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State Bills

  • State Bill: GA H 301

    2013 GA H 301
    Author: Weldon
    Version: Introduced
    Version Date: 02/11/2013

    House Bill 301

    By: Representatives Weldon of the 3rd, Meadows of the 5th, Smith of the 134th, Maxwell of the 17th, and Shaw of the 176th

    A BILL TO BE ENTITLED

    AN ACT

    To amend Chapter 14 of Title 43 of the Official Code of Georgia Annotated, relating to licensure and regulation of the practices of electrical contracting, plumbing contracting, low-voltage electrical contracting, utility contracting, and conditioned air contracting, so as to create the Division of Roofing Contractors within the State Construction Industry Licensing Board; to provide for the licensure and regulation of roofing contractors; to revise the statement of legislative purpose and add definitions; to provide for requirements for licensure; to prohibit unlicensed performance of roofing contracting; to provide exceptions; to provide for sanctions for violations; to provide for related matters; to provide for a contingent effective date; to repeal conflicting laws; and for other purposes.

    BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

    SECTION 1.

    Chapter 14 of Title 43 of the Official Code of Georgia Annotated, relating to licensure and regulation of the practices of electrical contracting, plumbing contracting, low-voltage electrical contracting, utility contracting, and conditioned air contracting, is amended by revising Code Section 43-14-1 , relating to declaration of purpose, as follows:

    "43-14-1.

    This chapter is enacted for the purpose of safeguarding homeowners, other property owners, tenants, and the general public against faulty, inadequate, inefficient, or unsafe electrical, plumbing, low-voltage wiring, utility contracting, roofing contracting, or conditioned air installations. The practice of electrical contracting, plumbing contracting, installing, or repairing, low-voltage contracting, utility contracting, roofing contracting, and conditioned air contracting are declared to be businesses or professions affecting the public interest; and this chapter shall be liberally construed so as to accomplish the purposes stated in this Code section. "

    SECTION 2.

    Said chapter is further amended by revising paragraph (12.1) of Code Section 43-14-2 , relating to definitions, as follows:

    " (12.1) 'Roofing contracting' means the construction, installation, application, alteration, repair, remediation, reconstruction, removal, or replacement of a roof or roofing system of a building or structure, including application of roof covering, sheathing, coating materials and waterproofing membranes and the related substrate, insulation, interconnecting soffit and gutter systems, roof ventilation systems and underlayment, and flashing materials comprising such roof or roofing system.

    (12.2) 'Roofing contractor' means any person, including an individual, sole proprietorship, partnership, limited liability company, or corporation who is engaged in roofing contracting under express or implied contract or who bids for, offers to perform, purports to have the capacity to perform, or does perform roofing contracting under express or implied contract. An employee of a roofing contractor who receives only a salary or hourly wage for performing roofing contracting work shall not be required to be licensed under this chapter, except that those employees upon whom the qualification for licensing of a partnership, limited liability company, corporation, or other legal entity is based, as required pursuant to Code Section 43-14-8.5, shall be licensed.

    (12.3) 'Telecommunication system' means a switching system and associated apparatus which performs the basic function of two-way voice or data service, or both, and which can be a commonly controlled system capable of being administered both locally and remotely via secured access. "

    SECTION 3.

    Said chapter is further amended by revising subsection (b) of Code Section 43-14-3 , relating to the creation of the State Construction Industry Licensing Board, as follows:

    "(b) The board shall be composed of 27 32 members as follows:

    (1) Five members known as the Division of Electrical Contractors, one of whom shall be a consulting engineer engaged in electrical practice, another of whom shall be the chief electrical inspector of a county or municipality and shall have served in such office for five years immediately preceding appointment to the board, and the remaining three of whom shall be engaged in the electrical contracting business;

    (2) Five members known as the Division of Master Plumbers and Journeyman Plumbers, one of whom shall be a full-time plumbing inspector of a county or municipality, three of whom shall be master or contracting plumbers, and one of whom shall be a journeyman plumber;

    (3) Five members known as the Division of Conditioned Air Contractors, one of whom shall be a licensed professional engineer engaged in mechanical practice, one of whom shall be the chief conditioned air inspector of a county or municipality, and three of whom shall be conditioned air contractors with more than five years of installation and service experience in the trade;

    (4) Five members known as the Division of Low-voltage Contractors, one of whom shall be an alarm system low-voltage contractor, one of whom shall be an unrestricted low-voltage contractor, one of whom shall be a telecommunication system low-voltage contractor, one of whom shall be a professional electrical engineer, and one of whom shall be the chief electrical inspector of a county or municipality;

    (5) Five members known as the Division of Utility Contractors, three of whom shall be utility contractors, one of whom shall be a registered professional engineer, and one of whom shall be an insurance company representative engaged primarily in the bonding of construction projects; and

    (6) Five members known as the Division of Roofing Contractors, three of whom shall be roofing contractors, one of whom shall be a licensed architect or a registered professional engineer, and one of whom shall be the chief building inspector of a county or municipality at the time of appointment; and

    (6) (7) Two members who shall not have any connection with the electrical contracting, roofing contracting, plumbing, or conditioned air contracting businesses whatsoever but who shall have a recognized interest in consumer affairs and consumer protection concerns. "

    SECTION 4.

    Said chapter is further amended by revising subsection (a) of Code Section 43-14-4 , relating to the chairperson, meetings, organization of divisions, meetings of divisions, and quorums within divisions, as follows:

    "(a) The office of chairperson shall be rotated among the five six divisions enumerated in Code Section 43-14-3 unless the board, through its rules and regulations, provides otherwise. Any vacancy in the office of chairperson shall be filled by the members for the unexpired term. The person selected to fill the vacancy shall be a member of the same division as the previous chairperson. "

    SECTION 5.

    Said chapter is further amended by revising paragraphs (2) and (4) of Code Section 43-14-5 , relating to the general powers of the board, as follows:

    "(2) Provide by regulation for reciprocity with other states in the registration and licensing of electrical contractors, master plumbers, journeyman plumbers, low-voltage contractors, utility contractors, roofing contractors, or conditioned air contractors and in the certification of utility contracting foremen, provided that such other states have requirements substantially equal to the requirements in force in this state for registration, licensure, and certification; provided, further, that a similar privilege is offered to residents of this state; "

    "(4) Establish the policies for regulating the businesses of electrical contracting, plumbing, low-voltage, utility, roofing, and conditioned air contracting; "

    SECTION 6.

    Said chapter is further amended by revising subsection (a) of Code Section 43-14-6 , relating to powers and duties of divisions, as follows:

    "(a) The Division of Electrical Contractors, with respect to applicants for a license to engage in or licensees engaging in the business of electrical contracting; the Division of Master Plumbers and Journeyman Plumbers, with respect to applicants for a license to engage in or licensees engaging in the business of plumbing as master plumbers or journeyman plumbers; the Division of Low-voltage Contractors, with respect to applicants for a license to engage in or licensees engaging in the business of low-voltage contracting; the Division of Utility Contractors, with respect to applicants for a license to engage in or licensees engaging in the business of utility contracting and with respect to applicants for a certificate to be a utility manager or utility foreman or holders of a utility manager or utility foreman certificate; and the Division of Conditioned Air Contractors, with respect to applicants for a license to engage in or licensees engaging in the business of conditioned air contracting; and the Division of Roofing Contractors, with respect to applicants for a license to engage in or licensees engaging in the business of roofing contracting , shall:

    (1) Approve examinations for all applicants for licenses or certificates, except for utility contractor licenses and utility foreman certificates. The Division of Electrical Contractors shall approve separate examinations for Class I and Class II licenses. Class I licenses shall be restricted to electrical contracting involving multifamily structures of not more than two levels or single family dwellings of up to three levels. In addition, the structures shall have single-phase electrical installations which do not exceed 400 amperes at the service drop or the service lateral. Class II licenses shall be unrestricted. The Division of Master Plumbers and Journeyman Plumbers shall approve separate examinations for Master Plumber Class I, Master Plumber Class II, and Journeyman Plumbers. Master Plumber Class I licenses shall be restricted to plumbing involving single-family dwellings and one-level dwellings designed for not more than two families and commercial structures not to exceed 10,000 square feet in area. Master Plumber Class II licenses shall be unrestricted. The Division of Conditioned Air Contractors shall approve separate examinations for Class I and Class II licenses. Class I licenses shall be restricted to the installation, repair, or service of conditioned air systems or equipment not exceeding 175,000 BTU (net) of heating and five tons (60,000 BTU) of cooling. Class II licenses shall be unrestricted. The Division of Low-voltage Contractors shall approve separate examinations for Low-voltage Contractor Class LV-A, Low-voltage Contractor Class LV-T, Low-voltage Contractor Class LV-U, and Low-voltage Contractor Class LV-G. Class LV-A licenses shall be restricted to alarm and general system low-voltage contracting, Class LV-T licenses shall be restricted to telecommunication and general system low-voltage contracting, Class LV-G licenses shall be restricted to general system low-voltage contracting, and Class LV-U licenses shall be unrestricted and permit the performance of alarm, telecommunication, and general system low-voltage contracting. The Division of Roofing Contractors shall have authority to develop and approve an examination for roofing contracting in accordance with the provisions of Code Section 43-14-8.5 ;

    (2) Register and license or grant a certificate and issue renewal licenses and renewal certificates biennially to all persons meeting the qualifications for a license or certificate. The following licenses or certificates shall be issued by the divisions:

    (A) Electrical Contractor Class I;

    (B) Electrical Contractor Class II;

    (C) Master Plumber Class I;

    (D) Master Plumber Class II;

    (E) Journeyman Plumber;

    (F) Conditioned Air Contractor Class I;

    (G) Conditioned Air Contractor Class II;

    (H) Low-voltage Contractor Class LV-A;

    (I) Low-voltage Contractor Class LV-T;

    (J) Low-voltage Contractor Class LV-G;

    (K) Low-voltage Contractor Class LV-U;

    (L) Utility Contractor; Class A;

    (M) Utility Contractor; Class B;

    (N) Utility Contractor; Class U;

    (O) Utility Manager (certificate); and

    (P) Utility Foreman (certificate); and

    (Q) Roofing Contractor;

    (3) Investigate, with the aid of the division director, alleged violations of this chapter or other laws and rules and regulations of the board relating to the profession;

    (4) After notice and hearing, have the power to reprimand any person, licensee, or certificate holder, or to suspend, revoke, or cancel the license or certificate of or refuse to grant, renew, or restore a license or certificate to any person, licensee, or certificate holder upon any one of the following grounds:

    (A) The commission of any false, fraudulent, or deceitful act or the use of any forged, false, or fraudulent document in connection with the license or certificate requirements of this chapter or the rules and regulations of the board;

    (B) Failure at any time to comply with the requirements for a license or certificate under this chapter or the rules and regulations of the board;

    (C) Habitual intemperance in the use of alcoholic spirits, narcotics, or stimulants to such an extent as to render the license or certificate holder unsafe or unfit to practice any profession licensed or certified under this chapter;

    (D) Engaging in any dishonorable or unethical conduct likely to deceive, defraud, or harm the public;

    (E) Knowingly performing any act which in any way assists an unlicensed or noncertified person to practice such profession;

    (F) Violating, directly or indirectly, or assisting in or abetting any violation of any provision of this chapter or any rule or regulation of the board;

    (G) The performance of any faulty, inadequate, inefficient, or unsafe electrical, plumbing, low-voltage contracting, utility contracting, roofing contracting, or conditioned air work likely to endanger life, health, or property. The performance of any work that does not comply with the standards set by state codes or by local codes in jurisdictions where such codes are adopted, provided that such local codes are as stringent as the state codes, or by other codes or regulations which have been adopted by the board, shall be prima-facie evidence of the faulty, inadequate, inefficient, or unsafe character of such electrical, plumbing, low-voltage contracting, utility contracting, roofing contracting, or conditioned air work; provided, however, that the board, in its sole discretion, for good cause shown and under such conditions as it may prescribe, may restore a license to any person whose license has been suspended or revoked;

    (H) With respect to utility contractors, the bidding by such a utility contractor in excess of license coverage; or

    (I) With respect to utility contractors, violations of Chapter 9 of Title 25;

    (5) Review amendments to or revisions in the state minimum standard codes as prepared pursuant to Part 1 of Article 1 of Chapter 2 of Title 8; and the Department of Community Affairs shall be required to provide to the division director a copy of any amendment to or revision in the state minimum standard codes at least 45 days prior to the adoption thereof; and

    (6) Contract with the department for the provision of all goods and services required for the purposes of this chapter to be provided by the department, and the reimbursement of the department therefor; and

    (6) (7) Do all other things necessary and proper to exercise their powers and perform their duties in accordance with this chapter. "

    SECTION 7.

    Said chapter is further amended by adding a new Code section to read as follows:

    "43-14-8.5.

    (a) For purposes of this Code section only, the term 'division' means the Division of Roofing Contractors.

    (b) On and after one year from the date that this Code section becomes effective:

    (1) No person shall engage in the business of roofing contracting as a roofing contractor, as an individual or sole proprietorship, unless such person has a valid license from the division; and

    (2) No partnership, limited liability company, or corporation shall engage in the business of roofing contracting unless there is regularly connected with such partnership, limited liability company, or corporation a person or persons actually engaged in the performance of such business on a full-time basis and supervising the roofing contracting work of all employees of such partnership, limited liability company, or corporation, who have valid licenses for roofing contracting issued to them as provided in this Code section. In a case where a partnership, limited liability company, or corporation has more than one office location from which roofing contracting is performed, at least one person stationed in each such separate office of such partnership, limited liability company, or corporation, engaged in the performance of roofing contracting on a full-time basis and supervising the roofing contracting work of all employees of each such office locations, shall have a valid license issued as provided in this chapter.

    (c) Any person desiring to qualify under the provisions of this Code section who meets the requirements of this Code section, submits proper application to the division, is determined to be qualified by the division in accordance with the requirements of this Code section and pursuant to any rules or regulations promulgated by the division, satisfactorily completes the examination required by this chapter, and pays or has paid the required fees and is not otherwise in violation of this chapter shall be issued a state-wide Roofing Contractor license. Such license shall be issued to the applicant as an individual or sole proprietor to engage in the roofing contracting business in his or her own name, and if the applicant is an individual already holding a valid license or qualifying as an applicant for issuance of such license issued by the division upon whom the qualification for licensing of a partnership, limited liability company, or corporation is based, then such license shall also be in the name of such partnership, limited liability company, or corporation.

    (d) The decision of the division as to the necessity of taking the examination or as to the qualifications of applicants taking the required examination, shall, in the absence of fraud, be conclusive.

    (e) On and after one year from the effective date of this Code section, all individuals desiring to engage in the business of roofing contracting either as an individual person doing business in a trade name or as a sole proprietor or as an individual person qualifying any partnership, limited liability company, or corporation to engage in the business of roofing contracting shall take the examination and qualify under this Code section before engaging in such vocation. Notwithstanding the foregoing, where the applicant is an individual person acting as a qualifier for a partnership, limited liability company, or corporation and has previously obtained and maintained continuously a license issued by the division then the examination requirement shall not apply to such application.

    (f) It shall be the duty of all partnerships, limited liability companies, and corporations qualified under this Code section to notify the division in writing, in accordance with board rules, of death or other severance of connection with any such person or persons upon whom the qualification of any such partnership, limited liability company, or corporation was based. Such notice shall additionally specify whether any other licensed individual then currently qualifies the partnership, limited liability company, or corporation under this chapter, and of the name and address of such person. The employees or successors of such individual or such partnership, limited liability company, or corporation shall continue to be authorized to engage in the business of roofing contracting under a license which was valid at the time of the individual licensee's death or severance for a period of 90 days following the date of such death or severance without replacement of such licensed individual.

    (g)(1) All applicants for examinations and licenses provided for by this Code section and all applicants for renewal of licenses under this Code section shall be required to fill out a form which shall be provided by the division, which form shall show whether the applicant is an individual doing business in a trade name or a sole proprietorship or an individual seeking to qualify a partnership, limited liability company, or corporation. The form shall require the name and address of the individual applicant, and, if a partnership, limited liability company, or corporation, its name and business address, the name and address of each partner, member, or officer, and when and where formed or incorporated, and such other information as the division may require in its discretion. All forms of application for renewal of licenses shall show whether or not the applicant, if it is a partnership, limited liability company, or corporation, has connected with it a qualified person holding a license issued by the division, and if so the name and address of each such person.

    (2) As further qualification for issuance of a roofing contracting license, or renewal of such license, an applicant shall demonstrate to the satisfaction of the division by information submitted in the application and proofs furnished in support, in a manner to be determined by the division, that the applicant:

    (A) Has adopted and implemented a written safety plan or policy addressing the welfare and safety of employees and other persons or property that may be affected by the performance of its work as a roofing contractor, including a requirement for regularly scheduled safety meetings for all field personnel;

    (B) Possesses the requisite competency, ability, and integrity to engage in and perform the business of roofing contracting;

    (C) Is financially responsible and possesses sufficient financial resources to engage in the roofing contracting business; and

    (D) Has general liability insurance relative to the engagement in the business of roofing contracting, and workers' compensation insurance as required by law; provided, however, that where an application is submitted by a person acting as a qualifier of a partnership, limited liability company, or corporation, the proofs and information provided for by this subsection shall relate to such partnership, limited liability company, or corporation.

    (h) The division shall notify each local governing authority of the provisions of this Code section relating to licensure, especially the provisions of subsection (b) of this Code section. The division shall notify such governing authorities that one year after the effective date of this Code section any person desiring a license to engage in roofing contracting shall be required to pass an examination as provided in this chapter.

    (i) On and after one year from the effective date of this Code section, it shall be unlawful for any person to contract with any other person for performance of roofing contracting requiring a license from the division for such work unless the contracting party has a current, valid license as a roofing contractor pursuant to this chapter.

    (j) As a condition to the renewal of licenses, the division may require licensees to complete continuing education in safety, technical training and advances, business management, and government regulation, or other topics addressing the business of roofing contracting, in a format approved by the division, and not exceeding four hours per renewal. The division shall be authorized to waive the requirements of this subsection in cases of hardship, disability, or illness or under such other circumstances as the division deems appropriate. All provisions of this subsection relating to continuing education shall be administered by the division.

    (k) Notwithstanding any other provision of this chapter, a person who engages in roofing contracting in which the contract price of the work on any roofing project does not exceed $500.00 shall not be required to comply with the requirements of this chapter applicable to roofing contractors; provided, however, that it shall be unlawful to subdivide a single roofing project to avoid the requirements of this chapter.

    (l) Notwithstanding any other provision of this chapter to the contrary, any person desiring to qualify for a roofing contracting license under the provisions of this chapter, either individually or as a qualifying agent, shall be eligible for issuance of such a license by the division without examination, provided that:

    (1) Such person submits a proper application and proofs prior to January 1, 2014, pays or has paid the required fees, otherwise meets the requirements for such licensure, and is not otherwise in violation of this chapter; and

    (2) Such person has successfully and efficiently engaged in the comparable category of roofing contracting in this state as provided in this chapter for a continuous period of not less than two years immediately preceding such application and provides proof thereof satisfactory to the division; provided, however, that such person shall be either a resident and citizen of the State of Georgia or, if applying as a qualifying agent for a business organization, such business organization shall be either incorporated in Georgia or authorized and certified to transact business in Georgia with a regular office and place of business in Georgia currently and having had such office and place of business continuously for the two years immediately preceding such application.

    (m) The division shall be authorized to promulgate reasonable rules and regulations for the implementation of the provisions of this Code section. "

    SECTION 8.

    Said chapter is further amended by adding a new Code section to read as follows:

    "43-14-12.3.

    (a) If a person is in violation of Code Section 43-14-8.5, it shall not be necessary for an investigator to observe or witness the unlicensed person engaged illegally in the process of work or to show work in progress or work completed in order to prove the unlawful practice of roofing contracting by an unlicensed person.

    (b) It shall be prima-facie evidence of a violation of this chapter if any person not licensed as a roofing contractor advertises that such person is in the business or profession of a roofing contractor or advertises in a manner such that the general public would believe that such person is a licensed roofing contractor or in the business or profession of roofing contracting. Advertising under this subsection includes, but is not limited to, newspaper, television, radio, telephone directory, mailings, business cards, or signage at a place of business or attached to a vehicle.

    (c) Notwithstanding the provisions of Code Section 43-1-20.1, after notice and hearing, the board may issue a cease and desist order prohibiting any person from violating the provisions of this chapter by engaging in the business or profession of roofing contracting without a license as required under this chapter.

    (d) The violation of any cease and desist order of the board issued under subsection (c) of this Code section shall subject the person violating the order to further proceedings before the board, and the board shall be authorized to impose a fine not to exceed $500.00 for each violation thereof. Each day that a person practices in violation of this Code section and chapter shall constitute a separate violation.

    (e) Nothing in this Code section shall be construed to prohibit the board from seeking remedies otherwise available by statute without first seeking a cease and desist order in accordance with the provisions of this Code section. "

    SECTION 9.

    Said chapter is further amended by revising Code Section 43-14-13 , relating to applicability of the chapter, as follows:

    "(a) This chapter shall apply to all installations, alterations, and repairs of plumbing, air-conditioning and heating, roofing, or electrical or low-voltage wiring or utility systems within or on public or private buildings, structures, or premises except as otherwise provided in this Code section.

    (b) Any person who holds a license issued under this chapter may engage in the business of plumbing, electrical contracting, conditioned air contracting, low-voltage contracting, roofing contracting, or utility contracting but only as prescribed by the license, throughout the state; and except as provided in Code Section 43-14-12, no municipality or county may require such person to comply with any additional licensing requirements imposed by such municipality or county.

    (c) This chapter shall not apply to the installation, alteration, or repair of plumbing, air-conditioning and heating, utility systems, or electrical services, except low-voltage wiring services, up to and including the meters where such work is performed by and is an integral part of the system owned or operated by a public service corporation, an electrical, water, or gas department of any municipality in this state, a railroad company, a pipeline company, or a mining company in the exercise of its normal function as such.

    (d) This chapter shall not prohibit an individual from installing, altering, or repairing plumbing fixtures, air-conditioning and heating, air-conditioning and heating fixtures, utility systems, a roof or its elements and components, or electrical or low-voltage wiring services in a residential dwelling owned or occupied by such individual; provided, however, that all such work must be done in conformity with all other provisions of this chapter, the rules and regulations of the board, and any applicable county or municipal resolutions, ordinances, codes, or inspection requirements.

    (e) This chapter shall not prohibit an individual employed on the maintenance staff of a facility owned by the state or by a county, municipality, or other political subdivision from installing, altering, or repairing plumbing, plumbing fixtures, air-conditioning and heating fixtures, utility systems, a roof or its elements and components, or electrical or low-voltage wiring services when such work is an integral part of the maintenance requirements of the facility; provided, however, that all such work must be done in conformity with all other provisions of this chapter and the orders, rules, and regulations of the board.

    (f) This chapter shall not prohibit any person from installing, altering, or repairing plumbing, plumbing fixtures, air-conditioning and heating fixtures, utility systems, a roof or its elements and components, or electrical or low-voltage wiring services in a farm or ranch service building or as an integral part of any irrigation system on a farm or ranch when such system is not located within 30 feet of any dwelling or any building devoted to animal husbandry. Nothing in this subsection shall be construed to limit the application of any resolution, ordinance, code, or inspection requirements of a county or municipality relating to such connections.

    (g) This chapter shall not apply to low-voltage wiring performed by public utilities, except that such portion of the business of those public utilities which involves the installation, alteration, repair, or service of telecommunication systems for profit shall be covered under this chapter.

    (h) This chapter shall not apply to the installation, construction, or maintenance of power systems or telecommunication systems for the generation or distribution of electric current constructed under the National Electrical Safety Code, which regulates the safety requirements of utilities; but the interior wiring regulated by the National Electrical Safety Code would not be exempt and must be done by an electrical contractor except as otherwise provided by law.

    (i) This chapter shall not apply to any technician employed by a municipal or county-franchised community antenna television (CATV) system or a municipally owned community antenna television system in the performance of work on the system.

    (j) This chapter shall not apply to regular full-time employees of an institution, manufacturer, or business who perform plumbing, electrical, low-voltage wiring, utility contracting, roofing, or conditioned air work when working on the premises of that employer.

    (k) This chapter shall not apply to persons licensed as manufactured or mobile home installers by the state fire marshal when:

    (1) Coupling the electrical connection from the service entrance panel outside the manufactured housing to the distribution panel board inside the manufactured housing;

    (2) Connecting the exterior sewer outlets to the above-ground sewer system; or

    (3) Connecting the exterior water line to the above-ground water system.

    (l) Any person qualified by the Department of Transportation to perform work for the department shall not be required to be licensed under Code Section 43-14-8.2 or 43-14-8.5 or certified under Code Sections 43-14-8.3 and 43-14-8.4 in order to perform work for the department. Any person qualified by the Department of Transportation to perform work for the department shall not be required to be licensed under Code Section 43-14-8.2 or 43-14-8.5 or certified under Code Sections 43-14-8.3 and 43-14-8.4 in order to perform work for a county, municipality, authority, or other political subdivision when such work is of the same nature as that for which the person is qualified when performing department work; provided, however, that such work is not performed on a utility system as defined in paragraph (17) of Code Section 43-14-2 for which the person receives compensation.

    (m) This chapter shall not prohibit any person from installing, altering, or repairing the plumbing component of a lawn sprinkler system from a backflow preventer which was installed by a licensed plumber; provided, however, that all such work must be done in conformity with all other provisions of this chapter, the rules and regulations of the board, and ordinances of the county or municipality.

    (n) Any person who contracts with a licensed conditioned air contractor as part of a conditioned air contract to install, alter, or repair duct systems, control systems, or insulation is not required to hold a license from the Division of Conditioned Air Contractors. The conditioned air contractor must retain responsibility for completion of the contract, including any subcontracted work. Any person who contracts with a licensed conditioned air contractor to perform a complete installation, alteration, or repair of a conditioned air system must hold a valid license from the Division of Conditioned Air Contractors. Any person who contracts to perform for or on behalf of a conditioned air contractor to install, alter, or repair electrical, low-voltage, or plumbing components of a conditioned air system must hold a valid license from the appropriate division of the board.

    (o) This chapter shall not prohibit any propane dealer who is properly insured as required by law and who holds a liquefied petroleum gas license issued by the Safety Fire Commissioner from installing, repairing, or servicing a propane system or the gas piping or components of such system; provided, however, that such propane dealers shall be prohibited from performing the installation of conditioned air systems or forced air heating systems unless licensed to do so under this chapter.

    (p) This chapter shall not apply to any employee or authorized agent of a regulated gas utility or municipal owned gas utility while in the course and scope of such employment.

    (q) Any utility contractor holding a valid utility contractor's license under this chapter shall be authorized to bid for and perform work on any utility system in this state without obtaining a license under Chapter 41 of this title. It shall be unlawful for the owner of a utility system or anyone soliciting work to be performed on a utility system to refuse to allow a utility contractor holding a valid utility contractor's license under this chapter to bid for or perform work on a utility system on the basis that such contractor does not hold a license under Chapter 41 of this title.

    (r) Nothing in this chapter shall preclude a person, including an individual, sole proprietorship, partnership, limited liability company, or corporation, possessing a current and valid residential contracting or general contracting license issued under Chapter 41 of this title, from performing construction work or services with its own employees under engagement directly by or otherwise directly for an owner of real property, which work would otherwise constitute roofing contracting requiring a license under this chapter for such work, provided that:

    (1) The total scope of the work to be performed is predominantly of the type for which such contractor is licensed under Chapter 41 of this title, and any work comprising roofing contracting under the provisions of this chapter is incidental to and an integral part of the work performed within the scope of such license under Chapter 41 of this title and does not exceed 25 percent of the total value at the time of contracting of the work to be performed;

    (2) Such residential or general contractor licensee shall not delegate or assign the responsibility to directly supervise and manage the performance of such work to another person unless such person is licensed under this chapter and the work being performed by such person is within the scope of that person's license; and

    (3) The residential or general contractor licensee performing such work has completed continuing education in safety, technical training and advances, business management, and government regulation, or other topics addressing the business of roofing contracting that would satisfy the continuing education requirements of subsection (j) of Code Section 43-14-8.5 as a condition of license renewal. "

    SECTION 10.

    This Act shall become effective only when funds are specifically appropriated for purposes of this Act in an appropriations Act making specific reference to this Act.

    SECTION 11.

    All laws and parts of laws in conflict with this Act are repealed.

  • State Bill: MN H 930

    Added: Green underlined text
    Deleted: Dark red text with a strikethrough
    Vetoed: Red text
     Links to affected code section
    2013 MN H 930
    Author: Nelson M
    Version: Introduced
    Version Date: 02/25/2013

    H.F. No. 930, as introduced - 88th Legislative Session (2013-2014) Posted on Feb 25, 2013

    A bill for an act

    relating to commerce; regulating homeowner's insurance coverages and residential contracting claims; regulating claims practices; amending Minnesota Statutes 2012, sections 65A.27 , subdivision 1; 72A.201 , subdivision 4; 325E.66 , subdivision 2, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 65A.

    BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

    Section 1. Minnesota Statutes 2012, section 65A.27 , subdivision 1, is amended to read:

    Subdivision 1. Scope. For purposes of sections 65A.27 to 65A.302 65A.304, the following terms have the meanings given.

    Sec. 2. [65A.303] ANNUAL SUMMARY STATEMENTS.

    Subdivision 1. Summary statement of coverages and exclusions. (a) An insurer shall provide a policyholder with an annual statement that summarizes the coverages and exclusions under the policy issued by the insurer.

    (b) The insurer's statement shall be clear and specific.

    (c) The insurer's statement shall state whether the coverages under the policy provide for replacement cost, actual cash value, or other method of loss payment for covered structures and contents.

    (d) The insurer's statement shall include a disclosure that states:

    (1) the policyholder should read the policy for complete information on coverages and exclusions;

    (2) the policyholder should refer to the declarations page for a listing of coverages purchased;

    (3) the policyholder should communicate with the insurance producer or the insurer for any additional information regarding the scope of coverages in the policy;

    (4) the statement does not include additional optional coverage purchased by the policyholder, if any;

    (5) the statement is not part of the policy or contract of insurance and does not create a private right of action;

    (6) all rights, duties, and obligations are controlled by the policy and contract of insurance; and

    (7) the standard homeowner's insurance policy does not cover losses from flood.

    Subd. 2. Status of statement. The statement under subdivision 1:

    (1) is not part of the policy or contract of insurance; and

    (2) does not create a private right of action.

    Subd. 3. Rules. The commissioner may adopt rules to implement the provisions of this section.

    Sec. 3. [65A.304] STATEMENT OF OPTIONAL COVERAGE AVAILABLE.

    Subdivision 1. Generally. (a) An insurer that sells or negotiates homeowner's insurance in the state shall provide an applicant, at the time of application for homeowner's insurance, with a written statement that lists all additional optional coverage available from the insurer to the applicant.

    (b) If an application is made by telephone, the insurer is deemed to be in compliance with this section if, within seven calendar days after the date of application, the insurer sends by certificate of mailing the statement to the applicant or insured.

    (c) If an application is made using the Internet, the insurer is deemed to be in compliance with this section if the insurer provides the statement to the applicant prior to submission of the application.

    Subd. 2. Contents. The statement must:

    (1) be on a separate form;

    (2) be titled, in at least 12-point type, "Additional Optional Coverage Not Included in the Standard Homeowner's Insurance Policy";

    (3) contain the following disclosure in at least ten-point type: "Your standard homeowner's insurance policy does not cover all risks. You may need to obtain additional insurance to cover loss or damage to your home, property, and the contents of your home or to cover risks related to business or personal activities on your property. This statement provides a list of the types of additional insurance coverage that are available. Contact your insurance company, insurance producer, or insurance agent to discuss these additional coverages."; and

    (4) contain a list of additional optional coverage.

    Subd. 3. Effect of notice. A statement provided under this section does not create a private right of action.

