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        PRIOR PRINTER'S NO. 135                       PRINTER'S NO. 1037

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 100 Session of 2007


        INTRODUCED BY TOMLINSON, WONDERLING, BOSCOLA, RAFFERTY,
           ERICKSON, LAVALLE, FERLO, BROWNE, PILEGGI, STACK AND LOGAN,
           MARCH 2, 2007

        SENATOR ARMSTRONG, APPROPRIATIONS, RE-REPORTED AS AMENDED,
           MAY 21, 2007

                                     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     "Arbitration clause."  A process in which a neutral
    14  arbitrator or panel of neutral arbitrators is engaged by the
    15  parties to settle a dispute between a contractor and an owner.
    16     "Bureau."  The Bureau of Consumer Protection in the Office of
    17  Attorney General.


     1     "Contractor."  Any person who owns and operates a home
     2  improvement business or who undertakes, offers to undertake or
     3  agrees to perform any home improvement. The term includes a
     4  subcontractor or independent contractor who has contracted with
     5  a home improvement retailer, regardless of the retailer's net
     6  worth, to provide home improvement services to the retailer's
     7  customers. The term does not include any of the following:
     8         (1)  A person for whom the total cash value of all of
     9     that person's home improvements is less than $5,000 during
    10     any period of 12 consecutive months.
    11         (2)  A home improvement retailer having a net worth of
    12     more than $50,000,000 or an employee of that retailer THAT     <--
    13     DOES NOT PERFORM HOME IMPROVEMENTS.
    14     "Home improvement."
    15         (1)  The term includes all of the following done in
    16     connection with land or a portion of the land adjacent to a
    17     private residence or a building or a portion of the building
    18     which is used or designed to be used as a private residence
    19     for which the total cash price of all work agreed upon
    20     between the contractor and owner is more than $500.
    21             (i)  Repair, replacement, remodeling, demolition,
    22         removal, renovation, installation, alteration,
    23         conversion, modernization, improvement, rehabilitation or
    24         sandblasting.
    25             (ii)  Construction, replacement, installation or
    26         improvement of driveways, swimming pools, pool houses,
    27         porches, garages, roofs, siding, insulation, solar energy
    28         systems, security systems, flooring, patios, fences,
    29         gazebos, sheds, cabanas, landscaping of a type that is
    30         not excluded under paragraph (2)(vi), painting, doors and
    20070S0100B1037                  - 2 -     

     1         windows and waterproofing.
     2             (iii)  Without regard to affixation, the installation
     3         of central heating or air conditioning or storm windows
     4         or awnings.
     5             (iv)  The conversion of existing commercial            <--
     6         structures into residential or noncommercial structures.
     7         (2)  The term does not include:
     8             (i)  The construction of a new home.
     9             (ii)  The sale of goods or materials by a seller who
    10         neither arranges to nor performs, directly or indirectly,
    11         any work or labor in connection with the installation or
    12         application of the goods or materials.
    13             (iii)  The sale of services furnished for commercial
    14         or business use or for resale, if the service takes place
    15         somewhere other than at a private residence.
    16             (iv)  The sale of appliances, including stoves,
    17         refrigerators, freezers, room air conditioners and others
    18         which are designed for and are easily removable from the
    19         premises without material alteration.
    20             (v)  Any work performed without compensation by the
    21         owner of the owner's private residence or residential
    22         rental property.
    23             (vi)  Any work performed by a landscaper certified by
    24         the Department of Agriculture under the act of December
    25         16, 1992 (P.L.1228, No.162), known as the Plant Pest Act,
    26         except to the extent that the work involves any of the
    27         following at a private residence:
    28                 (A)  The construction, replacement, installation
    29             or improvement of buildings, driveways, swimming
    30             pools, porches, garages, roofs, siding, insulation,
    20070S0100B1037                  - 3 -     

