# New Pennsylvaina Law for all Contractors



## ABLE1 (Apr 30, 2005)

*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.

View attachment SB100 PN2484 FINAL.pdf


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


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## Patrick (Apr 12, 2006)

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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## Celtic (May 23, 2007)

It sounds just as silly as the one NJ has:


> * Notice of Implementation of Home Improvement Contractor Registration Regulations *
> Take notice that the Contractors' Registration Act (the "Act")....



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


*







(the "Act")*














​ 
LMAO
:laughing:

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


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## TigerFan (Apr 11, 2006)

Patrick said:


> We have that in MA It does several things
> 
> 
> 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.
> ...


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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## PA woodbutcher (Mar 29, 2007)

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 (Nov 23, 2007)

Thanks for the heads up and the links Able:thumbsup:


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## orson (Nov 23, 2007)

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


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## DetailHandyman (Jul 21, 2008)

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.


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## Tinstaafl (Jan 6, 2008)

DetailHandyman said:


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


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.


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## orson (Nov 23, 2007)

Tinstaafl said:


> 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.


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 (Jan 6, 2008)

orson said:


> 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....





> *Registration under this act shall preclude any requirement of payment of a fee or registration or licensing of any home improvement contractor by any political subdivision.* Political subdivisions shall be permitted to require building permits and local enforcement of the building code for that political subdivision, for which a reasonable fee may be charged. This provision does not affect a municipality's responsibilities or authority under the act of November 10, 1999 (P.L.491, No.45), known as the Pennsylvania Construction Code Act, or the requirements under section 302(e) of the act of June 2, 1915 (P.L.736, No.338), known as the Workers' Compensation Act, regarding workers' compensation. *This provision does not affect existing licensing standards in effect on the effective date of this act, with respect to electricians and plumbers and other trades, where licensing is conditioned on requirements of testing or possession of certificates obtained through specific training in electricity or plumbing or other trades.* 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.


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.



> 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.


Maybe because they don't actually do the work?


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## DetailHandyman (Jul 21, 2008)

orson said:


> I would also like to know why 50mil retailers are expempt.


They can afford better lobbyists.


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## DetailHandyman (Jul 21, 2008)

Tinstaafl said:


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


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



Tinstaafl said:


> 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.


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.



Tinstaafl said:


> 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.


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.


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## orson (Nov 23, 2007)

Tinstaafl said:


> Maybe because they don't actually do the work?


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




> 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 (Jan 6, 2008)

DetailHandyman said:


> 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.


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.



orson said:


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


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



> 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.


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>


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## DetailHandyman (Jul 21, 2008)

Tinstaafl said:


> 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.



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..."


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## T. D. G. (Nov 11, 2008)

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 (Mar 7, 2008)

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!!


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## precisionbuild (Nov 17, 2008)

billderboots said:


> tell me im wrong!!


I can't because you're not. 


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

I do wish PA had licensing....


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## duckdown (Dec 16, 2008)

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.


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