Bill Summary for Bill Number SB12-038

Date: 04/23/2012

Final
BILL SUMMARY for SB12-038

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Votes: View-->	Action Taken:
Moved prepared amendment L.020 (Attachment F). The Moved to refer Senate Bill 12-038, as amended, to	Pass Without Objection PASS

02:44 PM -- Senate Bill 12-038

Representative Priola, prime sponsor, presented Senate Bill 12-038, concerning measures to protect consumers who engage a roofing contractor to perform roofing services on residential property. Representative Priola explained that the bill requires residential roofing contractors to sign a written contract with customers detailing the contractor's contact information, and the terms and conditions of the work agreement, for any roofing service in excess of $1,000. The contract must also include a written statement that the roofing contractor cannot pay, waive, or rebate any part of the customer's insurance deductible, according to the bill.

02:45 PM

Chip Ezzo, representing Chip's Roofing, testified against the bill and explained that the bill would not allow roofing contractors the right to collect payment for a roofing contract. Mr. Ezzo responded to questions from the committee concerning the roofing contracts and the roofing industry.

02:51 PM

Dylan Lucas, representing Eco Roof and Solar, testified against the bill and explained that the bill was unnecessary since roofing companies are already regulated in state law. Mr. Lucas addressed questions from the committee concerning the relationship between homeowners' insurance companies and the roofing industry.

02:58 PM

Bill McLoughlin, representing Colorado consumers, testified against the bill and talked about previous legislation enacted under House Bills 07-1104 and 08-1407, which protected the rights of consumers. He talked about the relationship between homeowners' insurance companies and the roofing industry and explained that the bill would authorize insurance companies to select roofing contractors on behalf of homeowners. Mr. McLoughlin responded to questions from the committee concerning the negative impact of the bill on roofing contractors and distributed his comments to the committee (Attachment C). Committee discussion ensued concerning specific provision in the bill and policies in other states that have resulted in conflicts between homeowners' insurance companies and roofing companies.

03:22 PM

Garrett Kurtt, representing Ecoblast, testified against the bill and talked about problems between roofing contractors and homeowners' insurance companies. Mr. Kurtt responded to questions from the committee concerning the relationship between roofing contractors and homeowners' insurance adjusters and talked about the current challenges that the roofing industry faces.

03:39 PM

Mark McGroarty, representing himself and other professional roofers, testified against the bill and talked about problems between insurance adjusters and roofing contractors. He discussed other problems that could result from the bill and responded to questions from the committee concerning the relationship between roofing contractors and subcontractors.

03:47 PM

Erin Kristofco, representing homeowners, testified against the bill and talked about language in the bill that could empower an insurance adjuster to waive a deductible and prevent a homeowner from protesting the recommendation of the adjuster. Ms. Kristofco explained that the bill is not supported by any consumer advocacy groups and responded to questions from the committee concerning the abuse of property insurance adjusters. Committee discussion ensued concerning potential problems between adjusters, contractors, and homeowners that could result from the bill.

04:03 PM

Scott deLuise, a public adjuster representing insurance policy holders, testified against the bill and explained that the bill does not protect consumers. Mr. deLuise talked about large storms in the state where roofing contractors were prosecuted by the State Attorney General's Office for falsely adjusting insurance claims. Mr. deLuise responded to questions from the committee and explained that the bill would allow insurance companies to control repairs on a home and control insurance claim payments to contractors. Committee discussion ensued concerning the relationship between homeowners' insurance, insurance adjusters, and roofing contractors.

04:18 PM

Monty McCurry, Policy Director of the Colorado Tea Party Patriots, testified against the bill and submitted his comments to the committee (Attachment D). McCurry explained that the bill will create more government influence in the free market and create more problems between homeowners' insurance companies and contractors. Committee discussion ensued concerning the comments submitted by Mr. McCurry.

04:28 PM

Derek O'Driscoll, representing himself, testified against the bill and discussed problems with specific language in the bill for roofing contractors. Mr. O'Driscoll responded to questions from the committee.

04:33 PM

Jesse Witt, representing the Community Association Institute, testified in support of the bill and responded to questions from the committee concerning the need for the bill to benefit homeowners' associations.

04:39 PM

Christina Sandavol, a fire claims manager from State Farm Insurance, testified in support of the bill and talked about the need to improve the process between insurance adjusters, homeowners, and roofing contractors. Ms. Sandavol responded to questions from the committee concerning the need for the bill to improve the insurance refund period and deductible process with insurance claims. She discussed specific cases where the bill would improve the relationship between insurance adjusters and homeowners. Committee discussion ensued concerning the bill's impact on home insurance claims involving a roofing contractor and whether it would improve the process for a homeowner with a roof insurance claims.

05:02 PM

Chris Tulp, representing the Colorado Roofing Restoration Council (CRRC), testified in support of the bill and explained that the CRRC has opposed similar legislation in the past, but discussed the need for the bill. Mr. Tulp responded to questions from the committee concerning the definition of "workmanlike performance" referenced in the bill. Committee discussion ensued concerning language in the bill that would prevent a roofing contractor from waiving a deductible.

05:10 PM

Mr. Ezzo addressed the committee to explain the relationship between insurance adjusters and roofing contractors.

05:10 PM

Members of the committee received copies of an electronic petition opposing the bill (Attachment E).

05:12 PM

Committee members made closing comments on the bill.


BILL:	SB12-038
TIME:	05:15:28 PM
MOVED:	Soper
MOTION:	Moved prepared amendment L.020 (Attachment F). The motion passed without objection.
SECONDED:	Lee
		VOTE
	Balmer	Excused
	Conti
	Gardner B.
	Labuda
	Lee
	Pabon
	Pace
	Soper
	Swerdfeger
	Szabo
	Bradford

YES: 0 NO: 0 EXC: 1 ABS: 1 FINAL ACTION: Pass Without Objection


BILL:	SB12-038
TIME:	05:17:55 PM
MOVED:	Labuda
MOTION:	Moved to refer Senate Bill 12-038, as amended, to the Committee of the Whole. The motion passed on a vote of 7-3, with one excused.
SECONDED:	Lee
		VOTE
	Balmer	Excused
	Conti	Yes
	Gardner B.	Yes
	Labuda	Yes
	Lee	Yes
	Pabon	No
	Pace	Yes
	Soper	Yes
	Swerdfeger	Yes
	Szabo	No
	Bradford	No

Final YES: 7 NO: 3 EXC: 1 ABS: 0 FINAL ACTION: PASS

05:24 PM

The committee adjourned.