Full Text of HB3034 97th General Assembly
HB3034eng 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning business.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Home Repair and Remodeling Act is amended by | 5 | | adding Section 18 and by changing Section 20 as follows: | 6 | | (815 ILCS 513/18 new) | 7 | | Sec. 18. Repairs following damaging weather. | 8 | | (a) As used in this Section, "catastrophe" means a natural | 9 | | occurrence, including but not limited to flood, drought, | 10 | | earthquake, tornado, windstorm, or hailstorm, which damages or | 11 | | destroys more than one residence. | 12 | | (b) A contractor offering home repair or remodeling | 13 | | services shall not advertise or promise to pay or rebate all or | 14 | | any portion of any insurance deductible as an inducement to the | 15 | | sale of goods or services. As used in this Section, a promise | 16 | | to pay or rebate includes granting any allowance or offering | 17 | | any discount against the fees to be charged or paying the | 18 | | insured or any person directly or indirectly associated with | 19 | | the property any form of compensation. | 20 | | (c) A contractor offering home repair or remodeling | 21 | | services shall not accept money or any form of compensation in | 22 | | exchange for allowing an out of area contractor to use its | 23 | | business name or license. |
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| 1 | | (d) A contractor offering home repair or remodeling | 2 | | services shall include its Illinois State roofing contractor | 3 | | license name and number as it appears on its Illinois State | 4 | | roofing license on all contracts, bids, and advertisements | 5 | | involving roofing work as required by the Illinois Roofing | 6 | | Industry Licensing Act. | 7 | | (e) A person who has entered into a written contract with a | 8 | | contractor offering home repair or remodeling services to | 9 | | provide goods or services to be paid from the proceeds of a | 10 | | property and casualty insurance policy may cancel the contract | 11 | | prior to midnight on the earlier of the fifth business day | 12 | | after the insured has received written notice from the insurer | 13 | | that all or any part of the claim or contract is not a covered | 14 | | loss under the insurance policy or the thirtieth business day | 15 | | after receipt of a properly executed proof of loss by the | 16 | | insurer from the insured. Cancellation is evidenced by the | 17 | | insured giving written notice of cancellation to the contractor | 18 | | offering home repair or remodeling services at the address | 19 | | stated in the contract. Notice of cancellation, if given by | 20 | | mail, is effective upon deposit into the United States mail, | 21 | | postage prepaid and properly addressed to the contractor. | 22 | | Notice of cancellation may be given by delivering or mailing a | 23 | | signed and dated copy of the written notice of cancellation to | 24 | | the contractor's business address as stated in the contract. | 25 | | Notice of cancellation shall include a copy of the written | 26 | | notice from the insurer to the effect that all or part of the |
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| 1 | | claim is not a covered loss under the insurance policy. Notice | 2 | | of cancellation need not take a particular form and is | 3 | | sufficient if it indicates, by any form of written expression, | 4 | | the intention of the insured not to be bound by the contract. | 5 | | (f) Any contract referred to in subsection (e), must | 6 | | contain a statement in at least 10 point boldface, in | 7 | | substantially the following form: | 8 | | "You may cancel this contract at any time before | 9 | | midnight on the earlier of the fifth business day after | 10 | | you have received written notification from your | 11 | | insurer that all or any part of the claim or contract | 12 | | is not a covered loss under the insurance policy or the | 13 | | thirtieth business day after your insurer has received | 14 | | properly executed proof(s) of loss from you. See | 15 | | attached notice of cancellation form for an | 16 | | explanation of this right." | 17 | | (g) Upon executing a contract referred to in subsection | 18 | | (e), furnish each insured a fully completed form in duplicate, | 19 | | captioned "NOTICE OF CANCELLATION", which shall be attached to | 20 | | the contract but easily detachable, and which shall contain | 21 | | boldface type of a minimum size of 10 points the following | 22 | | statement with the appropriate fields completed by the | 23 | | contractor: | 24 | | "NOTICE OF CANCELLATION | 25 | | If you are notified by your insurer that all or any | 26 | | part of the claim or contract is not a covered loss |
