A BILL TO BE ENTITLED
AN ACT to provide consumer protections related to roofing 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 Contractors.
"§ 75‑150.  Definitions.
The following definitions apply in this Article:
(1)	Nonresident roofing contractor. – A roofing contractor who (i) has not established and maintained a place of business as a roofing contractor in this State within the preceding year, (ii) claims residency in another state, and (iii) has not submitted an income tax return as a resident of this State within the preceding year.
(2)	Public contract. – A contract with the State of North Carolina, its political subdivisions, or any board, commission, agency, or department thereof or with any board of county commissioners or with any city council, school board, or with any State or municipal agency or with any other public board, body, commission, or agency authorized to award contracts for the construction or reconstruction of public work. The term includes subcontracts undertaken to perform works covered by the original contract or any part thereof.
(3)	Roofing contractor. – A person, including a nonresident roofing contractor, engaged in the business of residential roofing services 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 person engaged in the demolition of a structure or the cleanup of construction waste and debris that contains roofing material.
b.	A person working under the direct supervision of a roofing contractor who is hired either as an employee, day laborer, or contract laborer.
c.	A person providing roofing related services as a subcontractor, regardless of tier, under a licensed North Carolina general contractor.
"§ 75‑151.  Construction of Article.
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.
"§ 75‑152.  Prohibited conduct.
(a)	A roofing contractor shall not do any of the following:
(1)	Advertise or promise or offer to pay or rebate all or any portion of any insurance deductible as an inducement to the sale of any goods 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 or any person directly or indirectly associated with the property 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 goods or services.
(3)	Offer or provide anything of value in exchange for permitting the roofing contractor to display a sign or any other type of advertisement at the consumer's premises.
(4)	Seek to obtain a power of attorney from or on behalf of a consumer, offer to report or adjust a claim on behalf of a consumer, represent or negotiate, or offer or advertise to represent or negotiate, obtain, or attempt to obtain an assignment of claims rights or assignment of benefits or assignment of proceeds, from or on behalf of either a consumer or of an owner or possessor of residential real estate, on 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.
(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 contractor.
"§ 75‑153.  Written contract required; required contents.
A contract for roofing repairs, including a public contract, shall be in writing, signed by both parties, and shall do all of the following:
(1)	Include a copy of a repair estimate that contains 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.	If damaged areas are not included on the repair estimate, a specification of those areas and any reason for their exclusion from the repair estimate.
d.	A statement of whether or not the property was inspected prior to the preparation of the estimate and a description of the nature of that inspection, including a statement of whether or not the roof was physically accessed.
e.	A statement that the roofing contractor has made no assurances that the claimed loss will be covered by an insurance policy.
(2)	Include 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.
(3)	Be written in the same language as that principally used in any sales presentation, oral or otherwise.
(4)	Designate as the date of the transaction the date on which the consumer actually signs the agreement or offer.
(5)	Contain the name and physical address of the roofing contractor.
(6)	Contain in immediate proximity to the space reserved for the signature of the buyer in bold‑face type of a minimum size of 10 points, 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."

(7)	Be accompanied by a completed form in duplicate that is captioned "Notice of Cancellation," which shall be attached to the contract and easily detachable and which 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)

If you are notified by your insurer that all or any part of the claim or contract is not a covered loss under the insurance policy, 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 prior to midnight on the third business day after you have received such written notice from your insurer. If you cancel, any payments made by you under the contract will be returned to you within 10 business days following receipt by the roofing contractor of your cancellation notice, and any security interest arising out of the transaction will be canceled.

I HEREBY CANCEL THIS TRANSACTION
____________
(date)
____________
(consumer's signature)"

(8)	Include a statement indicating that the roofing contractor shall hold in trust any payment from the property owner until the roofing contractor has delivered roofing materials at the property site or has performed a majority of the roofing work on the property.
"§ 75‑154.  Consumer's right to cancel contract if not covered by insurance.
(a)	Right to Cancel. – 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 and casualty insurance policy may cancel the contract at any time prior to midnight of the third business day after the consumer has received written notification from the insurer that all or any part of the claim or contract is not a covered loss under the insurance policy.
(b)	Procedure for Cancellation. – Cancellation shall be evidenced by the consumer giving written notice of cancellation to the roofing contractor at the address stated in the contract. Notice of cancellation, if given by mail, is effective upon deposit into the United States mail, postage prepaid, and properly addressed to the roofing contractor. Notice of cancellation need not take a particular form and is sufficient if it indicates, by any form of written expression, the intention of the consumer not to be bound by the contract.
(c)	Refund of Payments to Consumer. – Within 10 days after a contract for roofing repairs has been cancelled, the roofing contractor shall tender to the consumer any payments, partial payments, or deposits made by the consumer and any note or other evidence of indebtedness. If, however, the roofing contractor has performed any emergency services, acknowledged by the consumer in writing to be necessary to prevent damage to the premises, the roofing contractor is entitled to the reasonable value of such services. Any provision in a 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.
"§ 75‑155.  Violations an unfair and deceptive trade practice.
In addition to the other penalties set forth in this Article, 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, 2016.