Executive Committee
Adopted in House Comm. on Mar 04, 2004
 
 

 




 

 		












09300HB5875ham001

LRB093 19957 RXD 47854 a






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AMENDMENT TO HOUSE BILL 5875 




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    AMENDMENT NO. ______. Amend House Bill 5875  by replacing 
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everything after the enacting clause with the following:

 
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    "Section 5. The Physical Fitness Services Act is amended  by 
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changing Section 8 as follows:
 



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    (815 ILCS 645/8)  (from Ch. 29, par. 58)



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    Sec. 8. Prohibited contract provisions. (a) No contract for 
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physical
fitness services
shall require payment of a total 
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amount in excess of $4500
$2500 per year, and every such

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contract must so provide in writing;
except that this limit 
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shall not apply to any contract for group membership,
other 
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than family membership, where the purchaser is a corporation or 
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other
business entity or any social, fraternal or charitable 
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organization not
created for the purpose of encouraging this 
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contractual arrangement.

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    (b) No contract for physical fitness services shall require 
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payments or
financing over a period in excess of 3 years from 
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the date the contract
is entered into, nor shall the term of 
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any such contract be measured by
the life of the customer.  The 
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initial term of services to be rendered under
the contract may 
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not extend
over a period of more than 2 years from the date the 
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parties enter into
the contract; provided that the customer may 
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be given an option to renew
the contract for consecutive 
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periods of not more than one year each for
a reasonable 
 


 






09300HB5875ham001
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LRB093 19957 RXD 47854 a




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consideration not less than 10% of the cash price of the 
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original
membership.

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    (c) No contract for physical fitness services shall require 
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or entail
the execution of any note by the customer which, when 
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separately negotiated,
will cut off as to third parties
any 
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right of action or defense which the customer may have against 
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the physical
fitness center.  No right of action or defense 
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arising out of a contract
for physical fitness services which 
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the customer has against the center
shall be cut off by 
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assignment of the contract whether or not the assignee
acquires 
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the contract
in good faith and for value.  Such an assignee is 
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not a holder in due course.

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(Source: P.A. 84-1463.)

 

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    Section 99. Effective date. This Act takes effect upon 
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becoming law.".