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| 1 | | under the insurance policy, you may cancel the contract | 2 | | by mailing or delivering a signed and dated copy of | 3 | | this cancellation notice or any other written notice to | 4 | | (name of contractor) at (address of contractor's place | 5 | | of business) at any time prior to midnight on the | 6 | | earlier of the fifth business day after you have | 7 | | received such notice from your insurer or the thirtieth | 8 | | business day after your insurer has received properly | 9 | | executed proof(s) of loss from you. If you cancel, any | 10 | | payments made by you under the contract, other than | 11 | | payments for goods or services related to a catastrophe | 12 | | which you agreed in writing to be necessary to prevent | 13 | | damage to your property, will be returned to you within | 14 | | 10 business days following receipt by the contractor of | 15 | | your cancellation notice. | 16 | | I HEREBY CANCEL THIS TRANSACTION | 17 | | ................................ | 18 | | (date) | 19 | | ................................ | 20 | | (insured's signature)". | 21 | | (h) Within 10 days after a contract referred to in | 22 | | subsection (e) has been cancelled, the contractor offering home | 23 | | repair or remodeling services shall tender to the insured any | 24 | | payments, partial payments, or deposits made by the insured and | 25 | | any note or other evidence of indebtedness. If, however, the | 26 | | contractor has provided any goods or services related to a |
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| 1 | | catastrophe, acknowledged and agreed to by the insured in | 2 | | writing to be necessary to prevent damage to the premises, the | 3 | | contractor is entitled to the reasonable value of such goods | 4 | | and services. Any provision in a contract referred to in | 5 | | subsection (e) that requires the payment of any fee for | 6 | | anything except goods or services related to a catastrophe | 7 | | shall not be enforceable against any insured who has cancelled | 8 | | a contract pursuant to this Section. | 9 | | (i) A contractor offering home repair or remodeling | 10 | | services shall not represent, or offer or advertise to | 11 | | represent, on behalf of a homeowner on any insurance claim in | 12 | | connection with the repair or replacement of roof systems, or | 13 | | the performance of any other exterior repair, replacement, | 14 | | construction or reconstruction work; or otherwise violate the | 15 | | Public Adjusters Law. A contractor offering home repair or | 16 | | remodeling services shall not call in or file a claim to an | 17 | | insurance carrier on the insured's behalf. A contractor | 18 | | offering home repair or remodeling services shall not climb on | 19 | | a roof or inspect for exterior damage without the insured's | 20 | | express permission. Nothing in this subsection shall be | 21 | | construed to prohibit a residential contractor from: (1) | 22 | | providing an insured an estimate for repair, replacement, | 23 | | construction, or reconstruction of the insured's property and | 24 | | any such estimate may be submitted to the insured's insurance | 25 | | company; (2) conferring with an insurance company's | 26 | | representative about damage to an insured's property; or (3) |
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| 1 | | discussing repair or replacement options with an insurance | 2 | | company's representative or the insured about options for the | 3 | | repair or replacement of the damage.
| 4 | | (815 ILCS 513/20)
| 5 | | Sec. 20. Consumer rights brochure.
| 6 | | (a) For any contract over $1,000, any
person engaging in | 7 | | the business
of home repair and remodeling shall provide to its | 8 | | customers a copy of the
"Home Repair: Know Your Consumer | 9 | | Rights" pamphlet prior to the execution of any
home repair and | 10 | | remodeling contract. The consumer shall sign and date an
| 11 | | acknowledgment form entitled "Consumer Rights Acknowledgment | 12 | | Form" that states:
"I, the homeowner, have received from the | 13 | | contractor a copy of the pamphlet
entitled 'Home Repair: Know | 14 | | Your Consumer Rights.'" The contractor or his or
her | 15 | | representative shall also sign and date the acknowledgment | 16 | | form, which
includes the name and address of the home repair | 17 | | and remodeling business. The
acknowledgment form shall be in | 18 | | duplicate and incorporated into the pamphlet.
The original | 19 | | acknowledgment form shall be retained by the contractor and the
| 20 | | duplicate copy shall be retained within the pamphlet by the | 21 | | consumer.
| 22 | | (b) For any contract for $1,000 or under, any person | 23 | | engaging in the
business
of home repair and remodeling shall | 24 | | provide to its customers a copy of the
"Home Repair: Know Your | 25 | | Consumer Rights" pamphlet. No written acknowledgment
of |
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| 1 | | receipt of the pamphlet is required for a contract of $1,000 or | 2 | | under.
| 3 | | (c) The
pamphlet must be a separate
document, in at least | 4 | | 12 point type, and in legible ink. The pamphlet shall
read as | 5 | | follows:
| 6 | | "HOME REPAIR: KNOW YOUR CONSUMER RIGHTS
| 7 | | As you plan for your home repair/improvement project, it is | 8 | | important to
ask the right questions in order to protect your | 9 | | investment. The tips in this
fact sheet should allow you to | 10 | | protect yourself and minimize the possibility
that a | 11 | | misunderstanding may occur.
| 12 | | AVOIDING HOME REPAIR FRAUD
| 13 | | Please use extreme caution when confronted with the following | 14 | | warning signs of
a potential scam:
| 15 | | (1) Door-to-door salespersons with no local connections | 16 | | who offer to do
home repair work for substantially less than | 17 | | the market price.
| 18 | | (2) Solicitations for repair work from a company that lists | 19 | | only a
telephone number or a post-office box number to contact, | 20 | | particularly if it is
an
out-of-state company.
| 21 | | (3) Contractors who fail to provide customers references | 22 | | when requested.
