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        PRIOR PRINTER'S NO. 1328                      PRINTER'S NO. 1626

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1000 Session of 2005


        INTRODUCED BY TOMLINSON, CONTI, WONDERLING, BOSCOLA, PILEGGI,
           STACK, ERICKSON, LAVALLE AND FONTANA, NOVEMBER 14, 2005

        AS AMENDED ON SECOND CONSIDERATION, MARCH 21, 2006

                                     AN ACT

     1  Providing for the regulation of home improvement contracts and
     2     for the registration of certain contractors; prohibiting
     3     certain acts; and providing for penalties.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6  Section 1.  Short title.
     7     This act shall be known and may be cited as the Home
     8  Improvement Consumer Protection Act.
     9  Section 2.  Definitions.
    10     The following words and phrases when used in this act shall
    11  have the meanings given to them in this section unless the
    12  context clearly indicates otherwise:
    13     "Bureau."  The Bureau of Consumer Protection in the Office of
    14  Attorney General.
    15     "Contractor."  Any person, including a subcontractor or        <--
    16  employee of another contractor, who owns and operates a home
    17  improvement business or who undertakes, offers to undertake or
    18  agrees to perform any home improvement. The term does not


     1  include a person for whom the total cash value of all of that
     2  person's home improvements is less than $5,000 during any period
     3  of 12 consecutive months.
     4     "Home improvement."
     5         (1)  The term includes all of the following done in
     6     connection with land or a portion of the land adjacent to a
     7     private residence or a building or a portion of the building
     8     which is used or designed to be used as a private residence
     9     for which the total cash price of all work agreed upon
    10     between the contractor and owner is more than $200 $500.       <--
    11             (i)  Repair, replacement, remodeling, demolition,
    12         removal, renovation, installation, alteration,
    13         conversion, modernization, improvement, rehabilitation or
    14         sandblasting.
    15             (ii)  Construction, replacement, installation or
    16         improvement of driveways, swimming pools, pool houses,
    17         porches, garages, roofs, siding, insulation, solar energy
    18         systems, security systems, flooring, patios, fences,
    19         gazebos, sheds, cabanas, landscaping of a type that is
    20         not excluded under paragraph (2)(vi), painting, doors and
    21         windows and waterproofing.
    22             (iii)  Without regard to affixation, the installation
    23         of central heating or air conditioning or storm windows
    24         or awnings.
    25             (iv)  The conversion of existing commercial
    26         structures into residential or noncommercial structures.
    27         (2)  The term does not include:
    28             (i)  The construction of a new home.
    29             (ii)  The sale of goods or materials by a seller who
    30         neither arranges to nor performs, directly or indirectly,
    20050S1000B1626                  - 2 -     

     1         any work or labor in connection with the installation or
     2         application of the goods or materials.
     3             (iii)  The sale of services furnished for commercial
     4         or business use or for resale, if the service takes place
     5         somewhere other than at a private residence.
     6             (iv)  The sale of appliances, including stoves,
     7         refrigerators, freezers, room air conditioners and others
     8         which are designed for and are easily removable from the
     9         premises without material alteration. the cost of which    <--
    10         is more than $200.
    11             (v)  Any work performed without compensation by the
    12         owner of the owner's private residence or residential
    13         rental property.
    14             (vi)  Any work performed by a landscaper certified by
    15         the Department of Agriculture under the act of December
    16         16, 1992 (P.L.1228, No.162), known as the Plant Pest Act,
    17         except to the extent that the work involves any of the
    18         following at a private residence:
    19                 (A)  The construction, replacement, installation
    20             or improvement of buildings, driveways, swimming
    21             pools, porches, garages, roofs, siding, insulation,
    22             solar energy systems, security systems, flooring,
    23             patios, nondecorative fences, doors, lighting
    24             systems, concrete walkways and windows.
    25                 (B)  The placement of retaining walls, fountains
    26             or drainage systems.
    27             (VII)  EMERGENCY WORK PURSUANT TO SECTION 7 OF THE     <--
    28         ACT OF DECEMBER 17, 1968 (P.L.1224, NO.387), KNOWN AS THE
    29         UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION LAW.
    30     "Home improvement contract."  An agreement between a
    20050S1000B1626                  - 3 -     

