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Rep. Jaime M. Andrade, Jr.
Filed: 4/6/2018
| | 10000HB4275ham004 | | LRB100 15336 JLS 38076 a |
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| 1 | | AMENDMENT TO HOUSE BILL 4275
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| 2 | | AMENDMENT NO. ______. Amend House Bill 4275 by replacing |
| 3 | | everything after the enacting clause with the following:
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| 4 | | "Section 5. The Physical Fitness Services Act is amended by |
| 5 | | changing Section 8 as follows:
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| 6 | | (815 ILCS 645/8) (from Ch. 29, par. 58)
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| 7 | | Sec. 8. Prohibited contract provisions. |
| 8 | | (a) (Blank). No contract for basic physical
fitness |
| 9 | | services
shall require payment of a total amount in excess of |
| 10 | | $2500 per year, and every such
contract must so provide in |
| 11 | | writing;
except that this limit shall not apply to any contract |
| 12 | | for: (1) family or couple memberships, or
(2) group |
| 13 | | memberships, where the purchaser is a corporation or other
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| 14 | | business entity or any social, fraternal or charitable |
| 15 | | organization not
created for the purpose of encouraging this |
| 16 | | contractual arrangement.
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| | 10000HB4275ham004 | - 2 - | LRB100 15336 JLS 38076 a |
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| 1 | | (b) (Blank). No contract for family or couple memberships |
| 2 | | for basic physical fitness services shall require payment in |
| 3 | | excess of $2,500 per year per person covered under the |
| 4 | | membership.
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| 5 | | (c) No contract for physical fitness services shall require |
| 6 | | payments or
financing over a period in excess of 3 years from |
| 7 | | the date the contract
is entered into, nor shall the term of |
| 8 | | any such contract be measured by
the life of the customer. The |
| 9 | | initial term of services to be rendered under
the contract may |
| 10 | | not extend
over a period of more than one year 2 years from the |
| 11 | | date the parties enter into
the contract; provided that the |
| 12 | | customer may be given an option to renew
the contract for |
| 13 | | consecutive periods of not more than one year each for
a |
| 14 | | reasonable consideration not less than 10% of the cash price of |
| 15 | | the original
membership.
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| 16 | | (d) No contract for physical fitness services shall require |
| 17 | | or entail
the execution of any note by the customer which, when |
| 18 | | separately negotiated,
will cut off as to third parties
any |
| 19 | | right of action or defense which the customer may have against |
| 20 | | the physical
fitness center. No right of action or defense |
| 21 | | arising out of a contract
for physical fitness services which |
| 22 | | the customer has against the center
shall be cut off by |
| 23 | | assignment of the contract whether or not the assignee
acquires |
| 24 | | the contract
in good faith and for value. Such an assignee is |
| 25 | | not a holder in due course.
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| 26 | | (Source: P.A. 94-663, eff. 1-1-06; 94-687, eff. 11-3-05.)".
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