     1             solar energy systems, security systems, flooring,
     2             patios, nondecorative fences, doors, lighting
     3             systems, concrete walkways and windows.
     4                 (B)  The placement of retaining walls, fountains
     5             or drainage systems.
     6             (vii)  Emergency work pursuant to section 7 of the
     7         act of December 17, 1968 (P.L.1224, No.387), known as the
     8         Unfair Trade Practices and Consumer Protection Law.
     9             (VIII)  THE CONVERSION OF EXISTING COMMERCIAL          <--
    10         STRUCTURES INTO RESIDENTIAL OR NONCOMMERCIAL STRUCTURES.
    11     "Home improvement contract."  An agreement between a
    12  contractor, subcontractor or salesperson and an owner for the
    13  performance of a home improvement which includes all agreements
    14  for labor, services and materials to be furnished and performed
    15  under the contract.
    16     "Owner."
    17         (1)  The term includes any of the following:
    18             (i)  An owner of a private residence, including any
    19         person authorized by an owner to act on the owner's
    20         behalf to order, contract for or purchase a home
    21         improvement.
    22             (ii)  A person entitled to the performance of the
    23         work of a contractor pursuant to a home improvement
    24         contract.
    25         (2)  An owner of a private residence shall not be
    26     required to reside in the residence to be deemed an owner
    27     under this act.
    28         (3)  A person who owns three or more private residences
    29     in this Commonwealth shall not be deemed an owner except with
    30     respect to the person's primary residence or the part of the
    20070S0100B1037                  - 4 -     

     1     building which houses the primary residence of the owner.
     2     "Person."  An individual, partnership, limited partnership,
     3  limited liability company, joint venture or corporation.
     4     "Private residence."  Any of the following:
     5         (1)  A single family dwelling.
     6         (2)  A multifamily dwelling consisting of not more than
     7     three TWO units.                                               <--
     8         (3)  A single unit located within any multifamily
     9     dwelling, including condominiums and co-op units.
    10     "Special order material."  Any material, product or equipment
    11  that is not a stock item and must be specially ordered from the
    12  factory or distributor and which is produced or processed for
    13  the contractor for a specific home improvement contract. Special
    14  order materials are not returnable by the contractor for a
    15  refund or credit and have no usefulness for other home
    16  improvement contracts because they are specially ordered for a
    17  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)  Public access to registration information.--The bureau
    20070S0100B1037                  - 5 -     

     1  shall maintain a toll-free telephone number from which a caller
     2  can obtain information as to whether a contractor is registered
     3  with the bureau pursuant to this act, as well as information
     4  that may be obtained on the bureau's website.
     5     (c)  Confidentiality of personal information.--The bureau
     6  shall create a policy for the disclosure of personal information
     7  to the public. The bureau may not disclose to the public a
     8  contractor's Social Security number OR DRIVER'S LICENSE NUMBER.   <--
     9     (d)  Nongrant or renewal of license.--The Department of
    10  Banking shall not grant or renew a license to any person
    11  registered, or required to be registered, as a home improvement
    12  contractor pursuant to any of the following:
    13         (1)  The act of December 12, 1980 (P.L.1179, No.219),
    14     known as the Secondary Mortgage Loan Act.
    15         (2)  The act of December 22, 1989 (P.L.687, No.90), known
    16     as the Mortgage Bankers and Brokers and Consumer Equity
    17     Protection Act.
    18  Section 4.  Procedures for registration as a contractor.
    19     (a)  Application.--
    20         (1)  A person shall apply to the bureau in writing, or
    21     electronically via a secure Internet connection, if permitted
    22     by the bureau, on a form provided by the bureau. The
    23     application shall include the following information:
    24             (i)  For an individual applicant, the name, home
    25         address, home telephone number and driver's license
    26         identification number of the applicant or an
    27         identification card issued by the Pennsylvania Department
    28         of Transportation, as well as the individual's business
    29         name, address and telephone number if different, and all
    30         prior business names and addresses of home improvement
    20070S0100B1037                  - 6 -     

