SB1029sam001 95TH GENERAL ASSEMBLY

Sen. Michael Noland

Filed: 5/13/2008

09500SB1029sam001 LRB095 05914 AJO 49598 a

AMENDMENT TO SENATE BILL 1029

AMENDMENT NO. ______. Amend Senate Bill 1029 by replacing the title with the following:

"AN ACT concerning consumer contracts."; and

by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Consumer Contract Plain Language Act.

Section 5. Definitions. As used in this Act, unless the context clearly requires otherwise:

"Consumer" means an individual who, primarily for personal, family, or household purposes, either: (i) gives or promises to give money or other consideration in exchange for an interest in services or real or personal property, including money, or (ii) leases residential premises for a term not exceeding 3 years.

"Consumer contract" means a written contract with a consumer in which the price, excluding interest or finance charges, is $100,000 or less.

Section 10. Plain language required. Except as provided in Section 15, every consumer contract made with an alternative gas supplier after the effective date of this Act shall meet all of the following criteria:

(1) The contract shall adequately inform the consumer of the rights and duties fixed by the contract.

(2) The contract shall be sufficiently clear and readable for the ordinary reader, using, so far as is practical, words with common, everyday meanings.

(3) The contract shall be appropriately divided into sections and paragraphs, and the sections shall contain captions.

(4) The contract shall be printed in a clear and conspicuous manner, as defined in the Uniform Commercial Code.

Section 15. Exceptions.

(a) This Act does not prohibit the use of the following in consumer contracts with alternative gas suppliers:

(1) Words or phrases, or forms of agreement, required by State or federal law or by rule or regulation of a State or federal governmental instrumentality.

(2) Technical terms used to describe a service or property that is the subject of the contract if (i) those terms are customarily used by consumers in connection with the service or property or (ii) there is no sufficiently clear and readable substitute for those terms.

(b) Other than the provisions delineated in subsection (c) of this Section, this Act does not apply in any manner to:

(1) a State bank or national bank, as those terms are defined in the Illinois Banking Act, or any subsidiary of a State bank or national bank;

(2) a bank holding company, as that term is defined in the Illinois Bank Holding Company Act of 1957, or any subsidiary of a bank holding company;

(3) a foreign banking corporation, its subsidiary, or its representative office, as those terms are defined in the Foreign Banking Office Act, provided that such subsidiaries and representative offices are engaged in the provision of banking services to Illinois consumers;

(4) a corporate fiduciary, as that term is defined in the Corporate Fiduciary Act, or any subsidiary of a corporate fiduciary that also meets the definition of corporate fiduciary outlined in the Corporate Fiduciary Act;

(5) a savings bank organized under the Savings Bank Act, or a federal savings bank organized under federal law, or any subsidiary of a savings bank or federal savings bank;

(6) a savings bank holding company organized under the Savings Bank Act, or any subsidiary of a savings bank holding company;

(7) an association or federal association, as those terms are defined in the Illinois Savings and Loan Act of 1985, or any subsidiary of an association or federal association;

(8) a foreign savings and loan association or foreign savings bank subject to the Illinois Savings and Loan Act of 1985, or any subsidiary of a foreign savings and loan association or foreign savings bank;

(9) a savings and loan association holding company, as that term is defined in the Illinois Savings and Loan Act of 1985, or any subsidiary of a savings and loan association holding company; or

(10) a credit union, as that term is defined in the Illinois Credit Union Act, or any subsidiary of a credit union.

(c) Notwithstanding any other law, rule, or regulation, no retail store that in any manner associates with any entity referenced in subsection (b) of this Section to provide financing to customers of the retail outlets is exempt from any applicable requirement of the Act. Nothing in this Section shall be construed to exempt any entity other than those specifically delineated in subsection (b) of this Section from adhering to the requirements of this Section.

Section 20. Violation.

(a) A violation of Section 10 does not render a consumer contract with an alternative gas supplier void or voidable, nor does it constitute a defense to an action or proceeding for breach of the contract or to enforce the contract.

(b) If the Attorney General has reason to believe that a business entity is using or has used a consumer contract that violates Section 10 and determines that an action under this subsection would be in the public interest, the Attorney General may bring an action, in the name of the People of the State of Illinois, against that business entity to restrain the use of that consumer contract.".