Rep. Ann Williams

Filed: 4/11/2011

 

 


 

 


 
09700HB3034ham001LRB097 09449 AEK 54372 a

1
AMENDMENT TO HOUSE BILL 3034

2    AMENDMENT NO. ______. Amend House Bill 3034 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Home Repair and Remodeling Act is amended
5by adding Section 18 and by changing Section 20 as follows:
 
6    (815 ILCS 513/18 new)
7    Sec. 18. Repairs following damaging weather.
8    (a) As used in this Section, "catastrophe" means a natural
9occurrence, including but not limited to flood, drought,
10earthquake, tornado, windstorm, or hailstorm, which damages or
11destroys more than one residence.
12    (b) A contractor offering home repair or remodeling
13services shall not advertise or promise to pay or rebate all or
14any portion of any insurance deductible as an inducement to the
15sale of goods or services. As used in this Section, a promise
16to pay or rebate includes granting any allowance or offering

 

 

09700HB3034ham001- 2 -LRB097 09449 AEK 54372 a

1any discount against the fees to be charged or paying the
2insured or any person directly or indirectly associated with
3the property any form of compensation.
4    (c) A contractor offering home repair or remodeling
5services shall not accept money or any form of compensation in
6exchange for allowing an out of area contractor to use its
7business name or license.
8    (d) A contractor offering home repair or remodeling
9services shall include its Illinois State roofing contractor
10license name and number as it appears on its Illinois State
11roofing license on all contracts, bids, and advertisements
12involving roofing work as required by the Illinois Roofing
13Industry Licensing Act.
14    (e) A person who has entered into a written contract with a
15contractor offering home repair or remodeling services to
16provide goods or services to be paid from the proceeds of a
17property and casualty insurance policy may cancel the contract
18prior to midnight on the earlier of the fifth business day
19after the insured has received written notice from the insurer
20that all or any part of the claim or contract is not a covered
21loss under the insurance policy or the thirtieth business day
22after receipt of a properly executed proof of loss by the
23insurer from the insured. Cancellation is evidenced by the
24insured giving written notice of cancellation to the contractor
25offering home repair or remodeling services at the address
26stated in the contract. Notice of cancellation, if given by

 

 

09700HB3034ham001- 3 -LRB097 09449 AEK 54372 a

1mail, is effective upon deposit into the United States mail,
2postage prepaid and properly addressed to the contractor.
3Notice of cancellation may be given by delivering or mailing a
4signed and dated copy of the written notice of cancellation to
5the contractor's business address as stated in the contract.
6Notice of cancellation shall include a copy of the written
7notice from the insurer to the effect that all or part of the
8claim is not a covered loss under the insurance policy. Notice
9of cancellation need not take a particular form and is
10sufficient if it indicates, by any form of written expression,
11the intention of the insured not to be bound by the contract.
12    (f) Any contract referred to in subsection (e), must
13contain a statement in at least 10 point boldface, in
14substantially the following form:
15        "You may cancel this contract at any time before
16        midnight on the earlier of the fifth business day after
17        you have received written notification from your
18        insurer that all or any part of the claim or contract
19        is not a covered loss under the insurance policy or the
20        thirtieth business day after your insurer has received
21        properly executed proof(s) of loss from you. See
22        attached notice of cancellation form for an
23        explanation of this right."
24    (g) Upon executing a contract referred to in subsection
25(e), furnish each insured a fully completed form in duplicate,
26captioned "NOTICE OF CANCELLATION", which shall be attached to

 

 

09700HB3034ham001- 4 -LRB097 09449 AEK 54372 a

1the contract but easily detachable, and which shall contain
2boldface type of a minimum size of 10 points the following
3statement with the appropriate fields completed by the
4contractor:
5        
"NOTICE OF CANCELLATION
6            If you are notified by your insurer that all or any
7        part of the claim or contract is not a covered loss
8        under the insurance policy, you may cancel the contract
9        by mailing or delivering a signed and dated copy of
10        this cancellation notice or any other written notice to
11        (name of contractor) at (address of contractor's place
12        of business) at any time prior to midnight on the
13        earlier of the fifth business day after you have
14        received such notice from your insurer or the thirtieth
15        business day after your insurer has received properly
16        executed proof(s) of loss from you. If you cancel, any
17        payments made by you under the contract, other than
18        payments for goods or services related to a catastrophe
19        which you agreed in writing to be necessary to prevent
20        damage to your property, will be returned to you within
21        10 business days following receipt by the contractor of
22        your cancellation notice.
23            I HEREBY CANCEL THIS TRANSACTION
24            ................................
25            (date)
26            ................................