     1  contractor, subcontractor or salesperson and an owner for the
     2  performance of a home improvement which includes all agreements
     3  for labor, services and materials to be furnished and performed
     4  under the contract.
     5     "Owner."
     6         (1)  The term includes any of the following:
     7             (i)  An owner of a private residence, including any
     8         person authorized by an owner to act on the owner's
     9         behalf to order, contract for or purchase a home
    10         improvement.
    11             (ii)  A person entitled to the performance of the
    12         work of a contractor pursuant to a home improvement
    13         contract.
    14         (2)  An owner of a private residence shall not be
    15     required to reside in the residence to be deemed an owner
    16     under this act.
    17         (3)  A person who owns three or more private residences
    18     in this Commonwealth shall not be deemed an owner except with
    19     respect to the person's primary residence or the part of the
    20     building which houses the primary residence of the owner.
    21     "Person."  An individual, partnership, limited partnership,
    22  limited liability company, joint venture or corporation.
    23     "Private residence."  Any of the following:
    24         (1)  A single family dwelling.
    25         (2)  A multifamily dwelling consisting of not more than
    26     three units.
    27         (3)  A single unit located within any multifamily
    28     dwelling, including condominiums and co-op units.
    29     "Special order material."  Materials that, prior to their      <--
    30  delivery to the worksite, meet all of the following
    20050S1000B1626                  - 4 -     

     1  requirements:
     2         (1)  Require processing by a manufacturer to meet the
     3     designated specifications of a particular home improvement
     4     project.
     5         (2)  Cannot be returned to the supplier for a refund or
     6     credit because of features that limit their use to the
     7     particular home improvement project.
     8         (3)  Have no value in the performance of another home
     9     improvement project other than the particular home
    10     improvement project they were procured for.
    11  ANY MATERIAL, PRODUCT OR EQUIPMENT THAT IS NOT A STOCK ITEM AND   <--
    12  MUST BE SPECIALLY ORDERED FROM THE FACTORY OR DISTRIBUTOR AND
    13  WHICH IS PRODUCED OR PROCESSED FOR THE CONTRACTOR FOR A SPECIFIC
    14  HOME IMPROVEMENT CONTRACT. SPECIAL ORDER MATERIALS ARE NOT
    15  RETURNABLE BY THE CONTRACTOR FOR A REFUND OR CREDIT AND HAVE NO
    16  USEFULNESS FOR OTHER HOME IMPROVEMENT CONTRACTS BECAUSE THEY ARE
    17  SPECIALLY ORDERED FOR A SPECIFIC HOME IMPROVEMENT CONTRACT.
    18     "Specifications."  The plans, detailed drawings, lists of
    19  materials, stated allowances or other methods customarily used
    20  in the home improvement industry as a whole to describe with
    21  particularity the work, workmanship, materials and quality of
    22  materials for each home improvement.
    23     "Tenant."  A person who has entered into a lease or other
    24  contractual arrangement with the owner.
    25  Section 3.  Registration of contractors.
    26     (a)  General rule.--No person shall hold himself out as a
    27  contractor nor shall a person perform any home improvement
    28  without first registering with the bureau as provided for in
    29  this act.
    30     (b)  Liability.--No business entity registered pursuant to
    20050S1000B1626                  - 5 -     

