Newsletters
Insights and Developments in the Law Winter 2008
Home Improvement Consumer Protection Act
By: Glenn J. Smith, Esquire
On October 17, 2008, the Home Improvement Consumer Protection Act was signed into law in Pennsylvania. The Act provides for sweeping regulation of the home improvement industry including mandatory registration of certain contractors who are engaged in a home improvement business. The Act also provides for an expansion of consumer protection rights, as well as significant penalties for violations under the Act. This article is the first of two regarding this Act. The focus of this article is the effect upon home improvement contractors. The second installment will focus on the consumer protections afforded under the Act.
This Act generally applies to all that own and operate a home improvement business or who undertake, offer to undertake or agree to perform any home improvements. "Home improvements" are defined under the Act quite broadly and, by way of example, include driveways, pools, security systems, roofs, fences, sheds, most landscaping, and the installation of central heating or air conditioning, storm windows or awnings for which the total cash price of all work agreed upon is more than $500.00. New home construction has been specifically excluded from the Act, as have services furnished for commercial or business use that are not connected to a private residence.
All applicable contractors must obtain certification from the Bureau of Consumer Protection before holding oneself out as a contactor or performing any home improvement. In addition to providing general contact information, the application process requires the disclosure of a myriad of information including certain criminal convictions, bankruptcy filings, and final civil judgment entered against the applicant. Proof of liability and property damage insurance in an amount not less than $50,000.00 is also required.
Upon approval, a registration number will be issued to the contractor. That number must then be included in all advertisements, as well as all contracts, estimates and proposals. Furthermore, no home improvement contract shall be deemed valid or enforceable unless it is in writing and contains the registration number, in addition to an extensive list of other requirements, including, but not limited to, a description of the work to be performed, the materials to be used, a set of specifications that cannot be changed without a written change order signed by all parties involved, and the names, addresses and telephone numbers of all subcontractors on the project.
Failure to comply with the Act's provisions may result in the inability to further engage in the home improvement industry, the voidance of contracts and under certain circumstances, the possibility of felony criminal charges.
The requirements set forth in the Act are to take effect July 1, 2009. Therefore, if you are engaged in the home improvement industry, it is strongly recommended that you meet with your legal counsel to ensure compliance with the Act.
New Form 990 Regulations Published By the IRS for Non-Profits
By: Margaret "Mieke" Driscoll, Esquire
If you work for a non-profit, sit on the board of a non-profit or are a concerned citizen interested to know if a non-profit organization is complying with reporting requirements, you should be aware that the Internal Revenue Service has revamped the Form 990 and published new instructions for the completion of that form (the reporting form for tax exempt organizations). These new rules go in to effect when non-profits file their 2008 tax returns/reports.
The impetus behind the revised form is increased transparency and accountability to the public of non-profits. They require that, generally, more information be divulged about the inner workings of the organization. The new Form 990 includes, among other new features, detailed questions about compensation of officers and employees, fund-raising sources, conflicts of interest and ethics policies.
One of the largest changes is that previously, whereas only organizations with gross receipts exceeding $25,000 were required to file a 990, all non-profits must file some version of the 990 - though it is simplified if your receipts are less than $25,000. Those smaller organizations must now file what is called a 990-N electronically to confirm that they still exist and carry on activities.
Though there is no financial penalty for failure to file, a group that fails to file a Form 990 (whatever version is required) for three consecutive years will loose its tax exempt status.
Churches, missionary societies, certain church schools, governmental units and organizations filed under 501(c)(1) are still not required to file a 990 of any type. Private foundations must continue to file the 990-PF regardless of income level.
Regardless of which form your organization is required to file, all such reports are due to the IRS 15 days after the close of the organization's fiscal year. The revised instructions for all versions of Form 990 are available at www.irs.gov. If you have any questions regarding the reporting requirements of your non-profit organization or any other questions related to the governance of your non-profit, consult your attorney.
Protective Orders
By: Richard K. Konkel, Esquire
Those of us who are over 50 years old may remember Pennsylvania's "peace bonds," orders issued by justices of the peace requiring that a troublesome person leave others in peace. Peace bonds were abolished many years ago and were later replaced in part with the Protection from Abuse Act.
The Pennsylvania Protection from Abuse Act, originally enacted in 1978, gives local district judges and the local county court judges the power to quell domestic violence by forbidding contact between "family or household members, sexual or intimate partners or persons who share biological parenthood." The Act further defines "family or household members" as "spouses or persons who have been spouses, persons living as spouses or who lived as spouses, parents and children, other persons related by consanguinity or affinity, current or former sexual or intimate partners or persons who share biological parenthood."
In a recent case, a sister who co-owned a family business with her brother secured a Protection Order in county court against him after he forced his way into her office and scuffled with her. The brother appealed, claiming that they were not members of the same household and that their dispute arose from their business problems and was not related to any domestic violence.
The appeals court disagreed and upheld the Protection Order. The court noted that previous versions of the statute did limit Protection from Abuse proceedings to persons living in the same household. But the court reviewed a long series of amendments to the Act that progressively expanded it to apply to persons related by blood, by marriage, by intimate relationship, or by sharing children, without regard to whether they reside under the same roof. Generally, the Protection from Abuse Act is a response to domestic violence, and the courts strive to limit Protection from Abuse proceedings to those that arise from personal relationships. When violence erupts between neighbors, strangers, or other persons who do not fall within the relationships identified in the Protection from Abuse Act, the courts simply cannot issue protective orders.