 

 

09700HB3034ham001- 5 -LRB097 09449 AEK 54372 a

1            (insured's signature)".
2    (h) Within 10 days after a contract referred to in
3subsection (e) has been cancelled, the contractor offering home
4repair or remodeling services shall tender to the insured any
5payments, partial payments, or deposits made by the insured and
6any note or other evidence of indebtedness. If, however, the
7contractor has provided any goods or services related to a
8catastrophe, acknowledged and agreed to by the insured in
9writing to be necessary to prevent damage to the premises, the
10contractor is entitled to the reasonable value of such goods
11and services. Any provision in a contract referred to in
12subsection (e) that requires the payment of any fee for
13anything except goods or services related to a catastrophe
14shall not be enforceable against any insured who has cancelled
15a contract pursuant to this Section.
16    (i) A contractor offering home repair or remodeling
17services shall not represent, or offer or advertise to
18represent, on behalf of a homeowner on any insurance claim in
19connection with the repair or replacement of roof systems, or
20the performance of any other exterior repair, replacement,
21construction or reconstruction work; or otherwise violate the
22Public Adjusters Law. A contractor offering home repair or
23remodeling services shall not call in or file a claim to an
24insurance carrier on the insured's behalf. A contractor
25offering home repair or remodeling services shall not climb on
26a roof or inspect for exterior damage without the insured's

 

 

09700HB3034ham001- 6 -LRB097 09449 AEK 54372 a

1express permission. Nothing in this subsection shall be
2construed to prohibit a residential contractor from: (1)
3providing an insured an estimate for repair, replacement,
4construction, or reconstruction of the insured's property and
5any such estimate may be submitted to the insured's insurance
6company; (2) conferring with an insurance company's
7representative about damage to an insured's property; or (3)
8discussing repair or replacement options with an insurance
9company's representative or the insured about options for the
10repair or replacement of the damage.
 
11    (815 ILCS 513/20)
12    Sec. 20. Consumer rights brochure.
13    (a) For any contract over $1,000, any person engaging in
14the business of home repair and remodeling shall provide to its
15customers a copy of the "Home Repair: Know Your Consumer
16Rights" pamphlet prior to the execution of any home repair and
17remodeling contract. The consumer shall sign and date an
18acknowledgment form entitled "Consumer Rights Acknowledgment
19Form" that states: "I, the homeowner, have received from the
20contractor a copy of the pamphlet entitled 'Home Repair: Know
21Your Consumer Rights.'" The contractor or his or her
22representative shall also sign and date the acknowledgment
23form, which includes the name and address of the home repair
24and remodeling business. The acknowledgment form shall be in
25duplicate and incorporated into the pamphlet. The original

 

 

09700HB3034ham001- 7 -LRB097 09449 AEK 54372 a

1acknowledgment form shall be retained by the contractor and the
2duplicate copy shall be retained within the pamphlet by the
3consumer.
4    (b) For any contract for $1,000 or under, any person
5engaging in the business of home repair and remodeling shall
6provide to its customers a copy of the "Home Repair: Know Your
7Consumer Rights" pamphlet. No written acknowledgment of
8receipt of the pamphlet is required for a contract of $1,000 or
9under.
10    (c) The pamphlet must be a separate document, in at least
1112 point type, and in legible ink. The pamphlet shall read as
12follows:
 
13
"HOME REPAIR: KNOW YOUR CONSUMER RIGHTS

 
14    As you plan for your home repair/improvement project, it is
15important to ask the right questions in order to protect your
16investment. The tips in this fact sheet should allow you to
17protect yourself and minimize the possibility that a
18misunderstanding may occur.
 
19
AVOIDING HOME REPAIR FRAUD

 
20Please use extreme caution when confronted with the following
21warning signs of a potential scam:
22    (1) Door-to-door salespersons with no local connections

 

 

09700HB3034ham001- 8 -LRB097 09449 AEK 54372 a

1who offer to do home repair work for substantially less than
2the market price.
3    (2) Solicitations for repair work from a company that lists
4only a telephone number or a post-office box number to contact,
5particularly if it is an out-of-state company.
6    (3) Contractors who fail to provide customers references
7when requested.
8    (4) Persons offering to inspect your home for free. Do not
9admit anyone into your home unless he or she can present
10authentic identification establishing his or her business
11status. When in doubt, do not hesitate to call the worker's
12employer to verify his or her identity.
13    (5) Contractors demanding cash payment for a job or who ask
14you to make a check payable to a person other than the owner or
15company name.
16    (6) Offers from a contractor to drive you to the bank to
17withdraw funds to pay for the work.
 
