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Public Act 097-0235


 

Public Act 0235 97TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 097-0235
 
HB3034 EnrolledLRB097 09449 AEK 49584 b

    AN ACT concerning business.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Roofing Industry Licensing Act is
amended by changing Section 5 and by adding Section 5.1 as
follows:
 
    (225 ILCS 335/5)  (from Ch. 111, par. 7505)
    (Section scheduled to be repealed on January 1, 2016)
    Sec. 5. Display of license number; advertising.
    (a) Each State licensed roofing contractor shall affix the
roofing contractor license number and the licensee's name, as
it appears on the license, to all of his or her contracts and
bids. In addition, the official issuing building permits shall
affix the roofing contractor license number to each application
for a building permit and on each building permit issued and
recorded.
    (a-5) A person who knowingly, in the course of applying for
a building permit with a unit of local government, provides the
roofing license number of a roofing contractor whom he or she
does not intend to have perform the work on the roofing portion
of the project commits identity theft under paragraph (8) of
subsection (a) of Section 16G-15 of the Criminal Code of 1961.
    (b) (Blank). In addition, every roofing contractor shall
affix the roofing contractor license number and the licensee's
name, as it appears on the license, on all commercial vehicles
used as part of his or her business as a roofing contractor.
    (c) Every holder of a license shall display it in a
conspicuous place in his or her principal office, place of
business, or place of employment.
    (d) No person licensed under this Act may advertise
services regulated by this Act unless that person includes in
the advertisement the roofing contractor license number and the
licensee's name, as it appears on the license. Nothing
contained in this subsection requires the publisher of
advertising for roofing contractor services to investigate or
verify the accuracy of the license number provided by the
licensee.
    (e) A person who advertises services regulated by this Act
who knowingly (i) fails to display the license number and the
licensee's name, as it appears on the license, in any manner
required by this Section, (ii) fails to provide a publisher
with the correct license number as required by subsection (d),
or (iii) provides a publisher with a false license number or a
license number of another person, or a person who knowingly
allows his or her license number to be displayed or used by
another person to circumvent any provisions of this Section, is
guilty of a Class A misdemeanor with a fine of $1,000, and, in
addition, is subject to the administrative enforcement
provisions of this Act. Each day that an advertisement runs or
each day that a person knowingly allows his or her license to
be displayed or used in violation of this Section constitutes a
separate offense.
(Source: P.A. 96-624, eff. 1-1-10; 96-1324, eff. 7-27-10.)
 
    (225 ILCS 335/5.1 new)
    Sec. 5.1. Commercial vehicles. Any entity offering
services regulated by the Roofing Industry Licensing Act shall
affix the roofing contractor license number and the licensee's
name, as it appears on the license, on all commercial vehicles
used in offering such services. An entity in violation of this
Section shall be subject to a $250 civil penalty. This Section
may be enforced by local code enforcement officials employed by
units of local government as it relates to roofing work being
performed within the boundaries of their jurisdiction. For
purposes of this Section, "code enforcement official" means an
officer or other designated authority charged with the
administration, interpretation, and enforcement of codes on
behalf of a municipality or county. If the alleged violation
has been corrected prior to or on the date of the hearing
scheduled to adjudicate the alleged violation, it shall be
dismissed.
 
    Section 10. The Home Repair and Remodeling Act is amended
by adding Section 18 and by changing Section 20 as follows:
 
    (815 ILCS 513/18 new)
    Sec. 18. Repairs following damaging weather.
    (a) As used in this Section, "catastrophe" means a natural
occurrence, including but not limited to flood, drought,
earthquake, tornado, windstorm, or hailstorm, which damages or
destroys more than one residence.
    (b) A contractor offering home repair or remodeling
services shall not advertise or promise to pay or rebate all or
any portion of any insurance deductible as an inducement to the
sale of goods or services. As used in this Section, a promise
to pay or rebate includes granting any allowance or offering
any discount against the fees to be charged or paying the
insured or any person directly or indirectly associated with
the property any form of compensation.
    (c) A contractor offering home repair or remodeling
services shall not accept money or any form of compensation in
exchange for allowing an out of area contractor to use its
business name or license.
    (d) A contractor offering home repair or remodeling
services shall include its Illinois State roofing contractor
license name and number as it appears on its Illinois State
roofing license on all contracts, bids, and advertisements
involving roofing work as required by the Illinois Roofing
Industry Licensing Act.
    (e) A person who has entered into a written contract with a
contractor offering home repair or remodeling services to
provide goods or services to be paid from the proceeds of a
property and casualty insurance policy may cancel the contract
prior to midnight on the earlier of the fifth business day
after the insured has received written notice from the insurer
that all or any part of the claim or contract is not a covered
loss under the insurance policy or the thirtieth business day
after receipt of a properly executed proof of loss by the
insurer from the insured. Cancellation is evidenced by the
insured giving written notice of cancellation to the contractor
offering home repair or remodeling services at the address
stated in the contract. Notice of cancellation, if given by
mail, is effective upon deposit into the United States mail,
postage prepaid and properly addressed to the contractor.
Notice of cancellation may be given by delivering or mailing a
signed and dated copy of the written notice of cancellation to
the contractor's business address as stated in the contract.
Notice of cancellation shall include a copy of the written
notice from the insurer to the effect that all or part of the
claim is not a covered loss under the insurance policy. Notice
of cancellation need not take a particular form and is
sufficient if it indicates, by any form of written expression,
the intention of the insured not to be bound by the contract.
    (f) Any contract referred to in subsection (e), must
contain a statement in at least 10 point boldface, in
substantially the following form:
        "You may cancel this contract at any time before
        midnight on the earlier of the fifth business day after
        you have received written notification from your
        insurer that all or any part of the claim or contract
        is not a covered loss under the insurance policy or the
        thirtieth business day after your insurer has received
        properly executed proof(s) of loss from you. See
        attached notice of cancellation form for an
        explanation of this right."
    (g) Upon executing a contract referred to in subsection
(e), furnish each insured a fully completed form in duplicate,
captioned "NOTICE OF CANCELLATION", which shall be attached to
the contract but easily detachable, and which shall contain
boldface type of a minimum size of 10 points the following
statement with the appropriate fields completed by the
contractor:
        
