Illinois General Assembly - Full Text of HB6258
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Full Text of HB6258  99th General Assembly

HB6258 99TH GENERAL ASSEMBLY

  
  

 


 
99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB6258

 

Introduced 2/11/2016, by Rep. Norine Hammond

 

SYNOPSIS AS INTRODUCED:
 
815 ILCS 513/18
815 ILCS 513/20

    Amends the Home Repair and Remodeling Act in relation to repairs made following a loss occurrence. Provides that a loss occurrence includes a property and casualty loss in addition to weather-related losses.


LRB099 20614 KTG 45191 b

 

 

A BILL FOR

 

HB6258LRB099 20614 KTG 45191 b

1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Home Repair and Remodeling Act is amended by
5changing Sections 18 and 20 as follows:
 
6    (815 ILCS 513/18)
7    Sec. 18. Repairs following loss occurrences damaging
8weather.
9    (a) As used in this Section, "loss occurrence"
10"catastrophe" means a natural occurrence, including but not
11limited to flood, drought, earthquake, tornado, windstorm, or
12hailstorm, which damages or destroys more than one residence,
13or other property and casualty loss.
14    (b) A contractor offering home repair or remodeling
15services shall not advertise or promise to pay or rebate all or
16any portion of any insurance deductible as an inducement to the
17sale of goods or services. As used in this Section, a promise
18to pay or rebate includes granting any allowance or offering
19any discount against the fees to be charged or paying the
20insured or any person directly or indirectly associated with
21the property any form of compensation.
22    (c) A contractor offering home repair or remodeling
23services shall not accept money or any form of compensation in

 

 

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1exchange for allowing an out of area contractor to use its
2business name or license.
3    (d) A contractor offering home repair or remodeling
4services shall include its Illinois State roofing contractor
5license name and number as it appears on its Illinois State
6roofing license on all contracts, bids, and advertisements
7involving roofing work as required by the Illinois Roofing
8Industry Licensing Act.
9    (e) A person who has entered into a written contract with a
10contractor offering home repair or remodeling services to
11provide goods or services to be paid from the proceeds of a
12property and casualty insurance policy may cancel the contract
13prior to midnight on the earlier of the fifth business day
14after the insured has received written notice from the insurer
15that all or any part of the claim or contract is not a covered
16loss under the insurance policy or the thirtieth business day
17after receipt of a properly executed proof of loss by the
18insurer from the insured. Cancellation is evidenced by the
19insured giving written notice of cancellation to the contractor
20offering home repair or remodeling services at the address
21stated in the contract. Notice of cancellation, if given by
22mail, is effective upon deposit into the United States mail,
23postage prepaid and properly addressed to the contractor.
24Notice of cancellation may be given by delivering or mailing a
25signed and dated copy of the written notice of cancellation to
26the contractor's business address as stated in the contract.

 

 

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1Notice of cancellation shall include a copy of the written
2notice from the insurer to the effect that all or part of the
3claim is not a covered loss under the insurance policy. Notice
4of cancellation need not take a particular form and is
5sufficient if it indicates, by any form of written expression,
6the intention of the insured not to be bound by the contract.
7    (f) Any contract referred to in subsection (e), must
8contain a statement in at least 10 point boldface, in
9substantially the following form:
10        "You may cancel this contract at any time before
11        midnight on the earlier of the fifth business day after
12        you have received written notification from your
13        insurer that all or any part of the claim or contract
14        is not a covered loss under the insurance policy or the
15        thirtieth business day after your insurer has received
16        properly executed proof(s) of loss from you. See
17        attached notice of cancellation form for an
18        explanation of this right."
19    (g) Upon executing a contract referred to in subsection
20(e), furnish each insured a fully completed form in duplicate,
21captioned "NOTICE OF CANCELLATION", which shall be attached to
22the contract but easily detachable, and which shall contain
23boldface type of a minimum size of 10 points the following
24statement with the appropriate fields completed by the
25contractor:
26
"NOTICE OF CANCELLATION

 

 

