SB1519 101ST GENERAL ASSEMBLY

LRB101 06089 TAE 51110 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1519

Introduced 2/15/2019, by Sen. Emil Jones, III

SYNOPSIS AS INTRODUCED:

625 ILCS 5/4-216
625 ILCS 5/11-208.7

Amends the Illinois Vehicle Code. Provides for the release of an impounded vehicle to a lessor of record in the same manner as a lienholder of record. Provides that vehicles not retrieved from the towing facility or storage facility within 10 (instead of 35) days after an administrative hearing officer issues a written decision shall be deemed abandoned and disposed of. Provides that, except in a municipality with a population of 1,000,000 or more, a lienholder of record or lessor of record may take possession of a vehicle impounded under any ordinance and defer payment of any applicable administrative fees upon submission of specified documentation to the municipality or its designated agent. Provides that no vehicle shall be released to the lienholder of record or lessor of record until payment of the associated towing, storage, and other applicable fees charged by the person, firm, or entity that tows and stores the impounded vehicle to the extent the lienholder of record or lessor of record was given notice. Provides that, upon the request of a lienholder of record or lessor of record to obtain possession of an impounded vehicle, the county or municipality, or its designated agent, shall: (1) provide the lienholder of record or lessor of record an opportunity to view the vehicle within 2 business days of the request; (2) provide a statement in writing setting forth the amount of the applicable administrative fees; and (3) provide a statement in writing setting forth the amount of the applicable towing, storage, and other fees. Effective 90 days after becoming law.

A BILL FOR

AN ACT concerning transportation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Vehicle Code is amended by changing Sections 4-216 and 11-208.7 as follows:

(625 ILCS 5/4-216)

Sec. 4-216. Storage fees; notice to lienholder of record or lessor of record.

(a) Any commercial vehicle relocator or any other private towing service providing removal or towing services pursuant to this Code and seeking to impose fees in connection with the furnishing of storage for a vehicle in the possession of the commercial vehicle relocator or other private towing service must provide written notice within 2 business days after the vehicle is removed or towed, by certified mail, return receipt requested, to the lienholder of record or lessor of record, regardless of whether the commercial vehicle relocator or other private towing service enforces a lien under the Labor and Storage Lien Act or the Labor and Storage Lien (Small Amount) Act. The notice shall be effective upon mailing and include the rate at which fees will be incurred, and shall provide the lienholder of record or lessor of record with an opportunity to inspect the vehicle on the premises where the vehicle is stored within 2 business days of the lienholder of record's or lessor of record's lienholder's request. The date on which the assessment and accrual of storage fees may commence is the date of the impoundment of the vehicle, subject to any applicable limitations set forth by a municipality authorizing the vehicle removal. Payment of the storage fees by the lienholder of record or lessor of record may be made in cash or by cashier's check, certified check, debit card, credit card, or wire transfer, at the option of the lienholder of record or lessor of record taking possession of the vehicle. The commercial vehicle relocator or other private towing service shall furnish a copy of the certified mail receipt to the lienholder of record or lessor of record upon request.

(b) The notification requirements in subsection (a) of this Section apply in addition to any lienholder of record or lessor of record notice requirements under this Code relating to the removal or towing of an abandoned, lost, stolen, or unclaimed vehicle. If the commercial vehicle relocator or other private towing service fails to comply with the notification requirements set forth in subsection (a) of this Section, storage fees shall not be assessed and collected and the lienholder of record or lessor of record shall be entitled to injunctive relief for possession of the vehicle without the payment of any storage fees.

(c) If the notification required under subsection (a) was not sent and a lienholder of record or lessor of record discovers its collateral is in the possession of a commercial vehicle relocator or other private towing service by means other than the notification required in subsection (a) of this Section, the lienholder of record or lessor of record is entitled to recover any storage fees paid to the commercial vehicle relocator or other private towing service to reclaim possession of its collateral.

(d) An action under this Section may be brought by the lienholder of record or lessor of record against the commercial vehicle locator or other private towing service in the circuit court.

