[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
| [ Engrossed ] | [ House Amendment 001 ] | [ Senate Amendment 001 ] |
90_SB0356
New Act
815 ILCS 505/2Z from Ch. 121 1/2, par. 262Z
Creates the Home Repair and Remodeling Registration Act.
Provides for the registration of home repair and remodeling
businesses. Provides that insurance is required prior to the
issuance of a certificate of registration. Provides that
these businesses shall furnish to the customer, in writing,
the charge for making an estimate and a written contract or
work order stating the total cost. Provides that these
businesses shall notify the customer and obtain prior written
approval for charges in excess of the amount specified in the
contract. Provides that all work performed by one of these
businesses shall be recorded on a sworn statement. Prohibits
certain acts. Provides for enforcement by the Attorney
General or State's Attorney, penalties, and private rights of
action. Amends the Consumer Fraud and Deceptive Business
Practices Act to provide that any person who knowingly
violates the Home Repair and Remodeling Registration Act
commits an unlawful practice. Effective January 1, 1998.
LRB9002850NTcc
LRB9002850NTcc
1 AN ACT concerning home repair and remodeling.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the Home
5 Repair and Remodeling Registration Act.
6 Section 5. Policy. It is the public policy of this State
7 that in order to safeguard the life, health, property, and
8 public welfare of its citizens, the business of home repair
9 and remodeling is a matter affecting the public interest, and
10 any person desiring to engage in the business as defined in
11 this Act shall be required to obtain a certificate of
12 registration.
13 Section 10. Definitions. In this Act:
14 "Home repair and remodeling" means the fixing, replacing,
15 altering, converting, modernizing, improving, or making of an
16 addition to any real property primarily designed or used as a
17 residence. "Home repair and remodeling" includes the
18 construction, installation, replacement, or improvement of
19 driveways, swimming pools, porches, kitchens, bathrooms,
20 basements, chimneys, chimney liners, garages, fences, fallout
21 shelters, central air conditioning, central heating, boilers,
22 furnaces, hot water heaters, electrical wiring, sewers,
23 plumbing fixtures, storm doors, storm windows, roofs,
24 awnings, and other improvements to structures within the
25 residence or upon the land adjacent to the residence. "Home
26 repair and remodeling" does not include the sale,
27 installation, cleaning, or repair of carpets; the sale of
28 goods or materials by a merchant who does not directly or
29 through a subsidiary perform any work or labor in connection
30 with the installation or application of the goods and
-2- LRB9002850NTcc
1 materials; the repair, installation, replacement, or
2 connection of any home appliance including but not limited to
3 disposals, refrigerators, ranges, garage door openers,
4 television antennas, washing machines, telephones, or other
5 appliances when the persons replacing, installing, repairing,
6 or connecting the home appliance are employees or agents of
7 the merchant that sold the home appliance; television repair;
8 or landscaping.
9 "Person" means any individual, partnership, corporation,
10 business, trust, or other legal entity.
11 "Residence" means a single-family home or dwelling or a
12 multiple-family home or dwelling containing 6 or fewer
13 apartments, condominiums, town houses, or dwelling units,
14 used or intended to be used by occupants as dwelling places.
15 This Act does not apply to original construction of
16 single-family or multi-family residences or repairs to
17 dwellings containing more than 6 apartments or family units.
18 "Office" means the Office of the Commissioner of Banks
19 and Real Estate of the State of Illinois.
20 "Commissioner" means the Commissioner of the Office of
21 the Commissioner of Banks and Real Estate of the State of
22 Illinois.
23 Section 15. Registration required. No person shall engage
24 in the business of home repair and remodeling within the
25 State of Illinois without having obtained a certificate of
26 registration under this Act in addition to any other license
27 that may be required by law. The following persons are not
28 required to obtain a certificate of registration for home
29 repair and remodeling:
30 (1) Persons who perform home repairs and remodeling
31 on their own property.
32 (2) Individuals who are employees of persons
33 registered under this Act when they are working within
-3- LRB9002850NTcc
1 the scope of their employment.
