Full Text of HB2525 94th General Assembly
HB2525 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB2525
Introduced 2/18/2005, by Rep. Angelo Saviano SYNOPSIS AS INTRODUCED: |
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815 ILCS 645/2 |
from Ch. 29, par. 52 |
815 ILCS 645/6 |
from Ch. 29, par. 56 |
815 ILCS 645/8 |
from Ch. 29, par. 58 |
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Amends the Physical Fitness Services Act. Provides that in the event of the relocation of a customer's residence and under specified conditions of his or her relocation, the customer may cancel his or her contract for physical fitness services and shall be liable for only that portion of the charges allocable to the time before reasonable evidence of such relocation is presented to the center, plus a reasonable fee if so provided in the contract, but such fee shall not exceed 50% (instead of 10%) of the unused balance, or $150 (instead of $50), whichever is less. Provides that a contract for "personal training services" is not subject to annual fee limits when purchased by a business entity or a fraternal or charitable organization. Effective immediately.
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A BILL FOR
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HB2525 |
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LRB094 08711 RXD 38923 b |
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| AN ACT concerning business.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Physical Fitness Services Act is amended by | 5 |
| changing Sections 2, 6, and 8 as follows:
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| (815 ILCS 645/2) (from Ch. 29, par. 52)
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| Sec. 2. Definitions. (a) "Physical fitness center" or | 8 |
| "center" means
any person or business entity offering physical | 9 |
| fitness services to the public.
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| (b) "Physical fitness services" or "services" includes | 11 |
| instruction,
training or assistance in physical culture, | 12 |
| bodybuilding, exercising,
weight reducing, figure development, | 13 |
| judo, karate, self-defense training,
or any similar activity; | 14 |
| use of the facilities of a physical fitness center
for any of | 15 |
| the above activities; or membership in any group formed by a
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| physical fitness center for any of the above purposes.
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| (c) "Personal training services" means services performed | 18 |
| for a fee by a personal trainer or fitness instructor for | 19 |
| individuals or groups relating to developing, monitoring or | 20 |
| supervising physical training, exercise or fitness programs, | 21 |
| education and instruction regarding the use of exercise | 22 |
| equipment or techniques, or rendering advice relating to any of | 23 |
| the aforementioned subjects or related issues such as diet.
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| (Source: P.A. 84-850.)
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| (815 ILCS 645/6) (from Ch. 29, par. 56)
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| Sec. 6. Contract requirements: cancellation and refund. | 27 |
| (a) Every contract for physical fitness services shall
provide | 28 |
| that: (1) the contract may be cancelled by the customer
within | 29 |
| 3 business days after the first business day after the contract | 30 |
| is
signed by the customer, and that all monies paid pursuant to | 31 |
| said contract
shall be refunded to the customer. For the |
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HB2525 |
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LRB094 08711 RXD 38923 b |
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| purposes of this Section,
business day shall mean any day on | 2 |
| which the facility is open for business.
A customer purchasing | 3 |
| a plan at a facility which has not yet opened for
business at | 4 |
| the time the contract is signed, or who does not purchase a
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| contract at an existing facility, shall have seven calendar | 6 |
| days in which
to cancel the contract and receive a full refund | 7 |
| of all monies paid. The
customer's rights to cancel described | 8 |
| herein are in addition to any other
contract rights or remedies | 9 |
| provided by law; (2) in the
event of the relocation of a | 10 |
| customer's residence
to farther than 25 miles from the center's | 11 |
| facilities, and upon the failure
of the original center to | 12 |
| designate a center, with comparable facilities
and services | 13 |
| within 25 miles of the customer's new residence, which agrees
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| to accept the original center's obligations under the contract, | 15 |
| the customer
may cancel the contract and shall be liable for | 16 |
| only that portion of the
charges allocable to the time before | 17 |
| reasonable evidence of such relocation
is presented to the | 18 |
| center, plus a reasonable fee if so provided in the
contract, | 19 |
| but such fee shall not exceed 50%
10% of the unused balance, or | 20 |
| $150
$50 ,
whichever is less; and (3) if the customer, because | 21 |
| of death or disability,
is unable to use or receive all | 22 |
| services contracted for, the customer, or
his estate as the | 23 |
| case may be, shall be liable for only that portion
of the | 24 |
| charges allocable to the time prior to death or the onset of | 25 |
| disability.
The center shall in such event have the right to | 26 |
| require and verify reasonable
evidence of such death or | 27 |
| disability.
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| (b) Every contract for physical fitness services shall | 29 |
| provide that notice
of cancellation pursuant to subsection (a) | 30 |
| of this Section shall be made
in writing and delivered by | 31 |
| certified or registered mail to the center at the
address | 32 |
| specified in the contract. All refunds to which a customer or | 33 |
| his
estate is entitled shall be made within 30 days of receipt | 34 |
| by the center
of the cancellation notice.
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| (Source: P.A. 84-850.)
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HB2525 |
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LRB094 08711 RXD 38923 b |
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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 | 3 |
| physical
fitness services
shall require payment of a total | 4 |
| amount in excess of $2500 per year, and every such
contract | 5 |
| must so provide in writing;
except that this limit shall not | 6 |
| apply to any contract for : (1) personal training services, or
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| (2) group membership,
other than family membership, where the | 8 |
| purchaser is a corporation or other
business entity or any | 9 |
| social, fraternal or charitable organization not
created for | 10 |
| the purpose of encouraging this contractual arrangement.
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| (b) No contract for physical fitness services shall require | 12 |
| payments or
financing over a period in excess of 3 years from | 13 |
| the date the contract
is entered into, nor shall the term of | 14 |
| any such contract be measured by
the life of the customer. The | 15 |
| initial term of services to be rendered under
the contract may | 16 |
| not extend
over a period of more than 2 years from the date the | 17 |
| parties enter into
the contract; provided that the customer may | 18 |
| be given an option to renew
the contract for consecutive | 19 |
| periods of not more than one year each for
a reasonable | 20 |
| consideration not less than 10% of the cash price of the | 21 |
| original
membership.
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| (c) No contract for physical fitness services shall require | 23 |
| or entail
the execution of any note by the customer which, when | 24 |
| separately negotiated,
will cut off as to third parties
any | 25 |
| right of action or defense which the customer may have against | 26 |
| the physical
fitness center. No right of action or defense | 27 |
| arising out of a contract
for physical fitness services which | 28 |
| the customer has against the center
shall be cut off by | 29 |
| assignment of the contract whether or not the assignee
acquires | 30 |
| the contract
in good faith and for value. Such an assignee is | 31 |
| 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 | 34 |
| becoming law.
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