Delaware General Assembly

Lieu/Substituted 6/12/24

If original bill has not been considered in committee, the substitute takes place of original bill. If original bill has been considered in committee, the substitute will be assigned to committee for consideration.

HS 1 for HB 427

6/6/24

Morrison

Sen. Huxtable

Sen. Hansen, Hoffner, Lockman, Wilson
Reps. Cooke, Dorsey Walker, Lambert, Phillips, Parker Selby

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; creates a new Class D felony for debarred individuals who operate companies or employ other individuals which engage in home improvement; 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.

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Takes effect upon being signed into law

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