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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2013 - 2014 Regular Session


Posted: March 25, 2014 03:03 PM
From: Representative Jim Cox
To: All House members
Subject: Improving the Home Improvement Consumer Protection Act
In the near future, I plan on introducing legislation that will offer greater flexibility to contractors and homeowners in the completion of routine home improvement projects.
Under current law, any home improvement project performed by a registered contractor with a total cash price exceeding $500 is subject to the contractual provisions of the Home Improvement Consumer Protection Act (HICPA). This low monetary threshold requires contractors to draft legally-binding contracts in accordance with HICPA for projects that are often minor or routine in nature such as replacement of hot water heaters, etc.

Unfortunately, an error in drafting the contract can render the entire agreement invalid and unenforceable. These stringent contractual requirements subject the contractor to costly legal fees, diminishing the contractor's profitability of accepting minor projects.
These contractors, which are often small, family-owned businesses, frequently have little choice but to pass these legal fees on to the consumer in the form of higher prices. The lengthy contract process can also negatively impact the timeline in which the project can be completed.
My legislation will amend HICPA to raise the monetary threshold for home improvement work from $500 to $2,500. This new threshold will maintain important consumer protections for projects that are larger or more complex in scope, while allowing minor projects to be completed in a more timely, cost-efficient manner.
Please join me in protecting our small businesses by co-sponsoring this important legislation.


Introduced as HB2277