As Introduced
132nd General Assembly
Regular Session S. B. No. 115
2017-2018
Senators Bacon, Hackett
A BILL
To enact sections 4740.20, 4740.21, 4740.22, 4740.23, 4740.24, 4740.25, 4740.26, 4740.27, and 4740.28 of the Revised Code to require the registration of roofing contractors.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 4740.20, 4740.21, 4740.22, 4740.23, 4740.24, 4740.25, 4740.26, 4740.27, and 4740.28 of the Revised Code be enacted to read as follows:
Sec. 4740.20. As used in sections 4740.20 to 4740.28 of the Revised Code:
(A) "Board" means the Ohio construction industry licensing board.
(B) "Consumer" means any individual seeking the services of a roofing contractor.
(C) "Contract" includes the entire cost of the construction undertaking, including labor, materials, rentals, and all direct and indirect project expenses.
(D) "Person" includes any individual, partnership, corporation, business, trust, or other legal entity.
(E) "Roofing contract" means a contract issued under sections 4740.20 to 4740.28 of the Revised Code to provide roofing, gutter, downspout, and siding services.
(F) "Roofing contractor" means a person who has a certificate of registration under sections 4740.20 to 4740.28 of the Revised Code.
(G) "Roofing, gutter, downspout, and siding services" means the installation, renovation, repair, maintenance, alteration, or waterproofing of any roof, gutter, downspout, or siding product with regard to a residential premises.
Sec. 4740.21. (A) Sections 4740.20 to 4740.28 of the Revised Code shall apply to any person seeking to provide roofing, gutter, downspout, and siding services, including any nonresident contractor, independent contractor, day laborer, or subcontractor.
(B) Any roofing contract for an amount greater than seven hundred fifty dollars shall be in writing and shall include all of the following documentation and information:
(1) The complete agreement between the consumer and the roofing contractor, with a clear description of any other documents that are or will be incorporated into the contract;
(2)(a) The roofing contractor's full legal name, business names, principal address, telephone number, electronic mail address, if available, and registration number issued pursuant to section 4740.24 of the Revised Code;
(b) A post office box shall not be considered a roofing contractor's principal address.
(3) The name of the consumer's insurer, if applicable;
(4) A description of insurance coverage obtained by the roofing contractor as required by section 4740.25 of the Revised Code, including the insurance policy limits and the name of the insurer;
(5) An itemized description of the work to be done and the materials to be used in performance of the contract;
(6) The total itemized amount agreed to be paid for the work to be performed under the contract, including all change orders and work orders;
(7)(a) A description of who will be performing the work, including any subcontractors, independent contractors, day laborers, and any others meeting the definition of roofing contractor;
(b) For each individual or entity listed under division (B)(7)(a) of this section, the roofing contractor shall provide all of the following information:
(i) Full legal name of the individual or business name of the entity, as applicable;
(ii) Principal address, except a post office box shall not be considered a principal address;
(iv) Electronic mail address, if available;
(v) Roofing contractor registration number issued pursuant to section 4740.24 of the Revised Code.
(8) An approximation of the cost expected to be borne by the consumer, if some or all of the cost will be paid for by the consumer's insurer;
(9) A provision allowing payment to be made by cash, check, or credit card, at the consumer's discretion;
(10) The signatures of all persons party to the contract;
(11) In immediate proximity to the space reserved for the signature of the consumer in boldface type of a minimum size of ten points, a statement in substantially the following form:
"You may cancel this contract at any time within three business days of entering into this contract with your contractor. If this contract is related to an insurance claim, you may also cancel the contract with your contractor within three business days of being notified that your insurer has denied all or any part of a claim or loss related to the contract. See the attached notice of cancellation form for an explanation of this right."
(C) A roofing contract shall be accompanied by a fully completed form in duplicate, captioned "NOTICE OF CANCELLATION," which shall be attached to the contract but easily detachable, and that shall contain, in boldface type of a minimum size of ten points, the following statement:
You may cancel this contract at any time within three business days of entering into the contract with your contractor. If this contract is in relation to an insurance claim, you may also cancel the contract with your contractor within three business days of being notified that your insurer has denied all or any part of your claim or loss. You may cancel the contract by mailing or delivering a signed and dated copy of this cancellation notice or any other written notice to (name of roofing contractor) at (address of roofing contractor's place of business) at any time within three business days of receiving such notice from your insurer. You may also send a cancellation notice through electronic mail. If you cancel, any payments made by you under the contract will be returned to you, less a reasonable charge for services and materials provided, within ten business days following receipt by the contractor of your cancellation notice, and any security interest arising out of the transaction will be canceled. You shall retain a copy of the notice of cancellation that is transmitted to the contractor.
