HB 26-1245

House Bill 26-1245, also known as "Theft by Contractor," makes it illegal for contractors to misuse advance payments from customers on construction projects. Contractors must now provide a written disclosure explaining how the advance payment will be used and when expenses are expected to occur before they can receive any money upfront. This bill protects homeowners and other clients from contractors who might use their money for unrelated purposes, causing delays or abandonment of the project. Since it has been signed into law, this legislation is now in effect and contractors must comply with these new requirements.

Official Summary

The bill specifies that a person commits theft when the person knowingly uses an advance payment for a construction project for an unrelated purpose that results in the delay, end, abandonment, or material nonperformance of the construction project.The bill requires that before a contractor can take an advance payment from a customer, a contractor shall provide the customer with a written disclosure identifying the intended use of the advance payment, the anticipated timing of expenses identified in the disclosure, and the project's anticipated start date.(Note: This summary applies to this bill as introduced.)

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