Multiple states are advancing legislation to strengthen penalties for contractor fraud following active disaster seasons that have seen an increase in fraudulent operators targeting vulnerable homeowners in the aftermath of storms, floods, and wildfires.
Proposed legislation in several states would increase criminal penalties for contractor fraud, create new civil remedies for homeowners who are defrauded, and establish contractor registration requirements that make it easier to identify and prosecute fraudulent operators.
For legitimate restoration contractors, stronger contractor fraud legislation is generally welcome, as it helps to level the playing field by making it harder for fraudulent operators to undercut legitimate businesses on price.
Industry organizations including the Restoration Industry Association have been advocating for stronger contractor fraud legislation at the state level, recognizing that fraud undermines public trust in the restoration industry and harms legitimate businesses.
The legislative push against contractor fraud reflects growing public awareness of the problem, driven in part by media coverage of high-profile fraud cases following major disasters.
