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Public Act 91-0230
HB1177 Enrolled LRB9103438KSgc
AN ACT concerned with home repair and remodeling fraud.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Home Repair and Remodeling Act.
Section 5. Policy. It is the public policy of this
State that in order to safeguard the life, health, property,
and public welfare of its citizens, the business of home
repair and remodeling is a matter affecting the public
interest. The General Assembly recognizes that improved
communications and accurate representations between persons
engaged in the business of making home repairs or remodeling
and their consumers will increase consumer confidence, reduce
the likelihood of disputes, and promote fair and honest
practices in that business in this State.
Section 10. Definitions. As used in this Act:
"Home repair and remodeling" means the fixing, replacing,
altering, converting, modernizing, improving, or making of an
addition to any real property primarily designed or used as a
residence other than maintenance, service, or repairs under
$500. "Home repair and remodeling" includes the
construction, installation, replacement, or improvement of
driveways, swimming pools, porches, kitchens, bathrooms,
basements, chimneys, chimney liners, garages, fences, fallout
shelters, central air conditioning, central heating, boilers,
furnaces, electrical wiring, sewers, plumbing fixtures, storm
doors, windows, roofs, awnings, and other improvements to
structures within the residence or upon the land adjacent to
the residence. "Home repair and remodeling" does not include
the sale, installation, cleaning, or repair of carpets; the
repair, installation, replacement, or connection of any home
appliance including, but not limited to, disposals,
refrigerators, ranges, garage door openers, televisions or
television antennas, washing machines, telephones, hot water
heaters, satellite dishes, or other appliances when the
persons replacing, installing, repairing, or connecting the
home appliance are employees or agents of the merchant that
sold the home appliance or sold new products of the same
type; or landscaping.
"Person" means any individual, partnership, corporation,
business, trust, or other legal entity.
"Residence" means a single-family home or dwelling or a
multiple-family home or dwelling containing 6 or fewer
apartments, condominiums, town houses, or dwelling units,
used or intended to be used by occupants as dwelling places.
This Act does not apply to original construction of
single-family or multi-family residences or repairs to
dwellings containing more than 6 apartments or family units.
Section 15. Written contract; costs enumerated. Prior
to initiating home repair or remodeling work for over $1,000,
a person engaged in the business of home repair or remodeling
shall furnish to the customer for signature a written
contract or work order that states the total cost, including
parts and materials listed with reasonable particularity and
any charge for an estimate. In addition, the contract shall
state the business name and address of the person engaged in
the business of home repair or remodeling. If the person
engaged in the business of home repair or remodeling uses a
post office box or mail receiving service or agent to receive
home repair or remodeling business correspondence, the
contract also shall state the residence address of the person
engaged in the business of home repair or remodeling.
Section 20. Consumer rights brochure. (a) For any
contract over $1,000, any person engaging in the business of
home repair and remodeling shall provide to its customers a
copy of the "Home Repair: Know Your Consumer Rights" pamphlet
prior to the execution of any home repair and remodeling
contract. The consumer shall sign and date an
acknowledgment form entitled "Consumer Rights Acknowledgment
Form" that states: "I, the homeowner, have received from the
contractor a copy of the pamphlet entitled 'Home Repair: Know
Your Consumer Rights.'" The contractor or his or her
representative shall also sign and date the acknowledgment
form, which includes the name and address of the home repair
and remodeling business. The acknowledgment form shall be in
duplicate and incorporated into the pamphlet. The original
acknowledgment form shall be retained by the contractor and
the duplicate copy shall be retained within the pamphlet by
the consumer.
(b) For any contract for $1,000 or under, any person
engaging in the business of home repair and remodeling shall
provide to its customers a copy of the "Home Repair: Know
Your Consumer Rights" pamphlet. No written acknowledgment of
receipt of the pamphlet is required for a contract of $1,000
or under.
(c) The pamphlet must be a separate document, in at
least 12 point type, and in legible ink. The pamphlet shall
read as follows:
"HOME REPAIR: KNOW YOUR CONSUMER RIGHTS
As you plan for your home repair/improvement project, it
is important to ask the right questions in order to protect
your investment. The tips in this fact sheet should allow
you to protect yourself and minimize the possibility that a
misunderstanding may occur.
AVOIDING HOME REPAIR FRAUD
Please use extreme caution when confronted with the following
warning signs of a potential scam:
(1) Door-to-door salespersons with no local connections
who offer to do home repair work for substantially less than
the market price.
(2) Solicitations for repair work from a company that
lists only a telephone number or a post-office box number to
contact, particularly if it is an out-of-state company.
(3) Contractors who fail to provide customers references
when requested.
(4) Persons offering to inspect your home for free. Do
not admit anyone into your home unless he or she can present
authentic identification establishing his or her business
status. When in doubt, do not hesitate to call the worker's
employer to verify his or her identity.
(5) Contractors demanding cash payment for a job or who
ask you to make a check payable to a person other than the
owner or company name.
(6) Offers from a contractor to drive you to the bank to
withdraw funds to pay for the work.
CONTRACTS
(1) Get all estimates in writing.
(2) Do not be induced into signing a contract by
high-pressure sales tactics.
