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Attorney general backs builder-registration bill to curb contractor fraud; industry seeks changes

Commerce · January 21, 2026

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Summary

SB 523 would create a registration and oversight mechanism for residential builders and contractors. The attorney general urged action citing widespread contractor fraud and a recent multimillion-dollar case; builders and trade groups warned of scope creep and potential labor impacts and asked for narrower, refined language.

Senate Bill 523 would establish a registration system for residential builders and contractors, overseen by the Department of Labor through a builder registration board. Sponsor Senator Ruth Ward said the industry itself requested a registration approach to identify bad actors and provide consumer protections without full licensure.

The attorney general's office testified in support, describing frequent contractor complaints and a recent high-profile criminal case in which a contractor was ordered to pay roughly $1.5 million in restitution and was sentenced to prison. The AG's office argued registration would provide a visible public record and could allow earlier disciplinary action that might interrupt serial fraud.

Industry groups—including the New Hampshire Home Builders Association and Associated Builders and Contractors—expressed conditional support for consumer protection but warned the bill as written could sweep in commercial contractors, add costs that slow housing production, and create mission creep. They urged clearer scope, registration thresholds, and carve-outs for certain trades.

The Department of Labor said it is neutral on the bill but raised questions about administrative capacity, start‑up costs, and whether licensure or registration is the better long-term fit. Builders said registration could be implemented with low burdens and suggested integrated public-facing tools to show registration status and complaints.

Committee members heard detailed operational and policy questions and expect amendments to narrow scope and clarify implementation before further action.