HB4275 EnrolledLRB100 15336 KTG 32147 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 Physical Fitness Services Act is amended by
5changing Section 8 as follows:
 
6    (815 ILCS 645/8)  (from Ch. 29, par. 58)
7    Sec. 8. Prohibited contract provisions.
8    (a) (Blank). No contract for basic physical fitness
9services shall require payment of a total amount in excess of
10$2500 per year, and every such contract must so provide in
11writing; except that this limit shall not apply to any contract
12for: (1) family or couple memberships, or (2) group
13memberships, where the purchaser is a corporation or other
14business entity or any social, fraternal or charitable
15organization not created for the purpose of encouraging this
16contractual arrangement.
17    (b) (Blank). No contract for family or couple memberships
18for basic physical fitness services shall require payment in
19excess of $2,500 per year per person covered under the
20membership.
21    (c) No contract for physical fitness services shall require
22payments or financing over a period in excess of 3 years from
23the date the contract is entered into, nor shall the term of

 

 

HB4275 Enrolled- 2 -LRB100 15336 KTG 32147 b

1any such contract be measured by the life of the customer. The
2initial term of services to be rendered under the contract may
3not extend over a period of more than one year 2 years from the
4date the parties enter into the contract; provided that the
5customer may be given an option to renew the contract for
6consecutive periods of not more than one year each for a
7reasonable consideration not less than 10% of the cash price of
8the original membership.
9    (d) No contract for physical fitness services shall require
10or entail the execution of any note by the customer which, when
11separately negotiated, will cut off as to third parties any
12right of action or defense which the customer may have against
13the physical fitness center. No right of action or defense
14arising out of a contract for physical fitness services which
15the customer has against the center shall be cut off by
16assignment of the contract whether or not the assignee acquires
17the contract in good faith and for value. Such an assignee is
18not a holder in due course.
19(Source: P.A. 94-663, eff. 1-1-06; 94-687, eff. 11-3-05.)