A BILL TO BE ENTITLED
AN ACT to create the criminal offense of Home improvement fraud.
The General Assembly of North Carolina enacts:
SECTION 1.  Article 19 of Chapter 14 of the General Statutes is amended by adding a new section to read:
"§ 14‑104.1.  Home improvement fraud; penalties.
(a)	The following definitions apply in this section:
(1)	Contractor. – A person who has agreed to perform any home improvement in exchange for compensation, including any agent or employee of the person. The term includes a subcontractor who has agreed to perform any home improvement. The term does not include a person who is licensed as a general contractor under Article 1 of Chapter 87 of the General Statutes.
(2)	Home improvement. – Any alteration, repair, modification, or other improvement to any dwelling house or to any structure within the curtilage of a dwelling house, and any other structure designed to house or secure within it any activity or property.
(b)	Home improvement fraud is committed when a contractor knowingly engages in any of the following actions:
(1)	The use by a contractor of any false pretense whatsoever, whether the false pretense is of a past or subsisting fact or of a future fulfillment or event, with the intent to cause any other person to enter into a home improvement contract.
(2)	The damaging of any property of any person by a contractor with the intent to induce that person to enter into a home improvement contract.
(c)	A person convicted of home improvement fraud shall be punished as follows:
(1)	For a first offense a person is guilty of a Class H felony.
(2)	For a second offense a person is guilty of a Class F felony.
(3)	For a third or subsequent offense a person is guilty of a Class C felony.
(d)	In addition to the penalties imposed under subsection (c) of this section, the court, in its discretion, may also order restitution."
SECTION 2.  This act becomes effective December 1, 2009, and applies to offenses committed on or after that date.