Senate Bill S2843A

2009-2010 Legislative Session

Imposes restrictions on relationships with home improvement contractors

download bill text pdf

Archive: Last Bill Status - In Senate Committee Codes Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 26, 2010	print number 2843a
May 26, 2010	amend and recommit to codes reported and committed to codes
Jan 06, 2010	referred to banks
Mar 04, 2009	referred to banks

Votes

- May 26, 2010 - Banks Committee Vote
  S2843A
  
  Aye
  
  12
  
  Nay
  
  1
  
  Aye with Reservations
  
  5
  
  Absent
  
  0
  
  Excused
  
  1
  
  Abstained
  
  0
  - - Banks Committee Vote: May 26, 2010
      
      aye (12)
      
      Adams
      
      Breslin
      
      Diaz
      
      Farley
      
      Foley
      
      Klein
      
      Krueger
      
      Kruger
      
      Onorato
      
      Peralta
      
      Savino
      
      Stewart-Cousins
      
      nay (1)
      
      Golden
      
      aye wr (5)
      
      Bonacic
      
      DeFrancisco
      
      Johnson
      
      Marcellino
      
      Ranzenhofer
      
      excused (1)
      
      Morahan

Bill Amendments

co-Sponsors

2009-S2843 - Details

See Assembly Version of this Bill:: A8610
Current Committee:: Senate Codes
Law Section:: Banking Law
Laws Affected:: Add §595-c, Bank L; amd §771, Gen Bus L

2009-S2843 - Summary

Provides that where a home improvement contractor is acting as a mortgage broker without being registered as required under the Banking Law, a mortgage banker, mortgage broker or exempt organization may not engage in such transaction with the contractor, and shall promptly notify the banking department that such person is acting as an unregistered broker.

2009-S2843 - Sponsor Memo

                                 BILL NUMBER:  S2843

 TITLE OF BILL :
An act to amend the banking law and the general business law, in
relation to home improvement contractors


 PURPOSE :
To help address and prevent abusive practices which have resulted from
relationships between some home improvement contractors and some
mortgage lenders or mortgage brokers.

 SUMMARY OF PROVISIONS :
A new Section 595-c is added to the Banking Law.  Subdivision one of
this new section provides that a mortgage banker, exempt organization
(i.e. a banking institution or insurance company) or mortgage broker
shall not pay a referral fee or other compensation to a home
improvement contractor, in connection with a mortgage loan, unless the
following conditions are met:

* the contractor is an agent or employee of the lender or broker;

* the lender or broker has given prior notice to the Banking
Department of such relationship;

* the consumer is provided conspicuous notice in writing about the

relationship between the contractor and lender or broker; and

* such relationship is subject to any additional requirements or
conditions as provided in regulations of the Banking Board.

Subdivision two of this new section specifically provides that where a
home improvement contractor is acting as a mortgage broker without
being registered as required under the Banking Law, a mortgage banker,
mortgage broker or exempt organization may not engage in such
transaction with the contractor, and shall promptly notify the Banking
Department that such person is acting as an unregistered broker.

Subdivision three of this new section authorizes the Superintendent of
Banks to impose special conditions and restrictions on a mortgage
banker, mortgage broker or exempt organization if there has been a
pattern of bona fide complaints of abusive practices involving a
relationship between such entity and a home improvement contractor
with whom it has a formal or informal business arrangement.

Subdivision four of this new section defines "home improvement
contractor" and "home improvement contract."

The bill also amends Section 771 of the General Business Law in regard
to the written agreement which a home improvement contractor must
provide to the homeowner. This amendment provides that, where the
contractor is referring or recommending the homeowner to a lender for
a loan that will be secured by the property, the written agreement
must include a conspicuous statement that "If you obtain or use any
type of mortgage loan to finance this project, you could lose your
home and any money you have put into it if you do not meet your
obligations under the loan."

