103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1500

 

Introduced 2/7/2023, by Sen. Kimberly A. Lightford

 

SYNOPSIS AS INTRODUCED:
 
5 ILCS 80/4.37
5 ILCS 80/4.42 new
225 ILCS 422/5
225 ILCS 422/10
225 ILCS 422/110

    Amends the Regulatory Sunset Act. Repeals the Collateral Recovery Act on January 1, 2032 (instead of January 1, 2027). Amends the Collateral Recovery Act. Makes changes to the findings and purposes provisions. Defines "hazardous material" and "personal information". Provides that the licensed repossession agency shall recycle or dispose of any personal effect that is a hazardous material in the manner required by State or federal law. Provides that if a licensed repossession agency certifies that a repossessed vehicle contains one or more hazardous materials, the legal owner shall pay the licensed repossessing agency a disposal or recycling surcharge fee. Provides that the first surcharge fee shall be $50. Provides that on January 15, 2025 and each year thereafter, the Illinois Commerce Commission shall adjust and publish a new surcharge fee. Provides that if a licensed repossession agency has cause to believe that a vehicle that serves as collateral collects or stores personal information, then, as soon as practicable upon repossession of the vehicle and prior to the release of the vehicle from the possession of the licensed repossession agency, the licensed repossession agency shall clear, erase, delete, or otherwise eliminate the personal information collected or stored in or by the vehicle by utilizing a standardized electronic solution.


LRB103 29695 AMQ 56099 b

 

 

A BILL FOR

 

SB1500LRB103 29695 AMQ 56099 b

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 Acts and Articles repealed on January 1, 2027.
8The following are repealed on January 1, 2027: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; (iv) personal property that is inside motor vehicles
8when they are repossessed often includes hazardous materials
9which must be properly disposed of for the sake of public
10safety and environmental protection; and (v) that collateral
11recovery practices affect public health, safety, and welfare.
12and
13    (b) The General Assembly declares that the purpose of this
14Act is to: (i) regulate individuals and entities engaged in
15the business of collateral recovery for the protection of the
16public; (ii) ensure that repossession agencies protect motor
17vehicle collateral consumers from potential harm and loss
18associated with personal information that is collected and
19stored on motor vehicles; and (iii) ensure the proper
20recycling and disposal of hazardous materials that are inside
21repossessed motor vehicles.
22(Source: P.A. 97-576, eff. 7-1-12.)
 
23    (225 ILCS 422/10)
24    (Section scheduled to be repealed on January 1, 2027)
25    Sec. 10. Definitions. In this Act:

 

 

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1    "Assignment" means a written authorization by a legal
2owner, lien holder, lessor, lessee, or licensed repossession
3agency authorized by a legal owner, lien holder, lessor or
4lessee to locate or repossess, involuntarily or voluntarily,
5any collateral, including, but not limited to, collateral
6registered under the Illinois Vehicle Code that is subject to
7a security agreement that contains a repossession clause or is
8the subject of a rental or lease agreement.
9    "Assignment" also means a written authorization by an
10employer to recover any collateral entrusted to an employee or
11former employee if the possessor is wrongfully in the
12possession of the collateral. A photocopy, facsimile copy, or
13electronic copy of an assignment shall have the same force and
14effect as an original written assignment.
15    "Automobile rental company" means a person or entity whose
16primary business is renting motor vehicles to the public for
1730 days or less.
18    "Branch office" means each additional office and secured
19storage facility location of a repossession agency (i) located
20in and conducting business within the State of Illinois and
21(ii) operating under the same name as the repossession agency
22where business is actively conducted or is engaged in the
23business authorized by the licensure. Each branch office must
24be individually licensed.
25    "Collateral" means any vehicle, boat, recreational
26vehicle, motor home, motorcycle, or other property that is

 

 

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1subject to a security, lease, or rental agreement.
2    "Commission" means the Illinois Commerce Commission.
3    "Debtor" means any person or entity obligated under a
4lease, rental, or security agreement.
5    "Financial institution" means a bank, a licensee under the
6Consumer Installment Loan Act, savings bank, savings and loan
7association, or credit union organized and operating under the
8laws of this or any other state or of the United States, and
9any subsidiary or affiliate thereof.
10    "Hazardous material" means:
11        (1) material defined as (i) a hazardous material by
12    the United States Department of Transportation under Title
13    49 of the Code of Federal Regulations or (ii) hazardous
14    waste by the federal Environmental Protection Agency
15    through administrative rule; or
16        (2) batteries, motor fuel, motor oil, antifreeze,
17    prescribed or not-prescribed drugs, medical waste,
18    cleansers, insecticides, herbicides, ammunition, paint,
19    lighter fluid, light bulbs, or any other material or
20    personal effect that a licensed repossession agency
21    reasonably and in good faith would conclude to be
22    hazardous or unsafe if disposed of without safeguards.
23    "Legal owner" means a person holding (i) a security
24interest in any collateral that is subject to a security
25agreement, (ii) a lien against any collateral, or (iii) an
26interest in any collateral that is subject to a lease or rental