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| 1 | | (4) Persons offering to inspect your home for free. Do not | 2 | | admit anyone
into your home unless he or she can present | 3 | | authentic identification
establishing his or her business | 4 | | status. When in doubt, do not hesitate to
call the
worker's | 5 | | employer to verify his or her identity.
| 6 | | (5) Contractors demanding cash payment for a job or who ask | 7 | | you to make a
check payable to a person other than the owner or | 8 | | company name.
| 9 | | (6) Offers from a contractor to drive you to the bank to | 10 | | withdraw funds to
pay for the work.
| 11 | | CONTRACTS
| 12 | | (1) Get all estimates in writing.
| 13 | | (2) Do not be induced into signing a contract by | 14 | | high-pressure sales
tactics.
| 15 | | (3) Never sign a contract with blank spaces or one you do | 16 | | not fully
understand. If you are taking out a loan to finance | 17 | | the work, do not sign the
contract before your lender approves | 18 | | the loan.
| 19 | | (4) Remember, you have 3 business days from the time you | 20 | | sign your
contract
to cancel any contract if the sale is made | 21 | | at your home. The contractor cannot
deprive you of this right | 22 | | by initiating work, selling your contract to a
lender, or any | 23 | | other tactic.
| 24 | | (5) If the contractor does business under a name other than |
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| 1 | | the
contractor's
real name, the business must either be | 2 | | incorporated or registered under the
Assumed Business Name Act. | 3 | | Check with the Secretary of State to see if the
business is
| 4 | | incorporated or with the county clerk to see if the business | 5 | | has registered
under the Assumed Business Name Act.
| 6 | | (6) Homeowners should check with local and county units of | 7 | | government to
determine if permits or inspections are required.
| 8 | | (7) Determine whether the contractor will guarantee his or | 9 | | her work and
products.
| 10 | | (8) Determine whether the contractor has the proper | 11 | | insurance.
| 12 | | (9) Do not sign a certificate of completion or make final | 13 | | payment until
the
work is done to your satisfaction.
| 14 | | (10) Remember, homeowners should know who provides | 15 | | supplies and labor for
any work performed on your home. | 16 | | Suppliers and subcontractors have a right to
file a lien | 17 | | against your property if the general contractor fails to pay | 18 | | them.
To protect your property, request lien waivers from the | 19 | | general contractor.
| 20 | | BASIC TERMS TO BE INCLUDED IN A CONTRACT
| 21 | | (1) Contractor's full name, address, and telephone number. | 22 | | Illinois law
requires that
persons selling home repair and | 23 | | improvement services provide their customers
with notice of any | 24 | | change to their business name or address that comes about
prior |
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| 1 | | to the agreed dates for beginning or completing the work.
| 2 | | (2) A description of the work to be performed.
| 3 | | (3) Starting and estimated completion dates.
| 4 | | (4) Total cost of work to be performed.
| 5 | | (5) Schedule and method of payment, including down payment, | 6 | | subsequent
payments, and final payment.
| 7 | | (6) A provision stating the grounds for termination of the | 8 | | contract by
either party. However, the homeowner must pay the | 9 | | contractor for work
completed. If the contractor fails to | 10 | | commence or complete work within the
contracted time period, | 11 | | the homeowner may cancel and may be entitled to a
refund of any | 12 | | down payment
or other payments made towards the work, upon | 13 | | written demand by certified mail.
| 14 | | (7) A provision stating the grounds for termination of the | 15 | | contract if you are notified by your insurer that all or any | 16 | | part of the claim or contract is not a covered loss under the | 17 | | insurance policy, you may cancel the contract by mailing or | 18 | | delivering written notice to (name of contractor) at (address | 19 | | of contractor's place of business) at any time prior to | 20 | | midnight on the fifth business day after you have received such | 21 | | notice from your insurer. If you cancel, any payments made by | 22 | | you under the contract will be returned to you within 10 | 23 | | business days following receipt by the contractor of your | 24 | | cancellation notice. If, however, the contractor has provided | 25 | | any goods or services related to a catastrophe, acknowledged | 26 | | and agreed to by the insured homeowner in writing to be |
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| 1 | | necessary to prevent damage to the premises, the contractor is | 2 | | entitled to the reasonable value of such goods and services. | 3 | | Homeowners should obtain a copy of the signed contract and | 4 | | keep it in a safe
place for reference as needed.
| 5 | | To file a complaint against a roofing contractor, contact | 6 | | the Illinois Department of Financial and Professional | 7 | | Responsibility at 312-814-6910 or file a complaint directly on | 8 | | its website.
| 9 | | IF YOU THINK YOU HAVE BEEN DEFRAUDED OR YOU HAVE QUESTIONS
| 10 | | If you think you have been defrauded by a contractor or | 11 | | have any questions,
please bring
it to the attention of your | 12 | | State's Attorney or the Illinois Attorney General's
Office.
| 13 | | Attorney General Toll-Free Numbers
| 14 | | Carbondale (800) 243-0607
| 15 | | Springfield (800) 243-0618
| 16 | | Chicago (800) 386-5438".
| 17 | | (Source: P.A. 91-230, eff. 1-1-00.)
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