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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY TOMLINSON, FONTANA, BOSCOLA, BREWSTER AND BRUBAKER, APRIL 12, 2011 |
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| REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE, APRIL 12, 2011 |
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| AN ACT |
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1 | Amending the act of October 17, 2008 (P.L.1645, No.132), |
2 | entitled "An act providing for the regulation of home |
3 | improvement contracts and for the registration of certain |
4 | contractors; prohibiting certain acts; and providing for |
5 | penalties," providing for the definition of "home improvement |
6 | retailer"; further providing for procedures for registration |
7 | as a contractor and for prohibited acts; and establishing the |
8 | Home Improvement Account in the General Fund. |
9 | The General Assembly of the Commonwealth of Pennsylvania |
10 | hereby enacts as follows: |
11 | Section 1. Section 2 of the act of October 17, 2008 |
12 | (P.L.1645, No.132), known as the Home Improvement Consumer |
13 | Protection Act, is amended by adding a definition to read: |
14 | Section 2. Definitions. |
15 | The following words and phrases when used in this act shall |
16 | have the meanings given to them in this section unless the |
17 | context clearly indicates otherwise: |
18 | * * * |
19 | "Home improvement retailer." A person, whether or not the |
20 | person is registered under this act, who sells materials for use |
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1 | in home improvement contracts. |
2 | * * * |
3 | Section 2. Sections 4(a)(1)(i) and (ix), 5 and 9(10) of the |
4 | act are amended to read: |
5 | Section 4. Procedures for registration as a contractor. |
6 | (a) Application.-- |
7 | (1) A person shall apply to the bureau in writing or |
8 | electronically via a secure Internet connection, if permitted |
9 | by the bureau, on a form provided by the bureau. The |
10 | application shall include the following information: |
11 | (i) For an individual applicant, all of the |
12 | following: |
13 | (A) Name. |
14 | (B) Date of birth. |
15 | (C) Home address and home telephone number. |
16 | (D) Driver's license number [or], a copy of an |
17 | identification card issued by the state in which the |
18 | individual resides or other form of identification as |
19 | permitted by the bureau. |
20 | (E) Business name, address and telephone number. |
21 | (F) Federal employer identification number, if |
22 | applicable. |
23 | (G) Social Security number. |
24 | (H) All prior business names and addresses of |
25 | home improvement businesses operated by the |
26 | individual. |
27 | * * * |
28 | (ix) Proof of liability insurance covering personal |
29 | injury in an amount not less than $50,000 and insurance |
30 | covering property damage caused by the work of a home |
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1 | improvement contractor in an amount not less than |
2 | $50,000. For the purpose of this subparagraph, proof of |
3 | insurance may include information attested to by an |
4 | applicant that the applicant is self-insured and the |
5 | bureau shall develop forms for this purpose and make them |
6 | available to applicants. The bureau may determine the |
7 | sufficiency of the self-insurance and the manner in which |
8 | it is maintained in compliance with this act. |
9 | * * * |
10 | Section 5. Application fees. |
11 | (a) Amount.--Each application for a certificate for a home |
12 | improvement contractor or renewal of that certificate shall be |
13 | accompanied by a fee of $50. After completion of the application |
14 | and payment of the fee, the bureau shall issue the home |
15 | improvement contractor a registration certificate identifying |
16 | the name of the individual contractor, name and address of the |
17 | business and a registration number. Renewals shall be on a |
18 | biennial basis. |
19 | (b) Home Improvement Account.--A restricted revenue account |
20 | known as the Home Improvement Account is established in the |
21 | General Fund. All fees and penalties collected under this act |
22 | after the effective date of this subsection shall be deposited |
23 | into the Home Improvement Account. The funds in the Home |
24 | Improvement Account and any interest earned shall be |
25 | appropriated to the Attorney General for administering and |
26 | enforcing the provisions of this act and to protect consumers |
27 | with respect to home improvements through consumer education and |
28 | other means. |
29 | Section 9. Prohibited acts. |
30 | No person shall: |
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1 | * * * |
2 | (10) [For] (i) Except as provided under subparagraph |
3 | (ii), for a home improvement contract in which the total |
4 | price is more than [$1,000] $5,000, receive a deposit in |
5 | excess of: |
6 | [(i)] (A) one-third of the home improvement |
7 | contract price; or |
8 | [(ii)] (B) one-third of the home improvement |
9 | contract price plus the cost of special order |
10 | materials that [have been ordered] will be ordered, |
11 | as designated in the written contract. |
12 | (ii) The provisions of subparagraph (i) shall not |
13 | apply to a home improvement retailer, regardless of net |
14 | worth, who does all of the following: |
15 | (A) Posts an irrevocable letter of credit, |
16 | payable to the bureau for the use and benefit of |
17 | every person protected by the provisions of this |
18 | subparagraph in a form approved by the bureau, in the |
19 | amount of $100,000 per store location but not to |
20 | exceed $2,000,000 for a home improvement retailer |
21 | that has multiple stores. |
22 | (B) Ensures that its contractors are registered |
23 | under this act and have proof of liability insurance |
24 | as defined in Section 4(a)(1)(ix). |
25 | (iii) In the event of a dispute with a home |
26 | improvement retailer or a contractor authorized to do |
27 | work on behalf of the home improvement retailer, an owner |
28 | may file with the bureau a complaint against the home |
29 | improvement retailer and request a draw upon the home |
30 | improvement retailer's letter of credit. The following |
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1 | shall apply: |
2 | (A) Upon receipt of a complaint, the bureau |
3 | shall notify the home improvement retailer and |
4 | investigate the complaint. |
5 | (B) Upon a determination by the bureau that the |
6 | home improvement retailer is in default of the |
7 | contract, the bureau may, after providing notice to |
8 | the home improvement retailer, draw upon the |
9 | irrevocable letter of credit to satisfy a consumer's |
10 | complaint as part of its mediation process or a civil |
11 | action brought under the act of December 17, 1968 |
12 | (P.L.1224, No.387), known as the Unfair Trade |
13 | Practices and Consumer Protection Law. |
14 | (C) A home improvement retailer with two draws |
15 | on an irrevocable letter of credit within a two-year |
16 | period issued for the purposes of this subparagraph |
17 | shall be prohibited from posting an irrevocable |
18 | letter of credit for purposes of this subparagraph |
19 | for a period of five years beginning from the date of |
20 | the second draw and shall be required to comply with |
21 | subparagraph (i). |
22 | * * * |
23 | Section 3. This act shall take effect immediately. |
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