What's happening
This bill defines "roofing contractor" and establishes new contract, insurance, and conduct requirements for roofing work in New York.
Why it matters
Expands consumer protections. The bill requires detailed contracts for roofing work, including clear disclosure of insurance coverage and limits, which could help homeowners better understand their rights and what to expect before work begins.
Limits predatory sales practices. By prohibiting roofing contractors from offering to pay or rebate insurance deductibles and banning inducements like gifts or referral fees, the bill aims to reduce deceptive marketing and sales tactics that can lead to fraud or inflated claims.
Empowers homeowners with cancellation rights. Homeowners can cancel a contract within three business days after being notified by their insurer that their claim isn’t fully covered, improving their ability to avoid financial loss if insurance doesn’t pay out as expected.
Raises contractor accountability. The bill sets clear standards for contractor behavior—such as requiring insurance, barring payment demands before materials are delivered, and prohibiting abandonment of jobs or deviation from plans without owner consent—which could reduce disputes, protect against unfinished work, and ensure contractors meet local building codes.
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Who cares
Property owners hiring roofing contractors
The bill would prohibit required deposits and give owners a cancellation right when an insurer denies coverage for all or part of a claim, subject to an emergency-work exception.
Roofing, gutter, downspout and siding contractors
The bill would require written contracts and insurance disclosures, restrict payment schedules and prohibit insurance-deductible rebates and handling claims on owners’ behalf.
Property and casualty insurers
The bill would bar contractors from reporting, adjusting or negotiating owners’ claims while allowing them to share technical knowledge when an insurer initiates contact.
Material suppliers and subcontractors
The bill would prohibit roofing contractors from withholding payment for materials or services when they have received sufficient funds for that contract.
Headline styles
Protect Homeowners from Roofing Scams
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 38
1 Co-sponsor
History
- Signed chap.550
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.285
- Substituted for A7531
- Referred to codes
- Delivered to assembly
- Passed senateVote 58–4
- Ordered to third reading cal.1282
- Committee discharged and committed to rules
- Referred to consumer 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.
Regulate Roofing Contracts
Assembly Floor Calendar · Sponsor Marianne Buttenschon
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1405
2019-2020 Regular Sessions
IN SENATE
January 14, 2019
Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection
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.
(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:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06490-01-9
S. 1405 2
§ 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 performance 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.
S. 1405 3
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.
Sponsor's memo
Title of bill
An act to amend the general business law, in relation to roofing contract provisions
Purpose or general idea of bill
This bill is intended to curtail the practice of unscrupulous persons posing as legitimate roof repair contractors offering roof repair services who either perform substandard work that must be done again or never even perform the services. These persons, frequently referred to as "storm chasers", often descend on an area after a catastrophic wind/hail storm or any natural disaster.
Summary of provisions
Section 1. Amend General Business Law section 770 by adding a new subdi- vision 8 to define a "roofing contractor".
Read the full memo (825 words)
Section 2. Amend the General Business Law by adding a new section 771-b to outline the requirements and responsibilities of roofing contractors.
Require a roofing contractor to enter into a written contract with a property owner before engaging in roof repair services, this contract must follow all of the requirements set forth in the law for a home improvement contractor.
A new subdivision 2 shall prohibit roofing contractors from advertising or promising to pay or rebate any or all of an insurance deductible as an inducement to the sale of any goods or services. Subdivision 3 provides a homeowner the right to cancel a roofing improvement contract within three business days after notice from their insurer that the claim for repairs has been denied in whole or part.
Subdivision 4 stipulates that an owner shall not be responsible for any payments after the contract has been cancelled except for work done before cancellation. This right would not apply to emergency repairs where the work was initiated by the owner to meet a bona fide emergency of the owner and the roofing contractor is entitled to the reasonable value of such repairs.
Subdivision 5 prohibits a roofing contractor from requiring a deposit in excess of 50% of the total contract amount.
Subdivision 6 prohibits a roofing contractor from abandoning or failing to perform, without justification, a roofing improvement contract it has entered into, nor can the contractor materially deviate from or disre- gard the plans or specifications for the work.
Subdivision 7 stipulates that a roofing contractor shall not fail to pay for materials or services rendered when the contractor has received sufficient funds as payment for the contract applicable to those materi- als and services.
Subdivision 8 bars a roofing contractor from performing any reporting, adjusting or negotiating of a claim for the owner, nor can the contrac- tor receive compensation for a referral to an entity that performs such claim services.
Subdivision 9 implements minimum insurance requirements for roofing contractors. These requirements would only apply to roofing improvement contracts performed in political subdivisions that do not contain any insurance requirements for roofing contracts. The roofing contractor would have to provide a valid certificate of workers' compensation insurance coverage (or if a sole proprietor a certificate of exemption), a certificate of general liability and property damage insurance with limits of at least $100,000 per person/$300,000 per occurrence for bodi- ly injury and at least $50,000 each occurrence and aggregate for proper- ty damage.
Section 3. Effective date is 180 days after enactment.
Justification
While the vast majority of roofing contractors are honest and reliable business persons, there is a group of people who purport to be legiti- mate contractors but are actually con artists. These illegitimate groups of people are commonly known as "storm chasers" who often come into an area right after a natural disaster promising to quickly and efficiently restore the roofs of people who have suffered damage and loss from the disaster. Storm chasers end up either performing extremely substandard work or do not even perform the work. These con artists will often walk door to door in a neighborhood and use high-pressure sales tactics to compel consumers into signing roof repair contracts. A particular target for storm chasers is the elderly, especially those who have paid off their mortgage because if the mortgage is not paid off then the insurer must include the mortgage holder (usually a bank) on the check.
In sum, this proposed legislation would establish a prohibition on roof- ing contractors advertising or promising to pay or rebate all or any part of an insurance deductible as an inducement to the sale of any goods or services. The measure allows a residential property owner to cancel a roofing contract within 3 business days after receiving notice from the owner's insurer that the claim has been denied in whole or in part. Within 10 days after cancellation, the roofing contractor is required to return any payments made by the insured and note or evidence of indebtedness. The roofing contractor would be entitled to compen- sation for their work on emergency repairs.
Prior legislative history
2017-18: S3897b/A3246b - AMENDED CONSUMER PROTECTION/
Fiscal implications
None.
Effective date
This act shall take effect 180 days after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.