|
REFERENCE TITLE: residential roofing repair contracts |
|
State of Arizona House of Representatives Fiftieth Legislature Second Regular Session 2012
|
|
HB 2091 |
|
|
|
Introduced by Representative Weiers J
|
AN ACT
amending title 32, chapter 10, article 3, Arizona Revised Statutes, by adding section 32‑1158.02; relating to contractors.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 32, chapter 10, article 3, Arizona Revised Statutes, is amended by adding section 32-1158.02, to read:
32-1158.02. Roofing repair; residential construction contracts
A. In addition to the requirements of section 32-1158, a licensed contractor who enters into a contract for the repair or replacement of a residential roof with a purchaser who resides in the residence or who intends to reside in the residence after the completion of the contract shall include at least the following provisions if the needed repair or replacement is a result of a casualty loss resulting from storm damage:
1. A provision providing the purchaser the opportunity to request standard contractor's payment and performance bonds in a form approved by the registrar, securing the completion of the work and payment for services and materials. The cost of the payment and performance bond shall be paid by the purchaser of the roofing repair or replacement, and the contractor shall not charge a surcharge or a service charge.
2. A statement in at least ten-point bold type in substantially the following form: "you may cancel this contract at any time within seventy‑two hours after you have been notified that your insurer has denied your claim to pay for the goods and services to be provided under this contract."
3. A statement in at least ten-point bold type in substantially the following form: "you may cancel this contract at any time, for any reason, within ten business days after signing this contract."
4. A copy of a repair estimate that contains 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, the hourly labor rate and the number of hours for each item of repair on a unit cost basis.
(c) If the damaged areas are not included in the repair estimate, a specification of those areas and any reason for their exclusion from the repair estimate.
(d) Whether or not the property was inspected before the preparation of the estimate and the nature of that inspection, specifically whether the roof was physically accessed.
(e) That a contractor has made no assurances that the claimed loss will be covered by an insurance policy.
(f) That the policyholder is responsible for payment for any work performed if the insurer should deny payment or coverage for any part of the loss.
B. A residential owner of a property or casualty insurance policy has the right to cancel the contract described in subsection A of this section within seventy-two hours after the insured owner has been notified by the insurer that the claim has been denied.
C. In addition to the right prescribed in subsection b of this section, the insured owner of a residence has the right to cancel the contract described in subsection a of this section for any reason within ten business days after signing the contract. A cancellation shall be evidenced by the insured owner giving written notice of cancellation to the contractor's address stated in the contract. Notice of cancellation does not need to be in a particular form except that the notice must indicate in writing the intent of the insured owner not to be bound by the contract.
D. Within ten days after a contract has been canceled pursuant to this section, the contractor must tender to the insured owner any payments made by the insured owner and any note or other evidence of indebtedness except that if the contractor has performed any emergency services, the contractor is entitled to receive reasonable compensation for the services if the insured owner has received a detailed description and itemization of the charges for those services.
E. The down payment section on the execution of a contract entered into pursuant to this section shall not require more than a one thousand dollar payment.
F. Any changes, additions or deletions to the work order specified in the original contract shall be included in a written change order that is signed by the homeowner.
G. A contractor's failure to comply with this section is a violation of section 32-1154, subsection a.
H. An individual or contractor who prepares a repair estimate for roofing services in anticipation of making an insurance claim must disclose the following information to the insured owner:
1. A precise description and location of all damage claimed or included on the repair estimate.
2. Documentation to support the damage claimed on the estimate, including photographs, digital images or another medium that is clearly labeled indicating the specific slope and area on the dwelling.
3. A detailed description and itemization of any emergency repairs already completed by the contractor.
4. If damaged areas are not included in the repair estimate, a specification of those areas and any reason for their exclusion from the repair estimate.
5. A provision stating whether or not the property was inspected before the PREPARATION of the ESTIMATE and whether the roof was physically accessed.
6. A provision stating that the contractor has made no assurances that the claimed loss will be covered by an insurance policy.
I. A contractor providing roofing services shall not act on behalf of an insured owner in negotiating for the settlement of a claim for loss or damage under any policy of insurance covering the insured owner's residence.
J. This section shall not limit the following individuals from contacting and negotiating with the insured owner:
1. A government official engaged in the performance of official duties.
2. An attorney engaged in the performance of professional duties.
3. Licensed insurers and licensed insurance producers while engaged in the performance of their duties in connection with insurance transactions.
4. Any salaried office employee performing exclusively clerical or administrative duties related to the business regulated by this section.
5. Photographers, estimators, appraisers or engineers employed exclusively for the purpose of furnishing technical assistance.
6. A private investigator who is licensed pursuant to chapter 24 of this title.
7. A full-time salaried employee of a property owner or property management company who is retained by a property owner, who has not been hired for the purpose of handling a specific claim resulting from a fire or casualty loss and who acts at the sole discretion of the property owner or management company regarding a claim related to the owner's property.