Government Corbett signed home improvement legislation, HB 1336, that establishes an account where all of the various fees paid by home improvement contractors will be deposited. This money, along with interest, may go to the Office of the Attorney General to administer and enforce the act, promote hiring of reputable contractors, and to protect and educate consumers about the home improvement law, according to a statement released by the bill’s sponsor State Rep. Bob Godshall, RMontgomery.
Currently, state law calls for a driver's license and a copy of an ID card issued by a state in order to register with the Attorney General's Bureau of Consumer Protection. This new law allows other types of identification to be accepted by the bureau so that individuals, for religious purposes, can properly register.
In addition, the new law sets a one-third maximum deposit for home improvement contracts valued above $5,000, rather than the $1,000 threshold under the current law, which has been proven to be unreasonable low for contractors.
Lastly, the new law defines "Home Improvement Retailer" in order to allow retail installers of all sizes the option to opt out of the one-third partial pay requirement of the act. A home improvement retailer may collect 100 percent of its costs if it posts an irrevocable letter of credit to the attorney general in the amount of $100,000 per store location but not to exceed $2 million for a home improvement retailer that has multiple stores.
Under the 2008 Home Improvement Consumer Protection Act, all contractors doing more than $5,000 of home improvement work annually must be registered with the state. Details of the contactors' registration must be placed on contracts, promotional materials and business cards so that consumers may use the information to reference a statewide database of complaints.