 JUSTIFICATION :
State and federal regulators have been focusing on the problem of
abusive lending practices, in which some lenders and mortgage brokers
use unfair, deceptive or fraudulent means to target vulnerable
homeowners for excessive high cost loans. The elderly, in particular,
are a frequent target, since they may own their homes or have a high
level of equity that can be exploited.

One continuing problem involves abusive or questionable practices
which have resulted' from relationships between some home improvement
contractors and some mortgage lenders or mortgage brokers.

Some homeowners have been subjected to high pressure sales tactics,
often by door-to-door salespeople, to agree to home repairs and to
finance such improvements. These contractors or salespeople may
pressure, intimidate, and mislead homeowners into taking out a
high-priced home equity loan, or refinancing an existing mortgage as a
high cost loan, to pay for these repairs. In the most egregious cases,
homeowners may not realize that, in agreeing to the home improvement
contract, they are also signing documents which commit them to a
mortgage loan or a refinancing.

There has also been concern about contractors which have been acting
in the capacity of a mortgage broker, without being registered and
regulated as required by the Banking Law.  Through the regulation of
mortgage brokers, the State seeks to ensure that consumers are treated
fairly and are protected from abusive practices. When a contractor or
other person evades regulation and acts as a broker, there is a much
greater likelihood of deceptive and fraudulent practices.

As a result of these practices, a homeowner who may have had a
relatively low-balance, low rate loan may now be burdened with a
high-balance, high-rate loan that they cannot afford.  Furthermore, in
many cases the home improvement work may be poor and inferior, or may
not even be undertaken or completed.

This bill seeks to improve accountability and ensure that mortgage
bankers and mortgage brokers are responsible for the activities of any
home improvement contractors with whom they have relationships.  This
bill enables the Banking Department to impose special conditions and
restrictions in any cases where it identifies a pattern of abusive
practices between a lender or broker and home improvement contractors.

 LEGISLATIVE HISTORY :

2007-08: S.2613-A/52-A; 2005-06: S.7148/A.2152, passed Assembly both
years; 2003-04:  A.4980; 2001-02: A.5969; 1999-00: A.4046; 1997-98:
S.256/A.124; 1995-96: A.3150; 1993-94: S.4007.

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
Section one will take effect 120 days after it shall have become a
law; section two will take effect 180 days after it shall have become
a law.

2009-S2843 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2843

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              March 4, 2009
                               ___________

Introduced  by Sens. STACHOWSKI, VOLKER -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Banks

AN ACT to amend the  banking  law  and  the  general  business  law,  in
  relation to home improvement contractors

