100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB4268

 

Introduced 1/19/2018, by Rep. André Thapedi

 

SYNOPSIS AS INTRODUCED:
 
815 ILCS 513/10
815 ILCS 513/20

    Amends the Home Repair and Remodeling Act. Provides that "residence" means a single-family home or dwelling or a multiple-family home or dwelling containing 6 or fewer apartments, condominiums, town houses, or dwelling units, used or intended to be used by the consumer as his or her dwelling place (instead of "by occupants as dwelling places"). In the home repair consumer rights pamphlet, replaces notice language concerning lien waivers with the following: "Illinois law requires that, before payment, your contractor give you a sworn statement which lists: (1) all the persons or companies your contractor hired to work on your home and their addresses; and (2) the amounts previously paid, the amounts about to be paid, and the total amount owed after the payment to these persons or companies. The sworn statement should be fully completed, signed, and notarized. When the contractor's sworn statement lists an amount due or to become due to a subcontractor, or when a subcontractor gives you notice of an amount due to the subcontractor, you must retain sufficient funds to pay that subcontractor. Subcontractors give the contractors lien waivers when they are paid. Ask your contractor for copies of these lien waivers. If your contractor tells you he or she needs a payment from you in order to pay subcontractors, you have the right to pay the subcontractors directly.".


LRB100 13196 HEP 30588 b

 

 

A BILL FOR

 

HB4268LRB100 13196 HEP 30588 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 Sections 10 and 20 as follows:
 
6    (815 ILCS 513/10)
7    Sec. 10. Definitions. As used in this Act:
8    "Home repair and remodeling" means the fixing, replacing,
9altering, converting, modernizing, improving, or making of an
10addition to any real property primarily designed or used as a
11residence other than maintenance, service, or repairs under
12$500. "Home repair and remodeling" includes the construction,
13installation, replacement, or improvement of driveways,
14swimming pools, porches, kitchens, bathrooms, basements,
15chimneys, chimney liners, garages, fences, fallout shelters,
16central air conditioning, central heating, boilers, furnaces,
17electrical wiring, sewers, plumbing fixtures, storm doors,
18windows, roofs, awnings, and other improvements to structures
19within the residence or upon the land adjacent to the
20residence. "Home repair and remodeling" does not include the
21sale, installation, cleaning, or repair of carpets; the repair,
22installation, replacement, or connection of any home appliance
23including, but not limited to, disposals, refrigerators,

 

 

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1ranges, garage door openers, televisions or television
2antennas, washing machines, telephones, hot water heaters,
3satellite dishes, or other appliances when the persons
4replacing, installing, repairing, or connecting the home
5appliance are employees or agents of the merchant that sold the
6home appliance or sold new products of the same type; or
7landscaping.
8    "Person" means any individual, partnership, corporation,
9business, trust, or other legal entity.
10    "Residence" means a single-family home or dwelling or a
11multiple-family home or dwelling containing 6 or fewer
12apartments, condominiums, town houses, or dwelling units, used
13or intended to be used by the consumer as his or her dwelling
14place occupants as dwelling places. This Act does not apply to
15original construction of single-family or multi-family
16residences or repairs to dwellings containing more than 6
17apartments or family units.
18(Source: P.A. 91-230, eff. 1-1-00.)
 
19    (815 ILCS 513/20)
20    Sec. 20. Consumer rights brochure.
21    (a) For any contract over $1,000, any person engaging in
22the business of home repair and remodeling shall provide to its
23customers a copy of the "Home Repair: Know Your Consumer
24Rights" pamphlet prior to the execution of any home repair and
25remodeling contract. The consumer shall sign and date an

 

 

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1acknowledgment form entitled "Consumer Rights Acknowledgment
2Form" that states: "I, the homeowner, have received from the
3contractor a copy of the pamphlet entitled 'Home Repair: Know
4Your Consumer Rights.'" The contractor or his or her
5representative shall also sign and date the acknowledgment
6form, which includes the name and address of the home repair
7and remodeling business. The acknowledgment form shall be in
8duplicate and incorporated into the pamphlet. The original
9acknowledgment form shall be retained by the contractor and the
10duplicate copy shall be retained within the pamphlet by the
11consumer.
12    (b) For any contract for $1,000 or under, any person
13engaging in the business of home repair and remodeling shall
14provide to its customers a copy of the "Home Repair: Know Your
15Consumer Rights" pamphlet. No written acknowledgment of
16receipt of the pamphlet is required for a contract of $1,000 or
17under.
18    (c) The pamphlet must be a separate document, in at least
1912 point type, and in legible ink. The pamphlet shall read as
20follows:
 
21
"HOME REPAIR: KNOW YOUR CONSUMER RIGHTS

 
22    As you plan for your home repair/improvement project, it is
23important to ask the right questions in order to protect your
24investment. The tips in this fact sheet should allow you to

 

 

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1protect yourself and minimize the possibility that a
2misunderstanding may occur.
 
