NY State Senate Bill 2015-S5126A

Archive: Last Bill Status - In Senate Committee Consumer Protection 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

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 18, 2016	print number 5126a
Mar 18, 2016	amend (t) and recommit to consumer protection
Jan 06, 2016	referred to consumer protection
May 04, 2015	referred to consumer protection

Bill Amendments

Original

A (Active)

2015-S5126 - Details

See Assembly Version of this Bill:: A7339
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §§770 & 771, add 771-b, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2017-2018: A3246
2019-2020: A7531

2015-S5126 - Summary

Relates to home improvement contract provisions.

2015-S5126 - Sponsor Memo

                                BILL NUMBER:S5126

TITLE OF BILL:

An act to amend the general business law, in relation to home improve-
ment contracts

PURPOSE:

Requires home improvement contractors to have insurance coverage and
regulates their conduct when making repairs covered by homeowner's
insurance.

SUMMARY OF PROVISIONS:

Section 1: Amends paragraphs (d) and (e) of subdivision 3 of section 770
of the general business law, as amended by chapter 32 of the laws of
1989. Adds three new paragraphs (f), (g), and (h) to subdivision 3 of
section 770 of the general business law.

Section 2: Amends Paragraph (h) of subdivision 1 of section 771 of the
general business law. Adds a new paragraph (i) to subdivision 1 of
section 771 of the general business law.

Section 3: Adds new subdivisions 3,4, 5, 6, 7, 8, and 9 to section 771
of the general business law.

Section 4: Adds section 771-B to the general business law.

Section 5: Establishes the effective date.

JUSTIFICATION:

While the vast majority of home improvement contractors are honest and
scrupulous businesspersons, there is a very small group of people who
present themselves as legitimate contractors but are actually con
artists. These illegitimate groups of people are commonly known as
"storm chasers" who come into an area right after a natural disaster,
promising to quickly and efficiently restore the properties of people
who have suffered damage and loss from the disaster. Storm chasers end
up either performing extremely substandard work or do not even perform
the work. These con artists will often walk door to door in a neighbor-
hood and use high-pressure sales tactics to compel consumers into sign-
ing home repair contracts. A particular target for storm chasers is the
elderly, especially those who have paid off their mortgage because if
the mortgage is not paid off then the insurer must include the mortgage
holder (usually a bank) on the check.

This proposed legislation would provide 2 (two) additional days for
residential property owner to decide whether to cancel a home improve-
ment contract they signed, from 3 days to 5 days. It would establish a
prohibition on home improvement contractors advertising or promising to

pay or rebate all or any part of an insurance deductible as an induce-
ment to the sale of any goods or services. The measure allows a residen-
tial property owner to cancel a home improvement contract within 5 busi-
ness days after receiving notice from the owner's insurer that the claim
has been denied in whole or in part. Within 10 (ten) days after cancel-
lation, the home improvement contractor is required to return any
payments made by the insured and note or evidence of indebtedness. The
contractor would be entitled to compensation for their work on emergency
repairs.

LEGISLATIVE HISTORY:

This is a new bill

FISCAL IMPLICATIONS:

None to the State.

EFFECTIVE DATE:

This act shall take effect 180 days after enactment.

2015-S5126 - Bill Text download pdf

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

                                  5126

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               May 4, 2015
                               ___________

Introduced  by  Sen. AMEDORE -- read twice and ordered printed, and when
  printed to be committed to the Committee on Consumer Protection

AN ACT to amend the general business law, in relation to  home  improve-
  ment contracts

