PRINTER'S NO. 3755
No. 2557 Session of 2006
INTRODUCED BY FLICK, PRESTON, KENNEY, TIGUE, BAKER, BARRAR,
BELFANTI, BEYER, BUNT, CALTAGIRONE, COHEN, CORNELL, CRAHALLA,
DeWEESE, FABRIZIO, FRANKEL, GILLESPIE, GINGRICH, GRUCELA,
HARPER, HERSHEY, JAMES, MAITLAND, PETRI, REICHLEY, RUBLEY,
SCHRODER, SHAPIRO, SIPTROTH, SOLOBAY, STABACK, SURRA,
E. Z. TAYLOR, J. TAYLOR, THOMAS, WALKO, WRIGHT AND
YOUNGBLOOD, MARCH 20, 2006
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, MARCH 20, 2006
AN ACT
1 Providing for the regulation of home improvement contracts, for
2 the registration of certain contractors and supersedure over
3 municipal ordinances; prohibiting certain conduct; and
4 prescribing penalties.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Short title.
8 This act shall be known and may be cited as the Home
9 Improvement Registration and Fraud Prevention Act.
10 Section 2. Definitions.
11 The following words and phrases when used in this act shall
12 have the meanings given to them in this section unless the
13 context clearly indicates otherwise:
14 "Bureau." The Bureau of Consumer Protection in the Office of
15 Attorney General.
16 "Certificate." A certificate of registration as a contractor
1 which contains a registration number assigned by the Bureau of
2 Consumer Protection.
3 "Contractor." Any person, including a subcontractor or
4 employee of another contractor, who owns and operates a home
5 improvement business.
6 "Home improvement."
7 (1) The term includes all of the following done in
8 connection with land or a portion of the land adjacent to a
9 private residence or a building or a portion of the building
10 which is used or designed to be used as a private residence
11 for which the total cash price of all work agreed upon
12 between the contractor and owner is more than $1,000.
13 (i) Repair, replacement, remodeling, demolition,
14 removal, renovation, installation, alteration,
15 conversion, modernization, improvement, rehabilitation or
16 sandblasting.
17 (ii) Construction, replacement, installation or
18 improvement of driveways, swimming pools, pool houses,
19 porches, garages, roofs, siding, insulation, solar energy
20 systems, security systems, flooring, patios, fences,
21 gazebos, sheds, cabanas, landscaping of a type that is
22 not excluded under paragraph (2)(vi), painting, doors and
23 windows and waterproofing.
24 (iii) Without regard to affixation, the installation
25 of central heating or air conditioning or storm windows
26 or awnings.
27 (iv) The conversion of existing commercial
28 structures into residential or noncommercial structures.
29 (2) The term does not include:
30 (i) The construction of a new home.
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1 (ii) The sale of goods or materials by a seller who
2 neither arranges to nor performs, directly or indirectly,
3 any work or labor in connection with the installation or
4 application of the goods or materials.
5 (iii) The sale of services furnished for commercial
6 or business use or for resale, if the service takes place
7 somewhere other than at a private residence.
8 (iv) The sale of appliances, including stoves,
9 refrigerators, freezers, room air conditioners and others
10 which are designed to be and are easily removable from
11 the premises.
12 (v) Any work performed without compensation by the
13 owner on the owner's private residence or residential
14 rental property.
15 (vi) Any work performed by a landscaper certified by
16 the Department of Agriculture under the act of December
17 16, 1992 (P.L.1228, No.162), known as the Plant Pest Act,
18 except to the extent that the work involves any of the
19 following at a private residence:
20 (A) The construction, replacement, installation
21 or improvement of buildings, driveways, swimming
22 pools, porches, garages, roofs, siding, insulation,
23 solar energy systems, security systems, flooring,
24 patios, nondecorative fences, doors, lighting
25 systems, concrete walkways and windows.
26 (B) The placement of retaining walls, fountains
27 or drainage systems.