     1         businesses.
     2             (ii)  For a partnership applicant, the name, home
     3         address, home telephone number and driver's license
     4         identification number of each partner as well as the
     5         partnership name, address and telephone number.
     6             (iii)  For a corporation, limited liability company
     7         or limited partnership applicant, the name, home address,
     8         home telephone number and driver's license identification
     9         number of each officer, each director or each individual
    10         holding greater than a 5% stake in the business, as well
    11         as the entity's business name, address and telephone
    12         number.
    13             (iv)  For an out-of-State corporation, limited
    14         liability or limited partnership, the name and address of
    15         the entity's resident agent or registered office provider
    16         within this Commonwealth and any registration number or
    17         license number issued to the entity by its home state or
    18         political subdivision of such other state, if applicable.
    19             (v)  For a joint venture applicant, the name, address
    20         and telephone number of the joint venture, as well as the
    21         name, address and telephone number of each party to the
    22         joint venture. When the parties to a joint venture
    23         include business entities, the information required from
    24         such entities pursuant to paragraph (2) and subsection
    25         (b) shall also be provided.
    26             (vi)  A complete description of the nature of the
    27         contracting business of the applicant.
    28             (vii)  A statement whether:
    29                 (A)  The individual or individuals making
    30             application, even if doing so as part of a business
    20070S0100B1037                  - 7 -     

     1             entity application, has ever been convicted of a
     2             criminal offense related to a home improvement
     3             transaction, fraud, theft, a crime of deception or a
     4             crime involving fraudulent business practices, as
     5             well as a statement whether the applicant has ever
     6             filed a petition in bankruptcy or within the last ten
     7             years received a final civil judgment entered against
     8             the applicant or businesses in which the applicant
     9             held an interest that was related to a home
    10             improvement transaction.
    11                 (B)  The applicant's certificate or the
    12             certificate of a business with which the person
    13             making application held an interest has ever been
    14             revoked or suspended pursuant to an order issued by a
    15             court of competent jurisdiction in this Commonwealth
    16             or any other state or political subdivision thereof
    17             and, if so, the current status of the license.
    18             (viii)  Whether within the last ten years the
    19         applicant has ever been suspended or debarred from
    20         participating in any Federal, State or local program
    21         through which funding or other assistance is provided to
    22         consumers for home improvements.
    23             (ix)  Proof of liability insurance covering personal
    24         injury in an amount not less than $50,000 and insurance
    25         covering property damage caused by the work of a home
    26         improvement contractor in an amount not less than
    27         $50,000.
    28         (2)  Information requested in paragraph (1)(i) through
    29     (v) shall be for a ten-year period, prior to the time of
    30     registration. The applicant shall provide information prior
    20070S0100B1037                  - 8 -     

     1     to the last ten years or as further clarification of the
     2     information provided, if the bureau requests such
     3     information.
     4     (b)  Reporting of multiple registrations or licensures.--Any
     5  registered contractor in this Commonwealth who is registered or
     6  licensed as a home improvement contractor in any other state, or
     7  political subdivision thereof, shall report this information to
     8  the bureau on the initial registration and biennial registration
     9  application. Any disciplinary action taken in such other
    10  jurisdiction shall be reported to the bureau on the initial
    11  registration application or, if such action occurred subsequent
    12  to submission of an initial application, on the biennial
    13  registration application or within 90 days of final disposition,
    14  whichever is sooner. Multiple registrations or licensures shall
    15  be noted by the bureau on the contractor's registration, and
    16  such state, or political subdivision thereof, shall be notified
    17  by the bureau of any disciplinary actions taken against such
    18  contractor in this Commonwealth.
    19  Section 5.  Application fees.
    20     Each application for a certificate for a home improvement
    21  contractor or renewal of that certificate shall be accompanied
    22  by a fee of $50. After completion of the application and payment
    23  of the fee, the bureau shall issue the home improvement
    24  contractor a registration certificate identifying the name of
    25  the individual contractor, name and address of the business and
    26  a registration number. Renewals shall be on a biennial basis.
    27  Section 6.  Home improvement contracts.
    28     (a)  Requirements.--No home improvement contract shall be
    29  valid or enforceable against an owner unless it:
    30         (1)  Is in writing and legible and contains the home
    20070S0100B1037                  - 9 -     