     1  this act shall be relieved of responsibility under this act for
     2  the conduct and acts of its agents, employees, officers or
     3  directors, nor shall any person be relieved of responsibility
     4  under this act by reason of his employment or relationship with
     5  such business entity.
     6     (c)  Public access to registration information.--The bureau
     7  shall maintain a toll-free telephone number from which a caller
     8  can obtain information as to whether a contractor is registered
     9  with the bureau pursuant to this act, AS WELL AS INFORMATION      <--
    10  THAT MAY BE OBTAINED ON THE BUREAU'S WEBSITE.
    11     (D)  CONFIDENTIALITY OF PERSONAL INFORMATION.--THE BUREAU
    12  SHALL CREATE A POLICY FOR THE DISCLOSURE OF PERSONAL INFORMATION
    13  TO THE PUBLIC. THE BUREAU MAY NOT DISCLOSE TO THE PUBLIC A
    14  CONTRACTOR'S SOCIAL SECURITY NUMBER.
    15     (d) (E)  Nongrant or renewal of license.--The Department of    <--
    16  Banking shall not grant or renew a license to any person
    17  registered, or required to be registered, as a home improvement
    18  contractor pursuant to any of the following:
    19         (1)  The act of December 12, 1980 (P.L.1179, No.219),
    20     known as the Secondary Mortgage Loan Act.
    21         (2)  The act of December 22, 1989 (P.L.687, No.90), known
    22     as the Mortgage Bankers and Brokers and Consumer Equity
    23     Protection Act.
    24  Section 4.  Procedures for registration as a contractor.
    25     (a)  Application.--A person shall apply to the bureau in
    26  writing, OR ELECTRONICALLY VIA A SECURE INTERNET CONNECTION, IF   <--
    27  PERMITTED BY THE BUREAU, on a form provided by the bureau. The
    28  application shall include the following information:
    29         (1)  For an individual applicant, the name, home address,
    30     home telephone number and driver's license identification
    20050S1000B1626                  - 6 -     

     1     number of the applicant, as well as the individual's business
     2     name, address and telephone number if different, and all
     3     prior business names and addresses of home improvement
     4     businesses.
     5         (2)  For a partnership applicant, the name, home address,
     6     home telephone number and driver's license identification
     7     number of each partner as well as the partnership name,
     8     address and telephone number.
     9         (3)  For a corporation, limited liability company or
    10     limited partnership applicant, the name, home address, home
    11     telephone number and driver's license identification number
    12     of each officer, each director or each individual holding
    13     greater than a 5% stake in the business, as well as the
    14     entity's business name, address and telephone number.
    15         (4)  For an out-of-State corporation, limited liability
    16     or limited partnership, the name and address of the entity's
    17     resident agent or registered office provider within this
    18     Commonwealth and any registration number or license number
    19     issued to the entity by its home state or political
    20     subdivision of such other state, if applicable.
    21         (5)  For a joint venture applicant, the name, address and
    22     telephone number of the joint venture, as well as the name,
    23     address and telephone number of each party to the joint
    24     venture. When the parties to a joint venture include business
    25     entities, the information required from such entities
    26     pursuant to paragraphs (2) and (3) shall also be provided.
    27         (6)  A complete description of the nature of the
    28     contracting business of the applicant.
    29         (7)  A statement whether:
    30             (i)  The individual or individuals making
    20050S1000B1626                  - 7 -     

     1         application, even if doing so as part of a business
     2         entity application, has ever been convicted of a criminal
     3         offense related to a home improvement transaction, fraud,
     4         theft, a crime of deception or a crime involving
     5         fraudulent business practices, as well as a statement
     6         whether the applicant has ever had a civil judgment
     7         entered against the applicant or businesses in which the
     8         applicant held an interest that was related to a home
     9         improvement transaction.
    10             (ii)  The applicant's certificate or the certificate
    11         of a business with which the person making application
    12         held an interest has ever been revoked or suspended
    13         pursuant to an order issued by a court of competent
    14         jurisdiction in this Commonwealth or any other state or
    15         political subdivision thereof AND, IF SO, THE CURRENT      <--
    16         STATUS OF THE LICENSE.
    17         (8)  Whether within the last ten years the applicant has
    18     ever been suspended or debarred from participating in any
    19     Federal, State or local program through which funding or
    20     other assistance is provided to consumers for home
    21     improvements.
    22     (b)  Reporting of multiple registrations or licensures.--Any
    23  registered contractor in this Commonwealth who is registered or
    24  licensed as a home improvement contractor in any other state, or
    25  political subdivision thereof, shall report this information to
    26  the bureau on the initial registration and biennial registration
    27  application. Any disciplinary action taken in such other
    28  jurisdiction shall be reported to the bureau on the initial
    29  registration application or, if such action occurred subsequent
    30  to submission of an initial application, on the biennial
    20050S1000B1626                  - 8 -     

