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| [ Senate Amendment 003 ] |
91_HB1177enr HB1177 Enrolled LRB9103438KSgc 1 AN ACT concerned with home repair and remodeling fraud. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 1. Short title. This Act may be cited as the 5 Home Repair and Remodeling Act. 6 Section 5. Policy. It is the public policy of this 7 State that in order to safeguard the life, health, property, 8 and public welfare of its citizens, the business of home 9 repair and remodeling is a matter affecting the public 10 interest. The General Assembly recognizes that improved 11 communications and accurate representations between persons 12 engaged in the business of making home repairs or remodeling 13 and their consumers will increase consumer confidence, reduce 14 the likelihood of disputes, and promote fair and honest 15 practices in that business in this State. 16 Section 10. Definitions. As used in this Act: 17 "Home repair and remodeling" means the fixing, replacing, 18 altering, converting, modernizing, improving, or making of an 19 addition to any real property primarily designed or used as a 20 residence other than maintenance, service, or repairs under 21 $500. "Home repair and remodeling" includes the 22 construction, installation, replacement, or improvement of 23 driveways, swimming pools, porches, kitchens, bathrooms, 24 basements, chimneys, chimney liners, garages, fences, fallout 25 shelters, central air conditioning, central heating, boilers, 26 furnaces, electrical wiring, sewers, plumbing fixtures, storm 27 doors, windows, roofs, awnings, and other improvements to 28 structures within the residence or upon the land adjacent to 29 the residence. "Home repair and remodeling" does not include 30 the sale, installation, cleaning, or repair of carpets; the HB1177 Enrolled -2- LRB9103438KSgc 1 repair, installation, replacement, or connection of any home 2 appliance including, but not limited to, disposals, 3 refrigerators, ranges, garage door openers, televisions or 4 television antennas, washing machines, telephones, hot water 5 heaters, satellite dishes, or other appliances when the 6 persons replacing, installing, repairing, or connecting the 7 home appliance are employees or agents of the merchant that 8 sold the home appliance or sold new products of the same 9 type; or landscaping. 10 "Person" means any individual, partnership, corporation, 11 business, trust, or other legal entity. 12 "Residence" means a single-family home or dwelling or a 13 multiple-family home or dwelling containing 6 or fewer 14 apartments, condominiums, town houses, or dwelling units, 15 used or intended to be used by occupants as dwelling places. 16 This Act does not apply to original construction of 17 single-family or multi-family residences or repairs to 18 dwellings containing more than 6 apartments or family units. 19 Section 15. Written contract; costs enumerated. Prior 20 to initiating home repair or remodeling work for over $1,000, 21 a person engaged in the business of home repair or remodeling 22 shall furnish to the customer for signature a written 23 contract or work order that states the total cost, including 24 parts and materials listed with reasonable particularity and 25 any charge for an estimate. In addition, the contract shall 26 state the business name and address of the person engaged in 27 the business of home repair or remodeling. If the person 28 engaged in the business of home repair or remodeling uses a 29 post office box or mail receiving service or agent to receive 30 home repair or remodeling business correspondence, the 31 contract also shall state the residence address of the person 32 engaged in the business of home repair or remodeling. HB1177 Enrolled -3- LRB9103438KSgc 1 Section 20. Consumer rights brochure. (a) For any 2 contract over $1,000, any person engaging in the business of 3 home repair and remodeling shall provide to its customers a 4 copy of the "Home Repair: Know Your Consumer Rights" pamphlet 5 prior to the execution of any home repair and remodeling 6 contract. The consumer shall sign and date an 7 acknowledgment form entitled "Consumer Rights Acknowledgment 8 Form" that states: "I, the homeowner, have received from the 9 contractor a copy of the pamphlet entitled 'Home Repair: Know 10 Your Consumer Rights.'" The contractor or his or her 11 representative shall also sign and date the acknowledgment 12 form, which includes the name and address of the home repair 13 and remodeling business. The acknowledgment form shall be in 14 duplicate and incorporated into the pamphlet. The original 15 acknowledgment form shall be retained by the contractor and 16 the duplicate copy shall be retained within the pamphlet by 17 the consumer. 