Bill Text: IA HF2316 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act relating to home improvement fraud and providing penalties for contractors who commit home improvement fraud.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-02-12 - Introduced, referred to Commerce. H.J. 251. [HF2316 Detail]
Download: Iowa-2017-HF2316-Introduced.html
House File 2316 - Introduced HOUSE FILE BY HEARTSILL A BILL FOR 1 An Act relating to home improvement fraud and providing 2 penalties for contractors who commit home improvement fraud. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5608YH (2) 87 asf/rj PAG LIN 1 1 Section 1. NEW SECTION. 714.29 Home improvement fraud == 1 2 penalties. 1 3 1. As used in this section, unless the context otherwise 1 4 requires: 1 5 a. "Consumer" means an individual who owns, leases, or 1 6 rents the residential property that is subject to the home 1 7 improvement contract. 1 8 b. "Contract price" means the total price agreed upon in a 1 9 home improvement contract. 1 10 c. "Contractor" means a person who engages in or solicits 1 11 home improvement contracts whether or not the person deals 1 12 directly with the consumer. 1 13 d. "Fair market value" means the amount for the home 1 14 improvement which in commercial judgment or under usage of 1 15 trade would be reasonable for services, materials, and work of 1 16 similar quality and workmanship. 1 17 e. ?"Home improvement" means any alteration, repair, 1 18 addition, modification, or improvement to a dwelling or the 1 19 property on which it is situated, including but not limited 1 20 to the construction, painting or coating, installation, 1 21 replacement or repair of driveways, sidewalks, swimming pools, 1 22 unattached structures, porches, kitchens, bathrooms, chimneys, 1 23 fireplaces, stoves, air conditioning or heating systems, hot 1 24 water heaters, water treatment systems, electrical wiring or 1 25 systems, plumbing fixtures or systems, doors, windows, roofs, 1 26 gutters, downspouts, and siding. 1 27 f. "Home improvement contract" means a written or oral 1 28 agreement whereby a contractor offers or agrees to provide home 1 29 improvements in exchange for payment of moneys, regardless of 1 30 whether any such payments are made. 1 31 g. "Material fact" means a fact that a reasonable person 1 32 would consider important when purchasing a home improvement. 1 33 h. "Unconscionable home improvement contract" means a home 1 34 improvement contract in which an unreasonable difference exists 1 35 between the fair market value of services, materials, and work 2 1 performed or to be performed and the home improvement contract 2 2 price. 2 3 2. A person, who is acting as a contractor, is guilty of 2 4 home improvement fraud if the person enters, or offers to 2 5 enter, into a home improvement contract, and intentionally does 2 6 any of the following: 2 7 a. Uses or employs a false pretense or false promise to 2 8 convey that a need exists to enter into a home improvement 2 9 contract. 2 10 b. Knowingly creates or reinforces a consumer's false 2 11 impression or belief concerning the condition of a consumer's 2 12 dwelling or property that is the subject of the home 2 13 improvement contract. 2 14 c. Makes a false statement or omits a material fact as to 2 15 the terms of the home improvement contract or the condition of 2 16 a person's dwelling or property that is the subject of the home 2 17 improvement contract. 2 18 d. Receives moneys for the purpose of paying for services, 2 19 labor, materials, or equipment and fails to apply such moneys 2 20 for such purpose by doing any of the following: 2 21 (1) Failing to substantially complete the home improvement 2 22 for which the moneys were provided within the following time 2 23 periods: 2 24 (a) Within thirty days of the date specified in the contract 2 25 for substantially completed work, if such a date is specified. 2 26 (b) Within ninety days of the date of the signed written 2 27 home improvement contract, if no completion date is specified 2 28 in the contract. 2 29 (c) Within ninety days of receipt of moneys paid by the 2 30 consumer to the contractor, if the contract is oral. 2 31 This section does not preclude the contactor and consumer 2 32 from agreeing to change the original, substantial completion 2 33 date to accommodate situations unknown to either the contractor 2 34 or consumer at the time of entering into the original contract. 2 35 (2) Failing to pay for the services, labor, materials, or 3 1 equipment provided incident to such home improvement. 3 2 (3) Diverting the moneys to a use other than for which the 3 3 moneys were received. 3 4 e. Provides a false individual name or a false business 3 5 name, address, or telephone number to a consumer. 3 6 f. Enters into an unconscionable home improvement contract 3 7 with a consumer. 3 8 (1) For the purposes of this paragraph, if the contract 3 9 price is greater than four times the fair market value of the 3 10 services, material, or work performed or to be performed, it is 3 11 prima facie evidence that a contract is unconscionable. 