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91_HB1177sam003
SRS91HB1177JJcham03
1 AMENDMENT TO HOUSE BILL 1177
2 AMENDMENT NO. . Amend House Bill 1177 by replacing
3 the title with the following:
4 "AN ACT concerned with home repair and remodeling
5 fraud."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 1. Short title. This Act may be cited as the
9 Home Repair and Remodeling Act.
10 Section 5. Policy. It is the public policy of this
11 State that in order to safeguard the life, health, property,
12 and public welfare of its citizens, the business of home
13 repair and remodeling is a matter affecting the public
14 interest. The General Assembly recognizes that improved
15 communications and accurate representations between persons
16 engaged in the business of making home repairs or remodeling
17 and their consumers will increase consumer confidence, reduce
18 the likelihood of disputes, and promote fair and honest
19 practices in that business in this State.
20 Section 10. Definitions. As used in this Act:
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1 "Home repair and remodeling" means the fixing, replacing,
2 altering, converting, modernizing, improving, or making of an
3 addition to any real property primarily designed or used as a
4 residence other than maintenance, service, or repairs under
5 $500. "Home repair and remodeling" includes the
6 construction, installation, replacement, or improvement of
7 driveways, swimming pools, porches, kitchens, bathrooms,
8 basements, chimneys, chimney liners, garages, fences, fallout
9 shelters, central air conditioning, central heating, boilers,
10 furnaces, electrical wiring, sewers, plumbing fixtures, storm
11 doors, windows, roofs, awnings, and other improvements to
12 structures within the residence or upon the land adjacent to
13 the residence. "Home repair and remodeling" does not include
14 the sale, installation, cleaning, or repair of carpets; the
15 repair, installation, replacement, or connection of any home
16 appliance including, but not limited to, disposals,
17 refrigerators, ranges, garage door openers, televisions or
18 television antennas, washing machines, telephones, hot water
19 heaters, satellite dishes, or other appliances when the
20 persons replacing, installing, repairing, or connecting the
21 home appliance are employees or agents of the merchant that
22 sold the home appliance or sold new products of the same
23 type; or landscaping.
24 "Person" means any individual, partnership, corporation,
25 business, trust, or other legal entity.
26 "Residence" means a single-family home or dwelling or a
27 multiple-family home or dwelling containing 6 or fewer
28 apartments, condominiums, town houses, or dwelling units,
29 used or intended to be used by occupants as dwelling places.
30 This Act does not apply to original construction of
31 single-family or multi-family residences or repairs to
32 dwellings containing more than 6 apartments or family units.
33 Section 15. Written contract; costs enumerated. Prior
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1 to initiating home repair or remodeling work for over $1,000,
2 a person engaged in the business of home repair or remodeling
3 shall furnish to the customer for signature a written
4 contract or work order that states the total cost, including
5 parts and materials listed with reasonable particularity and
6 any charge for an estimate. In addition, the contract shall
7 state the business name and address of the person engaged in
8 the business of home repair or remodeling. If the person
9 engaged in the business of home repair or remodeling uses a
10 post office box or mail receiving service or agent to receive
11 home repair or remodeling business correspondence, the
12 contract also shall state the residence address of the person
13 engaged in the business of home repair or remodeling.
14 Section 20. Consumer rights brochure. (a) For any
15 contract over $1,000, any person engaging in the business of
16 home repair and remodeling shall provide to its customers a
17 copy of the "Home Repair: Know Your Consumer Rights" pamphlet
18 prior to the execution of any home repair and remodeling
19 contract. The consumer shall sign and date an
20 acknowledgment form entitled "Consumer Rights Acknowledgment
21 Form" that states: "I, the homeowner, have received from the
22 contractor a copy of the pamphlet entitled 'Home Repair: Know
23 Your Consumer Rights.'" The contractor or his or her
24 representative shall also sign and date the acknowledgment
25 form, which includes the name and address of the home repair
26 and remodeling business. The acknowledgment form shall be in
27 duplicate and incorporated into the pamphlet. The original
28 acknowledgment form shall be retained by the contractor and
29 the duplicate copy shall be retained within the pamphlet by
30 the consumer.