18 (b) For any contract for $1,000 or under, any person 19 engaging in the business of home repair and remodeling shall 20 provide to its customers a copy of the "Home Repair: Know 21 Your Consumer Rights" pamphlet. No written acknowledgment of 22 receipt of the pamphlet is required for a contract of $1,000 23 or under. 24 (c) The pamphlet must be a separate document, in at 25 least 12 point type, and in legible ink. The pamphlet shall 26 read as follows: 27 "HOME REPAIR: KNOW YOUR CONSUMER RIGHTS 28 As you plan for your home repair/improvement project, it 29 is important to ask the right questions in order to protect 30 your investment. The tips in this fact sheet should allow 31 you to protect yourself and minimize the possibility that a 32 misunderstanding may occur. 33 AVOIDING HOME REPAIR FRAUD HB1177 Enrolled -4- LRB9103438KSgc 1 Please use extreme caution when confronted with the following 2 warning signs of a potential scam: 3 (1) Door-to-door salespersons with no local connections 4 who offer to do home repair work for substantially less than 5 the market price. 6 (2) Solicitations for repair work from a company that 7 lists only a telephone number or a post-office box number to 8 contact, particularly if it is an out-of-state company. 9 (3) Contractors who fail to provide customers references 10 when requested. 11 (4) Persons offering to inspect your home for free. Do 12 not admit anyone into your home unless he or she can present 13 authentic identification establishing his or her business 14 status. When in doubt, do not hesitate to call the worker's 15 employer to verify his or her identity. 16 (5) Contractors demanding cash payment for a job or who 17 ask you to make a check payable to a person other than the 18 owner or company name. 19 (6) Offers from a contractor to drive you to the bank to 20 withdraw funds to pay for the work. 21 CONTRACTS 22 (1) Get all estimates in writing. 23 (2) Do not be induced into signing a contract by 24 high-pressure sales tactics. 25 (3) Never sign a contract with blank spaces or one you 26 do not fully understand. If you are taking out a loan to 27 finance the work, do not sign the contract before your lender 28 approves the loan. 29 (4) Remember, you have 3 business days from the time you 30 sign your contract to cancel any contract if the sale is made 31 at your home. The contractor cannot deprive you of this 32 right by initiating work, selling your contract to a lender, 33 or any other tactic. HB1177 Enrolled -5- LRB9103438KSgc 1 (5) If the contractor does business under a name other 2 than the contractor's real name, the business must either be 3 incorporated or registered under the Assumed Business Name 4 Act. Check with the Secretary of State to see if the 5 business is incorporated or with the county clerk to see if 6 the business has registered under the Assumed Business Name 7 Act. 8 (6) Homeowners should check with local and county units 9 of government to determine if permits or inspections are 10 required. 11 (7) Determine whether the contractor will guarantee his 12 or her work and products. 13 (8) Determine whether the contractor has the proper 14 insurance. 15 (9) Do not sign a certificate of completion or make 16 final payment until the work is done to your satisfaction. 17 (10) Remember, homeowners should know who provides 18 supplies and labor for any work performed on your home. 19 Suppliers and subcontractors have a right to file a lien 20 against your property if the general contractor fails to pay 21 them. To protect your property, request lien waivers from 22 the general contractor. 23 BASIC TERMS TO BE INCLUDED IN A CONTRACT 24 (1) Contractor's full name, address, and telephone 25 number. Illinois law requires that persons selling home 26 repair and improvement services provide their customers with 27 notice of any change to their business name or address that 28 comes about prior to the agreed dates for beginning or 29 completing the work. 30 (2) A description of the work to be performed. 