New 104th General Assembly Roofing Act IL SB2503 & Implications

The Illinois Roofing Industry Licensing Act sunset date has been extended to January 1, 2031. The 104th General Assembly also made several other changes to the bill text through Act SB 2503. While the Illinois Senate hasn't changed any fundamental values, there are still some notable additions that you should know about.

We read, reread, and analyzed every section of the Illinois state senate bill. In this explorative guide, we'll look at everything the Illinois General Assembly changed and what it means.

Roofing Industry Act SB2503 Explained

SB 2503 changes the roofing industry licensing sunset date, qualifying party situations, email address requirements, and advisory board powers. The bill also makes other changes to the Professional Geologist Licensing Act, but we'll only focus on the roofing parts.

1. Sunset Date Extension

The old Illinois Roofing Industry Licensing Act was scheduled to expire (sunset) on January 1, 2026. The recent act SB2503 extends that expiry date to January 1, 2031 (5-year extension). It means that:

• You will require a license till at least 2031
• The regulatory framework will remain in place till 2031
• Businesses can remain operating as they are till 2031
• The roofing industry can grow at the same CAGR rate till 2031

SB 2503 will increase demand for roofers while making the profession more stable.

2. Email Address of Record (Section 2.05)

The Illinois Assembly added the email and address section to adapt to evolving standards. Previously, roofers had difficulty getting notifications and updates about their licensing status. The Illinois Assembly made changes to make the process simpler.

It means you must provide a valid address of record and email address. You must do this when:

• Applying for a new license
• Renewing your license

Additionally, if you change your email address, you must inform the Department within 14 days. You can update your email address through the Illinois Department of Financial and Professional Regulation (IDFPR) website. 

Furthermore, the 14-day deadline is mandatory for every roofer. Failure to do so can cause:

• Missing important notices from the Department
• License suspension if they can't reach you
• Disciplinary action for non-compliance

The IDFPR can place a license on inactive status. Please designate a professional physical address and email address. PO Boxes are no longer applicable.

3. Definition Changes (Section 2)

The previous licensing act had vague language about qualifying parties (QP) and roof repairs. The new act amends the language about qualifying party designations and applications. The new SB 2503 amendment means:

• QP must be actively engaged in "day-to-day activities" 
• You can't operate without a designated qualifying party from day one

The new amendment also changes the definition of roof repairs. 

• Old Definition: "reconstruction or renewal of part of an existing roof for the purpose of its maintenance"
• New Definition: "reconstruction or renewal of any portion of an existing roof for the purpose of correcting damage or restoring the roof to pre-damage condition"

Roof repairs are now clearly divided into minor and major works. According to the new definition, repairs constitute any roofing work that restores the roof to its original condition. Any structural changes, even minor ones, will require licensing.

 Any torch techniques or work will still require a full license. Furthermore, repair materials must be compatible and just as resistant.

4. Application Process Changes (Section 3)

The new bill also changes and clarifies the application process. Here's what has changed:

• Timing Clarification: "At the time of application for licensure under the Act, a company shall must designate one individual who will serve as a qualifying party"
• Fixed Terminology: Changed "roofing services materials" to "roofing materials services" for sellers

In layman's terms, this means:

• You must designate a qualifying party at the time of application
• Even new companies  can't apply without QP
• Existing companies must have the new QP ready when restructuring

If you're starting a new roofing business, identify your qualifying party first. The party (person) must be ready to take the examination to get the license.

The terminology change from "roofing services materials" to "roofing materials services" has no practical impact. This change only corrects typographical errors. Other processes and roofing license requirements are still the same.

5. Qualifying Party Duties & Penalties (Section 4.5)

Section 4.5 makes changes in provisions concerning the powers and duties of qualifying parties. It changes the following language and information:

Ownership language clarified (subsection a)

The first change amends the requirements for becoming a mutual qualifying part for two companies. Here is the change:

• Old Language: "the person has there is a common ownership..."
• New Language: "the person has there is a common ownership or management interest of at least 25% of each licensed entity"

According to this, you can be the qualifying party of two companies IF:

• Scenario 1: You own or manage at least 25% of each company
• Option 2: One company is a subsidiary of the other (25% ownership minimum)

You are not allowed to be the qualifying party IF:

• You own 40% of Company A and 10% Company B
• You try to be the QP for more than 2 companies

References new Section 4.6 (subsection b)

The second change specifies the termination process for qualifying parties. Here's the language regarding the change:

• Old way: No Provision and Vague
• New way: "except for a change in qualifying party as set forth in Section 4.6 and the rules adopted under this Act."

