HLS 14RS-1069 ORIGINAL
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are additions.
Regular Session, 2014
HOUSE BILL NO. 417
BY REPRESENTATIVE LOPINTO
CRIME: Creates the crime of residential contractor fraud
AN ACT1
To amend and reenact R.S. 14:202.1, relative to offenses against property; to provide for the2
crime of residential contractor fraud; to provide for criminal penalties; to provide for3
restitution; to delete provisions relating to home improvement fraud; and to provide4
for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 14:202.1 is hereby amended and reenacted to read as follows: 7
ยง202.1. Home improvement fraud Residential contractor fraud; penalties8
A. Home improvement fraud is committed when a person who has9
contracted to perform any home improvement, or who has subcontracted for the10
performance of any home improvement, hereinafter referred to as "contractor",11
knowingly engages in any of the following actions:12
(1) The failure to perform any work during a forty-five-day period of time13
or longer after receiving payment.14
(2) The use by a contractor, or by an agent or employee of a contractor, of15
any deception, false pretense, or false promise to cause any person to enter into a16
contract for home improvements.17
(3) The damaging of any property of any person, by a contractor, or by an18
agent or employee of a contractor, with the intent to induce that person to enter into19
a contract for home improvements.20 HLS 14RS-1069 ORIGINAL
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B. For purposes of this Section, "home improvement" means any alteration,1
repair, modification, or other improvement to any immovable or movable property2
primarily designed or used as a residence or to any structure within the residence or3
upon the land adjacent thereto.4
C. The following shall constitute affirmative defenses to a violation of5
Paragraph (A)(1) of this Section:6
(1) The work could not be performed due to excessive inclement weather7
conditions, and the work to be performed is outdoors.8
(2) The work could not be performed due to the failure to receive necessary9
materials.10
(3) The work could not be performed for justifiable medical reasons which11
can be verified.12
(4) The work could not be performed due to the inability to access the job13
site.14
(5) The parties have contracted to provisions which are different than those15
provided by this statute, and those provisions are clear and unambiguous.16
(6) The contractor has written verification of job completion.17
(7) The work could not be performed due to the inability to obtain proper18
work permits.19
D. Whoever commits the crime of home improvement fraud shall be fined20
not more than one thousand dollars and shall be imprisoned for not more than six21
months, when any of the following occur:22
(1) The home improvement fraud is an act specified in Paragraph (A)(1) of23
this Section, and the person with whom the contract for the home improvement has24
been entered into has been paid an amount of less than five hundred dollars.25
(2) The home improvement fraud is a first offense commission of an act26
specified in Paragraph (A)(2) of this Section.27 HLS 14RS-1069 ORIGINAL
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(3) The home improvement fraud is an act specified in Paragraph (A)(3) of1
this Section, and the cost to repair the damaged property is in an amount which is2
less than five hundred dollars.3
E. Whoever commits the crime of home improvement fraud shall be4
imprisoned, with or without hard labor, for not more than two years, and shall be5
fined not more than five thousand dollars, when any of the following occur:6
(1) The home improvement fraud is an act specified in Paragraph (A)(1) of7
this Section, and the person with whom the contract for the home improvement has8
been entered into has been paid an amount of five hundred dollars or more, but less9
than one thousand five hundred dollars.10
(2) The home improvement fraud is a second offense commission of an act11
specified in Paragraph (A)(2) of this Section.12
(3) The home improvement fraud is an act specified in Paragraph (A)(3) of13
this Section, and the cost to repair the damaged property is in an amount which is14
valued at five hundred dollars or more, but less than one thousand five hundred15
dollars.16
F. Whoever commits the crime of home improvement fraud shall be fined17
not more than twenty thousand dollars and shall be imprisoned, with or without hard18
labor, for not more than ten years, if the home improvement fraud is committed19
under any of the following circumstances:20
(1) The home improvement fraud is an act specified in Paragraph (A)(1) of21
this Section, and the person with whom the contract for the home improvement has22
been entered into has been paid an amount of one thousand five hundred dollars or23
more.24
(2) The home improvement fraud is a third or subsequent offense25
commission of an act specified in Paragraph (A)(2) of this Section.26
(3) The home improvement fraud is an act specified in Paragraph (A)(3) of27
this Section, and the cost to repair the damaged property is in an amount which is28
valued at one thousand five hundred dollars or more.29 HLS 14RS-1069 ORIGINAL
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(4) The person with whom the contract for home improvement is entered1
into is a disabled person.2
