Key Takeaways
- Notable legislative movement occurred this week in Utah, Virginia, and Washington, with three key bills passing the first chamber. We also review legislation in New Hampshire, New Jersey, and Kentucky to help keep you informed.
General Contracting
Utah HB 40 provides comprehensive updates to the state code relating to contractor licensure and operations. This bill defines contractors under several titles (including general building contractor, general electrical contractor, general engineering contractor, etcetera). Under the provisions of this bill, all contractors are required to follow specific rules for licensure, including a detailed application process, payment of specified fees, completion of 30 hours of training, and any trade-specific qualifications. The bill also requires licensed contractors to complete six hours of continuing education every two-year license term. Additional provisions address financial responsibility, requirements for working with a political subdivision, and payment, including payments to subcontractors.
- If enacted, this bill would significantly update the state code relating to contractors by clarifying licensure and training requirements.
Kentucky SB 153 provides new requirements for restoration contractors and their disclosures. Under this bill, restoration contractors are required to provide a specific notice that, in sum, informs the customer that the contract does not constitute a reassignment of any casualty insurance policy. Furthermore, this bill provides several rules regarding contractors during declared states of emergency. ‘Contractors’ for this section are defined as those who offer roofing or siding repair or replacement; water damage mitigation or restoration; or tree or debris removal. Concerning the provisions, first, contractors are prohibited from soliciting business in person within designated disaster areas for 90 days after a state of emergency is declared without the prior approval of the property owner. Second, the Attorney General is empowered, during declared states of emergency, to require all defined contractors to assist the state in life and property-saving initiatives. This section also has specific licensing provisions, ranging from who is required to be registered and permitted to registration requirements.
- With two sponsors from the majority party, this bill is likely to reach a floor vote. If enacted, this bill would provide substantial changes to the restoration contracting industry in Kentucky, ranging from when and where restoration contractors are enabled to solicit customers, to casualty insurance policies, and to a disaster-related conscription of their services.
New Hampshire SB 523 establishes a Board of Builder Registration within the state Department of Labor. The Board will be responsible for adopting rules for license applications, renewals, continuing education, insurance minimums, complaint handling, investigations, sanctions, advertising, and verification for contractors and builders of residential properties. Under this bill, licenses granted would be valid for two years and would require at least eight hours of continuing education, including at least two hours focusing on updates to building codes.
If enacted, this bill would provide a regulatory body to oversee contractor licensing, potentially streamlining licensure for restoration contractors.
New Jersey A 1457 provides rules for the state licensure of general contractors, establishing a Board of General Contractors to oversee licensure and regulation. First, the bill sets the minimum education requirement for licensure as a general contractor to require an accredited program along with two years of field experience under licensed supervision, or an apprenticeship program that is approved by the state and four years of field experience under licensed supervision, or successful passage of the Certified Professional Constructor examination. Second, this bill enables individuals who can demonstrate, in a manner as determined by the state, completion of five years of field experience prior to the effective date of the bill under the supervision of a general contractor with at least ten years of experience to receive automatic licensure. Third, general contractor businesses will be required to employ at least one general contractor licensed under these changes. Finally, the board will be responsible for promulgating rules for continuing education requirements for contractors.
Restoration Insurance
Virginia HB 437 updates the state code relating to public adjusting, prohibiting adjusters from receiving any form of kickback for a public adjusting contract, as well as prohibiting public adjusters from advising policyholders to accept a settlement when the settlement would be disadvantageous to the policyholder or when repairs are not fully completed. Furthermore, individuals are prohibited from acting as or advertising themselves as public adjusters if they are not fully licensed, and any advertisements for licensed public adjusters must include their full name and license number.
- If enacted, this bill would expand consumer protections for individuals communicating with public adjusters, with certain provisions impacting restoration work. As public adjusters will not be permitted to advise policyholders to accept a settlement if restoration work is not complete, restoration contractors may have to operate within the scope of insurance longer than is beneficial to consumers.
Disaster Response
Washington SB 6178 prohibits individuals from soliciting, coercing, requiring, or contracting with any insured individual to enter into an assignment agreement (AOB) in whole or in part, wherein any post-loss insurance benefit under any property insurance coverage is assigned or transferred from the insured person. Further, any such assignment from previous policies is nullified.
- Read more about what AOB (Assignment of Benefits) is and is not on the RIA website.
- The preamble of this bill explains the sponsors rationale: ‘The legislature…finds that a post-loss assignment agreement can allow, but not limit, the third party, [usually a restoration or mitigation contractor,] to: Collect insurance payments without the involvement of the policyholder; restrict communications on the claim to prohibit the policyholder's involvement; and sue the insurance company without the consent of the policyholder. The legislature finds that the basis of the relationship between the policyholder and the policyholder's insurance company is one affected by the public interest. The consumer protections in claims handling, as set forth in the insurance code, are intended for the benefit of the policyholder. Therefore, the legislature intends that the policyholder be the entity that has control of the policyholder's property claim with the policyholder's insurer.’
- This bill has passed the Senate, now joining its companion bill in the House (HB 2399). The bill most recently received a public hearing.
- If you are interested in what a public hearing is or would like to participate, please email Vince Scarfo at vscarfo@restorationindustry.org
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These updates are part of RIA’s mission to educate, advocate, and elevate the restoration industry—empowering contractors to navigate legislative challenges and shape a stronger future for all.
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