A BILL TO BE ENTITLED
AN ACT to provide consumer protections related to roofing repair contractors.
The General Assembly of North Carolina enacts:
SECTION 1.  Chapter 75 of the General Statutes is amended by adding a new Article to read:
"Article 9.
"Roofing Repair Contractors.
"§ 75‑150.  Definitions.
The following definitions apply in this Article:
(1)	Consumer. – The person hiring a roofing repair contractor, including the property owner, person in legal possession of the property, or any agent thereof, including the State and any of its political subdivisions.
(2)	Emergency services. – Any repair needed as the result of a serious, unexpected, or dangerous situation that requires immediate action.
(3)	Roofing repair. – Repairs to an existing roofing system, including a total replacement of the existing roofing system.
(4)	Roofing repair contractor. – A person engaged in the business of residential roofing services in North Carolina for a fee or who offers to engage in or solicits roofing‑related services, including construction, installation, renovation, repair, maintenance, alteration, or waterproofing. The term shall not include any of the following:
a.	A licensed general contractor.
b.	A person engaged in the demolition of a structure or the cleanup of construction waste and debris that contains roofing material.
c.	A person working under the direct supervision of a roofing repair contractor who is hired either as an employee, day laborer, or contract laborer.
d.	A person providing roofing‑related services as a subcontractor, regardless of tier, under a licensed North Carolina general contractor.
"§ 75‑151.  Construction and application of Article.
(a)	The requirements of this Article shall be construed to be in addition to, and not in lieu of, any required licensure of persons for certain professions and trades in this State. This Article shall not be deemed to conflict with or affect the authority of any State or local agency, board, or commission whose duty and authority is to administer or enforce any law or ordinance or to establish, administer, or enforce any policy, rule, qualification, or standard for any trade or profession.
(b)	The requirements of this Article apply to roofing repairs with an estimated cost of more than one thousand dollars ($1,000). The Commissioner of Insurance may increase the cost threshold contained in this subsection no more than once every three years, based on market conditions or inflation. The amount of any single increase to the cost threshold by the Commissioner of Insurance may not exceed one hundred dollars ($100.00).
"§ 75‑152.  Reserved.
"§ 75‑153.  Written contract required.
(a)	All contracts for roofing repair shall be in writing. The written contract shall contain at least all of the following:
(1)	The name, mailing address, physical address, if different from the mailing address, and phone number of the roofing contractor. If the roofing contractor uses e‑mail for business purposes, the contract shall also include that e‑mail address.
(2)	The name of the consumer.
(3)	The physical location of the property subject to the roofing repair and a brief description of the structure to be repaired.
(4)	A copy of a repair estimate that addresses all of 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, hourly labor rate, and the number of hours for each item of repair or a unit cost basis.
c.	A statement as to whether or not the property was inspected in any manner prior to the preparation of the estimate and a description of the nature of that inspection if an inspection was done, including a statement of whether or not the roof was physically accessed.
(5)	Language that is the same language as that principally used in the sales presentation, oral or otherwise, to the consumer.
(6)	A clear indication of the date on which the consumer actually signs the contract.
(7)	A statement indicating that the roofing repair contractor shall hold in trust any payment from the consumer until the roofing repair contractor has delivered roofing materials at the property site or has performed a majority of the roofing work on the property, whichever occurs first.
(8)	A provision stating that, upon acceptance of the terms of the roofing contract by the consumer, the roofing contractor shall provide a certificate of liability insurance to the consumer that is valid for the period for which the work is to be performed.
(b)	Any written contract for roofing repairs for which the consumer anticipates the proceeds of any insurance policy will be used to pay, in whole or in part, for performance under the contract and the roofing repair contractor is aware of the source of the funds to pay for performance under the contract, shall also include all of the following:
(1)	A disclosure that the consumer is responsible for payment for any work performed if the insurer should deny payment or coverage on any part of the loss.
(2)	A statement that the roofing repair contractor has made no assurances that the claimed loss will be covered by an insurance policy.
(3)	In immediate proximity to the space reserved for the signature of the consumer, in bold‑face type of a minimum size of 10 point, a statement in substantially the following form:
"You may cancel this contract or transaction at any time prior to midnight of the third business day after you have received written notification from your insurer that all or any part of the claim or contract is not a covered loss under the insurance policy. See the attached Notice of Cancellation form for an explanation of this right."
