New Pennsylvaina Law For All Contractors

ABLE1

This is a huge FYI for all Pennsylvania Contractors. If you don't already know read on. For more info see .pdf files at bottom.

The Home Improvement Contractor Registration Act, recently signed into law by Governor Rendell. The Act takes effect on July 1, 2009.

This Act will have no foreseeable impact on code administration and enforcement. However, it may have a modest budget impact on those municipalities which currently have an ordinance requiring the registration or licensing of home improvement contractors....more about this latter.

A few summary points about the Act:

All home improvement contractors must register with the State Attorney General’s Office, Bureau of Consumer Protection by July 1, 2009. They must register every two years. They are exempt from registering if they have gross revenues of less than $5000.00 from home improvement contracting during the most recent taxable year.

A contract must be signed between the contractor and homeowners for all home improvements valued at $500 or more. Most emergency repairs are excluded.

Each contract must contain a significant number of specific clauses and protections for the consumer. Those requirements are spelled out in the Home Improvement Contractor Registration Act, recently signed by Governor Rendell. The Pennsylvania Builders Association is developing model contracts for its members that will comply with all of the statutory requirements.

Failure to comply with this Act may subject home improvement contractors to civil and criminal penalties, including, but not limited to, Home Improvement Contractor Fraud. Each county District Attorney will have the authority to take action against home improvement contractors not complying with the Act.

Home improvement contractors will have to advertise their state registration number in all public advertising.

SB100 PN2484 FINAL.pdf

1f8a83cc-6952-498d-a507-15767336a56c[1].pdf

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ABLE1

Patrick

We have that in MA It does several things

One more bill for legit contractors to pay

One more way for prick building departments to be able to screw you over if you don't have their ridiculous language in your contracts

Gives homeowners a false sense of security

And my favorite, gives all the un licensed hacks a number that they can run around with claiming that its the same as a builders license.

In MA they went so far as to call it a "home improvement contractor License" All the hacks run around claiming to be licensed now, when in reality all they have is a piece of paper that costs $100 and not a "construction supervisors license" which actually requires a slight amount of effort to get.

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Originally Posted by Celtic
Like I said...I'm sure you are very good at what you do ~ whatever that is and where ever it happens.

Celtic

It sounds just as silly as the one NJ has:

In defense of the Great State of New Jersey, they did manage to get one thing right about this:



LMAO


More here if you care to compare:
http://www.nj.gov/oag/ca/contractors/contractor.htm

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TigerFan

Man we have major issues with that here - 8 million hacks claiming they are "licensed" and showing the homeowner their $25 state charter number for registering their business name in the state.

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http://www.bayoucontracting.com

PA woodbutcher

Thanks Able. I knew it was coming and I can see most of the percieve pros and cons....Time will tell. Enforcement will be key, if not. it will be mostly cons.

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orson

Thanks for the heads up and the links Able

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orson

Reading through the legalese: Only required to carry 50k/50k personal injury/property damage liability coverage; what a joke!

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DetailHandyman

Thanks for the info ABLE. I hadn't heard anything about this in the local news.

I didn't see any info on the state or AG website about how to register. Any details on that?

Orson...agreed...50K policy is a joke. Should be 1M minimum.

Tinstaafl

I don't think it's been set up yet. After all, it doesn't kick in until half a year from now.

As much as I hate to see ANY addition to the morass of laws and regulations we all have to wade through daily (not just contractors; everyone), this could be a good thing. It should weed out at least a couple of hacks.

I'm curious to see if I'm interpreting correctly that we'll no longer need to deal with the PITA of registering individually (with the accompanying fees) in the larger communities like Harrisburg, Pottstown etc.

orson

I didn't see anything specific one way or the other though I did gloss over a section that mentioned this not affecting certifications etc....

I think it is probably wishful thinking that municipalities won't be able to whack us for licensing fees.

I would also like to know why 50mil retailers are expempt. They should be subject to the same laws as anyone else and able to lose their registration privelege just like everyone else.

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Tinstaafl

The bold text above is what I was referring to. We'd still need specific certifications, but hopefully get relief from the plain old nuisance of multiple licenses to do the same work in different localities. Wait... that would be government displaying intelligence. Never mind.

Maybe because they don't actually do the work?

DetailHandyman

They can afford better lobbyists.

DetailHandyman

Knowing how slowly government typically moves, six months isn't much time.

Hopefully it weeds out a lot of them. Unfortunately, many of my jobs fall under the $500 limit, so my "competition" may not be impacted enough.

I read it the same way. That is probably why the mention of a "modest budget impact on those municipalities which currently have an ordinance".
No doubt they will figure a way to make up the lost income.

orson

They subcontract installers to do the work, therefore they are contractors.

Quote:

This provision does not affect LOCAL REGULATIONS OR standards for liability insurance adopted by a municipality prior to January1, 2006, and which are in effect on the effective date of this section.

This says to me that if you had a pay to play local license in effect before the legislation was passed you can continue it.

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Tinstaafl

Oof! I hope you're young. Scratching out a living on jobs that size is just plain exhausting.

I do see what you mean though. Sub-$500 jobs often aren't even worth writing up a contract, and can fly under the radar pretty easily. Still, knowledgeable/careful homeowners just might have enough sense to ask for a cert # before hiring someone.

Point taken. But they make so much money that they MUST be honest. Right?

Interpretation is somewhat open there. You can't tell whether they're referring to regulations in general, or only those pertaining to liability insurance. But this rain cloud that lives over my head says you're probably right. <sigh>

DetailHandyman

No, I'm what you'd call early middle aged. I've found a good niche and it's working well for me. No Porsche in the driveway, but no debt either.


I'm hoping that the HO will be asking for cert#'s. Of course, many will not have heard of this either.
I may have to work that into the conversation when I get an estimate shopper..."oh, the other guy isn't registered with the state as required by law? Hmmm..."

T. D. G.

Just another piece of decaying meat that these vultures. are ripping off my now rotting carcus
For once its not the money. Its the power they now have over us.
I can prove this power thing. I once new that a permit would not be required at a certain twp. but I called anyway. This was my answer "no" but you will still have to show us your state licence so we can issue you a no permit placard to display in the owners window.
It wont be long before you will hear----YOUR PAPERS PLEASE!

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billderboots

Whats happening here folks is just another way for big brother to drive the little man out and go to work for the huge corporations or take a government job. the government wont be happy till we all work for them.
that way they totally control us. They know that for years now contracts that were private along with cash money they couldnt get their fingers on it. now this way they will be able to keep an eye on each and every penny made in the private sector. tell me im wrong!!

precisionbuild

I can't because you're not.


But if it makes you feel better...you're wrong.

I do wish PA had licensing....

duckdown

1. The insurance limits need to be way higher.
2. This act will benefit small businesses and will filter out lots of illegal activity.
3. Having a written contract protects both parties.