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.
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29 /s/Steimel
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5 03-17-2025 11:54:34 ANS158Every fact on this page links to its source, starting with the official bill record.