New York S 5248: Establishes the home improvement fraud prevention act

Bill Text

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 Speaker Carl E. Heastie

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S05248 Summary:

BILL NOS05248 

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SAME ASSAME AS A01783

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SPONSORMAY

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COSPNSR

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MLTSPNSR

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Amd §§770, 771, 771-a & 772, add §§771-c - 771-g, Gen Bus L; amd §155.05, Pen L; amd §125, Gen Muni L; add
§99-a, Exec L

&nbsp

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.

Go to top S05248 Actions:

BILL NOS05248 

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02/20/2025REFERRED TO CONSUMER PROTECTION

01/07/2026REFERRED TO CONSUMER PROTECTION

05/20/20261ST REPORT CAL.1295

05/21/20262ND REPORT CAL.

05/26/2026ADVANCED TO THIRD READING 

06/05/2026COMMITTED TO RULES

Go to topS05248 Committee&nbspVotes:

Go to topS05248 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS05248 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 5248

 2025-2026 Regular Sessions

 IN SENATE

 February 20, 2025
 ___________

 Introduced by Sen. MAY -- read twice and ordered printed, and when
 printed to be committed to the Committee on Consumer Protection

 AN ACT to amend the general business law, the penal law, the general
 municipal law and the executive law, in relation to the registration
 of home improvement contractors

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. This act shall be known and may be cited as the "home
 2 improvement fraud prevention act".
 3 § 2. Subdivision 7 of section 770 of the general business law, as
 4 added by chapter 32 of the laws of 1989, is amended and a new subdivi-
 5 sion 9 is added to read as follows:
 6 7. "Custom home" means a new single family residence or a two family
 7 dwelling designed for and occupied exclusively by two families living
 8 separately to be constructed on premises owned of record by the purchas-
 9 er at the time of contract, provided that such residence is intended for
 10 residential occupancy by such purchaser [and the contract of sale is
 11 entered into on or after the first day of March, nineteen hundred nine-
 12 ty].
 13 9. "Subcontractor" means a person who enters into a contract with a
 14 home improvement contractor or with a subcontractor of a home improve-
 15 ment contractor to furnish home improvement services to the owner's real
 16 property and has no direct contract with the owner.
 17 § 3. Paragraph (a) of subdivision 1 of section 771 of the general
 18 business law, as added by chapter 421 of the laws of 1987, is amended to
 19 read as follows:
 20 (a) The name, address, telephone number, registration number from the
 21 department of state, and license number, if applicable, of the contrac-
 22 tor.
 23 § 4. Section 771-a of the general business law, as added by chapter
 24 626 of the laws of 2002, is amended to read as follows:

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD04650-01-5

 S. 5248 2

 1 § 771-a. Responsibilities of home improvement contractors. No home
 2 improvement contractor shall engage in any activity, transaction, or
 3 course of business or pay or receive any fee, payment, money, or other
 4 thing of value in connection with the financing of a home improvement
 5 contract without fully disclosing such activity, transaction, or course
 6 of business and any fees, payment, or other thing of value paid or to be
 7 paid in connection therewith, [and] without having obtained the agree-
 8 ment in writing from all parties to the transaction to such activity and
 9 the payment therefor, and without obtaining a certificate of registra-
 10 tion from the department of state.
 11 § 5. The general business law is amended by adding five new sections
 12 771-c, 771-d, 771-e, 771-f and 771-g to read as follows:
 13 § 771-c. Responsibilities of home improvement contractors to obtain
 14 certificates of registration. 1. It shall be unlawful for a person to
 15 solicit, canvass, sell, perform, or obtain a home improvement contract
 16 as a contractor from an owner without first obtaining a certificate of
 17 registration issued by the secretary under the provisions of this arti-
 18 cle.
 19 2. Any perso