"NOTICE OF CANCELLATION
            If you are notified by your insurer that all or any
        part of the claim or contract is not a covered loss
        under the insurance policy, you may cancel the contract
        by mailing or delivering a signed and dated copy of
        this cancellation notice or any other written notice to
        (name of contractor) at (address of contractor's place
        of business) at any time prior to midnight on the
        earlier of the fifth business day after you have
        received such notice from your insurer or the thirtieth
        business day after your insurer has received properly
        executed proof(s) of loss from you. If you cancel, any
        payments made by you under the contract, other than
        payments for goods or services related to a catastrophe
        which you agreed in writing to be necessary to prevent
        damage to your property, will be returned to you within
        10 business days following receipt by the contractor of
        your cancellation notice.
            I HEREBY CANCEL THIS TRANSACTION
            ................................
            (date)
            ................................
            (insured's signature)".
    (h) Within 10 days after a contract referred to in
subsection (e) has been cancelled, the contractor offering home
repair or remodeling services shall tender to the insured any
payments, partial payments, or deposits made by the insured and
any note or other evidence of indebtedness. If, however, the
contractor has provided any goods or services related to a
catastrophe, acknowledged and agreed to by the insured in
writing to be necessary to prevent damage to the premises, the
contractor is entitled to the reasonable value of such goods
and services. Any provision in a contract referred to in
subsection (e) that requires the payment of any fee for
anything except goods or services related to a catastrophe
shall not be enforceable against any insured who has cancelled
a contract pursuant to this Section.
    (i) A contractor offering home repair or remodeling
services shall not represent, or offer or advertise to
represent, on behalf of a homeowner on any insurance claim in
connection with the repair or replacement of roof systems, or
the performance of any other interior or exterior repair,
replacement, construction or reconstruction work; or otherwise
violate the Public Adjusters Law (Public Act 96-1332). A Public
Adjuster means any person who acts on behalf of the insured in
preparing and adjusting a claim for loss or damage covered by
an insurance contract. A contractor offering home repair or
remodeling services shall not call in or file a claim to an
insurance carrier on the insured's behalf. A contractor
offering home repair or remodeling services shall not climb on
a roof or inspect for exterior damage without the insured's
express permission. Nothing in this subsection shall be
construed to prohibit a residential contractor from: (1)
providing an insured an estimate for repair, replacement,
construction, or reconstruction of the insured's property and
any such estimate may be submitted to the insured's insurance
company; (2) conferring with an insurance company's
representative about damage to an insured's property; or (3)
discussing repair or replacement options with an insurance
company's representative or the insured about options for the
repair or replacement of the damage.
 
    (815 ILCS 513/20)
    Sec. 20. Consumer rights brochure.
    (a) For any contract over $1,000, any person engaging in
the business of home repair and remodeling shall provide to its
customers a copy of the "Home Repair: Know Your Consumer
Rights" pamphlet prior to the execution of any home repair and
remodeling contract. The consumer shall sign and date an
acknowledgment form entitled "Consumer Rights Acknowledgment
Form" that states: "I, the homeowner, have received from the
contractor a copy of the pamphlet entitled 'Home Repair: Know
Your Consumer Rights.'" The contractor or his or her
representative shall also sign and date the acknowledgment
form, which includes the name and address of the home repair
and remodeling business. The acknowledgment form shall be in
duplicate and incorporated into the pamphlet. The original
acknowledgment form shall be retained by the contractor and the
duplicate copy shall be retained within the pamphlet by the
consumer.
    (b) For any contract for $1,000 or under, any person
engaging in the business of home repair and remodeling shall
provide to its customers a copy of the "Home Repair: Know Your
Consumer Rights" pamphlet. No written acknowledgment of
receipt of the pamphlet is required for a contract of $1,000 or
under.
    (c) The pamphlet must be a separate document, in at least
12 point type, and in legible ink. The pamphlet shall read as
follows:
 