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The banking law is amended by adding a new section 595-c to
read as follows:
  S 595-C. RESTRICTIONS ON RELATIONSHIPS WITH HOME IMPROVEMENT  CONTRAC-
TORS. 1. A MORTGAGE BANKER, EXEMPT ORGANIZATION OR MORTGAGE BROKER SHALL
NOT  PAY  A  REFERRAL  FEE  OR  OTHER COMPENSATION TO A HOME IMPROVEMENT
CONTRACTOR IN CONNECTION WITH THE MAKING OF A MORTGAGE LOAN, UNLESS: THE
HOME IMPROVEMENT CONTRACTOR IS AN AGENT OR  EMPLOYEE  OF  SUCH  MORTGAGE
BANKER,  EXEMPT  ORGANIZATION  OR MORTGAGE BROKER; SUCH RELATIONSHIP HAS
BEEN PREVIOUSLY REPORTED TO THE DEPARTMENT; SUCH RELATIONSHIP  IS  SEPA-
RATELY  AND CONSPICUOUSLY DISCLOSED IN WRITING TO THE CONSUMER; AND SUCH
RELATIONSHIP IS SUBJECT TO ANY ADDITIONAL CONDITIONS OR REQUIREMENTS  AS
PROVIDED  IN REGULATIONS PROMULGATED BY THE BANKING BOARD.  FOR PURPOSES
OF THIS SUBDIVISION, THE TERM COMPENSATION SHALL   NOT MEAN  OR  INCLUDE
THE PAYMENT OF LOAN PROCEEDS FOR WORK PERFORMED OR MATERIALS PURCHASED.
  2. IF A HOME IMPROVEMENT CONTRACTOR IS SOLICITING, PROCESSING, PLACING
OR  NEGOTIATING A MORTGAGE LOAN WITHOUT BEING REGISTERED OR SPECIFICALLY
EXEMPTED FROM REGISTRATION, A MORTGAGE BANKER, MORTGAGE BROKER OR EXEMPT
ORGANIZATION MAY NOT  ENGAGE  IN  SUCH  MORTGAGE  TRANSACTION  WITH  THE
CONTRACTOR AND SHALL PROMPTLY NOTIFY THE DEPARTMENT THAT SUCH CONTRACTOR
IS ACTING AS AN UNREGISTERED MORTGAGE BROKER.
  3.  IF  THE  SUPERINTENDENT DETERMINES, IN HIS OR HER SOLE DISCRETION,
THAT THERE IS A PATTERN OF BONA FIDE  COMPLAINTS  OF  ABUSIVE  PRACTICES
INVOLVING  A  RELATIONSHIP BETWEEN A MORTGAGE BANKER, MORTGAGE BROKER OR
EXEMPT ORGANIZATION AND A HOME  IMPROVEMENT  CONTRACTOR  OR  CONTRACTORS
WITH  WHOM  IT HAS A FORMAL OR INFORMAL BUSINESS ARRANGEMENT, THE SUPER-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07654-02-9