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1            If you are notified by your insurer that all or any
2        part of the claim or contract is not a covered loss
3        under the insurance policy, you may cancel the contract
4        by mailing or delivering a signed and dated copy of
5        this cancellation notice or any other written notice to
6        (name of contractor) at (address of contractor's place
7        of business) at any time prior to midnight on the
8        earlier of the fifth business day after you have
9        received such notice from your insurer or the thirtieth
10        business day after your insurer has received properly
11        executed proof(s) of loss from you. If you cancel, any
12        payments made by you under the contract, other than
13        payments for goods or services related to a loss
14        occurrence catastrophe which you agreed in writing to
15        be necessary to prevent damage to your property, will
16        be returned to you within 10 business days following
17        receipt by the contractor of your cancellation notice.
18            I HEREBY CANCEL THIS TRANSACTION
19            ................................
20            (date)
21            ................................
22            (insured's signature)".
23    (h) Within 10 days after a contract referred to in
24subsection (e) has been cancelled, the contractor offering home
25repair or remodeling services shall tender to the insured any
26payments, partial payments, or deposits made by the insured and

 

 

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1any note or other evidence of indebtedness. If, however, the
2contractor has provided any goods or services related to a loss
3occurrence catastrophe, acknowledged and agreed to by the
4insured in writing to be necessary to prevent damage to the
5premises, the contractor is entitled to the reasonable value of
6such goods and services. Any provision in a contract referred
7to in subsection (e) that requires the payment of any fee for
8anything except goods or services related to a loss occurrence
9catastrophe shall not be enforceable against any insured who
10has cancelled a contract pursuant to this Section.
11    (i) A contractor offering home repair or remodeling
12services shall not represent, or offer or advertise to
13represent, on behalf of a homeowner on any insurance claim in
14connection with the repair or replacement of roof systems, or
15the performance of any other interior or exterior repair,
16replacement, construction or reconstruction work; or otherwise
17violate the Public Adjusters Law (Public Act 96-1332). A Public
18Adjuster means any person who acts on behalf of the insured in
19preparing and adjusting a claim for loss or damage covered by
20an insurance contract. A contractor offering home repair or
21remodeling services shall not call in or file a claim to an
22insurance carrier on the insured's behalf. A contractor
23offering home repair or remodeling services shall not climb on
24a roof or inspect for exterior damage without the insured's
25express permission. Nothing in this subsection shall be
26construed to prohibit a residential contractor from: (1)

 

 

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1providing an insured an estimate for repair, replacement,
2construction, or reconstruction of the insured's property and
3any such estimate may be submitted to the insured's insurance
4company; (2) conferring with an insurance company's
5representative about damage to an insured's property; or (3)
6discussing repair or replacement options with an insurance
7company's representative or the insured about options for the
8repair or replacement of the damage.
9(Source: P.A. 97-235, eff. 1-1-12.)
 
10    (815 ILCS 513/20)
11    Sec. 20. Consumer rights brochure.
12    (a) For any contract over $1,000, any person engaging in
13the business of home repair and remodeling shall provide to its
14customers a copy of the "Home Repair: Know Your Consumer
15Rights" pamphlet prior to the execution of any home repair and
16remodeling contract. The consumer shall sign and date an
17acknowledgment form entitled "Consumer Rights Acknowledgment
18Form" that states: "I, the homeowner, have received from the
19contractor a copy of the pamphlet entitled 'Home Repair: Know
20Your Consumer Rights.'" The contractor or his or her
21representative shall also sign and date the acknowledgment
22form, which includes the name and address of the home repair
23and remodeling business. The acknowledgment form shall be in
24duplicate and incorporated into the pamphlet. The original
25acknowledgment form shall be retained by the contractor and the

 

 

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1duplicate copy shall be retained within the pamphlet by the
2consumer.
3    (b) For any contract for $1,000 or under, any person
4engaging in the business of home repair and remodeling shall
5provide to its customers a copy of the "Home Repair: Know Your
6Consumer Rights" pamphlet. No written acknowledgment of
7receipt of the pamphlet is required for a contract of $1,000 or
8under.
9    (c) The pamphlet must be a separate document, in at least
1012 point type, and in legible ink. The pamphlet shall read as
11follows:
 
12
"HOME REPAIR: KNOW YOUR CONSUMER RIGHTS

 
13    As you plan for your home repair/improvement project, it is
14important to ask the right questions in order to protect your
15investment. The tips in this fact sheet should allow you to
16protect yourself and minimize the possibility that a
17misunderstanding may occur.
 