3 12 (2) Fair market value shall be determined as of the date 3 13 the home improvement contract was entered into. However, if 3 14 such evidence is not readily available, the fair market value 3 15 prevailing within any reasonable time before or after the time 3 16 described, which in commercial judgment or under usage of trade 3 17 would serve as a reasonable substitute, may be used. 3 18 3. It shall be evidence of intent, that the person, who is 3 19 acting as a contractor, has committed home improvement fraud if 3 20 any of the following are applicable: 3 21 a. The person has previously been convicted under this 3 22 section or under a similar statute of the United States or of 3 23 any state or of the District of Columbia within ten years of 3 24 the home improvement contract in question. 3 25 b. The person is currently subject to any administrative 3 26 orders, judgments, or injunctions that relate to home 3 27 improvements. 3 28 4. A person who commits an offense under this section is, 3 29 upon conviction, guilty of a class "D" felony if any of the 3 30 following circumstances are present: 3 31 a. The contract price or the total amount paid to the 3 32 defendant by or on behalf of the consumer is one thousand five 3 33 hundred dollars or more. 3 34 b. The consumer who entered into the home improvement 3 35 contract is sixty=two years of age or older. 4 1 c. The defendant has previously been convicted under this 4 2 section. 4 3 5. If none of the circumstances enumerated in subsection 4 4 4 are present, a person who commits an offense under this section 4 5 is, upon conviction, guilty of an aggravated misdemeanor. 4 6 EXPLANATION 4 7 The inclusion of this explanation does not constitute agreement with 4 8 the explanation's substance by the members of the general assembly. 4 9 This bill relates to home improvement fraud. The bill 4 10 defines home improvement as any alteration, repair, addition, 4 11 modification, or improvement to a dwelling or the property 4 12 on which it is situated, including but not limited to the 4 13 construction, painting or coating, installation, replacement 4 14 or repair of driveways, sidewalks, swimming pools, unattached 4 15 structures, porches, kitchens, bathrooms, chimneys, fireplaces, 4 16 stoves, air conditioning or heating systems, hot water 4 17 heaters, water treatment systems, electrical wiring or systems, 4 18 plumbing fixtures or systems, doors, windows, roofs, gutters, 4 19 downspouts, and siding. 4 20 The bill provides that a person, who is acting as a 4 21 contractor, is guilty of home improvement fraud if the person 4 22 enters, or offers to enter, into a home improvement contract, 4 23 and intentionally does any of the following: uses or employs a 4 24 false pretense or false promise to convey that there is a need 4 25 to enter into a home improvement contract; knowingly creates or 4 26 reinforces a consumer's false impression or belief concerning 4 27 the condition of a consumer's dwelling or property that is 4 28 the subject of the home improvement contract; makes a false 4 29 statement or omits a material fact as to the terms of the home 4 30 improvement contract or the condition of a person's dwelling or 4 31 property that is the subject of the home improvement contract; 4 32 receives moneys for the purpose of paying for services, labor, 4 33 materials, or equipment and fails to apply such moneys for 4 34 such purpose by failing to substantially complete the home 4 35 improvement for which the moneys were provided within specified 5 1 time periods, failing to pay for the services, labor, materials 5 2 or equipment provided incident to such home improvement, or 5 3 diverting the moneys to a use other than for which the moneys 5 4 were received; provides a false individual name or a false 5 5 business name, address, or telephone number to a consumer; or 5 6 enters into an unconscionable home improvement contract with 5 7 a consumer. 5 8 The bill provides that it shall be evidence of intent, 5 9 that the person, who is acting as a contractor, has committed 5 10 home improvement fraud if the person has previously been 5 11 convicted under this bill or under a similar statute of the 5 12 United States or of any state or of the District of Columbia 5 13 within 10 years of entering into the home improvement contract 5 14 in question or if the person is currently subject to any 5 15 administrative orders, judgments, or injunctions that relate to 5 16 home improvements. 5 17 The bill provides that a person who commits an offense under 5 18 the bill is, upon conviction, guilty of a class "D" felony if 5 19 any of the following circumstances are present: the contract 5 20 price or the total amount paid to the defendant by or on behalf 5 21 of the consumer is $1,500 or more; the consumer who entered 5 22 into the home improvement contract is 62 years of age or older; 5 23 or the defendant has previously been convicted under the bill. 5 24 If none of these circumstances are present, a person who 5 25 commits an offense under the bill is, upon conviction, guilty 5 26 of an aggravated misdemeanor. 5 27 A class "D" felony is punishable by confinement for no more 5 28 than five years and a fine of at least $750 but not more than 5 29 $7,500. An aggravated misdemeanor is punishable by confinement 5 30 for no more than two years and a fine of at least $625 but not 5 31 more than $6,250. LSB 5608YH (2) 87 asf/rj
