What's happening
This bill defines "roofing contractor" and establishes new requirements and responsibilities for roofing contracts in New York State.
Why it matters
Expands who is regulated. By defining "roofing contractor" broadly, the bill ensures that not just traditional companies, but also nonresidents, independent contractors, day laborers, and subcontractors performing roofing, gutter, downspout, or siding work for a fee are subject to these regulations. This closes loopholes and extends consumer protections to a wider range of work arrangements.
Strengthens contract transparency and consumer rights. Roofing contracts must now include specific insurance details, and consumers receive clear rights to cancel contracts if their insurance claim is denied. This empowers homeowners to make informed decisions and avoid being locked into unwanted obligations after an insurance denial.
Targets misleading and exploitative practices. The bill prohibits contractors from advertising or offering to cover insurance deductibles as an inducement for business, and bans kickbacks or referral fees for insurance claim work. This aims to reduce insurance fraud and deceptive marketing tactics that can raise costs for all consumers.
Mandates fair payment practices and proofs of insurance. Contractors cannot demand upfront deposits before work begins (except for material costs upon delivery) and must provide proof of adequate insurance. This reduces the risk of homeowners losing money to unscrupulous contractors and ensures financial responsibility and worker protection on roofing projects.
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Who cares
Headline styles
Regulate Roofing Contracts
Plain English, a few words. Used as the page title.
Sponsors
17 Co-sponsors
5 Multi-sponsors
History
- Committed to rules
- Returned to senate
- Repassed assembly
- Amended on third reading 3246b
- Vote reconsidered - restored to third reading
- Returned to assembly
- Recalled from senate
- Referred to consumer protection
- Delivered to senate
- Passed assembly
- Ordered to third reading cal.260
- Returned to assembly
Show 12 earlier actions
- Died in senate
- Referred to rules
- Delivered to senate
- Passed assembly
- Ordered to third reading rules cal.94
- Rules report cal.94
- Reported
- Reported referred to rules
- Reported referred to codes
- Print number 3246a
- Amend (t) and recommit to consumer affairs and protection
- Referred to consumer affairs and protection
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Protect Homeowners from Roofing Scams
In Senate Committee · Consumer Protection · Sponsor David Carlucci
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3246--B Cal. No. 260
2017-2018 Regular Sessions
IN ASSEMBLY
January 27, 2017
Introduced by M. of A. BRINDISI, BLAKE, GALEF, HOOPER, HYNDMAN, LUPARDO, McDONALD, MOSLEY, OTIS, SANTABARBARA, SKOUFIS, SOLAGES, STECK, TITONE, D'URSO, QUART, MORELLE -- Multi-Sponsored by -- M. of A. ABBATE, COOK, HIKIND, RICHARDSON, SIMON -- read once and referred to the Committee on Consumer Affairs and Protection -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- passed by Assembly and delivered to the Senate, recalled from the Senate, vote reconsidered, bill amended, ordered reprinted, retaining its place on the order of third reading
AN ACT to amend the general business law, in relation to roofing contract provisions
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 770 of the general business law is amended by adding a new subdivision 8 to read as follows:
8. "Roofing contractor" means a person, firm or corporation, including but not limited to, a person that is a nonresident roofing contractor, independent contractor, day laborer or subcontractor engaged in the business of roofing, gutter, downspout or siding services for a fee or who offers to engage in or solicits roofing-related services, including construction, installation, renovation, repair, maintenance, alteration or waterproofing. This definition 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 engaged in building a new home or housing development. "Roofing contractor" shall not include:
(a) an owner or farm property owner who physically performs, or has employees who perform repairing, remodeling, altering, converting, or modernizing of, or adding to, their own dwelling or another structure located on the property owned by the person without the assistance of a roofing contractor.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01971-04-8
A. 3246--B 2
(b) any authorized employee or representative of the United States government, the state of New York, or any political subdivision performing the repairing, remodeling, altering, converting, or modernizing of, or adding to, government property.
