HARRISBURG PA – A state law that so far this year has robbed Lower Pottsgrove (PA) Township coffers of about $15,000 in unrealized income actually seems to be doing what it’s supposed to: reducing the number of complaints about home improvement contractors working in Pennsylvania.
Complaints to the state regarding unfinished or shoddy projects done by unscrupulous contractors “have dipped considerably” this year, thanks to the Home Improvement Consumer Protection Act passed in 2009, the Harrisburg Patriot-News newspaper reported Monday (Sept. 27, 2010).
The law requires all contractors doing $5,000 or more per year in home improvements to register with the state Attorney General’s office at a cost of $50 bi-annually. It also demands that contractors use written contracts and give customers information about their right to cancel a contract, projects’ start-dates and end-dates, total cost, scope of work and materials involved. It limits up-front payments,too.
The law’s results have been dramatic. “In 2009 there were 3,057 complaints about contractors,” Patriot-News reporter Matthew Kemeny wrote — “the highest in three years, state records showed. This year, there have only been 1,402 complaints to date, according to the data.”
With more than 71,000 people registered, Kemeny added, the state also has made about $3.5 million from the legislation.
On the other hand, it’s taken a toll on revenues in municipalities like Lower Pottsgrove, which for years operated a township-wide contractor registration system. Finance Director Michele Christman told the Board of Commissioners in July (2010) that the township, which earned $21,000 from registrations during 2009, by this mid-year had brought in only $5,100.
That’s one of several issues commissioners must resolve as they continue to work on assembling the township’s 2011 budget. The board’s budget committee meetings, which are open to the public, are next scheduled for Oct. 5 and 20, both at 4:30 p.m. in the municipal building, 2199 Buchert Rd., Pottstown PA.
In the Harrisburg area, contractors cited by Kemeny praised the law as an effective tool in weeding out shoddy contractors. Others said they view it as just another tax on small businesses.
“Violations of any of the requirements can trigger a civil lawsuit by the Attorney General’s office, with fines and penalties of up to $1,000 per violation (up to $3,000 for violations involving a senior citizen). The state has filed charges against 27 contractors since the law was put in place,” the newspaper reported.
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