New York 2025-2026 Regular Session

New York Senate Bill S05248

Introduced
2/20/25  
Refer
2/20/25  

Caption

Establishes the home improvement fraud prevention act relating to the responsibilities of home improvement contractors and requiring home improvement contractors to register with the secretary of state.

Summary

Bill S05248, known as the 'Home Improvement Fraud Prevention Act', aims to enhance the regulation of home improvement contractors in New York State. It mandates that all home improvement contractors must obtain a certificate of registration from the Secretary of State before soliciting or performing any work. The bill outlines the responsibilities of contractors, including the requirement to disclose any financial arrangements related to home improvement contracts and to maintain certain insurance coverages. Additionally, it establishes a state home improvement contractor board to oversee the registration process and ensure compliance with the law. The legislation also introduces provisions for the suspension or revocation of a contractor's registration for substantial violations, and it sets forth criteria for obtaining and renewing registration, including the completion of continuing education requirements. Furthermore, it creates a central registry of home improvement contractors to facilitate oversight and consumer protection. The bill aims to protect consumers from fraudulent practices and ensure that contractors meet specific standards of conduct and professionalism. In terms of impact, this bill significantly alters the landscape for home improvement contractors in New York by instituting a formal registration process and establishing a regulatory framework that holds contractors accountable for their actions. It enhances consumer protection by providing a mechanism for reporting and addressing fraudulent behavior in the home improvement industry. The bill also aligns with existing laws regarding insurance requirements and building permits, thereby reinforcing the importance of compliance in these areas. The general sentiment surrounding the bill appears to be supportive, as it addresses long-standing issues of fraud and unregulated practices in the home improvement sector. Stakeholders, including consumer advocacy groups, have expressed approval for measures that enhance transparency and accountability among contractors. However, there may be concerns from some contractors regarding the additional regulatory burden and costs associated with compliance. Overall, the bill is seen as a positive step towards improving the integrity of the home improvement industry in New York.

Impact

The Home Improvement Fraud Prevention Act will have a substantial impact on state laws by establishing a mandatory registration process for home improvement contractors, thereby creating a formal regulatory framework. This will require contractors to adhere to specific standards of conduct, including financial disclosures and insurance requirements. The establishment of a state home improvement contractor board will facilitate oversight and enforcement of these regulations, enhancing consumer protection against fraudulent practices. Additionally, the creation of a central registry will improve transparency and accountability within the industry, allowing consumers to verify the legitimacy of contractors before engaging their services.

Sentiment

The sentiment around Bill S05248 is largely positive, with support from consumer advocacy groups who view it as a necessary measure to combat fraud in the home improvement industry. Stakeholders appreciate the focus on consumer protection and the establishment of a regulatory framework that holds contractors accountable. However, there may be some apprehension from contractors regarding the potential increase in regulatory requirements and associated costs. Overall, the bill is perceived as a significant improvement for both consumers and responsible contractors.

Contention

Notable points of contention may arise from contractors who feel that the new registration and compliance requirements impose an undue burden on their businesses. Some may argue that the costs associated with registration and the need for continuing education could be prohibitive, particularly for smaller contractors. Additionally, there may be concerns about the potential for bureaucratic delays in the registration process. While consumer advocates support the bill for its protective measures, the contractor community may seek amendments to ease the regulatory load.

Companion Bills

NY A01783

Same As Establishes the home improvement fraud prevention act relating to the responsibilities of home improvement contractors and requiring home improvement contractors to register with the secretary of state.

Previously Filed As

NY S04066

Establishes the home improvement fraud prevention act relating to the responsibilities of home improvement contractors and requiring home improvement contractors to register with the secretary of state.

NY A01783

Establishes the home improvement fraud prevention act relating to the responsibilities of home improvement contractors and requiring home improvement contractors to register with the secretary of state.

NY SB1324

Further providing for definitions, for registration of contractors, for procedures for registration as a contractor, for application fees, for home improvement contracts and for home improvement fraud; and making a repeal.

NY HB1351

Home Improvement Contractors - Disaster Mitigation Services and Fraudulent Insurance Acts - Regulation and Prohibition

NY HB121

Provides prohibitions relative to public adjusters and home improvement contractors

NY HB2923

Establishes the "Homestead Improvement Property Tax Relief Act" exempting qualifying improvements to a homestead from real property taxation

NY SB929

Home Improvement Contractors - Disaster Mitigation Services - Regulation and Prohibition

NY S2162

Clarifies licensure requirements of home improvement and home elevation contractors.

NY A3261

Clarifies licensure requirements of home improvement and home elevation contractors.

NY HB140

Provides relative to residential home improvements

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