     1     improvement contractor registration number of the performing
     2     contractor.
     3         (2)  Is signed by all of the following:
     4             (i)  The owner, his agent or other contracted party.
     5             (ii)  The contractor or a salesperson on behalf of a
     6         contractor.
     7         (3)  Contains the entire agreement between the owner and
     8     the contractor, including attached copies of all required
     9     notices.
    10         (4)  Contains the date of the transaction.
    11         (5)  Contains the name, address and telephone number of
    12     the contractor. For the purposes of this paragraph, a post
    13     office box number alone shall not be considered an address.
    14         (6)  Contains the approximate starting date and
    15     completion date.
    16         (7)  Includes a description of the work to be performed,
    17     the materials to be used and a set of specifications that
    18     cannot be changed without a written change order signed by
    19     the owner and contractor.
    20         (8)  Includes the total sales price due under the
    21     contract.
    22         (9)  Includes the amount of any down payment plus any
    23     amount advanced for the purchase of special order materials.
    24     The amount of the down payment and the cost of the special
    25     order materials must be listed separately.
    26         (10)  Includes the names, addresses and telephone numbers
    27     of all subcontractors on the project known at the date of
    28     signing the contract. For the purposes of this paragraph, a
    29     post office box number alone shall not be considered an
    30     address.
    20070S0100B1037                 - 10 -     

     1         (11)  Except as provided in section 12, agrees to
     2     maintain liability insurance covering personal injury in an
     3     amount not less than $50,000 and insurance covering property
     4     damage caused by the work of a home improvement contractor in
     5     an amount not less than $50,000 and identifies the current
     6     amount of insurance coverage maintained at the time of
     7     signing the contract.
     8     (b)  Right of rescission.--An individual signing a home
     9  improvement contract, except as provided in the emergency
    10  provisions of section 7 of the act of December 17, 1968
    11  (P.L.1224, No.387), known as the Unfair Trade Practices and
    12  Consumer Protection Law, shall be permitted to rescind the
    13  contract without penalty regardless of where the contract was
    14  signed, within three BUSINESS days of the date of signing.        <--
    15     (c)  Copy to be provided.--A contractor or salesperson shall
    16  provide and deliver to the owner, without charge, a completed
    17  copy of the home improvement contract at the time the contract
    18  is executed which shall contain all required notices.
    19     (d)  Arbitration clause.--Nothing in this act shall preclude
    20  the court from setting aside an arbitration clause on any basis
    21  permitted under Pennsylvania law. If the contract contains an
    22  arbitration clause, it shall meet the following requirements or
    23  be deemed void by the court upon motion of either party, filed
    24  prior to the commencement of arbitration:
    25         (1)  The text of the clause must be in capital letters.
    26         (2)  The text shall be printed in 12-point boldface type
    27     and the arbitration clause must appear on a separate page
    28     from the rest of the contract.
    29         (3)  The clause shall contain a separate line for each of
    30     the parties to indicate their assent to be bound thereby.
    20070S0100B1037                 - 11 -     

     1         (4)  The clause shall not be effective unless both
     2     parties have assented as evidenced by signature and date,
     3     which shall be the date on which the contract was executed.
     4         (5)  The clause shall state clearly whether the decision
     5     of the arbitration is binding on the parties or may be
     6     appealed to the court of common pleas.
     7         (6)  The clause shall state whether the facts of the
     8     dispute, related documents and the decision are confidential.
     9     (e)  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)  (Reserved).
    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 shall 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
    20070S0100B1037                 - 12 -     