    Sec. 4. Minnesota Statutes 2012, section 72A.201 , subdivision 4, is amended to read:

    Subd. 4. Standards for claim filing and handling. The following acts by an insurer, an adjuster, a self-insured, or a self-insurance administrator constitute unfair settlement practices:

    (1) except for claims made under a health insurance policy, after receiving notification of claim from an insured or a claimant, failing to acknowledge receipt of the notification of the claim within ten business days, and failing to promptly provide all necessary claim forms and instructions to process the claim, unless the claim is settled within ten business days. The acknowledgment must include the telephone number of the company representative who can assist the insured or the claimant in providing information and assistance that is reasonable so that the insured or claimant can comply with the policy conditions and the insurer's reasonable requirements. If an acknowledgment is made by means other than writing, an appropriate notation of the acknowledgment must be made in the claim file of the insurer and dated. An appropriate notation must include at least the following information where the acknowledgment is by telephone or oral contact:

    (i) the telephone number called, if any;

    (ii) the name of the person making the telephone call or oral contact;

    (iii) the name of the person who actually received the telephone call or oral contact;

    (iv) the time of the telephone call or oral contact; and

    (v) the date of the telephone call or oral contact;

    (2) failing to reply, within ten business days of receipt, to all other communications about a claim from an insured or a claimant that reasonably indicate a response is requested or needed;

    (3)(i) unless provided otherwise by clause (ii) or (iii), other law, or in the policy, failing to complete its investigation and inform the insured or claimant of acceptance or denial of a claim within 30 business days after receipt of notification of claim unless the investigation cannot be reasonably completed within that time. In the event that the investigation cannot reasonably be completed within that time, the insurer shall notify the insured or claimant within the time period of the reasons why the investigation is not complete and the expected date the investigation will be complete. For claims made under a health policy the notification of claim must be in writing;

    (ii) for claims submitted under a health policy, the insurer must comply with all of the requirements of section 62Q.75;

    (iii) for claims submitted under a health policy that are accepted, the insurer must notify the insured or claimant no less than semiannually of the disposition of claims of the insured or claimant. Notwithstanding the requirements of section 72A.20, subdivision 37, this notification requirement is satisfied if the information related to the acceptance of the claim is made accessible to the insured or claimant on a secured Web site maintained by the insurer. For purposes of this clause, acceptance of a claim means that there is no additional financial liability for the insured or claimant, either because there is a flat co-payment amount specified in the health plan or because there is no co-payment, deductible, or coinsurance owed;

    (4) where evidence of suspected fraud is present, the requirement to disclose their reasons for failure to complete the investigation within the time period set forth in clause (3) need not be specific. The insurer must make this evidence available to the Department of Commerce if requested;

    (5) failing to notify an insured who has made a notification of claim of all available benefits or coverages which the insured may be eligible to receive under the terms of a policy and of the documentation which the insured must supply in order to ascertain eligibility;

    (6) unless otherwise provided by law or in the policy, requiring an insured to give written notice of loss or proof of loss within a specified time, and thereafter seeking to relieve the insurer of its obligations if the time limit is not complied with, unless the failure to comply with the time limit prejudices the insurer's rights and then only if the insurer gave prior notice to the insured of the potential prejudice;

    (7) advising an insured or a claimant not to obtain the services of an attorney or an adjuster, or representing that payment will be delayed if an attorney or an adjuster is retained by the insured or the claimant;

    (8) failing to advise in writing an insured or claimant who has filed a notification of claim known to be unresolved, and who has not retained an attorney, of the expiration of a statute of limitations at least 60 days prior to that expiration. For the purposes of this clause, any claim on which the insurer has received no communication from the insured or claimant for a period of two years preceding the expiration of the applicable statute of limitations shall not be considered to be known to be unresolved and notice need not be sent pursuant to this clause;

    (9) demanding information which would not affect the settlement of the claim;

    (10) unless expressly permitted by law or the policy, refusing to settle a claim of an insured on the basis that the responsibility should be assumed by others;

    (11) failing, within 60 business days after receipt of a properly executed proof of loss, to advise the insured of the acceptance or denial of the claim by the insurer. No insurer shall deny a claim on the grounds of a specific policy provision, condition, or exclusion unless reference to the provision, condition, or exclusion is included in the denial. The denial must be given to the insured in writing with a copy filed in the claim file;

    (12) denying or reducing a claim on the basis of an application which was altered or falsified by the agent or insurer without the knowledge of the insured;

    (13) failing to notify the insured of the existence of the additional living expense coverage when an insured under a homeowners policy sustains a loss by reason of a covered occurrence and the damage to the dwelling is such that it is not habitable;

    (14) failing to inform an insured or a claimant that the insurer will pay for an estimate of repair if the insurer requested the estimate and the insured or claimant had previously submitted two estimates of repair. ;

    (15) refusing to discuss a claim with the contractor with whom the claimant has contracted to provide goods and services in connection with the loss.

    Sec. 5. Minnesota Statutes 2012, section 325E.66 , is amended by adding a subdivision to read:

    Subd. 1a. Payments to residential contractor. (a) The insurer shall make payment by check or draft directly to the residential contractor providing the covered home repair or improvement services or, with the consent of the residential contractor, by an electronic funds transfer to the residential contractor, if the following conditions are met and if the insured has actual knowledge of them:

    (1) the property owner of record has signed or transmitted to the insurer a written statement of all of the following:

    (i) the work completed under the contract is satisfactory;

    (ii) the insurer, upon direct payment to the residential contractor, is released from liability; and

    (iii) the written statement was not signed by the owner until all work under the contract was completed;

    (2) the property owner of record, the named insured, and any loss payee have consented in writing to the direct payment and release from liability; and

    (3) the completed work has been approved by the appropriate public official as conforming to existing building, electrical, and construction codes.

    (b) If the insurer has authorized the work and its liability is not in dispute, the direct payment provided for in paragraph (a) must be made to the residential contractor performing the work no later than 30 days after the insurer has actual knowledge that the conditions in paragraph (a) have been satisfied.

    (c) For purposes of this subdivision, "loss payee" includes any mortgagee of the insured real property.

    Sec. 6. Minnesota Statutes 2012, section 325E.66 , subdivision 2, is amended to read:

    Subd. 2. Private remedy. (a) If a residential contractor violates subdivision 1, the insured or the applicable insurer may bring an action against the residential contractor in a court of competent jurisdiction for damages sustained by the insured or insurer as a consequence of the residential contractor's violation.

    (b) If an insurer violates subdivision 1a, the residential contractor may bring an action against the insurer in a court of competent jurisdiction for damages sustained as a result of the insurer's violation.

  • State Bill: MN S 722

    Added: Green underlined text
    Deleted: Dark red text with a strikethrough
    Vetoed: Red text
     Links to affected code section
    2013 MN S 722
    Author: Pederson
    Version: Introduced
    Version Date: 02/22/2013

    S.F. No. 722, as introduced - 88th Legislative Session (2013-2014) Posted on Feb 22, 2013

    A bill for an act

    relating to commerce; regulating homeowner's insurance coverages and residential contracting claims; regulating claims practices; amending Minnesota Statutes 2012, sections 65A.27 , subdivision 1; 72A.201 , subdivision 4; 325E.66 , subdivision 2, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 65A.

    BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

    Section 1. Minnesota Statutes 2012, section 65A.27 , subdivision 1, is amended to read:

    Subdivision 1. Scope. For purposes of sections 65A.27 to 65A.302 65A.304, the following terms have the meanings given.

    Sec. 2. [65A.303] ANNUAL SUMMARY STATEMENTS.

    Subdivision 1. Summary statement of coverages and exclusions. (a) An insurer shall provide a policyholder with an annual statement that summarizes the coverages and exclusions under the policy issued by the insurer.

    (b) The insurer's statement shall be clear and specific.

    (c) The insurer's statement shall state whether the coverages under the policy provide for replacement cost, actual cash value, or other method of loss payment for covered structures and contents.

    (d) The insurer's statement shall include a disclosure that states:

    (1) the policyholder should read the policy for complete information on coverages and exclusions;

    (2) the policyholder should refer to the declarations page for a listing of coverages purchased;

    (3) the policyholder should communicate with the insurance producer or the insurer for any additional information regarding the scope of coverages in the policy;

    (4) the statement does not include additional optional coverage purchased by the policyholder, if any;

    (5) the statement is not part of the policy or contract of insurance and does not create a private right of action;

    (6) all rights, duties, and obligations are controlled by the policy and contract of insurance; and

    (7) the standard homeowner's insurance policy does not cover losses from flood.

    Subd. 2. Status of statement. The statement under subdivision 1:

    (1) is not part of the policy or contract of insurance; and

    (2) does not create a private right of action.

    Subd. 3. Rules. The commissioner may adopt rules to implement the provisions of this section.

    Sec. 3. [65A.304] STATEMENT OF OPTIONAL COVERAGE AVAILABLE.

    Subdivision 1. Generally. (a) An insurer that sells or negotiates homeowner's insurance in the state shall provide an applicant, at the time of application for homeowner's insurance, with a written statement that lists all additional optional coverage available from the insurer to the applicant.

    (b) If an application is made by telephone, the insurer is deemed to be in compliance with this section if, within seven calendar days after the date of application, the insurer sends by certificate of mailing the statement to the applicant or insured.

    (c) If an application is made using the Internet, the insurer is deemed to be in compliance with this section if the insurer provides the statement to the applicant prior to submission of the application.

    Subd. 2. Contents. The statement must:

    (1) be on a separate form;

    (2) be titled, in at least 12-point type, "Additional Optional Coverage Not Included in the Standard Homeowner's Insurance Policy";

    (3) contain the following disclosure in at least ten-point type: "Your standard homeowner's insurance policy does not cover all risks. You may need to obtain additional insurance to cover loss or damage to your home, property, and the contents of your home or to cover risks related to business or personal activities on your property. This statement provides a list of the types of additional insurance coverage that are available. Contact your insurance company, insurance producer, or insurance agent to discuss these additional coverages."; and

    (4) contain a list of additional optional coverage.

    Subd. 3. Effect of notice. A statement provided under this section does not create a private right of action.

    Sec. 4. Minnesota Statutes 2012, section 72A.201 , subdivision 4, is amended to read:

    Subd. 4. Standards for claim filing and handling. The following acts by an insurer, an adjuster, a self-insured, or a self-insurance administrator constitute unfair settlement practices:

    (1) except for claims made under a health insurance policy, after receiving notification of claim from an insured or a claimant, failing to acknowledge receipt of the notification of the claim within ten business days, and failing to promptly provide all necessary claim forms and instructions to process the claim, unless the claim is settled within ten business days. The acknowledgment must include the telephone number of the company representative who can assist the insured or the claimant in providing information and assistance that is reasonable so that the insured or claimant can comply with the policy conditions and the insurer's reasonable requirements. If an acknowledgment is made by means other than writing, an appropriate notation of the acknowledgment must be made in the claim file of the insurer and dated. An appropriate notation must include at least the following information where the acknowledgment is by telephone or oral contact:

    (i) the telephone number called, if any;

    (ii) the name of the person making the telephone call or oral contact;

    (iii) the name of the person who actually received the telephone call or oral contact;

    (iv) the time of the telephone call or oral contact; and

    (v) the date of the telephone call or oral contact;

    (2) failing to reply, within ten business days of receipt, to all other communications about a claim from an insured or a claimant that reasonably indicate a response is requested or needed;

    (3)(i) unless provided otherwise by clause (ii) or (iii), other law, or in the policy, failing to complete its investigation and inform the insured or claimant of acceptance or denial of a claim within 30 business days after receipt of notification of claim unless the investigation cannot be reasonably completed within that time. In the event that the investigation cannot reasonably be completed within that time, the insurer shall notify the insured or claimant within the time period of the reasons why the investigation is not complete and the expected date the investigation will be complete. For claims made under a health policy the notification of claim must be in writing;

    (ii) for claims submitted under a health policy, the insurer must comply with all of the requirements of section 62Q.75;

    (iii) for claims submitted under a health policy that are accepted, the insurer must notify the insured or claimant no less than semiannually of the disposition of claims of the insured or claimant. Notwithstanding the requirements of section 72A.20, subdivision 37, this notification requirement is satisfied if the information related to the acceptance of the claim is made accessible to the insured or claimant on a secured Web site maintained by the insurer. For purposes of this clause, acceptance of a claim means that there is no additional financial liability for the insured or claimant, either because there is a flat co-payment amount specified in the health plan or because there is no co-payment, deductible, or coinsurance owed;

    (4) where evidence of suspected fraud is present, the requirement to disclose their reasons for failure to complete the investigation within the time period set forth in clause (3) need not be specific. The insurer must make this evidence available to the Department of Commerce if requested;

    (5) failing to notify an insured who has made a notification of claim of all available benefits or coverages which the insured may be eligible to receive under the terms of a policy and of the documentation which the insured must supply in order to ascertain eligibility;

    (6) unless otherwise provided by law or in the policy, requiring an insured to give written notice of loss or proof of loss within a specified time, and thereafter seeking to relieve the insurer of its obligations if the time limit is not complied with, unless the failure to comply with the time limit prejudices the insurer's rights and then only if the insurer gave prior notice to the insured of the potential prejudice;

    (7) advising an insured or a claimant not to obtain the services of an attorney or an adjuster, or representing that payment will be delayed if an attorney or an adjuster is retained by the insured or the claimant;

    (8) failing to advise in writing an insured or claimant who has filed a notification of claim known to be unresolved, and who has not retained an attorney, of the expiration of a statute of limitations at least 60 days prior to that expiration. For the purposes of this clause, any claim on which the insurer has received no communication from the insured or claimant for a period of two years preceding the expiration of the applicable statute of limitations shall not be considered to be known to be unresolved and notice need not be sent pursuant to this clause;

    (9) demanding information which would not affect the settlement of the claim;

    (10) unless expressly permitted by law or the policy, refusing to settle a claim of an insured on the basis that the responsibility should be assumed by others;

    (11) failing, within 60 business days after receipt of a properly executed proof of loss, to advise the insured of the acceptance or denial of the claim by the insurer. No insurer shall deny a claim on the grounds of a specific policy provision, condition, or exclusion unless reference to the provision, condition, or exclusion is included in the denial. The denial must be given to the insured in writing with a copy filed in the claim file;

    (12) denying or reducing a claim on the basis of an application which was altered or falsified by the agent or insurer without the knowledge of the insured;

    (13) failing to notify the insured of the existence of the additional living expense coverage when an insured under a homeowners policy sustains a loss by reason of a covered occurrence and the damage to the dwelling is such that it is not habitable;

    (14) failing to inform an insured or a claimant that the insurer will pay for an estimate of repair if the insurer requested the estimate and the insured or claimant had previously submitted two estimates of repair. ;

    (15) refusing to discuss a claim with the contractor with whom the claimant has contracted to provide goods and services in connection with the loss.

    Sec. 5. Minnesota Statutes 2012, section 325E.66 , is amended by adding a subdivision to read:

    Subd. 1a. Payments to residential contractor. (a) The insurer shall make payment by check or draft directly to the residential contractor providing the covered home repair or improvement services or, with the consent of the residential contractor, by an electronic funds transfer to the residential contractor, if the following conditions are met and if the insured has actual knowledge of them:

    (1) the property owner of record has signed or transmitted to the insurer a written statement of all of the following:

    (i) the work completed under the contract is satisfactory;

    (ii) the insurer, upon direct payment to the residential contractor, is released from liability; and

    (iii) the written statement was not signed by the owner until all work under the contract was completed;

    (2) the property owner of record, the named insured, and any loss payee have consented in writing to the direct payment and release from liability; and

    (3) the completed work has been approved by the appropriate public official as conforming to existing building, electrical, and construction codes.

    (b) If the insurer has authorized the work and its liability is not in dispute, the direct payment provided for in paragraph (a) must be made to the residential contractor performing the work no later than 30 days after the insurer has actual knowledge that the conditions in paragraph (a) have been satisfied.

    (c) For purposes of this subdivision, "loss payee" includes any mortgagee of the insured real property.

    Sec. 6. Minnesota Statutes 2012, section 325E.66 , subdivision 2, is amended to read:

    Subd. 2. Private remedy. (a) If a residential contractor violates subdivision 1, the insured or the applicable insurer may bring an action against the residential contractor in a court of competent jurisdiction for damages sustained by the insured or insurer as a consequence of the residential contractor's violation.

    (b) If an insurer violates subdivision 1a, the residential contractor may bring an action against the insurer in a court of competent jurisdiction for damages sustained as a result of the insurer's violation.

  • State Bill: MO S 610

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    Deleted: Dark red text with a strikethrough
    Vetoed: Red text
     Links to affected code section
    2014 MO S 610
    Author: Rupp
    Version: Introduced
    Version Date: 01/08/2014

    SECOND REGULAR SESSION

    SENATE BILL NO. 610

    97TH GENERAL ASSEMBLY

    INTRODUCED BY SENATOR RUPP.

    Pre-filed December 6, 2013, and ordered printed.

    AN ACT

    To repeal section 407.725, RSMo, and to enact in lieu thereof one new section relating to commercial exterior contractors.

    Be it enacted by the General Assembly of the State of Missouri, as follows:

    Section A. Section 407.725 , RSMo, is repealed and one new section enacted in lieu thereof, to be known as section 407.725 , to read as follows:

    407.725. 1. As used in this section, the following terms mean:

    (1) "Residential Contractor", a person or entity in the business of contracting or offering to contract with an owner or possessor of residential or commercial real estate to repair or replace roof systems or perform any other exterior repair, replacement, construction, or reconstruction work on any residential or commercial structure situated upon such real estate;

    (2) "Residential real estate", a new or existing building constructed for habitation by one to four families, including detached garages;

    (3) "Roof system", includes roof coverings, roof sheathing, roof weatherproofing, and insulation.

    2. A residential contractor shall not advertise or promise to pay or rebate all or any portion of any insurance deductible as an inducement to the sale of goods or services. As used in this section, a promise to pay or rebate includes granting any allowance or offering any discount against the fees to be charged or paying the insured or any person directly or indirectly associated with the property any form of compensation, gift, prize, bonus, coupon, credit, referral fee, or other item of monetary value for any reason.

    3. A person who has entered into a written contract with a residential contractor to provide goods or services to be paid under a property and casualty insurance policy may cancel the contract prior to midnight on the fifth business day after the insured party has received written notice from the insurer that all or any part of the claim or contract is not a covered loss under the insurance policy. Cancellation shall be evidenced by the insured party giving written notice of cancellation to the residential contractor at the address stated in the contract. Notice of cancellation, if given by mail, shall be effective upon deposit into the United States mail, postage prepaid and properly addressed to the residential contractor. Notice of cancellation need not take a particular form and shall be sufficient if it indicates, by any form of written expression, the intention of the insured party not to be bound by the contract.

    4. Before entering a contract referred to in subsection 3 of this section, the residential contractor shall:

    (1) Furnish the insured party a statement in boldface type of a minimum size of ten points, in substantially the following form:

    You may cancel this contract at any time before midnight on the fifth business day after you have received written notification from your insurer that all or any part of the claim or contract is not a covered loss under the insurance policy. See attached notice of cancellation form for an explanation of this right.; and

    (2) Furnish each insured a fully completed form in duplicate, captioned "NOTICE OF CANCELLATION", which shall be attached to the contract but easily detachable, and which shall contain, in boldface type of a minimum size of ten points, the following statement:

    NOTICE OF CANCELLATION

    If you are notified by your insurer that all or any part of the claim or contract is not a covered loss under the insurance policy, you may cancel the contract by mailing or delivering a signed and dated copy of this cancellation notice or any other written notice to (name of contractor) at (address of contractor's place of business) at any time prior to midnight on the fifth business day after you have received such notice from your insurer. If you cancel, any payments made by you under the contract, except for certain emergency work already performed by the contractor, will be returned to you within ten business days following receipt by the contractor of your cancellation notice.

    I HEREBY CANCEL THIS TRANSACTION

    _________________________________

    (date)

    _________________________________

    (insured's signature).

    5. Within ten days after a contract referred to in subsection 3 of this section has been cancelled, the contractor shall tender to the owner or possessor of residential real estate any payments, partial payments, or deposits made and any note or other evidence of indebtedness. If, however, the contractor has performed any emergency services, acknowledged by the insured in writing to be necessary to prevent damage to the premises, the contractor shall be entitled to the reasonable value of such services. Any provision in a contract referred to in subsection 3 of this section that requires the payment of any fee for anything except emergency services shall not be enforceable against the owner or possessor of residential real estate who has cancelled a contract pursuant to this section.

    6. A residential contractor shall not represent or negotiate, or offer or advertise to represent or negotiate, on behalf of an owner or possessor of residential real estate on 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.

    7. Any violation of this section by a residential contractor shall be considered an unfair practice pursuant to the Missouri merchandising practices act as codified in this chapter.

  • State Bill: MS H 545

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    Deleted: Dark red text with a strikethrough
    Vetoed: Red text
     Links to affected code section
    2014 MS H 545
    Author: Chism G
    Version: Introduced
    Version Date: 01/22/2014

    MISSISSIPPI LEGISLATURE

    2014 Regular Session

    To: Insurance; Judiciary A

    By: Representative Chism

    House Bill 545

    AN ACT TO CREATE THE "INSURANCE BENEFITS ROOFING REPAIR CONSUMER PROTECTION ACT"; TO DEFINE TERMS USED IN THE ACT; TO REQUIRE A RESIDENTIAL ROOFING CONTRACTOR TO FURNISH TO AN INSURED A NOTICE OF CANCELLATION BEFORE SIGNING AN INSURANCE BENEFITS RESIDENTIAL ROOF SYSTEM REPAIR CONTRACT; TO PROVIDE THAT A PERSON WHO HAS ENTERED INTO AN INSURANCE BENEFITS RESIDENTIAL ROOF SYSTEM REPAIR CONTRACT MAY CANCEL THE CONTRACT WITHIN A CERTAIN NUMBER OF DAYS OF RECEIVING NOTICE FROM THE INSURER THAT HIS CLAIM IS NOT A COVERED LOSS UNDER THE POLICY; TO PROVIDE CIVIL AND CRIMINAL PENALTIES FOR VIOLATIONS OF THIS ACT; AND FOR RELATED PURPOSES.

    BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

    SECTION 1. Title. This act shall be known as the "Insurance Benefits Roofing Repair Consumer Protection Act."

    SECTION 2. Applicability. This act applies to a residential roofing repair contract under which a person has contracted with a residential roofing contractor to provide goods or services expected to be paid, in whole or in part, from the benefits of a property and casualty insurance policy.

    SECTION 3. Definitions. As used in this act:

    (a) "Emergency services" means services performed with the express permission of the insured and that are immediately necessary for:

    (i) The preservation of the residential real estate; or

    (ii) The health of the insured, owner, or possessor.

    "Emergency services" does not include inspection of the residential roof system or an estimation of the repair costs.

    (b) "Insured" means an insured whose name appears on the face of the property and casualty insurance policy that provides coverage for the residential roof system to be repaired.

    (c) "Residential roofing contractor" means a person or entity contracting or offering to contract with an insured, owner, or possessor of a residential roof system to repair or replace a roof system on residential real estate, or any portion thereof, where all or part of the cost is expected to be paid as a benefit of a property and casualty insurance policy.

    (d) "Residential" means a new or existing dwelling constructed for habitation by one (1) to four (4) families, including a detached garage.

    (e) "Insurance benefits residential roof system repair contract" means a written contract with an insured to repair a roof system, or any part thereof, on residential real estate, or provide goods and services in connection with such repair, that is to be paid, in whole or in part, under a property and casualty insurance policy.

    (f) "Roof system" means roof coverings, roof sheathing, roof weatherproofing, and insulation.

    SECTION 4. Notice of cancellation. Before signing an insurance benefits residential roof system repair contract with an insured, a residential roofing contractor shall furnish to the insured:

    (a) The following statement in at least 10-point boldface type that is attached to the contract:

    "You may cancel this insurance benefits residential roof system repair contract at any time within three (3) business days after you have received written notice from your insurance company that all or any part of your claim, or all or part of the services and goods to be provided by this contract, is not a covered loss under your insurance policy. A notice of cancellation form is provided to you with this contract. To cancel this contract under these circumstances, sign and date, and then mail or deliver the attached Notice of Cancellation, or another similar written notice of cancellation, to the contractor within three (3) business days after you have received such written notice from your insurance company. If you cancel, any payments made under this residential roofing system repair contract, except for emergency services already performed by the contractor, will be returned to you within ten (10) business days following receipt by the contractor of your cancellation notice."; and

    (b) Duplicate copies of a completed form captioned "NOTICE OF CANCELLATION" that is attached to the contract, is easily detachable, and contains the following in at least 10-point boldface type:

    "NOTICE OF CANCELLATION

    (Name and address of contractor - to be entered by Contractor)

    (Date of contract - to be entered by Contractor)

    (Address of Residential Real Estate to be repaired - to be entered by Contractor)

    I have been notified by my insurance company that all or any part of my claim, or the services and goods to be provided in the residential roofing system repair contract, is not a covered loss under the insurance policy.

    I HEREBY CANCEL THIS TRANSACTION

    Please return my prior payments within 10 days.

    _______________________ _______________________

    INSURED'S SIGNATURE DATE"

    SECTION 5. Commencement of work -- cancellation. (1) A residential roofing contractor in an insurance benefits residential roof system repair contract with an insured shall not commence work until the insured's right to cancel under subsection (2) of this section has expired.

    (2) A person who has entered into an insurance benefits residential roof system repair contract may cancel the residential roof system repair contract within three (3) business days after the insured has received written notice from the insurer in response to an insurance claim filed that all or any part of the claim or residential roof system repair contract is not a covered loss under the insurance policy.

    (3) (a) The insured cancels the insurance benefits residential roof system repair contract by giving written notice of cancellation to the residential roofing contractor in person or by mailing it to the address stated in the residential roof system repair contract.

    (b) If the notice of cancellation is given by mail, it is effective upon deposit of the notice in the United States mail, postage prepaid, and properly addressed to the residential roofing contractor.

    (c) The notice of cancellation is not required to be in a particular form and is sufficient if it expresses in writing an intention of the insured not to be bound by the insurance benefits residential roof system repair contract.

    (4) (a) Within ten (10) days after cancellation of an insurance benefits residential roof system repair contract, the residential roofing contractor shall tender to the insured any payments, partial payments, or deposits made and any note or other evidence of indebtedness.

    (b) If the residential roofing contractor has performed any emergency services, the residential roofing contractor is entitled to the reasonable value of such emergency services.

    (5) Any provision in an insurance benefits residential roof system repair contract that requires the payment of a fee for anything except emergency services is not enforceable against the insured that has cancelled an insurance benefits residential roof system repair contract under this section.

    SECTION 6. Violations. (1) Any residential roofing contractor in violation of this act shall be subject to the civil and criminal penalties and remedies under Sections 75-24-19, 75-24-20 and 75-24-23, and may be liable under a private right of action of the consumer.

    (2) A violation of this act by a residential contractor is an unfair and deceptive act or practice as defined by the Mississippi Consumer Protection Law, Section 75-24-1 et seq.

    (3) This act does not prohibit an insured that is harmed by a deceptive trade practice from commencing a civil action against a residential roofing contractor.

    SECTION 7. This act shall take effect and be in force from and after July 1, 2014.

  • State Bill: NC H 880

    Added: Green underlined text
    Deleted: Dark red text with a strikethrough
    Vetoed: Red text
     Links to affected code section
    2013 NC H 880
    Author: Brawley C
    Version: Substituted
    Version Date: 07/11/2013

    GENERAL ASSEMBLY OF NORTH CAROLINA

    SESSION 2013

    H 2

    HOUSE BILL 880

    Committee Substitute Favorable 7/11/13

    (Public)

    Short Title: Roofing Contractors/Consumer Protection.

    Sponsors:

    Referred to:

    April 15, 2013

    A BILL TO BE ENTITLED

    AN ACT TO LICENSE ROOFING CONTRACTORS AND TO PROVIDE CONSUMER PROTECTIONS RELATED TO ROOFING CONTRACTORS.

    The General Assembly of North Carolina enacts:

    SECTION 1. Chapter 87 of the General Statutes is amended by adding the following new Article to read:

    "Article 1B.

    "Roofing Contractors.

    "Section 87-15.20. Short title.

    This Article shall be known and may be cited as the "North Carolina Roofing Contractor Licensure Act."

    "Section 87-15.21. Definitions.

    The following definitions apply in this Article:

    (1) Board. – The State Licensing Board for General Contractors or any person designated by the Board to administer the provisions of this Article.

    (2) Nonresident roofing contractor. – A roofing contractor who (i) has not established and maintained a place of business as a roofing contractor in this State within the preceding year, (ii) claims residency in another state, and (iii) has not submitted an income tax return as a resident of this State within the preceding year.

    (3) Public contract. – A contract with the State of North Carolina, its political subdivisions, or any board, commission, agency, or department thereof or with any board of county commissioners or with any city council, school board, or with any State or municipal agency or with any other public board, body, commission, or agency authorized to award contracts for the construction or reconstruction of public work. The term includes subcontracts undertaken to perform works covered by the original contract or any part thereof.

    (4) Roofing contractor. – A person, including a subcontractor or nonresident roofing contractor, engaged in the business of commercial or residential roofing services for a fee or who offers to engage in or solicits roofing-related services, including construction, installation, renovation, repair, maintenance, alteration, or waterproofing. The term shall not include a person engaged in the demolition of a structure or the cleanup of construction waste and debris that contains roofing material nor a person working under the direct supervision of a roofing contractor who is hired either as an employee, day laborer, or contract laborer.

    "Section 87-15.22. Administration of Article.

    (a) The State Licensing Board for General Contractors is authorized to administer and enforce the provisions of this Article. In administering this Article, the Board shall have the following powers and duties:

    (1) To adopt, amend, or repeal rules to carry out the provisions of this Article.

    (2) To determine the qualifications and fitness of applicants for licensure and license renewal.

    (3) To issue, renew, deny, restrict, suspend, or revoke licenses.

    (4) To reprimand or otherwise discipline licensees under this Article.

    (5) To receive and investigate complaints from members of the public.

    (6) To conduct investigations to determine whether violations of this Article exist or constitute grounds for disciplinary action against licensees under this Article.

    (7) To conduct administrative hearings in accordance with Chapter 150B of the General Statutes.

    (8) To seek injunctive relief through any court of competent jurisdiction for violations of this Article.

    (9) To collect fees required by G.S. 87-15.27 and other monies permitted by law to be paid to the Board.

    (10) To require licensees to file and maintain a certificate of liability insurance.

    (11) To employ personnel and procure any supplies and equipment as may be necessary to carry out and implement the provisions of this Article, subject to budgetary limitations and funding.

    "Section 87-15.23. Licensure required; violations; unfair trade practices.

    (a) No person shall engage in business as or act in the capacity of a roofing contractor within this State or bring or maintain any claim, action, suit, or proceeding in any court of this State related to the person's business or capacity as a roofing contractor unless the person is licensed as a roofing contractor under this Article.

    (b) A person who fails to obtain a valid license before engaging in business as a roofing contractor, a person who acts as a roofing contractor while his or her license is suspended or revoked, or a person who violates any provision of this Article or rules adopted by the Board shall be guilty of a Class 2 misdemeanor, punishable upon conviction by a fine not to exceed five hundred dollars ($500.00) for each violation.

    (c) During any period in which a roofing contractor's license is suspended or revoked, that roofing contractor shall not seek to be licensed as a roofing contractor under any other name. For purposes of this subsection, the suspension or revocation of the roofing contractor license of a corporate or other business entity shall be deemed to be a suspension or revocation of the roofing contractor license of every owner, employee, and affiliate of the entity whose license is suspended or revoked.

    (d) Failure to comply with the provisions of this Article shall constitute a violation of G.S. 75-1.1.

    "Section 87-15.24. Exemptions.

    (a) The provisions of this Article shall not apply to:

    (1) An actual owner of residential or farm property who physically performs, or has employees who perform, roofing services, including construction, installation, renovation, repair, maintenance, alteration, waterproofing, or removal of materials or structures on his or her own dwelling or another structure located on the residential or farm property owned by the person without the assistance of a roofing contractor licensed under this Article.

    (2) Any authorized employee or representative of the United States government, this State, or any county, municipality, or other political subdivision of this State performing roofing services upon government property.

    (3) Any person who furnishes any fabricated or finished product, material, or article of merchandise that is not incorporated into or attached to real property by the person so as to become affixed to the property.

    (4) A licensed North Carolina general contractor.

    (b) Any administrative or governing body with authority to enter into public contracts shall require any person performing roofing services to be licensed under this Article for the purpose of submitting or entering into any bid or contract.

    "Section 87-15.25. Requirements for licensure; issuance.

    (a) Upon application to the Board and the payment of the required fees, an applicant may be licensed under this Article as a roofing contractor if the applicant submits evidence that demonstrates his or her qualifications as prescribed in rules adopted by the Board and meets all of the following qualifications:

    (1) Is at least 18 years of age.