(e) Notwithstanding any provision to the contrary in this Code, a commercial vehicle relocator or other private towing service seeking to impose storage fees for a vehicle in its possession may not foreclose or otherwise enforce its claim for payment of storage services or any lien relating to the claim pursuant to this Code or other applicable law unless it first complies with the lienholder of record or lessor of record notification requirements set forth in subsection (a) of this Section.

(f) If the vehicle that is removed or towed is registered in a state other than Illinois, the assessment and accrual of storage fees may commence on the date that the request for lienholder of record or lessor of record information is filed by the commercial vehicle relocator or other private towing service with the applicable administrative agency or office in that state if: (i) the commercial vehicle relocator or other private towing service furnishes the lienholder of record or lessor of record with a copy or proof of filing of the request for lienholder of record or lessor of record information; (ii) the commercial vehicle relocator or other private towing service provides to the lienholder of record or lessor of record the notification required by this Section within one business day after receiving the requested lienholder of record or lessor of record information; and (iii) the assessment of storage fees complies with any applicable limitations set forth by a municipality authorizing the vehicle removal.

(Source: P.A. 100-311, eff. 11-23-17; 100-863, eff. 8-14-18.)

(625 ILCS 5/11-208.7)

Sec. 11-208.7. Administrative fees and procedures for impounding vehicles for specified violations.

(a) Any county or municipality may, consistent with this Section, provide by ordinance procedures for the release of properly impounded vehicles and for the imposition of a reasonable administrative fee related to its administrative and processing costs associated with the investigation, arrest, and detention of an offender, or the removal, impoundment, storage, and release of the vehicle. The administrative fee imposed by the county or municipality may be in addition to any fees charged for the towing and storage of an impounded vehicle. The administrative fee shall be waived by the county or municipality upon verifiable proof that the vehicle was stolen at the time the vehicle was impounded.

(b) An ordinance establishing procedures for the release of properly impounded vehicles under this Section may impose fees only for the following violations:

(1) operation or use of a motor vehicle in the commission of, or in the attempt to commit, an offense for which a motor vehicle may be seized and forfeited pursuant to Section 36-1 of the Criminal Code of 2012; or

(2) driving under the influence of alcohol, another drug or drugs, an intoxicating compound or compounds, or any combination thereof, in violation of Section 11-501 of this Code; or

(3) operation or use of a motor vehicle in the commission of, or in the attempt to commit, a felony or in violation of the Cannabis Control Act; or

(4) operation or use of a motor vehicle in the commission of, or in the attempt to commit, an offense in violation of the Illinois Controlled Substances Act; or

(5) operation or use of a motor vehicle in the commission of, or in the attempt to commit, an offense in violation of Section 24-1, 24-1.5, or 24-3.1 of the Criminal Code of 1961 or the Criminal Code of 2012; or

(6) driving while a driver's license, permit, or privilege to operate a motor vehicle is suspended or revoked pursuant to Section 6-303 of this Code; except that vehicles shall not be subjected to seizure or impoundment if the suspension is for an unpaid citation (parking or moving) or due to failure to comply with emission testing; or

(7) operation or use of a motor vehicle while soliciting, possessing, or attempting to solicit or possess cannabis or a controlled substance, as defined by the Cannabis Control Act or the Illinois Controlled Substances Act; or

(8) operation or use of a motor vehicle with an expired driver's license, in violation of Section 6-101 of this Code, if the period of expiration is greater than one year; or

(9) operation or use of a motor vehicle without ever having been issued a driver's license or permit, in violation of Section 6-101 of this Code, or operating a motor vehicle without ever having been issued a driver's license or permit due to a person's age; or

(10) operation or use of a motor vehicle by a person against whom a warrant has been issued by a circuit clerk in Illinois for failing to answer charges that the driver violated Section 6-101, 6-303, or 11-501 of this Code; or

(11) operation or use of a motor vehicle in the commission of, or in the attempt to commit, an offense in violation of Article 16 or 16A of the Criminal Code of 1961 or the Criminal Code of 2012; or

(12) operation or use of a motor vehicle in the commission of, or in the attempt to commit, any other misdemeanor or felony offense in violation of the Criminal Code of 1961 or the Criminal Code of 2012, when so provided by local ordinance; or

(13) operation or use of a motor vehicle in violation of Section 11-503 of this Code:

(A) while the vehicle is part of a funeral procession; or

(B) in a manner that interferes with a funeral procession.

