HB 89 Delaware House · 153rd General Assembly (2025-2026)

AN ACT TO AMEND TITLES 19 AND 29 RELATING TO HOME IMPROVEMENT DISPUTE RESOLUTION.

Summary
This Act directs the Division of Consumer Protection to establish a Home Improvement Dispute Resolution process through which a person who purchases home improvement services or materials from a contractor can initiate a dispute resolution process with the assistance of the Division. To be eligible for the dispute resolution process, the buyer must first send the contractor a written request to resolve the dispute and allow the contractor 20 days to respond. If the dispute is not resolved or the contractor fails to respond, the buyer may submit an application to the Division for assistance. Upon receiving notice from the Division that the buyer has initiated the dispute resolution process, a contractor must participate in good faith in the process. If the contractor fails to respond to the notice or fails to participate in good faith, it is deemed a violation of the Consumer Fraud Act and a notice will also be sent to the Department of Labor. A contractor who fails to participate in good faith in the dispute resolution process may also have their certificate of registration denied, suspended, or revoked. This Act also establishes that a buyer who initiates a civil action for damages incurred as a result of a violation of the Consumer Fraud Act related to a home improvement contract may be awarded actual damages, court costs, and reasonable attorneys fees. A buyer who initiates a civil action may also obtain up to treble damages if the buyer completed the steps to be eligible for the dispute resolution process, if the buyer made an offer of settlement at least 10 days prior to filing the civil suit and the contractor rejected the offer, if the offer was for less than the buyer is ultimately awarded by the court, and if the court holds that the contractor’s violation was wilful. This Act takes effect immediately and is to be implemented 6 months from the date of enactment.
Bill status passed both 4 of 5 stages cleared
Introduction
Mar 2025
Committee Review
Jun 2026
House Passage
Jun 2026
Senate Passage
Jun 2026
Governor
Introduced Mar 25, 2025 Last action Jun 25, 2026
Maddy AI version diff · 1 comparison

What changed between versions

HA 1 to HB 89 Bill Text · 9 edits
MAJOR
This diff transitions from a House Amendment (HA 1) that made two small clarifications to the final enacted text of HB 89. The final bill establishes a comprehensive Home Improvement Dispute Resolution Process under Delaware's Division of Consumer Protection, requiring contractors to participate in good faith and making non-participation a violation of the Consumer Fraud Act with presumed wilfulness. It also creates a private cause of action allowing buyers to recover actual damages plus treble damages if specific pre-suit settlement conditions are met, and adds registration disclosure and revocation grounds for contractors who fail to participate in good faith.
Scope change
The bill's scope expanded from a narrow amendment clarifying evidentiary rules for the dispute resolution process to a comprehensive statutory framework covering the entire Home Improvement Dispute Resolution Process, including eligibility procedures, mandatory contractor participation, good faith standards, confidentiality protections, enforcement through the Consumer Fraud Act and Department of Labor, private causes of action with treble damages, and registration consequences for non-compliant contractors.
SCOPE

Establishes a new Subchapter VI (sections 2561-2567) of Title 29 creating a Home Improvement Dispute Resolution Process administered by the Division of Consumer Protection, applicable to disputes between buyers and home improvement contractors.

Amends section 3607(a)(7) to expand grounds for denial, suspension, or revocation from violations related only to labor law compliance to also include violations of criminal or civil law or regulation related to consumer protection.

ELIGIBILITY

Buyers must first send the contractor a written request on an approved form signed under penalty of perjury, allow 20 days for a response, then submit a completed application to the Division including the contract, the written request, and either the contractor's response or a sworn statement of non-response.

REQUIREMENT

Contractors are required to participate in good faith in the dispute resolution process. Good faith is determined by all relevant facts and circumstances, with indicia including timely responses, written responses to allegations, reasonable settlement offers, and mitigation or repair efforts. Whether a contractor agreed to a settlement is explicitly excluded from the good faith analysis.

ENFORCEMENT

Failure to respond to the Division's notice or failure to participate in good faith is deemed an unlawful practice under the Consumer Fraud Act (Title 6, section 2513) and is presumed wilful. The contractor may rebut the presumption by proving good cause. The Division must also notify the Department of Labor of such failures.

Amends Title 19 section 3605 to require contractors to disclose on their registration application any labor law citations against a licensed entity in which they held a financial interest, convictions for home improvement fraud or new home construction fraud, findings of unlawful practice under the Consumer Fraud Act, and failures to participate in good faith in the dispute resolution process. Adds failure to participate in good faith as a ground for denial, suspension, or revocation of a registration certificate under section 3607.

FISCAL

Creates a private cause of action for buyers suffering damage from a Consumer Fraud Act violation related to a home improvement contract, allowing recovery of actual damages, court costs, and reasonable attorney fees. Treble (3x) compensatory damages are available if the buyer completed dispute resolution eligibility steps, made a written settlement offer at least 10 business days before filing, the contractor rejected or failed to respond to the offer within 10 business days, the court awards more than the offer amount, and a wilful violation is established.

DEFINITION

Defines key terms including Buyer, Contractor, Department (Department of Justice), Director (Director of Consumer Protection), Division (Division of Consumer Protection), Home, Home improvement, Home improvement contract, Merchandise, and Wilful violation, with several cross-referencing existing definitions in Titles 6 and 11.

TIMELINE

The Act is effective immediately upon enactment but must be implemented within 6 months of the date of enactment.

Floor votes · Senate Jun 25, 2026 · House Jun 11, 2026

How they voted

210
Passed
Total votes 21
Jun 25, 2026
D Democratic15
15 Yea
100% Yea
R Republican6
6 Yea
100% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
12
Key actions
7
Committee
4
Amendments
2
Jun 25, 2026
Upper · Passed
Passed By Senate. Votes: 21 YES
upper
Jun 24, 2026
Upper · Passed
Reported Out of Committee (Finance) in Senate with 4 On Its Merits
upper
Jun 18, 2026
Introduced
Assigned to Finance Committee in Senate
upper
Jun 18, 2026
Upper · Passed
Reported Out of Committee (Elections & Government Affairs) in Senate with 4 On Its Merits
upper
Jun 11, 2026
Introduced
Assigned to Elections & Government Affairs Committee in Senate
upper
Jun 11, 2026
Lower · Passed
Passed By House. Votes: 40 YES 1 ABSENT
lower
Jun 11, 2026
Lower · Passed
Amendment HA 1 to HB 89 - Passed In House by Voice Vote
lower
Jun 9, 2026
Lower · Passed
Reported Out of Committee (Appropriations) in House with 4 On Its Merits
lower
May 7, 2025
Introduced
Amendment HA 1 to HB 89 - Introduced and Placed With Bill
lower
Apr 17, 2025
Introduced
Assigned to Appropriations Committee in House
lower
Apr 16, 2025
Lower · Passed
Reported Out of Committee (Judiciary) in House with 5 Favorable, 2 On Its Merits
lower
Mar 25, 2025
Introduced
Introduced and Assigned to Judiciary Committee in House
lower
17 primary · 0 co-sponsors

Sponsors