     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     (f)  Home improvement retailer contracts.--A home improvement
    17  retailer having a net worth of more than $50,000,000 or an
    18  employee of that retailer THAT DOES NOT PERFORM HOME              <--
    19  IMPROVEMENTS shall comply with the provisions of this
    20  subsection. No home improvement contract issued by a home
    21  improvement retailer having a net worth of more than $50,000,000
    22  or an employee of that retailer shall be valid or enforceable
    23  against an owner unless the contract:
    24         (1)  Is in writing and legible and contains all of the
    25     following:
    26             (i)  The name, address and telephone number of the
    27         retailer.
    28             (ii)  The name of the person signing the contract on
    29         behalf of the retailer and the person's position with the
    30         retailer or the person's authority to sign the contract.
    20070S0100B1037                 - 13 -     

     1             (iii)  The signature of the owner, the owner's agent
     2         or other contracted party.
     3         (2)  Complies with subsections (a)(3), (4), (6), (7), (8)
     4     and (9), (b), (c), (d) and (e).
     5     (g)  Contractor's recovery right.--Nothing in this section
     6  shall preclude a contractor who has complied with subsection (a)
     7  from the recovery of payment for work performed based on the
     8  reasonable value of services which were requested by the owner
     9  if a court determines that it would be inequitable to deny such
    10  recovery.
    11  Section 7.  Home improvement fraud.
    12     (a)  Offense defined.--A person commits the offense of home
    13  improvement fraud if, with intent to defraud or injure anyone or
    14  with knowledge that he is facilitating a fraud or injury to be
    15  perpetrated by anyone, the actor:
    16         (1)  makes a false or misleading statement to induce,
    17     encourage or solicit a person to enter into any written or
    18     oral agreement for home improvement services or provision of
    19     home improvement materials or to justify an increase in the
    20     previously agreed upon price;
    21         (2)  receives any advance payment for performing home
    22     improvement services or providing home improvement materials
    23     and fails to perform or provide such services or materials
    24     when specified in the contract taking into account any force
    25     majeure or unforeseen labor strike that would extend the time
    26     frame or unless extended by agreement with the consumer and
    27     fails to return the payment received for such services or
    28     materials which were not provided by that date;
    29         (3)  while soliciting a person to enter into an agreement
    30     for home improvement services or materials, misrepresents or
    20070S0100B1037                 - 14 -     

     1     conceals the contractor's or salesperson's real name, the
     2     name of the contractor's business, the contractor's business
     3     address or any other identifying information;
     4         (4)  damages a person's property with the intent to
     5     induce, encourage or solicit that person to enter into a
     6     written or oral agreement for performing home improvement
     7     services or providing home improvement materials;
     8         (5)  misrepresents himself or another as an employee or
     9     agent of the Federal, Commonwealth or municipal government,
    10     any other governmental unit or any public utility, with the
    11     intent to cause a person to enter into any agreement for
    12     performing home improvement services or providing home
    13     improvement materials;
    14         (6)  misrepresents an item as a special order material or
    15     to misrepresent the cost of the special order material;
    16         (7)  alters a home improvement agreement, mortgage,
    17     promissory note or other document incident to performing or
    18     selling a home improvement without the consent of the
    19     consumer; or
    20         (8)  directly or indirectly publishes a false or
    21     deceptive advertisement in violation of State law governing
    22     advertising about home improvement.
    23     (B)  PROSECUTION.--PROSECUTIONS UNDER THIS SECTION SHALL NOT   <--
    24  BAR PROSECUTION OR CONVICTION FOR ANY OTHER CRIMES.
    25     (b) (C)  Grading.--                                            <--
    26         (1)  A violation of subsection (a)(1), (3), (4), (5), (6)
    27     or (7) constitutes:
    28             (i)  a felony of the third degree if the amount
    29         involved exceeds $2,000; or
    30             (ii)  a misdemeanor of the first degree if the amount
    20070S0100B1037                 - 15 -     