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

  Section 1. Paragraphs (d) and (e) of subdivision 3 of section  770  of
the  general business law, as amended by chapter 32 of the laws of 1989,
are amended, and three new paragraphs (f), (g) and (h) are added to read
as follows:
  (d) the sale or installation of decorative goods or services, such  as
draperies and carpets; [or]
  (e) the performance of repairs, replacements, or other services pursu-
ant  to  an  express  or implied warranty, or a maintenance agreement as
defined in section three hundred ninety-five-a of this chapter[.];
  (F) THE PERFORMANCE BY AN OWNER, FARM PROPERTY OWNER, OR THE EMPLOYEES
OF SUCH OWNER OR FARM PROPERTY OWNER OF THE REPAIR, REMODELING,  CONVER-
SION,  ALTERATION, MODERNIZATION OR EXPANSION OF THE OWNER OR FARM PROP-
ERTY OWNER'S DWELLING OR OTHER STRUCTURE ON THE OWNER'S OR FARM PROPERTY
OWNER'S PROPERTY, WITHOUT THE ASSISTANCE OF A HOME IMPROVEMENT  CONTRAC-
TOR;
  (G)  THE  PERFORMANCE OF REPAIRS, REMODELING, ALTERATIONS, CONVERSION,
MODERNIZATION OR EXPANSION, BY ANY AUTHORIZED EMPLOYEE OR REPRESENTATIVE
OF THE UNITED STATES GOVERNMENT, THE STATE OR ANY POLITICAL  SUBDIVISION
THEREOF, OF ANY GOVERNMENT PROPERTY; OR
  (H)  THE  FURNISHING OR PROVISIONS OF ANY FABRICATED OR FINISHED PROD-
UCT, MATERIAL OR ARTICLE OF MERCHANDISE THAT IS NOT INCORPORATED INTO OR
ATTACHED TO REAL PROPERTY SO AS TO BECOME  AFFIXED  TO  THE  RESIDENTIAL
PROPERTY THEREON.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10615-01-5

