House Amendment to Senate File 466 S-3329 Amend Senate File 466, as amended, passed, and 1 reprinted by the Senate, as follows: 2 1. By striking everything after the enacting clause 3 and inserting: 4 < Section 1. NEW SECTION . 103A.71 Residential 5 contractors. 6 1. As used in this section: 7 a. “Catastrophe” means a natural occurrence 8 including but not limited to fire, earthquake, tornado, 9 windstorm, flood, or hail storm, which damages or 10 destroys residential real estate. 11 b. “Residential contractor” means a person in 12 the business of contracting to repair or replace 13 residential roof systems or perform any other 14 exterior repair, exterior replacement, or exterior 15 reconstruction work resulting from a catastrophe 16 on residential real estate or a person offering to 17 contract with an owner or possessor of residential real 18 estate to carry out such work. 19 c. “Residential real estate” means a new or existing 20 building, including a detached garage, constructed for 21 habitation by one to four families. 22 d. “Roof system” includes roof coverings, roof 23 sheathing, roof weatherproofing, and roof insulation. 24 2. A residential contractor shall not advertise 25 or promise to rebate any insurance deductible or 26 any portion thereof as an inducement to the sale of 27 goods or services. A promise to rebate any insurance 28 deductible includes granting any allowance or offering 29 any discount against the fees to be charged or paying 30 a person directly or indirectly associated with the 31 residential real estate any form of compensation, 32 except for items of nominal value. A residential 33 contractor may display a sign or any other type of 34 advertisement on a person’s premises provided the 35 person consents to the display and the person receives 36 no compensation from the residential contractor for the 37 placement of the sign or advertising. 38 3. A residential contractor shall not represent 39 or negotiate on behalf of, or offer or advertise 40 to represent or negotiate on behalf of, an owner or 41 possessor of residential real estate on any insurance 42 claim in connection with the repair or replacement 43 of roof systems, or the performance of any other 44 exterior repair, exterior replacement, or exterior 45 reconstruction work on the residential real estate. 46 4. a. A residential contractor contracting to 47 provide goods or services to repair damage resulting 48 from a catastrophe shall provide the person with whom 49 it is contracting a fully completed duplicate notice in 50 -1- SF466.3056.H (1) 84 mb 1/ 2 #1.

at least ten-point bold type which shall contain the 1 following statement: 2 NOTICE OF BINDING CONTRACT 3 You are entering into a legally binding contract 4 with (insert name of residential contractor) to provide 5 goods and services to repair damage resulting from 6 a naturally occurring catastrophe including but not 7 limited to a fire, earthquake, tornado, windstorm, 8 flood, or hail storm. Except as described in the next 9 sentence, you are responsible for payment to (insert 10 name of residential contractor) for the cost of all 11 goods and services provided whether or not you receive 12 payment from any property and casualty insurance 13 policy with respect to the damage. Your contract 14 with (insert name of residential contractor) is void 15 and you have no responsibility for payment under the 16 contract if (insert name of residential contractor) 17 either advertises or promises to rebate all or any 18 portion of your insurance deductible, or represents or 19 negotiates, or offers to represent or negotiate, on 20 your behalf with your property and casualty insurance 21 company on any insurance claim relating to the damage 22 you have contracted to have repaired. Your signature 23 below acknowledges your understanding of these legal 24 obligations and rights. 25 ________________________ 26 Date 27 ________________________ 28 Signature 29 b. The notice shall be executed by the person with 30 whom the residential contractor is contracting prior to 31 or contemporaneously with entering into the contract. 32 5. A contract entered into with a residential 33 contractor is void if the residential contractor 34 violates subsection 2, 3, or 4. 35 6. A residential contractor violating this section 36 is subject to the penalties and remedies prescribed by 37 this chapter. 38 7. This section shall not be construed to alter 39 or affect the rights and duties prescribed in chapter 40 555A. 41 Sec. 2. APPLICABILITY. This Act applies to 42 contracts entered into on or after the effective date 43 of this Act. > 44 2. Title page, line 2, after < penalty > by inserting 45 < and including applicability provisions > 46 -2- SF466.3056.H (1) 84 mb 2/ 2