"HOME REPAIR: KNOW YOUR CONSUMER RIGHTS

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

 
Please use extreme caution when confronted with the following
warning signs of a potential scam:
    (1) Door-to-door salespersons with no local connections
who offer to do home repair work for substantially less than
the market price.
    (2) Solicitations for repair work from a company that lists
only a telephone number or a post-office box number to contact,
particularly if it is an out-of-state company.
    (3) Contractors who fail to provide customers references
when requested.
    (4) Persons offering to inspect your home for free. Do not
admit anyone into your home unless he or she can present
authentic identification establishing his or her business
status. When in doubt, do not hesitate to call the worker's
employer to verify his or her identity.
    (5) Contractors demanding cash payment for a job or who ask
you to make a check payable to a person other than the owner or
company name.
    (6) Offers from a contractor to drive you to the bank to
withdraw funds to pay for the work.
 
CONTRACTS

 
    (1) Get all estimates in writing.
    (2) Do not be induced into signing a contract by
high-pressure sales tactics.
    (3) Never sign a contract with blank spaces or one you do
not fully understand. If you are taking out a loan to finance
the work, do not sign the contract before your lender approves
the loan.
    (4) Remember, you have 3 business days from the time you
sign your contract to cancel any contract if the sale is made
at your home. The contractor cannot deprive you of this right
by initiating work, selling your contract to a lender, or any
other tactic.
    (5) If the contractor does business under a name other than
the contractor's real name, the business must either be
incorporated or registered under the Assumed Business Name Act.
Check with the Secretary of State to see if the business is
incorporated or with the county clerk to see if the business
has registered under the Assumed Business Name Act.
    (6) Homeowners should check with local and county units of
government to determine if permits or inspections are required.
    (7) Determine whether the contractor will guarantee his or
her work and products.
    (8) Determine whether the contractor has the proper
insurance.
    (9) Do not sign a certificate of completion or make final
payment until the work is done to your satisfaction.
    (10) Remember, homeowners should know who provides
supplies and labor for any work performed on your home.
Suppliers and subcontractors have a right to file a lien
against your property if the general contractor fails to pay
them. To protect your property, request lien waivers from the
general contractor.
 
BASIC TERMS TO BE INCLUDED IN A CONTRACT

 
    (1) Contractor's full name, address, and telephone number.
Illinois law requires that persons selling home repair and
improvement services provide their customers with notice of any
change to their business name or address that comes about prior
to the agreed dates for beginning or completing the work.
    (2) A description of the work to be performed.
    (3) Starting and estimated completion dates.
    (4) Total cost of work to be performed.
    (5) Schedule and method of payment, including down payment,
subsequent payments, and final payment.
    (6) A provision stating the grounds for termination of the
contract by either party. However, the homeowner must pay the
contractor for work completed. If the contractor fails to
commence or complete work within the contracted time period,
the homeowner may cancel and may be entitled to a refund of any
down payment or other payments made towards the work, upon
written demand by certified mail.
    (7) A provision stating the grounds for termination of the
contract if you are notified by your insurer that all or any
part of the claim or contract is not a covered loss under the
insurance policy, you may cancel the contract by mailing or
delivering written notice to (name of contractor) at (address
of contractor's place of business) at any time prior to the
earlier of midnight on the fifth business day after you have
received such notice from your insurer or the thirtieth
business day after receipt of a properly executed proof of loss
by the insurer from the insured. If you cancel, any payments
made by you under the contract will be returned to you within
10 business days following receipt by the contractor of your
cancellation notice. If, however, the contractor has provided
any goods or services related to a catastrophe, acknowledged
and agreed to by the insured homeowner in writing to be
necessary to prevent damage to the premises, the contractor is
entitled to the reasonable value of such goods and services.
    Homeowners should obtain a copy of the signed contract and
keep it in a safe place for reference as needed.
    To file a complaint against a roofing contractor, contact
the Illinois Department of Financial and Professional
Regulation at 312-814-6910 or file a complaint directly on its
website.
 
IF YOU THINK YOU HAVE BEEN DEFRAUDED OR YOU HAVE QUESTIONS
    If you think you have been defrauded by a contractor or
have any questions, please bring it to the attention of your
State's Attorney or the Illinois Attorney General's Office.
Attorney General Toll-Free Numbers
Carbondale        (800) 243-0607
Springfield        (800) 243-0618
Chicago            (800) 386-5438".
(Source: P.A. 91-230, eff. 1-1-00.)

Effective Date: 1/1/2012