S. 5126                             2

  S  2.  Paragraph  (h)  of  subdivision 1 of section 771 of the general
business law, as amended by chapter 32 of the laws of 1989,  is  amended
and a new paragraph (i) is added to read as follows:
  (h)  A notice to the owner that, in addition to any right otherwise to
revoke an offer, the owner may  cancel  the  home  improvement  contract
until  midnight of the [third] FIFTH business day after the day on which
the owner has signed an agreement or offer to purchase relating to  such
contract.    Cancellation  occurs when written notice of cancellation is
given to the home improvement contractor.  Notice  of  cancellation,  if
given by mail, shall be deemed given when deposited in a mailbox proper-
ly addressed and postage prepaid. Notice of cancellation shall be suffi-
cient  if  it  indicates  the  intention  of  the owner not to be bound.
Notwithstanding the foregoing, this paragraph shall not apply to a tran-
saction in which the owner  has  initiated  the  contact  and  the  home
improvement  is  needed  to meet a bona fide emergency of the owner, and
the owner furnishes the home  improvement  contractor  with  a  separate
dated  and signed personal statement in the owner's handwriting describ-
ing the situation requiring immediate remedy and expressly acknowledging
and waiving the right to cancel the  home  improvement  contract  within
three business days. For the purposes of this paragraph the term "owner"
shall mean an owner or any representative of an owner.
  (I) THE NAME OF THE INSURER, TYPE OF INSURANCE COVERAGE AS REQUIRED BY
SECTION  SEVEN  HUNDRED SEVENTY-ONE-B OF THIS ARTICLE, AND THE INSURANCE
POLICY LIMITS OBTAINED BY THE HOME IMPROVEMENT CONTRACTOR.
  S 3. Section 771 of the general business  law  is  amended  by  adding
seven new subdivisions 3, 4, 5, 6, 7, 8 and 9 to read as follows:
  3.  A  HOME  IMPROVEMENT CONTRACTOR SHALL NOT ADVERTISE, OR PROMISE TO
PAY OR REBATE ALL OR ANY PORTION  OF  ANY  INSURANCE  DEDUCTIBLE  AS  AN
INDUCEMENT TO THE SALE OF GOODS OR SERVICES.  AS USED IN THIS SECTION, A
"PROMISE  TO  PAY  OR  REBATE" INCLUDES THE GRANTING OF ANY ALLOWANCE OR
OFFERING OF ANY DISCOUNT AGAINST THE FEES TO BE CHARGED, OR  PAYING  THE
INSURED OR ANY PERSON DIRECTLY OR INDIRECTLY ASSOCIATED WITH THE PROPER-
TY  ANY FORM OF COMPENSATION, GIFT, PRIZE, BONUS, COUPON, CREDIT, REFER-
RAL FEE, OR OTHER ITEM OF MONETARY VALUE FOR ANY REASON.
  4. AN OWNER WHO HAS ENTERED  INTO  A  WRITTEN  CONTRACT  WITH  A  HOME
IMPROVEMENT  CONTRACTOR  TO PROVIDE GOODS OR SERVICES TO BE PAID UNDER A
PROPERTY AND CASUALTY INSURANCE POLICY MAY CANCEL THE  HOME  IMPROVEMENT
CONTRACT  PRIOR  TO MIDNIGHT ON THE FIFTH BUSINESS DAY AFTER THE INSURED
PARTY HAS RECEIVED WRITTEN NOTICE FROM THE INSURER THAT ALL OR ANY  PART
OF THE CLAIM OR CONTRACT IS NOT A COVERED LOSS UNDER THE INSURANCE POLI-
CY.  CANCELLATION OCCURS WHEN WRITTEN NOTICE OF CANCELLATION IS GIVEN TO
THE HOME IMPROVEMENT CONTRACTOR.  NOTICE OF CANCELLATION,  IF  GIVEN  BY
MAIL,  SHALL  BE  DEEMED  GIVEN  WHEN  DEPOSITED  IN  A MAILBOX PROPERLY
ADDRESSED AND POSTAGE PREPAID. NOTICE OF CANCELLATION  SHALL  BE  SUFFI-
CIENT  IF  IT  INDICATES  THE  INTENTION  OF  THE OWNER NOT TO BE BOUND.
NOTWITHSTANDING THE FOREGOING, THIS SUBDIVISION SHALL  NOT  APPLY  TO  A
TRANSACTION  IN  WHICH  THE OWNER HAS INITIATED THE CONTACT AND THE HOME
IMPROVEMENT IS NEEDED TO MEET A BONA FIDE EMERGENCY OF  THE  OWNER,  AND
THE  OWNER  FURNISHES  THE  HOME  IMPROVEMENT CONTRACTOR WITH A SEPARATE
DATED AND SIGNED PERSONAL STATEMENT IN THE OWNER'S HANDWRITING  DESCRIB-
ING  THE SITUATION REQUIRING IMMEDIATE REMEDY, AND EXPRESSLY ACKNOWLEDG-
ING AND WAIVING THE RIGHT TO CANCEL THE HOME IMPROVEMENT CONTRACT WITHIN
THREE BUSINESS DAYS. FOR THE  PURPOSES  OF  THIS  SUBDIVISION  THE  TERM
"OWNER" SHALL MEAN AN OWNER OR ANY REPRESENTATIVE OF AN OWNER.
  5. WITHIN TEN DAYS AFTER A CONTRACT REFERRED TO IN SUBDIVISION FOUR OF
THIS  SECTION  HAS BEEN CANCELLED, THE HOME IMPROVEMENT CONTRACTOR SHALL

