S T A T E   O F   N E W   Y O R K
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                                  7339

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                               May 6, 2015
                               ___________

Introduced by M. of A. BRINDISI -- read once and referred to the Commit-
  tee on Consumer Affairs and Protection

AN  ACT  to amend the general business law, in relation to home improve-
  ment contract provisions

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 3 of section 770 of the general business law is
amended  by  adding  three  new  paragraphs  (f), (g) and (h) to read as
follows:
  (F) 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
HOME IMPROVEMENT CONTRACTOR.
  (G) ANY AUTHORIZED EMPLOYEE OR REPRESENTATIVE  OF  THE  UNITED  STATES
GOVERNMENT, THE STATE OF NEW YORK, OR ANY POLITICAL SUBDIVISION PERFORM-
ING  THE REPAIRING, REMODELING, ALTERING, CONVERTING, OR MODERNIZING OF,
OR ADDING TO, GOVERNMENT PROPERTY.
  (H) ANY PERSON WHO FURNISHES ANY FABRICATED OR FINISHED PRODUCT, MATE-
RIAL, OR ARTICLE  OF  MERCHANDISE  THAT  IS  NOT  INCORPORATED  INTO  OR
ATTACHED  TO  REAL PROPERTY BY THE PERSON SO AS TO BECOME AFFIXED TO THE
RESIDENTIAL PROPERTY.
  S 2. Paragraph (h) of subdivision 1 of  section  771  of  the  general
business  law,  as amended by chapter 32 of the laws of 1989, is amended
to read as follows:
  (h) A notice to the owner that, in addition to any right otherwise  to
revoke  an  offer,  the  owner  may cancel the home improvement contract
until midnight of the [third] FIFTH business day after the day on  which
the  owner has signed an agreement or offer to purchase relating to such
contract.  Cancellation occurs when written notice  of  cancellation  is
given  to  the  home  improvement contractor. Notice of cancellation, if

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10737-01-5
              

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given by mail, shall be deemed given when deposited in a mailbox proper-
ly addressed and postage prepaid. Notice of cancellation shall be suffi-
cient if it indicates the intention  of  the  owner  not  to  be  bound.
Notwithstanding the foregoing, this paragraph shall not apply to a tran-
saction  in  which  the  owner  has  initiated  the contact and the home
improvement is needed to meet a bona fide emergency of  the  owner,  and
the  owner  furnishes  the  home  improvement contractor with a separate
dated and signed personal statement in the owner's handwriting  describ-
ing the situation requiring immediate remedy and expressly acknowledging
and  waiving  the  right  to cancel the home improvement contract within
three business days. For the purposes of this paragraph the term "owner"
shall mean an owner or any representative of an owner.
  S 3. Subdivision 1 of section 771  of  the  general  business  law  is
amended by adding a new paragraph (i) to read as follows:
  (I) THE NAME OF THE INSURER, TYPE OF INSURANCE COVERAGE AS REQUIRED BY
SECTION  SEVEN  HUNDRED SEVENTY-ONE-B OF THIS ARTICLE, AND THE INSURANCE
POLICY LIMITS OBTAINED BY THE HOME IMPROVEMENT CONTRACTOR.
  S 4. Section 771 of the general business  law  is  amended  by  adding
seven new subdivisions 3, 4, 5, 6, 7, 8 and 9 to read as follows:
  3. A HOME IMPROVEMENT CONTRACTOR SHALL NOT ADVERTISE OR PROMISE TO PAY
OR  REBATE  ALL OR ANY PORTION OF ANY INSURANCE DEDUCTIBLE AS AN INDUCE-
MENT TO THE SALE OF GOODS OR SERVICES. AS USED IN THIS SECTION, A  PROM-
ISE  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.
  4. AN OWNER WHO HAS ENTERED  INTO  A  WRITTEN  CONTRACT  WITH  A  HOME
IMPROVEMENT  CONTRACTOR  TO PROVIDE GOODS OR SERVICES TO BE PAID UNDER A
PROPERTY AND CASUALTY INSURANCE POLICY MAY CANCEL THE  HOME  IMPROVEMENT
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 POLI-
CY.  CANCELLATION OCCURS WHEN WRITTEN NOTICE OF CANCELLATION IS GIVEN TO
THE HOME IMPROVEMENT CONTRACTOR.  NOTICE OF CANCELLATION,  IF  GIVEN  BY
MAIL,  SHALL  BE  DEEMED  GIVEN  WHEN  DEPOSITED  IN  A MAILBOX PROPERLY
ADDRESSED AND POSTAGE PREPAID. NOTICE OF CANCELLATION  SHALL  BE  SUFFI-
CIENT  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 HOME
IMPROVEMENT IS NEEDED TO MEET A BONA FIDE EMERGENCY OF  THE  OWNER,  AND
THE  OWNER  FURNISHES  THE  HOME  IMPROVEMENT CONTRACTOR WITH A SEPARATE
DATED AND SIGNED PERSONAL STATEMENT IN THE OWNER'S HANDWRITING  DESCRIB-
ING THE SITUATION REQUIRING IMMEDIATE REMEDY AND EXPRESSLY ACKNOWLEDGING
AND  WAIVING  THE  RIGHT  TO CANCEL THE HOME IMPROVEMENT CONTRACT WITHIN
THREE BUSINESS DAYS. FOR THE  PURPOSES  OF  THIS  SUBDIVISION  THE  TERM
"OWNER" SHALL MEAN AN OWNER OR ANY REPRESENTATIVE OF AN OWNER.
  5. WITHIN TEN DAYS AFTER A CONTRACT REFERRED TO IN SUBDIVISION FOUR OF
THIS  SECTION  HAS BEEN CANCELLED, THE HOME IMPROVEMENT CONTRACTOR SHALL
TENDER TO THE OWNER ANY PAYMENTS, PARTIAL PAYMENTS, OR DEPOSITS MADE AND
ANY NOTE OR OTHER  EVIDENCE  OF  INDEBTEDNESS.  IF,  HOWEVER,  THE  HOME
IMPROVEMENT  CONTRACTOR  HAS  PERFORMED ANY EMERGENCY SERVICES, ACKNOWL-
EDGED BY THE OWNER IN WRITING TO BE NECESSARY TO PREVENT DAMAGE  TO  THE
PREMISES,  THE  HOME  IMPROVEMENT  CONTRACTOR  SHALL  BE ENTITLED TO THE
REASONABLE VALUE OF SUCH SERVICES. ANY PROVISION IN A CONTRACT  REFERRED
TO  IN SUBDIVISION FOUR OF THIS SECTION THAT REQUIRES THE PAYMENT OF ANY