S. 2843                             2

INTENDENT MAY, AFTER NOTICE AND A HEARING,  IMPOSE  CONDITIONS  ON  SUCH
MORTGAGE  BANKER,  MORTGAGE BROKER OR EXEMPT ORGANIZATION, INCLUDING BUT
NOT LIMITED TO: REQUIRING THE TERMINATION OF ANY RELATIONSHIP  OR  BUSI-
NESS  ARRANGEMENT  WITH  A  SPECIFIC  CONTRACTOR  WHICH  HAS RESULTED IN
ABUSIVE PRACTICES; REQUIRING VERIFICATION PRIOR TO MAKING ANY LOANS THAT
A CONTRACTOR IS LICENSED AND MEETING ANY OTHER REQUIREMENTS OF ANY LOCAL
LAWS; OBTAINING A COPY OF THE SIGNED WRITTEN  AGREEMENT  REQUIRED  UNDER
SECTION  SEVEN HUNDRED SEVENTY-ONE OF THE GENERAL BUSINESS LAW AND VERI-
FYING THAT THE APPLICANT HAS RECEIVED SUCH A COPY; NOTIFYING THE  APPLI-
CANT  OF  THEIR  RIGHT  TO  CONSULT  WITH THE ATTORNEY GENERAL'S OFFICE,
CONSUMER PROTECTION BOARD OR BETTER BUSINESS BUREAU TO DETERMINE IF  ANY
COMPLAINTS  HAVE  BEEN FILED AGAINST A CONTRACTOR; REQUIRING THE DISCLO-
SURE OF THE RESPONSIBILITIES OF HOME  IMPROVEMENT  CONTRACTORS  AND  THE
RIGHTS  OF  CONSUMERS  AND OPTIONS FOR PURSUING REMEDIES IN THE EVENT OF
PROBLEMS; REQUIRING THE INSPECTION OF ANY WORK DONE  TO  DATE;  AND  ANY
OTHER RESTRICTIONS OR CONDITIONS THAT THE SUPERINTENDENT DEEMS NECESSARY
AND APPROPRIATE TO PROTECT CONSUMERS.
  4. FOR THE PURPOSES OF THIS SECTION:
  (A)  "HOME  IMPROVEMENT"  MEANS  THE  REPAIRING, REMODELING, ALTERING,
CONVERTING, OR MODERNIZING OF, OR ADDING TO,  RESIDENTIAL  PROPERTY  AND
SHALL  INCLUDE,  BUT  NOT  BE  LIMITED  TO,  THE CONSTRUCTION, ERECTION,
REPLACEMENT, OR IMPROVEMENT OF DRIVEWAYS, SWIMMING POOLS, SIDING,  INSU-
LATION,  ROOFING, WINDOWS, TERRACES, PATIOS, LANDSCAPING, FENCES, PORCH-
ES, GARAGES,  SOLAR  ENERGY  SYSTEMS,  FLOORING,  BASEMENTS,  AND  OTHER
IMPROVEMENTS  OF  THE  RESIDENTIAL  PROPERTY  AND ALL STRUCTURES OR LAND
ADJACENT TO IT. "HOME IMPROVEMENT" SHALL ALSO MEAN THE  INSTALLATION  OF
HOME  IMPROVEMENT  GOODS OR THE FURNISHING OF HOME IMPROVEMENT SERVICES.
"HOME IMPROVEMENT" SHALL NOT INCLUDE:
  (1) THE SALE OR CONSTRUCTION OF A NEW HOME;
  (2) THE SALE OF GOODS BY A SELLER WHO NEITHER ARRANGES TO PERFORM  NOR
PERFORMS,  DIRECTLY  OR INDIRECTLY, ANY WORK OR LABOR IN CONNECTION WITH
THE INSTALLATION OR APPLICATION OF THE GOODS;
  (3) THE SALE OR INSTALLATION OF APPLIANCES, SUCH AS STOVES, REFRIGERA-
TORS, FREEZERS, ROOM AIR CONDITIONERS, DISHWASHERS, CLOTHES  WASHERS  OR
DRYERS,  WHICH  ARE  DESIGNED  TO BE REMOVABLE FROM THE PREMISES WITHOUT
MATERIAL ALTERATION THEREOF;
  (4) THE SALE OR INSTALLATION OF DECORATIVE GOODS OR SERVICES, SUCH  AS
DRAPERIES AND CARPETS; OR
  (5) THE PERFORMANCE OF REPAIRS, REPLACEMENTS, OR OTHER SERVICES PURSU-
ANT TO AN EXPRESS OR IMPLIED WARRANTY, OR A MAINTENANCE AGREEMENT.
  (B)  "HOME IMPROVEMENT CONTRACTOR" MEANS A PERSON, FIRM OR CORPORATION
WHICH OWNS OR OPERATES A HOME IMPROVEMENT BUSINESS  OR  WHO  UNDERTAKES,
OFFERS  TO UNDERTAKE OR AGREES TO PERFORM ANY HOME IMPROVEMENT FOR A FEE
AND FOR WHOM THE TOTAL  CASH  PRICE  OF  ALL  OF  HIS  HOME  IMPROVEMENT
CONTRACTS  WITH  ALL  HIS  CUSTOMERS  EXCEEDS  ONE THOUSAND FIVE HUNDRED
DOLLARS DURING ANY PERIOD OF TWELVE CONSECUTIVE MONTHS. HOME IMPROVEMENT
CONTRACTOR DOES NOT INCLUDE A PERSON, FIRM, CORPORATION, LANDLORD, COOP-
ERATIVE CORPORATION, CONDOMINIUM BOARD  OF  MANAGERS,  JOINT  TENANT  OR
CO-TENANT THAT OWNS, IN WHOLE OR IN PART, THE PROPERTY TO BE IMPROVED.
  S  2.  Subdivision  1  of  section  771 of the general business law is
amended by adding a new paragraph (i) to read as follows:
  (I) WHERE THE CONTRACTOR IS REFERRING OR RECOMMENDING THE OWNER  TO  A
BANKING  INSTITUTION,  MORTGAGE  BANKER  OR OTHER FINANCING ENTITY FOR A
LOAN TO BE SECURED BY A MORTGAGE ON OR A SECURITY INTEREST IN  THE  REAL
PROPERTY,  THE  FOLLOWING  NOTICE  TO THE OWNER IN CLEAR AND CONSPICUOUS
BOLD FACE TYPE: "IF YOU OBTAIN OR USE  ANY  TYPE  OF  MORTGAGE  LOAN  TO