S. 5126                             3

TENDER TO THE OWNER ANY PAYMENTS, PARTIAL PAYMENTS, OR DEPOSITS MADE AND
ANY NOTE OR OTHER  EVIDENCE  OF  INDEBTEDNESS.  IF,  HOWEVER,  THE  HOME
IMPROVEMENT  CONTRACTOR  HAS  PERFORMED ANY EMERGENCY SERVICES, ACKNOWL-
EDGED  BY  THE OWNER IN WRITING TO BE NECESSARY TO PREVENT DAMAGE TO THE
PREMISES, THE HOME IMPROVEMENT  CONTRACTOR  SHALL  BE  ENTITLED  TO  THE
REASONABLE VALUE OF SUCH SERVICES.  ANY PROVISION IN A CONTRACT REFERRED
TO  IN SUBDIVISION FOUR OF THIS SECTION THAT REQUIRES THE PAYMENT OF ANY
FEE FOR ANYTHING EXCEPT EMERGENCY  SERVICES  SHALL  NOT  BE  ENFORCEABLE
AGAINST THE OWNER WHO HAS CANCELLED A CONTRACT PURSUANT TO THIS SECTION.
  6. A HOME IMPROVEMENT CONTRACTOR SHALL NOT REQUIRE AN OWNER TO PROVIDE
A DEPOSIT OF MORE THAN ONE-HALF OF THE AGREED UPON CONSIDERATION FOR THE
WORK AND MATERIALS. IN ADDITION, A HOME IMPROVEMENT CONTRACTOR SHALL NOT
MANDATE  THAT  A PARTICULAR FORM OF PAYMENT BE MADE IN ORDER TO COMMENCE
PERFORMANCE OF THE HOME IMPROVEMENT.
  7. A HOME  IMPROVEMENT  CONTRACTOR  SHALL  NOT  ABANDON,  OR  FAIL  TO
PERFORM, WITHOUT JUSTIFICATION, ANY HOME IMPROVEMENT CONTRACT, NOR SHALL
THE HOME IMPROVEMENT CONTRACTOR DEVIATE FROM OR DISREGARD PLANS OR SPEC-
IFICATIONS  IN  ANY  MATERIAL  RESPECT WITHOUT THE CONSENT OF THE OWNER.
FURTHERMORE, A HOME IMPROVEMENT CONTRACTOR SHALL ABIDE BY THE APPLICABLE
BUILDING CODE FOR THE JURISDICTION WHERE  THE  RESIDENTIAL  PROPERTY  IS
LOCATED.
  8.  A  HOME IMPROVEMENT CONTRACTOR SHALL NOT FAIL TO PAY FOR MATERIALS
OR SERVICES RENDERED IN CONNECTION  WITH  A  HOME  IMPROVEMENT  CONTRACT
WHERE  THE  CONTRACTOR  HAS RECEIVED SUFFICIENT FUNDS AS PAYMENT FOR THE
PARTICULAR CONTRACT FOR WHICH THE SERVICES OR MATERIALS WERE RENDERED OR
PURCHASED.
  9. A HOME IMPROVEMENT CONTRACTOR  SHALL  NOT  PERFORM  THE  REPORTING,
ADJUSTING OR NEGOTIATING OF A CLAIM ON BEHALF OF THE OWNER AND SHALL NOT
RECEIVE  COMPENSATION  FOR  THE  REFERRAL  TO  ANY  ENTITY THAT REPORTS,
ADJUSTS OR NEGOTIATES A CLAIM ON BEHALF OF AN OWNER.
  S 4. The general business law is amended by adding a new section 771-b
to read as follows:
  S 771-B. INSURANCE REQUIREMENTS FOR HOME IMPROVEMENT CONTRACTORS.    A
HOME IMPROVEMENT CONTRACTOR SHALL PROVIDE TO THE OWNER ADEQUATE PROOF OF
INSURANCE OF THE TYPES AND AMOUNTS AS FOLLOWS:
  1.  A  CERTIFICATE  OF WORKERS' COMPENSATION COVERING ALL EMPLOYEES OF
THE HOME IMPROVEMENT CONTRACTOR. IF THE HOME IMPROVEMENT CONTRACTOR DOES
NOT HAVE ANY EMPLOYEES, THEN THE CONTRACTOR MUST PROVIDE  A  CERTIFICATE
OF  ATTESTATION  EXEMPTION  (CE-200) FORM FROM THE WORKERS' COMPENSATION
BOARD; OR
  2. CERTIFICATES OF GENERAL LIABILITY AND PROPERTY DAMAGE INSURANCE  IN
THE  AMOUNT  OF  ONE  HUNDRED THOUSAND DOLLARS PER PERSON, THREE HUNDRED
THOUSAND DOLLARS PER  OCCURRENCE,  BODILY  INJURY;  AND  FIFTY  THOUSAND
DOLLARS EACH OCCURRENCE AND AGGREGATE, PROPERTY DAMAGE.
  THESE INSURANCE REQUIREMENTS SHALL APPLY TO HOME IMPROVEMENT CONTRACTS
PERFORMED  IN  ALL POLITICAL SUBDIVISIONS THAT DO NOT CONTAIN ANY INSUR-
ANCE REQUIREMENTS FOR SUCH CONTRACTS.
  S 5. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

