A bill introduced Tuesday in the Montana House aims to protect consumers from so called ‘storm chasing’ contractors, who scam homeowners after a natural disaster.
The bill sponsored by Dennis Lenz, a Republican from Billings, would change how contractors interact with people whose home has been damaged by a storm.
On Monday, Lenz told the House Business and Labor Committee that some contractors take advantage of homeowners desperate for a fix, overcharging and doing shoddy work.
“We’re providing a structure in which every contractor is going to operate in. This is going to define what a good contractor looks like, these will be the expectations and a bad actor, a bad contractor is not going to meet the expectations in this bill,” Lenz says.
The proposed legislation would require contractors to disclose more information about their business when entering into a contract with a homeowner. It would also allow the homeowner to cancel the contract with five days of it being signed, without financial penalty.
Representative Lenz, homeowners and insurance company representatives testified in support of the bill, saying it would help protect people’s investments in their homes.
But, Abigale St. Lawrence with Montana’s Building Industry Association says this legislation would add regulations that would hurt honest contractors just looking to find work.
“And what I can tell you from my guys who are trying to do right, by not only our profession but by consumers we serve, House Bill 222 creates some problems,” St. Lawrence says.
St. Lawrence says contractors could lose money if they starting buying building materials and a homeowner decides to cancel their work contract.
The committee will likely vote on the bill later this week.