28 "Home improvement business." A business that undertakes,
29 offers to undertake or agrees to perform any home improvement.
30 "Home improvement contract." An agreement between a
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1 contractor, subcontractor or salesperson and an owner for the
2 performance of a home improvement, including all agreements for
3 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 "Person." An individual, partnership, limited partnership,
18 limited liability company, joint venture or corporation.
19 "Private residence." Any of the following:
20 (1) A single family dwelling.
21 (2) A multifamily dwelling consisting of not more than
22 three units.
23 (3) A single unit located within any multifamily
24 dwelling, including condominiums, cooperatives and planned
25 communities.
26 "Special order material." Materials that, prior to their
27 delivery to the worksite, meet all of the following
28 requirements:
29 (1) Require processing by a manufacturer to meet the
30 designated specifications of a particular home improvement
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1 project.
2 (2) Cannot be returned to the supplier for a refund or
3 credit because of features that limit their use to the
4 particular home improvement project.
5 (3) Have no value in the performance of another home
6 improvement project other than the particular home
7 improvement project they were procured for.
8 "Specifications." The plans, detailed drawings, lists of
9 materials, stated allowances or other methods customarily used
10 in the home improvement industry as a whole to describe with
11 particularity the work, workmanship, materials and quality of
12 materials for each home improvement.
13 "Tenant." A person who has entered into a lease or other
14 contractual arrangement with an owner.
15 Section 3. Registration of contractors.
16 (a) General rule.--No person shall hold himself out as a
17 contractor nor shall a person perform any home improvement
18 without first registering with the bureau as provided for in
19 this act.
20 (b) Liability.--No business entity registered pursuant to
21 this act shall be relieved of responsibility under this act for
22 the conduct and acts of its agents, employees, officers or
23 directors, nor shall any person be relieved of responsibility
24 under this act by reason of his employment or relationship with
25 such business entity.
26 (c) Public access to registration information.--The bureau
27 shall maintain a toll-free telephone number from which a caller
28 can obtain information as to whether a contractor is registered
29 with the bureau pursuant to this act.
30 (d) Nongrant or renewal of license.--The Department of
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1 Banking shall not grant or renew a license to any person
2 registered, or required to be registered, as a home improvement
3 contractor pursuant to any of the following:
4 (1) The act of December 12, 1980 (P.L.1179, No.219),
5 known as the Secondary Mortgage Loan Act.
6 (2) The act of December 22, 1989 (P.L.687, No.90), known
7 as the Mortgage Bankers and Brokers and Consumer Equity
8 Protection Act.
9 Section 4. Procedures for registration as a contractor.
10 (a) Application.--A person must apply to the bureau in
11 writing, on a form provided by the bureau, for a certificate.
12 The application shall include the following information:
13 (1) For an individual applicant, the name, home address,
14 home telephone number, driver's license identification number
15 and Social Security number of the applicant, as well as the
16 individual's business name, address and telephone number if
17 different, and all current and prior business names and
18 addresses of home improvement businesses operated by the
19 individual.
20 (2) For a partnership applicant, the name, home address,
21 home telephone number, driver's license identification number
22 and Social Security number of each partner as well as the
23 partnership name, address, telephone number and all current
24 and prior business names and addresses of home improvement
25 businesses operated by each partner.
26 (3) For a corporation, limited liability company or
27 limited partnership applicant, the name, home address, home
28 telephone number, driver's license identification number and
29 Social Security number of each officer, each director or each
30 individual holding greater than a 5% interest in the
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1 business, as well as the entity's business name, address,
2 telephone number and all current and prior business names and
3 addresses of home improvement businesses operated by each
4 director or each individual holding greater than a 5%
5 interest in the business.
6 (4) For an out-of-State corporation, limited liability
7 or limited partnership, in addition to the information in
8 paragraph (3), the name and address of the entity's resident
9 agent or registered office provider within this Commonwealth
10 and any registration number or license number issued to the
11 entity by its home state or political subdivision of such
12 other state, if applicable.
