Public Act 100-0658
 
HB4275 EnrolledLRB100 15336 KTG 32147 b


  
    AN ACT concerning business.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  



 
 
    Section 5. The Physical Fitness Services Act is amended  by 
changing Section 8 as follows:
 



    (815 ILCS 645/8)  (from Ch. 29, par. 58)



    Sec. 8. Prohibited contract provisions. 
    (a) (Blank). No contract for basic physical
fitness 
services
shall require payment of a total amount in excess of 
$2500 per year, and every such
contract must so provide in 
writing;
except that this limit shall not apply to any contract 
for: (1) family or couple memberships, or
(2) group   
memberships, where the purchaser is a corporation or other

business entity or any social, fraternal or charitable 
organization not
created for the purpose of encouraging this 
contractual arrangement.

    (b) (Blank). No contract for family or couple memberships 
for basic physical fitness services shall require payment in 
excess of $2,500 per year per person covered under the 
membership.

    (c) No contract for physical fitness services shall require 
payments or
financing over a period in excess of 3 years from 
the date the contract
is entered into, nor shall the term of 
any such contract be measured by
the life of the customer.  The 
initial term of services to be rendered under
the contract may 
not extend
over a period of more than one year 2 years from the 
date the parties enter into
the contract; provided that the 
customer may be given an option to renew
the contract for 
consecutive periods of not more than one year each for
a 
reasonable consideration not less than 10% of the cash price of 
the original
membership.

    (d) No contract for physical fitness services shall require 
or entail
the execution of any note by the customer which, when 
separately negotiated,
will cut off as to third parties
any 
right of action or defense which the customer may have against 
the physical
fitness center.  No right of action or defense 
arising out of a contract
for physical fitness services which 
the customer has against the center
shall be cut off by 
assignment of the contract whether or not the assignee
acquires 
the contract
in good faith and for value.  Such an assignee is 
not a holder in due course.

(Source: P.A. 94-663, eff. 1-1-06; 94-687, eff. 11-3-05.)