris that contains roofing material; persons working under the direct supervision of a roofing repair contractor who is hired either as an employee, day laborer, or contract laborer; and persons providing roofing-related services as a subcontractor under a licensed general contractor. Explicitly prohibits described conduct, including (1) advertising or promising payment of insurance deductibles as inducement to sales and services, (2) offering or providing upgraded work or products, granting allowances or discounts against charged fees, or payment as inducement, (3) offering or providing anything of value in exchange for permitting the display of advertisement, and (4) taking any of five specified acts concerning insurance claims in connection with roofing or exterior repair. Allows for the contractor to communicate with a consumer's insurer if the consumer gives permission and the contractor is not compensated for the communication. Prohibits adjusters and public adjusters from acting as a roofing repair contractor on the same project or claim. Prohibits beginning work before an insurance claim for roof repair or replacement has been approved or denied, unless the work is necessary to prevent further loss.

Establishes detailed requirements for a written contract for roofing repairs. Mandates that a consumer have the right to cancel a contract by giving written notice of cancellation to the contractor at the address provided in the contract within 72 hours after being notified by the insurer that the claim for loss was denied or within four business days after signing the contract, for any reason. Requires the contractor to tender payment to a consumer within 10 days of contract cancellation, less reasonable compensation for emergency services performed to prevent further damage that was acknowledged by the consumer in writing. Prohibits requiring more than 50% of payment prior to project completion. Requires written change orders signed by the consumer. Requires immediate written notification and disclosure by the contractor to the consumer for any cancellation of the contractor's workers' compensation coverage. Establishes seven disclosures repair estimates made in anticipation of the filing of an insurance claim for loss must include, including documentation to support damages claimed on the estimate and a detailed description and itemization of any emergency repairs already completed by the contractor. Deems all violations of the Article an unfair and deceptive trade practice under GS 75-1.1. 

Effective 90 days after the date the act becomes law and applies to contracts for roofing repair entered into on or after date. 

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