    (2) Is of good moral character as determined by the Board.

    (3) Submits to the Board a sworn statement of the applicant's experience and qualifications as a roofing contractor.

    (4) Files with the Board and maintains a certificate of liability insurance executed by a company authorized to do business in this State. The liability insurance shall be in the amount of five hundred thousand dollars ($500,000). Any insurance company issuing a liability policy to a roofing contractor pursuant to the provisions of this Article shall be required to notify the Board in the event the liability policy is cancelled for any reason or lapses for nonpayment of premiums. A roofing contractor's license shall be suspended on the date of the policy cancellation or lapse for nonpayment of premiums, and shall not be restored without proof that the roofing contractor is covered under an active insurance policy.

    (5) Submit proof to the Board that the applicant has secured workers' compensation coverage as required by Chapter 97 of the General Statutes.

    (6) Any other information the Board deems appropriate in licensing an applicant as a roofing contractor.

    (b) When the Board determines that an applicant has met all the requirements for license, the Board shall issue a license to the applicant.

    "Section 87-15.26. License renewal; late renewal; reinstatement.

    Every license issued under this Article shall be renewed on or before June 30 of each year. Any person who desires to continue to practice shall apply for license renewal and shall submit the required fees. Upon submitting the renewal application, the licensee shall include a copy of the certificate of liability insurance, unless the Board has a current valid certificate of insurance on file, and proof of workers' compensation coverage, unless exempt under Chapter 97 of the General Statutes. A licensee shall have a 30-day grace period after June 30 to renew the license without a late fee. After the 30-day grace period, a license shall be subject to a late fee. A license not renewed by August 30 shall be suspended for failure to renew, and a license not renewed by January 1 shall be revoked. A license that has been revoked may be renewed if (i) the applicant pays the required reinstatement fee, renewal fee, and late fee; (ii) the Board finds that the applicant has not used the license in a manner inconsistent with the provisions of this Article or performed roofing services after notice of revocation; and (iii) the applicant is otherwise eligible for licensure under the provisions of this Article. When necessary, the Board may require a licensee to demonstrate continued competence as a condition of license renewal.

    "Section 87-15.27. Fees.

    The Board may impose the following fees not to exceed the amounts listed below:

    (1) Application and license fee $125.00

    (2) Renewal fee 75.00

    (3) Late fee 10.00

    (4) Reinstatement fee 75.00

    (5) Name change 25.00

    (6) Certified copy of indexed information 10.00.

    "Section 87-15.28. Change in roofing contractor's name, address, legal service agent, or cease of business; notification of Board.

    No later than 10 days after the date of a change in a roofing contractor's name, address, or legal service agent, or upon a licensed roofing contractor ceasing business as a roofing contractor, the person shall notify the Board of the change on a form provided by the Board. A name, address, or legal service agent change shall be accompanied by a fee pursuant to G.S. 87-15.27. A person may not change his or her name under an active license if the change is associated with a change in the legal status of the business entity other than a change in marital status. Doing business under a new business name or a change in legal status of a business requires issuance of a new license. When a licensed roofing contractor ceases to be active as a roofing contractor, the Board shall suspend the license of the roofing contractor.

    "Section 87-15.29. Business limitations on license.

    The holder of a roofing contractor license is entitled to engage in the roofing business within this State pursuant to the provisions of this Article and subject to the following limitations:

    (1) A roofing contractor's license shall be valid and in good standing at the time of soliciting a project and during subsequent job performance.

    (2) A roofing contractor's license number shall be submitted when applying for any permit issued by the State, or any of its political subdivisions, for commercial or residential roofing services or projects if a permit is required by the authority. The license number shall be written upon each permit issued.

    (3) A person providing services as a roofing contractor on the roofing contractor's own property shall, when applying for any permit required for the project, supply the permit-issuing official with the roofing contractor license number of each roofing subcontractor engaged in roofing services covered by the permit. The permit-issuing official shall enter each roofing contractor license number so supplied on the permit before inspection of the job.

    (4) A licensed roofing contractor shall display the license number issued to it pursuant to this Article upon each business sign, card, correspondence, estimate, contract, and commercial vehicle used by that roofing contractor to solicit or conduct roofing services in this State.

    (5) A roofing contractor license shall not be shared or used by any individual or business entity to whom it was not issued. However, two or more individuals or business entities or a combination thereof acting as a business unit may apply for a single roofing license number to be used by roofing contractors designated in the application acting as agents for the business unit. If, in the discretion of the Board, the application contains sufficient information regarding each member, partner, officer, and agent of the entities constituting the business unit, the Board may issue a single roofing license number for use by each of the roofing contractors designated in the application.

    (6) Upon any change to the name, address, business entity, or legal service agent of a roofing contractor or upon adjudication by a court of competent jurisdiction for a violation of this Article or an act or omission specified in Article 8 of Chapter 75 of the General Statutes, the Board shall be notified in writing. The holder of a roofing contractor license shall provide the Board with the reasons or basis for requesting any changes to name, address, business entity, or legal service agent.

    (7) A roofing contractor shall comply with State laws and local ordinances relating to standards and permits for roofing services and projects and pay any taxes required of the roofing contractor due in this State.

    "Section 87-15.30. Index of licensees.

    (a) The Board shall maintain in the Board's office in Raleigh, North Carolina, open to public inspection during normal office hours, a complete indexed record of all roofing contractor licenses and information maintained on individual roofing contractors. The Board may dispose of an inactive roofing contractor file after three years. Before disposal and upon written request by any person, the Board shall furnish a certified copy of any information maintained on an individual roofing contractor upon payment of a fee for each annual record. Each certified copy of a roofing contractor's record from the Board shall be received in all courts in this State as prima facie evidence of the facts stated therein. The Board may condense or provide an abstract of a roofing contractor's record for public inspection at any time for purposes of data management so long as a complete record is available for public inspection upon written request.

    (b) Upon request of State and local enforcement officials and members of the public, the Board shall verify a roofing contractor's license number. The Board shall establish, through the Internet or other publicly accessible technology, a system through the use of which State and local enforcement officials and members of the public can verify the license status of every licensed roofing contractor. The information provided by the system shall include a notation of the disposition of each complaint filed with the Board against a roofing contractor with an indication of whether the roofing contractor contested the allegations in the complaint, and any criminal conviction for a violation of the provisions of this Article. In addition, the system may include a notation of the disposition of any civil action brought against the roofing contractor in the General Court of Justice, if known, and any criminal conviction other than under this Article for violation of any State or federal law as disclosed by a search of the criminal history of that roofing contractor. Disclosure of any information through use of the roofing contractor license system or information maintained by the Board shall not be deemed to be an endorsement of any roofing contractor or a determination of any facts, qualifications, information, or reputation of any roofing contractor by the Board, by the State, or by any of their agents, officers, employees, or assigns.

    "Section 87-15.31. Disciplinary action; licensees not in good standing.

    (a) The Board may deny, restrict, suspend, or revoke a license or refuse to issue or renew a license if a licensee or applicant:

    (1) Employs the use of fraud, deceit, or misrepresentation in obtaining or attempting to obtain a license or the renewal of a license.

    (2) Practices or attempts to practice roofing services by fraudulent misrepresentation.

    (3) Commits an act of gross malpractice or incompetence as determined by the Board.

    (4) Has been convicted of or pled guilty or no contest to a crime that indicates that the person is unfit or incompetent to practice as a roofing contractor or that indicates that the person has deceived or defrauded the public.

    (5) Has been declared incompetent by a court of competent jurisdiction.

    (6) Has willfully violated any provision in this Article or any rules adopted by the Board pursuant to this Article.

    (7) Has violated any provisions of Article 8 of Chapter 75 of the General Statutes.

    (8) Has had a roofing contractor license revoked or suspended in another state.

    (9) Fails to file the required certificate of liability insurance and workers' compensation coverage or to keep the liability insurance or workers' compensation coverage in force.

    (10) Fails or refuses to pay any taxes due in this State.

    The Board shall notify the applicant in writing if the Board denies a license or license renewal and shall provide the applicant an opportunity to respond to or cure any defect in the written application or renewal for a period of 10 days from the date of the written notification. An applicant aggrieved by a decision of the Board denying a license or renewal may appeal the decision or the applicant may reapply after a 90-day waiting period if the applicant is otherwise eligible under the provisions of this Article. The application and renewal fees shall not be refundable.

    (b) The Board may determine that a licensee is not in good standing on the basis of violations of this Article, violations of Article 8 of Chapter 75 of the General Statutes, or rules adopted by the Board. If the Board determines that a licensee is not in good standing, the Board shall send a written notice to the person when the person's license is not in good standing. Any roofing contractor notified by the Board that the roofing contractor's license is not in good standing shall cease soliciting or entering into new roofing services and projects as of the date of the notification. However, the roofing contractor shall be allowed to complete roofing projects where actual physical work has begun prior to the date of issuance of the notice that the roofing contractor's license is not in good standing with the Board. If the roofing contractor fails to correct the deficiency specified in the notice by evidence satisfactory to the Board within 30 days of the date of the notice or if the roofing contractor solicits or enters into new roofing services contracts or projects while the roofing contractor's license is not in good standing or while the license is suspended or revoked, the roofing contractor shall be in violation of the provisions of this Article. Any license that is not in good standing for a 60-day period shall be suspended on or after 60 days from the date of issuance of the notice to the roofing contractor that the roofing contractor's license is not in good standing. Any license that does not remain in good standing and is suspended for such cause shall be revoked on or after 90 days from the date of issuance of the notice to the roofing contractor that the license is not in good standing. The Board shall notify the roofing contractor upon suspension or revocation of the roofing contractor's license for failure to comply with bringing the license into good standing as required by this Article. The roofing contractor may reinstate the license to good standing by paying the required fees provided in G.S. 87-15.27 and complying with all other requirements for issuance of a license in good standing. Any person aggrieved by the decision of the Board to suspend or revoke a license pursuant to this section may appeal the decision.

    "Section 87-15.32. Complaints.

    (a) The Board shall read each complaint received and shall enter a notation in the individual roofing contractor's record showing the date that the verified complaint was received and the nature of the complaint. The Board shall notify the roofing contractor against whom the complaint is made, in writing, within five days of the receipt of the written complaint. The roofing contractor shall have 10 days from the date notice is received to respond, in writing, to the Board. A copy of the complaint and any response by the roofing contractor shall be referred to the North Carolina Attorney General's Consumer Protection Division. In addition, the Board shall enter a notation in the individual roofing contractor's record showing the date that the roofing contractor's response was received, if any, and whether the response admitted or denied the basis of the complaint.

    (b) After referral of a complaint to the North Carolina Attorney General's Consumer Protection Division, if the roofing contractor is adjudicated by a court to have violated any provision under this Article or under Article 8 of Chapter 75 of the General Statutes, the Board shall suspend, revoke, or deny the roofing contractor's license for such period of time as may be ordered by the court, or in the event that the court orders the license suspended, revoked, or denied without setting the term of the suspension, revocation, or denial, the period shall be six months from the date the order is issued.

    (c) The Board shall not renew, reinstate, or issue a new roofing contractor license to any person subject to any term of denial, suspension, or revocation pursuant to this section until the term has been completed and the person has made application and has paid the required fees as provided for in this Article.

    "Section 87-15.33. Criminal history record checks of applicants for license.

    (a) All applicants for license shall consent to a criminal history record check, and no license shall be issued to an applicant who refuses to consent to a criminal history record check. The Board shall ensure that the State and national criminal history of an applicant is checked. The Board shall be responsible for providing to the North Carolina Department of Justice the fingerprints of the applicant to be checked, a form signed by the applicant consenting to the criminal history record check and the use of fingerprints and other identifying information required by the State or National Repositories, and any additional information required by the Department of Justice. The Board shall keep all information obtained pursuant to this section confidential. For purposes of this section, a "criminal history record check" is a report resulting from a request made by the Board to the North Carolina Department of Justice for a history of conviction of a crime, whether a misdemeanor or felony, that in the discretion of the Board bears on an applicant's fitness for licensure as a roofing contractor.

    (b) The cost of the criminal history record check and the fingerprinting shall be borne by the applicant.

    (c) If an applicant's criminal history record check reveals one or more criminal convictions, the conviction shall not automatically bar licensure. The Board shall consider all of the following factors regarding the conviction:

    (1) The level of seriousness of the crime.

    (2) The date of the crime.

    (3) The age of the person at the time of the conviction.

    (4) The circumstances surrounding the commission of the crime, if known.

    (5) The nexus between the criminal conduct of the person and the job duties of the position to be filled.

    (6) The person's prison, jail, probation, parole, rehabilitation, and employment records since the date the crime was committed.

    If after reviewing the factors, the Board determines that any of the grounds set forth in the subdivisions of G.S. 87-15.31 exist, the Board may deny licensure of the applicant. The Board may disclose to the applicant information contained in the criminal history record check that is relevant to the denial. The Board shall not provide a copy of the criminal history record check to the applicant. The applicant shall have the right to appear before the Board to appeal the Board's decision. However, an appearance before the full Board shall constitute an exhaustion of administrative remedies in accordance with Chapter 150B of the General Statutes.

    (d) The Board, its officers, and employees, acting in good faith and in compliance with this section, shall be immune from civil liability for denying licensure to an applicant based on information provided in the applicant's criminal history record check.

    "Section 87-15.34. Roofing contractor's agent for service of process.

    (a) Except as provided in subsection (c) of this section, by signing and filing an application for a roofing contractor license, a nonresident roofing contractor as defined by this Article appoints the Secretary of State as the applicant's true and lawful agent upon whom may be served all lawful process in any action or proceeding arising out of construction projects performed in this State, and the applicant shall be deemed to have consented to such process served upon the Secretary of State being given the same legal force and effect as if it had been served personally upon the applicant within this State.

    (b) Within 10 days of being served with process as agent for a nonresident roofing contractor pursuant to this section, the Secretary of State shall send notice of such service with the process to the nonresident roofing contractor at its last-known address by registered or certified mail, with return receipt requested, and proof of such mailing shall be attached to the process. The Secretary of State shall keep a record of all process served upon it pursuant to this section, showing the day and hour of service. Before entering a default judgment against a nonresident roofing contractor served with process pursuant to this section in any civil action, the court may order such continuance as may be necessary to afford the nonresident roofing contractor a reasonable opportunity to appear and defend the action.

    (c) This section shall not apply to nonresident roofing contractors that are foreign corporations, foreign limited liability companies, foreign limited liability partnerships, and foreign limited partnerships authorized to do business in this State and having a current licensed agent and licensed address on file in the Office of the Secretary of State.

    "Section 87-15.35. Roofing Contractor License Revolving Fund.

    There is hereby created in the State Treasury a revolving fund for the Board to be designated the "North Carolina Roofing Contractor License Revolving Fund." The fund shall be a continuing fund, shall not be subject to fiscal year limitations, and shall consist of application and renewal fees, late fees, administrative fees, reinstatement fees, and any other monies collected pursuant to this Article. All monies accruing to the credit of the fund are hereby appropriated and may be budgeted and expended by the Board for the purpose of implementing the provisions of this Article. Expenditures from the fund shall be made upon warrants issued by the State Treasurer against claims filed as prescribed by law with the Director of State Finance for approval and payment."

    SECTION 2. Chapter 75 of the General Statutes is amended by adding a new Article to read:

    "Article 8.

    "Roofing Contractors.

    "Section 75-140. Definitions.

    As used in this Article, the terms "nonresident roofing contractor," "public contract," and "roofing contractor" shall have the same definitions as in G.S. 87-15.21.

    "Section 75-141. Construction of Article.

    The requirements of this Article shall be construed to be in addition to, and not in lieu of, any required licensure of persons for certain professions and trades in this State. This Article shall not be deemed to conflict with or affect the authority of any State or local agency, board, or commission whose duty and authority is to administer or enforce any law or ordinance or to establish, administer, or enforce any policy, rule, qualification, or standard for any trade or profession.

    "Section 75-142. Prohibited conduct.

    (a) A roofing contractor shall not do any of the following:

    (1) Advertise or promise or offer to pay or rebate all or any portion of any insurance deductible as an inducement to the sale of any goods or services.

    (2) Offer or provide any upgraded work, material, or product, grant any allowance or offer any discount against the fees to be charged or paying the consumer or any person directly or indirectly associated with the property 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 goods or services.

    (3) Offer or provide anything of value in exchange for permitting the roofing contractor to display a sign or any other type of advertisement at the consumer's premises.

    (4) Seek to obtain a power of attorney from or on behalf of a consumer, offer to report or adjust a claim on behalf of a consumer, represent or negotiate, or offer or advertise to represent or negotiate, obtain or attempt to obtain an assignment of claims rights or assignment of benefits or assignment of proceeds, from or on behalf of either a consumer or of an owner or possessor of residential real estate, on 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.

    (b) An adjuster as defined in G.S. 58-33-10(2) or a public adjuster as defined in G.S. 58-33A-5(7) shall not act as a roofing contractor.

    "Section 75-143. Written contract required; required contents.

    A contract for roofing repairs, including a public contract, shall be in writing, signed by both parties, and shall do all of the following:

    (1) Include a copy of a repair estimate that contains all of the following disclosures:

    a. A precise description and location of all damage claimed on the repair estimate.

    b. An itemized estimate of repair costs, including the cost of raw materials, hourly labor rate, and the number of hours for each item of repair or a unit cost basis.

    c. If damaged areas are not included on the repair estimate, a specification of those areas and any reason for their exclusion from the repair estimate.

    d. A statement of whether or not the property was inspected prior to the preparation of the estimate and a description of the nature of that inspection, including a statement of whether or not the roof was physically accessed.

    e. A statement that the roofing contractor has made no assurances that the claimed loss will be covered by an insurance policy.

    f. A copy of the roofing contractor's license certification issued pursuant to Article 1B of Chapter 87 of the General Statutes.

    (2) Include a disclosure that the consumer is responsible for payment for any work performed if the insurer should deny payment or coverage on any part of the loss.

    (3) Be written in the same language as that principally used in any sales presentation, oral or otherwise.

    (4) Designate as the date of the transaction the date on which the consumer actually signs the agreement or offer.

    (5) Contain the name and physical address of the roofing contractor.

    (6) Contain in immediate proximity to the space reserved for the signature of the buyer in bold-face type of a minimum size of 10 points, a statement in substantially the following form:

    "You may cancel this contract or transaction at any time prior to midnight of the third business day after you have received written notification from your insurer that all or any part of the claim or contract is not a covered loss under the insurance policy. See the attached Notice of Cancellation form for an explanation of this right."

    (7) Be accompanied by a completed form in duplicate that is captioned "Notice of Cancellation," which shall be attached to the contract and easily detachable and which shall contain in 10-point bold-face type the following information and statements in the same language as that used in the contract:

    "Notice of Cancellation

    (enter date of transaction)

    (date)

    If you are notified by your insurer that all or any part of the claim or contract is not a covered loss under the insurance policy, you may cancel the contract by mailing or delivering a signed and dated copy of this cancellation notice or any other written notice to (name of roofing contractor) at (address of roofing contractor's place of business) at any time prior to midnight on the third business day after you have received such written notice from your insurer. If you cancel, any payments made by you under the contract will be returned to you within 10 business days following receipt by the roofing contractor of your cancellation notice, and any security interest arising out of the transaction will be canceled.

    I HEREBY CANCEL THIS TRANSACTION

    ____________

    (date)

    ____________

    (consumer's signature)"

    (8) Include a statement indicating that the roofing contractor shall hold in trust any payment from the property owner until the roofing contractor has delivered roofing materials at the property site or has performed a majority of the roofing work on the property.

    "Section 75-144. Consumer's right to cancel contract if not covered by insurance.

    (a) Right to Cancel. – A consumer who has entered into a written contract with a roofing contractor to provide goods or services to be paid from the proceeds of a property and casualty insurance policy may 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 all or any part of the claim or contract is not a covered loss under the insurance policy.

    (b) Procedure for Cancellation. – Cancellation shall be evidenced by the consumer giving written notice of cancellation to the roofing contractor at the address stated in the contract. Notice of cancellation, if given by mail, is effective upon deposit into the United States mail, postage prepaid, and properly addressed to the roofing contractor. Notice of cancellation need not take a particular form and is sufficient if it indicates, by any form of written expression, the intention of the consumer not to be bound by the contract.

    (c) Refund of Payments to Consumer. – Within 10 days after a contract for roofing repairs has been cancelled, the roofing contractor shall tender to the consumer any payments, partial payments, or deposits made by the consumer and any note or other evidence of indebtedness. If, however, the roofing contractor has performed any emergency services, acknowledged by the consumer in writing to be necessary to prevent damage to the premises, the roofing contractor is entitled to the reasonable value of such services. Any provision in a contract for roofing repairs that in the event of cancellation requires the payment of any fee for anything except emergency services shall constitute a violation of G.S. 75-1.1 and shall not be enforceable against any consumer who has cancelled a contract under this section.

    "Section 75-145. Violations an unfair and deceptive trade practice.

    In addition to the other penalties set forth in this Article, a violation of this Article shall constitute an unfair and deceptive trade practice under G.S. 75-1.1."

    SECTION 3. Article 4 of Chapter 114 of the General Statutes is amended by adding the following new section to read:

    "Section 114-19.33. Criminal history record checks of applicants for licensure as roofing contractors.

    The Department of Justice may provide to the State Licensing Board of General Contractors a criminal history record check from the State and National Repositories of Criminal Histories for applicants for licensure by the Board. Along with a request for criminal history records, the Board shall provide to the Department of Justice the fingerprints of the applicant, a form signed by the applicant consenting to the criminal history record check and use of the fingerprints and other identifying information required by the Repositories, and any additional information required by the Department. The fingerprints shall be forwarded to the State Bureau of Investigation for a search of the State's criminal history record file, and the State Bureau of Investigation shall forward a set of fingerprints to the Federal Bureau of Investigation for a national criminal history record check. The Board shall keep all information obtained pursuant to this section confidential. The Department of Justice may charge a fee to offset the cost incurred by the Department of Justice to conduct a criminal history record check under this section, but the fee shall not exceed the actual cost of locating, editing, researching, and retrieving the information."

    SECTION 4. Section 2 of this act becomes effective October 1, 2013. The remainder of this act is effective when it becomes law.

  • State Bill: NY A 6786

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    Vetoed: Red text
     Links to affected code section
    2013 NY A 6786
    Author: Weprin D
    Version: Amended
    Version Date: 06/14/2013

    STATE OF NEW YORK

    6786--B

    2013-2014 Regular Sessions

    IN ASSEMBLY

    April 18, 2013

    Introduced by M. of A. WEPRIN -read once and referred to the Committee on Insurance -committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -reported and referred to the Committee on Codes -committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee

    AN ACT to amend the insurance law, in relation to public adjusters and payment of property/casualty claims

    The People of the State of New York, represented in Senate and Assembly, do enact as follows:

    Section 1. Section 2108  of the insurance law is amended by adding a new subsection (s) to read as follows:

    (s) (1) Every public adjuster shall have an affirmative duty to act on behalf and in the best interests of the insured when negotiating for or effecting the settlement of an insurance claim for the insured or otherwise acting as a public adjuster.

    (2) (A) No public adjuster shall receive any compensation, either directly or indirectly, for a referral of the insured to an individual or entity for services, work or repairs, relating to any insurance claim for which the public adjuster represents the insured or has negotiated or effected a settlement, unless the compensation is prominently and clearly disclosed to the insured in the written memorandum described in subsection (p) of this section. Any such compensation received shall be deemed to be compensation from the insured and, in combination with any other compensation received from the insured, shall not exceed the maximum amount that the adjuster may charge in accordance with the regulations required pursuant to subsection (p) of this section.

    (B) No public adjuster who has a financial or ownership interest in the individual or entity that performs the services, work, or repairs, shall refer the insured to the individual or entity unless the financial or ownership interest is prominently and clearly disclosed to the insured in the written memorandum described in subsection (p) of this section. If a public adjuster refers an insured to an individual who is related to the individual by blood or affinity to the second degree of consanguinity, or to an entity owned or controlled by such an individual, for services, work, or repairs, relating to any insurance claim for which the public adjuster represents the insured or has negotiated or effected a settlement, then the public adjuster shall disclose the relationship to the insured in the written memorandum described in subsection (p) of this section.

    Section 2. Paragraphs 15 and 16 of subsection (a) of section 2110  of the insurance law are renumbered paragraphs 16 and 17 and a new paragraph 15 is added to read as follows:

    (15) while acting as a public adjuster, the licensee has failed to act on behalf and in the best interests of the insured when negotiating for or effecting the settlement of an insurance claim for such insured or otherwise acting as a public adjuster, or has failed to make the disclosures required by paragraph two of subsection (s) of section two thousand one hundred eight of this article;

    Section 3. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.

  • State Bill: OK H 2208

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    Deleted: Dark red text with a strikethrough
    Vetoed: Red text
     Links to affected code section
    2013 OK H 2208
    Author: Stiles
    Version: Recommended as Substituted from Committee
    Version Date: 02/13/2013

    STATE OF OKLAHOMA

    1st Session of the 54th Legislature (2013)

    COMMITTEE SUBSTITUTE

    FOR

    HOUSE BILL NO. 2208

    By: Stiles

    COMMITTEE SUBSTITUTE

    An Act relating to insurance claims; allowing insured to assign benefits of policy to residential contractor when certain conditions are met; limiting amount of benefits assignable; defining term; requiring a lender to release certain insurance proceeds when certain conditions are met; providing for codification; and providing an effective date.

    BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

    SECTION 1. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 4810 of Title 36, unless there is created a duplication in numbering, reads as follows:

    A. Benefits available under a homeowner's policy, at the option of the insured, shall be assignable to a residential contractor who has provided services and procedures which are covered under the policy. A residential contractor shall be compensated directly by an insurer for services and procedures which have been provided when the following conditions are met:

    1. Benefits available under a policy have been assigned in writing by an insured to the residential contractor; and

    2. A copy of the assignment has been provided by the residential contractor to the insurer.

    B. Benefits assigned by the insured to the residential contractor pursuant to this section shall be limited to the amount of insurable interest, as defined in Section 3605 of Title 36 of the Oklahoma Statutes, the insured has in the property.

    C. As used in this section, "residential contractor" means a person or entity in the business of contracting or offering to contract with an owner or possessor of residential real estate to repair or replace roof systems or perform any other exterior repair, replacement, construction, or reconstruction work on residential real estate.

    SECTION 2. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 4811 of Title 36, unless there is created a duplication in numbering, reads as follows:

    If a claim under an insurance policy for damage to residential real property of Twenty Thousand Dollars ($20,000.00) is paid to the insured and a lender, and the lender holds all or part of the proceeds from the insurance claim payment pending completion of all or part of the repairs to the property, the lender shall either:

    1. If the lender is current on mortgage payments and the lender has received sufficient evidence that the repairs required pursuant to the claim have been completed, release the proceeds to the insured or its assignee not later than ten (10) days after the lender receives payment of the insurance proceeds; or

    2. If the lender is not current on mortgage payments and the lender has received sufficient evidence that the repairs required pursuant to the claim have been completed, release the proceeds to the insured or its assignee not later than ten (10) days after the lender becomes current on the mortgage payments.

    SECTION 3. This act shall become effective November 1, 2013.

  • State Bill: OK H 2209

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    Deleted: Dark red text with a strikethrough
    Vetoed: Red text
     Links to affected code section
    2013 OK H 2209
    Author: Stiles
    Version: Introduced
    Version Date: 02/04/2013

    STATE OF OKLAHOMA

    1st Session of the 54th Legislature (2013)

    HOUSE BILL 2209

    By: Stiles

    AS INTRODUCED

    An Act relating to professions and occupations; amending 59 O.S. 2011, Sections 1151.2, 1151.3, 1151.4, 1151.5, 1151.7, 1151.10, 1151.11, 1151.12, 1151.13 and 1151.14, which relate to the Roofing Contractor Registration Act; modifying definitions; modifying certain unlawful acts; prohibiting certain claims if not registered in good standing under the act; providing for application process upon certain expiration; allowing certain grace period; authorizing Construction Industries Board to make certain public service announcements; requiring submission of certain sworn information; prohibiting registration of certain entity owner; permitting registrar to conduct criminal history search or background check; granting immunity to certain persons; modifying business limitations of roofing contractors; requiring roofing contractors maintain liability insurance and workers' compensation coverage; requiring roofing contractors maintain certain status and registration; requiring roofing contractors file and pay all taxes on time; providing for noncompliance with certain requirements; modifying application timing limits; requiring roofing contractors provide certain notice to registrar; prohibiting certain name change; requiring new application if certain name is changed; modifying process for renewal applications; providing for failure to renew; mandating certain information be posted on a public website; directing certain search capabilities for the website; providing penalties for certain violations; directing law enforcement to arrest certain violators; directing district attorney to file certain charges; authorizing Attorney General to bring claim; requiring district attorney to bring charges or explain why there are no charges; providing for venue in Oklahoma County; directing where fines shall be paid; directing court to issue certain restitution; requiring Construction Industries Board to post certain information on its website; providing for certain civil claims; providing for fraud per se if certain conditions exist; repealing 59 O.S. 2011, Sections 1151.6, 1151.15 and 1151.22, which relate to the Roofing Contractor Registration Act; and providing an effective date.

    BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

    SECTION 1. AMENDATORY 59 O.S. 2011, Section 1151.2 , is amended to read as follows:

    Section 1151.2 As used in the Roofing Contractor Registration Act:

    1. "Roofing services" means the construction, installation, renovation, repair, maintenance, alteration or waterproofing of commercial or residential roofs. Roofing services shall not mean:

    a. the demolition of a structure or the cleanup of construction waste and debris that contains roofing material, or

    b. remedial repairs to roofs to prevent further damage to a structure where the value of the repairs is less than Five Hundred Dollars ($500.00);

    2. "Roofing contractor" means any person, including a subcontractor and nonresident contractor, or entity engaged in the business of commercial or residential providing or offering to perform roofing services to another for a fee, or who offers to engage in or solicits roofing-related services, including construction, installation, renovation, repair, maintenance, alteration, and waterproofing. Roofing contractor shall not mean a person engaged in the demolition of a structure or the cleanup of construction waste and debris that contains roofing material nor a person working under the direct supervision of the roofing contractor who is hired either as an employee, day laborer, or contract laborer. Roofing contractor shall not mean a general contractor, provided the general contractor's subcontractors performing the work are properly registered;

    2. 3. "Nonresident contractor" means any contractor who has not established and maintained a place of business as a roofing contractor in this state within the preceding year, or who claims residency in another state, or who has not submitted an income tax return as a resident of this state within the preceding year;

    3. "Person" 4. "Entity" means any individual, firm, partnership, association, corporation, limited liability company, or other group or combination thereof acting as a unit, unless the intent to give a more limited meaning is disclosed clearly by this act;

    4. 5. "Public contract" means a contract with the State of Oklahoma, its political subdivisions, or any board, commission, or department thereof, or with any board of county commissioners, or with any city council, school board, or with any state or municipal agency, or with any other public board, body, commission, or agency authorized to award contracts for the construction or reconstruction of public work and includes subcontracts undertaken to perform works covered by the original contract or any part thereof; and

    5. 6. "Registrar" means the Construction Industries Board or any person designated by the Board to administer the provisions of this act;

    7. "Entity owner" means any officer or person who owns any interest in an entity, including but not limited to a member, shareholder, partner or silent partner;

    8. "Applicant" means either the person or the business entity applying for registration under the Roofing Contractor Registration Act;

    9. "Fictitious name" means a name that a sole proprietor or entity operates or advertises under that is different, even slightly, from its legal name;

    10. "Disqualifying crime" means any conviction, plea of guilty or nolo contendere, or deferred judgment in any state or the United States of any of the following:

    a. felony or misdemeanor fraud, embezzlement or taking money by false pretenses,

    b. forgery or counterfeiting,

    c. a felony involving the theft of the identity of another,

    d. insurance or public assistance fraud,

    e. felony passing of a bogus, stolen, fraudulent or counterfeit check, or

    f. attempt, conspiracy or accessory after the fact or aiding and abetting to commit any disqualifying crime; and

    11. "Disqualifying civil claim" means any finding of guilt of any of the following causes of action:

    a. fraud,

    b. embezzlement,

    c. taking money by false pretenses, or

    d. any other cause of action in which the person was ordered to return funds to another party.