13 (5) For a joint venture applicant, the name, address and
14 telephone number of the joint venture, as well as the name,
15 address and telephone number of each party to the joint
16 venture. When the parties to a joint venture include business
17 entities, the information required from such entities
18 pursuant to paragraphs (2), (3) and (4) shall also be
19 provided.
20 (6) A complete description of the nature of the home
21 improvement business of the applicant.
22 (7) A statement whether:
23 (i) The individual or individuals making
24 application, even if doing so as part of a business
25 entity application, has ever been convicted of a criminal
26 offense related to a home improvement transaction, fraud,
27 theft, a crime of deception or a crime involving
28 fraudulent business practices, as well as a statement
29 whether the applicant has ever had a civil judgment
30 entered against the applicant or businesses in which the
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1 applicant held an interest that was related to a home
2 improvement transaction.
3 (ii) The applicant's certificate or the certificate
4 of a business with which the person making application
5 held an interest has ever been revoked or suspended
6 pursuant to an order issued by a court of competent
7 jurisdiction in this Commonwealth or any other state or
8 political subdivision thereof.
9 (8) Whether within the last ten years the applicant has
10 ever been suspended or debarred from participating in any
11 Federal, State or local program through which funding or
12 other assistance is provided to consumers for home
13 improvements.
14 (b) Reporting of multiple registrations or licensures.--Any
15 registered contractor in this Commonwealth who is registered or
16 licensed as a home improvement contractor in any other state, or
17 political subdivision thereof, shall report this information to
18 the bureau on the initial registration and biennial registration
19 application. Any disciplinary action taken in such other
20 jurisdiction shall be reported to the bureau on the initial
21 registration application or, if such action occurred subsequent
22 to submission of an initial application, on the biennial
23 registration application or within 90 days of final disposition,
24 whichever is sooner. Multiple registrations or licensures shall
25 be noted by the bureau on the contractor's registration, and
26 such state, or political subdivision thereof, shall be notified
27 by the bureau of any disciplinary actions taken against such
28 contractor in this Commonwealth.
29 (c) Adverse action on registration.--The Attorney General
30 may refuse to issue or may suspend or revoke any registration
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1 issued by him upon proof that the applicant or holder of the
2 registration:
3 (1) Has obtained a registration through fraud, deception
4 or misrepresentation.
5 (2) Has engaged in the use or employment of dishonesty,
6 fraud, deception, misrepresentation, false promise or false
7 pretense.
8 (3) Has engaged in gross negligence, gross malpractice
9 or gross incompetence.
10 (4) Has engaged in repeated acts of negligence,
11 malpractice or incompetence.
12 (5) Has engaged in professional or occupational
13 misconduct as may be determined by the Attorney General.
14 (6) Has been convicted of any crime involving moral
15 turpitude or any crime relating adversely to the activity
16 regulated by this act. For the purpose of this paragraph,
17 "convicted" includes conviction by entry of a plea of guilty
18 or nolo contendere, conviction after trial and a finding of
19 not guilty due to insanity or of guilty but mentally ill.
20 (7) Has had his authority to engage in the activity
21 regulated by the Attorney General revoked or suspended by any
22 other state, agency or authority for reasons consistent with
23 this section.
24 (8) Has violated or failed to comply with the provisions
25 of any act or regulation administered by the Attorney
26 General.
27 (9) Is incapable, for medical or any other good cause,
28 of discharging the functions of a contractor in a manner
29 consistent with the public's health, safety and welfare.
30 (d) Appeal.--An applicant whose registration is denied,
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1 suspended or revoked pursuant to this section shall, upon a
2 written request transmitted to the Attorney General within 30
3 calendar days of that action, be afforded an opportunity for a
4 hearing in a manner provided for under 2 Pa.C.S. Ch. 7 Subch. A
5 (relating to judicial review of Commonwealth agency action).
