RIA AGA Legislative Update - February 2025
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, contractor laws & regulations, contracts, 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.
Assignment of Benefits & Contracts Legislation
Arkansas
HB1308 introduces new regulations for residential contractors and tree trimmers , aimed at preventing unfair practices in residential real estate repair contracts. It prohibits contractors from engaging in several practices, including soliciting contracts from insureds, offering rebates or gifts in exchange for inspections or insurance claims, accepting compensation for referrals, interpreting insurance policies, or providing repair contracts without a good faith cost estimate. The bill imposes fines of up to $10,000 for violations and allows insureds to cancel contracts if required notices are not included. Contractors are still permitted to suggest that insureds contact their insurance company about potential coverage and can discuss bids with insureds or insurance companies for their usual and customary fees.
Connecticut
HB06967 Establishes a process for the assignment of post-loss benefits under homeowners and commercial property insurance policies; modifies the required terms of home improvement contracts; precludes home improvement contractors from engaging in certain conduct to induce owners to enter into home improvement contracts; requires home improvement contractors to notify the commissioner regarding changes in their business names, trade names and addresses; requires home improvement contractors to maintain additional types of insurance coverage; expands the required content of the application for a certificate of registration as a home improvement contractor; and includes a 3-day right to cancel a contract.
Kansas
SB55 prohibits the assignment of benefits and defines assignment of benefits as an unfair method of competition and unfair or deceptive act or practice.
Oklahoma
HB1084 prohibits soliciting or accepting assignments of post-loss insurance benefits for auto collision, residential, and commercial property insurance policies, declaring such agreements null and void. However, the bill provides exceptions for assignments to federally insured financial institutions, mortgagees, property purchasers, and liability coverage.
Georgia
SB201 prohibits insurance companies from selling homeowner's insurance policies that allow assignment of insurance proceeds to contractors within one year of a natural disaster and creates strict requirements for contractors working on disaster-damaged homes. Specifically, contractors must substantially commence work within one year, complete services in a professional manner, and provide homeowners with a clear, boldface notice explaining their right to cancel the contract if their insurance claim is denied. The bill defines a "natural disaster" as a flood, tornado, hurricane, earthquake, or other event where the Governor declares a state of emergency. Contractors are still allowed to collect payment for emergency services acknowledged in writing by the homeowner, but cannot enforce payment for other services if the homeowner cancels the contract under these provisions.
New Jersey
A551 modifies existing consumer protection laws to provide enhanced cancellation rights for home improvement contracts and certain consumer goods contracts, specifically for older adults (60 years or older) and consumers with intellectual disabilities. Under the new provisions, these consumers can cancel home improvement contracts up to five business days after receiving a signed contract (compared to the previous three-day window), and can cancel consumer goods contracts priced at $500 or more within three business days. The bill requires that all moneys paid must be fully refunded within 30 days of cancellation, any associated credit or loan agreements must be cancelled without penalty, and any delivered goods must be returned within 30 days. The RIA is working to advocate for an emergency restoration services exemption for this bill.
Contractor Licensing Legislation
Connecticut
HB06965 introduces a new licensing requirement for fire and catastrophic restoration businesses, mandating that any person or company engaged in property restoration after fire, smoke, water damage, or natural disasters must obtain a license from the State Fire Marshal. The license will cost $150 initially and $100 to renew annually, and businesses operating without a license can be fined up to $1,000 per violation. The State Fire Marshal will also be responsible for maintaining a public registry of licensed restoration businesses, including information about their standing and any complaints.
HB06657 establishes a new licensing and registration system for fire and catastrophic restoration businesses, administered by the Office of the State Fire Marshall. The legislation will require these businesses to obtain a license and be included in a comprehensive registry that provides transparency about their compliance and professional history. The registry will publicly disclose critical information such as whether a business is in good standing, if they have violated any applicable laws, and whether any complaints have been filed against them.
New Jersey
A1457 requires the licensure of general contractors in the state and defines a "general contractor" as an individual or business that can be classified under certain construction trade categories. The bill outlines the eligibility requirements for licensure, including education, field experience, and passing an examination. It also provides some exemptions for experienced general contractors and those licensed in related professions. The RIA is working to advocate for a definition of and exemption for emergency restoration services to be included in this bill along with the Senate companion bill S4088.
New York
A01783 creates an oversight system for home improvement contractors. The bill requires all home improvement contractors to register biennially with the Secretary of State, paying a $300 fee and providing detailed information such as business address, contact details, proof of insurance, and personal background. A new State Home Improvement Contractor Board will be created to oversee the registration process and will develop education and outreach programs, set insurance requirements, and advise on contractor regulation. Contractors will need to complete ten hours of continuing education to renew their registration, and the bill increases penalties for fraudulent practices, raising the penalty for false representations from $500 to $1,000. Additionally, the bill establishes a central state registry to track contractor information and requires municipalities to help maintain this registry.
Mold Legislation
Colorado
HB1202 introduces a registration system for mold remediation and assessment professionals, requiring them to obtain third-party certifications and demonstrate financial responsibility. The bill defines various terms related to mold, including specific types of mold and what constitutes mold assessment and remediation. Mold remediation must follow specific industry standards, and the law provides mechanisms for enforcement through private action or potential intervention by the Attorney General.
Connecticut
HB05624 aims to establish new regulations for mold remediation in rental housing and create a licensing system for mold remediation contractors. The legislation will introduce two key components: first, specific requirements for addressing mold in rental housing units, and second, a formal licensure process for professionals who perform mold remediation services.
Virginia
HB2195 passed on February 19th and prohibits the selling or offering for sale of services as a professional mold remediator to be performed upon any residential dwelling without holding a mold remediation certification from a nationally or internationally recognized certifying body for mold remediation. The bill also requires such professionals to comply with pertinent standards in conducting remediation.
West Virginia
HB 2353 requires mold remediation service providers to register with the state, demonstrate financial responsibility, and ensure that at least one direct supervisor holds a third-party certification from a recognized professional organization. Additionally, all mold remediation activities must follow the ANSI/IICRC S520 Standard for Professional Mold Remediation or an equivalent approved standard, ensuring a consistent and professional approach to addressing mold-related health risks in indoor spaces.