The new termination process specifies that you must designate a new party if the previous one:

• Quits
• Retires
• Diesor
• Fired

We explain the process in detail in Section 4.6 below.

QP Increased Fines (subsection e)

The new amendment also increases the fines and penalties on QP. The old maximum fine per violation was $10,000. SB 2503 increases this penalty by 50% to $15,000 per violation.

Furthermore, each violation can be fined separately. For example, each of the following violations can be fined separately for a total fine of $60,000:

• Qualifying party not actually supervising work
• Qualifying party working for competitor
• Qualifying party lending credentials to an unlicensed company
• Company is working without an active QP

Bottom line: The penalties for violations are significantly higher. This is meant to discourage "paper" qualifying parties who don't actually supervise the work.

6. New Qualifying Party Termination Process (Section 4.6)

According to the new rules, when your previous qualifying party leaves or is fired, you must:

• Search for a new QP immediately
• Notify the department within 30 business days
• Notify the department of the new QP in 60 business days
• Include an email, address, and name of the new party
• Wait for the department to check the qualifications of the new party

After the department approval, the new party must attempt and pass the exam. Fortunately, in these two scenarios, a company can continue operations. You will only be barred if you fail to meet the deadlines.

Here's the timeline overview:

• 30-day notification requirement for qualifying party termination
• 60-day requirement to notify the Department of a new QP
• 7-month timeframe for the new QP to pass the examination

In a scenario where the previous QP passes away, the license becomes inactive at the moment of their death. You cannot do any roofing work in this scenario until the new QP passes the exam.

Note: Failure to meet any deadlines will result in an inactive license and work stoppage. According to the new rules, qualifying parties or licensed roofers get more power. Without the QP's support, a company can shut down for 3 to 7 months. 

7. Contract Requirements (Section 5.5)

 The new bill also reinserts the provisions from previous sections into section 5.5. This section changes the address and email requirements for a contract. Here's what SB 2503 says:

• Old Wording: "must provide a land-based phone number, and a street address other than a post office box"
• New Wording: "when signing a contract for professional roofing services, must include in the contract provide a land-based phone number, and a street address other than a post office box, and an email address"

This means that every contract must now include:

• Land-based phone number (not just cell phone)
• Street address (PO Box is NOT acceptable)
• Email address (New requirement)

This matters because:  

• Customers can't claim they couldn't reach you
• Creates a paper trail for disputes
• The department can verify proper contact information

Here's a template for new contact information in contracts:

CONTRACTOR CONTACT INFORMATION:
Business Name: [Your Company Name]
License Number: [Your License #]
Street Address: [123 Main Street, City, IL ZIP]
Phone: [Landline: (555) 123-4567]
Mobile: [(555) 987-6543]
Email: [[email protected]]

Here's a checklist of what you must include in new roofing contracts:

• Your license number and company name
• Street address (not PO Box)
• Land-based phone number
• EMAIL ADDRESS (new)
• Scope of work clearly defined
• Approximate timeline
• Cost estimate (especially for repairs)
• Insurance information
• 72-hour cancellation clause in plain language
• Deductible waiver prohibition statement
• Bold-faced trust statement
• Your signature and the customer's signature

Furthermore, you must keep the contract safe and available for at least 7 years. You might be liable or subject to fines if you fail to show the contract for inspection.

