Full Text of HB4268 100th General Assembly
HB4268 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB4268 Introduced 1/19/2018, by Rep. André Thapedi SYNOPSIS AS INTRODUCED: |
| 815 ILCS 513/10 | | 815 ILCS 513/20 | |
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Amends the Home Repair and Remodeling Act. Provides that "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 the consumer as his or her dwelling place (instead of "by occupants as dwelling places"). In the home repair consumer rights pamphlet, replaces notice language concerning lien waivers with the following: "Illinois law requires that, before payment, your contractor give you a sworn statement which lists: (1) all the persons or companies your contractor hired to work on your home and their addresses; and (2) the amounts previously paid, the amounts about to be paid, and the total amount owed after the payment to these persons or companies. The sworn statement should be fully completed, signed, and notarized.
When the contractor's sworn statement lists an amount due or to become due to a subcontractor, or when a subcontractor gives you notice of an amount due to the subcontractor, you must retain sufficient funds to pay that subcontractor.
Subcontractors give the contractors lien waivers when they are paid. Ask your contractor for copies of these lien waivers. If your contractor tells you he or she needs a payment from you in order to pay subcontractors, you have the right to pay the subcontractors directly.".
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| | A BILL FOR |
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| 1 | | AN ACT concerning business.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Home Repair and Remodeling Act is amended by | 5 | | changing Sections 10 and 20 as follows:
| 6 | | (815 ILCS 513/10)
| 7 | | Sec. 10. Definitions. As used in this Act:
| 8 | | "Home repair and remodeling" means the fixing, replacing, | 9 | | altering,
converting, modernizing, improving, or making of an | 10 | | addition to any real
property primarily designed or used as a | 11 | | residence other than maintenance,
service, or repairs under | 12 | | $500.
"Home repair and remodeling" includes the construction, | 13 | | installation,
replacement, or improvement of driveways, | 14 | | swimming pools, porches, kitchens,
bathrooms, basements, | 15 | | chimneys, chimney liners, garages, fences, fallout
shelters, | 16 | | central air conditioning, central heating, boilers, furnaces,
| 17 | | electrical wiring, sewers, plumbing fixtures, storm doors,
| 18 | | windows, roofs, awnings, and other improvements to structures | 19 | | within the
residence or upon the land adjacent to the | 20 | | residence. "Home repair and
remodeling" does not include the | 21 | | sale, installation, cleaning, or repair of
carpets; the repair, | 22 | | installation, replacement, or connection of any home
appliance | 23 | | including, but not
limited to, disposals, refrigerators, |
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| 1 | | ranges, garage door openers, televisions
or television | 2 | | antennas, washing machines, telephones, hot water heaters,
| 3 | | satellite dishes, or other appliances when the persons | 4 | | replacing, installing,
repairing, or connecting the home | 5 | | appliance are employees or agents of the
merchant that sold the | 6 | | home appliance or sold new products of the same type; or
| 7 | | landscaping.
| 8 | | "Person" means any individual, partnership, corporation, | 9 | | business, trust, or
other legal entity.
| 10 | | "Residence" means a single-family home or dwelling or a | 11 | | multiple-family
home or dwelling containing 6 or fewer | 12 | | apartments, condominiums, town houses,
or dwelling units, used | 13 | | or intended to be used by the consumer as his or her dwelling | 14 | | place occupants as dwelling places .
This Act does not apply to | 15 | | original construction of single-family or
multi-family | 16 | | residences or repairs to dwellings containing more than 6
| 17 | | apartments or family units.
| 18 | | (Source: P.A. 91-230, eff. 1-1-00.)
| 19 | | (815 ILCS 513/20)
| 20 | | Sec. 20. Consumer rights brochure.
| 21 | | (a) For any contract over $1,000, any
person engaging in | 22 | | the business
of home repair and remodeling shall provide to its | 23 | | customers a copy of the
"Home Repair: Know Your Consumer | 24 | | Rights" pamphlet prior to the execution of any
home repair and | 25 | | remodeling contract. The consumer shall sign and date an
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| 1 | | acknowledgment form entitled "Consumer Rights Acknowledgment | 2 | | Form" that states:
"I, the homeowner, have received from the | 3 | | contractor a copy of the pamphlet
entitled 'Home Repair: Know | 4 | | Your Consumer Rights.'" The contractor or his or
her | 5 | | representative shall also sign and date the acknowledgment | 6 | | form, which
includes the name and address of the home repair | 7 | | and remodeling business. The
acknowledgment form shall be in | 8 | | duplicate and incorporated into the pamphlet.
