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1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Regulatory Sunset Act is amended by
5changing Section 4.37 and by adding Section 4.42 as follows:
 
6    (5 ILCS 80/4.37)
7    Sec. 4.37. Acts and Articles repealed on January 1, 2027.
8The following are repealed on January 1, 2027:
9    The Clinical Psychologist Licensing Act.
10    The Illinois Optometric Practice Act of 1987.
11    Articles II, III, IV, V, VI, VIIA, VIIB, VIIC, XVII, XXXI,
12and XXXI 1/4 of the Illinois Insurance Code.
13    The Boiler and Pressure Vessel Repairer Regulation Act.
14    The Marriage and Family Therapy Licensing Act.
15    The Boxing and Full-contact Martial Arts Act.
16    The Cemetery Oversight Act.
17    The Community Association Manager Licensing and
18Disciplinary Act.
19    The Detection of Deception Examiners Act.
20    The Home Inspector License Act.
21    The Massage Licensing Act.
22    The Medical Practice Act of 1987.
23    The Petroleum Equipment Contractors Licensing Act.

 

 

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1    The Radiation Protection Act of 1990.
2    The Real Estate Appraiser Licensing Act of 2002.
3    The Registered Interior Designers Act.
4    The Landscape Architecture Registration Act.
5    The Water Well and Pump Installation Contractor's License
6Act.
7    The Collateral Recovery Act.
8    The Licensed Certified Professional Midwife Practice Act.
9(Source: P.A. 102-20, eff. 6-25-21; 102-284, eff. 8-6-21;
10102-437, eff. 8-20-21; 102-656, eff. 8-27-21; 102-683, eff.
1110-1-22; 102-813, eff. 5-13-22.)
 
12    (5 ILCS 80/4.42 new)
13    Sec. 4.42. Acts repealed on January 1, 2032. The following
14Acts are repealed on January 1, 2032:
15    The Collateral Recovery Act.
 
16    Section 10. The Collateral Recovery Act is amended by
17changing Sections 5, 10, and 110 as follows:
 
18    (225 ILCS 422/5)
19    (Section scheduled to be repealed on January 1, 2027)
20    Sec. 5. Findings; purpose.
21    (a) The General Assembly finds: (i) due to advancements in
22technology, personal information associated with consumers is
23increasingly collected and stored on motor vehicles that

 

 

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1function as collateral in secured loans; (ii) the loss or
2breach of such personal information can cause consumers
3financial and personal harm and loss, including, but not
4limited to, harm and loss associated with identity theft and
5loss of privacy; (iii) when motor vehicles are repossessed, it
6is critical that consumers be protected from such harm and
7loss; and (iv) that collateral recovery practices affect
8public health, safety, and welfare. and
9    (b) The General Assembly declares that the purpose of this
10Act is to: (i) regulate individuals and entities engaged in
11the business of collateral recovery for the protection of the
12public; and (ii) ensure that repossession agencies protect
13motor vehicle collateral consumers from potential harm and
14loss associated with personal information that is collected
15and stored on motor vehicles.
16(Source: P.A. 97-576, eff. 7-1-12.)
 
17    (225 ILCS 422/10)
18    (Section scheduled to be repealed on January 1, 2027)
19    Sec. 10. Definitions. In this Act:
20    "Assignment" means a written authorization by a legal
21owner, lien holder, lessor, lessee, or licensed repossession
22agency authorized by a legal owner, lien holder, lessor or
23lessee to locate or repossess, involuntarily or voluntarily,
24any collateral, including, but not limited to, collateral
25registered under the Illinois Vehicle Code that is subject to

 

 

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1a security agreement that contains a repossession clause or is
2the subject of a rental or lease agreement.
3    "Assignment" also means a written authorization by an
4employer to recover any collateral entrusted to an employee or
5former employee if the possessor is wrongfully in the
6possession of the collateral. A photocopy, facsimile copy, or
7electronic copy of an assignment shall have the same force and
8effect as an original written assignment.
9    "Automobile rental company" means a person or entity whose
10primary business is renting motor vehicles to the public for
1130 days or less.
12    "Branch office" means each additional office and secured
13storage facility location of a repossession agency (i) located
14in and conducting business within the State of Illinois and
15(ii) operating under the same name as the repossession agency
16where business is actively conducted or is engaged in the
17business authorized by the licensure. Each branch office must
18be individually licensed.
19    "Collateral" means any vehicle, boat, recreational
20vehicle, motor home, motorcycle, or other property that is
21subject to a security, lease, or rental agreement.
22    "Commission" means the Illinois Commerce Commission.
23    "Debtor" means any person or entity obligated under a
24lease, rental, or security agreement.
25    "Financial institution" means a bank, a licensee under the
26Consumer Installment Loan Act, savings bank, savings and loan