31 (b) For any contract for $1,000 or under, any person
32 engaging in the business of home repair and remodeling shall
33 provide to its customers a copy of the "Home Repair: Know
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1 Your Consumer Rights" pamphlet. No written acknowledgment of
2 receipt of the pamphlet is required for a contract of $1,000
3 or under.
4 (c) The pamphlet must be a separate document, in at
5 least 12 point type, and in legible ink. The pamphlet shall
6 read as follows:
7 "HOME REPAIR: KNOW YOUR CONSUMER RIGHTS
8 As you plan for your home repair/improvement project, it
9 is important to ask the right questions in order to protect
10 your investment. The tips in this fact sheet should allow
11 you to protect yourself and minimize the possibility that a
12 misunderstanding may occur.
13 AVOIDING HOME REPAIR FRAUD
14 Please use extreme caution when confronted with the following
15 warning signs of a potential scam:
16 (1) Door-to-door salespersons with no local connections
17 who offer to do home repair work for substantially less than
18 the market price.
19 (2) Solicitations for repair work from a company that
20 lists only a telephone number or a post-office box number to
21 contact, particularly if it is an out-of-state company.
22 (3) Contractors who fail to provide customers references
23 when requested.
24 (4) Persons offering to inspect your home for free. Do
25 not admit anyone into your home unless he or she can present
26 authentic identification establishing his or her business
27 status. When in doubt, do not hesitate to call the worker's
28 employer to verify his or her identity.
29 (5) Contractors demanding cash payment for a job or who
30 ask you to make a check payable to a person other than the
31 owner or company name.
32 (6) Offers from a contractor to drive you to the bank to
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1 withdraw funds to pay for the work.
2 CONTRACTS
3 (1) Get all estimates in writing.
4 (2) Do not be induced into signing a contract by
5 high-pressure sales tactics.
6 (3) Never sign a contract with blank spaces or one you
7 do not fully understand. If you are taking out a loan to
8 finance the work, do not sign the contract before your lender
9 approves the loan.
10 (4) Remember, you have 3 business days from the time you
11 sign your contract to cancel any contract if the sale is made
12 at your home. The contractor cannot deprive you of this
13 right by initiating work, selling your contract to a lender,
14 or any other tactic.
15 (5) If the contractor does business under a name other
16 than the contractor's real name, the business must either be
17 incorporated or registered under the Assumed Business Name
18 Act. Check with the Secretary of State to see if the
19 business is incorporated or with the county clerk to see if
20 the business has registered under the Assumed Business Name
21 Act.
22 (6) Homeowners should check with local and county units
23 of government to determine if permits or inspections are
24 required.
25 (7) Determine whether the contractor will guarantee his
26 or her work and products.
27 (8) Determine whether the contractor has the proper
28 insurance.
29 (9) Do not sign a certificate of completion or make
30 final payment until the work is done to your satisfaction.
31 (10) Remember, homeowners should know who provides
32 supplies and labor for any work performed on your home.
33 Suppliers and subcontractors have a right to file a lien
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1 against your property if the general contractor fails to pay
2 them. To protect your property, request lien waivers from
3 the general contractor.
4 BASIC TERMS TO BE INCLUDED IN A CONTRACT
5 (1) Contractor's full name, address, and telephone
6 number. Illinois law requires that persons selling home
7 repair and improvement services provide their customers with
8 notice of any change to their business name or address that
9 comes about prior to the agreed dates for beginning or
10 completing the work.
11 (2) A description of the work to be performed.
12 (3) Starting and estimated completion dates.
13 (4) Total cost of work to be performed.
14 (5) Schedule and method of payment, including down
15 payment, subsequent payments, and final payment.
