PRINTER'S NO. 857
No. 794 Session of 1999
INTRODUCED BY O'PAKE, BODACK, WAGNER, COSTA, KUKOVICH, MUSTO, SCHWARTZ, WAUGH, HELFRICK, STAPLETON, KASUNIC AND MELLOW, APRIL 12, 1999
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE, APRIL 12, 1999
AN ACT 1 Providing for home repair fraud; and imposing penalties. 2 The General Assembly of the Commonwealth of Pennsylvania 3 hereby enacts as follows: 4 Section 1. Short title. 5 This act shall be known and may be cited as the Home Repair 6 Fraud Act. 7 Section 2. Definitions. 8 The following words and phrases when used in this act shall 9 have the meanings given to them in this section unless the 10 context clearly indicates otherwise: 11 "Home repair." The fixing, replacing, altering, converting, 12 modernizing, improving of or making of an addition to any real 13 property primarily designed or used as a residence. The term 14 shall include the construction, installation, replacement or 15 improvement of driveways, swimming pools, porches, roofs, 16 kitchens, chimneys, chimney liners, garages, fences, fallout
1 shelters, central air-conditioning, central heating, boilers, 2 furnaces, hot water heaters, electrical wiring, sewers, plumbing 3 fixtures, storm doors, storm windows, awnings and other 4 improvements to structures within the residence or upon the land 5 adjacent thereto. The term shall not include: 6 (1) The sale, installation, cleaning or repair of 7 carpets. 8 (2) The sale of goods or materials by a merchant who 9 does not directly or through a subsidiary perform any work or 10 labor in connection with the installation or application of 11 the goods or materials. 12 (3) The repair, installation, replacement or connection 13 of any home appliance, including, but not limited to, 14 disposals, refrigerators, ranges, garage door openers, 15 television antennas, washing machines, telephones or other 16 home appliances when the person replacing, installing, 17 repairing or connecting the home appliance is an employee or 18 agent of the merchant that sold the home appliance. 19 (4) Landscaping. 20 "Person." Any individual, partnership, corporation, 21 business, trust or other legal entity. 22 "Residence." A single or multiple family dwelling, 23 including, but not limited to, a single family home, apartment 24 building, condominium, duplex or townhouse which is used or 25 intended to be used by its occupants as their dwelling place. 26 Section 3. Construction. 27 Nothing in this act shall be construed to apply to original 28 construction of a single or a multiple family residence. 29 Section 4. Home repair fraud. 30 (a) Fraud described.--A person commits the offense of home 19990S0794B0857 - 2 -
1 repair fraud when he knowingly enters into an agreement or 2 contract, written or oral, with a person for home repair, and he 3 knowingly does any of the following: 4 (1) Misrepresents a material fact relating to the terms 5 of the contract or agreement or the preexisting or existing 6 condition of any portion of the property involved, or creates 7 or confirms another's impression which is false and which he 8 does not believe to be true, or promises performance which he 9 does not intend to perform or knows will not be performed. 10 (2) Uses or employs any deception, false pretense or 11 false promises in order to induce, encourage or solicit a 12 person to enter into any contract or agreement. 13 (3) Enters into an unconscionable agreement or contract, 14 requiring payment to the contractor of at least $4,000. A 15 contract is unconscionable within the meaning of this act 16 when an unreasonable difference exists between the value of 17 the services, materials and work to be performed and the 18 amount charged for those services, materials and work. For 19 purposes of this section, prima facie evidence shall exist 20 that the contract or agreement is unconscionable if the total 21 payment called for by the contract or agreement is in excess 22 of four times the fair market value for those services, 23 materials and work. 24 (4) Misrepresents or conceals either his real name, the 25 name of his business or his business address. 26 (b) Additional fraudulent circumstances.--A person commits 27 the offense of home repair fraud when he knowingly does any of 28 the following: 29 (1) Damages the property of a person with the intent to 30 enter into an agreement or contract for home repair. 19990S0794B0857 - 3 -
1 (2) Misrepresents himself or another to be an employee 2 or agent of any unit of the Federal, State or municipal 3 government or any other governmental unit, or an employee or 4 agent of any public utility, with the intent to cause a 5 person to enter into, with himself or another, any contract 6 or agreement for home repair. 7 Section 5. Aggravated home repair fraud. 8 (a) General rule.--A person commits the offense of 9 aggravated home repair fraud when he commits home repair fraud 10 against a person 60 years of age or older. 11 (b) Defense.--A defense to subsection (a) does not exist 12 merely because the accused believed the victim to be a person 13 under 60 years of age. 14 Section 6. Penalties. 15 A person who violates this act is subject to the following 16 penalties: 17 (1) Violation of section 4(a)(1) or (2) shall constitute 18 a felony of the third degree when the amount of the contract 19 or agreement is more than $1,000, a misdemeanor of the first 20 degree when the amount of the contract or agreement is $1,000 21 or less and a felony of the third degree for a second or 22 subsequent offense when the amount of the contract or 23 agreement is $1,000 or less. If two or more contracts or 24 agreements for home repair exceed an aggregate amount of 25 $1,000 or more and the contracts or agreements are entered 26 into with the same victim by one or more of the defendants as 27 part of or in furtherance of a common fraudulent scheme, 28 design or intention, the violation shall constitute a felony 29 of the third degree. 30 (2) Violation of section 4(a)(3) shall constitute a 19990S0794B0857 - 4 -
1 felony of the second degree when the amount of the contract 2 or agreement is more than $10,000 and a felony of the third 3 degree when the amount of the contract or agreement is 4 $10,000 or less. 5 (3) Violation of section 4(a)(4) shall constitute a 6 felony of the third degree when the amount of the contract or 7 agreement is more than $1,000, a misdemeanor of the first 8 degree when the amount of the contract or agreement is $1,000 9 or less and a felony of the third degree for a second or 10 subsequent offense when the amount of the contract or 11 agreement is $1,000 or less. If two or more contracts or 12 agreements for home repair exceed an aggregate amount of 13 $1,000 or more and the contracts or agreements are entered 14 into with the same victim by one or more of the defendants as 15 part of or in furtherance of a common fraudulent scheme, 16 design or intention, the violation shall constitute a felony 17 of the third degree. 18 (4) Violation of section 4(b)(1) or (2) shall constitute 19 a felony of the third degree. 20 (5) Aggravated violation of section 4(a)(1) or (2) shall 21 constitute a felony of the first degree when the amount of 22 the contract or agreement is more than $1,000, a felony of 23 the third degree when the amount of the contract or agreement 24 is $1,000 or less and a felony of the second degree for a 25 second or subsequent offense when the amount of the contract 26 or agreement is $1,000 or less. If two or more contracts or 27 agreements for home repair exceed an aggregate amount of 28 $1,000 or more and the contracts or agreements are entered 29 into with the same victim by one or more of the defendants as 30 part of or in furtherance of a common fraudulent scheme, 19990S0794B0857 - 5 -
1 design or intention, the violation shall constitute a felony 2 of the first degree. 3 (6) Aggravated violation of section 4(a)(3) shall 4 constitute a felony of the first degree when the amount of 5 the contract or agreement is more than $10,000 and a felony 6 of the second degree when the amount of the contract or 7 agreement is $10,000 or less. 8 (7) Aggravated violation of section 4(b)(1) or (2) shall 9 constitute a felony of the second degree. 10 Section 7. Repeals. 11 All acts and parts of acts are repealed insofar as they are 12 inconsistent with this act. 13 Section 8. Effective date. 14 This act shall take effect in 60 days. A7L12JLW/19990S0794B0857 - 6 -