18
AVOIDING HOME REPAIR FRAUD

 
19Please use extreme caution when confronted with the following
20warning signs of a potential scam:
21    (1) Door-to-door salespersons with no local connections
22who offer to do home repair work for substantially less than

 

 

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1the market price.
2    (2) Solicitations for repair work from a company that lists
3only a telephone number or a post-office box number to contact,
4particularly if it is an out-of-state company.
5    (3) Contractors who fail to provide customers references
6when requested.
7    (4) Persons offering to inspect your home for free. Do not
8admit anyone into your home unless he or she can present
9authentic identification establishing his or her business
10status. When in doubt, do not hesitate to call the worker's
11employer to verify his or her identity.
12    (5) Contractors demanding cash payment for a job or who ask
13you to make a check payable to a person other than the owner or
14company name.
15    (6) Offers from a contractor to drive you to the bank to
16withdraw funds to pay for the work.
 
17
CONTRACTS

 
18    (1) Get all estimates in writing.
19    (2) Do not be induced into signing a contract by
20high-pressure sales tactics.
21    (3) Never sign a contract with blank spaces or one you do
22not fully understand. If you are taking out a loan to finance
23the work, do not sign the contract before your lender approves
24the loan.

 

 

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1    (4) Remember, you have 3 business days from the time you
2sign your contract to cancel any contract if the sale is made
3at your home. The contractor cannot deprive you of this right
4by initiating work, selling your contract to a lender, or any
5other tactic.
6    (5) If the contractor does business under a name other than
7the contractor's real name, the business must either be
8incorporated or registered under the Assumed Business Name Act.
9Check with the Secretary of State to see if the business is
10incorporated or with the county clerk to see if the business
11has registered under the Assumed Business Name Act.
12    (6) Homeowners should check with local and county units of
13government to determine if permits or inspections are required.
14    (7) Determine whether the contractor will guarantee his or
15her work and products.
16    (8) Determine whether the contractor has the proper
17insurance.
18    (9) Do not sign a certificate of completion or make final
19payment until the work is done to your satisfaction.
20    (10) Remember, homeowners should know who provides
21supplies and labor for any work performed on your home.
22Suppliers and subcontractors have a right to file a lien
23against your property if the general contractor fails to pay
24them. To protect your property, request lien waivers from the
25general contractor.
 

 

 

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1
BASIC TERMS TO BE INCLUDED IN A CONTRACT

 
2    (1) Contractor's full name, address, and telephone number.
3Illinois law requires that persons selling home repair and
4improvement services provide their customers with notice of any
5change to their business name or address that comes about prior
6to the agreed dates for beginning or completing the work.
7    (2) A description of the work to be performed.
8    (3) Starting and estimated completion dates.
9    (4) Total cost of work to be performed.
10    (5) Schedule and method of payment, including down payment,
11subsequent payments, and final payment.
12    (6) A provision stating the grounds for termination of the
13contract by either party. However, the homeowner must pay the
14contractor for work completed. If the contractor fails to
15commence or complete work within the contracted time period,
16the homeowner may cancel and may be entitled to a refund of any
17down payment or other payments made towards the work, upon
18written demand by certified mail.
19    (7) A provision stating the grounds for termination of the
20contract if you are notified by your insurer that all or any
21part of the claim or contract is not a covered loss under the
22insurance policy, you may cancel the contract by mailing or
23delivering written notice to (name of contractor) at (address
24of contractor's place of business) at any time prior to the
25earlier of midnight on the fifth business day after you have

 

 

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1received such notice from your insurer or the thirtieth
2business day after receipt of a properly executed proof of loss
3by the insurer from the insured. If you cancel, any payments
4made by you under the contract will be returned to you within
510 business days following receipt by the contractor of your
6cancellation notice. If, however, the contractor has provided
7any goods or services related to a loss occurrence catastrophe,
8acknowledged and agreed to by the insured homeowner in writing
9to be necessary to prevent damage to the premises, the
10contractor is entitled to the reasonable value of such goods
11and services.
12    Homeowners should obtain a copy of the signed contract and
13keep it in a safe place for reference as needed.
14    To file a complaint against a roofing contractor, contact
15the Illinois Department of Financial and Professional
16Regulation at 312-814-6910 or file a complaint directly on its
17website.
 
18
IF YOU THINK YOU HAVE BEEN DEFRAUDED OR YOU HAVE QUESTIONS
19    If you think you have been defrauded by a contractor or
20have any questions, please bring it to the attention of your
21State's Attorney or the Illinois Attorney General's Office.
22Attorney General Toll-Free Numbers
23Carbondale         (800) 243-0607
24Springfield        (800) 243-0618
25Chicago            (800) 386-5438".

 

 

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1(Source: P.A. 97-235, eff. 1-1-12.)