Delaware General Assembly

House Economic Development/Banking/Insurance & Commerce 6/12/24

Committee Hearing takes place within twelve legislative days.

HB 427 -HA 1

6/12/24

Morrison

Sen. Huxtable
Reps. Dorsey Walker, Lambert

AN ACT TO AMEND TITLES 6 AND 11 OF THE DELAWARE CODE RELATING TO HOME CONSTRUCTION CONTRACTS.

This Act protects consumers by regulating home improvement contracts. Among other things, this Act provides the buyer with a right to cancel home improvement contracts within 3 days (5 days for those over the age of 62 or with a disability); limits contract deposits and material deposits; and time periods in which construction must begin. It also prohibits confessions of judgments and hasty debt transfers. Where the court finds a party to a home improvement contract wilfully violates a provision of this new subchapter, the court must award to the prevailing party costs, expenses, and reasonable attorneys’ fees. This Act also creates a requirement that individuals convicted of 2 or more offenses of home improvement fraud after January 1, 2025, must be subject to debarment. This debarment will preclude these individuals from operating a business which engages in home improvement services or from employing other individuals to engage in home improvement services. Debarred individuals may work for a company which engages in home improvement themselves, so long as they are not in control of the company in question. This bill also enhances penalties for home improvement fraud for those with prior convictions for home improvement fraud; and creates enhanced penalties for individuals who engage in home improvement services while operating companies which are not registered with the Delaware Department of Labor’s Contractor Registry. This Substitute differs from the original House Bill No. 427 in that it eliminates original lines 156-181 which contained sentencing enhancements that the Act would otherwise have added for those convicted of home improvement fraud who are found not to have complied with the home improvement protections set forth in Chapter 36 of Title 19. It changes the definition of “debarment” in original line 113 and “qualifying conviction” in original lines 131-133 to provide greater clarity. It changes the enhanced penalties for violations of home improvement fraud from those set forth in original lines 137-143.

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Takes effect upon being signed into law

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