The original | 9 | | acknowledgment form shall be retained by the contractor and the
| 10 | | duplicate copy shall be retained within the pamphlet by the | 11 | | consumer.
| 12 | | (b) For any contract for $1,000 or under, any person | 13 | | engaging in the
business
of home repair and remodeling shall | 14 | | provide to its customers a copy of the
"Home Repair: Know Your | 15 | | Consumer Rights" pamphlet. No written acknowledgment
of | 16 | | receipt of the pamphlet is required for a contract of $1,000 or | 17 | | under.
| 18 | | (c) The
pamphlet must be a separate
document, in at least | 19 | | 12 point type, and in legible ink. The pamphlet shall
read as | 20 | | follows:
| 21 | | "HOME REPAIR: KNOW YOUR CONSUMER RIGHTS
| 22 | | As you plan for your home repair/improvement project, it is | 23 | | important to
ask the right questions in order to protect your | 24 | | investment. The tips in this
fact sheet should allow you to |
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| 1 | | protect yourself and minimize the possibility
that a | 2 | | misunderstanding may occur.
| 3 | | AVOIDING HOME REPAIR FRAUD
| 4 | | Please use extreme caution when confronted with the following | 5 | | warning signs of
a potential scam:
| 6 | | (1) Door-to-door salespersons with no local connections | 7 | | who offer to do
home repair work for substantially less than | 8 | | the market price.
| 9 | | (2) Solicitations for repair work from a company that lists | 10 | | only a
telephone number or a post-office box number to contact, | 11 | | particularly if it is
an
out-of-state company.
| 12 | | (3) Contractors who fail to provide customers references | 13 | | when requested.
| 14 | | (4) Persons offering to inspect your home for free. Do not | 15 | | admit anyone
into your home unless he or she can present | 16 | | authentic identification
establishing his or her business | 17 | | status. When in doubt, do not hesitate to
call the
worker's | 18 | | employer to verify his or her identity.
| 19 | | (5) Contractors demanding cash payment for a job or who ask | 20 | | you to make a
check payable to a person other than the owner or | 21 | | company name.
| 22 | | (6) Offers from a contractor to drive you to the bank to | 23 | | withdraw funds to
pay for the work.
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| 1 | | CONTRACTS
| 2 | | (1) Get all estimates in writing.
| 3 | | (2) Do not be induced into signing a contract by | 4 | | high-pressure sales
tactics.
| 5 | | (3) Never sign a contract with blank spaces or one you do | 6 | | not fully
understand. If you are taking out a loan to finance | 7 | | the work, do not sign the
contract before your lender approves | 8 | | the loan.
| 9 | | (4) Remember, you have 3 business days from the time you | 10 | | sign your
contract
to cancel any contract if the sale is made | 11 | | at your home. The contractor cannot
deprive you of this right | 12 | | by initiating work, selling your contract to a
lender, or any | 13 | | other tactic.
| 14 | | (5) If the contractor does business under a name other than | 15 | | the
contractor's
real name, the business must either be | 16 | | incorporated or registered under the
Assumed Business Name Act. | 17 | | Check with the Secretary of State to see if the
business is
| 18 | | incorporated or with the county clerk to see if the business | 19 | | has registered
under the Assumed Business Name Act.
| 20 | | (6) Homeowners should check with local and county units of | 21 | | government to
determine if permits or inspections are required.
| 22 | | (7) Determine whether the contractor will guarantee his or | 23 | | her work and
products.
| 24 | | (8) Determine whether the contractor has the proper | 25 | | insurance.