I HEREBY CANCEL THIS TRANSACTION
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(D) At the time of signing of a roofing contract, the roofing contractor shall provide to the consumer a copy of the contract signed by both the contractor and the consumer. No work shall begin prior to the signing of the contract and transmittal to the consumer of a copy of the contract.
Sec. 4740.22. (A)(1) A consumer has the right to rescind a roofing contract within three business days after the consumer signs the contract.
(2) A consumer who has entered into a written contract with a roofing contractor to provide goods or services to be paid from the proceeds of a property or casualty insurance policy claim may also cancel the contract at any time prior to midnight of the third business day after he or she has received written notification from the insurer that all or any part of the claim in question is not covered under the insurance policy.
(B)(1) Cancellation shall be evidenced by the consumer giving written notice of cancellation to the roofing contractor at the physical or electronic mail address stated in the contract.
(2) Notice of cancellation, if given by physical mail shall be effective upon deposit into the United States mail, postage prepaid, and properly addressed to the roofing contractor.
(3) Notice of cancellation need not take a particular form and shall be sufficient if it indicates, by any form of written expression, the intention of the consumer not to be bound by the contract. The consumer shall retain a copy of the cancellation notice.
Sec. 4740.23. Within ten days after a roofing contract has been canceled, the roofing contractor shall tender to the consumer or possessor of the residential premises in question any payments, partial payments, or deposits made by the consumer and any note of indebtedness. If, however, the contractor has performed services or provided materials that have been acknowledged by the consumer in writing, the contractor shall be entitled to the reasonable value of such services or materials.
Sec. 4740.24. (A) On or after thirty days after the effective date of this section, no person shall undertake, offer to undertake, or agree to perform roofing, gutter, downspout, or siding services unless that person is registered with and approved by the Ohio construction industry licensing board as a roofing contractor.
(B) On or after thirty days after the effective date of this section, any person who does not possess a certificate of registration from the board but who is a party to a preexisting contract to perform roofing, gutter, downspout, and siding services, shall be entitled to complete the preexisting roofing contract.
(C) A person seeking to be registered as a roofing contractor shall submit an application to the board containing all of the following information:
(1) The applicant's name, home address, business address, telephone number, electronic mail address, web site address, and social security number;
(2) The name and addresses of any and all affiliates, subsidiaries, partners, or trustees of the applicant, including, in the case of corporate entities, the names and addresses of any and all officers, directors, and principal shareholders;
(3) A statement of whether the applicant has ever been previously registered in the state as a roofing contractor, under what other names the applicant was previously registered, whether there have been previous judgments or arbitration awards against the applicant, and whether that registration has ever been suspended or revoked.
(D) If requested, the applicant shall furnish the board with proof of insurance as described in section 4740.25 of the Revised Code.
(E)(1) The board may charge a fee for registering a roofing contractor under this section. The board shall adopt rules setting the registration fee at an amount not to exceed one hundred dollars.
(2) If the board requires periodic renewal of the registration, the board shall adopt rules setting the registration renewal fee at an amount not to exceed two hundred dollars.
(3) Any fees collected under this section shall be used for the purpose of administering sections 4740.20 to 4740.28 of the Revised Code.
(F)(1) The board may deny, restrict, suspend, or revoke the registration of a roofing contractor, or refuse to register an applicant, if the board finds that any of the following apply to the contractor or applicant:
(a) Employed the use of fraud, deceit, or misrepresentation in the registration process;
(b) Practiced or attempted to practice roofing, gutter, downspout, or siding services by fraudulent misrepresentation;
(c) Committed an act of gross malpractice or incompetence;
(d) Has been convicted of or pleaded guilty to a crime that indicates that the person is unfit or incompetent to practice as a roofing contractor, or that indicates that the person has deceived or defrauded the public, as set forth by the board in rule;
(e) Has been declared incompetent by a court of competent jurisdiction;
(f) Has knowingly violated any provision of sections 4740.20 to 4740.28 of the Revised Code or any related rules adopted by the board;
(g) Has had a roofing contractor license or registration suspended or revoked in this or any other state;
(h) Failed to maintain insurance required by section 4740.25 of the Revised Code;
(i) Failed or refused to pay taxes due in this state.