2 Section 18. Registration fee. An annual registration
3 fee, not to exceed $100, for a home repair and remodeling
4 certificate of registration shall be as set by the Office and
5 paid by each registrant at the time of application for and
6 upon renewal of a certificate of registration.
7 Section 20. Registration application. Application for a
8 home repair and remodeling certificate of registration shall
9 be made in writing on a form provided by the Commissioner and
10 signed and sworn to by the applicant or, if the applicant is
11 a corporation, by its duly authorized agent. Each corporate
12 applicant for a home repair and remodeling certificate of
13 registration shall be organized or qualified to do business
14 under the laws of the State of Illinois. Each application
15 shall contain and the applicant shall furnish the following:
16 (1) The full name, residence, business address, and
17 business telephone number of the applicant.
18 (2) If the applicant is a corporation:
19 (A) the corporate name and business address and
20 telephone number of the principal office or place of
21 business of the applicant;
22 (B) the date and state of incorporation; and
23 (C) the names, residence addresses, and residence
24 telephone numbers of the corporate officers and the
25 corporation's registered agent.
26 (3) If the applicant is a partnership:
27 (A) the name and business address and telephone
28 number of the principal office or place of business of
29 the applicant; and
30 (B) the names, residence addresses, and residence
31 telephone numbers of all partners.
32 (4) If the applicant is a business trust or other legal
-4- LRB9002850NTcc
1 entity:
2 (A) the name and business address and telephone
3 number of the principal office or place of business of
4 the applicant;
5 (B) the names, residence addresses, and residence
6 telephone numbers of all trustees or, for any other legal
7 entity, its members; and
8 (C) evidence of compliance with any statutory
9 requirements pertaining to that legal entity, including
10 compliance with any laws pertaining to the use of
11 fictitious names, if a fictitious name is used.
12 (5) A description of the type of home repair and
13 remodeling the applicant will engage in.
14 (6) A statement indicating whether there are any
15 outstanding judgments or unresolved consumer complaints on
16 file with the Office of the Illinois Attorney General or the
17 State's Attorney of any county of this State against the
18 applicant, and (i) if the applicant is a partnership, any
19 complaint against the partnership or any partner, (ii) if the
20 applicant is a business trust, any complaint against the
21 business trust or any of its trustees, or (iii) if the
22 applicant is any other legal entity, any complaint against
23 that legal entity or any of its members, related to the
24 performance of home repair and remodeling and, if so, the
25 applicant shall list the amount of any judgment, any case or
26 consumer complaint number, and the court rendering the
27 judgment, if any.
28 (7) A statement listing the name and address of the
29 principal location from which the applicant has performed
30 home repairs or remodeling at any time in the last 5 years.
31 Section 25. Business as an individual; application as
32 legal entity.
33 (a) When an individual applies to do business in his or
-5- LRB9002850NTcc
1 her own name, a certificate of registration, when granted,
2 shall be issued only to that individual.
3 (b) If the applicant applies as a partnership,
4 corporation, business trust, or other legal entity,
5 application shall be made for each such entity.
6 Section 30. Insurance required. Prior to the issuance of
7 any home repair and remodeling certificate of registration,
8 each applicant shall furnish to the Commissioner a
9 certificate of public liability and property damage insurance
10 in the amount of $100,000 per person and $300,000 per
11 occurrence of bodily injury, $50,000 per occurrence for
12 property damage, and in the amount of $10,000 per occurrence
13 for improper home repair or remodeling not in conformance
14 with applicable State, county, or municipal building codes.
15 Each registrant shall maintain the insurance coverage
16 required under this Section in full force and effect for the
17 duration of the certificate of registration period. No home
18 repair and remodeling certificate of registration shall be
19 renewed unless the registrant has furnished proof of
20 insurance and payment of premium for the entire period
21 covered by the renewed certificate of registration.
