Bill Text: IA SF466 | 2011-2012 | 84th General Assembly | Enrolled
Bill Title: A bill for an act relating to residential contractors and providing a penalty and including applicability provisions. (Formerly SSB 1168.) Effective 7-1-12.
Spectrum: Committee Bill
Status: (Passed) 2012-05-25 - Signed by Governor. S.J. 999. [SF466 Detail]
Download: Iowa-2011-SF466-Enrolled.html
Senate
File
466
AN
ACT
RELATING
TO
RESIDENTIAL
CONTRACTORS
AND
PROVIDING
A
PENALTY
AND
INCLUDING
APPLICABILITY
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
NEW
SECTION
.
103A.71
Residential
contractors.
1.
As
used
in
this
section:
a.
“Catastrophe”
means
a
natural
occurrence
including
but
not
limited
to
fire,
earthquake,
tornado,
windstorm,
flood,
or
hail
storm,
which
damages
or
destroys
residential
real
estate.
b.
“Residential
contractor”
means
a
person
in
the
business
of
contracting
to
repair
or
replace
residential
roof
systems
or
perform
any
other
exterior
repair,
exterior
replacement,
or
exterior
reconstruction
work
resulting
from
a
catastrophe
on
residential
real
estate
or
a
person
offering
to
contract
with
an
owner
or
possessor
of
residential
real
estate
to
carry
out
such
work.
c.
“Residential
real
estate”
means
a
new
or
existing
building,
including
a
detached
garage,
constructed
for
habitation
by
one
to
four
families.
d.
“Roof
system”
includes
roof
coverings,
roof
sheathing,
roof
weatherproofing,
and
roof
insulation.
2.
A
residential
contractor
shall
not
advertise
or
promise
to
rebate
any
insurance
deductible
or
any
portion
thereof
as
an
inducement
to
the
sale
of
goods
or
services.
A
promise
to
rebate
any
insurance
deductible
includes
granting
any
allowance
or
offering
any
discount
against
the
fees
to
be
charged
or
paying
a
person
directly
or
indirectly
associated
with
the
residential
real
estate
any
form
of
compensation,
except
for
items
of
nominal
value.
A
residential
contractor
may
display
a
sign
or
any
other
type
of
advertisement
on
a
person’s
premises
Senate
File
466,
p.
2
provided
the
person
consents
to
the
display
and
the
person
receives
no
compensation
from
the
residential
contractor
for
the
placement
of
the
sign
or
advertising.
3.
A
residential
contractor
shall
not
represent
or
negotiate
on
behalf
of,
or
offer
or
advertise
to
represent
or
negotiate
on
behalf
of,
an
owner
or
possessor
of
residential
real
estate
on
any
insurance
claim
in
connection
with
the
repair
or
replacement
of
roof
systems,
or
the
performance
of
any
other
exterior
repair,
exterior
replacement,
or
exterior
reconstruction
work
on
the
residential
real
estate.
4.
a.
A
residential
contractor
contracting
to
provide
goods
or
services
to
repair
damage
resulting
from
a
catastrophe
shall
provide
the
person
with
whom
it
is
contracting
a
fully
completed
duplicate
notice
in
at
least
ten-point
bold
type
which
shall
contain
the
following
statement:
NOTICE
OF
CONTRACT
OBLIGATIONS
AND
RIGHTS
You
may
be
responsible
for
payment
to
(insert
name
of
residential
contractor)
for
the
cost
of
all
goods
and
services
provided
whether
or
not
you
receive
payment
from
any
property
and
casualty
insurance
policy
with
respect
to
the
damage.
Pursuant
to
Iowa
law
your
contract
with
(insert
name
of
residential
contractor)
to
provide
goods
and
services
to
repair
damage
resulting
from
a
naturally
occurring
catastrophe
including
but
not
limited
to
a
fire,
earthquake,
tornado,
windstorm,
flood,
or
hail
storm
is
void
and
you
have
no
responsibility
for
payment
under
the
contract
if
(insert
name
of
residential
contractor)
either
advertises
or
promises
to
rebate
all
or
any
portion
of
your
insurance
deductible,
or
represents
or
negotiates,
or
offers
to
represent
or
negotiate,
on
your
behalf
with
your
property
and
casualty
insurance
company
on
any
insurance
claim
relating
to
the
damage
you
have
contracted
to
have
repaired.
Your
signature
below
acknowledges
your
understanding
of
these
legal
obligations
and
rights.
________________________
Date
________________________
Signature
b.
The
notice
shall
be
executed
by
the
person
with
whom
the
residential
contractor
is
contracting
prior
to
or
contemporaneously
with
entering
into
the
contract.
5.
A
contract
entered
into
with
a
residential
contractor
is
void
if
the
residential
contractor
violates
subsection
2,
3,
or
4.
Senate
File
466,
p.
3
6.
a.
A
residential
contractor
violating
this
section
is
subject
to
the
penalties
and
remedies
prescribed
by
this
chapter.
b.
A
violation
of
subsection
2
or
3
by
a
residential
contractor
is
an
unlawful
practice
pursuant
to
section
714.16.
Sec.
2.
APPLICABILITY.
This
Act
applies
to
contracts
entered
into
on
or
after
the
effective
date
of
this
Act.
______________________________
JOHN
P.
KIBBIE
President
of
the
Senate
______________________________
KRAIG
PAULSEN
Speaker
of
the
House
I
hereby
certify
that
this
bill
originated
in
the
Senate
and
is
known
as
Senate
File
466,
Eighty-fourth
General
Assembly.
______________________________
MICHAEL
E.
MARSHALL
Secretary
of
the
Senate
Approved
_______________,
2012
______________________________
TERRY
E.
BRANSTAD
Governor
