Senate File 2293 H-8315 Amend Senate File 2293, as amended, passed, and 1 reprinted by the Senate, as follows: 2 1. Page 1, before line 1 by inserting: 3 < Section 1. NEW SECTION . 103A.71 Residential 4 contractors. 5 1. As used in this section: 6 a. “Catastrophe” means a natural occurrence 7 including but not limited to fire, earthquake, tornado, 8 windstorm, flood, or hail storm, which damages or 9 destroys residential real estate. 10 b. “Residential contractor” means a person in 11 the business of contracting to repair or replace 12 residential roof systems or perform any other 13 exterior repair, exterior replacement, or exterior 14 reconstruction work resulting from a catastrophe 15 on residential real estate or a person offering to 16 contract with an owner or possessor of residential real 17 estate to carry out such work. 18 c. “Residential real estate” means a new or existing 19 building, including a detached garage, constructed for 20 habitation by one to four families. 21 d. “Roof system” includes roof coverings, roof 22 sheathing, roof weatherproofing, and roof insulation. 23 2. A residential contractor shall not advertise 24 or promise to rebate any insurance deductible or 25 any portion thereof as an inducement to the sale of 26 goods or services. A promise to rebate any insurance 27 deductible includes granting any allowance or offering 28 any discount against the fees to be charged or paying 29 a person directly or indirectly associated with the 30 residential real estate any form of compensation, 31 except for items of nominal value. A residential 32 contractor may display a sign or any other type of 33 advertisement on a person’s premises provided the 34 person consents to the display and the person receives 35 no compensation from the residential contractor for the 36 placement of the sign or advertising. 37 3. A residential contractor shall not represent 38 or negotiate on behalf of, or offer or advertise 39 to represent or negotiate on behalf of, an owner or 40 possessor of residential real estate on any insurance 41 claim in connection with the repair or replacement 42 of roof systems, or the performance of any other 43 exterior repair, exterior replacement, or exterior 44 reconstruction work on the residential real estate. 45 4. a. A residential contractor contracting to 46 provide goods or services to repair damage resulting 47 from a catastrophe shall provide the person with whom 48 it is contracting a fully completed duplicate notice in 49 at least ten-point bold type which shall contain the 50 -1- SF2293.5268 (2) 84 je/sc 1/ 3 #1.

following statement: 1 NOTICE OF BINDING CONTRACT 2 You are entering into a legally binding contract 3 with (insert name of residential contractor) to provide 4 goods and services to repair damage resulting from 5 a naturally occurring catastrophe including but not 6 limited to a fire, earthquake, tornado, windstorm, 7 flood, or hail storm. Except as described in the next 8 sentence, you are responsible for payment to (insert 9 name of residential contractor) for the cost of all 10 goods and services provided whether or not you receive 11 payment from any property and casualty insurance 12 policy with respect to the damage. Your contract 13 with (insert name of residential contractor) is void 14 and you have no responsibility for payment under the 15 contract if (insert name of residential contractor) 16 either advertises or promises to rebate all or any 17 portion of your insurance deductible, or represents or 18 negotiates, or offers to represent or negotiate, on 19 your behalf with your property and casualty insurance 20 company on any insurance claim relating to the damage 21 you have contracted to have repaired. Your signature 22 below acknowledges your understanding of these legal 23 obligations and rights. 24 ________________________ 25 Date 26 ________________________ 27 Signature 28 b. The notice shall be executed by the person with 29 whom the residential contractor is contracting prior to 30 or contemporaneously with entering into the contract. 31 5. A contract entered into with a residential 32 contractor is void if the residential contractor 33 violates subsection 2, 3, or 4. 34 6. A residential contractor violating this section 35 is subject to the penalties and remedies prescribed by 36 this chapter. 37 7. This section shall not be construed to alter 38 or affect the rights and duties prescribed in chapter 39 555A. > 40 2. Page 21, after line 18 by inserting: 41 < Sec. ___. APPLICABILITY. The section of this Act 42 enacting section 103A.71 applies to contracts entered 43 into on or after July 1, 2012. > 44 3. Title page, line 3, after < date > by inserting 45 < and applicability > 46 4. By renumbering as necessary. 47 -2- SF2293.5268 (2) 84 je/sc 2/ 3 #2. #3.