(2) For each violation of sections 4740.21 to 4740.28 of the Revised Code or any rules adopted thereunder, the board may impose a reasonable administrative penalty of not more than the contract price plus any administrative costs. The penalty and costs shall be paid within thirty days of the order. In determining whether to impose an administrative penalty, the board shall consider the seriousness of the violation, the impact of the violation on the complainant, any mitigating factors on the part of the offender, and any previous violations by the offender.
(G) The board may accelerate the registration for any applicant that is registered and in good standing as a roofing contractor in another state with similar registration standards.
(H) A certificate of registration issued under this section shall contain a unique registration number and other information the board considers appropriate.
(I) A certificate of registration issued under this section shall be valid for roofing, gutter, downspout, and siding services from the date of issuance and may be renewed upon approval of the board on a basis specified by the board in rule.
(J) Certificates of registration issued under this section are not transferable.
Sec. 4740.25. A roofing contractor, while providing roofing, gutter, downspout, or siding services, shall obtain and maintain in full force and effect workers' compensation insurance, contractor's liability insurance, including complete operations coverage, in the amount of at least five hundred thousand dollars, and a surety license bond in an amount set by the board. If the holder of the certificate of registration is a corporate entity, then the contractor liability insurance and the surety bond shall be in the name of the corporate entity.
Sec. 4740.26. (A) A roofing contractor shall not advertise, promise to pay, or rebate any portion of any insurance deductible as an inducement to the sale of goods or services. This includes granting any allowance or offering any discount against the fees to be charged or paying the consumer, or any person directly or indirectly associated with the property in question, any form of compensation.
(B) A roofing contractor shall not require a deposit of more than one-half of the contract price.
(C) A roofing contractor shall not induce the sale of any goods or services by doing any of the following:
(1) Offering or providing any upgraded work, material, or product in contrast with the terms of the contract;
(2) Granting any allowance or offering any discount against the fees to be charged;
(3) Paying to the consumer, any other person directly or indirectly associated with the property in question, any form of compensation, including a gift, prize, bonus, coupon, credit, referral fee, trade-in or trade-in payment, advertising, or other fee or payment.
(D) A roofing contractor shall not abandon or fail to perform, without justification, any ongoing contract or project, or deviate from or disregard plans or specifications in any material respect without the consent of the consumer.
(E) A roofing contractor shall not fail to credit the consumer for any payment the consumer has made to the contractor in connection with the contract.
(F) A roofing contractor shall not make any material misrepresentation in the procurement of a contract or make any false promise likely to influence, persuade, or induce the procurement of a contract.
(G) A roofing contractor shall not violate any state or local building codes, as pertinent.
(H) A roofing contractor shall notify the board within thirty business days of any change of trade name or address, or of providing roofing services in any name other than the one in which the contractor is registered.
(I) A roofing contractor shall not fail to pay for materials or services rendered in connection with operating as a contractor where the contractor has received sufficient funds as payment for the particular construction work, project, or operation for which the services or materials were rendered or purchased.
(J) A roofing contractor shall not perform the reporting, adjusting, or negotiating of a claim on behalf of the consumer and shall not receive compensation for the referral to any entity that reports, adjusts, or negotiates a claim on behalf of a consumer.
(K) A roofing contractor shall not fail to possess any insurance required under state, federal, or local laws.
Sec. 4740.27. All of the following individuals are exempted from the requirements of sections 4740.20 to 4740.28 of the Revised Code:
(A) Residential or farm property owners, including their employees, who perform roofing, siding, gutter, or downspout services on the property that they own;
(B) Any authorized employee or representative of the United States government, this state, or any political subdivision of this state performing roofing services on property owned by that governmental entity;
(C) Any person who furnishes any fabricated or finished product, material, or article of merchandise that is not incorporated into or attached to real property by the consumer so as to become affixed to the property.
Sec. 4740.28. (A) Sections 4740.20 to 4740.28 of the Revised Code shall be enforced by the board.
(B) The board shall be provided with sufficient funding to carry out the requirements of sections 4740.20 to 4740.28 of the Revised Code.
(C) The board shall adopt rules as necessary to enforce the provisions of sections 4740.20 to 4740.28 of the Revised Code.
Section 2. Sections 4740.20, 4740.21, 4740.22, 4740.23, 4740.24, 4740.25, 4740.26, 4740.27, and 4740.28 of the Revised Code, as enacted by this act, shall take effect on the ninetieth day after the effective date of this act.
Section 3. The intent of the General Assembly in enacting this act is to establish minimum standards for roofing contracts and to promote fair and honest practices in the roofing services business.