Bill to protect natural disaster survivors from unscrupulous contractors passes Texas House

Rep. Geanie Morrison (R-Victoria) filed HB 2856 to protect survivors of natural disasters from scams by contractors who pressured them to provide upfront payments for contracting work that was never performed.

HB 2856 creates an offense for a disaster remediation contractor who unlawfully requires a person to make a full or partial payment under a contract before the contractor begins work or requires that the amount of any partial payment under the contract exceed an amount reasonably proportionate to the work performed, including any materials delivered.

The bill establishes that an offense is a Class B misdemeanor if the offense was committed without the intent to defraud the person contracting for disaster remediation services or a felony of the third degree if the offense was committed with that intent.

The bill passed the House on a unanimous vote, moved to the Senate, and has been referred to the Senate Business and Commerce Committee.

Contact Jeff Huffman, Texas Credit Union Association, at 469-385-6488 or jhuffman@txcua.coop for more information.