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FEE FOR ANYTHING EXCEPT EMERGENCY  SERVICES  SHALL  NOT  BE  ENFORCEABLE
AGAINST THE OWNER WHO HAS CANCELLED A CONTRACT PURSUANT TO THIS SECTION.
  6. A HOME IMPROVEMENT CONTRACTOR SHALL NOT REQUIRE AN OWNER TO PROVIDE
A DEPOSIT OF MORE THAN ONE-HALF OF THE AGREED UPON CONSIDERATION FOR THE
WORK  AND  MATERIALS.   IN ADDITION, A HOME IMPROVEMENT CONTRACTOR SHALL
NOT MANDATE THAT A PARTICULAR FORM  OF  PAYMENT  BE  MADE  IN  ORDER  TO
COMMENCE PERFORMANCE OF THE HOME IMPROVEMENT.
  7.  A  HOME  IMPROVEMENT  CONTRACTOR  SHALL  NOT  ABANDON,  OR FAIL TO
PERFORM, WITHOUT JUSTIFICATION, ANY HOME IMPROVEMENT CONTRACT, NOR SHALL
THE HOME IMPROVEMENT CONTRACTOR DEVIATE FROM OR DISREGARD PLANS OR SPEC-
IFICATIONS IN ANY MATERIAL RESPECT WITHOUT THE  CONSENT  OF  THE  OWNER.
FURTHERMORE, A HOME IMPROVEMENT CONTRACTOR SHALL ABIDE BY THE APPLICABLE
BUILDING  CODE  FOR  THE  JURISDICTION WHERE THE RESIDENTIAL PROPERTY IS
LOCATED.
  8. A HOME IMPROVEMENT CONTRACTOR SHALL NOT FAIL TO PAY  FOR  MATERIALS
OR  SERVICES  RENDERED  IN  CONNECTION  WITH A HOME IMPROVEMENT CONTRACT
WHERE THE CONTRACTOR HAS RECEIVED SUFFICIENT FUNDS AS  PAYMENT  FOR  THE
PARTICULAR  CONTRACT FOR WHICH THE SERVICES OR MATERIAL WERE RENDERED OR
PURCHASED.
  9. A HOME IMPROVEMENT CONTRACTOR  SHALL  NOT  PERFORM  THE  REPORTING,
ADJUSTING,  OR  NEGOTIATING  OF 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.
  S 5. The general business law is amended by adding a new section 771-b
to read as follows:
  S 771-B. INSURANCE REQUIREMENTS FOR HOME IMPROVEMENT CONTRACTORS. 1. A
HOME IMPROVEMENT CONTRACTOR SHALL PROVIDE TO THE OWNER ADEQUATE PROOF OF
INSURANCE OF THE FOLLOWING TYPES AND IN THE FOLLOWING AMOUNTS:
  (A)  A  CERTIFICATE OF WORKERS' COMPENSATION COVERING ALL EMPLOYEES OF
THE HOME IMPROVEMENT CONTRACTOR. IF THE HOME IMPROVEMENT CONTRACTOR DOES
NOT HAVE ANY EMPLOYEES, THEN THE CONTRACTOR MUST PROVIDE  A  CERTIFICATE
OF  ATTESTATION  EXEMPTION  (CE-200) FORM FROM THE WORKERS' COMPENSATION
BOARD.
  (B) CERTIFICATES OF GENERAL LIABILITY AND PROPERTY DAMAGE INSURANCE IN
THE AMOUNT OF ONE HUNDRED THOUSAND DOLLARS  PER  PERSON,  THREE  HUNDRED
THOUSAND  DOLLARS  PER  OCCURRENCE FOR BODILY INJURY; AND FIFTY THOUSAND
DOLLARS PER OCCURRENCE AND IN THE AGGREGATE FOR PROPERTY DAMAGE.
  2. THE PROVISIONS OF THIS SECTION  SHALL  APPLY  TO  HOME  IMPROVEMENT
CONTRACTS  PERFORMED  IN  ALL POLITICAL SUBDIVISIONS THAT DO NOT CONTAIN
ANY INSURANCE REQUIREMENTS FOR SUCH CONTRACTS.
  S 6. This act shall take effect on the one hundred eightieth day after
it shall have become a law.