     1  registration application or within 90 days of final disposition,
     2  whichever is sooner. Multiple registrations or licensures shall
     3  be noted by the bureau on the contractor's registration, and
     4  such state, or political subdivision thereof, shall be notified
     5  by the bureau of any disciplinary actions taken against such
     6  contractor in this Commonwealth.
     7  Section 5.  Application fees.
     8     Each application for a certificate for a home improvement
     9  contractor or renewal of that certificate shall be accompanied
    10  by a fee of $50. AFTER COMPLETION OF THE APPLICATION AND PAYMENT  <--
    11  OF THE FEE, THE BUREAU SHALL ISSUE THE HOME IMPROVEMENT
    12  CONTRACTOR A REGISTRATION CERTIFICATE IDENTIFYING THE NAME OF
    13  THE INDIVIDUAL CONTRACTOR, NAME AND ADDRESS OF THE BUSINESS AND
    14  A REGISTRATION NUMBER. Renewals shall be on a biennial basis.
    15  Section 6.  Home improvement contracts.
    16     (a)  Requirements.--No home improvement contract shall be
    17  valid or enforceable against an owner unless it:
    18         (1)  Is in writing and legible AND CONTAINS THE HOME       <--
    19     IMPROVEMENT CONTRACTOR REGISTRATION NUMBER OF THE PERFORMING
    20     CONTRACTOR.
    21         (2)  Is signed by all of the following:
    22             (i)  The owner, his agent or other contracted party.
    23             (ii)  The contractor or a salesperson on behalf of a
    24         contractor.
    25         (3)  Contains the entire agreement between the owner and
    26     the contractor, including attached copies of all required
    27     notices.
    28         (4)  Contains the date of the transaction.
    29         (5)  Contains the name, address and telephone number of
    30     the contractor. For the purposes of this paragraph, a post
    20050S1000B1626                  - 9 -     

     1     office box number alone shall not be considered an address.
     2         (6)  Contains the approximate starting date and
     3     completion date.
     4         (7)  Includes a description of the work to be performed,
     5     the materials to be used and a set of specifications that
     6     cannot be changed without a written change order signed by
     7     the owner and contractor.
     8         (8)  Includes the total sales price due under the
     9     contract.
    10         (9)  Includes the amount of down payment PLUS ANY AMOUNT   <--
    11     ADVANCED FOR THE PURCHASE OF SPECIAL ORDER MATERIALS.
    12         (10)  Includes the names, addresses and telephone numbers
    13     of all subcontractors on the project KNOWN AT THE DATE OF      <--
    14     SIGNING THE CONTRACT. For the purposes of this paragraph, a
    15     post office box number alone shall not be considered an
    16     address.
    17         (11)  Includes a statement that any holder of the          <--
    18     contract is subject to all claims and defenses which the
    19     owner could assert against the contractor and that recovery
    20     may not be more than the total contract price.
    21         (12) (11)  Includes proof of liability insurance covering  <--
    22     personal injury in an amount not less than $50,000 and
    23     insurance covering property damage caused by the work of a
    24     home improvement contractor in an amount not less than
    25     $50,000.
    26     (b)  Right of rescission.--Without regard to the location of
    27  the transaction, all home improvement contracts shall be subject
    28  to section 7 of the act of December 17, 1968 (P.L.1224, No.387),
    29  known as the Unfair Trade Practices and Consumer Protection Law.
    30  AN INDIVIDUAL SIGNING A HOME IMPROVEMENT CONTRACT, EXCEPT AS      <--
    20050S1000B1626                 - 10 -     

