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For Immediate Release
October 1, 2009
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House Committee Endorses Home Improvement Consumer Protection Law Changes
The House Consumer Affairs Committee yesterday approved a bill sponsored by
Senator Tommy Tomlinson (R-Bucks) that would make several changes and
improvements to the state’s new Home Improvement Consumer Protection Act of
2008, which he sponsored.
Tomlinson, who chairs the Senate Consumer Protection and Professional
Licensure Committee, said the law will more strictly oversee home improvement
contractors and give consumers more information before they hire a home repair
operator.
The Home Improvement Consumer Protection Act allows homeowners to search a
complete list of contractors online or by calling a toll-free number. The law
requires that all contractors who perform at least $5,000 worth of home
improvements per year register with the Attorney General's Office.
"Senate Bill 973 will make improvements to a strong consumer protection law
that will give homeowners more information and more resources when making home
repairs," he said. "This law will ensure that consumers are protected from scam
artists and have recourse if they are not happy with the work performed."
Tomlinson said Senate Bill 973 would define a "home improvement retailer," as
a person, who sells materials for use in home improvement contracts, regardless
of whether he or she is registered. Under present law, applicants must show
proof of insurance. It would amend the law to permit proof of insurance to
include information indicating that the applicant is self insured.
The legislation would also create a restricted revenue account known as the
Home Improvement Account in the State Treasury. All fees and penalties
collected under this act prior to the implementation of this bill would be
deposited into this account.
The bill would also raise the amount of the contract level, for which the
contractor may only collect one third of the contract price from $1,000 to
$5,000.
A new provision would be added for home improvement retailers to permit them
to collect the total amount of the contract. Home improvement retailers would
be permitted to post an irrevocable letter of credit payable to the bureau in
the amount of $100,000 per store location, but may not exceed $1,000,000 for a
home improvement retailer that has multiple stores. These retailers must verify
that their contractors are registered under this act and have proof of liability
insurance.
Under this provision, a home owner who has a dispute with a home improvement
retailer or its contractor may file a complaint with the bureau. If the bureau
finds that the home improvement retailer is in default of the contract, the
bureau may draw upon the letter of credit.
Contact: Fran Cleaver
(717) 787-5072 |