6 (e) Continuing duty to assist.--An applicant shall have the
7 continuing duty to provide any assistance or information
8 requested by the Attorney General and to cooperate in any
9 inquiry, investigation or hearing conducted by the Attorney
10 General.
11 (f) Supplemental information for statement.--If any of the
12 information required to be included in the statement required by
13 subsection (a)(7) changes or if additional information should be
14 added after the filing of the statement, the applicant shall
15 provide that information to the Attorney General in writing,
16 within 30 calendar days of the change or addition.
17 (g) Evidence of rehabilitation.--
18 (1) Notwithstanding the provisions of subsection (c)(6),
19 no individual shall be disqualified from registration or
20 shall have registration revoked on the basis of any
21 conviction disclosed if the individual has affirmatively
22 demonstrated to the director clear and convincing evidence of
23 the individual's rehabilitation.
24 (2) In determining whether an individual has
25 affirmatively demonstrated rehabilitation, the following
26 factors shall be considered:
27 (i) The nature and responsibility of the position
28 which the convicted individual would hold.
29 (ii) The nature and seriousness of the offense.
30 (iii) The circumstances under which the offense
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1 occurred.
2 (iv) The date of the offense.
3 (v) The age of the individual when the offense was
4 committed.
5 (vi) Whether the offense was an isolated or repeated
6 incident.
7 (vii) Any social conditions which may have
8 contributed to the offense.
9 (viii) Any evidence of rehabilitation, including
10 good conduct in prison or in the community, counseling or
11 psychiatric treatment received, acquisition of additional
12 academic or vocational schooling, successful
13 participation in correctional work-release programs or
14 the recommendation of persons who have had the individual
15 under their supervision.
16 (h) Application fees.--Each application for a certificate
17 for a home improvement contractor or renewal of that certificate
18 shall be accompanied by a fee established by the bureau, which
19 fee shall cover the bureau's administrative costs. Renewals
20 shall be on a biennial basis.
21 (i) Definition.--For the purpose of subsection (a), the term
22 "operated" shall mean involvement or association with any home
23 improvement business that would require an individual to include
24 the individual's name and home address in any application for
25 registration of the business under this section.
26 Section 5. Proof of commercial general liability insurance.
27 (a) General rule.--On or after December 31 of each year,
28 beginning with the year this section takes effect, every
29 registered contractor who is engaged in home improvements shall
30 secure, maintain and file with the Attorney General proof of a
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1 certificate of commercial general liability insurance in a
2 minimum amount of $100,000 per occurrence.
3 (b) New or replacement policy.--Every registered contractor
4 engaged in home improvements whose commercial general liability
5 insurance policy is canceled or nonrenewed shall submit to the
6 Attorney General a copy of the certificate of commercial general
7 liability insurance for a new or replacement policy which meets
8 the requirements of subsection (a) before the former policy is
9 no longer effective.
10 Section 6. Display of registration number.
11 (a) General rule.--A contractor shall prominently display
12 the certificate or a copy of the certificate within the
13 contractor's places of business. A contractor shall include the
14 registration number in all advertisements distributed within
15 this Commonwealth, on business documents, contracts and
16 correspondence with consumers of home improvement services in
17 this Commonwealth, and on all commercial vehicles registered in
18 this Commonwealth and leased or owned by registrants and used by
19 registrants for the purpose of providing home improvements,
20 except for vehicles leased or rented to customers of registrants
21 by a registrant or any agent or representative thereof.
22 (b) Disclosure of toll-free telephone number.--Any invoice,
23 contract or correspondence given by a registrant to a consumer
24 shall prominently contain the toll-free telephone number
25 provided pursuant to section (3)(c).
26 Section 7. Home improvement contracts.
27 (a) Requirements.--No home improvement contract shall be
28 valid or enforceable against an owner unless it:
29 (1) Is in writing, legible and contains the registration
30 number of the contractor.