(c) The following shall apply to any fees imposed for administrative and processing costs pursuant to subsection (b):

(1) All administrative fees and towing and storage charges shall be imposed on the registered owner of the motor vehicle or the agents of that owner.

(2) The fees shall be in addition to (i) any other penalties that may be assessed by a court of law for the underlying violations; and (ii) any towing or storage fees, or both, charged by the towing company.

(3) The fees shall be uniform for all similarly situated vehicles.

(4) The fees shall be collected by and paid to the county or municipality imposing the fees.

(5) The towing or storage fees, or both, shall be collected by and paid to the person, firm, or entity that tows and stores the impounded vehicle.

(d) Except as provided in subsection (k), any Any ordinance establishing procedures for the release of properly impounded vehicles under this Section shall provide for an opportunity for a hearing, as provided in subdivision (b)(4) of Section 11-208.3 of this Code, and for the release of the vehicle to the owner of record, lessee, or a lienholder of record, including a lessor of record, upon payment of all administrative fees and towing and storage fees.

(e) Any ordinance establishing procedures for the impoundment and release of vehicles under this Section shall include the following provisions concerning notice of impoundment:

(1) Whenever a police officer has cause to believe that a motor vehicle is subject to impoundment, the officer shall provide for the towing of the vehicle to a facility authorized by the county or municipality.

(2) At the time the vehicle is towed, the county or municipality shall notify, as soon as practicable, or make a reasonable attempt to notify the owner, lessee, or person identifying himself or herself as the owner or lessee of the vehicle, or any person who is found to be in control of the vehicle at the time of the alleged offense, of the fact of the seizure, and of the vehicle owner's or lessee's right to an administrative hearing. Notice shall be given by the towing company to the lienholder of record or the lessor of record pursuant to Section 4-216 of this Code.

(3) Except as provided in subsection (k), the The county or municipality shall also provide notice that the motor vehicle will remain impounded pending the completion of an administrative hearing, unless the owner or lessee of the vehicle or a lienholder posts with the county or municipality a bond equal to the administrative fee as provided by ordinance and pays for all towing and storage charges.

(f) Any ordinance establishing procedures for the impoundment and release of vehicles under this Section shall include a provision providing that the registered owner or lessee of the vehicle and any lienholder of record shall be provided with a notice of hearing. The notice shall:

(1) be served upon the owner, lessee, and any lienholder of record either by personal service or by first class mail to the interested party's address as registered with the Secretary of State;

(2) be served upon interested parties within 10 days after a vehicle is impounded by the municipality; and

(3) contain the date, time, and location of the administrative hearing. An initial hearing shall be scheduled and convened no later than 45 days after the date of the mailing of the notice of hearing.

(g) In addition to the requirements contained in subdivision (b)(4) of Section 11-208.3 of this Code relating to administrative hearings, any ordinance providing for the impoundment and release of vehicles under this Section shall include the following requirements concerning administrative hearings:

(1) administrative hearings shall be conducted by a hearing officer who is an attorney licensed to practice law in this State for a minimum of 3 years;

(2) at the conclusion of the administrative hearing, the hearing officer shall issue a written decision either sustaining or overruling the vehicle impoundment;

(3) if the basis for the vehicle impoundment is sustained by the administrative hearing officer, any administrative fee posted to secure the release of the vehicle shall be forfeited to the county or municipality;

(4) all final decisions of the administrative hearing officer shall be subject to review under the provisions of the Administrative Review Law, unless the county or municipality allows in the enabling ordinance for direct appeal to the circuit court having jurisdiction over the county or municipality;

(5) except as provided in subsection (k), unless the administrative hearing officer overturns the basis for the vehicle impoundment, no vehicle shall be released to the owner, lessee, or lienholder of record until all administrative fees and towing and storage charges are paid; and

(6) if the administrative hearing officer finds that a county or municipality that impounds a vehicle exceeded its authority under this Code, the county or municipality shall be liable to the registered owner or lessee of the vehicle for the cost of storage fees and reasonable attorney's fees.

