Bill Text: IA SF461 | 2019-2020 | 88th 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. (Formerly SF 151.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2020-01-15 - Subcommittee: Sinclair, Shipley, and R. Taylor. S.J. 86. [SF461 Detail]
Download: Iowa-2019-SF461-Introduced.html
Senate
File
461
-
Introduced
SENATE
FILE
461
BY
COMMITTEE
ON
JUDICIARY
(SUCCESSOR
TO
SF
151)
A
BILL
FOR
An
Act
relating
to
home
improvement
fraud
and
providing
1
penalties
for
contractors
who
commit
home
improvement
fraud.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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461
Section
1.
NEW
SECTION
.
714.29
Home
improvement
fraud
——
1
penalties.
2
1.
As
used
in
this
section,
unless
the
context
otherwise
3
requires:
4
a.
“Consumer”
means
an
individual
who
owns,
leases,
or
5
rents
the
residential
property
that
is
subject
to
the
home
6
improvement
contract
and
engages
in
the
home
improvement
7
contract
with
the
contractor.
8
b.
“Contract
price”
means
the
total
price
agreed
upon
in
a
9
home
improvement
contract.
10
c.
“Contractor”
means
a
person
who
engages
in
home
11
improvement
work
under
a
home
improvement
contract
or
solicits
12
home
improvement
contracts
whether
or
not
the
person
interacts
13
directly
with
the
consumer.
14
d.
“Fair
market
value”
means
the
amount
for
the
home
15
improvement
which
in
commercial
judgment
or
under
usage
of
16
trade
would
be
reasonable
for
services,
materials,
and
work
of
17
similar
quality
and
workmanship.
18
e.
“Home
improvement”
means
any
alteration,
repair,
19
addition,
modification,
or
improvement
to
a
dwelling
or
the
20
property
on
which
it
is
situated,
including
but
not
limited
21
to
the
construction,
painting
or
coating,
installation,
22
replacement
or
repair
of
driveways,
sidewalks,
swimming
pools,
23
unattached
structures,
porches,
kitchens,
bathrooms,
chimneys,
24
fireplaces,
stoves,
air
conditioning
or
heating
systems,
hot
25
water
heaters,
water
treatment
systems,
electrical
wiring
or
26
systems,
plumbing
fixtures
or
systems,
doors,
windows,
roofs,
27
gutters,
downspouts,
and
siding.
28
f.
“Home
improvement
contract”
means
a
written
or
oral
29
agreement
whereby
a
contractor
offers
or
agrees
to
provide
30
a
home
improvement
to
a
consumer
in
exchange
for
payment
of
31
moneys,
regardless
of
whether
any
such
payment
is
made.
32
g.
“Material
fact”
means
a
fact
that
a
reasonable
person
33
would
consider
important
when
purchasing
a
home
improvement.
34
2.
A
person,
who
is
acting
as
a
contractor,
is
guilty
of
35
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home
improvement
fraud
if
the
person
enters,
or
offers
to
1
enter,
into
a
home
improvement
contract,
and
intentionally
does
2
any
of
the
following:
3
a.
Knowingly
uses
or
employs
a
false
pretense
or
false
4
promise
to
convey
that
a
need
exists
to
enter
into
a
home
5
improvement
contract.
6
b.
Knowingly
makes
a
false
statement,
or
knowingly
7
creates
or
reinforces
a
consumer’s
false
impression
or
belief
8
concerning
the
condition
of
a
consumer’s
dwelling
or
property
9
that
is
the
subject
of
the
home
improvement
contract.
10
c.
Knowingly
provides
a
false
personal
name
or
false
11
business
name,
address,
or
telephone
number
to
a
consumer.
12
d.
Knowingly
represents
that
repairs
or
work
have
been
13
performed
when
repairs
have
not
been
performed.
14
e.
Receives
moneys
from
a
consumer
prior
to
completion
of
15
a
home
improvement
for
the
purpose
of
paying
for
services,
16
labor,
materials,
or
equipment
and
intentionally
fails
to
17
substantially
complete
the
home
improvement
within
the
time
18
agreed
to
by
the
consumer
and
contractor
or
fails
to
pay
for
19
the
services,
labor,
materials,
and
equipment
incident
to
20
the
home
improvement.
The
time
for
substantial
completion
21
of
the
home
improvement
may
be
extended
by
agreement
of
the
22
parties,
or
for
reasonable
unforeseen
circumstances
beyond
the
23
contractor’s
control.
It
shall
be
a
defense
to
a
violation
of
24
this
subsection
if,
upon
failure
to
timely
perform
under
the
25
agreement
of
the
parties,
the
contractor
returns
moneys
to
the
26
consumer
that
were
advanced
for
services
and
materials
that
27
were
not
provided
by
that
date.
28
f.
Enters
into
an
unconscionable
home
improvement
contract
29
with
a
consumer.
30
(1)
For
the
purposes
of
this
paragraph,
if
the
contract
31
price
is
greater
than
four
times
the
fair
market
value
of
the
32
services,
material,
or
work
performed
or
to
be
performed,
it
is
33
prima
facie
evidence
that
a
contract
is
unconscionable.
34
(2)
Fair
market
value
shall
be
determined
as
of
the
date
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the
home
improvement
contract
was
entered
into.