16 (6) A provision stating the grounds for termination of
17 the contract by either party. However, the homeowner must pay
18 the contractor for work completed. If the contractor fails
19 to commence or complete work within the contracted time
20 period, the homeowner may cancel and may be entitled to a
21 refund of any down payment or other payments made towards the
22 work, upon written demand by certified mail.
23 Homeowners should obtain a copy of the signed contract
24 and keep it in a safe place for reference as needed.
25 IF YOU THINK YOU HAVE BEEN DEFRAUDED OR YOU HAVE QUESTIONS
26 If you think you have been defrauded by a contractor or
27 have any questions, please bring it to the attention of your
28 State's Attorney or the Illinois Attorney General's Office.
29 Attorney General Toll-Free Numbers
30 Carbondale (800) 243-0607
31 Springfield (800) 243-0618
32 Chicago (800) 386-5438".
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1 Section 25. Insurance required. Any person engaged in
2 the business of home repair and remodeling shall obtain and
3 maintain in full force and effect during the operation of the
4 business public liability and property damage insurance in
5 the amount of $100,000 per person and $300,000 per occurrence
6 of bodily injury, $50,000 per occurrence for property damage,
7 and in the amount of $10,000 per occurrence for improper home
8 repair or remodeling not in conformance with applicable
9 State, county, or municipal building codes, unless the person
10 has a net worth of not less than $1,000,000 as determined on
11 the basis of the person's most recent financial statement,
12 prepared within 13 months.
13 Section 30. Unlawful acts. It is unlawful for any
14 person engaged in the business of home repairs and remodeling
15 to remodel or make repairs or charge for remodeling or repair
16 work before obtaining a signed contract or work order over
17 $1,000. This conduct is unlawful but is not exclusive nor
18 meant to limit other kinds of methods, acts, or practices
19 that may be unfair or deceptive.
20 Section 35. Enforcement.
21 (a) The Attorney General or the State's Attorney of any
22 county in this State may bring an action in the name of the
23 people of this State against any person to restrain and
24 prevent any pattern or practice violation of this Act. In the
25 enforcement of this Act, the Attorney General or the State's
26 Attorney may accept an assurance of voluntary compliance from
27 anyone engaged in any conduct, act, or practice deemed in
28 violation of this Act. Failure to perform the terms of any
29 such assurance constitutes prima facie evidence of a
30 violation of this Act.
31 (b) All remedies, penalties, and authority granted to
32 the Attorney General or the State's Attorney of any county in
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1 this State by the Consumer Fraud and Deceptive Business
2 Practices Act shall be available to him or her for
3 enforcement of this Act, and any violation of this Act shall
4 constitute a violation of the Consumer Fraud and Deceptive
5 Business Practices Act.
6 Section 900. The Consumer Fraud and Deceptive Business
7 Practices Act is amended by changing Section 2Z as follows:
8 (815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)
9 Sec. 2Z. Violations of other Acts. Any person who
10 knowingly violates the Automotive Repair Act, the Home Repair
11 and Remodeling Act, the Dance Studio Act, the Physical
12 Fitness Services Act, the Hearing Instrument Consumer
13 Protection Act, the Illinois Union Label Act, the Job
14 Referral and Job Listing Services Consumer Protection Act,
15 the Travel Promotion Consumer Protection Act, the Credit
16 Services Organizations Act, the Automatic Telephone Dialers
17 Act, the Pay-Per-Call Services Consumer Protection Act, the
18 Telephone Solicitations Act, the Illinois Funeral or Burial
19 Funds Act, the Cemetery Care Act, or the Pre-Need Cemetery
20 Sales Act commits an unlawful practice within the meaning of
21 this Act.
22 (Source: P.A. 89-72, eff. 12-31-95; 89-615, eff. 8-9-96;
23 90-426, eff. 1-1-98.)
24 Section 999. Effective date. This Act takes effect
25 January 1, 2000.".