     1         involved is $2,000 or less or if the amount involved
     2         cannot be satisfactorily ascertained.
     3         (2)  A violation of subsection (a)(2) constitutes:
     4             (i)  a felony of the third degree if the amount of
     5         the payment retained exceeds $2,000; or
     6             (ii)  a misdemeanor of the first degree if the amount
     7         of the payment retained is $2,000 or less or if the
     8         amount of the payment cannot be satisfactorily
     9         ascertained.
    10         (3)  Amounts involved pursuant to one scheme or course of
    11     conduct, whether involving one or more victims, may be
    12     aggregated in determining the grade of the offense pursuant
    13     to subsection (a).
    14         (4)  Where a person commits an offense under subsection
    15     (a) and the victim is 60 years of age or older, the grading
    16     of the offense shall be one grade higher than specified in
    17     paragraphs (1), (2) and (3). This paragraph shall not be
    18     applicable to persons whose sentence would be enhanced
    19     pursuant to paragraph (5).
    20         (5)  Notwithstanding any other provisions of this
    21     section, where a person commits a second or subsequent
    22     offense described in subsection (a), the offense will
    23     constitute a felony of the second degree regardless of the
    24     amount of money involved. For this paragraph to be
    25     applicable, the second or subsequent offense must have
    26     occurred after the first conviction. Paragraph (4) shall not
    27     be applicable to persons whose sentences would be enhanced
    28     pursuant to this paragraph.
    29         (6)  In addition to any other penalty imposed by this
    30     act, the court may revoke or suspend the certificate of
    20070S0100B1037                 - 16 -     

     1     registration issued under section 3. At the time of
     2     sentencing, the court shall state the reasons for such
     3     revocation or suspension. A person whose registration has
     4     been revoked or suspended may petition the court of original
     5     jurisdiction for reinstatement after a period of five years
     6     from the date of revocation or suspension, or as specified in
     7     the court's order.
     8     (c) (D)  Jurisdiction.--                                       <--
     9         (1)  The district attorneys of the several counties shall
    10     have the authority to investigate and to institute criminal
    11     proceedings for any violation of this section.
    12         (2)  In addition to the authority conferred upon the
    13     Attorney General by the act of October 15, 1980 (P.L.950,
    14     No.164), known as the Commonwealth Attorneys Act, the
    15     Attorney General shall have the authority to investigate and
    16     institute criminal proceedings for any violation of this
    17     section or any series of such violations involving more than
    18     one county of this Commonwealth or involving any county of
    19     this Commonwealth and another state. No person charged with a
    20     violation of this section by the Attorney General shall have
    21     standing to challenge the authority of the Attorney General
    22     to investigate or prosecute the case, and, if any such
    23     challenge is made, the challenge shall be dismissed and no
    24     relief shall be available in the courts of this Commonwealth
    25     to the person making the challenge.
    26  Section 8.  Prohibited acts.
    27     No person shall:
    28         (1)  Fail to register as required by this act.
    29         (2)  Fail to refund the amount paid for a home
    30     improvement within ten days of either the acceptance and
    20070S0100B1037                 - 17 -     