 

 

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1agreement.
2    "Licensure" means the approval of the required criteria
3that has been submitted for review in accordance with the
4provisions of this Act.
5    "Licensed recovery manager" means a person who possesses a
6valid license in accordance with the provisions of this Act
7and is in control or management of an Illinois repossession
8agency.
9    "Personal effects" means any property contained within or
10on repossessed collateral, or property that is not permanently
11affixed to the collateral, that is not the property of the
12legal owner, including hazardous materials.
13    "Personal information" means information that is
14associated with an owner, driver, or passenger of the
15collateral and that is collected and stored by electronic
16means or systems in or by the collateral during the course of
17its use, including, but not limited to: (i) biometric
18information, as defined by the Biometric Information Privacy
19Act, contacts, addresses, telephone numbers, garage door
20codes, map data, and digital subscriptions; (ii) information
21that is deemed "sensitive personal information" by the Federal
22Trade Commission, "personally identifiable information" under
23federal law or the Personal Information Protection Act, or
24"individually identifiable health information" under the
25federal Health Insurance Portability and Accountability Act;
26and (iii) information that a licensed repossession agency

 

 

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1reasonably believes would be deemed confidential or private by
2the person who is associated with the information.
3    "Recovery permit" means a permit issued by the Commission
4to a repossession agency employee who has met all the
5requirements under this Act.
6    "Recovery ticket" means a serialized record obtained from
7the Commission for any repossessed vehicle or collateral
8evidencing that any person, business, financial institution,
9automotive dealership, or repossession agency who shows a
10recovery ticket has paid the recovery ticket fee to the
11Commission.
12    "Remote storage location" means a secured storage facility
13of a licensed repossession agency designated for the storage
14of collateral that is a secure building or has a perimeter that
15is secured with a fencing construction that makes the area not
16accessible to the public. A remote storage location shall not
17transact business with the public and shall provide evidence
18of applicable insurance to the Commission that specifies the
19licensed repossession agency as the primary policy holder. A
20remote storage location shall be located in a commercially
21zoned area physically located in Illinois.
22    "Repossession agency" means any person or entity
23conducting business within the State of Illinois, that, for
24any type of consideration, engages in the business of, accepts
25employment to furnish, or agrees to provide or provides
26property locating services, property recovery, recovered

 

 

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1property transportation, recovered property storage, or all
2services relevant to any of the following:
3        (1) The location, disposition, or recovery of property
4    as authorized by the self-help provisions of the Uniform
5    Commercial Code.
6        (2) The location, disposition, or recovery of lost or
7    stolen property.
8        (3) Securing evidence concerning repossession and
9    recovery to be used before any court, board, office, or
10    investigating committee.
11        (4) Inventory of property contained in or on the
12    collateral or recovered property.
13        (5) The possession of collateral.
14        (6) The prevention of the misappropriation or
15    concealment of chattel, vehicles, goods, objects,
16    documents, or papers.
17    "Repossession agency" does not include any of the
18following:
19        (1) An attorney at law who is performing his or her
20    duties as an attorney at law.
21        (2) The legal owner of collateral that is subject to a
22    security agreement.
23        (3) An officer or employee of the United States of
24    America or of this State or a political subdivision of
25    this State while the officer or employee is engaged in the
26    performance of his or her official duties.

