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Arkansas General Assembly· HB 1308Recommended for study in the Interim by the Committee on INSURANCE & COMMERCE- HOUSE

An act CONCERNING UNFAIR PRACTICES RELATED TO 10 RESIDENTIAL REAL ESTATE REPAIR CONTRACTS, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas           As Engrossed: H3/13/25 H3/17/25
2 95th General Assembly
                                       A Bill

3 Regular Session, 2025                                           HOUSE BILL 1308

4

5 By: Representative Steimel

6 By: Senator B. Johnson

7

8                             For An Act To Be Entitled

9   AN ACT CONCERNING UNFAIR PRACTICES RELATED TO

10  RESIDENTIAL REAL ESTATE REPAIR CONTRACTS; TO REGULATE

11  SOLICITING RESIDENTIAL CONTRACTORS AND TREE

12  CONTRACTORS; AND FOR OTHER PURPOSES.

13

14

15                                      Subtitle

16                        CONCERNING UNFAIR PRACTICES RELATED TO

17                        RESIDENTIAL REAL ESTATE REPAIR

18                        CONTRACTS; AND TO REGULATE SOLICITING

19                        RESIDENTIAL CONTRACTORS AND TREE

20                        CONTRACTORS.

21

22 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

23

24  SECTION 1. Arkansas Code � 4-88-901(4), concerning the definition of

25 "residential real estate" used for unfair practices related to residential

26 real estate repair contracts, is amended to read as follows:

27  (4) "Residential real estate" means a new or existing dwelling

28 constructed for habitation by one (1) to four (4) families, including a

29 detached garage and the curtilage around the dwelling;

30

31  SECTION 2. Arkansas Code � 4-88-902, concerning definitions used for

32 unfair practices related to residential real estate repair contracts, is

33 amended to add additional subdivisions to read as follows:

34  (7)(A) "Soliciting" means the marketing of a product or service

35 initiated by contacting an insured at his or her residence without a prior

36 invitation to encourage the insured to purchase or obtain the product or

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1 service.

2                   (B) "Soliciting" does not include marketing communications

3 directed at the general public; and

4               (8) "Tree contractor" means a person or an entity in the

5 business of:

6                   (A) Felling trees;

7                   (B) Removing fallen trees;

8                   (C) Cutting or trimming tree limbs or branches; or

9                   (D) Diagnosing or treating diseased trees.

10

11  SECTION 3. Arkansas Code � 4-88-905 is amended to read as follows:

12  4-88-905. Violations.

13  (a) A violation of this subchapter by a residential contractor or tree

14 contractor is an unfair and deceptive act or practice as defined by this

15 chapter an unfair or deceptive trade practice under this chapter.

16  (b) This subchapter does not prohibit an insured that is harmed by a

17 deceptive trade practice from commencing a civil action against a residential

18 contractor or tree contractor.

19  (c)(1) A residential contractor or tree contractor shall receive a

20 warning for his or her first violation of this subchapter.

21              (2) In addition to the penalties under this chapter, a

22 residential contractor or tree contractor may receive a fine up to five

23 thousand dollars ($5,000) for each subsequent violation of this subchapter.

24              (3) Violations under this subchapter shall be reported to the

25 Contractors Licensing Board that may adjudicate violations of this

26 subchapter.

27              (4)(A) The board shall collect any fines assessed under this

28 subchapter.

29                  (B) The board shall disburse the fines collected under

30 subdivision (c)(4)(A) of this section as follows:

31                  (i) Fifty percent (50%) to be used to enforce this

32 subchapter; and

33                  (ii) Fifty percent (50%) to be remitted monthly to

34 the Arkansas Roofing Association's education fund.

35

36  SECTION 4. Arkansas Code Title 4, Chapter 88, Subchapter 9, is amended

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1 to add an additional section to read as follows:

2   4-88-906. Prohibited practices.

3   (a)(1) A residential real estate repair contract between a residential

4 contractor and an insured for the repair or replacement of a roof system

5 shall include:

6                    (A) The roofing components to be used or excluded in the

7 roof system repair or replacement including without limitation the type of

8 shingle, starter, underlayment, ridge cap, and ice and water shield;

9                    (B) The residential contractor's license or registration

10 number;

11                   (C) A statement that rotted roof decking may not be

12 covered by the insured's property and casualty insurance company;

13                   (D) The estimate price for the roof system repair or

14 replacement; and

15                   (E) Reference to this section.