     1  PROVIDED IN THE EMERGENCY PROVISIONS OF SECTION 7 OF THE UNFAIR
     2  TRADE PRACTICES AND CONSUMER PROTECTION LAW, SHALL BE PERMITTED
     3  TO RESCIND THE CONTRACT WITHOUT PENALTY REGARDLESS OF WHERE THE
     4  CONTRACT WAS SIGNED, WITHIN THREE DAYS OF THE DATE OF SIGNING.
     5     (c)  Copy to be provided.--A contractor or salesperson shall
     6  provide and deliver to the owner, without charge, a completed
     7  copy of the home improvement contract at the time the contract
     8  is executed which shall contain all required notices.
     9     (d)  Voidable clauses.--If a home improvement contract
    10  contains any of the following clauses, the home improvement
    11  contract shall be voidable:
    12         (1)  A hold harmless clause.
    13         (2)  A waiver of Federal, State or local health, life,
    14     safety or building code requirements.
    15         (3)  A confession of judgment clause.
    16         (4)  A waiver of any right to a jury trial in any action
    17     brought by or against the owner.
    18         (5)  A mandatory arbitration clause.
    19         (6)  An assignment of or order for payment of wages or
    20     other compensation for services.
    21         (7)  A provision by which the owner agrees not to assert
    22     any claim or defense arising out of the contract.
    23         (8)  A provision that the contractor may be awarded
    24     attorney fees and costs.
    25         (9)  A clause by which the owner relieves the contractor
    26     from liability for acts committed by the contractor or the
    27     contractor's agents in the collection of any payments or in
    28     the repossession of any goods.
    29         (10)  A waiver of any rights provided under this act.
    30         (11)  A provision providing for the automatic or
    20050S1000B1626                 - 11 -     

     1     recurring renewal of any provisions of the agreement, unless:
     2             (i)  the contract establishes a procedure by which
     3         the consumer can choose not to renew the provision or
     4         provisions, thereby avoiding any new fees or charges, by
     5         providing written notice to the contractor via first
     6         class mail postmarked no later than three business days
     7         prior to any renewal;
     8             (ii)  such procedure is clearly and conspicuously
     9         disclosed in the agreement; and
    10             (iii)  the contract includes a provision requiring
    11         the contractor to notify the consumer of any automatic or
    12         recurring renewal, and the consumer's option to cancel
    13         such renewal, by mail not earlier than 20 days and not
    14         later than ten days prior to the date of any such
    15         renewal.
    16     (e)  Contractor's recovery right.--Nothing in this section
    17  shall preclude a contractor who has complied with subsection (a)
    18  from the recovery of payment for work performed based on the
    19  reasonable value of services which were requested by the owner
    20  if a court determines that it would be inequitable to deny such
    21  recovery.
    22  Section 7.  Home improvement fraud.
    23     (a)  Offense defined.--A person commits the offense of home
    24  improvement fraud if, with intent to defraud or injure anyone or
    25  with knowledge that he is facilitating a fraud or injury to be
    26  perpetrated by anyone, the actor:
    27         (1)  makes a false or misleading statement to induce,
    28     encourage or solicit a person to enter into any written or
    29     oral agreement for home improvement services or provision of
    30     home improvement materials or to justify an increase in the
    20050S1000B1626                 - 12 -     

     1     previously agreed upon price;
     2         (2)  receives any advance payment for performing home
     3     improvement services or providing home improvement materials
     4     AND fails to perform or provide such services or materials     <--
     5     within the date specified in the agreement CONTRACT taking     <--
     6     into account any force majeure or unforeseen labor strike
     7     that would extend the time frame or unless extended by
     8     agreement with the consumer and fails to return the payment
     9     received for such services or materials which were not
    10     provided by that date;
    11         (3)  while soliciting a person to enter into an agreement
    12     for home improvement services or materials, misrepresents or
    13     conceals the contractor's or salesperson's real name, the
    14     name of the contractor's business, the contractor's business
    15     address or any other identifying information;
    16         (4)  damages a person's property with the intent to
    17     induce, encourage or solicit that person to enter into a
    18     written or oral agreement for performing home improvement
    19     services or providing home improvement materials;
    20         (5)  misrepresents himself or another as an employee or
    21     agent of the Federal, Commonwealth or municipal government,
    22     any other governmental unit or any public utility, with the
    23     intent to cause a person to enter into any agreement for
    24     performing home improvement services or providing home
    25     improvement materials;
    26         (6)  alters a home improvement agreement, mortgage,
    27     promissory note or other document incident to performing or
    28     selling a home improvement without the consent of the
    29     consumer; or
    30         (7)  directly or indirectly publishes a false or
    20050S1000B1626                 - 13 -     