    SECTION 2. AMENDATORY 59 O.S. 2011, Section 1151.3 , is amended to read as follows:

    Section 1151.3 A. A It shall be unlawful for a person may not engage in the business nor or entity to act in the capacity of as or offer services as a roofing contractor within this state nor may that person bring or maintain any claim, action, suit, or proceeding in any court of this state related to the person's business or capacity as a roofing contractor without unless the person or entity holds a valid registration in good standing as provided in the Roofing Contractor Registration Act.

    B. A person who fails to obtain a valid registration prior to acting as a roofing contractor as defined in the Roofing Contractor Registration Act, a person who acts as a roofing contractor while his or her registration is suspended or revoked, or a person who violates any provision of the Roofing Contractor Registration Act shall be guilty of a misdemeanor, upon conviction, punishable by a fine not to exceed Five Hundred Dollars ($500.00) for each violation. More than one violation in any twelve-month period shall be grounds for the suspension of the registration, and shall cause the person to be ineligible for registration for a period not to exceed twelve (12) months It shall be unlawful for a person to make a false statement on the application for registration or renewal.

    C. It shall be unlawful for a person or entity performing roofing services to bring or maintain any claim, action, suit or proceeding in any court of this state, including but not limited to the collection of money for services rendered, related to roofing services rendered unless such person or entity had a valid registration in good standing as provided in the Roofing Contractor Registration Act at the time services were rendered.

    D. Any person properly registered with the Construction Industries Board on November 1, 2013, shall be considered in good standing until the expiration of the person or entity's registration term. Upon expiration, the person or entity shall complete the application process as if the person or entity was never registered. There shall be a grace period of two (2) months for persons or entities registered prior to November 1, 2013, to become compliant with the Roofing Contractor Registration Act.

    SECTION 3. AMENDATORY 59 O.S. 2011, Section 1151.4 , is amended to read as follows:

    Section 1151.4 The Construction Industries Board is authorized to employ personnel and procure such supplies and equipment as may be necessary to carry out and implement the provisions of this act the Roofing Contractor Registration Act, subject to budgetary limitations and funding. The Construction Industries Board may promulgate forms to implement the provisions of this act. The Construction Industries Board may administer any provision of this act through use of the Internet or other technology as deemed necessary or appropriate. The Construction Industries Board is authorized to make public service announcements in areas affected by storms to inform the public of their rights under this act.

    SECTION 4. AMENDATORY 59 O.S. 2011, Section 1151.5 , is amended to read as follows:

    Section 1151.5 A. To obtain a roofing contractor registration under the Roofing Contractor Registration Act, an applicant a person with an ownership interest in the business who is eighteen (18) years of age or older shall submit, on forms the registrar prescribes, an the following information sworn under oath:

    1. The full legal name of the business or sole proprietor. If the applicant is a sole proprietor then the business name shall be the applicant's name. If the applicant is an entity then the registration shall be under the full entity legal name;

    2. The fictitious name of the business or a statement that the applicant does not operate under any fictitious name. Each person or entity may only register one fictitious name per application. If the applicant has multiple fictitious names then each fictitious name shall be treated as a separate business or entity for which a separate application process shall be required. If the person or entity identifies a fictitious name then the person or entity shall provide a certificate of trade name filed with the Secretary of State;

    3. The phone number, physical address and mailing address of the applicant;

    4. If the applicant is not a sole proprietor, a letter of good standing with the Secretary of State;

    5. The full legal name, date of birth, phone number and physical address of all entity owners;

    6. An application under oath containing a statement of the applicant's experience and qualifications as a roofing contractor, if any, the applicant's name, physical address, business name and address and place of incorporation, if different, information on any other person who will be authorized to act as the business entity, and the applicant's phone number. ;

    7. A copy of the roofing contractor's certificate of liability insurance shall be filed with the application and which shall be not less than Five Hundred Thousand Dollars ($500,000.00). Any insurance company issuing a liability policy to a roofing contractor pursuant to the provisions of the Roofing Contractor Registration Act shall be required to notify the Construction Industries Board in the event such liability policy is cancelled for any reason or lapses for nonpayment of premiums. All registrations granted under the Roofing Contractor Registration Act shall be suspended on the date of the policy cancellation. The registrar must receive proof of insurance prior to restoring the registration. In addition, the roofing contractor shall submit proof that the contractor has secured ;

    8. Proof of workers' compensation coverage satisfactory under the Workers' Compensation Act Code, or an affidavit of exemption or self-insurance as authorized pursuant to the Workers' Compensation Act. If the registrar deems it appropriate or necessary, the registrar may also require Code;

    9. Any other information as the registrar deems it appropriate or necessary to be included on the application form to assist the registrar in registering the person as a contractor. The application shall contain statements ;

    10. Statements that the applicant desires the issuance of a roofing contractor registration certificate; that the applicant will comply with the provisions of the Roofing Contractor Registration Act; that the applicant will comply with state laws and local ordinances relating to standards and permits; that the applicant has or has not been registered or licensed as a roofing contractor in another state and whether any disciplinary action was taken against such registration or license or whether it is still in good standing; and that the nonresident applicant appoints the Secretary of State as legal service agent for all lawful process to be served upon the applicant for work performed in this state or as otherwise provided in the Roofing Contractor Registration Act;

    11. A statement under oath by each entity owner as to whether or not the entity owner has committed any disqualifying crime or disqualifying civil claim. If an applicant answers in the affirmative to any of the questions in this subsection, the registrar shall prescribe a form to gather specific information as to each affirmative answer in order to determine if the applicant is eligible for registration; and

    12. A statement under oath by each entity owner as to whether or not the entity owner has ever been investigated for a disqualifying crime.

    B. The registrar shall refuse to register any person applicant if the registrar determines:

    1. The application contains false, misleading, or incomplete information;

    2. The applicant fails or refuses to provide any information requested by the registrar;

    3. The applicant fails or refuses to pay the required fees;

    4. The applicant is ineligible for registration due to a suspended or revoked registration in this state;

    5. The nonresident applicant has a revoked or suspended registration or license required by law for roofing contractors in another state; or

    6. The applicant has failed or refuses to submit any taxes due in this state; or

    7. Any entity owner has committed or been found to have committed any disqualifying crime or disqualifying civil claim, or a combination of both.

    C. When deemed appropriate, the registrar may conduct a criminal history records search or background check on any applicant or registered roofing contractor and may investigate the information submitted on a roofing contractor application or renewal form.

    D. The registrar, its agents, employees and assigns shall not be liable and are granted immunity for the acts or omissions of any registered roofing contractor or its employees, or for the failure or omission of any person to properly disclose any information on an application or renewal form, including, but not limited to, pending criminal charges, arrests or prior criminal history records, disclosure of roofing contractor registration status, or qualifications to perform or act as a roofing contractor.

    E. The registrar shall notify the applicant in writing if the registrar denies a registration or renewal certificate, and shall provide the applicant an opportunity to respond to or cure any defect in the written application or renewal for a period of ten (10) days from the date of the written notification. An applicant aggrieved by a decision of the registrar denying a registration or renewal may appeal the decision as provided in the Administrative Procedures Act, or the applicant may reapply after a ninety-day waiting period, if otherwise eligible under the provisions of the Roofing Contractor Registration Act. The application and renewal fees shall not be refundable.

    D. The registrar shall classify as not in good standing the registration of any roofing contractor who fails to:

    1. Maintain liability insurance coverage;

    2. Maintain workers' compensation coverage satisfactory under the Workers' Compensation Act, or provide an affidavit of exemption or self-insurance as authorized pursuant to the Workers' Compensation Act;

    3. File, renew, or properly amend any fictitious name certificate;

    4. Maintain an active status of a corporation or registration as a foreign corporation, a limited liability company or registration as a foreign limited liability company, a limited liability partnership registration or foreign limited liability partnership registration, or a limited partnership certificate or limited partnership or foreign limited partnership certificate of authority, with the Office of the Secretary of State;

    5. File or renew a trade name registration;

    6. Maintain or renew a roofing contractor registration as provided in the Roofing Contractor Registration Act;

    7. Notify the registrar of a change in name, address, legal business entity, legal service agent, or adjudication by a court of competent jurisdiction for any act or omission specified in subsection A of Section 1151.14 of this title or a violation of the Roofing Contractor Registration Act;

    8. Maintain a registration as required by law in another state while registered in this state as a nonresident roofing contractor; or

    9. File and pay all taxes when due in this state.

    E. The registrar shall send a written notice to the person when his or her registration is not in good standing. Any roofing contractor who has been notified by the registrar that his or her registration is not in good standing shall cease soliciting or entering new roofing services and projects as of the date of such notification; however, the roofing contractor shall be allowed to complete roofing projects where actual physical work has begun prior to the date of issuance of the notice that his or her registration is not in good standing. The roofing contractor must disclose the change in standing to any homeowner or other person who has an interest in any job covered under the Roofing Contractor Registration Act. Upon notice of a change in standing, the homeowner shall have the option to cancel the contract. The roofing contractor will be owed the actual cost incurred for materials and the market value of labor already incurred on the job. The roofing contractor must obtain an updated authorization from the homeowner and other parties of interest if there is an agreement to continue the job as originally negotiated. If the roofing contractor fails to correct the deficiency specified in the notice by evidence satisfactory to the registrar within thirty (30) days of the date of the notice, or if the roofing contractor solicits or enters into new roofing services contracts or projects while the roofing contractor's registration is not in good standing, or while such registration is suspended or revoked, the roofing contractor shall be in violation of the provisions of the Roofing Contractor Registration Act. Any registration that remains not in good standing for a sixty-day period shall be suspended on the sixtieth day from the date of issuance of the notice to the roofing contractor that his or her registration is not in good standing. Any registration the remains not in good standing, and is suspended for such cause, shall be revoked on the ninetieth day from the date of issuance of the notice to the roofing contractor that his or her registration is not in good standing. The registrar shall notify the roofing contractor upon suspension or revocation of his or her registration for failure to comply in bringing such registration into good standing as required by law. The roofing contractor may reinstate his or her registration to good standing by paying the required fees provided in Section 1151.12 of this title and complying with all other requirements for issuance of a registration in good standing. Any person aggrieved by the decision of the registrar to suspend or revoke a registration pursuant to this section may appeal such decision as provided in the Administrative Procedures Act.

    SECTION 5. AMENDATORY 59 O.S. 2011, Section 1151.7 , is amended to read as follows:

    Section 1151.7 The holder of a roofing contractor registration certificate is entitled to engage in the roofing business within this state pursuant to the provisions of the Roofing Contractor Registration Act, and subject to the following limitations:

    1. A roofing contractor's registration certificate number shall be valid and in good standing at the time of soliciting a project and during subsequent job performance until completion of roofing services;

    2. A roofing contractor's registration certificate number shall be submitted when applying for any permit issued by the state, or any of its political subdivisions, for commercial or residential roofing services or projects, if a permit is required by such authority, and shall be written upon each permit issued. Provided, however, no permitting authority shall require a roofing contractor registration certificate as a condition to issuing a permit when registration is exempt pursuant to Section 1151.9 of this title;

    3. A roofing contractor's registration certificate cannot be shared or used by any other individual or business entity; provided, however, a business firm, partnership, association, corporation, limited liability company, or other group or combination thereof acting as a unit may be granted a single roofing registration certificate number for use by designated roofing contractors acting as employee agents for the business entity when the application for registration contained sufficient information on each member, partner, officer and agent and the registrar issued a single certificate number to such persons as a business unit;

    4. Upon any change to the name, address, business entity, or legal service agent of a roofing contractor or upon adjudication by a court of competent jurisdiction for a violation of the Roofing Contractor Registration Act or an act or omission specified in subsection A of Section 1151.14 of this title, the registrar shall be notified in writing;

    5. A roofing contractor shall comply with state laws and local ordinances relating to standards and permits for roofing services and projects; and

    6. A roofing contractor must

    5. During the registration term, all roofing contractors operating in the state shall:

    a. maintain liability insurance coverage of at least Five Hundred Thousand Dollars ($500,000.00),

    b. maintain workers' compensation coverage satisfactory under the Workers' Compensation Code, or provide an affidavit of exemption or self-insurance as authorized pursuant to the Workers' Compensation Code,

    c. notify the registrar within five (5) days of any change to the information supplied by the roofing contractor in the application including, but not limited to, if any entity owner has committed or been found to have committed any disqualifying crime or civil claim,

    d. maintain an active status of a corporation or registration as a foreign corporation, a limited liability company or registration as a foreign limited liability company, a limited liability partnership registration or foreign limited liability partnership registration, or a limited partnership certificate or limited partnership or foreign limited partnership certificate of authority, with the Secretary of State,

    e. maintain the registration of any trade name,

    f. maintain or renew a roofing contractor registration as provided in the Roofing Contractor Registration Act,

    g. maintain a registration as required by law in another state while registered in this state as a nonresident roofing contractor, and

    h. file and pay all taxes when due in this state; and

    6. Any person or entity that fails to comply with this section shall be deemed not in good standing and shall be subject to the penalty provisions of Section 1151.14 of this title.

    SECTION 6. AMENDATORY 59 O.S. 2011, Section 1151.10 , is amended to read as follows:

    Section 1151.10 Within twenty-five (25) sixty (60) calendar days from the date of application, the registrar shall either issue or deny the roofing contractor registration. No registration shall be issued to an applicant until the registrar receives all documentation and fees necessary to obtain a registration certificate in good standing and a period of thirty (30) days have passed since the application was submitted. The registration certificate issued on an original application entitles the person to act as a roofing contractor within this state for one (1) year, subject to the limitations of this act, until the expiration of the then current fiscal year ending June 30, except that an initial registration issued in May or June is valid until June 30 of the subsequent year. On the effective date of this act, a prorated registration certificate issued between January 1, 2011, and April 30, 2011, shall be valid until June 30, 2011 the Roofing Contractor Registration Act.

    SECTION 7. AMENDATORY 59 O.S. 2011, Section 1151.11 , is amended to read as follows:

    Section 1151.11 Not later than ten (10) days after the date of a change in a roofing contractor's name, address, or legal service agent, or upon a The registered roofing contractor ceasing business as a roofing contractor, the person or entity shall notify the registrar of the any change to the information in the roofing contractor's application on a form provided by the registrar within five (5) days of a change. A name, address, or legal service agent change shall be accompanied by a fee not exceeding Twenty-five Dollars ($25.00) to be set by the registrar. A person may not change his or her name under an active registration certificate if the change is associated with a change in the legal status of the business entity other than a change in marital status. Doing business under a new business name or a change in legal status of a business requires issuance of a new registration certificate. When a registered roofing contractor ceases to be active as a roofing contractor, the registrar shall suspend the registration certificate of such contractor not change its legal or fictitious name. A roofing contractor that changes its legal or fictitious name shall file and be treated as a new application.

    SECTION 8. AMENDATORY 59 O.S. 2011, Section 1151.12 , is amended to read as follows:

    Section 1151.12 A. Any roofing contractor registration certificate issued under this act may be renewed for each successive fiscal year by obtaining from the registrar a certificate of renewal. To obtain a certificate of renewal, the person shall file with the registrar a renewal application by June 30 before the expiration of the registrant's registration term and pay the renewal fee. The application for renewal shall require statements under oath that the applicant has properly submitted income and employment taxes due in this state; and whether or not the applicant has been convicted of any felony offense, and the nature of such offense, there has been any change to the information on the previous application since issuance of the prior registration; and whether or not the applicant has been adjudicated by a court of competent jurisdiction for any violation of this act or any act or omission specified in subsection A of Section 14 of this act disqualifying crime or civil claim. The registrar may forward a copy of any information in an application for renewal to the Oklahoma Tax Commission and any other state agency. The applicant shall include with the renewal application a copy of the certificate of liability insurance, unless the registrar has a current valid certificate of insurance on file, proof of workers' compensation coverage, unless exempt under the Workers' Compensation Act Code, and, if applicable, a copy of the current registration certificate required by law for roofing contractors. The renewal application need not be notarized.

    B. The registrar shall refuse to renew a roofing contractor's registration certificate for any reason stated in subsection B of Section 5 1151.5 of this act title. The registrar shall notify the applicant in writing if the registrar denies the renewal as provided in subsection C E of Section 51151.5 of this act title.

    C. If any roofing contractor fails to file a renewal application by the June 30 deadline that contractor's registration shall be not in good standing renew by thirty (30) days after the end of its registration period or the registrar does not renew the registration for failure to comply with the Roofing Contractor Registration Act, the person or entity shall be considered not registered. A roofing contractor has a thirty-day grace period after June 30 the expiration of the registration term to renew the registration certificate without a late fee. The late fee shall be set by the registrar and such fee shall not exceed One Hundred Dollars ($100.00). A roofing contractor registration certificate not renewed by August 30 shall be suspended for failure to renew, and on January 1, if a roofing contractor's registration certificate still has not been renewed, it shall be revoked for failure to renew.

    D. 1. A roofing contractor desiring to renew a registration certificate that has been suspended for any cause provided in this act shall be assessed a fee equal to twice the amount of the fee established by subsection D of Section 8 1151.8 of this act title.

    2. The registrar shall assess a reinstatement fee not exceeding Three Hundred Dollars ($300.00) to be set by the registrar plus the fee established by Section 8 1151.8 of this act title for any registration that has been revoked for any cause provided in this act.

    3. A roofing contractor submitting an application for registration after suspension or revocation of that contractor's registration certificate must be otherwise eligible for registration under this act.

    E. The registrar shall include a registration status notation in a roofing contractor's record if the status of registration changes from an active and valid registration to not in good standing, denied, suspended or revoked.

    SECTION 9. AMENDATORY 59 O.S. 2011, Section 1151.13 , is amended to read as follows:

    Section 1151.13 The registrar shall maintain in the registrar's office in Oklahoma City, Oklahoma, open to public inspection during normal office hours and on its website, a complete indexed record of all roofing contractor registrations and information maintained on individual roofing contractors. The registrar may dispose of an inactive roofing contractor file after three (3) years. Before disposal and upon written request by any person, the registrar shall furnish a certified copy of any information maintained on an individual roofing contractor upon receipt of the sum of Ten Dollars ($10.00) for each annual record. The index shall also be available on a public website with capabilities to search by applicant, entity and entity owner name. Each certified copy of a roofing contractor's record from the registrar shall be received in all courts in this state as prima facie evidence of the facts stated therein. The registrar may condense or provide an abstract of a roofing contractor's record for public inspection at any time for purposes of data management; provided, a complete record is available for public inspection upon written request.

    SECTION 10. AMENDATORY 59 O.S. 2011, Section 1151.14 , is amended to read as follows:

    Section 1151.14 A. Any person may file a duly verified complaint with the registrar alleging that the person has committed any of the following acts or omissions:

    1. Abandonment of a roofing contract without legal excuse after a deposit of money or other consideration has been paid;

    2. Diversion of funds or property entrusted to a roofing contractor;

    3. Engaging in any fraudulent or deceptive acts or practices or misrepresentation of products, services or qualifications as a roofing contractor;

    4. Making a false or misleading statement in an application for roofing contractor registration or renewal application or in soliciting a contract for roofing services;

    5. Adjudication against the roofing contractor by a court of competent jurisdiction for a violation of the provisions of this act;

    6. Engaging in work without a valid registration as required for roofing contractors pursuant to this act or performing roofing services during any period when the roofing contractor's registration is denied, suspended or revoked;

    7. Engaging in roofing services without obtaining a proper permit as may be required by any state or local authority;

    8. Failure to comply with any tax laws authorized by the state or any of its political subdivisions;

    9. Damaging or injuring persons or property while performing roofing services under a valid roofing contractor registration for which the roofing contractor's liability insurance or workers compensation coverage was inadequate; or

    10. Failure to comply with a specified provision of this act or entity who has acted as a roofing contractor while not in good standing or without being registered, or a person or entity owner who violates any provision of the Roofing Contractor Registration Act shall be guilty of a misdemeanor, upon conviction, punishable by a fine of not less than Five Hundred Dollars ($500.00) but not more than One Thousand Dollars ($1,000.00) for each violation. Upon the third conviction, subsequent violations shall be charged as a felony. Nothing in this act shall preclude the additional charge of taking money by false pretenses.

    1. Any person violating this act may be arrested by any law enforcement agency with probable cause. If an inspector with the Construction Industries Board notifies a law enforcement officer of a roofing contractor performing roofing services without registration or not in good standing, it shall be presumed that the officer has probable cause to arrest.

    2. The district attorney where the roofing contractor committed a violation shall file charges upon a report filed with any law enforcement agency by any person. In addition to the district attorney, the Attorney General shall have authority to bring a claim in any proper venue.

    3. Within thirty (30) days of written demand by a representative of the Construction Industries Board, the district attorney for the county where the roofing contractor violated this act shall either bring charges or respond as to the reason why charges shall not be brought against the alleged violator.

    4. In addition to the county where the violation occurred, venue shall be proper in Oklahoma County to bring a claim against any person violating this act in Oklahoma County.

    5. When a person is found guilty under this act, the fine shall go to the district attorney's office that filed the action for their prosecutorial expenses. In addition to the fine, the court shall issue reasonable restitution to the Construction Industries Board for its investigation and testimony expenses paid by the person found guilty.

    6. In order to inform the public of unlawfully operating roofing contractors and the prosecution thereof, the Construction Industries Board shall post the following information on its website:

    a. the names of all persons and entities which the Construction Industries Board has demanded to be prosecuted under this section,

    b. the county of the district attorney the demand was referred to,

    c. the date the demand for prosecution was made, and

    d. either the date the district attorney brought charges against the alleged violator, or the reason why the district attorney has not brought charges.

    B. The complaint shall be on a form approved by the registrar and shall set forth the alleged act or omission stated in subsection A of this section, and a statement of sufficient facts upon which a reasonable person could conclude that the act or omission specified in subsection A of this section has been committed. All complaints filed with the registrar shall be open to public inspection. Nothing in this section shall be construed to require the complainant to first file a complaint with the registrar before seeking relief or remedies allowed by law A person who paid money to any roofing contractor and such roofing contractor did not complete the roofing services in a reasonable amount of time may bring an action of fraud in civil court. It is fraud per se if a roofing contractor was not registered or was registered but not in good standing at the time of receiving money.

    C. A complaint received by the registrar as provided in this section shall be referred to the district attorney for appropriate disposition as determined by the district attorney, in his or her discretion.

    SECTION 11. REPEALER 59 O.S. 2011, Sections 1151.61151.15 and 1151.22, are hereby repealed.

    SECTION 12. This act shall become effective November 1, 2013.

  • State Bill: OK S 1025

    Added: Green underlined text
    Deleted: Dark red text with a strikethrough
    Vetoed: Red text
     Links to affected code section
    2013 OK S 1025
    Author: Newberry
    Version: Engrossed
    Version Date: 02/26/2013

    ENGROSSED

    SENATE BILL NO. 1025

    By: Newberry of the Senate

    and

    Echols of the House

    An Act relating to roofing contractors; amending 59 O.S. 2011, Section 1151.2, which relates to definitions; adding and modifying definitions; requiring commercial roofer examination; providing certain components of tests; setting fee for commercial roofer endorsement; stating term of endorsement; requiring certain continuing education for renewal of endorsement; providing for suspension or revocation of endorsement; setting renewal fee; setting penalties for certain violations; setting reinstatement fee; requiring nonresident commercial roofers to take examination prior to registration; providing temporary registration during state of emergency; setting fee for temporary registration; requiring registration with the Oklahoma Tax Commission for certain purpose; stating term of temporary registration; providing for examinations during state of emergency; setting certain examination fees; allowing repeat testing; providing exemption for certain persons; stating exemption requirements; creating Roofing Examination and Review Board; stating purpose of Board; authorizing hiring of professional test designer; authorizing Governor to appoint membership; providing term of membership; providing method for reconstituting Board; stating member qualifications; making Administrator of Construction Industries Board ex officio member of Board; providing for quorum, travel reimbursement, and reappointment; authorizing the registrar to employ persons for certain purpose; authorizing registrar to promulgate rules and forms; including endorsement on roofing contractor's registration for public notification; providing for codification; and providing an effective date.

    BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

    SECTION 1. AMENDATORY 59 O.S. 2011, Section 1151.2 , is amended to read as follows:

    Section 1151.2. As used in the Roofing Contractor Registration Act:

    1. "Roofing contractor" means any person, including a subcontractor and nonresident contractor, engaged in the business of commercial or residential roofing services for a fee, or who offers to engage in or solicits roofing-related services, including construction, installation, renovation, repair, maintenance, alteration, and waterproofing. Roofing contractor shall not mean:

    a. a person engaged in the demolition of a structure or the cleanup of construction waste and debris that contains roofing material nor ,

    b. a person working under the direct supervision of the roofing contractor who is hired either as an employee, day laborer, or contract laborer, or

    c. a person working on his or her residential or farm property, whether actually performing the work or using the assistance or labor of family members, relatives, neighbors or employees;

    2. "Nonresident contractor" means any contractor who has not established and maintained a place of business as a roofing contractor in this state within the preceding year, or who claims residency in another state, or who has not submitted an income tax return as a resident of this state within the preceding year;

    3. "Commercial roofing contractor" means any person who acts as a roofing contractor as defined in paragraph 1 of this section and who engages in such roofing services on commercial, industrial or public buildings or structures;

    4. "Person" means any individual, firm, partnership, association, corporation, limited liability company, or other group or combination thereof acting as a unit, unless the intent to give a more limited meaning is disclosed clearly by this act the Roofing Contractor Registration Act;

    4. 5. "Public contract" means a contract with the State of Oklahoma, its political subdivisions, or any board, commission, or department thereof, or with any board of county commissioners, or with any city council, school board, or with any state or municipal agency, or with any other public board, body, commission, or agency authorized to award contracts for the construction or reconstruction of public work and includes subcontracts undertaken to perform works covered by the original contract or any part thereof; and

    5. 6. "Registrar" means the Construction Industries Board or any person designated by the Board to administer the provisions of this act the Roofing Contractor Registration Act.

    SECTION 2. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 1151.25 of Title 59, unless there is created a duplication in numbering, reads as follows:

    A. Except as otherwise provided in the Roofing Contractor Registration Act, on and after January 1, 2014, every commercial roofing contractor soliciting or performing roofing services in this state shall be required to take and successfully pass a commercial roofing examination approved by the Roofing Examination and Review Board before acting or being registered as a commercial roofing contractor. The commercial roofing examination shall include test questions covering professional competencies and skills on a variety of roofing structures, materials and systems, best practices, and provisions on Oklahoma law and construction codes. Once a commercial roofing contractor has successfully passed the examination, or been allowed an exemption from the examination as provided by law, the registrar shall issue a commercial roofer endorsement on the roofing contractor registration upon receipt of a fee of One Hundred Dollars ($100.00). The commercial roofer endorsement shall be valid for three (3) years. To renew the commercial roofer endorsement, the holder of the commercial roofer endorsement shall be required to attend a continuing education course approved by the Construction Industries Board covering changes to Oklahoma law regarding the Roofing Contractor Registration Act and related codes and provisions. Any fees for attending a continuing education course shall be set by the provider and paid by the participant. Failure of the holder of a commercial roofer endorsement to attend the required courses within the prescribed three-year period shall result in the holder's commercial roofer endorsement being suspended for not more than three (3) months during which time the commercial roofing contractor may correct the deficiency and submit proof of having participated in the required continuing education course. Any commercial roofing contractor who fails to complete and submit the necessary proof of participation in the required continuing education course within the time prescribed, shall have their commercial roofer endorsement revoked by the registrar for one (1) year, after which time the commercial roofing contractor may reapply to retake the commercial roofer examination upon payment of the required fees. The renewal fee for a commercial roofer endorsement shall be Fifty Dollars ($50.00) and shall be submitted to the registrar with the proof of participation in the required continuing education courses.

    B. Any person who fails to comply with the examination and continuing education requirements established in subsection A of this section shall be in violation of the Roofing Contractor Registration Act. The violator, in addition to the penalty prescribed in Section 1151.3 of Title 59 of the Oklahoma Statutes and revocation of the commercial endorsement, shall be subject to an administrative fine not less than one percent (1%) nor more than five percent (5%) of the total amount of each roofing job solicited, bid or performed while in noncompliance with the provisions of the Roofing Registration Act. The roofing contractor registration may be suspended for a period up to three (3) years if it is determined after notice and an administrative hearing that the commercial roofing contractor has willfully failed or refused to comply with the requirements for commercial roofing contractors pursuant to the Roofing Contractor Registration Act. There shall be a reinstatement fee of Two Hundred Dollars ($200.00) for any suspended or revoked registration or endorsement.

    C. All nonresident roofing contractors intending to operate or doing business in this state must be registered and comply with all provisions of the Roofing Contractor Registration Act and state laws. Each nonresident commercial roofing contractor must take and pass the commercial roofing examination prior to registration and must maintain continuing education requirements the same as required for resident commercial roofing contractors. Failure of a nonresident commercial roofing contractor to be registered or to take and pass the required commercial roofer examination or maintain continuing education requirements shall be punishable as a violation of the Roofing Contractor Registration Act and, in addition, the violator shall be subject to an administrative fine of not less than one percent (1%) nor more than five percent (5%) of each roofing job solicited, bid or performed while in noncompliance with the Roofing Contractor Registration Act. These penalties shall be in addition to any penalty provided by Section 1707 of Title 68 of the Oklahoma Statutes which may be imposed by the Oklahoma Tax Commission, or any penalty imposed by the Oklahoma Employment Security Commission or the Workers' Compensation Code.

    D. When a state of emergency is declared by the Governor, the registrar is authorized to permit nonresident roofing contractors to solicit and do business in this state under a temporary roofing contractor registration upon proper application, approval and payment of a fee of One Hundred Dollars ($100.00). A temporary roofing contractor registration card and proper registration with the Oklahoma Tax Commission must be obtained prior to soliciting, bidding or performing any roofing services in this state. The temporary registration shall be valid for six (6) months and shall be of a distinctive color or design to identify it as a temporary roofing contractor registration. Upon temporary registration each nonresident commercial roofing contractor shall be provided information on where to take the commercial roofer examination, which is required for all commercial roofing contractors. The examination shall be continuously available at scheduled locations within the first thirty-day period following the date of the declaration of emergency, and the testing period may be extended for an additional thirty-day period when deemed appropriate by the registrar. All commercial roofing contractors must pass the commercial roofer examination within thirty (30) days of entering this state with intent to solicit, bid or perform roofing services or their roofing contractor registration will be permanently denied and revoked. The registrar shall require each applicant for a temporary roofing contractor registration to substantiate his or her prior commercial roofing experience and meet all registration requirements stated in Section 1151.5 of Title 59 of the Oklahoma Statutes, including liability insurance, workers' compensation, and registration with the Oklahoma Tax Commission. A person authorized by the registrar to take the commercial roofer examination under a temporary registration may repeat the test once within the thirty-day period if the person fails to pass the examination on a first attempt. Any person failing to comply with the requirements of the Roofing Contractor Registration Act during a state of emergency shall be subject to the misdemeanor criminal penalty provided in the Roofing Contractor Registration Act, and shall be subject to an administrative fine not less than five percent (5%) and not more than ten percent (10%) of all roofing services solicited, bid or performed during the period of noncompliance with the law.

    E. The commercial roofing examination fee covering professional competencies, skills and best practices shall be One Hundred Fifty Dollars ($150.00). The examination fee covering the portion of the examination on Oklahoma law and construction codes shall be Fifty Dollars ($50.00). The commercial roofing examination may be retaken if a first test score does not result in successful passage. No person shall take the commercial roofing examination more than twice in one year and there shall be a minimum waiting period of at least thirty (30) days between any repeat testing, except as allowed during a declared state of emergency. The commercial roofing examination shall be offered at least monthly on dates and times determined by the registrar, except as provided for a declared state of emergency.

    F. 1. On January 1, 2014, the following persons may make application for an exemption to the requirement for taking and passing the commercial roofer examination:

    a. the owner or owners of an established roofing, remodeling or construction business who have had an employer identification number issued to such business in this state for more than five (5) years next preceding the date of application for exemption, and who have had continuous registrations and compliance with the Oklahoma Secretary of State, the Oklahoma Tax Commission, the Oklahoma Employment Security Commission, the Workers' Compensation Code, the Internal Revenue Service, and the Social Security Administration, or

    b. a person currently employed by a roofing, remodeling or construction business as defined in paragraph 1 of this subsection whose owner or owners are not making application for an exemption and who has been a supervising on-the-job foreman, manager or inspector for such business for at least five continuous years preceding the date of application for exemption.