 

 

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1association, or credit union organized and operating under the
2laws of this or any other state or of the United States, and
3any subsidiary or affiliate thereof.
4    "Legal owner" means a person holding (i) a security
5interest in any collateral that is subject to a security
6agreement, (ii) a lien against any collateral, or (iii) an
7interest in any collateral that is subject to a lease or rental
8agreement.
9    "Licensure" means the approval of the required criteria
10that has been submitted for review in accordance with the
11provisions of this Act.
12    "Licensed recovery manager" means a person who possesses a
13valid license in accordance with the provisions of this Act
14and is in control or management of an Illinois repossession
15agency.
16    "Personal effects" means any property contained within or
17on repossessed collateral, or property that is not permanently
18affixed to the collateral, that is not the property of the
19legal owner.
20    "Personal information" means information that is
21associated with an owner, driver, or passenger of the
22collateral and that is collected and stored by electronic
23means or systems in or by the collateral during the course of
24its use, including, but not limited to: (i) biometric
25information, as defined by the Biometric Information Privacy
26Act, contacts, addresses, telephone numbers, garage door

 

 

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1codes, map data, and digital subscriptions; (ii) information
2that is deemed "sensitive personal information" by the Federal
3Trade Commission, "personally identifiable information" under
4federal law or the Personal Information Protection Act, or
5"individually identifiable health information" under the
6federal Health Insurance Portability and Accountability Act;
7and (iii) information that a licensed repossession agency
8reasonably believes would be deemed confidential or private by
9the person who is associated with the information.
10    "Recovery permit" means a permit issued by the Commission
11to a repossession agency employee who has met all the
12requirements under this Act.
13    "Recovery ticket" means a serialized record obtained from
14the Commission for any repossessed vehicle or collateral
15evidencing that any person, business, financial institution,
16automotive dealership, or repossession agency who shows a
17recovery ticket has paid the recovery ticket fee to the
18Commission.
19    "Remote storage location" means a secured storage facility
20of a licensed repossession agency designated for the storage
21of collateral that is a secure building or has a perimeter that
22is secured with a fencing construction that makes the area not
23accessible to the public. A remote storage location shall not
24transact business with the public and shall provide evidence
25of applicable insurance to the Commission that specifies the
26licensed repossession agency as the primary policy holder. A

 

 

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1remote storage location shall be located in a commercially
2zoned area physically located in Illinois.
3    "Repossession agency" means any person or entity
4conducting business within the State of Illinois, that, for
5any type of consideration, engages in the business of, accepts
6employment to furnish, or agrees to provide or provides
7property locating services, property recovery, recovered
8property transportation, recovered property storage, or all
9services relevant to any of the following:
10        (1) The location, disposition, or recovery of property
11    as authorized by the self-help provisions of the Uniform
12    Commercial Code.
13        (2) The location, disposition, or recovery of lost or
14    stolen property.
15        (3) Securing evidence concerning repossession and
16    recovery to be used before any court, board, office, or
17    investigating committee.
18        (4) Inventory of property contained in or on the
19    collateral or recovered property.
20        (5) The possession of collateral.
21        (6) The prevention of the misappropriation or
22    concealment of chattel, vehicles, goods, objects,
23    documents, or papers.
24    "Repossession agency" does not include any of the
25following:
26        (1) An attorney at law who is performing his or her

 

 