8. Advisory Board Changes (Section 11.5)

The new bill 2503 also changed the roofing advisory board quorum. The new changes include:

• Board size increased: From 8 total members to 9 total members
• Composition changed:
  • Old: 7 industry members + 1 public member
  • New: 5 industry members + 1 public member + (details revised)
• Representation requirements clarified:
  • One must represent the Home Builders Association
  • One must represent the retailers' association
  • One must represent the employees of licensed roofing contractors
• Term limits clarified:
  • 4-year terms
  • Partial terms over 2 years = full term
  • Maximum 2 full terms
  • For reappointment: second term begins the day after the first term ends
• Removal authority:
  • Secretary may "terminate or refuse appointment"
• Officer election:
  • Annual election of chairman and vice-chairman
  • Can't be elected more than twice in succession to the same office

The new board composition includes an elected member for every sector of the roofing industry. This makes the industry more stable through niche dialogue. Furthermore, now retailers, roofers, and HOAs can have a balanced input in the advisory board.

9. New Board Powers (Section 11.5a)

SB 2503 also expanded the advisory board's powers and restrictions. New changes include:

• Conflict of Interest: Members must not engage in self-interest
• Vacancy Value: Vacancies will not stop a quorum from conducting affairs
• Elections: There will be an annual election of chairperson and vice chairperson
• Elected Rules: One person cannot be elected thrice for the same position
• Succession: If the officer position is vacant, the board elects interim successor 
• Investigation: Board recommends qualifying parties for investigation help

According to these new rules, roofing advisory boards can operate all year. Vacant members will not stop the quorum from making decisions.

Furthermore, a member can not act out of self-interest. This was done to streamline and regulate the roofing industry in Illinois.

Critical Deadlines to Remember After SB 2503

Here are some updated deadlines for contacting the IDFPR in case of an event:

Post SB2503 Checklist for Roofing Contractors

The new SB2503 bill has left some roofers scratching their chins. We know it's confusing, so here's a quick checklist of the things you need to do:

Update Your Contact Information

• Verify your address of record with the Department
• Verify your email address of record
• Set a calendar reminder to update within 14 days if anything changes
• Move correspondence to your email regularly

Review Your Qualifying Party Situation

• Confirm your qualifying party is properly designated
• Ensure they're actively involved in day-to-day operations
• Identify a backup qualifying party in case something happens
• Review the employment agreement with the qualifying party
• Discuss succession planning for the worst-case scenarios
• Check eligibility for two qualifying parties

Update All Contracts

• Add email address to new contract template
• Include all contact info in the contract
• Verify the land-based phone number is listed
• Confirm street address (Not PO box)
• Check that the trust statement is bold-faced
• Ensure the 72-hour rescission clause is clear

Check Commercial Vehicles

• Every truck has a license number displayed
• Every truck has the licensee's name (as on the license)
• Stickers are current and readable

Review Insurance and Bonds

• Liability insurance is current
• Workers' compensation is current
• Bond is current and continuous

The bonding and vehicle requirements haven't changed. However, you should still check your current situation to ensure compliance.

FAQs on Illinois Senate License Act SB2503

What is the Regulatory Sunset Act in Illinois?

The Regulatory Sunset Act in Illinois compels authoritative bodies to set an expiry date for all professional regulations. Relevant governing bodies can extend the sunset date and make amends.

Why was the Illinois Roofing Industry Licensing Act amended?

The Illinois Roofing Industry Licensing Act had a sunset date of January 1, 2026. The act was amended to amend certain clauses to contemporary needs and to extend the sunset date to January 1, 2031.

What is the rule for roofing in Illinois?

The Illinois Roofing Industry Licensing Act regulates roofing in Illinois. Contractors must hold a state roofing license, carry liability and workers’ compensation insurance, and renew licenses every two years. The law prohibits unlicensed roofing work and allows penalties for violations, including fines and license suspension.

Bottom Line on 104th General Assembly Act IL SB2503

The Illinois General Assembly licensing act, IL SB2503, amends the email, qualifying party, advisory boards, and civil penalty clauses. The new bill adds restrictions and limitations on unlicensed roofers through fines.

Overall, the Illinois Roofing Industry Licensing Act has been updated to meet contemporary needs. The most notable change has been to the advisory board, which now houses representatives from every sector of the roofing industry.

The dynamics are still the same for roofers, with the industry gaining more stability. Want to know more about future industry updates? Keep an eye on our blog or join our newsletter. If you want to go a step further, join our roofing classes and start your roofing career.