18
CONTRACTS

 
19    (1) Get all estimates in writing.
20    (2) Do not be induced into signing a contract by
21high-pressure sales tactics.
22    (3) Never sign a contract with blank spaces or one you do
23not fully understand. If you are taking out a loan to finance
24the work, do not sign the contract before your lender approves

 

 

09700HB3034ham001- 9 -LRB097 09449 AEK 54372 a

1the loan.
2    (4) Remember, you have 3 business days from the time you
3sign your contract to cancel any contract if the sale is made
4at your home. The contractor cannot deprive you of this right
5by initiating work, selling your contract to a lender, or any
6other tactic.
7    (5) If the contractor does business under a name other than
8the contractor's real name, the business must either be
9incorporated or registered under the Assumed Business Name Act.
10Check with the Secretary of State to see if the business is
11incorporated or with the county clerk to see if the business
12has registered under the Assumed Business Name Act.
13    (6) Homeowners should check with local and county units of
14government to determine if permits or inspections are required.
15    (7) Determine whether the contractor will guarantee his or
16her work and products.
17    (8) Determine whether the contractor has the proper
18insurance.
19    (9) Do not sign a certificate of completion or make final
20payment until the work is done to your satisfaction.
21    (10) Remember, homeowners should know who provides
22supplies and labor for any work performed on your home.
23Suppliers and subcontractors have a right to file a lien
24against your property if the general contractor fails to pay
25them. To protect your property, request lien waivers from the
26general contractor.
 

 

 

09700HB3034ham001- 10 -LRB097 09449 AEK 54372 a

1
BASIC TERMS TO BE INCLUDED IN A CONTRACT

 
2    (1) Contractor's full name, address, and telephone number.
3Illinois law requires that persons selling home repair and
4improvement services provide their customers with notice of any
5change to their business name or address that comes about prior
6to the agreed dates for beginning or completing the work.
7    (2) A description of the work to be performed.
8    (3) Starting and estimated completion dates.
9    (4) Total cost of work to be performed.
10    (5) Schedule and method of payment, including down payment,
11subsequent payments, and final payment.
12    (6) A provision stating the grounds for termination of the
13contract by either party. However, the homeowner must pay the
14contractor for work completed. If the contractor fails to
15commence or complete work within the contracted time period,
16the homeowner may cancel and may be entitled to a refund of any
17down payment or other payments made towards the work, upon
18written demand by certified mail.
19    (7) A provision stating the grounds for termination of the
20contract if you are notified by your insurer that all or any
21part of the claim or contract is not a covered loss under the
22insurance policy, you may cancel the contract by mailing or
23delivering written notice to (name of contractor) at (address
24of contractor's place of business) at any time prior to

 

 

09700HB3034ham001- 11 -LRB097 09449 AEK 54372 a

1midnight on the fifth business day after you have received such
2notice from your insurer. If you cancel, any payments made by
3you under the contract will be returned to you within 10
4business days following receipt by the contractor of your
5cancellation notice. If, however, the contractor has provided
6any goods or services related to a catastrophe, acknowledged
7and agreed to by the insured homeowner in writing to be
8necessary to prevent damage to the premises, the contractor is
9entitled to the reasonable value of such goods and services.
10    Homeowners should obtain a copy of the signed contract and
11keep it in a safe place for reference as needed.
12    To file a complaint against a roofing contractor, contact
13the Illinois Department of Financial and Professional
14Responsibility at 312-814-6910 or file a complaint directly on
15its website.
 
16
IF YOU THINK YOU HAVE BEEN DEFRAUDED OR YOU HAVE QUESTIONS
17    If you think you have been defrauded by a contractor or
18have any questions, please bring it to the attention of your
19State's Attorney or the Illinois Attorney General's Office.
20Attorney General Toll-Free Numbers
21Carbondale        (800) 243-0607
22Springfield        (800) 243-0618
23Chicago            (800) 386-5438".
24(Source: P.A. 91-230, eff. 1-1-00.)".