co-Sponsors

View additional co-sponsors

2015-S5126A (ACTIVE) - Details

See Assembly Version of this Bill:: A7339
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §§770 & 771, add 771-b, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2017-2018: A3246
2019-2020: A7531

2015-S5126A (ACTIVE) - Summary

Relates to home improvement contract provisions.

2015-S5126A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5126A

 TITLE OF BILL :  An act to amend the general business law, in
relation to home improvement contract provisions

 PURPOSE :

Requires home improvement contractors to have insurance coverage and
regulates their conduct when making repairs covered by homeowner's
insurance.

 SUMMARY OF PROVISIONS :

Section 1: Amends paragraphs (d) and (e) of subdivision 3 of section
770 of the general business law, as amended by chapter 32 of the laws
of 1989. Adds three new paragraphs (f), (g), and (h) to subdivision 3
of section 770 of the general business law.

Section 2: Amends Paragraph (h) of subdivision 1 of section 771 of the
general business law. Adds a new paragraph (i) to subdivision 1 of
section 771 of the general business law.

Section 3: Adds new subdivisions 3,4, 5, 6, 7, 8, and 9 to section 771
of the general business law. Section 4: Adds section 771-B to the
general business law. Section 5: Establishes the effective date.

 JUSTIFICATION :

While the vast majority of home improvement contractors are honest and
scrupulous businesspersons, there is a very small group of people who
present themselves as legitimate contractors but are actually con
artists. These illegitimate groups of people are commonly known as
"storm chasers" who come into an area right after a natural disaster,
promising to quickly and efficiently restore the properties of people
who have suffered damage and loss from the disaster. Storm chasers end
up either performing extremely substandard work or do not even perform
the work. These con artists will often walk door to door in a
neighborhood and use high-pressure sales tactics to compel consumers
into signing home repair contracts. A particular target for storm
chasers is the elderly, especially those who have paid off their
mortgage because if the mortgage is not paid off then the insurer must
include the mortgage holder (usually a bank) on the check.

This proposed legislation would establish a prohibition on home
improvement contractors advertising or promising to pay or rebate all
or any part of an insurance deductible as an inducement to the sale of
any goods or services. The measure allows a residential property owner
to cancel a home improvement contract within 3 business days after
receiving notice from the owner's insurer that the claim has been
denied in whole or in part. Within 10 (ten) days after cancellation,
the home improvement contractor is required to return any payments
made by the insured and note or evidence of indebtedness. The
contractor would be entitled to compensation for their work on
emergency repairs.

 LEGISLATIVE HISTORY :

This is a new bill.

 FISCAL IMPLICATIONS :

None to the State.

 EFFECTIVE DATE :
This act shall take effect 180 days after enactment.

2015-S5126A (ACTIVE) - Bill Text download pdf

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

                                 5126--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               May 4, 2015
                               ___________

Introduced  by  Sen. AMEDORE -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Consumer  Protection  --
  recommitted to the Committee on Consumer Protection in accordance with
  Senate  Rule  6, sec. 8 -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the general business law, in relation to  home  improve-
  ment contract provisions

