HB 3860
Prohibits a major residential contractor from collecting or retaining more than 50 percent of the original contract price before substantially completing a remodeling or repair of an owner-occupied one-family or two-family residential structure if the original contract price exceeds $40,000.
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Support
0%
Oppose
100%
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill restricts how major residential contractors can collect payments on remodeling or repair projects. It limits them to retaining no more than 50% of the original contract price before the work is substantially completed, unless the property owner agrees to additional changes that increase the project cost. Contractors are required to make progress payments linked to specific work milestones and can seek mediation through the Construction Contractors Board if a property owner unreasonably delays approval. The bill also establishes certification requirements for businesses installing spray-on fireproofing material in essential facilities.
Key provisions
- Major residential contractors can only retain up to 50% of the original contract price before substantial completion for projects over $40,000.
- Property owners can agree to changes that increase the contract price, allowing contractors to retain up to 50% of the increase.
- Contractors must require progress payments linked to specific work milestones.
- Contractors can file a dispute with the Construction Contractors Board for unreasonable delays in approval.
- A business must obtain certification from the Construction Contractors Board to install spray-on fireproofing material.
- The certification program must meet nationally recognized standards and assess applicant knowledge.
- Building officials can require proof of certification as a condition of issuing a permit.
- The Construction Contractors Board will maintain a searchable database of certified businesses.
Who is affected
Sponsors
Official sponsors from legislative records.
Primary sponsor
Gregory Smith
Arguments in favor
Reasons to support this legislation.
No arguments in favor have been submitted.
Submit yoursArguments opposed
Reasons to oppose this legislation.
Opponents of HB 3860 argue that the bill would unfairly restrict the participation of publicly traded companies in large-scale home improvement projects, potentially leading to increased costs for consumers. They contend that this provision would stifle competition and innovation in the industry, as smaller businesses and startups may struggle to compete with larger, more established companies. Additionally, critics suggest that this targeted restriction could have broader implications for the economy, as it may discourage investment and job creation in the construction sector. By limiting access to large-scale projects, HB 3860 could ultimately drive up prices and reduce consumer choice, according to proponents of this view.
Source: Testimony Summaries