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1    duties as an attorney at law.
2        (2) The legal owner of collateral that is subject to a
3    security agreement.
4        (3) An officer or employee of the United States of
5    America or of this State or a political subdivision of
6    this State while the officer or employee is engaged in the
7    performance of his or her official duties.
8        (4) A qualified license or recovery permit holder when
9    performing services for, or on behalf of, a licensed
10    repossession agency.
11        (5) A collection agency licensed under the Collection
12    Agency Act when its activities are limited to assisting an
13    owner in the recovery of property that is not collateral,
14    as defined in this Act.
15    "Repossession agency employee" means any person or
16self-employed independent contractor who is hired by a
17repossession agency.
18    "Salvage auction" means a person or entity whose primary
19business is the sale of motor vehicles for which insurance
20companies have made payment of damages on total loss claims.
21    "Secured storage facility" means an area located on the
22same premises as a repossession agency office or branch office
23that is designated for the storage of collateral and is a
24secure building or has a perimeter that is secured with a
25fencing construction that makes the area not accessible to the
26public. Each repossession agency office or branch office must

 

 

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1maintain a secured storage facility.
2    "Security agreement" means an obligation, pledge,
3mortgage, chattel mortgage, lease agreement, rental agreement,
4deposit, or lien, given by a debtor as security for payment or
5performance of his or her debt by furnishing the creditor with
6a recourse to be used in case of failure in the principal
7obligation. "Security agreement" includes a bailment where an
8employer-employee relationship exists or existed between the
9bailor and the bailee.
10(Source: P.A. 97-576, eff. 7-1-12; 97-708, eff. 7-1-12.)
 
11    (225 ILCS 422/110)
12    (Section scheduled to be repealed on January 1, 2027)
13    Sec. 110. Repossession of vehicles.
14    (a) With regard to collateral subject to a security
15agreement, repossession occurs when the licensed repossession
16agency employee gains entry into the collateral, the
17collateral becomes connected to a tow vehicle, or the licensed
18repossession agency employee has physical control, custody, or
19possession of the collateral.
20    (b) The licensed repossession agency shall confirm with
21the legal owner of a recovered vehicle whether the legal owner
22holds a security interest in the personal effects or other
23property contained in or on the recovered vehicle.
24    (c) If personal effects or other property not covered by a
25security agreement are contained in or on a recovered vehicle

 

 

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1at the time it is recovered, then the personal effects and
2other property not covered by a security agreement must be
3completely and accurately inventoried, and a record of the
4inventory shall be maintained on file with the licensed
5repossession agency for a period of 2 years following the date
6of repossession. The licensed repossession agency shall hold
7all personal effects and other property not covered by a
8security agreement until the licensed repossession agency
9either returns the personal effects and other property to the
10debtor or disposes of the personal effects and other property
11in accordance with this Section.
12    (d) Within 5 working days following the date of
13repossession, the licensed repossession agency shall give
14written notification to the debtor of the whereabouts of
15personal effects or other property inventoried. At least 45
16days prior to disposing of such personal effects or other
17property, the licensed repossession agency shall, by United
18States Postal Service certified mail, notify the debtor of the
19intent to dispose of the property. Should the debtor, or his or
20her lawful designee, appear to retrieve the personal property
21prior to the date on which the licensed repossession agency is
22allowed to dispose of the property, the licensed repossession
23agency shall surrender the personal property to that
24individual upon payment of any reasonably incurred expenses
25for inventory and storage.
26    (e) If personal property is not claimed within 45 days of

 

 

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1the notice of intent to dispose, then the licensed
2repossession agency may dispose of the personal property at
3its discretion, except that illegal items or contraband shall
4be surrendered to a law enforcement agency, and the licensed
5repossession agency shall retain a receipt or other proof of
6surrender as part of the inventory, and disposal records, and
7recordkeeping it maintains. The inventory of the personal
8property and the records regarding any disposal of personal
9property shall be maintained for a period of 2 years in the
10permanent records of the licensed repossession agency and
11shall be made available upon request to the Commission.
12    (f) If a licensed repossession agency has cause to believe
13that a vehicle that serves as collateral collects or stores
14personal information, as defined under Section 10, then, as
15soon as practicable upon repossession of the vehicle and prior
16to the release of the vehicle from the possession of the
17licensed repossession agency, the licensed repossession agency
18shall clear, erase, delete, or otherwise eliminate the
19personal information collected or stored in or by the vehicle
20by utilizing a standardized electronic solution that has been
21approved by the American Recovery Association.
22(Source: P.A. 97-576, eff. 7-1-12.)