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

  Section 1. Subdivision 3 of section 770 of the general business law is
amended by adding three new paragraphs (f),  (g)  and  (h)  to  read  as
follows:
  (F)  AN  OWNER  OR FARM PROPERTY OWNER WHO PHYSICALLY PERFORMS, OR HAS
EMPLOYEES WHO PERFORM REPAIRING, REMODELING,  ALTERING,  CONVERTING,  OR
MODERNIZING  OF,  OR  ADDING TO, THEIR OWN DWELLING OR ANOTHER STRUCTURE
LOCATED ON THE PROPERTY OWNED BY THE PERSON WITHOUT THE ASSISTANCE OF  A
HOME IMPROVEMENT CONTRACTOR.
  (G)  ANY  AUTHORIZED  EMPLOYEE  OR REPRESENTATIVE OF THE UNITED STATES
GOVERNMENT, THE STATE OF NEW YORK, OR ANY POLITICAL SUBDIVISION PERFORM-
ING THE REPAIRING, REMODELING, ALTERING, CONVERTING, OR MODERNIZING  OF,
OR ADDING TO, GOVERNMENT PROPERTY.
  (H) ANY PERSON WHO FURNISHES ANY FABRICATED OR FINISHED PRODUCT, MATE-
RIAL,  OR  ARTICLE  OF  MERCHANDISE  THAT  IS  NOT  INCORPORATED INTO OR
ATTACHED TO REAL PROPERTY BY THE PERSON SO AS TO BECOME AFFIXED  TO  THE
RESIDENTIAL PROPERTY.
  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) THE NAME OF THE INSURER, TYPE OF INSURANCE COVERAGE AS REQUIRED BY
SECTION SEVEN HUNDRED SEVENTY-ONE-B OF THIS ARTICLE, AND  THE  INSURANCE
POLICY LIMITS OBTAINED BY THE HOME IMPROVEMENT CONTRACTOR.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10615-02-6

