SB 6694 - DIGEST

Finds that it is necessary to: (1) Clearly establish that prime contractors have a duty to properly manage funds received from homeowners that are intended for suppliers, subcontractors, and others, and to hold those who fail in this duty personally responsible for such financial mismanagement;

(2) Reduce the exposure of homeowners to lien liability, particularly when contractors fail to pay suppliers and subcontractors as promised;

(3) Clarify the right of homeowners to require that prime contractors maintain deposits and other similar payments in a trust account for the homeowner, when the homeowner elects to do so; and

(4) Increase opportunities for homeowners to become better educated about ways to protect themselves from financial mismanagement by those few contractors who are unable or unwilling to meet the financial management standards set by the vast majority of residential contractors in this state.