22 Section 35. Certificate of registration; display;
23 notification of changes. The certificate of registration
24 shall be displayed in a conspicuous location near the
25 entrance of the principal place of business of the
26 registrant. Each registrant shall notify the Commissioner in
27 writing within 14 days after any change in the facts stated
28 in the application for certificate of registration.
29 Section 40. Certificate of registration number to be
30 printed; location. The registrant shall print his or her
31 certificate of registration number legibly on the front page
-6- LRB9002850NTcc
1 of every contract and estimate for home repair and remodeling
2 and upon every application for a building permit. In
3 addition, the certificate number shall appear in any
4 advertisement placed by or on behalf of anyone engaged in the
5 home repair and remodeling business. The registrant shall
6 also affix his or her certificate of registration number and
7 the registrant's name to all business cards and on all
8 vehicles used in the course of his or her business as a home
9 repair and remodeling contractor.
10 Section 45. Charges for estimates. Prior to initiating a
11 home repair or remodeling work estimate, a person engaged in
12 the business of home repair or remodeling shall furnish to
13 the customer, in writing, the charge for making the estimate,
14 if any. When an estimate is made, a person engaged in the
15 business of home repair or remodeling shall provide and the
16 customer shall be given a signed copy of the written estimate
17 with the word "estimate" conspicuously placed on the copy,
18 along with and the name and address of the business.
19 Section 50. Written contract; costs enumerated. Prior to
20 initiating home repair or remodeling work, a person engaged
21 in the business of home repair or remodeling shall furnish to
22 the customer for signature a written contract or work order
23 that states the total cost, including parts and materials
24 listed with reasonable particularity.
25 Section 55. Charges in excess of contract; customer
26 approval required. Any person engaged in the business of
27 making home repairs or remodeling shall notify the customer
28 and obtain prior written approval before performing any work
29 that would result in charges in excess of the amount
30 specified in the original contract. In no event shall a
31 customer be required to pay more than the amount specified in
-7- LRB9002850NTcc
1 the original contract if the customer did not receive the
2 required notification and give written approval of additional
3 costs not reflected in the original estimate.
4 Section 60. Liquidated damages and mandatory arbitration.
5 Every liquidated damages provision or mandatory arbitration
6 clause, or both, contained in a contract for home repair or
7 remodeling must be prominently disclosed on the face of the
8 contract in at least 10 point type in close proximity to the
9 customer signature line.
10 Section 65. Sworn statement. All work performed by a
11 person engaged in the business of making home repairs or
12 remodeling shall be recorded on a sworn statement with the
13 name and address of the business on the statement, detailing
14 and describing all services or work performed and all parts
15 and materials supplied and the exact charges for each. One
16 copy of the sworn statement shall be given the customer upon
17 completion of the home repairs or remodeling.
18 Section 70. Waiver of customer rights prohibited. No
19 person engaged in the business of making home repairs or
20 remodeling shall demand a waiver of any customer's rights
21 enumerated in this Act as a precondition to acceptance of
22 repair work. Any waiver of a consumer's rights enumerated in
23 this Act is void as against public policy and wholly
24 unenforceable.
25 Section 75. Estoppel for nonregistration. Any person who
26 engages in the home repair and remodeling business and fails
27 to register under this Act may not enforce liens, collect
28 payment, or maintain an action for collection or enforcement
29 of home repair and remodeling contract obligations at law or
30 in equity.
-8- LRB9002850NTcc
1 Section 80. Unlawful acts. It is unlawful for any person
2 engaged in the business of home repairs and remodeling to:
3 (1) Contract for or engage in the business of home
4 repairs and remodeling within this State without being
5 currently registered under to this Act.
6 (2) Remodel or make repairs or charge for
7 remodeling or repair work before obtaining a signed
8 contract or work order.
9 (3) Fail to disclose prior to preparing an estimate
10 any service charge or minimum charge before making the
11 estimate.
12 (4) Knowingly charge for any services that are not
13 actually performed in making a home repair or in
14 remodeling, or knowingly misinform a customer concerning
15 what is wrong with an item, or fraudulently substituting
16 parts or materials when the substitution has no relation
17 to the repairing or servicing of an item.
