RIA AGA Legislative Task Force Update - August 2024
RIA's AGA Legislative Task Force is responsible for monitoring legislation across the United States that may impact restoration professionals in the areas of mold remediation, pesticide application, contractor laws & regulations, prevailing wage and more. The following update is being provided to help RIA members stay informed of key legislative developments.
The RIA encourages members to report legislative issues in their state to the RIA's AGA Legislative Task Force for review.
Insurance Legislation
Louisiana
LA HB651 was signed into law on May 28, 2024 and amends and reenacts Louisiana laws related to insurance fraud and unfair trade practices. It modifies the definition of "fraudulent insurance act" to include presenting documents that misrepresent the scope of damages or repair costs for property insurance claims.
LA SB323 was signed into law on May 7, 2024 and amends & repeals certain existing legislative provisions pertaining to insurance claim settlement practices in Louisiana. It works to define loss adjustments and claims, including those occurring after catastrophic disasters, and lays out the obligations insurers have towards good faith handling of claims.
North Carolina
NC S124 was signed into law on June 20, 2024 and makes several changes to regulate the roofing and insurance industries in North Carolina. It requires a 5-business day cancellation period for residential roof replacement or repair contracts following an insurance claim denial, prohibits residential roofing contractors from beginning work or collecting payment during this period, and defines key terms like "residential roof replacement and repair services." The bill also permits certain insurance trade practices related to gifts, rebates, and services offered for free or at a reduced cost, and places a $50 cap on insurance referral fees paid to unlicensed individuals.
Rhode Island
RI H7507 was signed into law on June 29, 2024 and provides that any insurer refusing to honor a "direction to pay" executed by an insured for payment on a property damage benefit would constitute an unfair claims practice provided, however, that the amount of the claim to be paid directly to the restoration company shall be no greater than five thousand dollars ($5,000), and that the restoration company is licensed pursuant to § 5-65-3.
Contractor Legislation
Colorado
CO HB1315 was signed into law on June 5, 2024 and requires the Colorado Division of Insurance to conduct a study and make recommendations regarding the establishment of uniform standards for the inspection, testing, and remediation of residential properties that have been damaged by smoke, soot, ash, and other contaminants as a result of a fire. The study will consider existing practices, standards, and guidelines for cleaning, repairing, and remediating such properties, as well as the extent to which homeowners insurance policies cover the costs of these activities. The Division must engage with relevant stakeholders, such as public health experts and industry representatives, in conducting the study, and submit a report with its findings and recommendations to the state legislature by January 1, 2026. The bill also appropriates funding from the Division of Insurance Cash Fund to the Division to implement the study.
Florida
FL H0939 was enacted on May 3, 2024 and amends various Florida statutes related to consumer protection. It allows residential property owners to cancel roof replacement or repair contracts without penalty within 10 days or by the official start date if the contract was entered during a state of emergency. Contractors must include specific language about this cancellation right in such contracts.
Louisiana
LA SB392 was signed into law on May 23, 2024 and amends and reenacts several sections of the Louisiana Contractor Licensing Law to provide changes related to the types of contracting services, cost thresholds for licensure, and terms and procedures for contractors. Specifically, it lowers the cost threshold for residential construction projects that require a contractor's license from $75,000 to $50,000. It also revises the definition of "home improvement contracting" to specify that it does not include certain structural work, and it creates exemptions for certain subcontractors and home improvement workers. The bill also adjusts the cost thresholds for when construction management licenses are required for different types of construction projects.
Minnesota
SF 4097 amends existing residential contractor law specifically related to “residential contractors” performing home repair and improvements related to insurance claims. There are essentially two parts – prohibited actions and required actions. First, the residential contractor is prohibited from engaging in certain activities such as promising to pay insurance deductible or offering to compensate the insured, interpreting or providing advice on the client’s insurance policy, and adjusting the insurance claim (unless a licensed adjuster). Second, the residential contractor is required to provide a detailed and itemized good faith estimate and written notice of this law at the time of the initial agreement. IMORTANT: If the residential contractor fails to comply with the requirements, the insurer is not obligated to consider the estimate prepared by the residential contractor. In general, this law is not new. It has been amended to include additional language related to prohibited actions and adds the good faith estimate requirement.
Public Adjuster Legislation
Maryland
MD HB36 was signed into law on May 16, 2024 and prohibits public adjusters or anyone acting on their behalf from soliciting or attempting to solicit clients between the hours of 8:00 p.m. and 8:00 a.m. It also alters the required statements in public adjuster contracts, including changing the rescission period for such contracts from 3 or 7 business days to 10 business days. Additionally, the bill requires public adjusters to provide notice to the Insurance Commissioner within 1 business day after entering into a contract during or within 72 hours of the loss giving rise to an insurance claim.
Mold Legislation
Illinois
IL SB1087 was signed into law May 25, 2024 and amends the Mold Remediation Registration Act in Illinois. It requires the Department of Public Health to establish a public awareness campaign to educate the public about the dangers of mold and the importance of proper mold removal. The bill also defines "Third-party certification" as a mold remediation certification offered by the Institute of Inspection Cleaning and Restoration Certification or its successor; the National Organization of Remediators and Microbial Inspectors or its successor; or any other national nonprofit organization that has been approved by the Department. It mandates the Department to report annually to the state legislature on the implementation of federal and state regulations related to the health effects of mold and the training, certification, and licensing of mold remediation providers. Additionally, the bill requires the Department to adopt rules to implement a program where mold remediation service providers must register with the state and provide evidence of an active third-party certification and financial responsibility.
Virginia
VA HB1270 was signed into law on April 4, 2024 and updates the Virginia Consumer Protection Act by prohibiting the sale of services as a professional mold remover unless the seller holds a mold remediation certification from the Institute of Inspection, Cleaning and Restoration Certification (IICRC). Individuals or companies who are found to be in violation of these terms are subject to penalties under the Act.
Asbestos Legislation
Michigan
MI HB4188 was enacted on June 6, 2024 and states that an owner or operator that submits a notice of intention of asbestos removal or demolition is responsible for payment of a notification fee of $100.00. In addition, the owner or operator is responsible for payment of a $10.00 modification fee each time the submitted notice is modified. A public entity may pass through the cost for the notice fee and any modification fee to the asbestos abatement contractor, unless the pass through would violate the terms of a contract entered into before the effective date of the amendatory act that added this section.
MI SB0225 was enacted on June 20, 2024 and prohibits public entities in Michigan from entering into asbestos abatement project contracts with contractors that have received a significant number of environmental regulation violation notices or been subject to administrative consent orders or consent judgments.