    2. The application for exemption shall be made upon a form designated by the registrar, signed and sworn upon oath by the applicant before a notary. The exemption form shall be submitted to the registrar with a nonrefundable fee of One Hundred Dollars ($100.00) and shall be approved or denied by the registrar not later than February 1, 2014, or be forever barred from exemption.

    3. The documents to be submitted with an application for exemption shall include:

    a. proof of valid liability insurance coverage for the commercial business entity in an amount not less than One Million Dollars ($1,000,000.00) for each of the five (5) years preceding the date of application for exemption,

    b. proof of coverage and premium payments under the Workers' Compensation Code for each of the five (5) years preceding the date of application for exemption, and

    c. proof of valid bonds issued to the commercial business entity in a minimum amount of Seven Hundred Fifty Thousand Dollars ($750,000.00) for projects covering the period for each of the five (5) years preceding the date of application for exemption.

    4. An exemption from taking the commercial roofer examination approved by the registrar shall grant the exemption to the designated business entity only. The exemption shall continue indefinitely provided the business continues its current operation, submits its continuing education requirements for renewal of the commercial roofer endorsement, and provides sufficient proof by documentation upon each subsequent renewal of a commercial roofer endorsement that the exemption factors still apply to the commercial business.

    SECTION 3. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 1151.26 of Title 59, unless there is created a duplication in numbering, reads as follows:

    A. There is hereby created the Roofing Examination and Review Board for the sole purpose of creating a state commercial roofing examination and scoring mechanism for the Roofing Contractor Registration Act. The Board shall create additional examination materials to be included as part of the commercial roofing examination which shall relate specifically to Oklahoma law and construction codes. The Board may contract with or hire a professional test designer or writer, subject to funds available.

    B. The Board shall commence its work within thirty (30) days of the date of the last member appointment to the Board and shall terminate its work on the thirtieth day after the first examination date on new test materials. The Board is prohibited from conducting business after the date terminating official business until the Governor has reconstituted a new Board. The Board shall be reconstituted with the same or newly appointed members every third year not later than September 1; provided, however, the Governor may reconstitute the Board earlier than the third year if significant legislative changes have been made to the Roofing Contractor Registration Act or when the construction codes are amended. All appointments for a reconstituted Board shall be made by the Governor in the same manner as initial appointments to the Board. Each reconstituted Board shall review the current approved commercial roofing examination materials and make adjustments to the examination materials as necessary to adjust for any changes in the roofing industry, law or construction codes. Each reconstituted Board shall commence its work within thirty (30) days of the date of the last member appointment to the Board and shall terminate its work on the thirtieth day after the first examination date on the new approved test materials.

    C. Members of the Roofing Examination and Review Board shall each have one vote and shall be appointed by the Governor as follows:

    1. One member shall be a licensed architect with a minimum of five (5) years' experience in commercial roof design. This member shall be selected from a list of three qualified and eligible architects submitted by a state organization representing engineers;

    2. Two members shall be commercial roofing contractors each with a minimum of five (5) years' actual job experience in commercial roofing in this state and who are registered pursuant to the Roofing Contractor Registration Act;

    3. One member shall be an employee of the Construction and Property Division of the Oklahoma State Department of Central Services with experience in developing roofing standards or supervising roofing construction or repairs;

    4. One member shall be a licensed engineer with a minimum of five (5) years' experience in commercial roof design. This member shall be selected from a list of three qualified and eligible engineers submitted by a state organization representing engineers;

    5. One member shall be a general contractor with a minimum of five (5) years' experience in commercial construction. This member shall be selected from a list of three qualified and eligible general contractors submitted by a state organization representing general contractors; and

    6. One member shall be an attorney residing in this state who has experience in the building and construction industry or with public works projects, bids or contracts.

    D. The Administrator of the Construction Industries Board shall be a nonvoting, ex officio member of the Board.

    E. The Board shall comply with the Oklahoma Open Meeting Act and the Oklahoma Open Records Act. Four members shall constitute a quorum for purposes of conducting official business and business may be transacted by electronic means as deemed appropriate. Members may receive travel reimbursements as allowed by the State Travel Reimbursement Act; however, no member shall receive any other compensation for performance of Board duties. Members may be removed by the Governor for cause and any vacancy in membership may be filled for the unexpired term as provided for the initial appointment. Members shall not be limited in the number of their reappointments.

    F. The registrar shall provide staff and administrative assistance to the Board to complete its duties and shall pay any travel reimbursements allowed by law for members. The registrar shall employ a person or persons to actually conduct the commercial roofing examinations, score examinations and notify the examinee of passage or failure to pass the examination. The registrar shall develop an application form and procedures for an applicant to schedule and take or retake the commercial roofing examination and may promulgate rules necessary to administer and enforce the commercial roofing provisions of the Roofing Contractor Registration Act. The registrar shall include an endorsement on each roofing contractor's registration information when the roofing contractor has successfully passed the commercial roofing examination so the public will have notification of all successfully examined commercial roofing contractors in the roofing contractor registration database.

    SECTION 4. This act shall become effective November 1, 2013.

  • State Bill: OK S 1053

    Added: Green underlined text
    Deleted: Dark red text with a strikethrough
    Vetoed: Red text
     Links to affected code section
    2013 OK S 1053
    Author: Newberry
    Version: Engrossed House Amendment
    Version Date: 04/03/2013

    ENGROSSED HOUSE AMENDMENT

    TO

    ENGROSSED SENATE BILL NO. 1053

    By: Newberry of the Senate

    and

    McBride of the House

    [Roofing Contractor Registration Act - modifying language - requiring bond - effective date - emergency]

    NOTE: Emergency failed

    AMENDMENT NO. 1. Strike the title, enacting clause and entire bill and insert

    "[Roofing Contractor Registration Act - modifying language - requiring bond]

    BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

    SECTION 1. AMENDATORY 59 O.S. 2011, Section 1151.5 , is amended to read as follows:

    Section 1151.5 A. 1. To obtain a roofing contractor registration under the Roofing Contractor Registration Act, an applicant who is eighteen (18) years of age or older shall submit, on forms the registrar prescribes, an application under oath containing a statement of the applicant's experience and qualifications as a roofing contractor, if any, ; the applicant's name, physical address, business name and address, phone number, and place of incorporation, if different, information from this state; and information, including but not limited to, name, address and phone number on any other person who will be authorized to act as the business entity, and the applicant's phone number.

    2. A copy of the roofing contractor's certificate of liability insurance shall be filed with the application and shall be not less than Five Hundred Thousand Dollars ($500,000.00). Any insurance company issuing a liability policy to a roofing contractor pursuant to the provisions of the Roofing Contractor Registration Act shall be required to notify the Construction Industries Board in the event such liability policy is cancelled for any reason or lapses for nonpayment of premiums. All registrations granted under the Roofing Contractor Registration Act shall be suspended on the date of the policy cancellation. The registrar must receive proof of insurance prior to restoring the registration.

    3. Beginning January 1, 2014, each new applicant for a roofing contractor registration and each registered or renewing roofing contractor shall procure and file with the registrar a good and sufficient bond in the amount of Thirty Thousand Dollars ($30,000.00). In addition to all other conditions and requirements set forth herein for registration, the bond shall require the availability of prompt and full warranty services by the roofing contractor to comply with all warranties expressed or implied in connection with each roofing project performed in this state. The bond shall be approved as to form by the Attorney General and conditioned that the roofing contractor shall not misrepresent his or her qualifications and experience or any roofing-related service or product to the property owner or violate any of the provisions of the Roofing Contractor Registration Act. One of the purposes of the bond is to provide reimbursement for any loss or damage suffered by any person by reason of any roofing-related services performed by the registered roofing contractor or persons acting on his or her behalf. The bond shall be maintained throughout the period of registration. Should the bond be canceled for any reason, the roofing contractor registration shall be revoked as of the date of cancellation unless a new bond is furnished prior to such date.

    4. In addition, the roofing contractor shall submit proof that the contractor has secured workers' compensation coverage satisfactory under the Workers' Compensation Act, or an affidavit of exemption or self-insurance as authorized pursuant to the Workers' Compensation Act.

    5. If the registrar deems it appropriate or necessary, the registrar may also require other information to be included on or with the application form to assist the registrar in registering the person as a roofing contractor. The application shall contain statements that the applicant desires the issuance of a roofing contractor registration certificate; that the applicant will comply with the provisions of the Roofing Contractor Registration Act; that the applicant will comply with state laws and local ordinances relating to standards and permits; that the applicant has or has not been registered or licensed as a roofing contractor in another state and whether any disciplinary action was taken against such registration or license or whether it is still in good standing; and that the nonresident applicant appoints the Secretary of State as legal service agent for all lawful process to be served upon the applicant for work performed in this state or as otherwise provided in the Roofing Contractor Registration Act.

    B. The registrar shall refuse to register any person if the registrar determines:

    1. The application contains false, misleading, or incomplete information;

    2. The applicant fails or refuses to provide any information requested by the registrar or required for registration;

    3. The applicant fails or refuses to pay the required fees or provide the bond;

    4. The applicant is ineligible for registration due to a suspended or revoked registration in this state;

    5. The nonresident applicant has a revoked or suspended registration or license required by law for roofing contractors in another state; or

    6. The applicant has failed or refuses to submit any taxes due in this state.

    C. The registrar shall notify the applicant in writing if the registrar denies a registration or renewal certificate, and shall provide the applicant an opportunity to respond to or cure any defect in the written application or renewal for a period of ten (10) days from the date of the written notification. An applicant aggrieved by a decision of the registrar denying a registration or renewal may appeal the decision as provided in the Administrative Procedures Act, or the applicant may reapply after a ninety-day waiting period, if otherwise eligible under the provisions of the Roofing Contractor Registration Act. The application and renewal fees shall not be refundable.

    D. The registrar shall classify as not in good standing the registration of any roofing contractor who fails to:

    1. Maintain liability insurance coverage or bond;

    2. Maintain workers' compensation coverage satisfactory under the Workers' Compensation Act, or provide an affidavit of exemption or self-insurance as authorized pursuant to the Workers' Compensation Act;

    3. File, renew, or properly amend any fictitious name certificate;

    4. Maintain an active status of a corporation or registration as a foreign corporation, a limited liability company or registration as a foreign limited liability company, a limited liability partnership registration or foreign limited liability partnership registration, or a limited partnership certificate or limited partnership or foreign limited partnership certificate of authority, with the Office of the Secretary of State;

    5. File or renew a trade name registration;

    6. Maintain or renew a roofing contractor registration as provided in the Roofing Contractor Registration Act;

    7. Notify the registrar of a change in name, address, legal business entity, legal service agent, or adjudication by a court of competent jurisdiction for any act or omission specified in subsection A of Section 1151.14 of this title or a violation of the Roofing Contractor Registration Act;

    8. Maintain a registration as required by law in another state while registered in this state as a nonresident roofing contractor; or

    9. File and pay all taxes when due in this state.

    E. The registrar shall send a written notice to the person when his or her registration is not in good standing. Any roofing contractor who has been notified by the registrar that his or her registration is not in good standing shall cease soliciting or entering new roofing services and projects as of the date of such notification; however, the roofing contractor shall be allowed to complete roofing projects where actual physical work has begun prior to the date of issuance of the notice that his or her registration is not in good standing. The roofing contractor must disclose the change in standing to any homeowner property owner or other person who has an interest in any job covered under the Roofing Contractor Registration Act. Upon notice of a change in standing, the homeowner property owner shall have the option to cancel the contract. The roofing contractor will be owed the actual cost incurred for materials and the market value of labor already incurred on the job. The roofing contractor must obtain an updated authorization from the homeowner and other parties of interest if there is an agreement to continue the job as originally negotiated. If the roofing contractor fails to correct the deficiency specified in the notice by evidence satisfactory to the registrar within thirty (30) days of the date of the notice, or if the roofing contractor solicits or enters into new roofing services contracts or projects while the roofing contractor's registration is not in good standing, or while such registration is suspended or revoked, the roofing contractor shall be in violation of the provisions of the Roofing Contractor Registration Act. Any registration that remains not in good standing for a sixty-day period shall be suspended on the sixtieth day from the date of issuance of the notice to the roofing contractor that his or her registration is not in good standing. Any registration that remains not in good standing and is suspended for such cause, shall be revoked on the ninetieth day from the date of issuance of the notice to the roofing contractor that his or her registration is not in good standing. The registrar shall notify the roofing contractor upon suspension or revocation of his or her registration for failure to comply in bringing such registration into good standing as required by law. The roofing contractor may reinstate his or her registration to good standing by paying the required fees provided in Section 1151.12 of this title and complying with all other requirements for issuance of a registration in good standing. Any person aggrieved by the decision of the registrar to suspend or revoke a registration pursuant to this section may appeal such decision as provided in the Administrative Procedures Act."

     

