Exterior residential storm damage repair contracts.

WORKING DRAFT
2014
STATE OF
WYOMING
14LSO-0063

HOUSE BILL
NO.

HB0017

Exterior residential storm damage repair contracts.

Sponsored by:
Joint Corporations, Elections and Political Subdivisions Interim Committee

A BILL

for

AN ACT relating to consumer protection; providing disclosure requirements for exterior residential storm damage repair solicitations, proposals and repair contracts; providing for cancellation of exterior residential storm damage repair contracts; providing remedies; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.

W.S. 40
‑
12
‑
601 through 40
‑
12
‑
606
are
created to read:

ARTICLE 6
EXTERIOR RESIDENTIAL STORM DAMAGE REPAIR CONTRACTS

40
‑
12
‑
601.

Definitions.

(a)

As used in this article:

(
i
)

"
Contr
actor"
means a person or entity in the business of contracting or offering to contract with an owner or possessor of residential real estate to repair or replace roofing, siding or gutter systems
;

(ii)

"
Exterior storm damage
" means
damage caused by wind or hail to the siding, gutters, roof system or window system of a residential building;

(iii)

"Residential building" means a single or multiple family dwelling of up to four (4) units and ancillary buildings, if any;

(iv)

"Roof system" includes roof coverings, roof sheathing, roof weatherproofing, roof framing, roof ventilation and roof insulation
.

40
‑
12
‑
602.

Requirements for
exterior residential storm damage repair
solicitations and advertisements.

(a)

An
individual or
other entity
contacting anyone for the purposes
of soliciting exterior residential storm damage repair services, including general advertisements for such services,

shall
disclose the following informati
on to the consumer:

(
i
)

The business name;

(ii)

Beginning July 1, 2014, t
he contractor license or re
gistration number for any jurisdiction
in which
he
hold
s
a contractor
’
s license
on all contracts, bids and advertisements involving exterior residential storm damage repair services.

(b)

Exterior residential storm damage repair contractors soliciting exterior residential storm damage repair services in this state shall not:

(
i
)

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, including granting any allowance or offering any discount against the fees to be charged or paying any compensation directly or indirectly to any person associated with the property
;

(ii)

Accept money or any form of compensation in exchange for allowing another exterior residential storm damage repair contractor to use its business name or contractor’s license number
. This prohibition does not exclude bona fide partnership or subcontractor relationships
;

(iii)

Exclusively represent, offer to exclusively represent, or advertise to exclusively represent a homeowner with respect to any insurance claim in connection with exterior residential storm damage repair services; or

(iv)

Claim to be, or act as, an adjuster as defined in W.S. 26
‑
1
‑
102(
a)(
i
) or an insurance consultant as defined in W.S. 26
‑
9
‑
220, with respect to any insurance claim.

40
‑
12
‑
603.

Disclosure requirements for
exterior residential storm damage repair

proposals.

(a)

An individual or
other entity
who prepares a repair
proposal
for
exterior residential storm damage
repair
services in anticipation
of

entering into
an
exterior residential storm damage repair contract shall

disclose
the following informatio
n to the consumer:

(
i
)

A precise description and location of all damage claimed or
included in the repair proposal;

(ii)

A detailed description and itemization of any emerg
ency repairs already completed; and

(iii)

If damaged areas are not included
in
the repair
proposal
, a specification of those areas and any reason for their exclusion from the repair
proposal.

(b)

The
disclosures required under subsection (a) of this section shall
be made in writing
and shall be
included
in
the repair
proposal.

40
‑
12
‑
604.

Disclosure requirements for
exterior residential storm damage repair
contracts.

(a)

Any contract for
exterior residential storm damage repairs
shall include
all of
the following:

(
i
)

A copy of a repair
proposal
that contains the disclosures
required under W.S. 40
‑
12
‑
603(
a); and

(ii)

A disclosur
e that the consumer
is responsible for payment for any work performed if the insurer should deny payment or coverage
of
any part of the loss.

40
‑
12
‑
605.

E
xterior residential storm damage repair
contracts; right to cancel.

(a)

A person who has entered into a written contract with a
n

exterior residential storm damage repair
contractor to provide
exterior residential storm damage repair

goods and services has the right to cancel the contract within
five (5) business days

of the date in which the contract was entered into or, if the services are
to be paid
directly by or on behalf of the consumer
from the proceeds of a property or casualty insurance policy
within five (5) business days
after the
consumer
has received notice in writing from the insurer that the claim has been denied, in whole or in part
, whichever is later.

Cancellation is evidenced by the
consumer
giving written notice of cancellation to the
exterior residential storm damage
repair

contractor at the address stated in the contract.

Notice of cancellation
may be in electronic form, effective the date of the electronic transmission or
, if given by mail, is eff
ective upon postmark
, properly addressed to the
exterior residential storm damage repair

contractor and postage prepaid.
Written notice also may be given to the
exterior residential storm damage repair
contractor by personal delivery.
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
n
ot to be bound by the contract.

(b)

Before entering a contract referred to in
subsection (a) of this section
, the
exterior residential storm damage repair

contractor
shall:

(
i
)

Furnish the
consumer
with a statement in boldface type of a minimum size of
twelve
(1
2
)
points, in substantially the following form: "You may cancel this contract at any time within
five (5)
business days
of the date in which the contract was entered into or within five (5) business days
after you have been notified that your insurer has
,
in whole or
in
part, denied your claim to pay for the goods and services to be provided under this
contract
, whichever is later
. See attached notice of cancellation form for an explanation of this right
.
”
;
and

(ii)

F
urnish each
consumer
a fully completed form captioned, "NOTICE OF CANCELLATION," which shall be attached to
or accompany
the contract and which shall contain in boldface type of a minimum size of
twelve
(1
2
)
points the following information and statements:

"NOTICE
OF CANCELLATION

You may cancel this contract within five (5) business days from when it is entered into for any reason or, if your insurer
in whole or in part denies your claim to pay for goods and services to be provided under this contract, you may cancel the contract by mailing or delivering
(including via electronic transmission)
a signed and dated copy of this cancellation notice or any other written notice
-
to (name of
exterior residential storm damage repair

contractor) at (address of
exterior residential storm damage repair

contractor's place of business
, e-mail address and facsimile number if applicable
) at any time within
five (5)
business days
of the date in which the contract was entered into or within five (5) business days
after you have been notified that your claim has been denied
in whole or in part
, whichever is later
. If you cancel, any payments made by you under the contract will be returned within ten
(10)
business days following receipt by the
exterior residential storm damage repair

contractor of your cancellation notice.

I HEREBY CANCEL THIS TRANSACTION.
.....
(
date
)
.....
(
Consumer
's signature)"

(c)

Within ten
(10)
days after a contract referred to in
subsection (a) of this section
has been cance
l
led, the
exterior residential storm damage repair

contractor
shall
tender to the
consumer
any payments made by the
consumer
and any note or other evidence of indebtedness.
I
f the
exterior residential storm damage repair

contractor has performed any emergency services, the
exterior residential storm damage repair

contractor is entitled to
separately bill the consumer for
such services
if
the
consumer
has received a detailed description and itemization of charges for those services.

40
‑
12
‑
606.

Private remedies.

Any person who violates this article shall be subject to the remedy provisions relating to unlawful trade practices provided in W.S. 40
‑
12
‑
108 and 40
‑
12
‑
109.

Section 2.

This act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(END)

1
HB0017