Bill Summary – FastDemocracy

BILL AS INTRODUCED                                                         S.291
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                                       S.291
 Introduced by Senator Perchlik
 Referred to Committee on
 Date:
 Subject: Crimes; consumer protection; land improvement fraud; timber
          trespass
 Statement of purpose of bill as introduced: This bill proposes to establish the
 crime of land improvement fraud. The bill also provides that if a person is
 convicted of the crime of land improvement fraud, the crime of timber
 trespass, or a civil judgement for timber trespass, the person would be required
 to post a surety bond or letter of credit with the Attorney General. In addition,
 the bill would provide that equipment used in the commission of land
 improvement fraud or timber trespass would be subject to seizure and
 forfeiture.
    An act relating to land improvement fraud and timber trespass
 It is hereby enacted by the General Assembly of the State of Vermont:
 Sec. 1. 13 V.S.A. § 2029 is amended to read:
 § 2029. HOME IMPROVEMENT AND LAND IMPROVEMENT FRAUD
    (a) As used in this section, “home:
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       (1) “Home improvement” includes means the fixing, replacing,
 remodeling, removing, renovation, alteration, conversion, improvement,
 demolition, or rehabilitation of or addition to any building or land, or any
 portion thereof, including roofs, that is used or designed to be used as a
 residence or dwelling unit. Home improvement shall include
       (2)(A) “Land improvement” means:
             (i) the construction, replacement, installation, paving, or
 improvement of driveways, roofs, and sidewalks, and trails, roads, or other
 landscape features;
             (ii) site work, including grading, excavation, landscape irrigation,
 site utility installation, site preparation, and other construction work that is not
 part of a building on a parcel;
             (iii) the limbing, pruning, and cutting, or removal of trees or
 shrubbery and other improvements to structures or upon land that is adjacent to
 a dwelling house; and
             (iv) forestry operations, as that term is defined in 10 V.S.A.
 § 2602, including the construction of trails, roads, and structures associated
 with forestry operations and the transportation off-site of trees, shrubs, or
 timber.
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          (B) “Land improvement” includes activities made in connection with
 a residence or dwelling or those activities not made in connection with a
 residence or dwelling.
    (b) A person commits the offense of home improvement or land
 improvement fraud when he or she the person enters into a contract or
 agreement, written or oral, for $500.00 $1,000.00 or more, with an owner for
 home improvement or land improvement, or into several contracts or
 agreements for $2,500.00 or more in the aggregate, with more than one owner
 for home improvement or land improvement, and he or she the person
 knowingly:
       (1)(A) fails to perform the contract or agreement, in whole or in part;
 and
          (B) when the owner requests performance or a refund of payment
 made, the person fails to either:
              (i) refund the payment; or
              (ii) make and comply with a definite plan for completion of the
 work that is agreed to by the owner;
       (2) misrepresents a material fact relating to the terms of the contract or
 agreement or to the condition of any portion of the property involved;
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       (3) uses or employs any unfair or deceptive act or practice in order to
 induce, encourage, or solicit such person to enter into any contract or
 agreement or to modify the terms of the original contract or agreement; or
       (4) when there is a declared state of emergency, charges for goods or
 services related to the emergency a price that exceeds two times the average
 price for the goods or services and the increase is not attributable to the
 additional costs incurred in connection with providing those goods or services.
    (c) Whenever a person is convicted of home improvement or land
 improvement fraud or of fraudulent acts related to home improvement or land
 improvement:
       (1) the person shall notify the Office of the Attorney General;
       (2) the court shall notify the Office of the Attorney General; and
       (3) the Office of the Attorney General shall place the person’s name on
 the Home Improvement and Land Improvement Fraud Registry.
    (d)(1) A person who violates subsection (b) of this section shall be
 imprisoned not more than two years or fined not more than $1,000.00, or both,
 if the loss to a single consumer is less than $1,000.00.
       (2) A person who is convicted of a second or subsequent violation of
 subdivision (1) of this subsection shall be imprisoned not more than three years
 or fined not more than $5,000.00, or both.
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         (3) A person who violates subsection (b) of this section shall be
 imprisoned not more than three years or fined not more than $5,000.00, or
 both, if:
             (A) the loss to a single consumer is $1,000.00 or more; or
             (B) the loss to more than one consumer is $2,500.00 or more in the
 aggregate.
