Executive Committee
Adopted in House Comm. on Mar 04, 2004
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1 | AMENDMENT TO HOUSE BILL 5875
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2 | AMENDMENT NO. ______. Amend House Bill 5875 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Physical Fitness Services Act is amended by | ||||||
5 | changing Section 8 as follows:
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6 | (815 ILCS 645/8) (from Ch. 29, par. 58)
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7 | Sec. 8. Prohibited contract provisions. (a) No contract for | ||||||
8 | physical
fitness services
shall require payment of a total | ||||||
9 | amount in excess of $4500
$2500 per year, and every such
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10 | contract must so provide in writing;
except that this limit | ||||||
11 | shall not apply to any contract for group membership,
other | ||||||
12 | than family membership, where the purchaser is a corporation or | ||||||
13 | other
business entity or any social, fraternal or charitable | ||||||
14 | organization not
created for the purpose of encouraging this | ||||||
15 | contractual arrangement.
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16 | (b) No contract for physical fitness services shall require | ||||||
17 | payments or
financing over a period in excess of 3 years from | ||||||
18 | the date the contract
is entered into, nor shall the term of | ||||||
19 | any such contract be measured by
the life of the customer. The | ||||||
20 | initial term of services to be rendered under
the contract may | ||||||
21 | not extend
over a period of more than 2 years from the date the | ||||||
22 | parties enter into
the contract; provided that the customer may | ||||||
23 | be given an option to renew
the contract for consecutive | ||||||
24 | periods of not more than one year each for
a reasonable |
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1 | consideration not less than 10% of the cash price of the | ||||||
2 | original
membership.
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3 | (c) No contract for physical fitness services shall require | ||||||
4 | or entail
the execution of any note by the customer which, when | ||||||
5 | separately negotiated,
will cut off as to third parties
any | ||||||
6 | right of action or defense which the customer may have against | ||||||
7 | the physical
fitness center. No right of action or defense | ||||||
8 | arising out of a contract
for physical fitness services which | ||||||
9 | the customer has against the center
shall be cut off by | ||||||
10 | assignment of the contract whether or not the assignee
acquires | ||||||
11 | the contract
in good faith and for value. Such an assignee is | ||||||
12 | not a holder in due course.
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13 | (Source: P.A. 84-1463.)
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14 | Section 99. Effective date. This Act takes effect upon | ||||||
15 | becoming law.".
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