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