     1     execution of a return receipt for certified mail containing a
     2     written request for a refund or the refusal to accept the
     3     certified mail sent to the contractor's last known address if
     4     all of the following apply:
     5             (i)  No substantial portion of the contracted work
     6         has been performed at the time of the request.
     7             (ii)  More than 45 days have elapsed since the
     8         starting date specified in the written contract.
     9         (3)  Accept a municipal certificate of occupancy or other
    10     proof that performance of a home improvement contract is
    11     complete or satisfactorily concluded with knowledge that the
    12     document or proof is false and the performance is incomplete.
    13         (4)  Utter, offer or use a completion certificate or
    14     other proof that a home improvement contract is complete or
    15     satisfactorily concluded when the person knows or has reason
    16     to know that the document or proof is false and is made to
    17     accomplish any of the following:
    18             (i)  Make or accept an assignment or negotiation of
    19         the right to receive payment under a home improvement
    20         contract.
    21             (ii)  Get or grant credit or a loan on security of
    22         the right to receive payment under a home improvement
    23         contract.
    24         (5)  Abandon or fail to perform, without justification,
    25     any home improvement contract or project engaged in or
    26     undertaken by a contractor. For the purposes of this
    27     paragraph, the term "justification" shall include nonpayment
    28     by the owner as required under the contract or any other
    29     violation of the contract by the owner.
    30         (6)  Deviate from or disregard plans or specifications,
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     1     in any material respect, without a written change order dated
     2     and signed by both the contractor and owner, which contains
     3     the accompanying price changes for each deviation.
     4         (7)  Prepare, arrange, accept or participate in the
     5     financing of a home improvement contract with knowledge that
     6     the home improvement contract states a greater monetary
     7     obligation than the actual price of the home improvement.
     8         (8)  Advertise or offer, by any means, to perform a home
     9     improvement if the person does not intend to do any of the
    10     following:
    11             (i)  Accept a home improvement contract.
    12             (ii)  Perform the home improvement.
    13             (iii)  Charge for the home improvement at the price
    14         advertised or offered.
    15         (9)  Demand or receive any payment for a home improvement
    16     before the home improvement contract is signed.
    17         (10)  For a home improvement contract in which the total
    18     price is more than $1,000, receive a deposit in excess of:
    19             (i)  one-third of the home improvement contract
    20         price; or
    21             (ii)  one-third of the home improvement contract
    22         price in the event special order materials are included.   <--
    23         PRICE PLUS THE COST OF SPECIAL ORDER MATERIALS THAT HAVE   <--
    24         BEEN ORDERED.
    25         (11)  While acting as a salesperson, fail to account for
    26     or remit to the contractor whom the salesperson represents a
    27     payment received in connection with a home improvement.
    28  Section 9.  Unfair Trade Practices and Consumer Protection Law.
    29     A violation of any of the provisions of this act shall be
    30  deemed a violation of the act of December 17, 1968 (P.L.1224,
    20070S0100B1037                 - 19 -     

     1  No.387), known as the Unfair Trade Practices and Consumer
     2  Protection Law. Nothing in this act shall preclude a consumer
     3  from exercising any right provided under the Unfair Trade
     4  Practices and Consumer Protection Law.
     5  Section 10.  Regulations.
     6     The bureau may adopt rules and regulations necessary to carry
     7  out the provisions of this act.
     8  Section 11.  Preemption of local registration.
     9     Registration under this act shall preclude any requirement of
    10  payment of a fee or registration or licensing of any home
    11  improvement contractor by any political subdivision. Political
    12  subdivisions shall be permitted to require building permits and
    13  local enforcement of the building code for that political
    14  subdivision, for which a reasonable fee may be charged. This
    15  provision does not affect a municipality's responsibilities or
    16  authority under the act of November 10, 1999 (P.L.491, No.45),
    17  known as the Pennsylvania Construction Code Act, or the
    18  requirements under section 302(e) of the act of June 2, 1915
    19  (P.L.736, No.338), known as the Workers' Compensation Act,
    20  regarding workers' compensation. This provision does not affect
    21  existing licensing standards in effect on the effective date of
    22  this act, with respect to electricians and plumbers AND OTHER     <--
    23  TRADES, where licensing is conditioned on requirements of
    24  testing or possession of certificates obtained through specific
    25  training in electricity or plumbing OR OTHER TRADES. This         <--
    26  provision does not affect standards for liability insurance
    27  adopted by a municipality prior to January 1, 2006, and which
    28  are in effect on the effective date of this section.
    29  Section 12.  Exemptions.
    30     This act shall not apply to any of the following persons or
    20070S0100B1037                 - 20 -     

     1  organizations:
     2         (1)  The Commonwealth, or any of its political
     3     subdivisions.
     4         (2)  The Federal Government.
     5  Section 13 18.  Applicability.                                    <--
     6     This act shall not apply to local regulations, relating to
     7  liability insurance coverage for contractors which were adopted
     8  by a municipality prior to January 1, 2006, and which are in
     9  effect on the effective date of this section.
    10  Section 14 19.  Repeal.                                           <--
    11     All acts and parts of acts are repealed insofar as they are
    12  inconsistent with this act.
    13  Section 20.  Effective date.
    14     This act shall take effect in 180 days.











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