S. 5126--A                          2

  S  3.  Section  771  of  the general business law is amended by adding
seven new subdivisions 3, 4, 5, 6, 7, 8 and 9 to read as follows:
  3. A HOME IMPROVEMENT CONTRACTOR SHALL NOT ADVERTISE OR PROMISE TO PAY
OR  REBATE  ALL OR ANY PORTION OF ANY INSURANCE DEDUCTIBLE AS AN INDUCE-
MENT TO THE SALE OF GOODS OR SERVICES. AS USED IN THIS SECTION, A  PROM-
ISE  TO  PAY  OR  REBATE INCLUDES GRANTING ANY ALLOWANCE OR OFFERING ANY
DISCOUNT AGAINST THE FEES TO BE CHARGED OR PAYING  THE  INSURED  OR  ANY
PERSON  DIRECTLY  OR INDIRECTLY ASSOCIATED WITH THE PROPERTY ANY FORM OF
COMPENSATION, GIFT, PRIZE, BONUS, COUPON, CREDIT, REFERRAL FEE, OR OTHER
ITEM OF MONETARY VALUE FOR ANY REASON.
  4. AN OWNER WHO HAS ENTERED  INTO  A  WRITTEN  CONTRACT  WITH  A  HOME
IMPROVEMENT  CONTRACTOR  TO PROVIDE GOODS OR SERVICES TO BE PAID UNDER A
PROPERTY AND CASUALTY INSURANCE POLICY MAY CANCEL THE  HOME  IMPROVEMENT
CONTRACT  PRIOR  TO MIDNIGHT ON THE THIRD BUSINESS DAY AFTER THE INSURED
PARTY HAS RECEIVED WRITTEN OR ELECTRONIC NOTICE FROM  THE  INSURER  THAT
ALL OR ANY PART OF THE CLAIM OR CONTRACT IS NOT A COVERED LOSS UNDER THE
INSURANCE  POLICY. CANCELLATION OCCURS WHEN WRITTEN OR ELECTRONIC NOTICE
OF CANCELLATION IS GIVEN TO THE HOME IMPROVEMENT CONTRACTOR.  NOTICE  OF
CANCELLATION,  IF GIVEN BY MAIL, SHALL BE DEEMED GIVEN WHEN DEPOSITED IN
A MAILBOX PROPERLY ADDRESSED AND POSTAGE PREPAID. NOTICE OF CANCELLATION
SHALL BE SUFFICIENT IF IT INDICATES THE INTENTION OF THE OWNER NOT TO BE
BOUND. NOTWITHSTANDING THE FOREGOING, THIS SUBDIVISION SHALL  NOT  APPLY
TO  A  TRANSACTION  IN WHICH THE OWNER HAS INITIATED THE CONTACT AND THE
HOME IMPROVEMENT IS NEEDED TO MEET A BONA FIDE EMERGENCY OF  THE  OWNER,
AND  THE OWNER FURNISHES THE HOME IMPROVEMENT CONTRACTOR WITH A SEPARATE
DATED AND SIGNED PERSONAL STATEMENT IN THE OWNER'S HANDWRITING  DESCRIB-
ING THE SITUATION REQUIRING IMMEDIATE REMEDY AND EXPRESSLY ACKNOWLEDGING
AND  WAIVING  THE  RIGHT  TO CANCEL THE HOME IMPROVEMENT CONTRACT WITHIN
THREE BUSINESS DAYS. FOR THE  PURPOSES  OF  THIS  SUBDIVISION  THE  TERM
"OWNER" SHALL MEAN AN OWNER OR ANY REPRESENTATIVE OF AN OWNER.
  5. WITHIN TEN DAYS AFTER A CONTRACT REFERRED TO IN SUBDIVISION FOUR OF
THIS  SECTION  HAS BEEN CANCELLED, THE HOME IMPROVEMENT CONTRACTOR SHALL
TENDER TO THE OWNER ANY PAYMENTS, PARTIAL PAYMENTS, OR DEPOSITS MADE AND
ANY NOTE OR OTHER  EVIDENCE  OF  INDEBTEDNESS.  IF,  HOWEVER,  THE  HOME
IMPROVEMENT  CONTRACTOR  HAS  PERFORMED ANY EMERGENCY SERVICES, ACKNOWL-
EDGED BY THE OWNER IN WRITING TO BE NECESSARY TO PREVENT DAMAGE  TO  THE
PREMISES,  THE  HOME  IMPROVEMENT  CONTRACTOR  SHALL  BE ENTITLED TO THE
REASONABLE VALUE OF SUCH SERVICES. ANY PROVISION IN A CONTRACT  REFERRED
TO  IN SUBDIVISION FOUR OF THIS SECTION THAT REQUIRES THE PAYMENT OF ANY
FEE FOR ANYTHING EXCEPT EMERGENCY  SERVICES  SHALL  NOT  BE  ENFORCEABLE
AGAINST THE OWNER WHO HAS CANCELLED A CONTRACT PURSUANT TO THIS SECTION.
  6. A HOME IMPROVEMENT CONTRACTOR SHALL NOT REQUIRE AN OWNER TO PROVIDE
A DEPOSIT OF MORE THAN ONE-HALF OF THE AGREED UPON CONSIDERATION FOR THE
WORK  AND  MATERIALS.   IN ADDITION, A HOME IMPROVEMENT CONTRACTOR SHALL
NOT MANDATE THAT A PARTICULAR FORM  OF  PAYMENT  BE  MADE  IN  ORDER  TO
COMMENCE PERFORMANCE OF THE HOME IMPROVEMENT.
  7.  A  HOME  IMPROVEMENT  CONTRACTOR  SHALL  NOT  ABANDON,  OR FAIL TO
PERFORM, WITHOUT JUSTIFICATION, ANY HOME IMPROVEMENT CONTRACT, NOR SHALL
THE HOME IMPROVEMENT CONTRACTOR DEVIATE FROM OR DISREGARD PLANS OR SPEC-
IFICATIONS IN ANY MATERIAL RESPECT WITHOUT THE  CONSENT  OF  THE  OWNER.
FURTHERMORE, A HOME IMPROVEMENT CONTRACTOR SHALL ABIDE BY THE APPLICABLE
BUILDING  CODE  FOR  THE  JURISDICTION WHERE THE RESIDENTIAL PROPERTY IS
LOCATED.
  8. A HOME IMPROVEMENT CONTRACTOR SHALL NOT FAIL TO PAY  FOR  MATERIALS
OR  SERVICES  RENDERED  IN  CONNECTION  WITH A HOME IMPROVEMENT CONTRACT
WHERE THE CONTRACTOR HAS RECEIVED SUFFICIENT FUNDS AS  PAYMENT  FOR  THE