  • State Bill: OK S 1668

    2013 OK S 1668 Author: Newberry Version: Prefiled Version Date: 01/17/2014 STATE OF OKLAHOMA 2nd Session of the 54th Legislature (2014) SENATE BILL 1668 By: Newberry AS INTRODUCED An Act relating to the Roofing Contractor Registration Act; amending 59 O.S. 2011, Sections 1151.2, 1151.3, 1153.4, 1151.5, 1151.7, 1151.8, 1151.9 and 1151.10, which relate to definitions, authorized activities, personnel, qualifications for registration, limitation of registration fees, application of act and duration of endorsements and registrations; modifying definitions; requiring certain registration; authorizing commercial endorsement; expanding records kept; restricting advertising; providing for seizure and forfeiture of property; authorizing administrative fines; setting maximum fine and penalty; stating duty of building officials; granting powers and duties to Construction Industry Board; stating procedure for application; authorizing Construction Industry Board to enforce provisions; requiring display of registration; requiring posting of registration; requiring certain notification of convictions; requiring written contract; setting registration durations; making commercial endorsements expire with license; providing for hearing for denial of registration; authorizing appeals from hearings; setting endorsement fees; requiring continuing education for endorsements; granting exception for late fees for military service; amending 59 O.S. 2011, Section 1151.12, which relates to renewal; clarifying renewals procedure; modifying references; amending 59 O.S. 2011, Section 1151.14, which relates to complaints; requiring written complaint; expanding cause of complaints; amending 59 O.S. 2011, Section 1151.15, which relates to referral of complaint to district attorney; providing for certain investigation; providing for notice of complaint referral; amending 59 O.S. 2011, Section 1151.17, which relates to building permits; requiring certain posting at job site; requiring a commercial roofing examination by certain date; establishing testing periods; prohibiting retake of examination within certain time; providing exception for state of emergency; creating the Committee of Roofing Examiners; providing for membership, terms, qualifications, appointments, vacancy, quorum, officers, and travel reimbursements; providing duties and authority; designating certain person as chair; directing compliance with Administrative Procedures Act; providing for hearing examiners; creating the Roofing Hearing Board; setting duties; creating the Oklahoma State Roofing Installation Code Variance and Appeals Board; providing duties; setting variance application fee; providing for membership, meetings, travel reimbursement, and quorum; providing for codification; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 59 O.S. 2011, Section 1151.2 , is amended to read as follows: Section 1151.2. As used in the Roofing Contractor Registration Act: 1. "Roofing contractor" means any person, including a subcontractor and nonresident contractor, engaged in the business of commercial or residential roofing services for a fee, or who offers to engage in or solicits roofing-related services, including construction, installation, renovation, repair, maintenance, alteration, and waterproofing. Roofing contractor shall not mean a person engaged in the demolition of a structure or the cleanup of construction waste and debris that contains roofing material nor a person working under the direct supervision of the roofing contractor who is hired either as an employee, day laborer, or contract laborer; 2. "Nonresident contractor" means any contractor who has not established and maintained a place of business as a roofing contractor in this state within the preceding year, or who claims residency in another state, or who has not submitted an income tax return as a resident of this state within the preceding year; 3. "Person" means any individual, firm, partnership, association, corporation, limited liability company, or other group or combination thereof acting as a unit, unless the intent to give a more limited meaning is disclosed clearly by this act; 4. "Public contract" means a contract with the State of Oklahoma, its political subdivisions, or any board, commission, or department thereof, or with any board of county commissioners, or with any city council, school board, or with any state or municipal agency, or with any other public board, body, commission, or agency authorized to award contracts for the construction or reconstruction of public work and includes subcontracts undertaken to perform works covered by the original contract or any part thereof; and 5. "Registrar" means the Construction Industries Board or any person designated by the Board to administer the provisions of this act. "Advertise" means any written or oral publication, dissemination, solicitation, contract, bid, promotional item, or circulation which is intended to directly or indirectly induce any person to contract for roofing construction services with the advertiser, including but not limited to, business cards, telephone directory display advertisements, vehicle signage, and personal, telephone, and electronic solicitations; 2. "Applicant" means the qualifying party, or if no qualifying party, any person applying under the Roofing Contractor Registration Act for a roofing contractor registration to be issued by the Construction Industries Board; 3. "Board" means the Construction Industries Board; 4. "Committee" means the Committee of Roofing Examiners; 5. "Homeowner" means one who owns and resides in, or who resides in, or who contracts for the purchase, construction, remodeling or repairing of a residence; 6. "Nonresident contractor" means any contractor who has not established and maintained a place of business as a roofing contractor in this state within the preceding year, or who claims residency in another state, or who has not submitted an income tax return as a resident of this state within the preceding year; 7. "Owner" means person who owns the property or is a lessee of the property; 8. "Person" means any natural person, firm, limited or general partnership, corporation, association, limited liability company, trust, association, other legal entity and any organization capable of conducting business, or any combination thereof acting as a unit, unless the intent to give a more limited meaning is disclosed clearly by the Roofing Contractor Registration Act; 9. "Prime contractor" means a general contractor, commercial contractor, or other contractor who contracts directly with the owner for construction trade work in multiple trade areas; 10. "Project manager" means one who manages construction projects consisting of work involving multiple trades; 11. "Public contract" means a contract with the State of Oklahoma, its political subdivisions, or any board, commission, or department thereof, or with any board of county commissioners, or with any city council, school board, or with any state or municipal agency, or with any other public board, body, commission, or agency authorized to award contracts for the construction or reconstruction of public works and includes subcontracts undertaken to perform works covered by the original contract or any part thereof; 12. "Qualifying party" means a natural person who is an officer or owner of the corporation, a member of the limited liability company, or a general partner of the limited liability partnership, and who is actively engaged in the work undertaken by the registrant for which a registration is required pursuant to the Roofing Contractor Registration Act who meets the experience and ability requirements for registration on behalf of the registrant; 13. "Registrar" means the Construction Industries Board or any person designated by the Board to administer the provisions of the Roofing Contractor Registration Act; 14. "Registration" means the process of applying for an initial or renewal registration which upon approval is exhibited by a registration number and card issued by the pursuant to the Roofing Contractor Registration Act; 15. "Registration number" means the roofing registration number issued by the registrar to the registrant's qualifying party; 16. "Registrant" means a holder of a registration issued pursuant to the Roofing Contractor Registration Act; 17. "Residence" means a single structure for residential occupancy or use which is a detached one- or two-family dwelling or a multiple single-family dwelling (townhouse) not more than three (3) stories/floors above grade plane in height with a separate means of egress, and which is intended for use as a primary habitation, and any appurtenances thereto shall be in compliance with the International Residential Code, as adopted by the Oklahoma Uniform Building Code Commission; 18. "Roofing contractor" means any person, including a subcontractor and nonresident contactor, engaged in the business of commercial or residential roofing contractor work, or who themselves, or through another, attempts to or advertises, holds him or herself out as, or purports to have the capacity to undertake roofing contractor work or offers to engage in or solicits roofing installation-related services, including construction, installation, renovation, remodeling, reroofing, repair, maintenance, alteration, and waterproofing, unless specifically exempted in the Roofing Contractor Registration Act. Roofing contractor shall not mean: a. a person engaged in the demolition of a structure or the cleanup of construction waste and debris that contains roofing material, nor b. a person working under the direct supervision of the roofing contractor who is hired either as an employee, day laborer, or contract laborer whose payment, received in any form, from the roofing contractor is subject to self-employment tax; 19. "Roofing contractor work" means the installation, fabrication or assembly of equipment or systems included in roofing systems as defined in the International Building Code and the International Residential Code, as adopted by the Oklahoma Uniform Building Code Commission, and which codes are hereby adopted and incorporated by reference. Roofing construction work includes, but is not limited to, installation, renovation, remodeling, reroofing, reconstructing, repair, maintenance, improvement, alteration, and waterproofing, unless specifically exempted in the Roofing Contractor Registration Act. a. "Commercial roofing contractor work" means work done on commercial, industrial or public building roofing systems or structures as defined in the International Building Code, as adopted by the Oklahoma Uniform Building Code Commission; except it does not mean buildings used for commercial purposes having equivalent or substantially the same roofing requirements as a "residence" defined herein, including but not limited to business offices converted from a structure that formerly was a residence. b. "Residential roofing contractor work" means work done on roofing systems as defined in the International Residential Code, as adopted by the Oklahoma Uniform Building Code Commission, or as defined as a "residence" herein; except for buildings used for commercial purposes having equivalent or substantially the same roofing requirements as a "residence" defined herein, including but not limited to business offices converted from a structure that formerly was a residence; 20. "Roofing Hearing Board" means the Roofing Hearing Board which shall consist of a designee of the Construction Industries Board, as chair, and the members of the Committee of Roofing Examiners; 21. "Subcontractor" means one who contracts with a prime contractor, general contractor, residential contractor, project manager, property manager, another subcontractor, or another entity for roofing contractor work; 22. "Variance" means the use of an alternative material or method of construction from that prescribed in the International Building Code or the International Residential Code or other approved documents by the Oklahoma Uniform Building Code Commission for use at a particular location or project specified in the variance application; and 23. "Variance and Appeals Board" means the Oklahoma State Roofing Installation Code Variance and Appeals Board. SECTION 2. AMENDATORY 59 O.S. 2011, Section 1151.3 , is amended to read as follows: Section 1151.3. A. Unregistered Activity. All roofing contractors shall be registered annually by the Board. All registrations shall be nontransferable. It is unlawful for any person to act as a roofing contractor without having a current and valid roofing contractor's registration or act as a commercial roofing contractor without a current and valid commercial roofer endorsement issued pursuant to the Roofing Contractor Registration Act, unless the person is exempt under the Roofing Contractor Registration Act. Evidence of securing a permit, including roofing work from a governmental agency or the employment of a person on a roofing project, shall be accepted in any court as prima facie evidence of the existence of a contract. Each copy of a roofing contractor's record, which would include responses to any complaints, that is from and verified by the registrar, or a verified statement from the registrar that there is no record as no application was made, shall be received in all courts in this state as prima facie evidence of the facts stated therein. A verified copy of a roofing contractor's administrative citation for unregistered activity or without required commercial roofer endorsement and order of final disposition from the registrar shall be received in all courts in this state as prima facie evidence of the facts stated therein, including establishment thereby of the first offense. B. A person may not engage or offer to engage in, by advertisement or otherwise, the business nor act in the capacity of a roofing contractor within this state nor may that person bring or maintain any claim, action, suit, or proceeding in any court of this state related to the person's business or capacity as a roofing contractor without a valid registration and commercial roofer endorsement, when required, continuously while performing the work for which the claim, action, suit, or proceeding is sought, as provided in the Roofing Contractor Registration Act. No business entity not otherwise exempted under this act shall advertise or act as a roofing contractor unless a registered roofing contractor, with valid commercial roofer endorsement when required, who is in good standing, is associated with and responsible for all roofing contractor work of such entity, and to do so is a fraudulent activity. B. C. A person who fails to obtain a valid registration and endorsement when required prior to advertising or offering to engage as or acting as a roofing contractor as defined in the Roofing Contractor Registration Act, a person who acts as a roofing contractor while his or her registration is not in good standing or suspended or revoked without complying with the required disclosure and option for homeowner to cancel the contract provisions of subsection I of Section 1151.5 of this title, or a person who violates any provision of the Roofing Contractor Registration Act shall be guilty of a misdemeanor, upon conviction or plea, punishable by a fine not to exceed Five Hundred Dollars ($500.00) for each violation. More than one misdemeanor violation in any twelve-month period shall be grounds for the suspension of the registration, and shall cause the person to be ineligible for registration for a period not to exceed twelve (12) twenty-four (24) months after all requirements of the sentence, or deferment of sentence, and probation have been met, including the payment of any restitution or rehabilitative treatment. D. Any person who has been twice convicted, or pleaded guilty or nolo contendere within the state, of any violation of the Roofing Contractor Registration Act within a ten (10) year period, upon the filing of a third or subsequent violation of the Roofing Contractor Registration Act, shall have any equipment, materials, vehicles, coins or currency, or property used in the violation subject to seizure and forfeiture, pursuant to Section 1738 of Title 21 of the Oklahoma Statutes, within the discretion of the prosecuting authority. E. In lieu of referring complaints of violations of the Roofing Contractor Registration Act to the district attorney for criminal misdemeanor prosecution, the Board in its discretion may issue administrative fines to any person up to Five Hundred Dollars ($500.00) for violations of any provision of the Roofing Contractor Registration Act or its rules or regulations. A person who fails to obtain a valid registration prior to acting as a roofing contractor, as defined in the Roofing Contractor Registration Act, a person who acts as a roofing contractor while his or her registration or commercial roofer endorsement is not in good standing or suspended or revoked without complying with the required disclosure and option for homeowner to cancel the contract provisions of subsection I of Section 1151.5 of this title, on first offense, may be administratively penalized and disciplined after notice and opportunity for hearing before the Roofing Hearing Board. A person who violates any other provision of the Roofing Contractor Registration Act, on first offense within a two-year period, may be administratively penalized and disciplined by the Roofing Hearing Board in its discretion in lieu of referral to the district attorney as a misdemeanor, or the matter may be referred to the district attorney. More than one violation in any twelve-month period shall be grounds for the suspension of the registration, and shall cause the person to be ineligible for registration for a period not to exceed twelve (12) months. Misdemeanor conviction, guilty plea, or nolo contendere plea due to alleged violations of the Roofing Contractor Registration Act shall be grounds for the revocation of the registration and shall cause the person to be ineligible for registration for a period not to exceed twenty-four (24) months after all requirements of the sentence, or deferment of sentence, and probation have been met, including the payment of any restitution or rehabilitative treatment. F. Fines collected pursuant to the Roofing Contractor Registration Act shall be placed in the Roofing Contractor Registration Revolving Fund pursuant to Section 1151.20 of this title. G. It is the duty of the building official or other authority charged with the duty of issuing roofing permits of any incorporated municipality or subdivision of the municipality or county, to refuse to issue a roofing permit for any roofing undertaking which would require a registration pursuant to the Roofing Contractor Registration Act unless the applicant has furnished evidence that he or she is either registered as required or is exempt from the registration requirements of the Roofing Contractor Registration Act. H. The Roofing Hearing Board may make application to the appropriate court for an order enjoining the acts or practices prohibited by the Roofing Contractor Registration Act, and upon a showing by the Roofing Hearing Board that the person or firm has engaged in, or is about to engage in, any of the prohibited acts or practices, an injunction, restraining order or other order as may be appropriate shall be granted by the court. SECTION 3. AMENDATORY 59 O.S. 2011, Section 1151.4 , is amended to read as follows: Section 1151.4. A. The Construction Industries Board is authorized to employ administer the Roofing Contractor Registration Act. In addition to the powers stated in the Construction Industries Board Act, the Board shall have the following powers: 1. Exercise all incidental powers and duties necessary to effectuate the provisions of the Roofing Contractor Registration Act; 2. Promulgate, adopt, amend, suspend and repeal rules as may be reasonably necessary to effectuate the provisions of the Roofing Contractor Registration Act, the proper performance of its duties, and to define categories and limitations for such registration. The rule-making powers of the Construction Industries Board are subject to the Administrative Procedure Act, including those pertaining to emergency or temporary rules or regulations; 3. Promulgate forms to implement the provisions of the Roofing Contractor Registration Act. The Board may administer any provision of this act through use of the Internet or other technology as deemed necessary or appropriate; 4. Issue, refuse to issue, suspend, revoke or deny a registration, or take any other action provided by the requirements of the Roofing Contractor Registration Act; 5. Collect fees, fines and civil penalties pursuant to the Roofing Contractor Registration Act and the promulgated rules; 6. Enter upon public and private property for the purpose of inspecting workers' registrations and roofing work for compliance with the provisions of the Roofing Contractor Registration Act and of the rules of the Board promulgated pursuant thereto; 7. Employ personnel and procure such supplies and equipment as may be necessary to carry out and implement the provisions of this act, subject to budgetary limitations and funding; 8. Investigate complaints, qualifications of qualifying parties or applicants for registration, and any person to the extent necessary to determine if the person is engaged in the violation of the provisions of the Roofing Contractor Registration Act, including unlawful or unregistered activity, whether or not the matter is referred for criminal prosecution. The Construction Industries Board may refer the matter for criminal prosecution, whether or not the person ceases the unlawful and/or unregistered activity; 9. Initiate disciplinary proceedings, request prosecution of and initiate injunctive proceedings against any person who violates any of the provisions of the Roofing Contractor Registration Act or any rule promulgated pursuant to the Roofing Contractor Registration Act; 10. Reprimand or place on probation, or both, any holder of a registration pursuant to the Roofing Contractor Registration Act; 11. Administer oaths, order or subpoena the attendance of witnesses, the inspection of records and premises, and the production of books, records, and papers for the investigation of matters that may come before the Board; 12. Authority to appoint members who shall serve as a code variance and appeals board; 13. Maintain an administrative staff to carry out the responsibilities of the Board and Committee; 14. The registrar shall maintain and provide a complete roster listing the names, last known addresses, and status of all registrants. The registrar may condense or provide an abstract of a roofing contractor's record for public information; provided, a complete record is available for public inspection upon written request; and 15. Upon the advice and recommendation of the Committee, the Board may, in its discretion, enter into a written reciprocity agreement with another state if the requirements for registration in the other state are deemed by the Committee to be substantially the same or equivalent to the requirements for obtaining an original registration in force in this state at the date of such registration, and then issue a registration by reciprocity to a qualified party applicant who is currently licensed or registered to engage in roofing contractor work in another state that has entered into a written reciprocity agreement with the Board. The Construction Industries Board may promulgate forms to implement the provisions of this act. The Construction Industries Board may administer any provision of this act through use of the Internet or other technology as deemed necessary or appropriate. SECTION 4. AMENDATORY 59 O.S. 2011, Section 1151.5 , is amended to read as follows: Section 1151.5. A. Applications for registration shall be made to the Construction Industries Board in writing on forms approved and provided by the Board and shall be accompanied by the proper fee. B. An applicant or qualifying party whose registration is denied, or the person has a conviction, or pled guilty or nolo contendere to a misdemeanor or felony, or otherwise fails to meet the requirements of application, may obtain a hearing before the Committee of Roofing Examiners in order to provide information in support of the application requirements and any other information showing the applicant's ability and willingness to comply with the requirements of the Roofing Contractor Registration Act, and to protect the public health, safety and welfare. C. To obtain a roofing contractor registration under the Roofing Contractor Registration Act, an applicant a qualifying party who is eighteen (18) years of age or older shall submit, on forms the registrar prescribes, an: 1. An application under oath containing a statement: a. of the applicant's qualifying party's experience and qualifications as a roofing contractor, if any, the applicant's b. that the qualifying party desires the issuance of a roofing contractor registration certificate, c. that the qualifying party has read the Roofing Contractor Registration Act and will comply with the provisions of the Roofing Contractor Registration Act and rules, d. that the qualifying party will comply with state laws and local ordinances relating to standards and permits, e. that the qualifying party has or has not been registered or licensed as a roofing contractor in another state and whether any disciplinary action has been taken against such registration or license and whether it is currently in good standing, and f. that the nonresident qualifying party appoints the Secretary of State as legal service agent for all lawful process to be served upon the applicant for work performed in this state or as otherwise provided in the Roofing Contractor Registration Act; 2. The qualifying party's name, physical address, business name, telephone number, and address and place of incorporation, if different, information on any other person who will be authorized to act as the business entity, and the applicant's phone number. , if different; 3. The entity's Federal tax ID number, or the employer's or owner's or qualifying party's social security number. The employer's account number assigned by the Employment Security Commission. The social security number information shall remain with the registrar as confidential and privileged except for necessary disclosures to state agencies to verify compliance with requirements with this act, or upon request by law enforcement; and 4. A copy of the roofing contractor's certificate of liability insurance shall be filed with the application and shall be not less than Five Hundred Thousand Dollars ($500,000.00) for residential roofing contractor work and shall not be less than One Million Dollars ($1,000,000.00) for commercial roofing contractor work. Any insurance company issuing a liability policy to a roofing contractor pursuant to the provisions of the Roofing Contractor Registration Act shall be required to notify the Construction Industries Board in the event such liability policy is cancelled for any reason or lapses for nonpayment of premiums. All registrations granted under the Roofing Contractor Registration Act shall be suspended on the date of the policy cancellation. The registrar must receive proof of insurance prior to restoring the registration. In addition, the roofing contractor shall submit proof that the contractor has secured workers' compensation coverage satisfactory under the Workers' Compensation Act, or an affidavit of exemption or self-insurance as authorized pursuant to the Workers' Compensation Act. If the registrar deems it appropriate or necessary, the registrar may also require other information to be included on the application form to assist the registrar in registering the person as a contractor. The application shall contain statements that the applicant desires the issuance of a roofing contractor registration certificate; that the applicant will comply with the provisions of the Roofing Contractor Registration Act; that the applicant will comply with state laws and local ordinances relating to standards and permits; that the applicant has or has not been registered or licensed as a roofing contractor in another state and whether any disciplinary action was taken against such registration or license or whether it is still in good standing; and that the nonresident applicant appoints the Secretary of State as legal service agent for all lawful process to be served upon the applicant for work performed in this state or as otherwise provided in the Roofing Contractor Registration Act. B. D. The qualifying party applying for a commercial roofer endorsement must provide information on the legal entity, including but not limited to the articles, organizational agreements or documents establishing the legal entity, including a list of the officers, members, managers, partners, or other managing agents of the legal entity. E. The registrar shall refuse to register any person if the registrar determines: 1. The application contains false, misleading, or incomplete information; 2. The applicant, qualifying party, or any member of the legal entity fails or refuses to provide any information requested by the registrar; 3. The applicant fails or refuses to pay the required fees; 4. The applicant, qualifying party, or owner or officer or managing member of the legal entity is ineligible for registration due to a suspended or revoked registration in this state; 5. The nonresident applicant has a revoked or suspended registration or license required by law for roofing contractors in another state; or 6. The applicant, qualifying party, or legal entity has failed or refuses to submit any taxes due in this state. C. F. The registrar shall notify the applicant in writing if the registrar denies a registration or renewal certificate, and shall provide the applicant an opportunity to respond to or cure any defect in the written application or renewal for a period of ten (10) days from the date of the written notification. An applicant aggrieved by a decision of the registrar denying a registration or renewal may appeal the decision as provided in the Roofing Contractor Registration Act, the Construction Industries Board Act, or the Administrative Procedures Act, or the applicant may reapply after a ninety-day waiting period, if otherwise eligible under the provisions of the Roofing Contractor Registration Act. The application and renewal fees shall not be refundable. D. G. The registrar shall classify as not in good standing the registration of any roofing contractor who fails to: 1. Maintain liability insurance coverage; 2. Maintain workers' compensation coverage satisfactory under the Workers' Compensation Act, or provide an affidavit of exemption or self-insurance as authorized pursuant to the Workers' Compensation Act; 3. File, renew, or properly amend any fictitious name certificate; 4. Maintain an active status of a corporation or registration as a foreign corporation, a limited liability company or registration as a foreign limited liability company, a limited liability partnership registration or foreign limited liability partnership registration, or a limited partnership certificate or limited partnership or foreign limited partnership certificate of authority, with the Office of the Secretary of State; 5. File or renew a trade name registration; 6. Maintain or renew a roofing contractor registration as provided in the Roofing Contractor Registration Act; 7. Notify the registrar of a change in name, address, legal business entity, qualifying party, legal service agent, or adjudication by a court of competent jurisdiction for any act or omission specified in subsection A of Section 1151.14 of this title or a violation of the Roofing Contractor Registration Act; 8. Maintain a registration as required by law in another state while registered in this state as a nonresident roofing contractor; or 9. File and pay all taxes of the qualifying party and legal entity when due in this state. E. H. The registrar shall send a written notice to the person qualifying party when his or her registration is not in good standing. I. Any roofing contractor who has been notified by the registrar that his or her registration is not in good standing shall cease soliciting or entering new roofing services and projects as of the date of such notification; however, the roofing contractor shall be allowed to complete roofing projects where actual physical work has begun prior to the date of issuance of the notice that his or her registration is not in good standing. The roofing contractor must disclose the change in standing to any homeowner or other person who has an interest in any job covered under the Roofing Contractor Registration Act. Upon notice of a change in standing, the homeowner shall have the option to cancel the contract. The roofing contractor will be owed the actual cost incurred for materials and the market value of labor already incurred on the job. The roofing contractor must obtain an updated authorization from the homeowner and other parties of interest if there is an agreement to continue the job as originally negotiated. If the roofing contractor fails to correct the deficiency specified in the notice by evidence satisfactory to the registrar within thirty (30) days of the date of the notice, or if the roofing contractor solicits or enters into new roofing services contracts or projects while the roofing contractor's registration is not in good standing, or while such registration is suspended or revoked, the roofing contractor shall be in violation of the provisions of the Roofing Contractor Registration Act. J. Any registration that remains not in good standing for a sixty-day period shall be suspended on the sixtieth day from the date of issuance of the notice to the roofing contractor that his or her registration is not in good standing. Any registration the remains not in good standing, and is suspended for such cause, shall be revoked on the ninetieth day from the date of issuance of the notice to the roofing contractor that his or her registration is not in good standing. The registrar shall notify the roofing contractor upon suspension or revocation of his or her registration for failure to comply in bringing such registration into good standing as required by law. The roofing contractor may reinstate his or her registration to good standing by paying the required fees provided in Section 1151.12 of this title and complying with all other requirements for issuance of a registration in good standing. K. Any person registrant, qualifying party, or roofing company owner aggrieved by the decision of the registrar to suspend or revoke a registration pursuant to this section may appeal such decision as provided in this act or the Administrative Procedures Act. SECTION 5. AMENDATORY 59 O.S. 2011, Section 1151.7 , is amended to read as follows: Section 1151.7. The holder of a roofing contractor registration certificate is entitled to engage in the roofing business within this state pursuant to the provisions of the Roofing Contractor Registration Act, and subject to the following limitations: 1. A roofing contractor's registration certificate number shall be valid and in good standing at the time of soliciting a project and during subsequent job performance; 2. Each roofing contractor issued a roofing contractor registration shall display the roofing firm name and the roofing contractor registration number bearing the initials "OK" preceding that registration number issued by the registrar on all vehicles used to transport materials and tools in the operation of the business. Such names, endorsements and numbers shall be printed in letters and numerals at least two (2) inches in height in a conspicuous location on both sides of each vehicle in contrasting color to the background color. 3. Each roofing contractor issued a commercial roofer endorsement shall display the roofing firm name and the information that the roofing contractor has a commercial roofer endorsement issued by the registrar on all vehicles used to transport materials and tools in the operation of the business. Such endorsement information shall be in print size that is at least two (2) inches in height in a conspicuous location on both sides of each vehicle in contrasting color to the background color. 4. Each registrant shall post in a conspicuous place on the job site the name, existence of any endorsement, registration number, and telephone number for the registration under which any work is being performed, and on all media containing the registrant's name, including but not limited to magnetic signs on vehicles, business cards, contracts, bids, letterhead, signs, and advertisements. 5. A roofing contractor's registration certificate number shall be submitted when applying for any permit issued by the state, or any of its political subdivisions, for commercial or residential roofing services or projects, if a permit is required by such authority, and shall be written upon each permit issued. Provided, however, no permitting authority shall require a roofing contractor registration certificate as a condition to issuing a permit when registration is exempt pursuant to Section 1151.9 of this title; 3. 6. A roofing contractor's registration certificate cannot be shared or used by any other individual or business entity; provided, however, a business firm, partnership, association, corporation, limited liability company, or other group or combination thereof acting as a unit may be granted a single roofing registration certificate number for use by designated roofing contractors acting as agents for the business entity when the application for registration contained sufficient information on each member, partner, officer and agent and the registrar issued a single certificate number to such persons as a business unit; 4. 7. Upon any change to the name, address, business entity, qualifying party, change in firm ownership of fifty percent (50%) or more of the stock or beneficial interest in the company, or legal service agent of a roofing contractor or upon adjudication by a court of competent jurisdiction for a violation of the Roofing Contractor Registration Act or an act or omission specified in subsection A of Section 1151.14 of this title, the registrar shall be notified in writing within ten (10) days. Any proposed or final order or notice of hearing to the last known address of record shall be considered delivered when deposited in the United States mail and/or sent registered or certified or post office receipt secured. Any other communication to the last known address or record of a registrant shall be considered delivered when deposited in the United States mail, regular mail; 5. 8. A roofing contractor shall comply with state laws and local ordinances relating to standards and permits for roofing services and projects; and 6. 9. A roofing contractor must pay taxes due in this state; 10. Each registrant shall notify the registrar within ten (10) days after he or she receives notice that any criminal conviction has been rendered against him or her or the registrant or qualifying party has pled guilty or nolo contendere to a misdemeanor or felony. The notification shall be in writing, by certified mail, and shall include a copy of the conviction, plea, or judgment and sentence; 11. Each registrant shall notify the registrar immediately upon receipt of an order imposing disciplinary action upon its registration issued by any other professional regulatory board, in this or any other jurisdiction. Disciplinary action taken against any other professional registration or license held by the registrant in this jurisdiction or any other jurisdiction is grounds for disciplinary action against the registration issued pursuant to the Roofing Contractor Registration Act; and 12. Each registrant shall utilize a valid written contract when engaging in the business of roofing contractor work. The contract shall contain the requirements described in Section 1151.21 of this title. Committing fraud when executing or materially altering a roofing contract, mortgage, promissory note or other document incidental to performing roofing contractor work, is a violation of the Roofing Contractor Registration Act. SECTION 6. AMENDATORY 59 O.S. 2011, Section 1151.8 , is amended to read as follows: Section 1151.8. A. At the time of making application for a roofing contractor registration certificate pursuant to the Roofing Contractor Registration Act, the applicant shall pay to the registrar a fee of Seventy-five Dollars ($75.00) for the annual registration certificate. B. All monies collected by the registrar for roofing contractor registration applications, renewals and other fee assessments shall be deposited by the registrar and credited to the Roofing Contractor Registration Revolving Fund and such funds shall be used by the registrar to implement and administer the provisions of the Roofing Contractor Registration Act. C. The fee to be submitted with an application for a roofing contractor registration may be prorated as set by the provisions of the Roofing Contractor Registration Act or rules. Unless prorated at the time of initial registration, fees for initial registration shall be paid in the amount stated in subsection A of this section and such registration certificates shall expire June 30 each year on the last day of the birth month of the qualifying party. Renewals will be prorated as provided in Section 1151.3 of this title. D. A renewal fee for a roofing contractor registration shall be Seventy-five Dollars ($75.00) for the annual renewal registration certificate. E. Any person having registered prior to July 15, 2011, shall be entitled to a fee refund for any amount paid in excess of the fee stated in subsection A of this section. The registrar shall make the fee refund on the date of expiration of the current registration period for which the fee charged was in excess of the amount stated in subsection A of this section. SECTION 7. AMENDATORY 59 O.S. 2011, Section 1151.9 , is amended to read as follows: Section 1151.9. A. Any administrative or governing body with authority to enter into public contracts shall require individual roofing contractor registration for purposes of such persons submitting or entering into any bid or contract involving roofing contractor work. B. The Roofing Contractor Registration Act does not apply to: 1. An actual owner of residential or farm property who physically performs, or has family member, employee or employees who perform with or without remuneration, roofing services including, construction, installation, renovation, repair, maintenance, alteration, waterproofing, or removal of materials or structures on property owned by such person; 2. Any authorized employee, representative or representatives of the United States Government, the State of Oklahoma, or any county, municipality, or other political subdivision of this state; 3. Any person who furnishes any fabricated or finished product, material, or article of merchandise which is not incorporated into or attached to real property by such person so as to become affixed thereto; or 4. Churches Any person including churches or other charitable entities that provide roof repairs or replacements at no charge using volunteer labor; 5. Any employee of a registrant who does not hold himself or herself out for hire, advertise, or engage in contracting, except as an employee of a registrant; 6. Licensed engineers, licensed architects, licensed HVAC and any other person licensed by the jurisdiction, operating under the purview and within the scope of their respective license; 7. A person who only furnishes roofing materials, roofing supplies or equipment and does not, nor do the person's employees, install or fabricate them into or consume them in the performance of the work of the roofing contractor; 8. Prime contractors, general contractors, property managers and project managers who bid on construction trade work in areas additional to roofing contractor work, and subcontract the roofing contractor work as long as they subcontract the roofing work to a currently registered roofing contractor who is in good standing; if the bid is solely for roofing contractor work, then a registration is required; 9. Owners of commercial properties including residential rental properties consisting of four (4) dwelling units or less, when acting as their own roofing contractor and providing all material supervision themselves, lessees of residential properties with the consent of the owner, who, whether themselves or with their own employees, perform roofing construction in or upon the properties, all installing roofing materials according to the International Building Code, as adopted by the Oklahoma Uniform Building Code Commission, or the manufacturer's installation instructions; or 10. Owners of property when acting as their own roofing contractor, providing all material supervision themselves, and installing roofing materials according to the International Residential Code, as adopted by the Oklahoma Uniform Building Code Commission, or the manufacturer's installation instructions when building or improving a single family dwelling residence on such property for the occupancy of such owners and not intended for sale or rent. In any action brought under the Roofing Contractor Registration Act, proof of the sale or offering for sale of such structure or the renting or offering to rent of such structure by the owners of property within one (1) year after substantial completion of the structure when the structure can be occupied and used as intended but punch list items may remain, is presumptive evidence that the construction was undertaken with the intent of sale or rent. B. Any administrative or governing body with authority to enter into public contracts shall require individual roofing contractor registration for purposes of such persons submitting or entering into any bid or contract. SECTION 8. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 1151.2a of Title 59, unless there is created a duplication in numbering, reads as follows: A. The Construction Industries Board is authorized to administer and enforce the Roofing Contractor Registration Act. B. The Construction Industries Board is authorized to administer and enforce the commercial roofer endorsement provisions of the Roofing Contractor Registration Act. 1. The Construction Industries Board shall have the authority to administer and enforce the provisions of the commercial roofer endorsement provisions of the Roofing Contractor Registration Act, including the authority to: a. establish the examination and continuing education requirements and procedures for endorsements of persons desiring or intending to engage in the business or trade of a commercial roofing contractor with the advice and input from the Committee of Roofing Examiners using assistance from a third party vendor as necessary and appropriate, b. establish and enforce the minimum standards of commercial roofer endorsements in this state and rules promulgated pursuant to the commercial roofer endorsement provisions of the Roofing Contractor Registration Act with the advice and input from the Committee of Roofing Examiners, c. promulgate, prescribe, amend, and repeal rules necessary to implement the provisions of the commercial roofer endorsement of the Roofing Contractor Registration Act with the advice and input from the Committee of Roofing Examiners, d. issue, renew, suspend, revoke, modify or deny endorsements to engage in commercial roofing contractor work pursuant to the Roofing Contractor Registration Act, e. conduct investigations for the purpose of inspecting commercial roofer endorsements for compliance with the commercial roofer endorsement provisions of the Roofing Contractor Registration Act, and of the rules of the Board promulgated pursuant thereto, into the qualifications of applicants and allegations of violations, f. establish and levy administrative fines against any person who violates any of the provisions of the commercial roofer endorsement standards of the Roofing Contractor Registration Act or any rule promulgated pursuant thereto, not to exceed Five Hundred Dollars ($500.00) per job contract on first offense, One Thousand Dollars ($1,000.00) per job contract on second or subsequent offense, g. initiate disciplinary proceedings and provide hearings on any person who violates any of the provisions of the commercial roofer endorsement standards of the Roofing Contractor Registration Act or any rule promulgated pursuant thereto, h. request prosecution of and initiate injunctive proceedings against any person who violates any of the provisions of the commercial roofers endorsement in the Roofing Contractor Registration Act or any rule promulgated pursuant to the commercial roofer endorsement of the Roofing Contractor Registration Act, and i. exercise all incidental powers as necessary and proper to implement and enforce the provisions of the commercial roofer endorsement of the Roofing Contractor Registration Act and the rules promulgated pursuant thereto. SECTION 9. AMENDATORY 59 O.S. 2011, Section 1151.10 , is amended to read as follows: Section 1151.10. A. Within twenty-five (25) calendar days from the date of application, the registrar shall either issue or deny the roofing contractor registration. No registration shall be issued to an applicant a qualifying party until the registrar receives all documentation and fees necessary to obtain a registration certificate in good standing. The registration certificate issued on an original application entitles the person to act as a roofing contractor within this state, subject to the limitations of this act, until the expiration of the then current fiscal year ending June 30, except that an initial registration issued in May or June is valid until June 30 of the subsequent year. On the effective date of this act, a prorated registration certificate issued between January 1, 2011, and April 30, 2011, shall be valid until June 30, 2011 the Roofing Contractor Registration Act. Until January 1, 2015, all registrations shall expire on June 30 of each year and may be renewed from year to year. Beginning no later than January 1, 2015, all registrations issued shall be renewed based on staggered expiration dates of the last day of the birth month of the qualifying party so that all registrations and endorsements shall expire on the last day in the birth month of the qualifying party. The Construction Industries Board is authorized to prorate registration and renewal fees, as described by rule, so that beginning January 1, 2015, or thirty (30) days after rules have been approved, fees for renewals previously due by June 30, 2015, are prorated and converted to be due the last day of the birth month of the qualifying party by shortening or lengthening the next renewal date by up to six (6) months. Beginning the effective date of this act, new initial registrations and endorsements will be issued for up to eighteen (18) months and due for renewal the last day of the birth month of the qualifying party. After initial proration or conversion to birth month, no subsequent registration or endorsement shall be issued for longer than one (1) year and all endorsements shall expire on the last day in the birth month of the qualifying party. The Construction Industries Board shall implement rules for the scheduling of expiration and renewal of registrations and endorsements, including the prorating of fees and the identification and information of the qualifying party. The commercial roofer endorsement shall expire on the expiration date of the supporting registration. B. An applicant or qualifying party whose registration or endorsement is refused or denied by the registrar may obtain a hearing before the Committee of Roofing Examiners with written notice to the registrar of the grounds for appeal and identification of evidence to be presented in support of the application requirements and any other information showing the applicant's ability and willingness to comply with the requirements of the act, and to protect the public health, safety and welfare. Such appeals to the Committee of Roofing Examiners shall be made by the qualifying party in writing to the registrar within fourteen (14) days from the date of the written notification of denial or refusal to register or endorse. C. The Construction Industries Board shall issue a commercial roofer endorsement to any person who: 1. Has been certified by the Committee of Roofing Examiners as having successfully passed the appropriate examination; and 2. Has paid the application and endorsement fee and has otherwise complied with all of the provisions of the commercial roofer endorsement of the Roofing Contractor Registration Act. The endorsement fee is hereby established as Three Hundred Dollars ($300.00) for the endorsement, along with a thirty-dollar endorsement application fee, and Two Hundred Dollars ($200.00) for an endorsement renewal. Endorsements renewed more than thirty (30) days following the date of expiration may only be renewed upon application and payment of the required fees and payment of late renewal fee in the amount of One Hundred Dollars ($100.00). No endorsement shall be renewed unless the licensee has completed the required hours of continuing education, recommended by the Committee, and set forth by rule. No late fee shall be charged to renew a registration or endorsement which expired while the applicant was in active military service, if application for renewal is made within one (1) year of discharge from active duty status. SECTION 10. AMENDATORY 59 O.S. 2011, Section 1151.12 , is amended to read as follows: Section 1151.12. A. Any roofing contractor registration certificate issued under this act the Roofing Contractor Registration Act may be renewed for each successive fiscal year by obtaining from the registrar a certificate of renewal. To obtain a certificate of renewal, the person qualifying party shall file with the registrar a renewal application by June 30 the last day of the birth month of the qualifying party each successive year, provide any qualifying party information required under the Roofing Contractor Registration Act, Section 1151.5, not previously provided by the applicant, if any, and pay the renewal fee. The application for renewal shall require statements under oath that the applicant has qualifying party and legal entity have properly submitted income and employment taxes due in this state; whether or not the applicant qualifying party has been convicted of any felony offense, and the nature of such offense, since issuance of the prior registration; and whether or not the applicant qualifying party has been adjudicated by a court of competent jurisdiction for any violation of this act the Roofing Contractor Registration Act or any act or omission specified in subsection A of Section 14 1151.14 of this act title. The registrar may forward a copy of any information in an application for renewal to the Oklahoma Tax Commission and any other state agency. B. The applicant qualifying party shall include with the renewal application a copy of the certificate of liability insurance, unless the registrar has a current valid certificate of insurance on file, proof of workers' compensation coverage, unless exempt under the Workers' Compensation Act, and, if applicable, a copy of the current registration certificate required by law for roofing contractors. The renewal application need not shall be notarized. B. C. The registrar shall refuse to renew a roofing contractor's registration certificate for any reason stated in subsection B of Section 5 1151.5 of this act title or for failing to provide any qualifying party information required under the Roofing Contractor Registration Act not previously provided by the applicant. The registrar shall notify the applicant in writing if the registrar denies the renewal as provided in subsection C of Section 5 1151.5 of this act title. C. D. If any roofing contractor fails to file a renewal application by the June 30 deadline of the last day of the birth month of the qualifying party, that contractor's registration shall be not in good standing. A roofing contractor has a thirty-day grace period after June 30 the last day of the birth month of the qualifying party to renew the registration certificate without a late fee. The late fee shall be set by the registrar and such fee shall not exceed One Hundred Dollars ($100.00). A roofing contractor registration certificate not renewed by August 30 within sixty (60) days of the last day of the birth month of the qualifying party shall be suspended for failure to renew, and on January 1, if a roofing contractor's registration certificate still has not been renewed within six (6) months of expiration, it shall be revoked for failure to renew. D. E. 1. A roofing contractor desiring to renew a registration certificate that has been suspended for any cause provided in this act shall be assessed a fee equal to twice the amount of the fee established by subsection D of Section 8 1151.8 of this act title. 2. The registrar shall assess a reinstatement fee not exceeding Three Hundred Dollars ($300.00) to be set by the registrar plus the fee established by Section 8 1151.8 of this act title for any registration that has been revoked for any cause provided in this act the Roofing Contractor Registration Act. 3. A roofing contractor submitting an application for registration after suspension or revocation of that contractor's registration certificate must be otherwise eligible for registration under this act the Roofing Contractor Registration Act. E. F. The registrar shall include a registration status notation in a roofing contractor's record if the status of registration changes from an active and valid registration to not in good standing, denied, suspended or revoked. SECTION 11. AMENDATORY 59 O.S. 2011, Section 1151.14 , is amended to read as follows: Section 1151.14. A. Any person may file a written duly verified complaint with the registrar alleging that the a person has committed any of the following acts or omissions: 1. Abandonment of a roofing contract without legal excuse after a deposit of money or other consideration has been paid; 2. Diversion of funds or property entrusted to a roofing contractor; 3. Engaging in any fraudulent or deceptive acts or practices or misrepresentation of products, services or qualifications as a roofing contractor; 4. Making a false or misleading statement in an application for roofing contractor registration or renewal application or in soliciting a contract for roofing services; 5. Adjudication against the roofing contractor by a court of competent jurisdiction for a violation of the provisions of this act the Roofing Contractor Registration Act, or a license or registration suspended, revoked or other discipline imposed by any other professional regulatory board in this or any other jurisdiction; 6. Engaging in or offering to engage in work without a valid registration and commercial roofer endorsement as required for roofing contractors pursuant to this act the Roofing Contractor Registration Act or performing roofing services during any period when the roofing contractor's registration is denied, suspended or revoked; 7. Engaging in or offering to engage in roofing services without obtaining a proper permit as may be required by any state or local authority; 8. Failure to comply with any tax laws authorized by the state or any of its political subdivisions; 9. Damaging or injuring persons or property while performing roofing services under a valid roofing contractor registration for which the roofing contractor's liability insurance or workers compensation coverage was inadequate; or 10. Failure to display the roofing firm name, existence of any commercial roofer endorsement, if any, and the roofing contractor registration number on all vehicles used to transport materials and tools in the operation of the business in letters and numerals at least two (2) inches in height in a conspicuous location on both sides of each vehicle in contrasting color to the background color; 11. Failure to post in a conspicuous place on each job site the name, existence of any commercial roofer endorsement, registration number, and telephone number for the registration under which any work is being performed; 12. Engaging in or offering to engage in roofing contractor work using a roofing registration number of another registrant, whether the registration is or is not in good standing; 13. Advertising, either directly or through another, for roofing contractor work without a valid, continuing registration, or without displaying registration number on advertisement, including but not limited to contracts and signage on vehicles; 14. Soliciting roofing contractor work through contracts obtained by salespersons not under the direct supervision and employment of a registered roofing contractor when such contract is then sold for remuneration or something of value and consists of a pattern of conduct that can be shown to be a business practice in a secondary market of sales of contracts for profit; 15. Gross defects in workmanship or materials in a roofing contractor project that risks serious harm or injury to a person, or unjustly causes monetary damages in excess of Ten Thousand Dollars ($10,000.00) and are so far below the industry standards that it shocks the conscience and is against public policy; or 16. Failure to comply with a specified provision of this act the Roofing Contractor Registration Act. B. The complaint shall be on a form approved by the registrar and shall set forth the alleged act or omission stated in subsection A of this section, and a statement of sufficient facts upon which a reasonable person could conclude that the act or omission specified in subsection A of this section has been committed. All complaints filed with the registrar shall be open to public inspection. Nothing in this section shall be construed to require the complainant to first file a complaint with the registrar before seeking relief or remedies allowed by law. C. A complaint received by the registrar as provided in this section shall may be retained by the Board for investigation, citation, and hearing before the Roofing Hearing Board or, in the Board's discretion, the complaint may be referred to the district attorney for appropriate disposition as determined by the district attorney, in his or her discretion. SECTION 12. AMENDATORY 59 O.S. 2011, Section 1151.15 , is amended to read as follows: Section 1151.15. A. The Board is authorized to investigate any written complaint received pursuant to the Roofing Contractor Registration Act, including any person to the extent necessary to determine if the person is engaged in violations of the provisions of the Roofing Contractor Registration Act, including unlawful activity of the practice of contracting for roofing work without a valid registration, whether the matter is prosecuted administratively through the Roofing Hearing Board or referred for criminal prosecution. The Board may refer the matter for prosecution whether or not the person ceases the unlawful practice of contracting for roofing work without a valid registration. B. Service of the notice of violation or citation may be in person or by certified mail at the last known business address or residence address of the person cited. C. A notice of violation and citation may contain a cease and desist order for residential roofing contractor work if the homeowner has been provided the required disclosure and has exercised the homeowner's option to cancel the contract as provided in subsection I of Section 1151.5 of this title, or at any time during commercial roofing contractor work. D. The registrar shall read each complaint received and shall enter a notation in the individual roofing contractor's record showing the date that the verified complaint was received and the nature of the complaint. The registrar shall notify the roofing contractor against whom the complaint is made, in writing, within five (5) days of the receipt of the written complaint. The roofing contractor shall have ten (10) days to respond, in writing, to the registrar. If a response to the complaint is received by the registrar, whether admitting or denying the basis of the complaint, a copy of both the complaint and the response shall be referred sent to the district attorney, along with the results of any investigation by the Board, if the Board does not retain the matter and refers the complaint to the district attorney. If no response is received, the complaint shall may still be referred to the district attorney, along with the results of any investigation by the Board. The Board or a Committee member is authorized to assist in any investigation of a roofing complaint referred to the district attorney if requested by the district attorney. In addition, the registrar shall enter a notation in the individual roofing contractor's record showing the date that the roofing contractor's response was received, if any, and whether the response admitted or denied the basis of the complaint. B. E. Following referral of a complaint to the district attorney, if the roofing contractor is adjudicated by the court for an act or omission specified in subsection A of Section 14 1151.14 of this act title, or upon a conviction for any violation of the provisions of this act the Roofing Contractor Registration Act, the registrar, when ordered by the court, shall suspend, revoke or deny the roofing contractor's registration for the period of time specified by the court, and if the court orders the registration suspended, revoked or denied, and yet fails to set the term of such suspension, revocation or denial, the period shall be six (6) months. C. F. The registrar shall not renew, reinstate, or issue a new roofing contractor registration to any person subject to any term of denial, suspension or revocation until such term has been completed, and thereafter, the person makes application and pays required fees pursuant to Sections 8 1151.8 and 12 1151.12 of this act title. D. G. It shall be unlawful for a person to obtain or attempt to obtain a roofing contractor registration certificate under any other name during any period when the roofing contractor's registration is suspended or revoked. Upon conviction of a violation of this subsection, the person shall be guilty of a misdemeanor as provided in Section 3 1151.3 of this act title. A business firm, partnership, association, corporation, limited liability company, or other group or combination thereof acting as a unit whose registration certificate is suspended or revoked includes all of the members, partners, officers, and agents acting under that roofing contractor registration certificate when such persons are specified on and did sign the application or renewal form. SECTION 13. AMENDATORY 59 O.S. 2011, Section 1151.17 , is amended to read as follows: Section 1151.17. A. When applying for any permit required by the state or any of its political subdivisions for roofing services or jobs, a roofing contractor shall supply the permit-issuing official that roofing contractor's registration certificate number issued pursuant to this act the Roofing Contractor Registration Act. That official shall enter a roofing contractor's registration number on the permit. The registrar shall not may investigate any roofing project for purposes of verifying roofing contractor registration or permit verification. B. A person performing as a roofing contractor on his or her own property, although exempt from the registration requirements of this act the Roofing Contractor Registration Act, shall, when applying for a permit required for the project, supply the permit-issuing official any roofing contractor registration number, as soon as available, of each roofing subcontractor engaged in roofing services and doing work covered by the permit, if any. That official shall enter each roofing contractor registration number so supplied before inspection of the job. C. A roofing contractor shall display his or her roofing contractor registration number issued pursuant to this act the Roofing Contractor Registration Act on each commercial vehicle used for roofing services and upon every business sign, card, correspondence, and contract used to solicit and conduct roofing services in this state and shall display the roofing firm name, existence of any commercial roofer endorsement, and the roofing contractor registration number bearing the initials "OK" preceding that registration number issued by the registrar on all vehicles used to transport materials and tools in the operation of the business. Such names, endorsements, and numbers shall be printed in letters and numerals at least two (2) inches in height in a conspicuous location on both sides of each vehicle in contrasting color to the background color. D. Each registrant shall post in a conspicuous place on each job site the name, existence of any commercial roofer endorsement, registration number, and telephone number for the registration under which any work is being performed, and on all media containing the registrant's name, including but not limited to magnetic signs on vehicles, business cards, contracts, bids, letterhead, signs, and advertisements. SECTION 14. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 1151.25 of Title 59, unless there is created a duplication in numbering, reads as follows: A. Except as otherwise provided in the Roofing Contractor Registration Act, on and after July 1, 2015, every roofing contractor offering to engage in or engaging in performing commercial roofing contractor work in this state shall be required to take and successfully pass a commercial roofing examination approved under the provisions of this act, and be in compliance with all other provisions of the act and rules thereof before acting or being endorsed as a commercial roofing contractor. B. Examinations for a commercial roofer endorsement shall be uniform and practical in nature and sufficiently strict to test the qualifications and fitness of the applicants for endorsement. Examinations shall be in whole or in part in writing. Examinations shall be offered at least monthly; dates, times and locations are to be determined by the registrar or third party vendor with approval of the registrar. C. Any applicant initially failing to pass the examination shall not be permitted to take another examination for a period of thirty (30) days. Any applicant subsequently failing to pass the examination shall not be permitted to take another examination for a period of ninety (90) days. However, in a declared state of emergency, the examination shall be available as often as possible as determined by the registrar. D. No commercial roofer endorsement shall be renewed unless the qualifying party has completed the required hours of continuing education, as determined and approved by the Committee of Roofing Examiners and the Construction Industries Board. SECTION 15. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 1151.26 of Title 59, unless there is created a duplication in numbering, reads as follows: A. There is hereby established the Committee of Roofing Examiners, which shall consist of seven (7) members. All members shall be legal residents of the United States and shall be residents of this state. Members shall hold office for terms of two (2) years or until their successors have been appointed and qualified. B. Members of the Committee shall be appointed as follows: 1. One member shall be appointed by the Governor and shall be a licensed architect with a minimum of five (5) years' experience in commercial roof design. This member shall be selected from a list of at least three qualified and eligible architects submitted by a state organization representing architects; 2. One member shall be appointed by the Governor and shall be a licensed engineer with a minimum of five (5) years' experience in commercial roof design. This member shall be selected from a list of at least three qualified and eligible engineers submitted by a state organization representing engineers; 3. Two members shall be appointed by the President Pro Tempore of the Senate and shall be registered roofing contractors with a valid commercial roofer endorsement, except for the initial appointees who shall be otherwise qualified to hold a commercial roofer endorsement, each who work primarily in commercial roofing contractor work with a minimum of five (5) years' actual job experience in commercial roofing contractor work in this state and who are registered pursuant to the Roofing Contractor Registration Act, and otherwise meet all requirements for endorsement in this act; 4. Two members shall be appointed by the Speaker of the House of Representatives and shall be registered roofing contractors, each who work primarily in residential roofing contractor work with a minimum of five (5) years' actual job experience in residential roofing contractor work in this state and who are registered pursuant to the Roofing Contractor Registration Act, and otherwise meet all requirements for endorsement in this act; and 5. One member shall be appointed by the Construction Industries Board and shall be a licensed or certified building and construction inspector who is a member of a statewide organization representing certified building inspectors with a minimum of five (5) years' actual job experience in building code inspections. This member shall be selected from a list of at least three qualified and eligible inspectors submitted by a state organization representing inspectors. C. Any vacancy on the Committee shall be filled for the unexpired term as soon as possible in the manner in which that position was originally filled. Members shall continue in office until a successor is appointed by the appointing authority. The appointing authority shall fill all vacancies and unexpired terms in the same manner as the original appointment of the member whose position is to be filled. Such members may be removed by the appointing authority at any time. D. A majority of the Committee shall constitute a quorum for the transaction of business, and the Committee shall elect a chair from its number. Each member shall receive reimbursement for travel expenses in accordance with the provisions of the State Travel Reimbursement Act. The Committee shall meet at least quarterly, and special meetings may be called by the Committee chair or the Board. SECTION 16. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 1151.27 of Title 59, unless there is created a duplication in numbering, reads as follows: The Committee of Roofing Examiners shall: 1. Assist and advise the Construction Industries Board on all matters relating to the formation of rules and standards in accordance with the provisions of the Roofing Contractor Registration Act and the provisions of the commercial roofer endorsement of the Roofing Contractor Registration Act; 2. Assist and advise the Board in prescribing and adopting forms for registration and endorsement applications; 3. Assist and advise the Board on the examinations for applicants for a commercial roofer endorsement of the Roofing Contractor Registration Act and rules thereof, and on all matters relating to the commercial roofer endorsement of the Act; 4. Assist and advise the Board on establishment of standards and procedures for continuing education requirements for a commercial roofer endorsement and procedures for all matters pertaining to the formation of rules; 5. Approve applications for continuing education classes or credits for a commercial roofer endorsement, and assist and advise the Board on establishment of standards and procedures for the approval of continuing education provider applications; 6. In its discretion, issue an advisory opinion to any registrant, governmental official or entity substantially affected by a rule or statute enforceable by the Board; 7. Hear requests for reconsideration of registration and endorsement applications denied or refused by the registrar; 8. When deemed necessary by the Committee, appoint a member of the Committee to assist in investigating an alleged violation of the provisions of the Roofing Contractor Registration Act and of any rules promulgated pursuant thereto. Such member then would be disqualified from participation as a Roofing Hearing Board member in the same matter brought before the Roofing Hearing Board for adjudication; 9. Develop the requirements for issuance of a registration and endorsement by reciprocity to an applicant who is currently licensed or registered to engage in roofing contractor work in another state for recommendation to the Board for its rulemaking process; 10. Recommend to the Board that the Board enter into a written reciprocity agreement with another state if the requirements for registration in the other state are deemed by the Committee to be substantially the same or equivalent to the requirements for obtaining an original registration in force in this state at the date of such registration and: a. that one (1) year immediately prior to the date of payment of the required fee the applicant lawfully engaged in roofing contractor work within and under the laws of the state pursuant to a license or registration issued thereby authorizing such roofing work, b. that no disciplinary matters are pending against the applicant in any city, state, country, territory or province, and relating to the roofing trade in which the applicant seeks reciprocity, c. that the registration being reciprocated was obtained by equivalent or substantially the same requirements in the state wherein it was issued, d. that there is a written agreement between the states with equivalent or substantially similar registration requirements, and e. that the applicant meets all other requirements of the Construction Industries Board Act, including payment of the applicable license fee; 11. Have such other powers and duties as are necessary to implement the commercial roofer endorsement of the Roofing Contractor Registration Act; and 12. Assist and advise the Board in such other matters as requested thereby. SECTION 17. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 1151.28 of Title 59, unless there is created a duplication in numbering, reads as follows: A. The designee of the Construction Industries Board, as chair, and the Committee of Roofing Examiners shall act as the Roofing Hearing Board and shall comply with the provisions of the Construction Industries Board Act, rules and Article II of the Administrative Procedures Act. B. Any administrative hearing on suspensions, revocations or fines shall be conducted by a hearing examiner appointed by the Construction Industries Board. The hearing examiner's decision shall be a final decision which may be appealed to a district court in accordance with the Administrative Procedures Act and the Construction Industries Board Act and rules and regulations. C. The Roofing Hearing Board may, upon its own motion, and shall, upon written complaint filed by any person, investigate and conduct hearings on the business transactions of any roofing contractor, firm or any person soliciting or engaging in roofing contractor work. D. The Roofing Hearing Board may conduct hearings on citations issued to any person pursuant to the Roofing Contractor Registration Act, applications for suspension and revocation of a registration or endorsement. E. The Construction Industries Board shall suspend or revoke or may refuse to issue or renew any license or registration under the commercial roofer endorsement provisions of the Roofing Contractor Registration Act for any of the following standards of the Roofing Contractor Registration Act: 1. Making a material misstatement in the application for an endorsement, or the renewal of an endorsement; 2. Obtaining any endorsement by false or fraudulent representation; 3. Loaning or allowing the use of such endorsement by any other person or illegally using an endorsement; 4. Demonstrating incompetence to act as a commercial roofing contractor; 5. Violating any provisions of the Roofing Contractor Registration Act, or any rule or order prescribed by the Construction Industries Board pursuant to the provisions of the Roofing Contractor Registration Act; or 6. Willfully failing to perform normal business obligations without justifiable cause. F. Any person whose endorsement or registration has been revoked by the Roofing Hearing Board may apply for a new license one (1) year from the date of such revocation. SECTION 18. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 1151.29 of Title 59, unless there is created a duplication in numbering, reads as follows: A. 1. There is hereby created the Oklahoma State Roofing Installation Code Variance and Appeals Board. The Variance and Appeals Board shall hear testimony and shall review sufficient technical data submitted by an applicant to substantiate the proposed installation of any material, assembly or manufacturer-engineered components, equipment or system that is not specifically prescribed by an appropriate installation code, an industry consensus standard or fabricated or installed according to recognized and generally accepted good engineering practices, where no ordinance of a governmental subdivision applies. If it is determined that the evidence submitted is satisfactory proof of performance for the proposed installation, the Variance and Appeals Board shall approve such alternative, subject to the requirements of the appropriate installation code. Applications for the use of an alternative material or method of construction shall be submitted in writing to the Construction Industries Board for approval prior to use. Applications shall be accompanied by a filing fee, not to exceed Fifty Dollars ($50.00), as set by rule of the Board. 2. The Variance and Appeals Board shall also hear appeals from contractors, registered by the Construction Industries Board, and any person who has ownership interest in or is in responsible charge of the design of or work on the installation, who contest the Construction Industries Board's interpretation of the state's model mechanical installation code as applied to a particular installation. Such appeals shall be based on a claim that: a. the true intent of the installation code has been incorrectly interpreted, b. the provisions of the code do not fully apply, or c. an equal or better form of installation is proposed. Such appeals to the Variance and Appeals Board shall be made in writing to the Construction Industries Board within fourteen (14) days after a code interpretation or receipt of written notice of the alleged code violation by the licensed contractor. B. The Variance and Appeals Board shall consist of the designated representative of the Construction Industries Board and the following members who, except for the State Fire Marshal or designee, shall be appointed by the Construction Industries Board from a list of names submitted by the professional organizations of the professions represented on the Variance and Appeals Board and who shall serve at the pleasure of the Construction Industries Board: 1. Two members shall be appointed from the Committee of Roofing Examiners; one shall be a commercial contractor with five (5) years of experience and one shall be a residential contractor with five (5) years of experience; 2. One member shall be a registered design professional who is a registered architect with at least ten (10) years of experience, five (5) years of which shall have been in responsible charge of work; 3. One member shall be a registered design professional with at least ten (10) years of structural engineering or architectural experience, five (5) years of which shall have been in responsible charge of work; 4. One member shall be a registered design professional with mechanical or plumbing engineering experience; provided, such member shall have at least ten (10) years of experience, five (5) years of which shall have been in responsible charge of work; 5. One member shall be a registered design professional with electrical engineering experience; provided, such member shall have at least ten (10) years of experience, five (5) years of which shall have been in responsible charge of work; and 6. One member shall be the State Fire Marshal or a designee of the State Fire Marshal. C. Members, except the designee of the Construction Industries Board and the State Fire Marshal, or the designated representative of the State Fire Marshal, and employees of the Construction Industries Board, shall be reimbursed for travel expenses pursuant to the State Travel Reimbursement Act from the revolving fund created pursuant to Section 1850.13 of Title 59 of the Oklahoma Statutes. D. The Variance and Appeals Board shall meet after the Construction Industries Board receives proper application for a variance, accompanied by the filing fee, or proper notice of an appeal, as provided in subsection A of this section. E. The designated representative of the Construction Industries Board, shall serve as chair of the Variance and Appeals Board. A majority of the members of the Variance and Appeals Board shall constitute a quorum for the transaction of business. SECTION 19. This act shall become effective November 1, 2014.

