HOUSE BILL No. 6539


     December 3, 2002, Introduced by Reps. Scranton and Lemmons and referred to the Committee on Insurance and Financial
Services.


        A bill to amend 1965 PA 332, entitled

   "Home improvement finance act,"

   by amending section 422 (MCL 445.1422).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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             Sec. 422.  (1) The attorney general or the prosecuting

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        attorney of  any  A county may bring an action in the name of

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         the  THIS state  to restrain or prevent any violation of this

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        act or any continuance of any such violation.  Such  FOR 1 OR

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        MORE OF THE FOLLOWING:

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             (A) INJUNCTIVE RELIEF AGAINST A VIOLATION OR CONTINUING VIO-

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        LATION OF THIS ACT.

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             (B) INJUNCTIVE RELIEF AGAINST AN INDIVIDUAL WHO IS NOT

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        LICENSED UNDER ARTICLE 24 OF THE OCCUPATIONAL CODE, 1980 PA 299,

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        MCL 339.2401 TO 339.2412.




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             (C) AN ORDER COMPELLING SATISFACTORY COMPLETION OF A HOME

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        IMPROVEMENT CHARGE AGREEMENT, HOME IMPROVEMENT CHARGE SALE, HOME

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        IMPROVEMENT INSTALLMENT CONTRACT, OR HOME IMPROVEMENT INSTALLMENT

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        SALE.

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             (D) RESTITUTION.

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             (2) AN action  , in the case of  BROUGHT BY the attorney

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        general  ,  shall be brought in the circuit court of Ingham

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        county, upon which jurisdiction  thereof  is conferred.  , and,

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        in the case of  AN ACTION BROUGHT BY the prosecuting attorney 
    ,

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        SHALL BE BROUGHT in the county where the defendant resides  ,  OR

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        has his OR HER principal place of business  ,  or where the act

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        sought to be restrained has been  ,  PERFORMED or is about to be

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         ,  performed.

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             (3)  (2)  A person who violates  any  AN order or decree

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        entered  , or injunction issued, pursuant to  OR AN INJUNCTION

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        ISSUED BY THE CIRCUIT COURT IN AN ACTION BROUGHT UNDER subsection

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        (1) is  liable  SUBJECT to a civil  penalty  FINE of not more

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        than $1,000.00.  , in the discretion of the court, to be recov-

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        ered as judgments are now by law recovered.  For the purpose of

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        this section, the circuit court entering  any  AN order or judg-

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        ment, or issuing  any  AN injunction, under  the provisions of

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        this section may retain jurisdiction, and the cause may be

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        continued.

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             (4) A PERSON WHO SUFFERS LOSS AS A RESULT OF A VIOLATION OF

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        THIS ACT MAY BRING AN ACTION AGAINST A HOME IMPROVEMENT CONTRAC-

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        TOR FOR ACTUAL, CONSEQUENTIAL, EXEMPLARY, AND PUNITIVE DAMAGES

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        AND REASONABLE ATTORNEY FEES AND COSTS.



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             (5) A PERSON WHO SUFFERS LOSS AS A RESULT OF A VIOLATION OF

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        THIS ACT IS ENTITLED TO STATUTORY DAMAGES IN THE AMOUNT OF

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        $1,000.00 FOR EACH VIOLATION IN ADDITION TO ANY DAMAGES, FEES, OR

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        COSTS IMPOSED UNDER SUBSECTION (4).

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             (6) A PERSON WHO SUFFERS LOSS AS A RESULT OF A VIOLATION OF

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        THIS ACT MAY BRING A CLASS ACTION ON BEHALF OF PERSONS RESIDING

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        OR INJURED IN THIS STATE FOR A VIOLATION OF THIS ACT FOR ACTUAL,

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        CONSEQUENTIAL, EXEMPLARY, AND PUNITIVE DAMAGES.

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             (7) IF A HOME IMPROVEMENT CONTRACTOR VIOLATES THIS ACT, A

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        LIEN ACQUIRED BY THE HOME IMPROVEMENT CONTRACTOR OR A LIEN

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        ACQUIRED BY ANY LENDER WITH WHOM THE HOME IMPROVEMENT CONTRACTOR

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        ARRANGES FINANCING, AS A RESULT OF FINANCING THE TRANSACTION OR

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        BY OPERATION OF LAW IS VOID.  AS USED IN THIS SUBSECTION,

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        "LENDER" MEANS A BANKING INSTITUTION, A FINANCING AGENCY, OR A

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        PERSON WHO, DIRECTLY OR INDIRECTLY, MAKES OR OFFERS TO MAKE LOANS

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        FOR THE MODERNIZATION, REHABILITATION, REPAIR, ALTERATION, OR

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        IMPROVEMENT OF REAL PROPERTY.

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             (8) A HOME IMPROVEMENT CHARGE AGREEMENT, HOME IMPROVEMENT

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        CHARGE SALE, HOME IMPROVEMENT INSTALLMENT CONTRACT, OR HOME

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        IMPROVEMENT INSTALLMENT SALE UNDER THIS ACT THAT IS NEGOTIATED,

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        SIGNED, OR PERFORMED BY A HOME IMPROVEMENT CONTRACTOR WITHOUT A

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        LICENSE IS VOID AND UNENFORCEABLE BY THE HOME IMPROVEMENT CON-

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        TRACTOR OR AN ASSIGNEE OF THE HOME IMPROVEMENT CONTRACTOR.  ALL

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        MONEY PAID BY A PERSON PURSUANT TO THE VOID AND UNENFORCEABLE

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        HOME IMPROVEMENT CHARGE AGREEMENT, HOME IMPROVEMENT CHARGE SALE,

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        HOME IMPROVEMENT INSTALLMENT CONTRACT, OR HOME IMPROVEMENT





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        INSTALLMENT SALE SHALL BE REFUNDED BY THAT HOME IMPROVEMENT

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        CONTRACTOR WITHOUT A LICENSE.

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             (9) FOR PURPOSES OF THIS SECTION, A HOME IMPROVEMENT CON-

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        TRACTOR IS LIABLE FOR THE ACTS OF ANY AGENT, SUBCONTRACTOR,

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        DIRECTOR, EMPLOYEE, MANAGER, OFFICER, PARTNER, OR SALESPERSON OF

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        THE HOME IMPROVEMENT CONTRACTOR THAT RESULTS IN A VIOLATION OF

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        THIS ACT, UNLESS THE COURT FINDS EITHER OF THE FOLLOWING:

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             (A) THE EMPLOYEE WAS ACTING OUTSIDE OF THE SCOPE OF THE

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        EMPLOYMENT.

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             (B) THE HOME IMPROVEMENT CONTRACTOR OR ANY AGENT, DIRECTOR,

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        EMPLOYEE, MANAGER, OFFICER, PARTNER, OR SALESPERSON OF THE HOME

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        IMPROVEMENT CONTRACTOR USED REASONABLE MEASURES TO PREVENT THE

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        VIOLATION BUT WAS UNABLE TO PREVENT THE VIOLATION.

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             (10)  (3)  Any penalty directed to be paid under  the provi-

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        sions of  this section shall be in addition to any penalty

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         which  THAT may be imposed under  the provisions of  section

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        421.

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             Enacting section 1.  This amendatory act does not take

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        effect unless all of the following bills of the 91st Legislature

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        are enacted into law:

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             (a) Senate Bill No. ____ or House Bill No. 6540 (request

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        no. 06266'01).

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             (b) Senate Bill No. ____ or House Bill No. 6541 (request

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        no. 06266'01 a).

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             (c) Senate Bill No. ____ or House Bill No. 6542 (request

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        no. 06266'01 b).





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             (d) Senate Bill No. ____ or House Bill No. 6543 (request

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        no. 06266'01 c).

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             (e) Senate Bill No. ____ or House Bill No. 6544 (request

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        no. 06266'01 d).

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             (f) Senate Bill No. ____ or House Bill No. 6545 (request

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        no. 06266'01 e).

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             (g) Senate Bill No. ____ or House Bill No. 6546 (request

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        no. 06266'01 f).








































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