S. 2843                             3

FINANCE  THIS  PROJECT,  YOU COULD LOSE YOUR HOME AND ANY MONEY YOU HAVE
PUT INTO IT IF YOU DO NOT MEET YOUR OBLIGATIONS UNDER THE LOAN."
  S 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law, provided that any such rules and regulations
as  shall  be  necessary  to  implement  the  provisions of this act are
authorized to be promulgated prior to such effective date; and  provided
that section two of this act shall take effect on the one hundred eight-
ieth day after it shall have become a law.

co-Sponsors

2009-S2843A (ACTIVE) - Details

See Assembly Version of this Bill:: A8610
Current Committee:: Senate Codes
Law Section:: Banking Law
Laws Affected:: Add §595-c, Bank L; amd §771, Gen Bus L

2009-S2843A (ACTIVE) - Summary

2009-S2843A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S2843A

TITLE OF BILL:
An act
to amend the banking law and the general business law,
in relation to home improvement contractors

PURPOSE:
To help address and prevent abusive practices that have resulted from
relationships between some home improvement contractors and some
mortgage lenders or mortgage brokers.

SUMMARY OF PROVISIONS:
A new Section 595-c is added to the Banking Law. Subdivision one of
this new section provides that a mortgage banker, exempt organization
(i.e. a banking institution or insurance company) or mortgage broker
shall not pay a referral fee or other compensation to a home
improvement contractor in connection with a mortgage loan unless the
following conditions are met:

a) the contractor is an agent or employee of the lender or broker;
b) the lender or broker has given prior notice to the Banking
Department of such relationship;
c) the consumer is provided conspicuous notice in writing about the
relationship between the contractor and lender or broker; and
d) such relationship is subject to any additional requirements

or conditions as provided in regulations of the Banking Board.

Subdivision two of this new section authorizes the Superintendent of
Banks to impose special conditions and restrictions on a mortgage
banker, mortgage broker or exempt organization if there has been a
pattern of bona fide complaints of abusive practices involving a
relationship between such entity and a home improvement contractor
with whom it has a formal or informal business arrangement.

Subdivision three of this new section defines "home improvement" and
"home improvement contractor.

The bill also amends Section 771 of the General Business Law in regard
to the written agreement which a home improvement contractor must
provide to the homeowner with a provision requiring that the written
agreement must include a conspicuous statement that "If you obtain or
use any type of mortgage loan to finance this project, you could lose
your home and any money you have put into it if you do not meet your
obligations under the loan."

JUSTIFICATION:
This legislation addresses the problem of abusive lending practices
where some lenders and mortgage brokers use deceptive or fraudulent
means to target vulnerable homeowners for excessive high cost loans.
The elderly are a

frequent target, since they may own their homes or have a high level
of equity that can be exploited.

Abusive or questionable practices have resulted from relationships
between some home improvement contractors and some mortgage lenders
or mortgage brokers. Some homeowners have been subjected to high
pressure sales tactics for home repairs and financing for these
improvements. These contractors or salespeople may pressure,
intimidate, and mislead homeowners into taking out a high-priced home
equity loan, or refinancing an existing mortgage as a high cost loan,
to pay for these repairs. In the most egregious cases homeowners may
not realize that in agreeing to the home improvement contract they
are signing documents that commit them to a mortgage loan or
refinancing.

This bill seeks to improve accountability and ensure that mortgage
bankers and mortgage brokers are responsible for the activities of
any home improvement contractors with whom they have relationships.

