An Act providing for bonding requirements for contractors performing work on adjoining properties; and imposing penalties.

HB 1798 requires contractors performing home improvement work on properties adjacent to other properties (adjoining properties) to obtain a $500,000 surety bond per adjoining property. The bond must cover damages to the neighboring property and proof must be submitted to the municipality when applying for a building permit. Contractors without the bond face civil penalties of $10,000 for the first violation and $20,000 for each subsequent offense. The law applies to most home improvement contractors but excludes small projects under $5,000 and large home improvement retailers with over $50 million in net worth.