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1 (2) Is signed by all of the following:
2 (i) The owner, his agent or other contracted party.
3 (ii) The contractor or a salesperson on behalf of a
4 contractor.
5 (3) Contains the entire agreement between the owner and
6 the contractor, including attached copies of all required
7 notices.
8 (4) Contains the date of the transaction.
9 (5) Contains the name, address and telephone number of
10 the contractor. For the purposes of this paragraph, a post
11 office box number alone shall not be considered an address.
12 (6) Contains the approximate starting date and
13 completion date.
14 (7) Includes a description of the work to be performed,
15 the materials to be used and a set of specifications that
16 cannot be changed without a written change order signed by
17 the owner and contractor.
18 (8) Includes the total sales price due under the
19 contract.
20 (9) Includes the amount of down payment.
21 (10) Includes the names, addresses and telephone numbers
22 of all subcontractors on the project. For the purposes of
23 this paragraph, a post office box number alone shall not be
24 considered an address.
25 (11) Includes a statement that any holder of the
26 contract is subject to all claims and defenses which the
27 owner could assert against the contractor and that recovery
28 may not be more than the total contract price.
29 (12) Includes proof of commercial general liability
30 insurance covering personal injury in an amount not less than
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1 $100,000 and insurance covering property damage caused by the
2 work of a home improvement contractor in an amount not less
3 than $50,000.
4 (13) Includes the toll-free telephone number required
5 under section 3(c).
6 (14) Includes a statement prepared by the Attorney
7 General explaining the provisions of subsections (b) and (d).
8 (b) Right of rescission.--Without regard to the location of
9 the transaction, all home improvement contracts shall be subject
10 to section 7 of the act of December 17, 1968 (P.L.1224, No.387),
11 known as the Unfair Trade Practices and Consumer Protection Law.
12 (c) Copy to be provided.--A contractor or salesperson shall
13 provide and deliver to the owner, without charge, a completed
14 copy of the home improvement contract at the time the contract
15 is executed which shall contain all required notices.
16 (d) Voidable clauses.--If a home improvement contract
17 contains any of the following clauses, the home improvement
18 contract shall be voidable:
19 (1) A hold harmless clause.
20 (2) A waiver of Federal, State or local health, life,
21 safety or building code requirements.
22 (3) A confession of judgment clause.
23 (4) A waiver of any right to a jury trial in any action
24 brought by or against the owner.
25 (5) A mandatory arbitration clause.
26 (6) An assignment of or order for payment of wages or
27 other compensation for services.
28 (7) A provision by which the owner agrees not to assert
29 any claim or defense arising out of the contract.
30 (8) A provision that the contractor may be awarded
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1 attorney fees and costs.
2 (9) A clause by which the owner relieves the contractor
3 from liability for acts committed by the contractor or the
4 contractor's agents in the collection of any payments or in
5 the repossession of any goods.
6 (10) A waiver of any rights provided under this act.
7 (11) A provision providing for the automatic or
8 recurring renewal of any provisions of the agreement, unless:
9 (i) the contract establishes a procedure by which
10 the consumer can choose not to renew the provision or
11 provisions, thereby avoiding any new fees or charges, by
12 providing written notice to the contractor via first
13 class mail postmarked no later than three business days
14 prior to any renewal;
15 (ii) such procedure is clearly and conspicuously
16 disclosed in the agreement; and
17 (iii) the contract includes a provision requiring
18 the contractor to notify the consumer of any automatic or
19 recurring renewal, and the consumer's option to cancel
20 such renewal, by mail not earlier than 20 days and not
21 later than ten days prior to the date of any such
22 renewal.
23 (e) Contractor's recovery right.--Nothing in this section
24 shall preclude a contractor who has complied with subsection (a)
25 from the recovery of payment for work performed based on the
26 reasonable value of services which were requested by the owner
27 if a court determines that it would be inequitable to deny such
28 recovery.
