Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1308 3
4
By: Representative Steimel 5
By: Senator B. Johnson 6
7
For An Act To Be Entitled 8
AN ACT CONCERNING UNFAIR PRACTICES RELATED TO 9
RESIDENTIAL REAL ESTATE REPAIR CONTRACTS; TO REGULATE 10
SOLICITING RESIDENTIAL CONTRACTORS AND TREE TRIMMERS; 11
AND FOR OTHER PURPOSES. 12
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14
Subtitle 15
CONCERNING UNFAIR PRACTICES RELATED TO 16
RESIDENTIAL REAL ESTATE REPAIR 17
CONTRACTS; AND TO REGULATE SOLICITING 18
RESIDENTIAL CONTRACTORS AND TREE 19
TRIMMERS. 20
21
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 22
23
SECTION 1. Arkansas Code § 4 -88-902, concerning definitions used for 24
unfair practices related to residential real estate repair contracts, is 25
amended to add additional subdivisions to read as follows: 26
(7)(A) "Soliciting" means contacting an insured: 27
(i) In person; or 28
(ii) By electronic means, including without 29
limitation email through an unpublished telephone number and any other real 30
time communication. 31
(B) "Soliciting" does not include contacting an insured 32
through a published telephone number; and 33
(8) "Tree trimmer" means a person or an entity in the business 34
of: 35
(A) Felling trees; 36 HB1308
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(B) Cutting or trimming tree limbs or branches; or 1
(C) Diagnosing or treating diseased trees. 2
3
SECTION 2. Arkansas Code § 4-88-905, concerning violations for unfair 4
practices related to residential real estate repair contracts, is amended to 5
add additional subsections to read as follows: 6
(c) A residential contractor or tree trimmer may receive a fine up ten 7
thousand dollars ($10,000) for a first and each subsequent violation of this 8
subchapter. 9
(d) An unlicensed residential contractor who engages in an act 10
prohibited by this subchapter is guilty upon conviction of unlicensed 11
contracting and is subject to the penalties under § 17 -25-103. 12
13
SECTION 3. Arkansas Code Title 4, Chapter 88, Subchapter 9, is amended 14
to add an additional section to read as follows: 15
4-88-906. Prohibited practices. 16
(a) A residential contractor or tree trimmer shall not: 17
(1) Engage in the practice of soliciting a residential real 18
estate contract from an insured; 19
(2) Offer to an insured a rebate, gift, gift card, cash, coupon, 20
waiver of an insurance deductible, or any other thing of value in exchange 21
for: 22
(A) Allowing the residential contractor or tree trimmer to 23
conduct an inspection of the residential real estate's roof system; or 24
(B) Making an insurance claim for damage to the 25
residential real estate's roof system; 26
(3)(A) Offer, deliver, receive, or accept any compensation, 27
inducement, or reward for the referral of a service for which property 28
insurance proceeds are payable or would be used for repairs to or replacement 29
of the insured's roof system. 30
(B) Payment by the insured or property and casualty 31
insurance company to a residential contractor or tree trimmer for services to 32
a roof system rendered does not constitute compensation for a referral under 33
subdivision (a)(3)(A) of this section; 34
(4) Interpret property and casualty insurance policy provisions 35
or advise an insured regarding coverages or duties under the insured’s 36 HB1308
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property and casualty insurance policy or adjust a property and casualty 1
insurance claim on behalf of the insured; or 2
(5)(A) Provide an insured with a residential real estate repair 3
contract authorizing repairs to the roof system of the residential real 4
estate without providing a good faith estimate of the itemized and detailed 5
cost of services and materials for the repairs undertaken under a property 6
and casualty insurance claim. 7
(B) A residential contractor or tree trimmer does not 8
violate subdivision (a)(5)(A) of this section if, as a result of the process 9
of the insurer adjusting a property and casualty insurance claim, the actual 10
cost of repairs differs from the initial estimate. 11
(b) For the purposes of this section, an act of any person on behalf 12
of a residential contractor or tree trimmer, including without limitation the 13
acts of a compensated employee or a nonemployee who is compensated for 14
engaging in the prohibited acts in subsection (a) of this section, is 15
considered an action of the residential contractor or tree trimmer. 16
(c)(1) A residential contractor or tree trimmer shall not execute a 17
contract with an insured to repair or replace a roof system without including 18
a notice that the residential contractor or tree trimmer shall not engage in 19
the practices stated under subsection (a) of this section. 20
(2) If the residential contractor or tree trimmer fails to 21
include the notice required under subdivision (c)(1) of this section, the 22
insured may cancel the contract within ten (10) days after executing it. 23
(d)(1) The prohibitions under subsection (a) of this section does not 24
preclude a residential contractor or tree trimmer from suggesting or 25
otherwise recommending to an insured that the insured consider contacting his 26
or her property and casualty insurance company to determine if the proposed 27
repair is covered under the insured’s property and casualty insurance policy. 28
(2) The residential contractor or tree trimmer may discuss or 29
explain a bid for construction or repair of covered residential real estate 30
with the insured who has suffered loss or damage covered by a property and 31
casualty insurance policy, or the property and casualty insurance company of 32
the residential real estate, if the residential contractor or tree trimmer is 33
doing so for the usual and customary fees applicable to the work to be 34
performed as stated in the residential real estate repair contract. 35
36