Raised Bill No. 5376 Summary

• Effective October 1, 2024, contractors are prohibited from requiring owners to deposit more than one-half of the total contract price upfront as a precondition to performing home improvements.

• Contractors are banned from advertising or offering allowances, compensation, discounts, or rebates to cover any portion of an owner's insurance deductible as an inducement to enter into a contract.

• Contractors cannot induce sales of goods or services by offering allowances, bonuses, coupons, credits, discounts, gifts, referral fees, or trade-in payments to owners.

• Home improvement contracts must include expanded disclosure requirements including contractor's full legal name, business and trade names, complete contact information, insurance coverage details, and payment method options (cash, check, or credit card).

• Owners gain the right to cancel contracts within three business days of signing or receiving notice of insurance claim denial, whichever is later, with contractors required to return all payments minus reasonable costs of work already performed.