29 Section 8. Home improvement fraud.
30 (a) Offense defined.--A person commits the offense of home
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1 improvement fraud if, with intent to defraud or injure anyone or
2 with knowledge or reckless disregard that he is facilitating a
3 fraud or injury to be perpetrated by anyone, the actor:
4 (1) makes a false or misleading statement to induce,
5 encourage or solicit a person to enter into any written or
6 oral agreement for home improvement services or provision of
7 home improvement materials or to justify an increase in the
8 previously agreed upon price;
9 (2) receives any advance payment for performing home
10 improvement services or providing home improvement materials,
11 fails to perform or provide such services or materials within
12 the date specified in the agreement taking into account any
13 force majeure or unforeseen labor strike that would extend
14 the time frame or unless extended by agreement with the
15 consumer and fails to return the payment received for such
16 services or materials which were not provided by that date;
17 (3) while soliciting a person to enter into an agreement
18 for home improvement services or materials, misrepresents or
19 conceals the contractor's or salesperson's real name, the
20 name of the contractor's business, the contractor's business
21 address or any other identifying information;
22 (4) damages a person's property with the intent to
23 induce, encourage or solicit that person to enter into a
24 written or oral agreement for performing home improvement
25 services or providing home improvement materials;
26 (5) misrepresents himself or another as an employee or
27 agent of the Federal, Commonwealth or municipal government,
28 any other governmental unit or any public utility, with the
29 intent to cause a person to enter into any agreement for
30 performing home improvement services or providing home
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1 improvement materials;
2 (6) alters a home improvement agreement, mortgage,
3 promissory note or other document incident to performing or
4 selling a home improvement without the consent of the
5 consumer; or
6 (7) directly or indirectly publishes a false or
7 deceptive advertisement in violation of State law governing
8 advertising about home improvement.
9 (b) Grading.--
10 (1) A violation of subsection (a)(1), (3), (4), (5), (6)
11 or (7) constitutes:
12 (i) a felony of the third degree if the amount
13 involved exceeds $2,000; or
14 (ii) a misdemeanor of the first degree if the amount
15 involved is $2,000 or less or if the amount involved
16 cannot be satisfactorily ascertained.
17 (2) A violation of subsection (a)(2) constitutes:
18 (i) a felony of the third degree if the amount of
19 the payment retained exceeds $2,000; or
20 (ii) a misdemeanor of the first degree if the amount
21 of the payment retained is $2,000 or less or if the
22 amount of the payment cannot be satisfactorily
23 ascertained.
24 (3) Amounts involved pursuant to one scheme or course of
25 conduct, whether involving one or more victims, may be
26 aggregated in determining the grade of the offense pursuant
27 to this subsection.
28 (4) Where a person commits an offense under subsection
29 (a) and the victim is 60 years of age or older, the grading
30 of the offense shall be one grade higher than specified in
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1 paragraphs (1), (2) and (3). This paragraph shall not be
2 applicable to persons whose sentence would be enhanced
3 pursuant to paragraph (5).
4 (5) Notwithstanding any other provisions of this
5 section, where a person commits a second or subsequent
6 offense described in subsection (a), the offense will
7 constitute a felony of the second degree regardless of the
8 amount of money involved. For this paragraph to be
9 applicable, the second or subsequent offense must have
10 occurred after the first conviction. Paragraph (4) shall not
11 be applicable to persons whose sentences would be enhanced
12 pursuant to this paragraph.
13 (6) In addition to any other penalty imposed by this
14 act, the court may revoke or suspend the certificate of
15 registration issued under section 3. At the time of
16 sentencing, the court shall state the reasons for such
17 revocation or suspension.
18 (c) Jurisdiction.--
19 (1) The district attorneys of the several counties shall
20 have the authority to investigate and to institute criminal
21 proceedings for any violation of this section.