  • State Bill: OR S 1571

    2014 OR S 1571 Author: Shields Version: Prefiled Version Date: 01/24/2014 78th OREGON LEGISLATIVE ASSEMBLY--2014 Regular Session Senate Bill 1571 Sponsored by Senator SHIELDS; Senators MONNES ANDERSON, PROZANSKI, ROSENBAUM, Representative BAILEY (Presession filed.) SUMMARY Prohibits certain solicitation practices by construction contractors providing restoration work on residential or commercial property or contents following man-made or natural disaster. Makes violation subject to civil penalty not to exceed $10,000. Requires minimum civil penalty of $1,000 and imposition of license sanctions for repeat violations. A BILL FOR AN ACT Relating to restoration work; creating new provisions; and amending ORS 701.992 . Be It Enacted by the People of the State of Oregon: SECTION 1. Sections 2 and 3 of this 2014 Act are added to and made a part of ORS chapter 701. SECTION 2. (1) As used in this section: (a) “Man-made or natural disaster” means a fire, flood, earthquake, crime or other sudden event that causes property or the contents of property to suffer major damage as defined by the Construction Contractors Board by rule. (b) “Restoration work” means services to repair, restore or clean residential or commercial property, or the contents of a residential or commercial property, damaged by a man-made or natural disaster. (2) A contractor may not directly, or through an employee, agent or other person acting on behalf of the contractor, solicit restoration work business by initiating in-person contact with a property owner or occupant at, or within 1,000 feet of, property damaged by a manmade or natural disaster. (3) A contractor may not directly, or through an employee, agent or other person acting on behalf of the contractor, solicit restoration work business from a property owner or occupant if the contractor or the person making the solicitation knows or reasonably should know that the physical, emotional or mental state of the owner or occupant is such that the owner or occupant is unable to exercise reasonable judgment in contracting for restoration work. SECTION 3. (1) A person who violates section 2 of this 2014 Act is subject to assessment of a civil penalty by the Construction Contractors Board, not to exceed $10,000. (2) If a person commits a second violation of section 2 of this 2014 Act: (a) The civil penalty imposed by the board under subsection (1) of this section may not be less than $1,000; and (b) The board shall suspend or revoke the license of the contractor. A license suspension under this paragraph shall be for period of not less than 30 days. (3) If a person commits a third violation of section 2 of this 2014 Act: (a) The civil penalty imposed by the board under subsection (1) of this section may not be less than $1,000; and (b) The board shall revoke the license of the contractor. SECTION 4. ORS 701.992 is amended to read: 701.992. (1) Except as provided in subsections (4) and (5) of this section or section 3 of this 2014 Act, any person who violates any provision of this chapter or any rule adopted by the Construction Contractors Board shall forfeit and pay into the General Fund of the State Treasury a civil penalty in an amount determined by the board of not more than $5,000 for each offense. (2) Civil penalties under this section shall be imposed as provided in ORS 183.745. (3) The provisions of this section are in addition to and not in lieu of any other penalty or sanction provided by law. (4) The board shall impose sanctions for violation of ORS 701.098 (1)(h) on both the person to whom the contract is awarded and the person who awards the contract as follows: (a) A penalty not less than $500 nor more than $1,000 for the first offense; (b) A penalty not less than $1,000 nor more than $2,000 for the second offense; (c) Suspension of the person’s license for six months for a third offense; (d) Suspension of the person’s license for three years for a fourth offense; and (e) Revocation of the person’s license for a fifth offense. (5) The board may impose a civil penalty not to exceed $100 for each violation of ORS 87.007 (3).

  • State Bill: TN S 631

    2013 TN S 631: Partial Amendment - Number 313



    Amendment No. 2 to SB0631


    Johnson


    Signature of Sponsor
        AMEND Senate Bill No. 631                              House Bill No. 480*

        by deleting all language after the enacting clause and by substituting instead the following: 

        SECTION 1. Tennessee Code Annotated, Section 62-6-103, is amended by adding a new subsection thereto, as follows: 

        (c) Any roofing work performed or to be performed within this state having a value of twenty-five thousand dollars ($25,000) or more shall be performed by a licensed roofing contractor who holds a current, valid roofing contractor's license in the specific roofing classification as issued by and in accordance with the rules and regulations established by the board. A roofing contractor shall have the roofing contractor's license prior to bidding upon or beginning any roofing work. For purposes of this subsection, "roofing" means the act of removing, installing, repairing or otherwise maintaining any covering to any at- or above-grade structure for the purpose of providing weather proof protection or ornamental enhancement to such structure. 

        SECTION 2. This act shall take effect upon becoming a law, the public welfare requiring it.

  • State Bill: IA SSB 1231

    Added: Green underlined text
    Deleted: Dark red text with a strikethrough
    Vetoed: Red text
     Links to affected code section
    2013 IA SSB 1231
    Author: Judiciary
    Version: Introduced
    Version Date: 03/04/2013

    Senate Study Bill 1231

    SENATE FILE

    BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON HOGG)

    A BILL FOR

    An Act establishing the crime of home repair fraud and providing penalties.

    BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1. NEW SECTION714.16D Home repair fraud.

    1. For purposes of this section, unless the context otherwise requires:

    a. "Elderly person" means a person who is sixty-five years of age or older.

    b. "Home repair" means the fixing, replacing, altering, converting, modernizing, or improving of, or making an addition to, any real property primarily designed or used as a residence.

    (1) "Home repair" includes the construction, installation, replacement, or improvement of improvements to residential structures or upon the land adjacent to residential structures, including but not limited to driveways, swimming pools, porches, roofs, siding, kitchens, chimneys, chimney liners, garages, fences, fallout shelters, central air conditioning, central heating, boilers, furnaces, hot water heaters, electrical wiring, sewers, plumbing fixtures, storm doors, storm windows, and awnings.

    (2) "Home repair" does not include any of the following:

    (a) Original construction of a residence.

    (b) The sale of goods or materials by a merchant who does not directly or through a subsidiary perform any work or labor in connection with the installation or application of the goods or materials.

    (c) The repair, installation, replacement, or connection of home appliances including but not limited to disposals, refrigerators, ranges, garage door openers, washing machines, telephones, television cables, television antennas, or satellite dishes, when the person replacing, installing, repairing, or connecting such home appliance is an employee or agent of the merchant that sold the home appliance.

    (d) Landscaping.

    (e) The sale, installation, cleaning, or repair of carpets.

    (f) Home repair made by a not-for-profit charitable organization.

    c. "Residence" means a single-family or multiple-family dwelling, located in this state, occupied or used or intended to be occupied or used for residential purposes.

    2. A person commits the offense of home repair fraud if the person knowingly does any of the following:

    a. Enters into a contract or agreement for home repair and does any of the following:

    (1) Misrepresents a material fact relating to the terms of the contract or agreement or the preexisting or existing condition of any portion of the property involved.

    (2) Creates or reinforces an impression relating to the terms of the contract or agreement that is false and that the person does not believe to be true.

    (3) Promises performance under the terms of the contract or agreement that the person does not intend to perform or that the person knows will not be performed.

    (4) Uses or employs any deception, false pretense, or false promise in order to induce, encourage, or solicit another person to enter into the contract or agreement.

    (5) Misrepresents or conceals the person's legal name or the legal name or address of the person's business.

    b. Damages the property of another person with the intent to enter into a contract or agreement for home repair.

    c. Misrepresents themselves to be an employee or agent of any governmental agency or a public utility with the intent to cause another person to enter into a contract or agreement for home repair.

    3. A person commits the offense of aggravated home repair fraud if any of the following apply:

    a. The person commits home repair fraud against an elderly person or a person with a physical or mental disability.

    b. The person commits home repair fraud and has previously been convicted of home repair fraud or aggravated home repair fraud.

    4. a. A person who commits home repair fraud is guilty of an aggravated misdemeanor.

    b. A person who commits aggravated home repair fraud is guilty of a class "D" felony if the contract or agreement price is five thousand dollars or less. A person who commits aggravated home repair fraud is guilty of a class "C" felony if the contract or agreement price is more than five thousand dollars.

    EXPLANATION

    This bill establishes the criminal offense of home repair fraud. A person commits home repair fraud if the person knowingly enters into a contract or agreement for home repair and engages in certain activities. These activities are misrepresenting a material fact relating to the terms of the contract or agreement or the preexisting or existing condition of any portion of the property involved; creating or reinforcing an impression relating to the terms of the contract or agreement that is false and that the person does not believe to be true; promising performance under the terms of the contract or agreement that the person does not intend to perform or that the person knows will not be performed; using or employing any deception, false pretense, or false promise in order to induce, encourage, or solicit another person to enter into the contract or agreement; or misrepresenting or concealing their legal name or the legal name or address of their business. A person also commits home repair fraud if the person knowingly damages the property of another person with the intent to enter into a contract or agreement for home repair, or misrepresents themselves to be an employee or agent of any governmental agency or a public utility with the intent to cause another person to enter into a contract or agreement for home repair.

    A person commits the offense of aggravated home repair fraud if the person commits home repair fraud against a person 65 years of age or older or a person with a physical or mental disability, or if the person commits home repair fraud and has previously been convicted of home repair fraud or aggravated home repair fraud.

    The bill defines "home repair" as the fixing, replacing, altering, converting, modernizing, or improving of, or making an addition to, any real property primarily designed or used as a residence. "Home repair" includes the construction, installation, replacement, or improvement of improvements to residential structures or upon the land adjacent to residential structures. Various activities are excluded from the definition of "home repair": original construction of a residence; the sale of goods or materials by a merchant who does not directly or through a subsidiary perform any work or labor in connection with the installation or application of the goods or materials; the repair, installation, replacement, or connection of home appliances when the person replacing, installing, repairing, or connecting the home appliance is an employee or agent of the merchant that sold the home appliance; landscaping; sale, installation, cleaning, or repair of carpets; and home repair made by a not-for-profit charitable organization. The bill defines "residence" as a single-family or multiple-family dwelling, located in this state, occupied or used or intended to be occupied or used for residential purposes.

    Home repair fraud is an aggravated misdemeanor. An aggravated misdemeanor is punishable by confinement for no more than two years and a fine of at least $625 but not more than $6,250.

    Aggravated home repair fraud is a class "D" felony if the contract or agreement price is $5,000 or less. A class "D" felony is punishable by confinement for no more than five years and a fine of at least $750 but not more than $7,500. Aggravated home repair fraud is a class "C" felony if the contract or agreement price is more than $5,000. A class "C" felony is punishable by confinement for no more than 10 years and a fine of at least $1,000 but not more than $10,000.

  • State Bill: IL H 2707

    2013 IL H 2707: Partial Amendment - Number 1



    HB2707ham001 

    98TH GENERAL ASSEMBLY


    Rep. Robert Rita


    Filed: 3/19/2013


    AMENDMENT TO HOUSE BILL 2707


        AMENDMENT NO. ___. Amend House Bill 2707 by replacing everything after the enacting clause with the following: 

        "Section 5. The Illinois Roofing Industry Licensing Act is amended by changing Sections 3 and 9 as follows: 

        (225 ILCS 335/3) (from Ch. 111, par. 7503) 

        (Section scheduled to be repealed on January 1, 2016) 

        Sec. 3. Application for license. 

        (1) To obtain a license, an applicant must indicate if the license is sought for a sole proprietorship, partnership, corporation, business trust, or other legal entity and whether the application is for a limited or unlimited roofing license. If the license is sought for a sole proprietorship, the license shall be issued to the proprietor who shall also be designated as the qualifying party. If the license is sought for a partnership, corporation, business trust, or other legal entity, the license shall be issued in the company name. A company must designate one individual who will serve as a qualifying party. The qualifying party is the individual who must take the examination required under Section 3.5. The company shall submit an application in writing to the Department on a form containing the information prescribed by the Department and accompanied by the fee fixed by the Department. The application shall include, but shall not be limited to: 

        (a) the name and address of the person designated as the qualifying party responsible for the practice of professional roofing in Illinois; 

        (b) the name of the proprietorship and its proprietor, the name of the partnership and its partners, the name of the corporation and its officers and directors, the name of the business trust and its trustees, or the name of such other legal entity and its members; 

        (c) evidence of compliance with any statutory requirements pertaining to such legal entity, including compliance with any laws pertaining to the use of fictitious names, if a fictitious name is used; if the business is a sole proprietorship and doing business under a name other than that of the individual proprietor, the individual proprietor must list all business names used for that proprietorship. 

        (1.5) A certificate issued by the Department before the effective date of this amendatory Act of the 91st General Assembly shall be deemed a license for the purposes of this Act. 

        (2) An applicant for a license must submit satisfactory evidence that: 

        (a) he or she has obtained public liability and property damage insurance in such amounts and under such circumstances as may be determined by the Department; 

        (b) he or she has obtained Workers' Compensation insurance covering his or her employees or is approved as a self-insurer of Workers' Compensation in accordance with Illinois law; 

        (c) he or she has an unemployment insurance employer account number issued by the Department of Employment Security, and he or she is not delinquent in the payment of any amount due under the Unemployment Insurance Act he or she has an Illinois Unemployment Insurance employer identification number or has proof of application to the Illinois Department of Labor for such an identification number 

        (d) he or she has submitted a continuous bond to the Department in the amount of $10,000 for a limited license and in the amount of $25,000 for an unlimited license; and 

        (e) a qualifying party has satisfactorily completed the examination required under Section 3.5. 

        (3) It is the responsibility of the licensee to provide to the Department notice in writing of any changes in the information required to be provided on the application. 

        (4) All roofing contractors must designate a qualifying party and otherwise achieve compliance with this Act no later than July 1, 2003 or his or her license will automatically expire on July 1, 2003. 

        (5) Nothing in this Section shall apply to a seller of roofing materials or services when the construction, reconstruction, alteration, maintenance, or repair of roofing or waterproofing is to be performed by a person other than the seller or the seller's employees. 

        (6) Applicants have 3 years from the date of application to complete the application process. If the application has not been completed within 3 years, the application shall be denied, the fee shall be forfeited and the applicant must reapply and meet the requirements in effect at the time of reapplication. 
    (Source: P.A. 91-950, eff. 2-9-01.) 

        (225 ILCS 335/9) (from Ch. 111, par. 7509) 

        (Section scheduled to be repealed on January 1, 2016) 

        Sec. 9. Licensure requirement. 

        (1) It is unlawful for any person to engage in the business or act in the capacity of or hold himself or herself out in any manner as a roofing contractor without having been duly licensed under the provisions of this Act. 

        (2) No work involving the construction, reconstruction, alteration, maintenance or repair of any kind of roofing or waterproofing may be done except by a roofing contractor licensed under this Act. 

        (3) Sellers of roofing services may subcontract the provision of those roofing services only to roofing contractors licensed under this Act. 

         (4) All persons performing work on a roofing project shall be licensed as a roofing contractor, except for those persons who are deemed to be employees under Section 10 of the Employee Classification Act of a licensed roofing contractor. 
    (Source: P.A. 90-55, eff. 1-1-98; 91-950, eff. 2-9-01.)".

  • State Bill: IL S 1539

    Added: Green underlined text
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     Links to affected code section
    2013 IL S 1539
    Author: Rose
    Version: Engrossed
    Version Date: 04/10/2013

    SB1539 Engrossed

    AN ACT concerning business.

    Be it enacted by the People of the State of Illinois, represented in the General Assembly:

    Section 5. The Home Repair and Remodeling Act is amended by changing Section 18 as follows:

    (815 ILCS 513/18 )

    Sec. 18. Repairs following damaging weather.

    (a) As used in this Section, "catastrophe" means a natural occurrence, including but not limited to flood, drought, earthquake, tornado, windstorm, or hailstorm, which damages or destroys 3 or more residences than one residence .

    (b) A contractor offering home repair or remodeling services shall not advertise or promise to pay or rebate all or any portion of any insurance deductible as an inducement to the sale of goods or services. As used in this Section, a promise to pay or rebate includes granting any allowance or offering any discount against the fees to be charged or paying the insured or any person directly or indirectly associated with the property any form of compensation.

    (c) A contractor offering home repair or remodeling services shall not accept money or any form of compensation in exchange for allowing an out of area contractor to use its business name or license.

    (d) A contractor offering home repair or remodeling services shall include its Illinois State roofing contractor license name and number as it appears on its Illinois State roofing license on all contracts, bids, and advertisements involving roofing work as required by the Illinois Roofing Industry Licensing Act.

    (e) A person who has entered into a written contract with a contractor offering home repair or remodeling services to provide goods or services to be paid from the proceeds of a property and casualty insurance policy may cancel the contract prior to midnight on the earlier of the fifth business day after the insured has received written notice from the insurer that all or any part of the claim or contract is not a covered loss under the insurance policy or the thirtieth business day after receipt of a properly executed proof of loss by the insurer from the insured. Cancellation is evidenced by the insured giving written notice of cancellation to the contractor offering home repair or remodeling services at the address stated in the contract. Notice of cancellation, if given by mail, is effective upon deposit into the United States mail, postage prepaid and properly addressed to the contractor. Notice of cancellation may be given by delivering or mailing a signed and dated copy of the written notice of cancellation to the contractor's business address as stated in the contract. Notice of cancellation shall include a copy of the written notice from the insurer to the effect that all or part of the claim is not a covered loss under the insurance policy. Notice of cancellation need not take a particular form and is sufficient if it indicates, by any form of written expression, the intention of the insured not to be bound by the contract.

    (f) Any contract referred to in subsection (e), must contain a statement in at least 10 point boldface, in substantially the following form:

    "You may cancel this contract at any time before midnight on the earlier of the fifth business day after you have received written notification from your insurer that all or any part of the claim or contract is not a covered loss under the insurance policy or the thirtieth business day after your insurer has received properly executed proof(s) of loss from you. See attached notice of cancellation form for an explanation of this right."

    (g) Upon executing a contract referred to in subsection (e), furnish each insured a fully completed form in duplicate, captioned "NOTICE OF CANCELLATION", which shall be attached to the contract but easily detachable, and which shall contain boldface type of a minimum size of 10 points the following statement with the appropriate fields completed by the contractor:

    "NOTICE OF CANCELLATION

    If you are notified by your insurer that all or any part of the claim or contract is not a covered loss under the insurance policy, you may cancel the contract by mailing or delivering a signed and dated copy of this cancellation notice or any other written notice to (name of contractor) at (address of contractor's place of business) at any time prior to midnight on the earlier of the fifth business day after you have received such notice from your insurer or the thirtieth business day after your insurer has received properly executed proof(s) of loss from you. If you cancel, any payments made by you under the contract, other than payments for goods or services related to a catastrophe which you agreed in writing to be necessary to prevent damage to your property, will be returned to you within 10 business days following receipt by the contractor of your cancellation notice.

    I HEREBY CANCEL THIS TRANSACTION

    ....

    (date)

    ....

    (insured's signature)".

    (h) Within 10 days after a contract referred to in subsection (e) has been cancelled, the contractor offering home repair or remodeling services shall tender to the insured any payments, partial payments, or deposits made by the insured and any note or other evidence of indebtedness. If, however, the contractor has provided any goods or services related to a catastrophe, acknowledged and agreed to by the insured in writing to be necessary to prevent damage to the premises, the contractor is entitled to the reasonable value of such goods and services. Any provision in a contract referred to in subsection (e) that requires the payment of any fee for anything except goods or services related to a catastrophe shall not be enforceable against any insured who has cancelled a contract pursuant to this Section.

    (i) A contractor offering home repair or remodeling services shall not represent, or offer or advertise to represent, on behalf of a homeowner on any insurance claim in connection with the repair or replacement of roof systems, or the performance of any other interior or exterior repair, replacement, construction or reconstruction work; or otherwise violate the Public Adjusters Law (Public Act 96-1332). A Public Adjuster means any person who acts on behalf of the insured in preparing and adjusting a claim for loss or damage covered by an insurance contract. A contractor offering home repair or remodeling services shall not call in or file a claim to an insurance carrier on the insured's behalf. A contractor offering home repair or remodeling services shall not climb on a roof or inspect for exterior damage without the insured's express permission. Nothing in this subsection shall be construed to prohibit a residential contractor from:

    (1) providing an insured an estimate for repair, replacement, construction, or reconstruction of the insured's property and any such estimate may be submitted to the insured's insurance company;

    (2) conferring with an insurance company's representative about damage to an insured's property; or

    (3) discussing repair or replacement options with an insurance company's representative or the insured about options for the repair or replacement of the damage.

    (Source: P.A. 97-235, eff. 1-1-12.)

  • State Bill: KY H 207

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     Links to affected code section
    2014 KY H 207
    Author: Riggs
    Version: Engrossed
    Version Date: 03/14/2014

    KENTUCKY LEGISLATURE

    HB 207

    2014 Regular Session

    AN ACT relating to the licensure of roofers and making an appropriation therefor.

    Be it enacted by the General Assembly of the Commonwealth of Kentucky:

    SECTION 1. A NEW SECTION OF KRS CHAPTER 198B IS CREATED TO READ AS FOLLOWS:

    As used in Sections 1 to 13 of this Act:

    (1) "Board" means the Kentucky Board of Roofing Contractors;

    (2) "Department" means the Department of Housing, Building and Construction;

    (3) "Roofing contractor" means a person licensed in the business of contracting or offering to contract to do roofing on residential, commercial, and industrial buildings of any scale; and

    (4) "Roofing" means to construct, reconstruct, repair, maintain, and install products to the surface of roofs to seal, waterproof, and weatherproof buildings. "Roofing" shall not be construed to include the installation of photovoltaic cells, wind turbines, or other electrical devices powered by the sun, wind, or other natural source.

    SECTION 2. A NEW SECTION OF KRS CHAPTER 198B IS CREATED TO READ AS FOLLOWS:

    (1) Sections 1 to 13 of this Act shall apply to persons who contract or offer to contract to construct or repair roofs for compensation on any building subject to the requirements of the Uniform State Building Code as required in KRS 198B.050, but shall not apply to:

    (a) A building owner constructing or repairing a roof upon the building which he or she owns; and

    (b) A farm owner or farm tenant who does construction, maintenance, or repair work on a roof on a home, barn, or other outbuilding he or she owns or rents.

    (2) Any person not exempted by subsection (1) of this section who engages in roofing work for compensation without a license issued under Section 5 of this Act shall be guilty of a violation and may be fined by the department as follows:

    (a) A fine of up to two thousand five hundred dollars ($2,500) for the first offense;

    (b) A fine of up to five thousand dollars ($5,000) for the second offense; or

    (c) A fine of up to ten thousand dollars ($10,000) for the third and each subsequent offense.