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| 1 | | (9) Do not sign a certificate of completion or make final | 2 | | payment until
the
work is done to your satisfaction.
| 3 | | (10) Illinois law requires that, before payment, your | 4 | | contractor give you a sworn statement which lists: (1) all the | 5 | | persons or companies your contractor hired to work on your home | 6 | | and their addresses; and (2) the amounts previously paid, the | 7 | | amounts about to be paid, and the total amount owed after the | 8 | | payment to these persons or companies. The sworn statement | 9 | | should be fully completed, signed, and notarized.
When the | 10 | | contractor's sworn statement lists an amount due or to become | 11 | | due to a subcontractor, or when a subcontractor gives you | 12 | | notice of an amount due to the subcontractor, you must retain | 13 | | sufficient funds to pay that subcontractor.
Subcontractors | 14 | | give the contractors lien waivers when they are paid. Ask your | 15 | | contractor for copies of these lien waivers. If your contractor | 16 | | tells you he or she needs a payment from you in order to pay | 17 | | subcontractors, you have the right to pay the subcontractors | 18 | | directly. Remember, homeowners should know who provides | 19 | | supplies and labor for
any work performed on your home. | 20 | | Suppliers and subcontractors have a right to
file a lien | 21 | | against your property if the general contractor fails to pay | 22 | | them.
To protect your property, request lien waivers from the | 23 | | general contractor.
| 24 | | BASIC TERMS TO BE INCLUDED IN A CONTRACT
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| 1 | | (1) Contractor's full name, address, and telephone number. | 2 | | Illinois law
requires that
persons selling home repair and | 3 | | improvement services provide their customers
with notice of any | 4 | | change to their business name or address that comes about
prior | 5 | | to the agreed dates for beginning or completing the work.
| 6 | | (2) A description of the work to be performed.
| 7 | | (3) Starting and estimated completion dates.
| 8 | | (4) Total cost of work to be performed.
| 9 | | (5) Schedule and method of payment, including down payment, | 10 | | subsequent
payments, and final payment.
| 11 | | (6) A provision stating the grounds for termination of the | 12 | | contract by
either party. However, the homeowner must pay the | 13 | | contractor for work
completed. If the contractor fails to | 14 | | commence or complete work within the
contracted time period, | 15 | | the homeowner may cancel and may be entitled to a
refund of any | 16 | | down payment
or other payments made towards the work, upon | 17 | | written demand by certified mail.
| 18 | | (7) A provision stating the grounds for termination of the | 19 | | contract if you are notified by your insurer that all or any | 20 | | part of the claim or contract is not a covered loss under the | 21 | | insurance policy, you may cancel the contract by mailing or | 22 | | delivering written notice to (name of contractor) at (address | 23 | | of contractor's place of business) at any time prior to the | 24 | | earlier of midnight on the fifth business day after you have | 25 | | received such notice from your insurer or the thirtieth | 26 | | business day after receipt of a properly executed proof of loss |
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| 1 | | by the insurer from the insured. If you cancel, any payments | 2 | | made by you under the contract will be returned to you within | 3 | | 10 business days following receipt by the contractor of your | 4 | | cancellation notice. If, however, the contractor has provided | 5 | | any goods or services related to a catastrophe, acknowledged | 6 | | and agreed to by the insured homeowner in writing to be | 7 | | necessary to prevent damage to the premises, the contractor is | 8 | | entitled to the reasonable value of such goods and services. | 9 | | Homeowners should obtain a copy of the signed contract and | 10 | | keep it in a safe
place for reference as needed.
| 11 | | To file a complaint against a roofing contractor, contact | 12 | | the Illinois Department of Financial and Professional | 13 | | Regulation at 312-814-6910 or file a complaint directly on its | 14 | | website.
| 15 | | IF YOU THINK YOU HAVE BEEN DEFRAUDED OR YOU HAVE QUESTIONS
| 16 | | If you think you have been defrauded by a contractor or | 17 | | have any questions,
please bring
it to the attention of your | 18 | | State's Attorney or the Illinois Attorney General's
Office.
| 19 | | Attorney General Toll-Free Numbers
| 20 | | Carbondale (800) 243-0607
| 21 | | Springfield (800) 243-0618
| 22 | | Chicago (800) 386-5438".
| 23 | | (Source: P.A. 97-235, eff. 1-1-12.)
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