LEGISLATIVE HISTORY:

2007-08: S.2613-A/52-A
2005-06: S.7148/A.2152, Passed Assembly Both Years
2003-04: A.4980
2001-02: A.5969
1999-00: A.4046
1997-98: S.256/A.124
1995-96: A.3150
1993-94: S.4007

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Section one will take effect 120 days after it shall have become a law.
Section two will take effect 180 days after it shall have become a law.

2009-S2843A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2843--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              March 4, 2009
                               ___________

Introduced  by Sens. STACHOWSKI, VOLKER -- read twice and ordered print-
  ed, and when printed to be committed to  the  Committee  on  Banks  --
  recommitted  to  the Committee on Banks in accordance with Senate Rule
  6, sec. 8 -- reported favorably from said committee and  committed  to
  the  Committee on Codes -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the  banking  law  and  the  general  business  law,  in
  relation to home improvement contractors

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The banking law is amended by adding a new section 595-c to
read as follows:
  S 595-C. RESTRICTIONS ON RELATIONSHIPS WITH HOME IMPROVEMENT  CONTRAC-
TORS. 1. A MORTGAGE BANKER, EXEMPT ORGANIZATION OR MORTGAGE BROKER SHALL
NOT  PAY  A  REFERRAL  FEE  OR  OTHER COMPENSATION TO A HOME IMPROVEMENT
CONTRACTOR IN CONNECTION WITH THE MAKING OF A MORTGAGE LOAN, UNLESS  (A)
THE HOME IMPROVEMENT CONTRACTOR IS AN AGENT OR EMPLOYEE OF SUCH MORTGAGE
BANKER, EXEMPT ORGANIZATION OR MORTGAGE BROKER (B) SUCH RELATIONSHIP HAS
BEEN  PREVIOUSLY  REPORTED  TO  THE  DEPARTMENT (C) SUCH RELATIONSHIP IS
SEPARATELY AND CONSPICUOUSLY DISCLOSED IN WRITING TO  THE  CONSUMER  (D)
AND  SUCH  RELATIONSHIP  IS  SUBJECT  TO  ANY  ADDITIONAL  CONDITIONS OR
REQUIREMENTS AS PROVIDED  IN  REGULATIONS  PROMULGATED  BY  THE  BANKING
BOARD.    FOR  PURPOSES OF THIS SUBDIVISION, THE TERM COMPENSATION SHALL
NOT MEAN OR INCLUDE THE PAYMENT OF LOAN PROCEEDS FOR WORK  PERFORMED  OR
MATERIALS PURCHASED.
  2.  IF  THE  SUPERINTENDENT DETERMINES, IN HIS OR HER SOLE DISCRETION,
THAT THERE IS A PATTERN OF BONA FIDE  COMPLAINTS  OF  ABUSIVE  PRACTICES
INVOLVING  A  RELATIONSHIP BETWEEN A MORTGAGE BANKER, MORTGAGE BROKER OR
EXEMPT ORGANIZATION AND A HOME  IMPROVEMENT  CONTRACTOR  OR  CONTRACTORS
WITH  WHOM  IT HAS A FORMAL OR INFORMAL BUSINESS ARRANGEMENT, THE SUPER-
INTENDENT MAY, AFTER NOTICE AND A HEARING,  IMPOSE  CONDITIONS  ON  SUCH