    SECTION 3. A NEW SECTION OF KRS CHAPTER 198B IS CREATED TO READ AS FOLLOWS:

    (1) The Kentucky Board of Roofing Contractors is created within the Department of Housing, Buildings and Construction.

    (2) The board shall be composed of eight (8) members, one (1) of whom shall be the commissioner of the Department of Housing, Buildings and Construction, or his or her designee. The commissioner shall act as the chair of the board. The remaining seven (7) members shall be appointed by the Governor as follows:

    (a) 1. Three (3) members shall be appointed from a list of names submitted by the Kentucky Roofing Contractors Association, one (1) for an initial term of one (1) year and two (2) for an initial term of two (2) years.

    2. After the initial appointments, the term for all members appointed by the Governor shall be for two (2) years;

    (b) One (1) member shall represent the public at large and shall have no financial or professional interest in the roofing profession or in supplying material to the roofing profession;

    (c) One (1) member shall be affiliated with the construction industry. This person shall be selected from a list of three (3) names submitted by the Associated General Contractors of Kentucky;

    (d) One (1) member shall be a representative of the insurance industry. This person shall be selected from a list of three (3) names submitted to the Governor by the Independent Insurance Agents of Kentucky; and

    (e) One (1) member shall be affiliated with the home building industry. This person shall be selected from a list of three (3) names submitted by the Kentucky Home Builders Association.

    (3) Each member of the board, except the commissioner or his or her designee, shall be entitled to a maximum per diem of fifty dollars ($50) plus travel expenses incurred in connection with the member's duties as a board member.

    (4) A majority of the members of the board shall constitute a quorum. Official business of the board may be conducted only if a quorum is present.

    (5) The chair shall establish the date, time, and place for each meeting.

    (6) The board shall meet no less than quarterly and may meet at other times upon the call of the chair or the written request of a majority of the members of the board.

    (7) A member shall not serve on the board for more than six (6) consecutive years.

    (8) Members may be removed from the board by the Governor for unethical conduct, neglect of duty, incompetence, or for failure to attend three (3) or more consecutive meetings of the board. A dismissed member's remaining term shall be completed by the replacement member appointed by the Governor.

    SECTION 4. A NEW SECTION OF KRS CHAPTER 198B IS CREATED TO READ AS FOLLOWS:

    The department, with assistance from the board, shall:

    (1) Promulgate administrative regulations necessary to carry out the provisions of Sections 1 to 13 of this Act;

    (2) Approve:

    (a) Persons to provide education relating to the field of roofing and the practice of acting as a roofing contractor;

    (b) Courses of study;

    (c) Examination contents;

    (d) The minimum score required to pass an examination; and

    (e) Continuing education providers and content requirements;

    (3) Establish application deadlines for:

    (a) Examinations for licensure;

    (b) Applications for initial licensure; and

    (c) Applications for license renewal;

    (4) Establish procedures for receiving, investigating, and resolving complaints against licensees and persons engaged in roofing work without a license where a license is required;

    (5) Approve, deny, suspend, or revoke a license to practice as a roofing contractor;

    (6) Conduct hearings for license suspension, revocation, the imposition of a fine, or appeals to other decisions of the department under the provisions of KRS Chapter 13B; and

    (7) Conduct or cause to be conducted background investigations of applicants to determine if the applicant has past felony convictions for:

    (a) Fraud;

    (b) Burglary; or

    (c) Theft by deception.

    SECTION 5. A NEW SECTION OF KRS CHAPTER 198B IS CREATED TO READ AS FOLLOWS:

    (1) The department shall issue a license to a person as a roofing contractor who:

    (a) Provides proof of current liability insurance coverage in the amount of at least five hundred thousand dollars ($500,000) underwritten by an insurance carrier licensed and approved by the Kentucky Department of Insurance;

    (b) Submits proof of a licensing and permit bond posted in the amount of ten thousand dollars ($10,000);

    (c) 1. Has achieved at least a minimal passing score as established by the department on an examination approved by the department; and

    2. Has completed a course of training approved by the department;

    (d) Has paid a licensing fee in an amount established by the department through the promulgation of an administrative regulation, not to exceed:

    1. Two hundred fifty dollars ($250) for initial licensure; or

    2. Two hundred dollars ($200) for license renewal;

    (e) Submits proof of current workers' compensation insurance coverage or proof of exemption; and

    (f) Meets other requirements as promulgated by the department through administrative regulation.

    (2) A licensed roofing contractor shall have and maintain:

    (a) A definite and active place of business in this state, unless the licensee is a nonresident and maintains a definite and active place of business in the state where the licensee resides;

    (b) A current e-mail address; and

    (c) A current telephone number.

    SECTION 6. A NEW SECTION OF KRS CHAPTER 198B IS CREATED TO READ AS FOLLOWS:

    (1) Every license issued by the department pursuant to Sections 1 to 13 of this Act may be renewed annually, on or before the last day of the licensee's birth month, upon payment of a renewal fee and submission of proof of compliance with the applicable requirements of Section 5 of this Act. Failure to renew shall cause the license to expire.

    (2) A thirty (30) day grace period shall be allowed after the expiration of the license during which time the licensee may continue to practice and may apply to restore his or her license upon payment of the renewal fee plus a restoration fee, as established in administrative regulations promulgated by the department, and submission of proof of compliance with the applicable requirements of Section 5 of this Act.

    (3) A license that is not restored before the end of the thirty (30) day grace period shall immediately terminate. Upon termination of the license, the former licensee shall be ineligible to practice roofing in the Commonwealth until he or she satisfies all applicable licensing requirements in accordance with Sections 1 to 13 of this Act.

    SECTION 7. A NEW SECTION OF KRS CHAPTER 198B IS CREATED TO READ AS FOLLOWS:

    (1) The department may deny, refuse to renew, revoke, or suspend a license issued under Section 5 of this Act for any of the following reasons:

    (a) Untruthful, inaccurate, or incomplete reporting of any of the licensing requirements enumerated in Section 5 of this Act;

    (b) Failure to satisfy any requirement of licensure established in Section 5 of this Act;

    (c) Past criminal felony conviction related to:

    1. Fraud;

    2. Theft by deception; or

    3. Burglary;

    (d) Violating, aiding, abetting or conspiring with an unlicensed person to evade or violate any of the provisions of Section 2, 10, 11, 12, or 13 of this Act; or

    (e) Failure to comply with a stop-work order issued pursuant to Section 13 of this Act.

    (2) An applicant or licensee aggrieved by an action of the department under this section may request an administrative hearing in accordance with KRS Chapter 13B.

    (3) Any licensee who is aggrieved by a final order of the department resulting in the denial, suspension, refusal to renew, or revocation of his or her license may appeal to the Franklin Circuit Court in accordance with KRS Chapter 13B.

    SECTION 8. A NEW SECTION OF KRS CHAPTER 198B IS CREATED TO READ AS FOLLOWS:

    The department may establish the following fees through promulgation of administrative regulations:

    (1) Education provider application fee not to exceed fifty dollars ($50);

    (2) Examination fee not to exceed one hundred dollars ($100); and

    (3) Returned check fee not to exceed the banking and administrative costs the department incurs in processing a returned check.

    SECTION 9. A NEW SECTION OF KRS CHAPTER 198B IS CREATED TO READ AS FOLLOWS:

    (1) (a) All fees, fines, and other moneys received by the department under the provisions of Sections 1 to 13 of this Act shall be deposited in the State Treasury to the credit of a revolving fund for the administration and enforcement of the roofing program established by Sections 1 to 13 of this Act.

    (b) The moneys in the fund are hereby appropriated for the purposes set forth in Sections 1 to 13 of this Act.

    (c) The department shall administer the fund.

    (2) Notwithstanding KRS 45.229, no part of the revolving fund shall lapse but shall be carried forward to the next fiscal year.

    (3) Any interest earnings of the fund shall become part of the revolving fund and shall not lapse.

    SECTION 10. A NEW SECTION OF KRS CHAPTER 198B IS CREATED TO READ AS FOLLOWS:

    A licensed roofing contractor shall:

    (1) Continue to maintain in effect all insurance coverage required for initial licensure;

    (2) Affix the roofing contractor license number and the licensee's name, as it appears on the license, to each:

    (a) Vehicle used by the licensee in the conduct of the roofing business, where letters and numbers used shall be:

    1. In a color contrasting to the color of the vehicle; and

    2. At least two (2) inches high; and

    (b) Contract or bid document the licensee offers to a customer; and

    (3) Report any change in information supplied to the department on an application for licensure or license renewal within thirty (30) days of the date of change.

    (4) A fine of up to two hundred fifty dollars ($250) may be imposed by the department on a roofing contractor for each violation of the requirements of this section.

    SECTION 11. A NEW SECTION OF KRS CHAPTER 198B IS CREATED TO READ AS FOLLOWS:

    (1) The department shall establish, in consultation with the board, an on-line permitting system.

    (2) A permit shall be applied for and received before roofing work begins on any job except for:

    (a) New construction;

    (b) Jobs for which the contracted price is less than one thousand five hundred dollars ($1,500);

    (c) Emergency repair services, consisting of roof tarps, spot repairs, and any other repair service that constitutes a temporary rather than permanent means necessary to prevent further damage to the premises; or

    (d) Any other permitted construction projects.

    A permit for all other emergency repair services shall be applied for by no later than the business day following the day on which the repair is begun.

    (3) The cost of the permit shall be determined and promulgated in administrative regulation by the department, but shall not be more than seventy-five dollars ($75).

    (4) Information submitted in applying for a permit shall include:

    (a) The roofing contractor's name, business address, and phone number;

    (b) The roofing contractor's license number;

    (c) The address of the building to be roofed or repaired under the requested permit;

    (d) The federal tax ID number or social security number; and

    (e) Any other information the department may require through the promulgation of an administrative regulation.

    (5) The department shall make provisions for the payment of permit fees electronically by Internet access, as well as other methods approved by the department through the promulgation of an administrative regulation.

    (6) A fine of up to two hundred fifty dollars ($250) shall be imposed by the department on a roofing contractor or other person who begins work on a roofing job without obtaining a permit required for that job under subsection (2) of this section.

    SECTION 12. A NEW SECTION OF KRS CHAPTER 198B IS CREATED TO READ AS FOLLOWS:

    (1) For the purposes of this section, "local government" shall mean a city, county, consolidated local government, charter county government, unified local government, or urban-county government.

    (2) Nothing in Sections 1 to 13 of this Act shall prohibit a local government that has implemented a permitting and inspection program for roofing contractors as of January 1, 2014, from continuing to administer the permitting and inspection program within their jurisdiction, provided that the local government demonstrates to the department that the requirements of the local permitting and inspection program, as established by local ordinance, are at least as stringent as the requirements of Sections 10, 11, 12, and 13 of this Act; or

    (3) A local government that has implemented a permitting and inspection program for roofing contractors as of January 1, 2014 with requirements less stringent than the requirements of Sections 10, 11, 12, and 13 of this Act shall be permitted to continue its program provided that it brings its requirements into conformity with subsection (2) of this section by no later than January 1, 2015.

    (4) A local government implementing a permitting and inspection program in accordance with this section may, by ordinance, establish and enforce local fines equivalent to those authorized to be imposed by the department pursuant to Sections 10, 11, and 13 of this Act.

    (5) Roofing contractors operating within the territory of a local government that has established a local permitting and inspection program in accordance with this section shall be exempt from Sections 1 to 13 of this Act and shall conform to the local permitting and inspection program while operating as a roofing contractor within the jurisdiction of that local government.

    (6) Roofing contractors whose business address is located within the territory of a local government with a local permitting and inspection program established in accordance with this section shall comply with Sections 1 to 13 of this Act when engaged in roofing contracting in areas of the state that are not subject to a local permitting and inspection program established in accordance with this section.

    SECTION 13. A NEW SECTION OF KRS CHAPTER 198B IS CREATED TO READ AS FOLLOWS:

    (1) Any inspector employed and authorized by the department shall have the authority to review roofing contractor licenses and roofing permits on job sites where roofing work is being conducted.

    (2) Any local building inspector certified by the department shall have the authority to review roofing contractor licenses and roofing permits on job sites where roofing work is being conducted and over which the local government employing the inspector has jurisdiction pursuant to KRS 198B.060.

    (3) Any inspector exercising the authority set forth in subsections (1) or (2) of this section and any local government implementing a permitting and inspection program in accordance with Section 12 of this Act, shall have the authority to issue a stop-work order for any roofing work:

    (a) Undertaken by an unlicensed roofing contractor; or

    (b) Undertaken without a permit where a permit is required under section 11 of this Act.

    (4) Stop-work orders issued under subsection (3) of this section may be delayed in order to allow work to continue long enough to provide adequate protection on areas of a roof that have already been stripped of shingles or other protective covering.

    (5) The department, or any local government acting under the authority of subsections (2) or (3) of this section, may impose a fine of up to one thousand dollars ($1,000) on any person who fails to adhere to a stop-work order issued under this section. However, any such local government shall first establish this fine by ordinance.

    (6) (a) The department, or any local government acting under the authority of subsections (2) or (3) of this section may petition the courts to enforce the penalties authorized by this section and Section 10 of this Act; and

    (b) When required to petition the courts to enforce a penalty, the costs of the action and reasonable attorneys' fees may be added to the amount of the penalty.

    (7) A person aggrieved by a stop-work order or fine may request an administrative hearing with the department in accordance with KRS Chapter 13B.

    (8) Any person aggrieved by a final order of the department resulting in a fine may appeal to the Franklin Circuit Court in accordance with KRS Chapter 13B.

  • State Bill: LA H 529

    Added: Green underlined text
    Deleted: Dark red text with a strikethrough
    Vetoed: Red text
     Links to affected code section
    2014 LA H 529
    Author: Pugh
    Version: Introduced
    Version Date: 03/10/2014

    ORIGINAL

    Regular Session, 2014

    HOUSE BILL NO. 529

    BY REPRESENTATIVE PUGH

    CONTRACTORS: Requires contractors performing elevation, re-elevation, or restoration services due to a flood or hurricane; to provide third-party insurance backed warranties on each such project

    AN ACT

    To enact Chapter 8 of Code Title IV of Code Book III of Title 9 of the Louisiana Revised Statutes of 1950, to be comprised of R.S. 9:2790.1.1through 2790.1.11, relative to warranties required of contractors for elevation, re-elevation, or restoration services; to enact the Elevation, Re-elevation, or Restoration Warranty Act; to provide for warranties by contractors for certain elevation, re-elevation, or restoration work; to require insurance against certain defects; to provide for warranty periods; to provide for notice requirements; to provide definitions; and to provide for related matters.

    Be it enacted by the Legislature of Louisiana:

    Section 1. Chapter 8 of Code Title IV of Code Book III of Title 9 of the Louisiana Revised Statutes of 1950, comprised of R.S. 9:2790.1.1 through2790.1.11, is hereby enacted to read as follows:

    CHAPTER 8. ELEVATION, RE-ELEVATION, OR RESTORATION WORK WARRANTY ACT

    Section 2790.1.1. Purpose

    A. The legislature finds a need to protect property owners in Louisiana from economic loss due to defective workmanship on structures that are elevated, re- elevated, or restored. Many of these economic losses are caused by contractors performing these improvements and not providing an enforceable warranty to the owners of the structures to pay for the damages and defects caused to their property arising from the work of the contractor.

    B. The legislature finds that these economic losses can be minimized by requiring an insured warranty on each such improvement required because of elevation, re-elevation, hurricane, or flood.

    C. This warranty shall define the responsibility of the contractor to the owner and subsequent purchasers during the warranty period. The warranty, which is mandatory, shall apply whether or not building code regulations are in effect in the location of the structure, thereby promoting uniformity of defined building standards.

    Section 2790.1.2. Definitions

    For purposes of this Chapter, the following words, phrases, and terms shall be defined and construed as follows:

    (1) "Contractor" means any person, natural or juridical, who undertakes, or attempts to undertake, on any elevation, re-elevation, or restoration to any pre- existing structure, or to structures which are adjacent to such structure. The term "contractor" shall include but not be limited to contractors, general contractors, residential building contractors, and home improvement contractors as defined by R.S. 37:2150.1.

    (2) "Flood" means water intrusion caused by wind driven water, rising tides, or wind produced surge, or any combination thereof.

    (3) "Hurricane" means any storm named by the National Weather Service.

    (4) "Improvement" means the elevation, re-elevation, or restoration, or any combination thereof, by a contractor to any residential or commercial structure damaged by a hurricane or flood. This definition shall include but not be limited to improvements undertaken pursuant to a government program, improvements paid for within proceeds of insurance, and improvements paid for by the owner of the structure on which the improvement is being made.

    (5) "Insurer" shall mean an insurance company licensed to conduct business in the state of Louisiana.

    (6) "Major structural defects" means any actual physical damage to the following load-bearing portions of the building caused by failure of the load-bearing portions which affects their load-bearing functions to the extent that the structure becomes unsafe, unsanitary, and unliveable:

    (a) Foundation systems and footings.

    (b) Beams.

    (c) Girders.

    (d) Lintels.

    (e) Columns.

    (f) Walls and partitions.

    (g) Floor systems.

    (h) Roof framing systems.

    (7) "Owner" means the person or persons, natural or juridical, who held title to the structure at the time the original elevation, re-elevation, or restoration project was undertaken, or any successors in title.

    (8) "Structure" means a structure which is designed and used for residential or commercial use, or both, together with all attached and unattached structures and which was elevated, re-elevated, or restored.

    (9) "Warranty commencement date" means the date that the improvements are substantially complete, have been accepted by the owner, and the contractor has been paid in full.

    (10) "Workmanship" means the standard and quality of the work of the contractor or the skills used in the elevation, re-elevation, or restoration of the structure.

    Section 2790.1.3. Warranties; exclusions

    A. Subject to the exclusions provided in Subsection B of this Section and notwithstanding any provision to the contrary, every contractor shall warrant the following to the owner of a structure for which an improvement is contracted for and described in the scope of work between the contractor and the owner:

    (1) One year following the warranty commencement date, the improvement will be free from any defect due to substandard workmanship.

    (2) Two years following the warranty commencement date, the improvement will be free from major structural defects due to substandard workmanship.

    B. The contractor's warranty shall exclude the following:

    (1) Any damage to the extent that it is caused or made worse by any of the following:

    (a) Negligence, improper maintenance, neglect, or improper operation by anyone other than the contractor or any employee, agent, or subcontractor of the contractor.

    (b) Failure by anyone other than the contractor or any employee, agent, or subcontractor of the contractor to comply with the warranty requirements of manufacturers of appliances, equipment, or fixtures.

    (c) Dampness, condensation, or other damages due to the failure of the owner to maintain adequate ventilation or drainage.

    (2) Any loss or damage which the owner has not taken timely action to minimize.

    (3) Any defect in, or any defect caused by, materials or work supplied by anyone other than the contractor, or any employee, agent, or subcontractor of the contractor.

    (4) Loss or damage resulting from war, accident, riot and civil commotion, water escape, falling objects, aircraft, vehicles, acts of God following the act of God which caused the damage originally contracted to be repaired, lightning, windstorm, hail, flood, mudslide, earthquake, volcanic eruption, wind driven water, and changes in the level of the underground water table.

    (5) Any damage caused by soil movement.

    (6) Insect damage.

    (7) Any condition which does not result in actual physical damage to the improvement.

    (8) Any cost of transportation, food, moving, storage, or other incidental expense related to relocation during the repair.

    (9) Any defect not reported in writing by registered or certified mail to the contractor and insurer, as appropriate, prior to the expiration period specified in this Chapter for such defects plus thirty days.

    (10) Consequential damages including attorney's fees.

    (11) Mold and mold damage to the completed improvement.

    Section 2790.1.4. Warranty required in writing; implied warranty; waiver

    The warranty required by R.S. 9:2790.1.3 and the information regarding the insurance required by R.S. 9:2790.1.5 shall be set forth in writing in the contract between the owner and the contractor.

    Section 2790.1.5. Insurance backed warranty; requirement

    A. All of the contractor's obligations under the warranty required by this Chapter shall be insured by the contractor for the benefit of the owner through a third party insurance or bond company, referred to herein as "insurer", authorized and properly licensed to transact business in this state and that meets the following minimum qualifications:

    (1) Has been in business at least ten years and is in good standing in the state in which it is incorporated.

    (2) Has at least two years experience in furnishing warranties for elevation or re-elevation projects, or both, in Louisiana.

    (3) Be duly licensed to transact business in Louisiana.

    (4) Has a Louisiana licensed professional engineer registered in civil engineering on staff or on contract to perform inspections as needed.

    (5) Has a mandatory dispute resolution process in place which includes mediation and arbitration.

    (6) Has a rating of "B" or higher by A.M. Best.

    (7) Holds a license issued by the Louisiana Department of Insurance for providing the type of insurance required to insure warranties.

    Section 2790.1.6. Required notice; owner

    A. Before undertaking any repair himself or instituting any arbitration action for breach of warranty, the owner shall give the contractor and insurer written notice, by registered or certified mail, within thirty days of knowledge of the defect. The notice to the contractor shall be sent to the contractor's last known address as registered with the secretary of state's office or to the last known address if the contractor is not registered with the secretary of state's office.

    B. The notice shall advise the contractor and insurer of all defects and give the contractor sixty days to repair, replace, or pay the owner the reasonable cost of repairing or replacing any defective improvement.

    Section 2790.1.7. Required response; insurer to owner; insurer to contractor

    A. The insurer shall provide the owner whom it receives notice from pursuant to R.S. 2790.1.6 with an inspection report of the alleged warranty defects prepared by a Louisiana licensed engineer registered in civil engineering.

    B. The insurer shall provide the contractor and the owner with a letter, by registered or certified mail, informing both whether the alleged defects are or are not warranted. If the defects are warranted, the letter shall detail which defects require repair pursuant to the warranty and the scope of the repair work. If the defects are not warranted, the letter shall specify reasons for making that determination.

    Section 2790.1.8. Procedure following response of insurer

    A. The owner shall notify the contractor and the insurer, by registered or certified mail, whether or not he accepts the scope of repair work stated in the letter required by R.S. 9:2790.1.7.

    B. Should the owner accept the scope of repair work stated in the letter, repair work shall begin within thirty days of receipt by the contractor.

    Section 2790.1.9. Peremption

    Any action to enforce any warranty provided for in this Chapter shall be subject to a peremptive period of thirty days after the expiration of the appropriate time period provided in R.S. 9:2790.1.3.

    Section 2790.1.10. Transfer of warranty and insurance

    Any warranty imposed pursuant to this Chapter and any insurance benefit shall automatically transfer, without charge, to a subsequent owner who acquires title of the structure containing the improvement. Any transfer of the structure shall not extend the duration of any warranty or insurance coverage.

    Section 2790.1.11. Violations; limitations

    A. If a contractor or insurer violates this Chapter by failing to perform as required by the warranties and procedures provided in this Chapter, any affected owner shall have a cause of action against the contractor or insurer, or both, for actual damages arising out of the violation. The damages with respect to a single defect shall not exceed the reasonable cost of repair or replacement necessary to cure the defect and any damage determined to be caused by the defect.

    B. The parties shall provide for the arbitration of any claim in dispute. Any arbitration shall comply with and may be binding only to the extent provided for in this Chapter.

    Section 2. The provisions of this Act shall apply to contracts entered into after January 1, 2015.

    Section 3. This Act shall become effective upon signature by the governor or, if not signed by the governor, upon expiration of the time for bills to become law without signature by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If vetoed by the governor and subsequently approved by the legislature, this Act shall become effective on the day following such approval.

    DIGEST

    The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]

    Pugh

    HB No. 529

    Abstract: Requires contractors to offer third party insurance backed warranties for elevation, re-elevation, or restoration work made necessary following a flood or a hurricane.

    Proposed law provides that the legislature finds economic losses caused by contractors not offering enforceable warranties on elevation, re-elevation, or restoration work performed on structures following a hurricane or flood can be minimized by requiring an insured warranty.

    Proposed law provides for definitions.

    Proposed law requires that every elevation, re-elevation, or restoration contract for improvement to a structure damaged by a flood or hurricane be warranted and that the warranty be backed by a third party insurer for the benefit of the owner of the structure improved.

    Proposed law provides that the warranty times shall run as follows:

    (1) One year following the warranty commencement date, the improvement will be free from any defect due to substandard workmanship.

    (2) Two years following the warranty commencement date, the improvement will be free from major structural defects due to substandard workmanship.

    Proposed law excludes the following from the warranty required by proposed law:

    (1) Any damage to the extent that it is caused or made worse by negligence, improper maintenance, neglect, or improper operation by anyone other than the contractor or any employee, agent, or subcontractor of the contractor, failure by anyone other than the contractor or any employee, agent, or subcontractor of the contractor to comply with the warranty requirements of manufacturers of appliances, equipment, or fixtures, dampness, condensation, or other damages due to the failure of the owner to maintain adequate ventilation or drainage.

    (2) Any loss or damage which the owner has not taken timely action to minimize.

    (3) Any defect in, or any defect caused by, materials or work supplied by anyone other than the contractor, or any employee, agent, or subcontractor of the contractor.

    (4) Loss or damage resulting from war, accident, riot and civil commotion, water escape, falling objects, aircraft, vehicles, acts of God following the act of God which caused the damage originally contracted to be repaired, lightning, windstorm, hail, flood, mudslide, earthquake, volcanic eruption, wind driven water, and changes in the level of the underground water table.

    (5) Any damage caused by soil movement.

    (6) Insect damage.

    (7) Any condition which does not result in actual physical damage to the improvement.

    (8) Any cost of transportation, food, moving, storage, or other incidental expense related to relocation during the repair.

    (9) Any defect not reported in writing by registered or certified mail to the contractor and insurer, as appropriate, prior to the expiration period specified in proposed law for such defects plus 30 days.

    (10) Consequential damages including attorneys fees.

    (11) Mold and mold damage to the completed improvement.

    Proposed law requires the warranty and insurance requirements be set forth in writing between the owner and contractor.

    Proposed law requires all of the contractor's obligations under the warranty required by proposed law be insured by the contractor for the benefit of the owner through a third party insurance or bond company.

    Proposed law provides for qualification of a third party insurance or bond company.

    Proposed law provides that the owner shall notify the contractor and insurer of any knowledge of a defect and give the contractor 60 days to repair, replace, or pay the owner the reasonable cost of repairing or replacing any defective improvement.

    Proposed law provides that the insurer shall provide the owner with an inspection report prepared by a LA licensed engineer registered in civil engineering.

    Proposed law provides that the insurer shall provide the contractor and the owner with a letter informing both whether the alleged defects are or are not warranted. If the defects are warranted, the letter will detail which defects require repair pursuant to the warranty and the scope of the repair work. If the defects are not warranted, the letter shall specify reasons for making that determination.

    Proposed law provides that the owner shall notify the contractor and the insurer whether or not he accepts the scope of repair work. Should the owner accept the scope of repair work stated in the letter, repair work shall begin within 30 days of receipt by the contractor.

    Proposed law provides that any action to enforce any warranty provided for in proposed law shall be subject to a peremptive period of 30 days after the expiration of the appropriate time period.

    Proposed law provides that any warranty imposed pursuant to proposed law and any insurance benefit shall automatically transfer without charge, to a subsequent owner who acquires title of the structure containing the improvement. Any transfer of the structure will not extend the duration of any warranty or insurance coverage.

    Proposed law provides that if a contractor or insurer violates proposed law by failing to perform as required by the warranties and procedures provided in proposed law, any affected owner shall have a cause of action against the contractor or insurer, or both, for actual damages arising out of the violation. The damages with respect to a single defect will not exceed the reasonable cost of repair or replacement necessary to cure the defect and any damage determined to be caused by the defect.

    Proposed law provides that the parties shall provide for the arbitration of any claim in dispute. Any arbitration shall comply with and may be binding only to the extent provided for in proposed law.

    Provisions of proposed law shall apply to contracts entered into after Jan. 1, 2015.

    Effective upon signature of the governor or up lapse of time for gubernatorial action.

    (Adds R.S. 9:2790.1.1-2790.1.11)

  • State Bill: MO H 1086

    Added: Green underlined text
    Deleted: Dark red text with a strikethrough
    Vetoed: Red text
     Links to affected code section
    2014 MO H 1086
    Author: Gosen
    Version: Perfected
    Version Date: 03/10/2014

    SECOND REGULAR SESSION

    [PERFECTED]

    HOUSE BILL NO. 1086

    97TH GENERAL ASSEMBLY

    INTRODUCED BY REPRESENTATIVE GOSEN.

    AN ACT

    To repeal section 407.725, RSMo, and to enact in lieu thereof one new section relating to real estate repair contractors.

    Be it enacted by the General Assembly of the state of Missouri, as follows:

    Section A. Section 407.725 , RSMo, is repealed and one new section enacted in lieu thereof, to be known as section 407.725 , to read as follows:

    407.725. 1. As used in this section, the following terms mean:

    (1) "Residential Contractor", a person or entity in the business of contracting or offering to contract with an owner or possessor of residentialor commercial real estate to repair or replace roof systems or perform any other exterior repair, replacement, construction, or reconstruction work on anyresidential or commercial structure situated upon such real estate;

    (2) "Residential real estate", a new or existing building constructed for habitation by one to four families, including detached garages;

    (3) "Roof system", includes roof coverings, roof sheathing, roof weatherproofing, and insulation.

    2. A residential contractor shall not advertise or promise to pay or rebate all or any portion of any insurance deductible as an inducement to the sale of goods or services. As used in this section, a promise to pay or rebate includes granting any allowance or offering any discount against the fees to be charged or paying the insured or any person directly or indirectly associated with the property any form of compensation, gift, prize, bonus, coupon, credit, referral fee, or other item of monetary value for any reason.

    3. A person who has entered into a written contract with a residential contractor to provide goods or services to be paid under a property and casualty insurance policy may cancel the contract prior to midnight on the fifth business day after the insured party has received written notice from the insurer that all or any part of the claim or contract is not a covered loss under the insurance policy. Cancellation shall be evidenced by the insured party giving written notice of cancellation to the residential contractor at the address stated in the contract. Notice of cancellation, if given by mail, shall be effective upon deposit into the United States mail, postage prepaid and properly addressed to the residential contractor. Notice of cancellation need not take a particular form and shall be sufficient if it indicates, by any form of written expression, the intention of the insured party not to be bound by the contract.

    4. Before entering a contract referred to in subsection 3 of this section, the residential contractor shall:

    (1) Furnish the insured party a statement in boldface type of a minimum size of ten points, in substantially the following form:

    You may cancel this contract at any time before midnight on the fifth business day after you have received written notification from your insurer that all or any part of the claim or contract is not a covered loss under the insurance policy. See attached notice of cancellation form for an explanation of this right.; and

    (2) Furnish each insured a fully completed form in duplicate, captioned "NOTICE OF CANCELLATION", which shall be attached to the contract but easily detachable, and which shall contain, in boldface type of a minimum size of ten points, the following statement:

    NOTICE OF CANCELLATION If you are notified by your insurer that all or any part of the claim or contract is not a covered loss under the insurance policy, you may cancel the contract by mailing or delivering a signed and dated copy of this cancellation notice or any other written notice to (name of contractor) at (address of contractor's place of business) at any time prior to midnight on the fifth business day after you have received such notice from your insurer. If you cancel, any payments made by you under the contract, except for certain emergency work already performed by the contractor, will be returned to you within ten business days following receipt by the contractor of your cancellation notice.

    I HEREBY CANCEL THIS TRANSACTION

    ____________________________

    (date) ____________________________

    (insured's signature).

    5. Within ten days after a contract referred to in subsection 3 of this section has been cancelled, the contractor shall tender to the owner or possessor of residential real estate any payments, partial payments, or deposits made and any note or other evidence of indebtedness. If, however, the contractor has performed any emergency services, acknowledged by the insured in writing to be necessary to prevent damage to the premises, the contractor shall be entitled to the reasonable value of such services. Any provision in a contract referred to in subsection 3 of this section that requires the payment of any fee for anything except emergency services shall not be enforceable against the owner or possessor of residential real estate who has cancelled a contract pursuant to this section.

    6. A residential contractor shall not represent or negotiate, or offer or advertise to represent or negotiate, on behalf of an owner or possessor of residential real estate on 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.

    7. Any violation of this section by a residential contractor shall be considered an unfair practice pursuant to the Missouri merchandising practices act as codified in this chapter.



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