AN ACT TO AMEND TITLES 19 AND 29 RELATING TO HOME IMPROVEMENT DISPUTE RESOLUTION.
What changed between versions
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.
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.
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.
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.
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.
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.
The Act is effective immediately upon enactment but must be implemented within 6 months of the date of enactment.