22 (2) In addition to the authority conferred upon the
23 Attorney General by the act of October 15, 1980 (P.L.950,
24 No.164), known as the Commonwealth Attorneys Act, the
25 Attorney General shall have the authority to investigate and
26 institute criminal proceedings for any violation of this
27 section or any series of such violations involving more than
28 one county of this Commonwealth or involving any county of
29 this Commonwealth and another state. No person charged with a
30 violation of this section by the Attorney General shall have
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1 standing to challenge the authority of the Attorney General
2 to investigate or prosecute the case, and, if any such
3 challenge is made, the challenge shall be dismissed and no
4 relief shall be available in the courts of this Commonwealth
5 to the person making the challenge.
6 Section 9. Prohibited acts.
7 (a) Specific conduct.--No person shall:
8 (1) Fail to register as required by this act.
9 (2) 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 (3) 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 (4) Deviate from or disregard plans or specifications,
25 in any material respect, without a written change order dated
26 and signed by both the contractor and owner, which contains
27 the accompanying price changes for each deviation.
28 (5) Prepare, arrange, accept or participate in arranging
29 a mortgage, promissory note or other evidence of debt for
30 performing or selling a home improvement with knowledge that
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1 the evidence of debt states a greater monetary obligation
2 than the consideration, including a time sale price, for a
3 home improvement.
4 (6) Demand or receive any payment for a home improvement
5 before the home improvement contract is signed.
6 (7) For a home improvement contract in which the total
7 price is more than $1,000, receive a deposit in excess of the
8 greater of any of the following:
9 (i) One-third of the home improvement contract
10 price.
11 (ii) The cost of any special-order materials or
12 merchandise purchased or to be purchased under the home
13 improvement contract.
14 (8) While acting as a salesperson, fail to account for
15 or remit to the contractor whom the salesperson represents a
16 payment received in connection with a home improvement.
17 (b) Unfair trade practice.--It is an unlawful practice and a
18 violation of the act of December 17, 1968 (P.L.1224, No.387),
19 known as the Unfair Trade Practices and Consumer Protection Law,
20 to violate any provision of this act.
21 (c) Criminal penalty.--In addition to any other penalty
22 provided by law, a person who knowingly violates any of the
23 provisions of this act for which a criminal penalty is not
24 otherwise provided commits a summary offense.
25 Section 10. Supersedure of municipal ordinance.
26 (a) General rule.--This act shall supersede any municipal
27 ordinance or regulation that provides for the licensing or
28 registration of contractors or for the protection of homeowners
29 by bonds or warranties required to be provided by contractors,
30 exclusive of those required by water, sewer, utility or land-use
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1 ordinances or regulations.
2 (b) Construction permits.--No municipality shall issue a
3 construction permit for any home improvement to any contractor
4 who is not registered pursuant to the provisions of this act.
5 Section 11. Municipal powers preserved.
6 This act shall not be construed to deny to any municipality
7 the power to inspect a contractor's work or equipment, the work
8 of a contractor who performs improvements to commercial property
9 or the power to regulate the standards and manners in which the
10 contractor's work shall be done.
11 Section 12. Public information campaign.
12 The Attorney General shall establish and undertake a public
13 information campaign to educate and inform contractors and the
14 consumers of this Commonwealth of the provisions of this act.
15 The public information campaign shall include, but not be
16 limited to, the preparation, printing and distribution of
17 booklets, pamphlets or other written pertinent information,
18 which shall contain the toll-free telephone number required
19 under section 3(c).
20 Section 13. Regulations.
21 The bureau may adopt rules and regulations necessary to carry
22 out the provisions of this act.
23 Section 14. Exemptions.
24 This act shall not apply to any of the following persons or
25 organizations:
26 (1) The Commonwealth, or any of its political
27 subdivisions.
28 (2) The Federal Government.
29 Section 15. Cumulative remedies.
30 This act shall not be construed to preclude any other
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1 criminal prosecution or civil remedy authorized under law.
2 Section 16. Effective date.
3 This act shall take effect in 180 days.
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