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07654-03-0

S. 2843--A                          2

MORTGAGE  BANKER,  MORTGAGE BROKER OR EXEMPT ORGANIZATION, INCLUDING BUT
NOT LIMITED TO: REQUIRING THE TERMINATION OF ANY RELATIONSHIP  OR  BUSI-
NESS  ARRANGEMENT  WITH  A  SPECIFIC  CONTRACTOR  WHICH  HAS RESULTED IN
ABUSIVE PRACTICES; REQUIRING VERIFICATION PRIOR TO MAKING ANY LOANS THAT
A CONTRACTOR IS LICENSED AND MEETING ANY OTHER REQUIREMENTS OF ANY LOCAL
LAWS;  OBTAINING  A  COPY OF THE SIGNED WRITTEN AGREEMENT REQUIRED UNDER
SECTION SEVEN HUNDRED SEVENTY-ONE OF THE GENERAL BUSINESS LAW AND  VERI-
FYING  THAT THE APPLICANT HAS RECEIVED SUCH A COPY; NOTIFYING THE APPLI-
CANT OF THEIR RIGHT TO  CONSULT  WITH  THE  ATTORNEY  GENERAL'S  OFFICE,
CONSUMER  PROTECTION BOARD OR BETTER BUSINESS BUREAU TO DETERMINE IF ANY
COMPLAINTS HAVE BEEN FILED AGAINST A CONTRACTOR; REQUIRING  THE  DISCLO-
SURE  OF  THE  RESPONSIBILITIES  OF HOME IMPROVEMENT CONTRACTORS AND THE
RIGHTS OF CONSUMERS AND OPTIONS FOR PURSUING REMEDIES IN  THE  EVENT  OF
PROBLEMS;  REQUIRING  THE  INSPECTION  OF ANY WORK DONE TO DATE; AND ANY
OTHER RESTRICTIONS OR CONDITIONS THAT THE SUPERINTENDENT DEEMS NECESSARY
AND APPROPRIATE TO PROTECT CONSUMERS.
  3. FOR THE PURPOSES OF THIS SECTION:
  (A) "HOME IMPROVEMENT"  MEANS  THE  REPAIRING,  REMODELING,  ALTERING,
CONVERTING,  OR  MODERNIZING  OF, OR ADDING TO, RESIDENTIAL PROPERTY AND
SHALL INCLUDE, BUT  NOT  BE  LIMITED  TO,  THE  CONSTRUCTION,  ERECTION,
REPLACEMENT,  OR IMPROVEMENT OF DRIVEWAYS, SWIMMING POOLS, SIDING, INSU-
LATION, ROOFING, WINDOWS, TERRACES, PATIOS, LANDSCAPING, FENCES,  PORCH-
ES,  GARAGES,  SOLAR  ENERGY  SYSTEMS,  FLOORING,  BASEMENTS,  AND OTHER
IMPROVEMENTS OF THE RESIDENTIAL PROPERTY  AND  ALL  STRUCTURES  OR  LAND
ADJACENT  TO  IT. "HOME IMPROVEMENT" SHALL ALSO MEAN THE INSTALLATION OF
HOME IMPROVEMENT GOODS OR THE FURNISHING OF HOME  IMPROVEMENT  SERVICES.
"HOME IMPROVEMENT" SHALL NOT INCLUDE:
  (1) THE SALE OR CONSTRUCTION OF A NEW HOME;
  (2)  THE SALE OF GOODS BY A SELLER WHO NEITHER ARRANGES TO PERFORM NOR
PERFORMS, DIRECTLY OR INDIRECTLY, ANY WORK OR LABOR IN  CONNECTION  WITH
THE INSTALLATION OR APPLICATION OF THE GOODS;
  (3) THE SALE OR INSTALLATION OF APPLIANCES, SUCH AS STOVES, REFRIGERA-
TORS,  FREEZERS,  ROOM AIR CONDITIONERS, DISHWASHERS, CLOTHES WASHERS OR
DRYERS, WHICH ARE DESIGNED TO BE REMOVABLE  FROM  THE  PREMISES  WITHOUT
MATERIAL ALTERATION THEREOF;
  (4)  THE SALE OR INSTALLATION OF DECORATIVE GOODS OR SERVICES, SUCH AS
DRAPERIES AND CARPETS; OR
  (5) THE PERFORMANCE OF REPAIRS, REPLACEMENTS, OR OTHER SERVICES PURSU-
ANT TO AN EXPRESS OR IMPLIED WARRANTY, OR A MAINTENANCE AGREEMENT.
  (B) "HOME IMPROVEMENT CONTRACTOR" MEANS A PERSON, FIRM OR  CORPORATION
WHICH  OWNS  OR  OPERATES A HOME IMPROVEMENT BUSINESS OR WHO UNDERTAKES,
OFFERS TO UNDERTAKE OR AGREES TO PERFORM ANY HOME IMPROVEMENT FOR A  FEE
AND  FOR WHOM THE TOTAL CASH PRICE OF ALL OF HIS OR HER HOME IMPROVEMENT
CONTRACTS WITH ALL HIS  CUSTOMERS  EXCEEDS  ONE  THOUSAND  FIVE  HUNDRED
DOLLARS DURING ANY PERIOD OF TWELVE CONSECUTIVE MONTHS. HOME IMPROVEMENT
CONTRACTOR DOES NOT INCLUDE A PERSON, FIRM, CORPORATION, LANDLORD, COOP-
ERATIVE  CORPORATION,  CONDOMINIUM  BOARD  OF  MANAGERS, JOINT TENANT OR
CO-TENANT THAT OWNS, IN WHOLE OR IN PART, THE PROPERTY TO BE IMPROVED.
  S 2. Subdivision 1 of section 771  of  the  general  business  law  is
amended by adding a new paragraph (i) to read as follows:
  (I)  WHERE  THE CONTRACTOR IS REFERRING OR RECOMMENDING THE OWNER TO A
BANKING INSTITUTION, MORTGAGE BANKER OR OTHER  FINANCING  ENTITY  FOR  A
LOAN  TO  BE SECURED BY A MORTGAGE ON OR A SECURITY INTEREST IN THE REAL
PROPERTY, THE FOLLOWING NOTICE TO THE OWNER  IN  CLEAR  AND  CONSPICUOUS
BOLD  FACE  TYPE:  "IF  YOU  OBTAIN  OR USE ANY TYPE OF MORTGAGE LOAN TO

