PRINTER'S NO. 857
No. 794 Session of 1999
INTRODUCED BY O'PAKE, BODACK, WAGNER, COSTA, KUKOVICH, MUSTO,
SCHWARTZ, WAUGH, HELFRICK, STAPLETON, KASUNIC AND MELLOW,
APRIL 12, 1999
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
APRIL 12, 1999
AN ACT
1 Providing for home repair fraud; and imposing penalties.
2 The General Assembly of the Commonwealth of Pennsylvania
3 hereby enacts as follows:
4 Section 1. Short title.
5 This act shall be known and may be cited as the Home Repair
6 Fraud Act.
7 Section 2. Definitions.
8 The following words and phrases when used in this act shall
9 have the meanings given to them in this section unless the
10 context clearly indicates otherwise:
11 "Home repair." The fixing, replacing, altering, converting,
12 modernizing, improving of or making of an addition to any real
13 property primarily designed or used as a residence. The term
14 shall include the construction, installation, replacement or
15 improvement of driveways, swimming pools, porches, roofs,
16 kitchens, chimneys, chimney liners, garages, fences, fallout
1 shelters, central air-conditioning, central heating, boilers,
2 furnaces, hot water heaters, electrical wiring, sewers, plumbing
3 fixtures, storm doors, storm windows, awnings and other
4 improvements to structures within the residence or upon the land
5 adjacent thereto. The term shall not include:
6 (1) The sale, installation, cleaning or repair of
7 carpets.
8 (2) The sale of goods or materials by a merchant who
9 does not directly or through a subsidiary perform any work or
10 labor in connection with the installation or application of
11 the goods or materials.
12 (3) The repair, installation, replacement or connection
13 of any home appliance, including, but not limited to,
14 disposals, refrigerators, ranges, garage door openers,
15 television antennas, washing machines, telephones or other
16 home appliances when the person replacing, installing,
17 repairing or connecting the home appliance is an employee or
18 agent of the merchant that sold the home appliance.
19 (4) Landscaping.
20 "Person." Any individual, partnership, corporation,
21 business, trust or other legal entity.
22 "Residence." A single or multiple family dwelling,
23 including, but not limited to, a single family home, apartment
24 building, condominium, duplex or townhouse which is used or
25 intended to be used by its occupants as their dwelling place.
26 Section 3. Construction.
27 Nothing in this act shall be construed to apply to original
28 construction of a single or a multiple family residence.
29 Section 4. Home repair fraud.
30 (a) Fraud described.--A person commits the offense of home
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1 repair fraud when he knowingly enters into an agreement or
2 contract, written or oral, with a person for home repair, and he
3 knowingly does any of the following:
4 (1) Misrepresents a material fact relating to the terms
5 of the contract or agreement or the preexisting or existing
6 condition of any portion of the property involved, or creates
7 or confirms another's impression which is false and which he
8 does not believe to be true, or promises performance which he
9 does not intend to perform or knows will not be performed.
10 (2) Uses or employs any deception, false pretense or
11 false promises in order to induce, encourage or solicit a
12 person to enter into any contract or agreement.
13 (3) Enters into an unconscionable agreement or contract,
14 requiring payment to the contractor of at least $4,000. A
15 contract is unconscionable within the meaning of this act
16 when an unreasonable difference exists between the value of
17 the services, materials and work to be performed and the
18 amount charged for those services, materials and work. For
19 purposes of this section, prima facie evidence shall exist
20 that the contract or agreement is unconscionable if the total
21 payment called for by the contract or agreement is in excess
22 of four times the fair market value for those services,
23 materials and work.
24 (4) Misrepresents or conceals either his real name, the
25 name of his business or his business address.
26 (b) Additional fraudulent circumstances.--A person commits
27 the offense of home repair fraud when he knowingly does any of
28 the following:
29 (1) Damages the property of a person with the intent to
30 enter into an agreement or contract for home repair.
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1 (2) Misrepresents himself or another to be an employee
2 or agent of any unit of the Federal, State or municipal
3 government or any other governmental unit, or an employee or
4 agent of any public utility, with the intent to cause a
5 person to enter into, with himself or another, any contract
6 or agreement for home repair.
7 Section 5. Aggravated home repair fraud.
8 (a) General rule.--A person commits the offense of
9 aggravated home repair fraud when he commits home repair fraud
10 against a person 60 years of age or older.
11 (b) Defense.--A defense to subsection (a) does not exist
12 merely because the accused believed the victim to be a person
13 under 60 years of age.
14 Section 6. Penalties.
15 A person who violates this act is subject to the following
16 penalties:
17 (1) Violation of section 4(a)(1) or (2) shall constitute
18 a felony of the third degree when the amount of the contract
19 or agreement is more than $1,000, a misdemeanor of the first
20 degree when the amount of the contract or agreement is $1,000
21 or less and a felony of the third degree for a second or
22 subsequent offense when the amount of the contract or
23 agreement is $1,000 or less. If two or more contracts or
24 agreements for home repair exceed an aggregate amount of
25 $1,000 or more and the contracts or agreements are entered
26 into with the same victim by one or more of the defendants as
27 part of or in furtherance of a common fraudulent scheme,
28 design or intention, the violation shall constitute a felony
29 of the third degree.
30 (2) Violation of section 4(a)(3) shall constitute a
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1 felony of the second degree when the amount of the contract
2 or agreement is more than $10,000 and a felony of the third
3 degree when the amount of the contract or agreement is
4 $10,000 or less.
5 (3) Violation of section 4(a)(4) shall constitute a
6 felony of the third degree when the amount of the contract or
7 agreement is more than $1,000, a misdemeanor of the first
8 degree when the amount of the contract or agreement is $1,000
9 or less and a felony of the third degree for a second or
10 subsequent offense when the amount of the contract or
11 agreement is $1,000 or less. If two or more contracts or
12 agreements for home repair exceed an aggregate amount of
13 $1,000 or more and the contracts or agreements are entered
14 into with the same victim by one or more of the defendants as
15 part of or in furtherance of a common fraudulent scheme,
16 design or intention, the violation shall constitute a felony
17 of the third degree.
18 (4) Violation of section 4(b)(1) or (2) shall constitute
19 a felony of the third degree.
20 (5) Aggravated violation of section 4(a)(1) or (2) shall
21 constitute a felony of the first degree when the amount of
22 the contract or agreement is more than $1,000, a felony of
23 the third degree when the amount of the contract or agreement
24 is $1,000 or less and a felony of the second degree for a
25 second or subsequent offense when the amount of the contract
26 or agreement is $1,000 or less. If two or more contracts or
27 agreements for home repair exceed an aggregate amount of
28 $1,000 or more and the contracts or agreements are entered
29 into with the same victim by one or more of the defendants as
30 part of or in furtherance of a common fraudulent scheme,
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1 design or intention, the violation shall constitute a felony
2 of the first degree.
3 (6) Aggravated violation of section 4(a)(3) shall
4 constitute a felony of the first degree when the amount of
5 the contract or agreement is more than $10,000 and a felony
6 of the second degree when the amount of the contract or
7 agreement is $10,000 or less.
8 (7) Aggravated violation of section 4(b)(1) or (2) shall
9 constitute a felony of the second degree.
10 Section 7. Repeals.
11 All acts and parts of acts are repealed insofar as they are
12 inconsistent with this act.
13 Section 8. Effective date.
14 This act shall take effect in 60 days.
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