S. 5126--A                          3

PARTICULAR  CONTRACT FOR WHICH THE SERVICES OR MATERIAL WERE RENDERED OR
PURCHASED.
  9.  A  HOME  IMPROVEMENT  CONTRACTOR  SHALL NOT PERFORM THE REPORTING,
ADJUSTING, OR NEGOTIATING OF A CLAIM ON BEHALF OF THE  OWNER  AND  SHALL
NOT  RECEIVE  COMPENSATION  FOR THE REFERRAL TO ANY ENTITY THAT REPORTS,
ADJUSTS OR NEGOTIATES A CLAIM ON BEHALF OF AN OWNER.
  S 4. The general business law is amended by adding a new section 771-b
to read as follows:
  S 771-B. INSURANCE REQUIREMENTS FOR HOME IMPROVEMENT CONTRACTORS. 1. A
HOME IMPROVEMENT CONTRACTOR SHALL PROVIDE TO THE OWNER ADEQUATE PROOF OF
INSURANCE OF THE FOLLOWING TYPES AND IN THE FOLLOWING AMOUNTS:
  (A) A CERTIFICATE OF WORKERS' COMPENSATION COVERING ALL  EMPLOYEES  OF
THE HOME IMPROVEMENT CONTRACTOR. IF THE HOME IMPROVEMENT CONTRACTOR DOES
NOT  HAVE  ANY EMPLOYEES, THEN THE CONTRACTOR MUST PROVIDE A CERTIFICATE
OF ATTESTATION EXEMPTION (CE-200) FORM FROM  THE  WORKERS'  COMPENSATION
BOARD.
  (B) CERTIFICATES OF GENERAL LIABILITY AND PROPERTY DAMAGE INSURANCE IN
THE  AMOUNT  OF  ONE  HUNDRED THOUSAND DOLLARS PER PERSON, THREE HUNDRED
THOUSAND DOLLARS PER OCCURRENCE FOR BODILY INJURY;  AND  FIFTY  THOUSAND
DOLLARS PER OCCURRENCE AND IN THE AGGREGATE FOR PROPERTY DAMAGE.
  2.  THE  PROVISIONS  OF  THIS  SECTION SHALL APPLY TO HOME IMPROVEMENT
CONTRACTS PERFORMED IN ALL POLITICAL SUBDIVISIONS THAT  DO  NOT  CONTAIN
ANY INSURANCE REQUIREMENTS FOR SUCH CONTRACTS.
  S 5. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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Senate Bill S5126A

Sponsored By

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

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Bill Amendments

2015-S5126 - Details

2015-S5126 - Summary

2015-S5126 - Sponsor Memo

2015-S5126 - Bill Text download pdf

co-Sponsors

2015-S5126A (ACTIVE) - Details

2015-S5126A (ACTIVE) - Summary

2015-S5126A (ACTIVE) - Sponsor Memo

2015-S5126A (ACTIVE) - Bill Text download pdf

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Senate Bill S5126A

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Sponsored By

George Amedore

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Actions

Bill Amendments

2015-S5126 - Details

2015-S5126 - Summary

2015-S5126 - Sponsor Memo

2015-S5126 - Bill Text download pdf

co-Sponsors

Rich Funke

Jesse Hamilton

George Latimer

Diane J. Savino

2015-S5126A (ACTIVE) - Details

2015-S5126A (ACTIVE) - Summary

2015-S5126A (ACTIVE) - Sponsor Memo

2015-S5126A (ACTIVE) - Bill Text download pdf

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