         (4) A person who is convicted of a second or subsequent violation of
 subdivision (3) of this subsection shall be imprisoned not more than five years
 or fined not more than $10,000.00, or both.
         (5) A person who violates subsection (c) or (e) of this section shall be
 imprisoned for not more than two years or fined not more than $1,000.00, or
 both.
    (e) A person who is sentenced pursuant to subdivision (d)(2), (3), or (4) of
 this section, or convicted of fraudulent acts related to home improvement or
 land improvement, may engage in home improvement or land improvement
 activities for compensation only if:
         (1) the work is for a company or individual engaged in home
 improvement or land improvement activities, and the person first notifies the
 company or individual of the conviction and notifies the Office of the Attorney
 General of the person’s current address and telephone number; the name,
 address, and telephone number of the company or individual for whom the VT LEG #372897 v.2
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 person is going to work; and the date on which the person will start working
 for the company or individual; or
          (2) the person notifies the Office of the Attorney General of the intent to
 engage in home improvement or land improvement activities, and that the
 person has filed a surety bond or an irrevocable letter of credit with the Office
 in an amount of not less than $50,000.00, and pays on a regular basis all fees
 associated with maintaining such bond or letter of credit.
    (f) The Office of the Attorney General shall release the letter of credit at
 such time when:
          (1) any claims against the person relating to home improvement or land
 improvement fraud have been paid;
          (2) there are no pending actions or claims against the person for home
 improvement or land improvement fraud; and
          (3) the person has not been engaged in home improvement or land
 improvement activities for at least six years and has signed an affidavit so
 attesting.
    (g) The Attorney General or a law enforcement officer may, according to
 the requirements of 18 V.S.A. chapter 84, subchapter 2, seize from a person
 alleged to have committed home improvement or land improvement fraud
 under this section property that was used in the commission of the alleged
 fraud.
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    (h) A person convicted of home improvement or land improvement fraud is
 prohibited from contracting, directly or indirectly, with the State or any of its
 subdivisions for a period of up to three years following the date of the
 conviction, as determined by the Commissioner of Buildings and General
 Services.
 Sec. 2. 13 V.S.A. §§ 3605 and 3605a are added to read:
 § 3605. FINANCIAL SURETY REQUIRED FOR CONTINUED TIMBER;
          HARVESTING ACTIVITIES
    (a) A person who is convicted of timber trespass under section 3606a of
 this title, is subject to a civil judgement under section 3606 of this title, or is
 convicted of land improvement fraud under section 2029 of this title may
 engage in timber harvesting activities for compensation only if:
       (1) the work is for a company or individual engaged in timber
 harvesting activities, and the person first notifies the company or individual of
 the conviction or civil judgment and notifies the Office of the Attorney
 General of the person’s current address and telephone number; the name,
 address, and telephone number of the company or individual for whom the
 person is going to work; and the date on which the person will start working
 for the company or individual; or
       (2) the person notifies the Office of the Attorney General of the intent to
 engage in timber harvesting activities, has filed a surety bond or an irrevocable VT LEG #372897 v.2
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 letter of credit with the Office in an amount of not less than $50,000.00, and
 pays on a regular basis all fees associated with maintaining such bond or letter
 of credit.
    (b) The Office of the Attorney General shall release the letter of credit at
 such time when:
       (1) any claims against the person relating to timber harvesting activities
 or land improvement fraud have been paid;
       (2) there are no pending actions or claims against the person from the
 person’s timber harvesting activities or land improvement fraud; and
       (3) the person has not been engaged in timber harvesting activities for at
 least six years and has signed an affidavit so attesting.
 § 3605a. SEIZURE; FORFEITURE; DEBARMENT
    (a) The Attorney General or a law enforcement officer may, according to
 the requirements of 18 V.S.A. chapter 84, subchapter 2, seize from a person
 alleged to have committed timber trespass under this chapter property that was
 used in the commission of the alleged trespass.
    (b) A person convicted of timber trespass is prohibited from contracting,
 directly or indirectly, with the State or any of its subdivisions for a period of up
 to three years following the date of the conviction, as determined by the
 Commissioner of Buildings and General Services.
