LRB-1301/1
MDK:jld:rs
2013 - 2014 LEGISLATURE
March 13, 2013 - Introduced by Senators Olsen, L. Taylor, Schultz, Erpenbach,
Harsdorf, Lassa and Vinehout, cosponsored by Representatives Krug,
Stone, Thiesfeldt, Kahl, Petersen, Hebl, Jagler, A. Ott, Czaja, Ohnstad,
Ripp, LeMahieu, Spiros, Danou, Steineke, Vruwink, Brooks, Jorgensen,
Nygren, Swearingen and Endsley. Referred to Energy, Consumer Protection,
and Government Reform.
SB79,1,2 1An Act to create 100.65 of the statutes; relating to: contracting with residential
2contractors.
Analysis by the Legislative Reference Bureau
This bill prohibits a contractor from promising to pay or rebate all or any portion
of a property insurance deductible as an incentive for entering into certain contracts
with a "consumer," which the bill defines as an owner or possessor of residential
property containing four dwelling units or less. The contracts that are subject to the
bill are written or oral contracts for doing any of the following activities: 1) repairing
or replacing a roof system; or 2) performing any other exterior repair, replacement,
construction, or reconstruction of the residential property.
The bill also allows such a consumer to cancel a written contract with a
contractor for the above activities if all or part of the activities is to be paid under a
property insurance policy and the insured receives written notice from the insurer
that all or any part of the claim or contract is not a covered loss under the policy. The
bill permits a consumer to make such a cancellation prior to the end of the fifth
business day after the insured receives the written notice from the insurer. Also, the
consumer must give the contractor a written notice of cancellation by personal
delivery or first class mail. The bill provides that the written notice of cancellation
is sufficient if the consumer uses a form specified in the bill or provides other written
notice indicating the consumer's intent not to be bound by the contract. Within ten
days after a contractor receives the written notice of cancellation, the bill requires
the contractor to return to the consumer any payment, deposit, and note or other
evidence of indebtedness related to the contract. However, if the contractor has

performed any emergency services that the consumer has acknowledged in writing
to be necessary to prevent damage to the residential property, the bill provides that
the contractor is entitled to the reasonable value of those services.
The bill also does the following:
1. Requires a contractor to furnish a written statement to a consumer prior to
entering into a contract for the above activities that describes the bill's provisions
allowing a consumer to cancel the contract.
2. Prohibits a contractor from representing or negotiating on behalf of a
consumer, as defined in the bill, with respect to any insurance claim related to the
above activities.
3. Specifies that a violation of the bill is an unfair trade practice that is subject
to the enforcement authority of the Department of Agriculture, Trade and Consumer
Protection (DATCP) under current law.
4. Subjects a person who violates the bill to a fine of not more than $200,
imprisonment in the county jail for not more than six months, or both, which are
penalties that apply to certain other violations of current law enforced by DATCP.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB79,1 1Section 1. 100.65 of the statutes is created to read:
SB79,2,2 2100.65 Residential contractors. (1) In this section:
SB79,2,33 (a) "Consumer" means an owner or possessor of residential real estate.
SB79,2,54 (b) "Dwelling unit" means a structure or that part of a structure that is used
5or intended to be used for human habitation.
SB79,2,86 (c) "Promise to pay or rebate" includes granting any allowance or offering any
7discount against fees to be charged or paying a consumer any form of compensation,
8gift, prize, bonus, coupon, credit, referral fee, or any other item of monetary value.
SB79,2,129 (d) "Residential contractor" means a person who enters into a written or oral
10contract with a consumer to repair or replace a roof system or to perform any other
11exterior repair, replacement, construction, or reconstruction of residential real
12estate.
SB79,3,2
1(e) "Residential real estate" means residential property containing 4 dwelling
2units or less.
SB79,3,43 (f) "Roof system" includes roof coverings, roof sheathing, roof weatherproofing,
4and insulation.
SB79,3,9 5(2) No residential contractor may, including in any advertisement, promise to
6pay or rebate all or any portion of a property insurance deductible as an incentive to
7a consumer entering into a written or oral contract with the residential contractor
8to repair or replace a roof system or to perform any other exterior repair,
9replacement, construction, or reconstruction of residential real estate.