(5) The person with whom the contract for home improvement is entered3
into is sixty years of age or older.4
G. For the purposes of this Section, the following shall apply:5
(1) Lack of knowledge of the person's age or disability shall not be a defense.6
(2) Restitution shall be ordered by the court.7
A. Residential contractor fraud is the misappropriation or intentional taking8
of anything of value which belongs to another, either without the consent of the other9
to the misappropriation or taking, or by means of fraudulent conduct, practices, or10
representations by a person who has contracted to perform any home improvement11
or residential construction, or who has subcontracted for the performance of any12
home improvement or residential construction. A misappropriation or intentional13
taking may be inferred when a person does any of the following:14
(1) Fails to perform any work during a forty-five-day period of time or15
longer after receiving payment, unless a longer period is specified in the contract.16
(2) Uses, or causes an agent or employee to use, any deception, false17
pretense, or false promise to cause any person to enter into a contract for home18
improvements or residential construction.19
(3) Damages the property of any person with the intent to induce that person20
to enter into a contract for home improvements or residential construction.21
(4) Knowingly makes a material misrepresentation of fact in any application22
for a permit required by state, municipal, or parochial law.23
(5) Knowingly makes a material misrepresentation of fact in any lien placed24
upon the property at issue.25
(6) Fails to possess the required license for home improvements or26
residential construction required by applicable state, municipal, or parochial statute.27
(7) Knowingly employs a subcontractor who does not possess the required28
license by applicable state, municipal, or parochial statute.29 HLS 14RS-1069 ORIGINAL
HB NO. 417
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B. For purposes of this Section, "home improvement or residential1
construction" means any alteration, repair, modification, construction, or other2
improvement to any immovable or movable property primarily designed or used as3
a residence or to any structure within the residence or upon the land adjacent to the4
residence.5
C.(1) When the misappropriation or intentional taking amounts to a value of6
less than five hundred dollars, the offender shall be imprisoned for not more than six7
months, fined not more than one thousand dollars, or both.8
(2) When the misappropriation or intentional taking amounts to a value of9
five hundred dollars or more, but less than one thousand five hundred dollars, the10
offender shall be imprisoned, with or without hard labor, for not more than five11
years, or may be fined not more than two thousand dollars, or both.12
(3) When the misappropriation or intentional taking amounts to a value of13
one thousand five hundred dollars or more, the offender shall be imprisoned, with14
or without hard labor, for not more than ten years, or may be fined not more than15
three thousand dollars, or both.16
(4) In determining the amount of the misappropriation or intentional taking,17
the court shall include the cost of repairing work fraudulently performed by the18
contractor and the cost of completing work for which the contractor was paid but did19
not complete.20
D. In addition to the penalties provided by the provisions of this Section, a21
person convicted of residential contractor fraud shall be ordered to make full22
restitution to the victim and any other person who has suffered a financial loss as a23
result of the offense. For the purposes of this Subsection, restitution to the victim24
shall include the cost of repairing work fraudulently performed by the contractor and25
the cost of completing work for which the contractor was paid but did not complete.26 HLS 14RS-1069 ORIGINAL
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are additions.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Lopinto HB No. 417
Abstract: Creates the crime of residential contractor fraud and deletes provisions of law
relating to home improvement fraud.
Proposed law creates the crime of residential contractor fraud and defines it as the
misappropriation or intentional taking of anything of value which belongs to another either
without the consent of the other or by means of fraudulent conduct, practices, or
representations by a person who has contracted or subcontracted to perform any home
improvement or residential construction. Provides for actions which may be inferred as a
misappropriation or intentional taking.
Proposed law defines "home improvement or residential construction".
Proposed law requires the payment of restitution and provides for the following criminal
penalties:
(1)A fine of not more than $1,000, imprisonment for not more than six months, or both
when the misappropriation or taking amounts to a value of less than $500.
(2)A fine of not more than $2,000, imprisonment with or without hard labor for not
more than five years, or both when the misappropriation or taking amounts to a value
of $500 or more, but less than $1,500.
(3)A fine of not more than $3,000, imprisonment with or without hard labor for not
more than 10 years, or both when the misappropriation or taking amounts to a value
of $1,500 or more.
(Amends R.S. 14:202.1)