18 (5) Before accepting payment by the customer for
19 any home repairs or remodeling, knowingly fail to deliver
20 to the customer the verified statement in writing
21 required by the Mechanics Lien Act, containing a complete
22 listing of the names and addresses of all parties
23 furnishing labor and materials.
24 (6) Tender to consumers affidavits of completion
25 for signature in advance of actual job completion.
26 Section 85. Enforcement.
27 (a) The Attorney General or the State's Attorney of any
28 county in this State may bring an action in the name of the
29 people of the State against any person to restrain and
30 prevent any violation of this Act. In the enforcement of this
31 Act, the Attorney General or the State's Attorney may accept
32 an assurance of voluntary compliance from anyone engaged in
33 any conduct, act, or practice deemed in violation of this
-9- LRB9002850NTcc
1 Act. Failure to perform the terms or any such assurance
2 constitutes prima facie proof of a violation of this Act.
3 (b) All remedies, penalties, and authority granted to
4 the Attorney General or the State's Attorney of any county in
5 this State by the Consumer Fraud and Deceptive Business
6 Practices Act shall be available to him or her for
7 enforcement of this Act, and any violation of this Act shall
8 constitute a violation of the Consumer Fraud and Deceptive
9 Business Practices Act.
10 (c) The Commissioner shall maintain a roster of all
11 registrants and of all persons whose home repair and
12 remodeling certificates of registration have been suspended
13 or revoked within the previous 5 years. The record shall be
14 made available to the public for a reasonable fee to defray
15 the cost of copying.
16 (d) No State, county, or municipal official charged with
17 issuing building permits may issue a building permit without
18 first having received the applicant's registration number.
19 Section 90. Penalties. Any person who willfully violates
20 any provision of this Act is guilty of a Class A misdemeanor
21 for a first offense and a Class 4 felony for each succeeding
22 offense.
23 Section 95. Private right of action.
24 (a) Any person who suffers damage as a result of a
25 violation of this Act committed by any other person may bring
26 an action against that person. The court, in its discretion
27 may award actual damages or any other relief that the court
28 deems proper.
29 (b) The action may be commenced in the county in which
30 the person against whom it is brought resides, has his or her
31 principal place of business, or is doing business, or in the
32 county in which the transaction or any substantial portion of
-10- LRB9002850NTcc
1 the transaction occurred.
2 (c) In any action brought by a person under this
3 Section, the court may grant injunctive relief when
4 appropriate and may award, in addition to the relief provided
5 in this Section, reasonable attorney's fees and costs.
6 Section 100. Application of other law. The provisions of
7 this Act are not exclusive and do not relieve the persons
8 subject to this Act from compliance with all other applicable
9 provisions of the law.
10 Section 105. Severability. The provisions of this Act are
11 severable under Section 1.31 of the Statute on Statutes.
12 Section 700. The Consumer Fraud and Deceptive Business
13 Practices Act is amended by changing 2Z as follows:
14 (815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)
15 Sec. 2Z. Violations of other Acts. Any person who
16 knowingly violates the Dance Studio Act, the Physical Fitness
17 Services Act, the Hearing Instrument Consumer Protection Act,
18 the Illinois Union Label Act, the Job Referral and Job
19 Listing Services Consumer Protection Act, the Travel
20 Promotion Consumer Protection Act, the Credit Services
21 Organizations Act, the Automatic Telephone Dialers Act, the
22 Pay-Per-Call Services Consumer Protection Act, the Telephone
23 Solicitations Act, the Illinois Funeral or Burial Funds Act,
24 the Cemetery Care Act, or the Pre-Need Cemetery Sales Act, or
25 the Home Repair and Remodeling Registration Act commits an
26 unlawful practice within the meaning of this Act.
27 (Source: P.A. 88-288; 89-72, eff. 12-31-95; 89-615, eff.
28 8-9-96.)
29 Section 999. Effective date. This Act take effect January
-11- LRB9002850NTcc
1 1, 1998.