S. 2843--A                          3

FINANCE THIS PROJECT, YOU COULD LOSE YOUR HOME AND ANY  MONEY  YOU  HAVE
PUT INTO IT IF YOU DO NOT MEET YOUR OBLIGATIONS UNDER THE LOAN."
  S 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law, provided that any such rules and regulations
as  shall  be  necessary  to  implement  the  provisions of this act are
authorized to be promulgated prior to such effective date; and  provided
that section two of this act shall take effect on the one hundred eight-
ieth day after it shall have become a law.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Find your Senator and share your views on important issues.

Do you support this bill?

Senate Bill S2843A

Sponsored By

Archive: Last Bill Status - In Senate Committee Codes Committee

Actions

Votes

May 26, 2010 - Banks Committee Vote

Banks Committee Vote: May 26, 2010

Bill Amendments

co-Sponsors

2009-S2843 - Details

2009-S2843 - Summary

2009-S2843 - Sponsor Memo

2009-S2843 - Bill Text download pdf

co-Sponsors

2009-S2843A (ACTIVE) - Details

2009-S2843A (ACTIVE) - Summary

2009-S2843A (ACTIVE) - Sponsor Memo

2009-S2843A (ACTIVE) - Bill Text download pdf

Comments

Do you support this bill?

Get Status Alerts for 2009-S2843A

Senate Bill S2843A

Share this bill

Sponsored By

William T. Stachowski

Archive: Last Bill Status - In Senate Committee Codes Committee

Actions

Votes

Bill Amendments

co-Sponsors

Dale M. Volker

2009-S2843 - Details

2009-S2843 - Summary

2009-S2843 - Sponsor Memo

2009-S2843 - Bill Text download pdf

co-Sponsors

Dale M. Volker

2009-S2843A (ACTIVE) - Details

2009-S2843A (ACTIVE) - Summary

2009-S2843A (ACTIVE) - Sponsor Memo

2009-S2843A (ACTIVE) - Bill Text download pdf

Comments