SB 296
Creates provisions related to the statewide licensing of home improvement contractors and salespersons
LR Number:
Last Action:
2/23/2023 - Second Read and Referred S Governmental Accountability Committee
Journal Page:
Effective Date:
August 28, 2023

Current Bill Summary

SB 296 - This act establishes the Missouri Board of Home Improvement Contractors. The Board shall consist of seven members chosen by the Governor with the advice and consent of the Senate for terms of five years.

The Board shall have powers to administer the licensure of home improvement contractors and salespersons, as provided in the act, and to investigate violations of the act and other laws relating to a home improvement business. The Board shall educate the public on certain provisions of the act at least semiannually. (Section 324.1202)

Under this act, no contractor or salesperson shall solicit, canvass, sell, perform, or obtain a home improvement contract without a license. Such license shall not authorize any type of work or business requiring another type of license under state or local law. The act exempts certain individuals from obtaining a license, including employees of contractors, certain licensed professionals as described in the act, individuals working under a contract made prior to the effective date of the act, and individuals working under a contract with an aggregate price under $500. (Section 324.1204)

This act establishes the Home Improvement Contractor Fund for the collection of money as provided in the act. The application and renewal fee for a home improvement contractor license shall be $50, while the fee for a home improvement salesperson's license shall be $25. A home improvement contractor must also pay an additional fee of $200 or file a surety bond as described in the act. (Section 324.1206)

Licenses issued under the act shall not be assignable or transferable and shall be conspicuously posted in the licensee's place of business. Licensees shall notify the board within 10 days of any change in ownership, management, address, or trade name. Duplicate licenses may be issued for lost or mutilated licenses. (Section 324.1208)

The act provides procedures for applications for contractors and salespersons. Applicants and certain agents and principals of business associations shall be fingerprinted for criminal backgrounds checks. Applications for salesperson licenses must contain sufficient information, as prescribed by the Board, to verify compliance with applicable lien laws. (Section 324.1210)

The Board may refuse to issue a license or to renew or reinstate a license for one or more of reasons described in the act related to the license holder's or applicant's trustworthiness, competence, and duties. The Board shall give notice of the decision in writing and may file a complaint with the Administrative Hearing Commission. If the Commission finds that the grounds for such a complaint are met, the Board may impose censure, probation, suspension, or revocation of a license and may order payment of an applicable civil penalty. (Section 324.1212)

The act prohibits certain acts by contractors and salespersons, including materially deviating from the terms of a home improvement contract, fraudulent or deceptive conduct as described in the act related to such contracts and advertisements, acting as an agent to secure financing for a homeowner without complying with certain federal regulations, violating applicable statutes and regulations as described in the act, offering compensation to procure a home improvement contract, failing to perform work in a skillful and competent manner, writing into a contract a waiver of an owner's rights under the act, and receiving certain payments as described in the act.

A contractor or salesperson shall not write a waiver of an owner's rights under the act into a home improvement contract, and no act, agreement, or statement of an owner shall constitute such a waiver. (Sections 324.1214 and 324.1216)

Licensees shall give notice to owners that a home improvement contract may be cancelled until midnight on the fifth day after either making such contract or the owner receives such notice, whichever occurs later. The act provides the requirements for such cancellation to be effective. Notice shall not be required, and the cancellation procedures shall not apply, for home improvement contracts involving a bona fide emergency as described in the act. (Section 324.1218)

Home improvement contractors, salespersons, and their agents and employees shall affirmatively disclose that owners are entitled to an estimate in writing upon request, subject to a reasonable fee. (Section 324.1220)

Home improvement contractors, canvassers, and salespersons who knowingly makes false or fraudulent representations or statements as to any sale or property shall be guilty of a Class A misdemeanor. (Section 324.1222)

Any person who owns, conducts, or operates a home improvement business without a license or who knowingly violates any provision of the act, other than certain fraudulent statements provided in the act, shall be guilty of a Class B misdemeanor for each such violation.

A person shall be liable for a penalty up to $1,000 for any violation of the act, regardless of whether the violation was knowing.

The Attorney General may bring an action to restrain or prevent any violation of the act pursuant to procedures described in the act.

The Board may order a contractor to pay an owner an amount up to three times damages for any violation of the act found to be willful or to have posed a threat to the owner's health or safety. (Sections 324.1226 and 324.1238)

Home improvement contracts shall be in writing and shall contain information as described in the act. The contract shall include a notice that the property may be subject to a mechanic's lien by an unpaid contractor, subcontractor, or materialman. The contract shall also include certain notices, procedures, and restrictions, as described in the act, for payments made prior to contract completion and progress payments. (Section 324.1228)

Contractors shall fully disclose all activities, transactions, and payments related to financing a home improvement contract to the owner and shall secure an agreement in writing from all parties to the transaction. (Section 324.1230)

This act additionally provides that home improvement contracts for roofing, gutter, downspout, and siding services shall contain certain insurance information.

The act establishes certain rules and procedures related to casualty and property insurance coverage for roofing contracts, as well as other requirements specific to roofing contractors. (Section 324.1232)

Owners induced into a home improvement contract by false or fraudulent written representations or statements may recover from a contractor up to $500, damages, and attorney's fees. A contractor may recover reasonable attorney's fees if the suit is found to lack arguable legal merit. (Section 324.1234)

Contractors may be liable for civil penalties up to $1,000 for any violation of the act.

Contractors who fail to comply with the requirements provided for in the act related to payments received prior to performance or to provide a written contract in substantial compliance with the act shall be subject to a penalty of up to the greater of $250 or 5% of the aggregate contract price up to $2,500. Penalties may be limited to $100 for such violations that were unintentional and resulted from a bona fide error. Courts shall consider factors as described in the act for assessing penalties for multiple violations. (Section 324.1236)

No home improvement contractor shall be exempted from existing regulations. However, after the effective date of the act, no political subdivision may enact a local law inconsistent with the provisions of the act. (Section 324.1240)

This act is substantially similar to SB 942 (2022) and SB 364 (2021).



No Amendments Found.