(3) Never sign a contract with blank spaces or one you
do not fully understand. If you are taking out a loan to
finance the work, do not sign the contract before your lender
approves the loan.
(4) Remember, you have 3 business days from the time you
sign your contract to cancel any contract if the sale is made
at your home. The contractor cannot deprive you of this
right by initiating work, selling your contract to a lender,
or any other tactic.
(5) If the contractor does business under a name other
than the contractor's real name, the business must either be
incorporated or registered under the Assumed Business Name
Act. Check with the Secretary of State to see if the
business is incorporated or with the county clerk to see if
the business has registered under the Assumed Business Name
Act.
(6) Homeowners should check with local and county units
of government to determine if permits or inspections are
required.
(7) Determine whether the contractor will guarantee his
or her work and products.
(8) Determine whether the contractor has the proper
insurance.
(9) Do not sign a certificate of completion or make
final payment until the work is done to your satisfaction.
(10) Remember, homeowners should know who provides
supplies and labor for any work performed on your home.
Suppliers and subcontractors have a right to file a lien
against your property if the general contractor fails to pay
them. To protect your property, request lien waivers from
the general contractor.
BASIC TERMS TO BE INCLUDED IN A CONTRACT
(1) Contractor's full name, address, and telephone
number. Illinois law requires that persons selling home
repair and improvement services provide their customers with
notice of any change to their business name or address that
comes about prior to the agreed dates for beginning or
completing the work.
(2) A description of the work to be performed.
(3) Starting and estimated completion dates.
(4) Total cost of work to be performed.
(5) Schedule and method of payment, including down
payment, subsequent payments, and final payment.
(6) A provision stating the grounds for termination of
the contract by either party. However, the homeowner must pay
the contractor for work completed. If the contractor fails
to commence or complete work within the contracted time
period, the homeowner may cancel and may be entitled to a
refund of any down payment or other payments made towards the
work, upon written demand by certified mail.
Homeowners should obtain a copy of the signed contract
and keep it in a safe place for reference as needed.
IF YOU THINK YOU HAVE BEEN DEFRAUDED OR YOU HAVE QUESTIONS
If you think you have been defrauded by a contractor or
have any questions, please bring it to the attention of your
State's Attorney or the Illinois Attorney General's Office.
Attorney General Toll-Free Numbers
Carbondale (800) 243-0607
Springfield (800) 243-0618
Chicago (800) 386-5438".
Section 25. Insurance required. Any person engaged in
the business of home repair and remodeling shall obtain and
maintain in full force and effect during the operation of the
business public liability and property damage insurance in
the amount of $100,000 per person and $300,000 per occurrence
of bodily injury, $50,000 per occurrence for property damage,
and in the amount of $10,000 per occurrence for improper home
repair or remodeling not in conformance with applicable
State, county, or municipal building codes, unless the person
has a net worth of not less than $1,000,000 as determined on
the basis of the person's most recent financial statement,
prepared within 13 months.
Section 30. Unlawful acts. It is unlawful for any
person engaged in the business of home repairs and remodeling
to remodel or make repairs or charge for remodeling or repair
work before obtaining a signed contract or work order over
$1,000. This conduct is unlawful but is not exclusive nor
meant to limit other kinds of methods, acts, or practices
that may be unfair or deceptive.
Section 35. Enforcement.
(a) The Attorney General or the State's Attorney of any
county in this State may bring an action in the name of the
people of this State against any person to restrain and
prevent any pattern or practice violation of this Act. In the
enforcement of this Act, the Attorney General or the State's
Attorney may accept an assurance of voluntary compliance from
anyone engaged in any conduct, act, or practice deemed in
violation of this Act. Failure to perform the terms of any
such assurance constitutes prima facie evidence of a
violation of this Act.
(b) All remedies, penalties, and authority granted to
the Attorney General or the State's Attorney of any county in
this State by the Consumer Fraud and Deceptive Business
Practices Act shall be available to him or her for
enforcement of this Act, and any violation of this Act shall
constitute a violation of the Consumer Fraud and Deceptive
Business Practices Act.
Section 900. The Consumer Fraud and Deceptive Business
Practices Act is amended by changing Section 2Z as follows:
(815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)
Sec. 2Z. Violations of other Acts. Any person who
knowingly violates the Automotive Repair Act, the Home Repair
and Remodeling Act, the Dance Studio Act, the Physical
Fitness Services Act, the Hearing Instrument Consumer
Protection Act, the Illinois Union Label Act, the Job
Referral and Job Listing Services Consumer Protection Act,
the Travel Promotion Consumer Protection Act, the Credit
Services Organizations Act, the Automatic Telephone Dialers
Act, the Pay-Per-Call Services Consumer Protection Act, the
Telephone Solicitations Act, the Illinois Funeral or Burial
Funds Act, the Cemetery Care Act, or the Pre-Need Cemetery
Sales Act commits an unlawful practice within the meaning of
this Act.
(Source: P.A. 89-72, eff. 12-31-95; 89-615, eff. 8-9-96;
90-426, eff. 1-1-98.)
Section 999. Effective date. This Act takes effect
January 1, 2000.
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