Bill Text: IL HB2643 | 2019-2020 | 101st General Assembly | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Home Repair and Remodeling Act. Provides that a consumer age 65 and older has 15, rather than 3, business days within which to cancel a contract if the sale is made at the consumer's home. Effective immediately.
Spectrum: Strong Partisan Bill (Democrat 31-2)
Status: (Passed) 2019-08-09 - Public Act . . . . . . . . . 101-0264 [HB2643 Detail]
Download: Illinois-2019-HB2643-Engrossed.html
Bill Title: Amends the Home Repair and Remodeling Act. Provides that a consumer age 65 and older has 15, rather than 3, business days within which to cancel a contract if the sale is made at the consumer's home. Effective immediately.
Spectrum: Strong Partisan Bill (Democrat 31-2)
Status: (Passed) 2019-08-09 - Public Act . . . . . . . . . 101-0264 [HB2643 Detail]
Download: Illinois-2019-HB2643-Engrossed.html
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1 | AN ACT concerning business.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Home Repair and Remodeling Act is amended by | ||||||
5 | changing Section 20 and adding Section 22 as follows:
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6 | (815 ILCS 513/20)
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7 | Sec. 20. Consumer rights brochure.
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8 | (a) For any contract over $1,000, any
person engaging in | ||||||
9 | the business
of home repair and remodeling shall provide to its | ||||||
10 | customers a copy of the
"Home Repair: Know Your Consumer | ||||||
11 | Rights" pamphlet prior to the execution of any
home repair and | ||||||
12 | remodeling contract. The consumer shall sign and date an
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13 | acknowledgment form entitled "Consumer Rights Acknowledgment | ||||||
14 | Form" that states:
"I, the homeowner, have received from the | ||||||
15 | contractor a copy of the pamphlet
entitled 'Home Repair: Know | ||||||
16 | Your Consumer Rights.'" The contractor or his or
her | ||||||
17 | representative shall also sign and date the acknowledgment | ||||||
18 | form, which
includes the name and address of the home repair | ||||||
19 | and remodeling business. The
acknowledgment form shall be in | ||||||
20 | duplicate and incorporated into the pamphlet.
The original | ||||||
21 | acknowledgment form shall be retained by the contractor and the
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22 | duplicate copy shall be retained within the pamphlet by the | ||||||
23 | consumer.
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1 | (b) For any contract for $1,000 or under, any person | ||||||
2 | engaging in the
business
of home repair and remodeling shall | ||||||
3 | provide to its customers a copy of the
"Home Repair: Know Your | ||||||
4 | Consumer Rights" pamphlet. No written acknowledgment
of | ||||||
5 | receipt of the pamphlet is required for a contract of $1,000 or | ||||||
6 | under.
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7 | (c) The
pamphlet must be a separate
document, in at least | ||||||
8 | 12 point type, and in legible ink. The pamphlet shall
read as | ||||||
9 | follows:
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10 | "HOME REPAIR: KNOW YOUR CONSUMER RIGHTS
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11 | As you plan for your home repair/improvement project, it is | ||||||
12 | important to
ask the right questions in order to protect your | ||||||
13 | investment. The tips in this
fact sheet should allow you to | ||||||
14 | protect yourself and minimize the possibility
that a | ||||||
15 | misunderstanding may occur.
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16 | AVOIDING HOME REPAIR FRAUD
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17 | Please use extreme caution when confronted with the following | ||||||
18 | warning signs of
a potential scam:
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19 | (1) Door-to-door salespersons with no local connections | ||||||
20 | who offer to do
home repair work for substantially less than | ||||||
21 | the market price.
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22 | (2) Solicitations for repair work from a company that lists |
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1 | only a
telephone number or a post-office box number to contact, | ||||||
2 | particularly if it is
an
out-of-state company.
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3 | (3) Contractors who fail to provide customers references | ||||||
4 | when requested.
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5 | (4) Persons offering to inspect your home for free. Do not | ||||||
6 | admit anyone
into your home unless he or she can present | ||||||
7 | authentic identification
establishing his or her business | ||||||
8 | status. When in doubt, do not hesitate to
call the
worker's | ||||||
9 | employer to verify his or her identity.
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10 | (5) Contractors demanding cash payment for a job or who ask | ||||||
11 | you to make a
check payable to a person other than the owner or | ||||||
12 | company name.
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13 | (6) Offers from a contractor to drive you to the bank to | ||||||
14 | withdraw funds to
pay for the work.
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15 | CONTRACTS
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16 | (1) Get all estimates in writing.
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17 | (2) Do not be induced into signing a contract by | ||||||
18 | high-pressure sales
tactics.
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19 | (3) Never sign a contract with blank spaces or one you do | ||||||
20 | not fully
understand. If you are taking out a loan to finance | ||||||
21 | the work, do not sign the
contract before your lender approves | ||||||
22 | the loan.
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23 | (4) Remember, you have 3 business days (or 15 full business | ||||||
24 | days if you are age 65 or older) from the time you sign your
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1 | contract
to cancel any contract if the sale is made at your | ||||||
2 | home. The contractor cannot
deprive you of this right by | ||||||
3 | initiating work, selling your contract to a
lender, or any | ||||||
4 | other tactic.
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5 | (5) If the contractor does business under a name other than | ||||||
6 | the
contractor's
real name, the business must either be | ||||||
7 | incorporated or registered under the
Assumed Business Name Act. | ||||||
8 | Check with the Secretary of State to see if the
business is
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9 | incorporated or with the county clerk to see if the business | ||||||
10 | has registered
under the Assumed Business Name Act.