3
AVOIDING HOME REPAIR FRAUD

 
4Please use extreme caution when confronted with the following
5warning signs of a potential scam:
6    (1) Door-to-door salespersons with no local connections
7who offer to do home repair work for substantially less than
8the market price.
9    (2) Solicitations for repair work from a company that lists
10only a telephone number or a post-office box number to contact,
11particularly if it is an out-of-state company.
12    (3) Contractors who fail to provide customers references
13when requested.
14    (4) Persons offering to inspect your home for free. Do not
15admit anyone into your home unless he or she can present
16authentic identification establishing his or her business
17status. When in doubt, do not hesitate to call the worker's
18employer to verify his or her identity.
19    (5) Contractors demanding cash payment for a job or who ask
20you to make a check payable to a person other than the owner or
21company name.
22    (6) Offers from a contractor to drive you to the bank to
23withdraw funds to pay for the work.
 

 

 

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1
CONTRACTS

 
2    (1) Get all estimates in writing.
3    (2) Do not be induced into signing a contract by
4high-pressure sales tactics.
5    (3) Never sign a contract with blank spaces or one you do
6not fully understand. If you are taking out a loan to finance
7the work, do not sign the contract before your lender approves
8the loan.
9    (4) Remember, you have 3 business days from the time you
10sign your contract to cancel any contract if the sale is made
11at your home. The contractor cannot deprive you of this right
12by initiating work, selling your contract to a lender, or any
13other tactic.
14    (5) If the contractor does business under a name other than
15the contractor's real name, the business must either be
16incorporated or registered under the Assumed Business Name Act.
17Check with the Secretary of State to see if the business is
18incorporated or with the county clerk to see if the business
19has registered under the Assumed Business Name Act.
20    (6) Homeowners should check with local and county units of
21government to determine if permits or inspections are required.
22    (7) Determine whether the contractor will guarantee his or
23her work and products.
24    (8) Determine whether the contractor has the proper
25insurance.

 

 

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1    (9) Do not sign a certificate of completion or make final
2payment until the work is done to your satisfaction.
3    (10) Illinois law requires that, before payment, your
4contractor give you a sworn statement which lists: (1) all the
5persons or companies your contractor hired to work on your home
6and their addresses; and (2) the amounts previously paid, the
7amounts about to be paid, and the total amount owed after the
8payment to these persons or companies. The sworn statement
9should be fully completed, signed, and notarized. When the
10contractor's sworn statement lists an amount due or to become
11due to a subcontractor, or when a subcontractor gives you
12notice of an amount due to the subcontractor, you must retain
13sufficient funds to pay that subcontractor. Subcontractors
14give the contractors lien waivers when they are paid. Ask your
15contractor for copies of these lien waivers. If your contractor
16tells you he or she needs a payment from you in order to pay
17subcontractors, you have the right to pay the subcontractors
18directly. Remember, homeowners should know who provides
19supplies and labor for any work performed on your home.
20Suppliers and subcontractors have a right to file a lien
21against your property if the general contractor fails to pay
22them. To protect your property, request lien waivers from the
23general contractor.
 
24
BASIC TERMS TO BE INCLUDED IN A CONTRACT

 

 

 

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1    (1) Contractor's full name, address, and telephone number.
2Illinois law requires that persons selling home repair and
3improvement services provide their customers with notice of any
4change to their business name or address that comes about prior
5to the agreed dates for beginning or completing the work.
6    (2) A description of the work to be performed.
7    (3) Starting and estimated completion dates.
8    (4) Total cost of work to be performed.
9    (5) Schedule and method of payment, including down payment,
10subsequent payments, and final payment.
11    (6) A provision stating the grounds for termination of the
12contract by either party. However, the homeowner must pay the
13contractor for work completed. If the contractor fails to
14commence or complete work within the contracted time period,
15the homeowner may cancel and may be entitled to a refund of any
16down payment or other payments made towards the work, upon
17written demand by certified mail.
18    (7) A provision stating the grounds for termination of the
19contract if you are notified by your insurer that all or any
20part of the claim or contract is not a covered loss under the
21insurance policy, you may cancel the contract by mailing or
22delivering written notice to (name of contractor) at (address
23of contractor's place of business) at any time prior to the
24earlier of midnight on the fifth business day after you have
25received such notice from your insurer or the thirtieth
26business day after receipt of a properly executed proof of loss

 

 

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1by the insurer from the insured. If you cancel, any payments
2made by you under the contract will be returned to you within
310 business days following receipt by the contractor of your
4cancellation notice. If, however, the contractor has provided
5any goods or services related to a catastrophe, acknowledged
6and agreed to by the insured homeowner in writing to be
7necessary to prevent damage to the premises, the contractor is
8entitled to the reasonable value of such goods and services.
9    Homeowners should obtain a copy of the signed contract and
10keep it in a safe place for reference as needed.
11    To file a complaint against a roofing contractor, contact
12the Illinois Department of Financial and Professional
13Regulation at 312-814-6910 or file a complaint directly on its
14website.
 
15
IF YOU THINK YOU HAVE BEEN DEFRAUDED OR YOU HAVE QUESTIONS
16    If you think you have been defrauded by a contractor or
17have any questions, please bring it to the attention of your
18State's Attorney or the Illinois Attorney General's Office.
19Attorney General Toll-Free Numbers
20Carbondale         (800) 243-0607
21Springfield        (800) 243-0618
22Chicago            (800) 386-5438".
23(Source: P.A. 97-235, eff. 1-1-12.)