Rep. Powdrell-Culbert Introduces Bill to Protect Small Businesses and Homeowners

By House GOP Legislative Office

SANTA FE – Ensuring subcontractors are paid for their work and protecting homeowners from frivolous liens is the goal of House Bill 344 (HB 344) filed by Rep. Jane Powdrell-Culbert (R-Sandoval.)  HB 344 would make it a felony for any contractor not to pay a subcontractor who successfully fulfils his or her contractual agreement. Currently, when a subcontractor is not paid for their work, their only avenue for compensation is to place a lien on the property of a homeowner, even if that homeowner fully paid the contractor.

 

“The current situation isn’t fair to subcontractors or homeowners,” said Rep. Powdrell-Culbert. “So we’re working to make sure that contractors who don’t pay subcontractor for work and the homeowner is not penalized for work which they have paid.”

 

Under HB 344, the higher amount a contractor knowingly fails to pay the more severe the felony, including:

 

• Failure to pay a contract of less than $2,500 is guilty of a 4^th degree felony.
• Failure to pay a contract more than $2,500 but less than $20,000 is guilty of a 3^th degree felony.
• Failure to pay a contract more than $20,000 is guilty of a 2^th degree felony.