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ACT SUMMARY 2007-2008

SUMMARY OF THE 2008 ACTS AND RESOLVES View the complete text of this act


ACT NO. 211

(H.783)

Frauds; home improvement fraud

This act requires a person who is convicted of home improvement fraud to register with the office of attorney general. A person who has been convicted of home improvement fraud would be permitted to work for another person or a corporation engaging in home improvement activities for compensation if the person notifies the individual or the company of his or her conviction and gives the office of attorney general his or her current address and phone number, the name and address of his or her employer, and the dates upon which he or she will begin work. A person convicted of home improvement fraud would be permitted to engage in home improvement work for compensation on his or her own if the person files a surety bond or irrevocable letter of credit with the office in an amount of not less than $50,000.00.

Any funds payable to a contractor or subcontractor under any contract for the construction, repair, or remodeling of any building or structure must be held in express trust by the contractor or subcontractor. The act defines “express trust” to mean funds that are paid by an owner in connection with an improvement to real property paid to a contractor or subcontractor. Upon receipt of such funds the contractor or subcontractor becomes the trustee of the express trust. The funds are not required to be held in a separate account by the contractor or subcontractor. The express trust shall have priority over any unsecured interest of a party seeking payment from the contractor or subcontractor for claims other than those that are due and owing by reason of the specific building project for which the trust was created.

Effective Date: July 1, 2008.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us