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Bill Summary · HB 769

Overview

HB 769 (136th Ohio General Assembly) would regulate roofing contractors and the terms of roofing contracts. It establishes minimum standards for roofing agreements, requires certain protections for consumers, sets insurance requirements for contractors, and broadens enforcement and remedies under Ohio law. The act applies to roofing services contracts above $750 and takes effect 90 days after the bill’s effective date.

Main purpose and intent

  • Create minimum standards for roofing contracts to promote fair, transparent, and honest practices in the roofing industry.
  • Protect consumers from deceptive or abusive practices and provide clear cancellation rights.
  • Ensure roofing contractors maintain specific insurance coverage and keep records of subcontractors.
  • Provide enforcement mechanisms through the Ohio Attorney General and preserve consumer remedies under existing law.

Key provisions and changes

  • Definitions (Sec. 4722.20):

    • “Consumer,” “Contractor,” “Roofing services,” and related terms defined.
    • Exclusions listed (e.g., property owners performing work themselves, government workers, certain suppliers of materials not attached to real property, subcontractors, and licensed or certain licensed professionals).

  • Written contract requirement (Sec. 4722.21):

    • Contracts for roofing services exceeding $750 must be in writing and include:
    • Complete agreement and incorporated documents.
    • Contractor’s full name, business names, address, phone, and email.
    • Insurance description or access to a public description of coverage.
    • Itemized work description, labor and materials costs.
    • Total contract price, including change orders.
    • Payment method options (cash, check, credit card).
    • If charging a credit card fee, fee up to 3.5% of the contract price.
    • Signatures of all parties.
    • A prominent cancellation notice and a detachable “NOTICE OF CANCELLATION” form with a three-business-day cancellation window (and insurer-denial caveat for insurance claims).

  • Delivery of contract copy (Sec. 4722.21(B)):

    • Contractor must provide a signed copy to the consumer at signing; no work may begin until then.
    • Electronic delivery allowed under the Uniform Electronic Transactions Act.

  • Cancellation provisions (Sec. 4722.22):

    • Consumer may cancel within three business days of signing; if funded by an insurance claim, can cancel within three business days after insurer denial notice.
    • Cancellation occurs by written notice; mail timing governs effectiveness.
    • Upon cancellation, contractor must refund payments within 15 business days, minus reasonable charges for services/materials already provided and acknowledged in writing.

  • Insurance and contractor obligations (Sec. 4722.23):

    • Contractors must carry workers’ compensation insurance and contractor liability insurance (including completed operations) with at least $500,000 coverage.
    • Maintain a list of subcontractors who performed work in the last three years, with names and addresses.

  • Prohibited practices (Sec. 4722.23):

    • Prohibits inducements tied to insurance deductibles, unapproved cost increases, misrepresentations, improper credits or discounts not specified in the contract, misleading claims about codes, and other deceptive practices.
    • Caps deposits at no more than 50% of the contract price.
    • See also prohibitions on certain misrepresentations, abandonment of work, failure to credit payments, and other unfair acts.

  • Deceptive acts and enforcement (Sec. 4722.24–4722.25):

    • Violations constitute a deceptive act under the Consumer Sales Practices Act (CSPA).
    • Remedies include injunctive relief, civil penalties, and potential class actions; penalties may be allocated between county treasurer and a consumer protection fund.
    • Actions have a two-year statute of limitations from the violation.

Who would be affected

  • Roofing contractors engaging in roofing services for residential properties, including their subcontractors.
  • Consumers entering roofing contracts exceeding $750.
  • Public insurers and public insurance adjusters; the bill clarifies their roles and restricts certain activities for contractors relative to insurance claims.
  • Government and regulatory bodies enforcing consumer protection and contract standards in Ohio.

Procedural and timeline aspects

  • Effective date: 90 days after the act’s final passage.
  • Repeals existing sections 4722.01, 4722.03, 4722.06, 4722.07, and 4722.08 and replaces them with the new regime (4722.20–4722.26).
  • Enforcement avenues include the Ohio Attorney General and the existing civil remedies framework under the CSPA.
  • The act emphasizes compliance, consumer redress, and potential consent judgments through enforcement actions.

Compiled from official sources — confirm details with the bill’s official record.

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