     1     deceptive advertisement in violation of State law governing
     2     advertising about home improvement.
     3     (b)  Grading.--
     4         (1)  A violation of subsection (a)(1), (3), (4), (5), (6)
     5     or (7) constitutes:
     6             (i)  a felony of the third degree if the amount
     7         involved exceeds $2,000; or
     8             (ii)  a misdemeanor of the first degree if the amount
     9         involved is $2,000 or less or if the amount involved
    10         cannot be satisfactorily ascertained.
    11         (2)  A violation of subsection (a)(2) constitutes:
    12             (i)  a felony of the third degree if the amount of
    13         the payment retained exceeds $2,000; or
    14             (ii)  a misdemeanor of the first degree if the amount
    15         of the payment retained is $2,000 or less or if the
    16         amount of the payment cannot be satisfactorily
    17         ascertained.
    18         (3)  Amounts involved pursuant to one scheme or course of
    19     conduct, whether involving one or more victims, may be
    20     aggregated in determining the grade of the offense pursuant
    21     to subsection (a).
    22         (4)  Where a person commits an offense under subsection
    23     (a) and the victim is 60 years of age or older, the grading
    24     of the offense shall be one grade higher than specified in
    25     paragraphs (1), (2) and (3). This paragraph shall not be
    26     applicable to persons whose sentence would be enhanced
    27     pursuant to paragraph (5).
    28         (5)  Notwithstanding any other provisions of this
    29     section, where a person commits a second or subsequent
    30     offense described in subsection (a), the offense will
    20050S1000B1626                 - 14 -     

     1     constitute a felony of the second degree regardless of the
     2     amount of money involved. For this paragraph to be
     3     applicable, the second or subsequent offense must have
     4     occurred after the first conviction. Paragraph (4) shall not
     5     be applicable to persons whose sentences would be enhanced
     6     pursuant to this paragraph.
     7         (6)  In addition to any other penalty imposed by this
     8     act, the court may revoke or suspend the certificate of
     9     registration issued under section 3. At the time of
    10     sentencing, the court shall state the reasons for such
    11     revocation or suspension.
    12     (c)  Jurisdiction.--
    13         (1)  The district attorneys of the several counties shall
    14     have the authority to investigate and to institute criminal
    15     proceedings for any violation of this section.
    16         (2)  In addition to the authority conferred upon the
    17     Attorney General by the act of October 15, 1980 (P.L.950,
    18     No.164), known as the Commonwealth Attorneys Act, the
    19     Attorney General shall have the authority to investigate and
    20     institute criminal proceedings for any violation of this
    21     section or any series of such violations involving more than
    22     one county of this Commonwealth or involving any county of
    23     this Commonwealth and another state. No person charged with a
    24     violation of this section by the Attorney General shall have
    25     standing to challenge the authority of the Attorney General
    26     to investigate or prosecute the case, and, if any such
    27     challenge is made, the challenge shall be dismissed and no
    28     relief shall be available in the courts of this Commonwealth
    29     to the person making the challenge.
    30  Section 8.  Prohibited acts.
    20050S1000B1626                 - 15 -     

     1     No person shall:
     2         (1)  Fail to register as required by this act.
     3         (2)  Fail to refund the amount paid for a home
     4     improvement within ten days of either the acceptance and
     5     execution of a return receipt for certified mail containing a
     6     written request for a refund or the refusal to accept the
     7     certified mail sent to the contractor's last known address if
     8     all of the following apply:
     9             (i)  No substantial portion of the contracted work
    10         has been performed at the time of the request.
    11             (ii)  More than 30 45 days have elapsed since the      <--
    12         starting date specified in the written contract.
    13         (3)  Accept a municipal certificate of occupancy or other
    14     proof that performance of a home improvement contract is
    15     complete or satisfactorily concluded with knowledge that the
    16     document or proof is false and the performance is incomplete.
    17         (4)  Utter, offer or use a completion certificate or
    18     other proof that a home improvement contract is complete or
    19     satisfactorily concluded when the person knows or has reason
    20     to know that the document or proof is false and is made to
    21     accomplish any of the following:
    22             (i)  Make or accept an assignment or negotiation of
    23         the right to receive payment under a home improvement
    24         contract.
    25             (ii)  Get or grant credit or a loan on security of
    26         the right to receive payment under a home improvement
    27         contract.
    28         (5)  Abandon or fail to perform, without justification,
    29     any home improvement contract or project engaged in or
    30     undertaken by a contractor. For the purposes of this
    20050S1000B1626                 - 16 -     