(h) Vehicles not retrieved from the towing facility or storage facility within 10 35 days after the administrative hearing officer issues a written decision shall be deemed abandoned and disposed of in accordance with the provisions of Article II of Chapter 4 of this Code.

(i) Unless stayed by a court of competent jurisdiction, any fine, penalty, or administrative fee imposed under this Section which remains unpaid in whole or in part after the expiration of the deadline for seeking judicial review under the Administrative Review Law may be enforced in the same manner as a judgment entered by a court of competent jurisdiction.

(j) The fee limits in subsection (b), the exceptions in paragraph (6) of subsection (b), and all of paragraph (6) of subsection (g) of this Section shall not apply to a home rule unit that tows a vehicle on a public way if a circumstance requires the towing of the vehicle or if the vehicle is towed due to a violation of a statute or local ordinance, and the home rule unit:

(1) owns and operates a towing facility within its boundaries for the storage of towed vehicles; and

(2) owns and operates tow trucks or enters into a contract with a third party vendor to operate tow trucks.

(k) Notwithstanding any other provision of this Section to the contrary, a lienholder of record or lessor of record may take possession of a vehicle impounded under any ordinance authorized by this Section and defer payment of any applicable administrative fees upon submission of the following to the municipality or its designated agent:

(1) the lienholder of record's or lessor of record's duly executed affidavit stating that the lienholder of record or lessor of record is the owner of or has the right to possession of the vehicle;

(2) a notarized agreement to indemnify and hold harmless the municipality and its agents for the release of the vehicle to the lienholder of record or lessor of record; and

(3) a written agreement of the lienholder of record or lessor of record that he or she shall conditionally pay to the municipality a portion or all of the applicable administrative fees under this Section, to the extent of any surplus funds received by the lienholder of record or lessor of record from the repossession sale of the vehicle under the Uniform Commercial Code or the Motor Vehicle Leasing Act. The amount of the surplus shall be as defined under Section 9-615 of the Uniform Commercial Code. The agreement shall provide that if the repossession sale does not yield enough surplus to pay the full amount owed to the municipality, the lienholder of record or lessor of record shall pay the municipality as much as is available from the surplus, if any, and the lienholder of record or lessor of record shall not have any further liability to the municipality for the amount owed. The agreement shall further provide that if the lienholder of record or lessor of record allows the owner, purchaser, or lessee to redeem or reinstate the vehicle or agreement and retake possession of the vehicle, and the vehicle is again towed and impounded, the provisions of this subsection (k) do not apply.

No vehicle shall be released to the lienholder of record or lessor of record until payment of the associated towing, storage, and other applicable fees charged by the person, firm, or entity that tows and stores the impounded vehicle to the extent the lienholder of record or lessor of record was given notice as provided by this Section.

(l) Upon the request of a lienholder of record or lessor of record to obtain possession of a vehicle impounded under any ordinance authorized by this Section, the county or municipality, or its designated agent, shall:

(1) provide the lienholder of record or lessor of record an opportunity to view the vehicle within 2 business days of the request;

(2) provide a statement in writing setting forth the amount of the applicable administrative fees authorized by this Section as of the date of the statement and all current fee rates imposed on a daily, weekly, or monthly basis; and

(3) provide a statement in writing setting forth the amount of the applicable towing, storage, and other fees authorized by this Section as of the date of the statement and all current fee rates imposed on a daily, weekly, or monthly basis.

(m) The changes made to this Section by this amendatory Act of the 101st General Assembly do not apply to a municipality with a population of 1,000,000 or more inhabitants.

(Source: P.A. 98-518, eff. 8-22-13; 98-734, eff. 1-1-15; 98-756, eff. 7-16-14; 99-848, eff. 8-19-16.)

Section 99. Effective date. This Act takes effect 90 days after becoming law.