S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7531
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 9, 2019
                                ___________
 
 Introduced  by  M.  of  A.  BUTTENSCHON -- read once and referred to the
   Committee on Consumer Affairs and 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 ASSEM-
 BLY, 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 PERFORM-
 ING  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
              

 A. 7531                             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 ARTI-
 CLE  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 INSUR-
 ANCE 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  COMPEN-
 SATION,  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 POST-
 AGE PREPAID. NOTICE OF CANCELLATION SHALL BE SUFFICIENT IF IT  INDICATES
 THE  INTENTION OF THE OWNER NOT TO BE BOUND. NOTWITHSTANDING THE FOREGO-
 ING, 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 DEPOS-
 IT FOR THE WORK AND MATERIALS. A ROOFING CONTRACTOR  SHALL  NOT  MANDATE
 THAT  A PARTICULAR FORM OF PAYMENT BE MADE IN ORDER TO COMMENCE PERFORM-
 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.

 A. 7531                             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 COMPEN-
 SATION  FOR  THE REFERRAL TO ANY ENTITY THAT REPORTS, ADJUSTS OR NEGOTI-
 ATES 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.