31 (3) Starting and estimated completion dates. 32 (4) Total cost of work to be performed. 33 (5) Schedule and method of payment, including down HB1177 Enrolled -6- LRB9103438KSgc 1 payment, subsequent payments, and final payment. 2 (6) A provision stating the grounds for termination of 3 the contract by either party. However, the homeowner must pay 4 the contractor for work completed. If the contractor fails 5 to commence or complete work within the contracted time 6 period, the homeowner may cancel and may be entitled to a 7 refund of any down payment or other payments made towards the 8 work, upon written demand by certified mail. 9 Homeowners should obtain a copy of the signed contract 10 and keep it in a safe place for reference as needed. 11 IF YOU THINK YOU HAVE BEEN DEFRAUDED OR YOU HAVE QUESTIONS 12 If you think you have been defrauded by a contractor or 13 have any questions, please bring it to the attention of your 14 State's Attorney or the Illinois Attorney General's Office. 15 Attorney General Toll-Free Numbers 16 Carbondale (800) 243-0607 17 Springfield (800) 243-0618 18 Chicago (800) 386-5438". 19 Section 25. Insurance required. Any person engaged in 20 the business of home repair and remodeling shall obtain and 21 maintain in full force and effect during the operation of the 22 business public liability and property damage insurance in 23 the amount of $100,000 per person and $300,000 per occurrence 24 of bodily injury, $50,000 per occurrence for property damage, 25 and in the amount of $10,000 per occurrence for improper home 26 repair or remodeling not in conformance with applicable 27 State, county, or municipal building codes, unless the person 28 has a net worth of not less than $1,000,000 as determined on 29 the basis of the person's most recent financial statement, 30 prepared within 13 months. 31 Section 30. Unlawful acts. It is unlawful for any 32 person engaged in the business of home repairs and remodeling HB1177 Enrolled -7- LRB9103438KSgc 1 to remodel or make repairs or charge for remodeling or repair 2 work before obtaining a signed contract or work order over 3 $1,000. This conduct is unlawful but is not exclusive nor 4 meant to limit other kinds of methods, acts, or practices 5 that may be unfair or deceptive. 6 Section 35. Enforcement. 7 (a) The Attorney General or the State's Attorney of any 8 county in this State may bring an action in the name of the 9 people of this State against any person to restrain and 10 prevent any pattern or practice violation of this Act. In the 11 enforcement of this Act, the Attorney General or the State's 12 Attorney may accept an assurance of voluntary compliance from 13 anyone engaged in any conduct, act, or practice deemed in 14 violation of this Act. Failure to perform the terms of any 15 such assurance constitutes prima facie evidence of a 16 violation of this Act. 17 (b) All remedies, penalties, and authority granted to 18 the Attorney General or the State's Attorney of any county in 19 this State by the Consumer Fraud and Deceptive Business 20 Practices Act shall be available to him or her for 21 enforcement of this Act, and any violation of this Act shall 22 constitute a violation of the Consumer Fraud and Deceptive 23 Business Practices Act. 24 Section 900. The Consumer Fraud and Deceptive Business 25 Practices Act is amended by changing Section 2Z as follows: 26 (815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z) 27 Sec. 2Z. Violations of other Acts. Any person who 28 knowingly violates the Automotive Repair Act, the Home Repair 29 and Remodeling Act, the Dance Studio Act, the Physical 30 Fitness Services Act, the Hearing Instrument Consumer 31 Protection Act, the Illinois Union Label Act, the Job HB1177 Enrolled -8- LRB9103438KSgc 1 Referral and Job Listing Services Consumer Protection Act, 2 the Travel Promotion Consumer Protection Act, the Credit 3 Services Organizations Act, the Automatic Telephone Dialers 4 Act, the Pay-Per-Call Services Consumer Protection Act, the 5 Telephone Solicitations Act, the Illinois Funeral or Burial 6 Funds Act, the Cemetery Care Act, or the Pre-Need Cemetery 7 Sales Act commits an unlawful practice within the meaning of 8 this Act. 9 (Source: P.A. 89-72, eff. 12-31-95; 89-615, eff. 8-9-96; 10 90-426, eff. 1-1-98.) 11 Section 999. Effective date. This Act takes effect 12 January 1, 2000.