97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1087

 

Introduced 02/04/11, by Rep. Thomas Holbrook

 

SYNOPSIS AS INTRODUCED:
 
815 ILCS 513/20

    Amends the Home Repair and Remodeling Act. Provides that the consumer rights pamphlet that must be provided to customers by a person engaged in the business of home repair and remodeling may be printed on the back of the home repair and remodeling contract (as an alternative to being provided as a separate document). Provides that in either case, the pamphlet must be printed in at least 12 point type and in legible ink. Effective immediately.


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A BILL FOR

 

HB1087LRB097 06420 AEK 46502 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 Section 20 as follows:
 
6    (815 ILCS 513/20)
7    Sec. 20. Consumer rights brochure.
8    (a) For any contract over $1,000, any person engaging in
9the business of home repair and remodeling shall provide to its
10customers a copy of the "Home Repair: Know Your Consumer
11Rights" pamphlet prior to the execution of any home repair and
12remodeling contract. The consumer shall sign and date an
13acknowledgment form entitled "Consumer Rights Acknowledgment
14Form" that states: "I, the homeowner, have received from the
15contractor a copy of the pamphlet entitled 'Home Repair: Know
16Your Consumer Rights.'" The contractor or his or her
17representative shall also sign and date the acknowledgment
18form, which includes the name and address of the home repair
19and remodeling business. The acknowledgment form shall be in
20duplicate and incorporated into the pamphlet. The original
21acknowledgment form shall be retained by the contractor and the
22duplicate copy shall be retained within the pamphlet by the
23consumer.

 

 

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1    (b) For any contract for $1,000 or under, any person
2engaging in the business of home repair and remodeling shall
3provide to its customers a copy of the "Home Repair: Know Your
4Consumer Rights" pamphlet. No written acknowledgment of
5receipt of the pamphlet is required for a contract of $1,000 or
6under.
7    (c) The pamphlet may must be a separate document, or it may
8be printed on the back of the home repair and remodeling
9contract. In either case, however, the pamphlet must be printed
10in at least 12 point type, and in legible ink. The pamphlet
11shall read as follows:
 
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    Homeowners should obtain a copy of the signed contract and
20keep it in a safe place for reference as needed.
 
21
IF YOU THINK YOU HAVE BEEN DEFRAUDED OR YOU HAVE QUESTIONS
22    If you think you have been defrauded by a contractor or
23have any questions, please bring it to the attention of your
24State's Attorney or the Illinois Attorney General's Office.

 

 

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1Attorney General Toll-Free Numbers
2Carbondale        (800) 243-0607
3Springfield        (800) 243-0618
4Chicago            (800) 386-5438".
5(Source: P.A. 91-230, eff. 1-1-00.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.