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 Sec. 3. 18 V.S.A. § 4241 is amended to read:
 § 4241. SCOPE
    (a) The following property shall be subject to this subchapter:
       (1) All regulated drugs that have been cultivated, manufactured,
 distributed, compounded, possessed, sold, prescribed, dispensed, or delivered
 in violation of subchapter 1 of this chapter.
                                       ***
       (7) Any property seized pursuant to 13 V.S.A. § 364.
       (8) Any property seized pursuant to 13 V.S.A. § 2029.
       (9) Any property seized pursuant to 13 V.S.A. § 3605a.
    (b) This subchapter shall apply to property for which forfeiture is sought in
 connection with:
       (1) a violation under chapter 84, subchapter 1 of this title that carries by
 law a maximum penalty of ten 10 years’ incarceration or greater; or
       (2) a violation of 13 V.S.A. § 364;
       (3) a violation of 13 V.S.A. § 2029; or
       (4) a violation of 13 V.S.A. § 3606a or a civil trespass action under 13
 V.S.A. § 3606.
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 Sec. 4. 18 V.S.A. § 4243 is amended to read:
 § 4243. JUDICIAL FORFEITURE PROCEDURE
    (a) Conviction or agreement required. An asset is subject to forfeiture by
 judicial determination under section 4241 of this title and, 13 V.S.A. § 364, 13
 V.S.A. § 2029, 13 V.S.A. § 3605a, or 13 V.S.A. § 3606 if:
       (1) a person is convicted of the criminal offense related to the action for
 forfeiture; or
       (2) a person enters into an agreement with the prosecutor under which
 he or she the person is not charged with a criminal offense related to the action
 for forfeiture; or
       (3) a person is subject to a civil action from trespass under 13 V.S.A.
 § 3606.
                                       ***
    (g) Service of petition. A copy of the petition shall be served on all persons
 named in the petition as provided for in Rule 4 of the Vermont Rules of Civil
 Procedure. In addition, the State shall cause notice of the petition to be
 published in a newspaper of general circulation in the State, as ordered by the
 court. The petition shall state:
       (1) the facts upon which the forfeiture is requested, including a
 description of the property subject to forfeiture, and, when applicable, the type
 and quantity of regulated drug involved; and VT LEG #372897 v.2
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       (2) the names of the apparent owner or owners, lienholders who have
 properly recorded their interests, and any other person appearing to have an
 interest; and, in the case of a conveyance, the name of the person holding title,
 the registered owner, and the make, model, and year of the conveyance.
 Sec. 5. 18 V.S.A. § 4248(b) is amended to read:
    (b) Those records shall be submitted to the State Treasurer and, when
 applicable to the property subject to forfeiture, shall be open to inspection by
 all federal and State departments and agencies charged with enforcement of
 federal and State drug control laws. Persons making final disposition or
 destruction of the property under court order shall report, under oath, to the
 court the exact circumstances of that disposition or destruction and a copy of
 that report shall be sent to the State Treasurer.
 Sec. 6. IMPLEMENTATION; CONDITION OF OPERATION
    (a) The requirement under 13 V.S.A. § 3605 that a person convicted of
 criminal timber trespass or assessed a civil penalty for timber trespass shall file
 a surety bond or letter of credit with the Office of the Attorney General shall,
 as a condition of continued or future operation, apply to all persons convicted
 of a criminal fine under 13 V.S.A. § 3606a or assessed civil liability under 13
 V.S.A. § 3606 prior to July 1, 2024 and for which the criminal fine or civil
 liability remains unpaid as of July 1, 2024.
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    (b) The Attorney General, after consultation with the Commissioner of
 Forests, Parks and Recreation, shall send notice of the requirement for a surety
 bond or letter of credit under subsection (a) of this section as a condition of
 continued operation to all persons in the State who, as of the effective date of
 this act, have failed criminal fines or civil damages for timber trespass under
 13 V.S.A. §§ 3606 and 3606a.
 Sec. 7. EFFECTIVE DATE
    This act shall take effect on July 1, 2024.
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Statutes affected: 
As Introduced: 13-2029, 18-4241, 18-4243, 18-4248(b), 18-4248