ENROLLED
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Regular Session, 2014
HOUSE BILL NO. 417
BY REPRESENTATIVES LOPINTO AND WILLMOTT
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
B. For purposes of this Section, "home improvement" means any alteration,21
repair, modification, or other improvement to any immovable or movable property22
primarily designed or used as a residence or to any structure within the residence or23
upon the land adjacent thereto.24 ENROLLEDHB NO. 417
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C. The following shall constitute affirmative defenses to a violation of1
Paragraph (A)(1) of this Section:2
(1) The work could not be performed due to excessive inclement weather3
conditions, and the work to be performed is outdoors.4
(2) The work could not be performed due to the failure to receive necessary5
materials.6
(3) The work could not be performed for justifiable medical reasons which7
can be verified.8
(4) The work could not be performed due to the inability to access the job9
site.10
(5) The parties have contracted to provisions which are different than those11
provided by this statute, and those provisions are clear and unambiguous.12
(6) The contractor has written verification of job completion.13
(7) The work could not be performed due to the inability to obtain proper14
work permits.15
D. Whoever commits the crime of home improvement fraud shall be fined16
not more than one thousand dollars and shall be imprisoned for not more than six17
months, when any of the following occur:18
(1) The home improvement fraud is an act specified in Paragraph (A)(1) of19
this Section, and the person with whom the contract for the home improvement has20
been entered into has been paid an amount of less than five hundred dollars.21
(2) The home improvement fraud is a first offense commission of an act22
specified in Paragraph (A)(2) of this Section.23
(3) The home improvement fraud is an act specified in Paragraph (A)(3) of24
this Section, and the cost to repair the damaged property is in an amount which is25
less than five hundred dollars.26
E. Whoever commits the crime of home improvement fraud shall be27
imprisoned, with or without hard labor, for not more than two years, and shall be28
fined not more than five thousand dollars, when any of the following occur:29 ENROLLEDHB NO. 417
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(1) The home improvement fraud is an act specified in Paragraph (A)(1) of1
this Section, and the person with whom the contract for the home improvement has2
been entered into has been paid an amount of five hundred dollars or more, but less3
than one thousand five hundred dollars.4
(2) The home improvement fraud is a second offense commission of an act5
specified in Paragraph (A)(2) of this Section.6
(3) The home improvement fraud is an act specified in Paragraph (A)(3) of7
this Section, and the cost to repair the damaged property is in an amount which is8
valued at five hundred dollars or more, but less than one thousand five hundred9
dollars.10
F. Whoever commits the crime of home improvement fraud shall be fined11
not more than twenty thousand dollars and shall be imprisoned, with or without hard12
labor, for not more than ten years, if the home improvement fraud is committed13
under any of the following circumstances:14
(1) The home improvement fraud is an act specified in Paragraph (A)(1) of15
this Section, and the person with whom the contract for the home improvement has16
been entered into has been paid an amount of one thousand five hundred dollars or17
more.18
(2) The home improvement fraud is a third or subsequent offense19
commission of an act specified in Paragraph (A)(2) of this Section.20
(3) The home improvement fraud is an act specified in Paragraph (A)(3) of21
this Section, and the cost to repair the damaged property is in an amount which is22
valued at one thousand five hundred dollars or more.23
(4) The person with whom the contract for home improvement is entered24
into is a disabled person.25
(5) The person with whom the contract for home improvement is entered26
into is sixty years of age or older.27
G. For the purposes of this Section, the following shall apply:28
(1) Lack of knowledge of the person's age or disability shall not be a defense.29
(2) Restitution shall be ordered by the court.30 ENROLLEDHB NO. 417
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are additions.
A. Residential contractor fraud is the misappropriation or intentional taking1
of anything of value which belongs to another, either without the consent of the other2
to the misappropriation or taking, or by means of fraudulent conduct, practices, or3
representations by a person who has contracted to perform any home improvement4
or residential construction, or who has subcontracted for the performance of any5
home improvement or residential construction. A misappropriation or intentional6
taking may be inferred when a person does any of the following:7
(1) Fails to perform any work during a forty-five-day period of time or8
longer after receiving payment, unless a longer period is specified in the contract.9
(2) Uses, or causes an agent or employee to use, any deception, false10
pretense, or false promise to cause any person to enter into a contract for home11
improvements or residential construction.12
(3) Damages the property of any person with the intent to induce that person13
to enter into a contract for home improvements or residential construction.14
(4) Knowingly makes a material misrepresentation of fact in any application15
for a permit required by state, municipal, or parochial law.16
(5) Knowingly makes a material misrepresentation of fact in any lien placed17
upon the property at issue.18
(6) Fails to possess the required license for home improvements or19
residential construction required by applicable state, municipal, or parochial statute.20
(7) Knowingly employs a subcontractor who does not possess the required21
license by applicable state, municipal, or parochial statute.22
B. For purposes of this Section, "home improvement or residential23
construction" means any alteration, repair, modification, construction, or other24
improvement to any immovable or movable property primarily designed or used as25
a residence or to any structure within the residence or upon the land adjacent to the26
residence.27
C.(1) When the misappropriation or intentional taking amounts to a value of28
less than five hundred dollars, the offender shall be imprisoned for not more than six29
months, fined not more than one thousand dollars, or both.30 ENROLLEDHB NO. 417
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(2) When the misappropriation or intentional taking amounts to a value of1
five hundred dollars or more, but less than one thousand five hundred dollars, the2
offender shall be imprisoned, with or without hard labor, for not more than five3
years, or may be fined not more than two thousand dollars, or both.4
(3) When the misappropriation or intentional taking amounts to a value of5
one thousand five hundred dollars or more, the offender shall be imprisoned, with6
or without hard labor, for not more than ten years, or may be fined not more than7
three thousand dollars, or both.8
(4) In determining the amount of the misappropriation or intentional taking,9
the court shall include the cost of repairing work fraudulently performed by the10
contractor and the cost of completing work for which the contractor was paid but did11
not complete.12
D. In addition to the penalties provided by the provisions of this Section, a13
person convicted of residential contractor fraud shall be ordered to make full14
restitution to the victim and any other person who has suffered a financial loss as a15
result of the offense. For the purposes of this Subsection, restitution to the victim16
shall include the cost of repairing work fraudulently performed by the contractor and17
the cost of completing work for which the contractor was paid but did not complete.18
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: