act-1996-0-104•Pennsylvania Act 1996-104 — JUDICIARY AND JUDICIAL PROCEDURE (42 PA.C.S.) - OMNIBUS AMENDMENTS
Pennsylvania Act 1996-104 — JUDICIARY AND JUDICIAL PROCEDURE (42 PA.C.S.) - OMNIBUS AMENDMENTS
act-1996-0-1041996 Pa. Act 104Law
Act text
JUDICIARY AND JUDICIAL PROCEDURE (42 PA.C.S.) - OMNIBUS AMENDMENTS
Act of Jul. 11, 1996, P.L. 607, No. 104 Cl. 42
Session of 1996
No. 1996-104
SB 1374
AN ACT
Amending Title 42 (Judiciary and Judicial Procedure) of the
Pennsylvania Consolidated Statutes, providing for the
unauthorized practice of law and for reappointment of
district justice; further providing for the Judicial Computer
System Augmentation Account and for scope of chapter relating
to limitation of time; providing for assignment to orphans'
court; regulating rental purchase transactions; and making a
repeal.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2524(a) of Title 42 of the Pennsylvania
Consolidated Statutes is amended and the section is amended by
adding a subsection to read:
§ 2524. Penalty for unauthorized practice of law.
(a) General rule.--Except as provided in subsection (b), any
person, including, but not limited to, a paralegal or legal
assistant, who within this Commonwealth shall practice law, or
who shall hold himself out to the public as being entitled to
practice law, or use or advertise the title of lawyer, attorney
at law, attorney and counselor at law, counselor, or the
equivalent in any language, in such a manner as to convey the
impression that he is a practitioner of the law of any
jurisdiction, without being an attorney at law or a corporation
complying with 15 Pa.C.S. Ch. 29 (relating to professional
corporations), commits a misdemeanor of the third degree[.] upon
a first violation. A second or subsequent violation of this
subsection constitutes a misdemeanor of the first degree.
* * *
(c) Injunction.--In addition to criminal prosecution,
unauthorized practice of law may be enjoined in any county court
of common pleas having personal jurisdiction over the defendant.
The party obtaining such an injunction may be awarded costs and
expenses incurred, including reasonable attorney fees, against
the enjoined party. A violation of subsection (a) is also a
violation of the act of December 17, 1968 (P.L.1224, No.387),
known as the Unfair Trade Practices and Consumer Protection Law.
Section 2. Title 42 is amended by adding a section to read:
§ 3132.1. Reappointment of district justice.
Notwithstanding any provisions of this title to the contrary,
a district justice who resigns from office may not be
reappointed to his or her unexpired term.
Section 3. Section 3733 of Title 42 is amended by adding a
subsection to read:
§ 3733. Deposits into account.
* * *
(c) Expiration of section.--The provisions of this section
shall expire when the sum of $100,000,000 has been deposited
into the Judicial Computer System Augmentation Account. The
$100,000,000 shall be the sum of all deposits into the Judicial
Computer System Augmentation Account beginning on and after June
29, 1990.
Section 4. Section 5501 of Title 42 is amended to read:
§ 5501. Scope of chapter.
(a) General rule.--An action, proceeding or appeal must be
commenced within the time specified in or pursuant to this
chapter unless, in the case of a civil action or proceeding, a
different time is provided by this title or another statute or a
shorter time which is not manifestly unreasonable is prescribed
by written agreement.
(b) Uniform Commercial Code.--The provisions of Title 13
(relating to commercial code), to the extent that they are
inconsistent with this chapter, shall control over the
provisions of this chapter.
(c) Equitable matters.--[This chapter is applicable to
equitable matters, but nothing] Nothing in this chapter shall
modify the principles of waiver, laches and estoppel and similar
principles heretofore applicable in equitable matters.
Section 5. Section 6351 of Title 42 is amended by adding a
subsection to read:
§ 6351. Disposition of dependent child.
* * *
(i) Assignment to orphans' court.--A judge who adjudicated
the child dependent or who has conducted disposition review
hearings or other dependency proceedings involving the child may
be assigned to the orphans' court division for the purpose of
hearing proceedings relating to any of the following:
(1) Involuntary termination of parental rights of a
parent of the dependent child under 23 Pa.C.S. Ch. 25 Subch.
B (relating to involuntary termination).
(2) A petition to adopt the dependent child.
Section 6. Title 42 is amended by adding a chapter to read:
CHAPTER 69
PARTICULAR RIGHTS AND IMMUNITIES
Sec.
6901. Short title of chapter.
6902. Definitions.
6903. Required disclosures in connection with rental-purchase
agreement.
6904. Prohibited provisions of agreement.
6905. Lessee's right to acquire ownership.
6906. Lessee's right to reinstate agreement after termination.
6907. Rent reduction.
6908. Advertising and display of property.
6909. Lessor's liability for noncompliance.
6910. Limitations on lessor's liability.
6911. Conflict with other law.
§ 6901. Short title of chapter.
This chapter shall be known and may be cited as the Rental-
Purchase Agreement Act.
§ 6902. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Advertisement." A written, visual or oral communication
made to a lessee or prospective lessee by means of personal
representation, newspaper, magazine, circular, billboard, direct
mailing, sign, radio, television, telephone or other means of
communication that aids, promotes or assists, directly or
indirectly, a rental-purchase agreement.
"Cash price." The price at which the lessor would offer to
sell in the ordinary course of business the same or similar
property for cash on the day the lessee enters into a rental-
purchase agreement.
"Lessee." A person who rents personal property pursuant to a
rental-purchase agreement.
"Lessor." A person who, in the ordinary course of business,
regularly offers to rent or arranges for personal property to be
rented pursuant to a rental-purchase agreement. A lessor is a
creditor as defined in 37 Pa. Code § 303.2 (relating to
definitions) when owed or alleged to be owed a debt and is
subject to 37 Pa. Code Ch. 303 (relating to debt collection
trade practices).
"Personal property." Any property that is not real property
under the laws of the state where it is located when it is
offered or made available for a rental-purchase agreement.
"Rental-purchase agreement." An agreement for the use of
personal property by an individual primarily for personal,
family or household purposes for an initial period of four
months or less that is automatically renewable with each rental
payment after the initial period and that permits the lessee to
acquire ownership of the property. It does not include nor is it
subject to laws governing any of the following:
(1) A lease for agricultural, business or commercial
purposes.
(2) A lease made to an organization.
(3) A lease of money or intangible personal property.
(4) A lease of a motor vehicle, motor home, mobile home
or manufactured housing.
(5) A home solicitation sale under section 7 of the act
of December 17, 1968 (P.L.1224, No.387), known as the Unfair
Trade Practices and Consumer Protection Law.
(6) A retail installment sale, retail installment
contract or retail installment account as defined in the act
of October 28, 1966 (1st Sp.Sess., P.L.55, No.7), known as
the Goods and Services Installment Sales Act.
(7) A security interest as defined in 13 Pa.C.S. § 1201
(relating to general definitions).
§ 6903. Required disclosures in connection with rental-
purchase agreement.
(a) General rule.--A lessor shall disclose all of the
following in a clear and conspicuous manner:
(1) A brief description of the rented property
sufficient to identify it to the lessee and lessor and a
statement as to whether the property is new, used or
previously rented. If a rental is for multiple items of
property, a description of each item may be provided in a
separate statement incorporated by reference in the rental-
purchase agreement or primary disclosure statement.
(2) The total amount of any initial payment, including
any advance payment, delivery charge or any trade-in
allowance, to be paid by the lessee at or before consummation
of the rental-purchase agreement.
(3) The amount and timing of rental payments.
(4) The amount of all other charges, individually
itemized, payable by the lessee to the lessor that are not
included in the rental payments.
(5) The party who is liable for loss, damage in excess
of normal wear and tear or destruction of the rented
property.
(6) The right of the lessee to reinstate under section
6906 (relating to lessee's right to reinstate agreement after
termination) and the amount of or method of determining the
amount of the delinquency charges, reinstatement fee or
delivery charge for reinstatement.
(7) The party responsible for maintaining or servicing
the rental property and a brief description of the
responsibility.
(8) The conditions upon which the lessee or lessor may
terminate the rental agreement prior to the expiration of the
rental term.
(9) The total of all initial payments, all rental
payments and all other charges necessary to acquire ownership
of the rented property.
(10) That the lessee has the option to purchase the
rented property at any time and at what price or by what
formula or method the purchase price will be determined.
(11) The cash price of the personal property that is the
subject of the rental-purchase agreement.
(12) The cost of lease services, which is the difference
between the total of payments disclosed under paragraph (9)
and the cash price of the property disclosed under paragraph
(11).
(13) That if any part of a manufacturer's warranty
exists on the leased property when a lessee acquires
ownership of the property, the warranty will be transferred
to the lessee if permitted by the terms of the warranty.
(14) That the lessee is not required to purchase
insurance or liability damage waiver for the property that is
the subject of the rental agreement from the lessor or from
any vendor owned or controlled by the lessor.
(b) Notice required.--Every primary disclosure statement
shall include a notice in a prominent place in at least ten-
point type in substantially the following form:
NOTICE
You are renting this property. You will not own it until
you make all of the regularly scheduled payments or you
use the early purchase option. You do not have the right
to keep the property if you do not make required payments
or do not use the early purchase option. Subject to your
grace periods and reinstatement rights, the lessor may
repossess the property if you fail to make rental
payments as scheduled. Your rights and responsibilities
are fully explained in this rental-purchase agreement.
(c) Time of disclosure.--Every rental-purchase agreement
shall be in writing. The information required by this section
shall be disclosed by the lessor prior to the signing of the
rental-purchase agreement by the lessee and shall be disclosed
either in the rental-purchase agreement or on a dated, separate
piece of paper that identifies the rental-purchase agreement and
the parties to it.
(d) Manner of disclosure.--The disclosures required by
subsection (a)(2), (3), (9), (11) and (12) shall be printed or
typed in at least ten-point boldface type and grouped together.
All other disclosures required by this section shall be printed
or typed in at least eight-point type. All numerical amounts and
percentages shall be stated in figures. All information required
by this section shall be written, organized and designed so that
it is easy to read and understand. The information shall be
appropriately divided and captioned by its sections.
(e) Disclosure of additional information.--A lessor may
disclose information that is not required by this section if the
additional information is not stated, used or placed in a manner
that will contradict, obscure or distract attention from the
required information.
(f) Compliance with Federal law.--With respect to matters
specifically governed by the Consumer Credit Protection Act
(Public Law 90-321, 15 U.S.C. § 1601 et seq.), compliance with
that act satisfies the requirements of this section.
§ 6904. Prohibited provisions of agreement.
A rental-purchase agreement or any document that the lessor
requests the lessee to sign shall not contain any provision by
which:
(1) A power of attorney is given to confess judgment in
this Commonwealth or to appoint the lessor, its agents or its
successors in interest as the lessee's agent in the
collection of payments or the repossession of the rental
property.
(2) The lessee authorizes the lessor or its agent to
commit any breach of the peace in repossessing the rental
property or to enter the lessee's dwelling or other premises
without obtaining the lessee's consent at the time of entry.
(3) The lessor mandates that the lessee purchase
insurance or liability waiver against loss or damage to the
rental property from the lessor. This paragraph shall not,
however, be construed to prohibit a lessor from offering
insurance or a liability waiver to a lessee provided it is
clearly disclosed that acceptance of the offer of insurance
or a liability waiver is optional.
(4) The lessee waives or agrees to waive any defense,
counterclaim or right the lessee may have against the lessor,
its agent or its successor in interest.
(5) The lessee is required to pay a late fee unless the
rental payment is five days or more late under a rental-
purchase agreement with payments made monthly or two days or
more late under a rental-purchase agreement with payments
made more frequently than monthly.
(6) A lessee is required to pay a late fee exceeding the
greater of $5 or 10% of the amount of the past due payment,
regardless of how long the payment remains unpaid.
(7) The lessee is required to pay a fee in connection
with retrieval of the property or the termination or
rescission of the rental-purchase agreement.
(8) The lessee is charged a fee for in-home collection
of a rental payment unless the amount of the fee is disclosed
and the lessee expressly has agreed to pay the fee.
§ 6905. Lessee's right to acquire ownership.
(a) Limitation on cost of lease services.--The total amount
charged by the lessor for the cost of lease services in a
rental-purchase transaction shall not exceed the cash price of
the property.
(b) Acquisition of ownership.--At any time after tendering
an initial rental payment, a lessee may acquire ownership of the
property that is the subject of the rental-purchase agreement by
tendering an amount equal at a maximum to the amount by which
the cash price of the leased property exceeds 50% of all rental
payments made by the lessee.
§ 6906. Lessee's right to reinstate agreement after
termination.
(a) General rule.--A lessee who fails to make a timely
rental payment may reinstate the agreement without losing any
rights or options which exist under the agreement by the payment
of all of the following within seven days of the renewal date:
(1) All past due rental charges.
(2) The reasonable costs of retrieval and redelivery, if
the property has been retrieved.
(3) Any applicable late fee.
(b) Extended reinstatement after return of property.--
(1) In the case of a lessee who has paid less than two-
thirds of the total payments necessary to acquire ownership
and where the lessee has returned or voluntarily surrendered
the property, other than through judicial process, during the
applicable reinstatement period set forth in subsection (a),
the lessee may reinstate the agreement during a period of not
less than 90 days after the date of the return of the
property.
(2) In the case of a lessee who has paid two-thirds or
more of the total of payments necessary to acquire ownership
and where the lessee has returned or voluntarily surrendered
the property, other than through judicial process, during the
applicable period set forth in subsection (a), the lessee may
reinstate the agreement during a period of not less than 120
days after the date of the return of the property.
(c) Right to reinstate following repossession.--Nothing in
this section shall prevent a lessor from attempting to repossess
property during the reinstatement period, but a repossession
during the reinstatement period shall not affect the lessee's
right to reinstate. Upon reinstatement, the lessor shall provide
the lessee with the same property or substitute property of
comparable quality and condition.
§ 6907. Rent reduction.
(a) General rule.--If any lessee who has signed a rental-
purchase agreement experiences an interruption or reduction of
25% or more of income due to involuntary job loss, involuntary
reduced employment, illness, pregnancy or disability after two-
thirds or more of the total amount of the rental payments
necessary to acquire ownership under the agreement has been
paid, the lessor shall reduce the amount of each rental payment
by:
(1) the percentage of the reduction in the lessee's
income; or
(2) fifty percent, whichever is less, for the period
during which the lessee's income is interrupted or reduced.
(b) Number of payments.--If payments are reduced, the total
dollar amount of payments necessary to acquire ownership shall
not be increased, but the number of payments necessary to
acquire ownership shall be increased accordingly and the rights
and duties of the lessor and the lessee shall not otherwise be
affected.
(c) Income restored.--When the lessee's income is restored,
the lessor may increase the amount of rental payments, but in no
event shall rental payments exceed the originally disclosed
amount of rental payments.
§ 6908. Advertising and display of property.
(a) Advertisements.--
(1) An advertisement for a rental-purchase agreement
shall not state that a rental of any specific property is
available at a specific amount or on specific terms unless
the lessor will rent the property at the amount or on the
terms specified.
(2) An advertisement shall not state that a payment or a
rental payment is due upon origination of a rental without
disclosing all of the following:
(i) The payment due upon origination of the rental.
(ii) The rental payment.
(iii) The total number of rental payments necessary
to obtain ownership of the property that is the subject
of the rental-purchase agreement.
(b) Information on displays or offers.--All property
displayed or offered under a rental-purchase agreement shall
have stamped on or affixed to the property and clearly and
conspicuously indicated in Arabic numerals that are readable and
understandable by visual inspection all of the following:
(1) The amount of the rental payment.
(2) The cash price of the property.
(3) The total number and amount of rental payments
necessary to acquire ownership of the property that is the
subject of the rental-purchase agreement.
(4) The cost of lease services.
(c) Compliance with Federal law.--With respect to matters
specifically governed by the Consumer Credit Protection Act
(Public Law 90-321, 15 U.S.C. § 1601 et seq.), compliance with
that act satisfies the requirements of this section.
§ 6909. Lessor's liability for noncompliance.
(a) Violation of other law.--A violation of this chapter
shall constitute a violation of the act of December 17, 1968
(P.L.1224, No.387), known as the Unfair Trade Practices and
Consumer Protection Law, and shall be subject to the enforcement
provisions and private rights of action contained in that act,
except as limited in this section.
(b) Recovery in class action limited.--Notwithstanding any
other provision of this section or the Unfair Trade Practices
and Consumer Protection Law, in any class action brought for
violation of this chapter, the total recovery arising out of the
same failure to comply shall not be more than the lesser of
$500,000 or an amount equal to 1% of the net worth of the
lessor.
(c) Recovery of damages.--If a particular rental-purchase
agreement has more than one lessee, only one recovery of damages
is allowed for a violation of this chapter. Multiple violations
in connection with a single rental-purchase agreement entitle
the lessee or multiple lessees to only one recovery under this
chapter.
(d) Commencement of class action.--A class action alleging a
violation of this chapter may not be brought more than two years
after the occurrence of the violation that is the subject of the
suit or more than two years after the lessee made the last
rental payment, whichever is later. This subsection does not bar
a lessee from asserting a violation of this chapter as a matter
of defense by recoupment or setoff in an action brought by a
lessor more than two years after the date of the occurrence of
the violation on an obligation arising from the rental-purchase
agreement.
(e) Counteraction or defense.--A lessee may not take any
action to offset any amount for which a lessor is potentially
liable under the Unfair Trade Practices and Consumer Protection
Law against any amount owed by the lessee unless the amount of
the liability of the lessor has been determined by a judgment of
a court of competent jurisdiction in an action in which the
lessor was a party. This subsection does not bar a lessee in
default on an obligation arising from the rental-purchase
agreement from asserting a violation of this chapter in an
original action or as a defense or counterclaim to an action
brought by the lessor to collect amounts owed by the lessee
under the rental-purchase agreement.
§ 6910. Limitations on lessor's liability.
(a) Right to correct errors.--A lessor is not liable for any
violation of the requirements of this chapter if, within 60 days
after discovering an error and before an action for damages is
filed against the lessor under section 6909 (relating to
lessor's liability for noncompliance) or written notice of the
error is received from the lessee, the lessor notifies the
lessee of the error and makes adjustments to the account of the
lessee that are necessary to assure that the lessee is not
required to pay an amount in excess of the amounts permitted by
this chapter. This subsection applies whether the error was
discovered through the lessor's own procedures or by any other
means.
(b) Limitation in damages.--A lessor is not liable under
subsection (a) for damages in excess of actual damage sustained
by the lessee if the lessor shows by a preponderance of the
evidence that the violation of this chapter resulted from a bona
fide error, notwithstanding the maintenance by the lessor of
procedures reasonably adopted to avoid the error.
(c) Definition.--As used in this section, the term "bona
fide error" includes, but is not limited to, clerical or
calculation mistakes, computer hardware or software malfunctions
and programming and printing errors.
§ 6911. Conflict with other law.
In the event of a conflict between this chapter and the act
of October 28, 1966 (1st Sp.Sess., P.L.55, No.7), known as the
Goods and Services Installment Sales Act, the provisions of this
chapter shall be controlling.
Section 7. Section 9730 heading and (b) of Title 42 are
amended to read:
§ 9730. Payment of court costs, restitution and fines.
* * *
(b) Procedures regarding default.--
(1) If a defendant defaults in the payment of a fine
[or], court costs or restitution after imposition of
sentence, the issuing authority [shall] or a senior judge or
senior district justice appointed by the president judge for
the purposes of this section may conduct a hearing to
determine whether the defendant is financially able to pay.
(2) If the issuing authority, senior judge or senior
district justice determines that the defendant is financially
able to pay the fine or costs, the issuing authority, senior
judge or senior district justice may turn the delinquent
account over to a private collection agency or impose
imprisonment for nonpayment, as provided by law.
(3) If the issuing authority, senior judge or senior
district justice determines that the defendant is without the
financial means to pay the fine or costs immediately or in a
single remittance, the issuing authority, senior judge or
senior district justice may provide for payment in
installments. In determining the appropriate installments,
the issuing authority, senior judge or senior district
justice shall consider the defendant's financial resources,
the defendant's ability to make restitution and reparations
and the nature of the burden the payment will impose on the
defendant. If the defendant is in default of a payment or
advises the issuing authority, senior judge or senior
district justice that default is imminent, the issuing
authority, senior judge or senior district justice may
schedule a rehearing on the payment schedule. At the
rehearing the defendant has the burden of proving changes of
financial condition such that the defendant is without the
means to meet the payment schedule. The issuing authority,
senior judge or senior district justice may extend or
accelerate the schedule, leave it unaltered or sentence the
defendant to a period of community service as the issuing
authority, senior judge or senior district justice finds to
be just and practicable under the circumstances.
(4) A decision of the issuing authority, senior judge or
senior district justice under paragraph (2) or (3) is subject
to section 5105 (relating to right to appellate review).
Section 8. Title 42 is amended by adding a section to read:
§ 9730.1. Collection of court costs, restitution and fines by
private collection agency.
(a) Generally.--In accordance with section 9730(b)(1) and
(2) (relating to payment of court costs, restitution and fines),
an issuing authority may refer the collection of costs, fines
and restitution of a defendant to a private collection agency
upon the expiration of a defendant's maximum sentence or
probationary term with or without holding a hearing pursuant to
this section. Such collection agency shall adhere to accepted
practices in accordance with applicable Federal and State law to
collect such costs, fines and restitution.
(b) Contracts with private collection agencies.--
(1) The president judge of the judicial district, county
commissioner or designee of either may contract with private
collection agencies for the collection of fines, costs and
restitution in accordance with the provisions of this
section.
(2) The amount of the collection fee as negotiated
between the president judge of the judicial district, county
commissioner or designee of either and private collection
agencies shall be added to the bill of costs to be paid by
the defendant and shall not exceed 25% of the amount
collected.
(3) The funds secured from the defendant by the private
collection agency in connection with the collection of fines,
costs and restitution shall be distributed as follows:
(i) The fee due the private collection agency shall
be paid.
(ii) The balance shall be distributed in accordance
with the original distribution of fines, costs and
restitution as set forth in the order of the court
sentencing the defendant.
(c) Limitations on private collection agencies.--For the
purposes of this section, a private collection agency shall
cease its efforts designed to collect fines, costs and
restitution and so inform the court or the county commissioners
upon the occurrence of any of the following:
(1) the private collection agency considers the amount
owing noncollectible;
(2) a period of 180 days has elapsed since referral of
the amount owing to the private collection agency and there
has been no response by the defendant or collection of
moneys; or
(3) upon demand of a judge of the court of common pleas
having jurisdiction over the defendant.
(d) Imprisonment.--Nothing in this subchapter limits the
ability of a judge to imprison a person for nonpayment, as
provided by law; however, imprisonment for nonpayment shall not
be imposed without a public hearing under section 9730(b)(1).
(e) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection:
"Amount owing." The total amount owed by a defendant on
fines, costs or restitution in accordance with the order of
court sentencing the defendant and this section.
"Private collection agency." A person, company, partnership
or other entity that uses any instrumentality of interstate
commerce or the mails in any business the principal purpose of
which is the collection of any debts, or who regularly collects
or attempts to collect, directly or indirectly, debts owed or
due or asserted to be owed or due another under the applicable
laws of the United States and of this Commonwealth.
Section 9. Section 4 of the act of June 29, 1990 (P.L.257,
No.59), entitled "An act amending Title 42 (Judiciary and
Judicial Procedure) of the Pennsylvania Consolidated Statutes,
further providing for deposits into the Judicial Computer System
Augmentation Account; imposing additional fees; and making
refunds," is repealed.
Section 10. This act shall take effect as follows:
(1) The addition of 42 Pa.C.S. § 3733(c) shall take
effect immediately.
(2) Section 9 and this section shall take effect
immediately.
(3) The remainder of this act shall take effect in 60
days.
APPROVED--The 11th day of July, A. D. 1996.
THOMAS J. RIDGE
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