§ 2. The general business law is amended by adding a new section 771-b to read as follows:
§ 771-b. Responsibilities of roofing contractors. 1. Every roofing contractor shall enter into a written contract with an owner pursuant to all of the provisions of section seven hundred seventy-one of this article before engaging in the business of roofing, gutter, downspout or siding services for such owner. In addition, the contract entered into under this section shall contain the name of the insurer, type of insurance coverage as required by subdivision nine of this section, and the insurance policy limits obtained by the roofing contractor.
2. A roofing 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. An owner who has entered into a written contract with a roofing 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 third 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 occurs when written notice of cancellation is given to the roofing contractor. Notice of cancellation, if given by registered or certified mail, shall be deemed given when deposited in a mailbox properly addressed and postage prepaid. Notice of cancellation shall be sufficient if it indicates the intention of the owner not to be bound. Notwithstanding the foregoing, this subdivision shall not apply to a transaction in which the owner has initiated the contact and the roofing contract is needed to meet a bona fide emergency of the owner, and the owner furnishes the roofing contractor with a separate dated and signed personal statement in the owner's handwriting describing the situation requiring immediate remedy and expressly acknowledging and waiving the right to cancel the roofing contract within three business days. For the purposes of this subdivision the term "owner" shall mean an owner or any representative of an owner.
4. Within ten days after a contract referred to in subdivision three of this section has been cancelled, the roofing contractor shall tender to the owner any payments, partial payments, or deposits made and any note or other evidence of indebtedness. If, however, the roofing contractor has performed any emergency services, acknowledged by the owner in writing to be necessary to prevent damage to the premises, the roofing contractor shall be entitled to the reasonable value of such services. Any provision in a contract referred to in this subdivision that requires the payment of any fee for anything except emergency services shall not be enforceable against the owner who has cancelled a contract pursuant to this section.
5. A roofing contractor shall not require an owner to provide a deposit for the work and materials. A roofing contractor shall not mandate that a particular form of payment be made in order to commence perform-
A. 3246--B 3
ance of the home improvement. A roofing contractor may invoice for payment of the materials portion of the project upon delivery of the materials to the owner of the property. The material cost must be disclosed to the property owner in writing in advance of payment. A roofing contractor may invoice the remainder of the project upon successful completion of all contracted work.
6. A roofing contractor shall not abandon, or fail to perform, without justification, any roofing contract, nor shall the roofing contractor deviate from or disregard plans or specifications in any material respect without the consent of the owner. A roofing contractor shall abide by the applicable building code for the jurisdiction where the residential property is located.
7. A roofing contractor shall not fail to pay for materials or services rendered in connection with a roofing contract where the contractor has received sufficient funds as payment for the particular contract for which the services or material were rendered or purchased.
8. A roofing contractor shall not perform the reporting, adjusting, or negotiating a claim on behalf of the owner and shall not receive compensation for the referral to any entity that reports, adjusts or negotiates a claim on behalf of an owner. Nothing herein prevents a roofing contractor from communicating with an insurance company representative and sharing his or her technical knowledge when the insurer initiates the communication.
9. (a) A roofing contractor shall provide to the owner adequate proof of insurance of the types and amounts set forth in this subdivision:
(1) A certificate of workers' compensation covering all employees of the roofing contractor. If the roofing contractor does not have any employees, then the contractor must provide a certificate of attestation exemption (CE-200) form from the workers' compensation board; and
(2) Certificates of general liability and property damage insurance in the amount of one hundred thousand dollars per person, three hundred thousand dollars per occurrence, bodily injury; and fifty thousand dollars for each occurrence and aggregate, property damage.
(b) The insurance requirements set forth in this subdivision shall apply to roofing contracts performed in all political subdivisions that do not contain any insurance requirements for such contracts.
§ 3. This act shall take effect on the one hundred eightieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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