However,
if
1
such
evidence
is
not
readily
available,
the
fair
market
value
2
prevailing
within
any
reasonable
time
before
or
after
the
time
3
described,
which
in
commercial
judgment
or
under
usage
of
trade
4
would
serve
as
a
reasonable
substitute,
may
be
used.
5
3.
A
person
who
commits
an
offense
under
this
section
is,
6
upon
conviction,
guilty
of
a
class
“D”
felony
if
any
of
the
7
following
circumstances
are
present:
8
a.
The
contract
price
or
the
total
amount
paid
to
the
9
defendant
by
or
on
behalf
of
the
consumer
is
one
thousand
five
10
hundred
dollars
or
more.
11
b.
At
least
one
of
the
consumers
who
entered
into
the
home
12
improvement
contract
is
sixty-two
years
of
age
or
older
at
the
13
time
the
violation
occurred.
14
c.
The
defendant
has
previously
been
convicted
under
this
15
section.
16
4.
If
none
of
the
circumstances
enumerated
in
subsection
3
17
are
present,
a
person
who
commits
an
offense
under
this
section
18
is,
upon
conviction,
guilty
of
an
aggravated
misdemeanor.
19
5.
This
section
shall
not
impair,
limit,
or
reduce
the
20
statutory,
common
law,
or
contractual
duties,
liabilities,
or
21
rights
of
any
contractor
or
consumer.
22
EXPLANATION
23
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
24
the
explanation’s
substance
by
the
members
of
the
general
assembly.
25
This
bill
relates
to
home
improvement
fraud.
The
bill
26
defines
home
improvement
as
any
alteration,
repair,
addition,
27
modification,
or
improvement
to
a
dwelling
or
the
property
28
on
which
it
is
situated,
including
but
not
limited
to
the
29
construction,
painting
or
coating,
installation,
replacement
30
or
repair
of
driveways,
sidewalks,
swimming
pools,
unattached
31
structures,
porches,
kitchens,
bathrooms,
chimneys,
fireplaces,
32
stoves,
air
conditioning
or
heating
systems,
hot
water
33
heaters,
water
treatment
systems,
electrical
wiring
or
systems,
34
plumbing
fixtures
or
systems,
doors,
windows,
roofs,
gutters,
35
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461
downspouts,
and
siding.
1
The
bill
provides
that
a
person,
who
is
acting
as
a
2
contractor,
is
guilty
of
home
improvement
fraud
if
the
person
3
enters,
or
offers
to
enter,
into
a
home
improvement
contract,
4
and
intentionally
does
any
of
the
following:
knowingly
uses
5
or
employs
a
false
pretense
or
false
promise
to
convey
that
6
there
is
a
need
to
enter
into
a
home
improvement
contract;
7
knowingly
makes
a
false
statement,
or
knowingly
creates
or
8
reinforces
a
consumer’s
false
impression
or
belief
concerning
9
the
condition
of
a
consumer’s
dwelling
or
property
that
is
the
10
subject
of
the
home
improvement
contract;
knowingly
provides
11
a
false
personal
name
or
false
business
name,
address,
or
12
telephone
to
a
consumer;
knowingly
represents
that
repairs
or
13
work
have
been
performed
when
repairs
or
work
have
not
been
14
performed;
receives
moneys
from
a
consumer
prior
to
completion
15
of
a
home
improvement
for
the
purpose
of
paying
for
services,
16
labor,
materials,
or
equipment
and
intentionally
fails
to
17
substantially
complete
the
home
improvement
within
the
time
18
agreed
to
by
the
consumer
and
the
contractor
or
fails
to
pay
19
for
the
services,
labor,
materials,
and
equipment
incident
to
20
the
home
improvement;
or
enters
into
an
unconscionable
home
21
improvement
contract
with
a
consumer.
22
The
bill
provides
that
a
person
who
commits
an
offense
under
23
the
bill
is,
upon
conviction,
guilty
of
a
class
“D”
felony
if
24
any
of
the
following
circumstances
are
present:
the
contract
25
price
or
the
total
amount
paid
to
the
defendant
by
or
on
26
behalf
of
the
consumer
is
$1,500
or
more;
at
least
one
of
the
27
consumers
who
entered
into
the
home
improvement
contract
is
62
28
years
of
age
or
older
at
the
time
the
violation
occurred;
or
29
the
defendant
has
previously
been
convicted
under
the
bill.
If
30
none
of
these
circumstances
are
present,
a
person
who
commits
31
an
offense
under
the
bill
is,
upon
conviction,
guilty
of
an
32
aggravated
misdemeanor.
33
A
class
“D”
felony
is
punishable
by
confinement
for
no
more
34
than
five
years
and
a
fine
of
at
least
$750
but
not
more
than
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461
$7,500.
An
aggravated
misdemeanor
is
punishable
by
confinement
1
for
no
more
than
two
years
and
a
fine
of
at
least
$625
but
not
2
more
than
$6,250.
3
The
bill
provides
that
the
bill
shall
not
impair,
limit,
4
or
reduce
the
statutory,
common
law,
or
contractual
duties,
5
liabilities,
or
rights
of
any
contractor
or
consumer.
6
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