16          (2) A residential real estate repair contract between a tree

17 contractor and an insured for the felling or removal of trees shall include:

18                   (A) The scope of work to include the type of equipment or

19 machinery to be used to fell or remove the trees, man hours or labor

20 estimated, and number of trees included;

21                   (B) The estimated price for the scope of work; and

22                   (C) A reference to this section.

23          (3) A residential real estate repair contract shall be

24 structured as a fixed-price agreement, subject to supplement, or other forms

25 of compensation that are not contingent on external factors such as insurance

26 payouts or financial assistance from a third party.

27  (b)(1) A residential contractor or tree contractor shall not:

28                   (A) Engage in the practice of soliciting a residential

29 real estate repair contract from an insured unless:

30                   (i)(a) He or she has on his or her person data

31 showing that a significant wind event or a significant hail event has

32 occurred at the insured's dwelling in the past twelve (12) months that likely

33 caused damage anticipated to be covered by the insured's property insurance.

34                   (b) As used in subdivision (b)(1)(A)(i)(a) of

35 this section:

36                                   (1) "Significant wind event" means a

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1 period in which wind speeds reach forty miles per hour (40 mph) or greater;

2 and

3                                    (2) "Significant hail event" means a

4 period in which falling hail stones reach one inch (1") in diameter or

5 greater; and

6                        (ii) He or she is wearing identification visible to

7 the insured that includes his or her photo, his or her first and last name,

8 the name of the company that he or she is working for, and the company's

9 license number or registration number; or

10                    (B)(i) Offer to or encourage an insured to represent to

11 the insured's property and casualty insurance company that the insured has

12 paid the contractor an amount equal to the insured's deductible, unless the

13 deductible has been fully paid by the insured in cash, check, or other

14 monetary equivalent.

15                       (ii) An insurance deductible shall not be covered by

16 any rebate, credit, coupon, or similar financial incentive.

17                       (iii) Any money offered or paid in exchange for the

18 insured referring the contractor's services shall not be used to cover,

19 waive, or offset the insured's deductible.

20                       (iv) This subdivision (b)(1)(B) shall be strictly

21 enforced, and any attempt to waive an insurance deductible shall be a

22 violation of this subchapter.

23     (2) Payment by the insured or property and casualty insurance

24 company to a residential contractor or tree contractor for services rendered

25 does not constitute compensation for a referral under subdivision

26 (b)(1)(B)(i) of this section.

27     (c) A residential contractor in the business of repairing or replacing

28 roof systems may:

29     (1) Advise an insured of dates that a wind or hail event has

30 occurred at his or her dwelling;

31     (2) Educate an insured of his or her property insurance policy's

32 coverage related to wind and hail; and

33     (3) Advocate on behalf of an insured when the insured's property

34 insurance carrier:

35                    (A) Sends an unlicensed adjuster to inspect the insured's

36 property damage;

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1   (B) Denies the existence of covered property damage that

2 the residential contractor has documented; or

3   (C) Fails to include items necessary to properly repair,

4 replace, or warranty the roof system in its scope of loss.

5   (d)(1) For the purposes of this section, an act of an employee on

6 behalf of a residential contractor or tree contractor that violates

7 subsection (a) or subsection (b) of this section, is considered an action of

8 the residential contractor or tree contractor.

9   (2) Residential contractors and tree contractors shall have the

10 duty to educate any nonemployees of the contents of subsection (a) and

11 subsection (b) of this section.

12

13  SECTION 5. Arkansas Code � 17-25-502, concerning the definitions

14 regarding residential contractors, is amended to add an additional

15 subdivision to read as follows:

16  (4) "Tree contractor" means a person or an entity in the

17 business of performing the following:

18  (A) Felling trees;

19  (B) Removing fallen trees;

20  (C) Cutting or trimming tree limbs or branches; or

21  (D) Diagnosing or treating diseased trees.

22

23  SECTION 6. Arkansas Code � 17-25-504, concerning authority of the

24 Residential Contractors Committee, is amended to add an additional

25 subdivision to read as follows:

26  (8) Levy a civil penalty against an unlicensed individual or

27 entity found to be performing work that requires a license under � 17-25-505.

28

29                                   /s/Steimel

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