     1     paragraph, the term "justification" shall include nonpayment
     2     by the owner as required under the contract or any other
     3     violation of the contract by the owner.
     4         (6)  Deviate from or disregard plans or specifications,
     5     in any material respect, without a written change order dated
     6     and signed by both the contractor and owner, which contains
     7     the accompanying price changes for each deviation.
     8         (7)  Prepare, arrange, accept or participate in arranging
     9     a mortgage, promissory note or other evidence of debt for
    10     performing or selling a home improvement with knowledge that
    11     the evidence of debt states a greater monetary obligation
    12     than the consideration, including a time sale price, for a
    13     home improvement.
    14         (8)  Advertise or offer, by any means, to perform a home
    15     improvement if the person does not intend to do any of the
    16     following:
    17             (i)  Accept a home improvement contract.
    18             (ii)  Perform the home improvement.
    19             (iii)  Charge for the home improvement at the price
    20         advertised or offered.
    21         (9)  Demand or receive any payment for a home improvement
    22     before the home improvement contract is signed.
    23         (10)  For a home improvement contract in which the total
    24     price is more than $1,000, receive a deposit in excess of the  <--
    25     greater of any of the following:
    26             (i)  One-third of the home improvement contract
    27         price.
    28             (ii)  The cost of any special-order materials or
    29         merchandise purchased or to be purchased under the home
    30         improvement contract.:                                     <--
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     1             (I)  ONE-THIRD OF THE HOME IMPROVEMENT CONTRACT
     2         PRICE; OR
     3             (II)  ONE-QUARTER OF THE HOME IMPROVEMENT CONTRACT
     4         PRICE IN THE EVENT SPECIAL ORDER MATERIALS ARE INCLUDED.
     5         (11)  While acting as a salesperson, fail to account for
     6     or remit to the contractor whom the salesperson represents a
     7     payment received in connection with a home improvement.
     8  Section 9.  Unfair Trade Practices and Consumer Protection Law.
     9     A violation of any of the provisions of this act shall be
    10  deemed a violation of the act of December 17, 1968 (P.L.1224,
    11  No.387), known as the Unfair Trade Practices and Consumer
    12  Protection Law.
    13  Section 10.  Regulations.
    14     The bureau may adopt rules and regulations necessary to carry
    15  out the provisions of this act.
    16  SECTION 11.  PREEMPTION OF LOCAL REGISTRATION.                    <--
    17     REGISTRATION UNDER THIS ACT SHALL PRECLUDE ANY REQUIREMENT OF
    18  PAYMENT OF A FEE OR REGISTRATION OF ANY HOME IMPROVEMENT
    19  CONTRACTOR BY ANY POLITICAL SUBDIVISION. POLITICAL SUBDIVISIONS
    20  SHALL BE PERMITTED TO REQUIRE BUILDING PERMITS AND LOCAL
    21  ENFORCEMENT OF THE BUILDING CODE FOR THAT POLITICAL SUBDIVISION,
    22  FOR WHICH A REASONABLE FEE MAY BE CHARGED. THIS PROVISION DOES
    23  NOT AFFECT A MUNICIPALITY'S RESPONSIBILITIES OR AUTHORITY UNDER
    24  THE ACT OF NOVEMBER 10, 1999 (P.L.491, NO.45), KNOWN AS THE
    25  PENNSYLVANIA CONSTRUCTION CODE ACT, OR THE REQUIREMENTS UNDER
    26  SECTION 302(E) OF THE ACT OF JUNE 2, 1915 (P.L.736, NO.338),
    27  KNOWN AS THE WORKERS' COMPENSATION ACT, REGARDING WORKERS'
    28  COMPENSATION.
    29  Section 11 12.  Exemptions.                                       <--
    30     This act shall not apply to any of the following persons or
    20050S1000B1626                 - 18 -     

     1  organizations:
     2         (1)  The Commonwealth, or any of its political
     3     subdivisions.
     4         (2)  The Federal Government.
     5  Section 20.  Effective date.
     6     This act shall take effect in 180 days.
















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