(4)	A separate document as an attachment, which is easily detachable and is a form in duplicate that is captioned "Notice of Cancellation." The notice of cancellation form shall contain, in 10‑point bold‑face type, the following information and statements in the same language as that used in the contract:
"Notice of Cancellation
(enter date of transaction)
(date)
On (enter date of notice), I have received notice from my insurer that all or any part of my insurance claim will not be a covered loss under the insurance policy and I hereby cancel our contract for roofing. I request that all payments made by me under our roofing repair contract to be returned to me within 10 business days following your receipt of this cancellation notice. I also request that any security interest arising out of the transaction be cancelled.
I HEREBY CANCEL THIS TRANSACTION.
____________
(date)
____________
(consumer's signature)"
"§§ 75‑154  through 75‑156.  Reserved.
"§ 75‑157.  Limited right to cancel contract if not covered by insurance.
(a)	Right to Cancel. – A consumer who has entered into a written contract for roofing repair with a roofing repair contractor to provide materials, labor, or services to be paid from the proceeds of an insurance policy may cancel the written contract at any time prior to midnight of the third business day after the consumer has received written notification from the insurer that the insurer will not be paying a claim for the roofing repair under the insurance policy covering the property subject to the roofing repair.
(b)	Procedure for Cancellation. – Cancellation shall be evidenced by the consumer giving written notice of cancellation to the roofing repair contractor at the mailing, physical, or e‑mail address stated in the contract. Notice of cancellation, if delivered to the mailing address provided by the roofing repair contractor, is effective upon deposit into the United States mail, postage prepaid, and properly addressed to the roofing repair contractor. Notice of cancellation need not be on the form required to be attached to the written contract under G.S. 75‑153(b) or take a particular form. The notice of cancellation is sufficient if it indicates, by any form of written expression, the intention of the consumer not to be bound by the contract and provides information as to when the consumer received notice from the insurer of failure to pay.
(c)	Refund of Payments to Consumer. – Within 10 days after a contract for roofing repairs has been cancelled, the roofing repair contractor shall tender to the consumer any payments, partial payments, or deposits made by the consumer and cancel any note or other evidence of indebtedness.
(d)	Emergency Services. – If the roofing repair contractor has performed any emergency services, acknowledged by the consumer in writing to be necessary to prevent further damage to the premises, the roofing repair contractor is entitled to the reasonable value of such emergency services. Any provision in a written contract for roofing repairs that in the event of cancellation requires the payment of any fee for anything except emergency services shall constitute a violation of G.S. 75‑1.1 and shall not be enforceable against any consumer who has cancelled a contract under this section.
"§§ 75‑158  through 75‑159.  Reserved.
"§ 75‑160.  Prohibited conduct.
(a)	A roofing repair contractor shall not do any of the following:
(1)	Advertise or otherwise promise or offer to pay, or pay, all or any portion of any insurance deductible as an inducement to the sale of any materials, labor, and/or services.
(2)	Offer, or provide, any upgraded work, material, or product, grant any allowance or offer any discount against the fees to be charged or pay the consumer any form of compensation, gift, prize, bonus, coupon, credit, referral fee, trade‑in or trade‑in payment, advertising, or other fee or payment as an inducement to the sale of any materials, labor, or services.
(3)	Offer, or provide, anything of value in exchange for permitting the roofing repair contractor to display a sign or any other type of advertisement at the consumer's premises.
(4)	With respect to any insurance claim in connection with the repair or replacement of roof systems, or the performance of any other exterior repair, replacement, construction, or reconstruction work, do any of the following:
a.	Seek to obtain or obtain a power of attorney from or on behalf of a consumer.
b.	Offer to report or adjust a claim on behalf of a consumer.
c.	Represent or negotiate, obtain or attempt to obtain, an assignment of claims, rights, benefits, or proceeds from or on behalf of a consumer.
d.	Offer or advertise to represent or negotiate, obtain, or attempt to obtain an assignment of claims, rights, benefits, or proceeds.
(b)	An adjuster as defined in G.S. 58‑33‑10(2) or a public adjuster as defined in G.S. 58‑33A‑5(7) shall not act as a roofing repair contractor.
"§§ 75‑161 through 75‑165.  Reserved.
"§ 75‑166.  Violation an unfair and deceptive trade practice.
A violation of this Article shall constitute an unfair and deceptive trade practice under G.S. 75‑1.1."
SECTION 2.  This act becomes effective October 1, 2019, and applies to contracts for roofing repair entered into on or after that date.