SB79,3,13 10(3) Before entering into a written contract with a consumer to repair or replace
11a roof system or to perform any other exterior repair, replacement, construction, or
12reconstruction of residential real estate, a residential contractor shall do all of the
13following:
SB79,3,1514 (a) Furnish the consumer with a statement in boldface type of a minimum size
15of 10 point in substantially the following form:
SB79,3,1916 You may cancel this contract at any time before midnight on the fifth business
17day after you have received written notice from your insurer that all or any part of
18the claim or contract is not a covered loss under the property insurance policy. See
19the attached notice of cancellation form for an explanation of this right.
SB79,3,2220 (b) Furnish the consumer a completed form in duplicate that is attached to the
21contract, is easily detachable, and contains, in boldface type of a minimum size of 10
22point, the following statement:
SB79,3,2323 NOTICE OF CANCELLATION
SB79,4,724 If you are notified by your insurer that all or any part of the claim or contract
25is not a covered loss under the property insurance policy, you may cancel the contract

1by personal delivery or by mailing by 1st class mail a signed and dated copy of this
2cancellation notice or other written notice to (name of contractor) at (contractor's
3business address) at any time before midnight on the fifth business day after you
4have received the notice from your insurer. If you cancel the contract, any payments
5made by you under the contract, except for certain emergency work already
6performed by the contractor, will be returned to you within 10 business days
7following receipt by the contractor of your cancellation notice.
SB79,4,88 I CANCEL THIS CONTRACT
SB79,4,99 Date ....
SB79,4,1010 Customer's signature ....
SB79,4,24 11(4) A consumer who enters into a written contract with a residential contractor
12to repair or replace a roof system or to perform any other exterior repair,
13replacement, construction, or reconstruction of residential real estate all or part of
14which is to be paid under a property insurance policy may cancel that contract prior
15to the end of the 5th business day after the insured receives written notice from the
16insurer that all or any part of the claim or contract is not a covered loss under the
17property insurance policy. The consumer shall give the residential contractor
18written notice of cancellation by personal delivery of the notice or by 1st class mail
19to the residential contractor's address stated in the contract. If the notice is given
20by mail, the notice shall be postmarked before midnight of the 5th business day after
21the insured receives written notice from the insurer of the denial of the claim. The
22notice shall be sufficient if the consumer uses of the notice of cancellation form in sub.
23(3) (b) or provides other written notice that indicates the consumer's intent not to be
24bound by the contract.
SB79,5,7
1(5) Within 10 days after a residential contractor receives a cancellation notice
2under sub. (4), the residential contractor shall return to the consumer any payments
3made, any deposits made, and any note or other evidence of indebtedness related to
4the contract. However, if the residential contractor has performed any emergency
5services, acknowledged by the consumer in writing to be necessary to prevent
6damage to the residential real estate, the residential contractor shall be entitled to
7the reasonable value of those services.
SB79,5,12 8(6) Any provision in a written contract with a residential contractor to repair
9or replace a roof system or to perform any other exterior repair, replacement,
10construction, or reconstruction of residential real estate that requires the payment
11of any fee for anything except emergency services under sub. (5) is not enforceable
12against the consumer who has cancelled the contract under sub. (4).
SB79,5,17 13(7) No residential contractor may represent or offer or advertise to represent
14a consumer or negotiate or offer or advertise to negotiate on behalf of a consumer with
15respect to any insurance claim related to the repair or replacement of a roof system
16or to the exterior repair, replacement, construction, or reconstruction of residential
17real estate.
SB79,5,19 18(8) It is an unfair trade practice under s. 100.20 for a residential contractor to
19violate any provision of this section.
SB79,2 20Section 2. Initial applicability.
SB79,5,2221 (1) This act first applies to contracts that are entered into on the effective date
22of this subsection.
SB79,3 23Section 3. Effective date.
SB79,6,2
1(1) This act takes effect on the first day of the 3rd month beginning after
2publication.
SB79,6,33 (End)
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