 

 

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1        (4) A qualified license or recovery permit holder when
2    performing services for, or on behalf of, a licensed
3    repossession agency.
4        (5) A collection agency licensed under the Collection
5    Agency Act when its activities are limited to assisting an
6    owner in the recovery of property that is not collateral,
7    as defined in this Act.
8    "Repossession agency employee" means any person or
9self-employed independent contractor who is hired by a
10repossession agency.
11    "Salvage auction" means a person or entity whose primary
12business is the sale of motor vehicles for which insurance
13companies have made payment of damages on total loss claims.
14    "Secured storage facility" means an area located on the
15same premises as a repossession agency office or branch office
16that is designated for the storage of collateral and is a
17secure building or has a perimeter that is secured with a
18fencing construction that makes the area not accessible to the
19public. Each repossession agency office or branch office must
20maintain a secured storage facility.
21    "Security agreement" means an obligation, pledge,
22mortgage, chattel mortgage, lease agreement, rental agreement,
23deposit, or lien, given by a debtor as security for payment or
24performance of his or her debt by furnishing the creditor with
25a recourse to be used in case of failure in the principal
26obligation. "Security agreement" includes a bailment where an

 

 

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1employer-employee relationship exists or existed between the
2bailor and the bailee.
3(Source: P.A. 97-576, eff. 7-1-12; 97-708, eff. 7-1-12.)
 
4    (225 ILCS 422/110)
5    (Section scheduled to be repealed on January 1, 2027)
6    Sec. 110. Repossession of vehicles.
7    (a) With regard to collateral subject to a security
8agreement, repossession occurs when the licensed repossession
9agency employee gains entry into the collateral, the
10collateral becomes connected to a tow vehicle, or the licensed
11repossession agency employee has physical control, custody, or
12possession of the collateral.
13    (b) The licensed repossession agency shall confirm with
14the legal owner of a recovered vehicle whether the legal owner
15holds a security interest in the personal effects or other
16property contained in or on the recovered vehicle.
17    (c) If personal effects or other property not covered by a
18security agreement are contained in or on a recovered vehicle
19at the time it is recovered, then the personal effects and
20other property not covered by a security agreement must be
21completely and accurately inventoried, and a record of the
22inventory shall be maintained on file with the licensed
23repossession agency for a period of 2 years following the date
24of repossession. The licensed repossession agency shall hold
25all personal effects and other property not covered by a

 

 

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1security agreement until the licensed repossession agency
2either returns the personal effects and other property to the
3debtor or disposes of the personal effects and other property
4in accordance with this Section.
5    (d) Within 5 working days following the date of
6repossession, the licensed repossession agency shall give
7written notification to the debtor of the whereabouts of
8personal effects or other property inventoried. At least 45
9days prior to disposing of such personal effects or other
10property, the licensed repossession agency shall, by United
11States Postal Service certified mail, notify the debtor of the
12intent to dispose of the property. Should the debtor, or his or
13her lawful designee, appear to retrieve the personal property
14prior to the date on which the licensed repossession agency is
15allowed to dispose of the property, the licensed repossession
16agency shall surrender the personal property to that
17individual upon payment of any reasonably incurred expenses
18for inventory and storage.
19    (e) If personal property is not claimed within 45 days of
20the notice of intent to dispose, then the licensed
21repossession agency may dispose of the personal property at
22its discretion, except that illegal items or contraband shall
23be surrendered to a law enforcement agency, and the licensed
24repossession agency shall retain a receipt or other proof of
25surrender as part of the inventory, and disposal records, and
26recordkeeping it maintains. The licensed repossession agency

 

 

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1shall recycle or dispose of any personal effect that is a
2hazardous material in the manner required by State or federal
3law. In any instance in which a licensed repossessing agency
4certifies both that a repossessed vehicle contains one or more
5hazardous materials and that the agency disposed of such
6hazardous materials, the legal owner shall pay the licensed
7repossessing agency a disposal or recycling surcharge fee plus
8such additional fees as are charged pursuant to federal,
9State, or local law, ordinance, regulation, or rule for the
10disposal of the relevant hazardous material or materials. The
11first surcharge fee shall be $50. On January 15, 2025 and each
12year thereafter, the Commission shall adjust and publish a new
13surcharge fee, calculated according to the previous year's
14Consumer Price Index for All Urban Consumers, published by the
15Bureau of Labor Statistics of the federal Department of Labor.
16The inventory of the personal property and the records
17regarding any disposal of personal property shall be
18maintained for a period of 2 years in the permanent records of
19the licensed repossession agency and shall be made available
20upon request to the Commission.
21    (f) If a licensed repossession agency has cause to believe
22that a vehicle that serves as collateral collects or stores
23personal information, as defined under Section 10, then, as
24soon as practicable upon repossession of the vehicle and prior
25to the release of the vehicle from the possession of the
26licensed repossession agency, the licensed repossession agency

 

 

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1shall clear, erase, delete, or otherwise eliminate the
2personal information collected or stored in or by the vehicle
3by utilizing a standardized electronic solution that has been
4approved by the American Recovery Association.
5(Source: P.A. 97-576, eff. 7-1-12.)