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11 | (6) Homeowners should check with local and county units of | ||||||
12 | government to
determine if permits or inspections are required.
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13 | (7) Determine whether the contractor will guarantee his or | ||||||
14 | her work and
products.
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15 | (8) Determine whether the contractor has the proper | ||||||
16 | insurance.
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17 | (9) Do not sign a certificate of completion or make final | ||||||
18 | payment until
the
work is done to your satisfaction.
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19 | (10) Before you pay your contractor, understand that the | ||||||
20 | Mechanics Lien Act requires that you shall request and the | ||||||
21 | contractor shall give you a signed and notarized written | ||||||
22 | statement (known as a "Sworn Statement") that lists all the | ||||||
23 | persons or companies your contractor hired to work on your | ||||||
24 | home, their addresses along with the amounts about to be paid, | ||||||
25 | and the total amount owed after the payment to those persons or | ||||||
26 | companies. |
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1 | Suppliers and subcontractors have a right to file a lien | ||||||
2 | against your home if they do not get paid for their labor or | ||||||
3 | materials. To protect yourself against liens, you should demand | ||||||
4 | that your contractor provide you with a Sworn Statement before | ||||||
5 | you pay the contractor. You should also obtain lien waivers | ||||||
6 | from all contractors and subcontractors if appropriate. You | ||||||
7 | should consult with an attorney to learn more about your rights | ||||||
8 | and obligations under the Mechanics Lien Act. | ||||||
9 | Disclaimer: The contents of this paragraph are required to | ||||||
10 | be placed in the pamphlet for consumer guidance and information | ||||||
11 | only. The contents of this paragraph are not substantive | ||||||
12 | enforceable provisions of the Home Repair and Remodeling Act | ||||||
13 | and are not intended to affect the substantive law of the | ||||||
14 | Mechanics Lien Act.
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15 | BASIC TERMS TO BE INCLUDED IN A CONTRACT
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16 | (1) Contractor's full name, address, and telephone number. | ||||||
17 | Illinois law
requires that
persons selling home repair and | ||||||
18 | improvement services provide their customers
with notice of any | ||||||
19 | change to their business name or address that comes about
prior | ||||||
20 | to the agreed dates for beginning or completing the work.
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21 | (2) A description of the work to be performed.
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22 | (3) Starting and estimated completion dates.
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23 | (4) Total cost of work to be performed.
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24 | (5) Schedule and method of payment, including down payment, |
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1 | subsequent
payments, and final payment.
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2 | (6) A provision stating the grounds for termination of the | ||||||
3 | contract by
either party. However, the homeowner must pay the | ||||||
4 | contractor for work
completed. If the contractor fails to | ||||||
5 | commence or complete work within the
contracted time period, | ||||||
6 | the homeowner may cancel and may be entitled to a
refund of any | ||||||
7 | down payment
or other payments made towards the work, upon | ||||||
8 | written demand by certified mail.
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9 | (7) A provision stating the grounds for termination of the | ||||||
10 | contract if you are notified by your insurer that all or any | ||||||
11 | part of the claim or contract is not a covered loss under the | ||||||
12 | insurance policy, you may cancel the contract by mailing or | ||||||
13 | delivering written notice to (name of contractor) at (address | ||||||
14 | of contractor's place of business) at any time prior to the | ||||||
15 | earlier of midnight on the fifth business day after you have | ||||||
16 | received such notice from your insurer or the thirtieth | ||||||
17 | business day after receipt of a properly executed proof of loss | ||||||
18 | by the insurer from the insured. If you cancel, any payments | ||||||
19 | made by you under the contract will be returned to you within | ||||||
20 | 10 business days following receipt by the contractor of your | ||||||
21 | cancellation notice. If, however, the contractor has provided | ||||||
22 | any goods or services related to a catastrophe, acknowledged | ||||||
23 | and agreed to by the insured homeowner in writing to be | ||||||
24 | necessary to prevent damage to the premises, the contractor is | ||||||
25 | entitled to the reasonable value of such goods and services. | ||||||
26 | Homeowners should obtain a copy of the signed contract and |
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1 | keep it in a safe
place for reference as needed.
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2 | To file a complaint against a roofing contractor, contact | ||||||
3 | the Illinois Department of Financial and Professional | ||||||
4 | Regulation at 312-814-6910 or file a complaint directly on its | ||||||
5 | website.
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6 | IF YOU THINK YOU HAVE BEEN DEFRAUDED OR YOU HAVE QUESTIONS
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7 | If you think you have been defrauded by a contractor or | ||||||
8 | have any questions,
please bring
it to the attention of your | ||||||
9 | State's Attorney or the Illinois Attorney General's
Office.
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10 | Attorney General Toll-Free Numbers
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11 | Carbondale (800) 243-0607
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12 | Springfield (800) 243-0618
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13 | Chicago (800) 386-5438".
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14 | (Source: P.A. 100-670, eff. 1-1-19 .)
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15 | (815 ILCS 513/22 new) | ||||||
16 | Sec. 22. Senior citizen; right of cancellation. A person | ||||||
17 | age 65 or older who purchases home repair or remodeling | ||||||
18 | services may cancel any contract with a person engaged in home | ||||||
19 | repair or remodeling by notifying that person within 15 full | ||||||
20 | business days following the day on which the contract was | ||||||
21 | signed if the agreement for the home repair or remodeling was | ||||||
22 | made at the home of the purchaser.
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23 | Section 99. Effective date. This Act takes effect upon | ||||||
24 | becoming law.
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