Pennsylvania's Crimes Code does serve in some situations to bridge the gap between the Protection from Abuse Act and the former peace bond system. District justices and county judges hearing criminal cases can issue orders that a criminal defendant or anyone else involved in a criminal case is forbidden from further contact with another person and must maintain a specified geographic distance from the other person.
Firm Updates
Awards and Honors
CGA Law Firm was voted Best Attorney in Central PA Magazine's 2008 Hot list. Readers were able to vote for their favorite area businesses and events and winners were published in the June 2008 Central PA Magazine issue. Thank you for voting our firm as the best in York for legal services.
The Goodridge Freedom Award has been awarded to CGA Law Firm for Business Excellence. Attorney Gary Gilbert was on hand at the Emancipation Proclamation Celebration to accept the award on behalf of CGA Law Firm. The award is given annually to a York County business with a long-time commitment to civil rights.
Attorney Lawrence V. Young was honored as the outgoing president of the Middle District Bankruptcy Bar Association at its annual meeting in Hazelton. Attorney Young is the first attorney to be president of the organization for two separate terms, having previously been president in 2005.
Appointments
Anne E. Zerbe has been elected President of the Board of Directors for Family First Health. A non-profit, federally qualified health center, Family First Health provides a broad range of primary medical, dental and social services in York and Adams Counties.
Speaking Engagements and Events
On December 12, 2008 in Harrisburg, Thomas D. O'Shea will be presenting at the National Business Institutes' Financial Settlement Strategies for Your Divorce Clients conference on "Ethical Perils in Divorce Practice". Attorney O'Shea will discuss controlling client relations and recognizing dishonesty; determining when withdrawal of counsel is appropriate; and avoiding conflicts of interest. To learn more go to www.nbi-sems.com.
Benjamin L. Pratt will be presenting on December 10, 2008 at the National Business Institutes' Collection Law Tips and Strategies conference on "Collecting the Judgment - Methods that Work". Topics to be covered include wage and bank garnishments; property execution; and foreclosures. He will also present on "Essential Bankruptcy Issues Impacting Collection Law" at the conference. Attorney Pratt will discuss creditor's options; filing of claims; and avoidance actions. Attorney Glenn J. Smith will also be presenting at the conference on "Locating Assets Before and After the Judgment". Topics to be covered include identification of specific records; use of investigators; and when to involve the court. To find out more about this conference visit the National Business Institutes web site at www.nbi-sems.com.
Lawrence V. Youngrecently spoke on bankruptcy topics at the "13th Annual PBI Bankruptcy Institute" in Mechanicsburg. He also spoke to the Pennsylvania Association of Tax Collectors' Annual meeting in Lancaster on the topic of "Bankruptcy and Tax Collection". A bankruptcy trustee, attorney Young also spoke at the Annual Region III meeting of the Office of the United States Trustee's annual training on cases involving income calculations under the new Bankruptcy Code Amendments.
On October 4, Downtown Inc. held their first annual kickball tournament. Force Majeure, CGA's kickball team, placed 3rd out of a field of 18, making it to the semifinal round. It was a day of sun, fun, kicks, and heckling. The event hosted by the Sovereign Bank Stadium was played in the outfield area, with refreshments nearby. In the opening round, the Force won 3 of 4 games. The team then went on to win again before falling to the carpet layers (and kickball slayers) of Wecker's Carpet.
CGA Law Firm's Rick Hansberry has been featured in the current issue of Fine Living Lancastermagazine as a screenwriter. Paralegal by day, Disc Jockey on the weekends, and a screenwriter at heart, Rick has been writing movies for most of his life. Most recently, his short film Chemistry starring Jenn Gotzon, took third place in the First Glance Online Film Festival and was featured as a part of a showcase for its rising star at The Wildwood By The Sea Film Festival in Wildwood, New Jersey.
Firm Announcements
Marisa G. Button Joins CGA Law Firm
Marisa G. Button joined the firm in August 2008 as a member of the litigation group. She concentrates her practice in the areas of civil litigation and immigration law. Marisa is devoted to helping individuals, families and businesses with all types of immigration matters including immigrant and non-immigrant visa applications, professional visas applications, and naturalization. She also provides legal counsel on applications for extensions of stay, change of status and adjustment of status.
Marisa graduated from Dickinson College with a B.A. degree in political science. She completed her J.D. from the University of Baltimore School of Law, cum laude in 2007. Marisa previously served as a judicial law clerk to the Honorable Judge John C. Uhler in the Court of Common Pleas of York County, and as an assistant coach to University of Baltimore School of Law's National Trial Competition trial team.
Marisa is a member of the York County Bar Association and the American Immigration Lawyers Association.
Leanne M. Miller Joins CGA Law Firm
Leanne M. Miller concentrates her practice in family law and estate planning. She counsels individuals and couples in a wide rage of family matters including adoption, divorce, child custody and support. Understanding the importance of planning for the future, Leanne advises individuals in the many aspects of estate planning from drawing up a simple will to setting up a trust.
Prior to joining the firm, Leanne was a professor at PennState University, York campus, where she taught chemistry. She received her B.S. from Shippensburg University with a major in chemistry and went on to receive her Ph.D. in chemistry from the University of Notre Dame. She completed her J.D. from Widener University School of Law in 2008.
Leanne is a member of the York County Bar Association and the Herbert B. Cohn Inn of Courts. She is licensed to practice in Pennsylvania.
Disclaimer: Actual resolution of legal issues depends upon many factors, including variations of facts and state laws. This newsletter is not intended to provide legal advice on specific subjects, but rather to provide insight into legal developments and issues. The reader should always consult with legal counsel before taking action on matters covered by this newsletter.
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