Sen. Kimberly A. Lightford

Filed: 4/25/2023

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 800

2    AMENDMENT NO. ______. Amend Senate Bill 800 by replacing
3everything after the enacting clause with the following:
 
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 Acts and Articles repealed on January 1, 2027.
8The following are repealed on January 1, 2027: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.

 

 

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1    The Community Association Manager Licensing and
2Disciplinary Act.
3    The Detection of Deception Examiners Act.
4    The Home Inspector License Act.
5    The Massage Licensing Act.
6    The Medical Practice Act of 1987.
7    The Petroleum Equipment Contractors Licensing Act.
8    The Radiation Protection Act of 1990.
9    The Real Estate Appraiser Licensing Act of 2002.
10    The Registered Interior Designers Act.
11    The Landscape Architecture Registration Act.
12    The Water Well and Pump Installation Contractor's License
13Act.
14    The Collateral Recovery Act.
15    The Licensed Certified Professional Midwife Practice Act.
16(Source: P.A. 102-20, eff. 6-25-21; 102-284, eff. 8-6-21;
17102-437, eff. 8-20-21; 102-656, eff. 8-27-21; 102-683, eff.
1810-1-22; 102-813, eff. 5-13-22.)
 
19    (5 ILCS 80/4.42 new)
20    Sec. 4.42. Acts repealed on January 1, 2032. The following
21Acts are repealed on January 1, 2032:
22    The Collateral Recovery Act.
 
23    Section 10. The Collateral Recovery Act is amended by
24changing Sections 5, 10, and 110 as follows:
 

 

 

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1    (225 ILCS 422/5)
2    (Section scheduled to be repealed on January 1, 2027)
3    Sec. 5. Findings; purpose.
4    (a) The General Assembly finds: (i) due to advancements in
5technology, personal information associated with consumers is
6increasingly collected and stored on motor vehicles that
7function as collateral in secured loans; (ii) the loss or
8breach of such personal information can cause consumers
9financial and personal harm and loss, including, but not
10limited to, harm and loss associated with identity theft and
11loss of privacy; (iii) when motor vehicles are repossessed, it
12is critical that consumers be protected from such harm and
13loss; and (iv) that collateral recovery practices affect
14public health, safety, and welfare. and
15    (b) The General Assembly declares that the purpose of this
16Act is to: (i) regulate individuals and entities engaged in
17the business of collateral recovery for the protection of the
18public; and (ii) ensure that repossession agencies protect
19motor vehicle collateral consumers from potential harm and
20loss associated with personal information that is collected
21and stored on 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)

 

 

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1    Sec. 10. Definitions. In this Act:
2    "Assignment" means a written authorization by a legal
3owner, lien holder, lessor, lessee, or licensed repossession
4agency authorized by a legal owner, lien holder, lessor or
5lessee to locate or repossess, involuntarily or voluntarily,
6any collateral, including, but not limited to, collateral
7registered under the Illinois Vehicle Code that is subject to
8a security agreement that contains a repossession clause or is
9the subject of a rental or lease agreement.
10    "Assignment" also means a written authorization by an
11employer to recover any collateral entrusted to an employee or
12former employee if the possessor is wrongfully in the
13possession of the collateral. A photocopy, facsimile copy, or
14electronic copy of an assignment shall have the same force and
15effect as an original written assignment.
16    "Automobile rental company" means a person or entity whose
17primary business is renting motor vehicles to the public for
1830 days or less.
19    "Branch office" means each additional office and secured
20storage facility location of a repossession agency (i) located
21in and conducting business within the State of Illinois and
22(ii) operating under the same name as the repossession agency
23where business is actively conducted or is engaged in the
24business authorized by the licensure. Each branch office must
25be individually licensed.
26    "Collateral" means any vehicle, boat, recreational

 

 

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1vehicle, motor home, motorcycle, or other property that is
2subject to a security, lease, or rental agreement.
3    "Commission" means the Illinois Commerce Commission.
4    "Debtor" means any person or entity obligated under a
5lease, rental, or security agreement.
6    "Financial institution" means a bank, a licensee under the
7Consumer Installment Loan Act, savings bank, savings and loan
8association, or credit union organized and operating under the
9laws of this or any other state or of the United States, and
10any subsidiary or affiliate thereof.
11    "Legal owner" means a person holding (i) a security
12interest in any collateral that is subject to a security
13agreement, (ii) a lien against any collateral, or (iii) an
14interest in any collateral that is subject to a lease or rental
15agreement.
16    "Licensure" means the approval of the required criteria
17that has been submitted for review in accordance with the
18provisions of this Act.
19    "Licensed recovery manager" means a person who possesses a
20valid license in accordance with the provisions of this Act
21and is in control or management of an Illinois repossession
22agency.
23    "Personal effects" means any property contained within or
24on repossessed collateral, or property that is not permanently
25affixed to the collateral, that is not the property of the
26legal owner.

 

 

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1    "Personal information" means information that is
2associated with an owner, driver, or passenger of the
3collateral and that is collected and stored by electronic
4means or systems in or by the collateral during the course of
5its use, including, but not limited to: (i) biometric
6information, as defined by the Biometric Information Privacy
7Act, contacts, addresses, telephone numbers, garage door
8codes, map data, and digital subscriptions; (ii) information
9that is deemed "sensitive personal information" by the Federal
10Trade Commission, "personally identifiable information" under
11federal law or the Personal Information Protection Act, or
12"individually identifiable health information" under the
13federal Health Insurance Portability and Accountability Act;
14and (iii) information that a licensed repossession agency
15reasonably believes would be deemed confidential or private by
16the person who is associated with the information.
17    "Recovery permit" means a permit issued by the Commission
18to a repossession agency employee who has met all the
19requirements under this Act.
20    "Recovery ticket" means a serialized record obtained from
21the Commission for any repossessed vehicle or collateral
22evidencing that any person, business, financial institution,
23automotive dealership, or repossession agency who shows a
24recovery ticket has paid the recovery ticket fee to the
25Commission.
26    "Remote storage location" means a secured storage facility

 

 

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1of a licensed repossession agency designated for the storage
2of collateral that is a secure building or has a perimeter that
3is secured with a fencing construction that makes the area not
4accessible to the public. A remote storage location shall not
5transact business with the public and shall provide evidence
6of applicable insurance to the Commission that specifies the
7licensed repossession agency as the primary policy holder. A
8remote storage location shall be located in a commercially
9zoned area physically located in Illinois.
10    "Repossession agency" means any person or entity
11conducting business within the State of Illinois, that, for
12any type of consideration, engages in the business of, accepts
13employment to furnish, or agrees to provide or provides
14property locating services, property recovery, recovered
15property transportation, recovered property storage, or all
16services relevant to any of the following:
17        (1) The location, disposition, or recovery of property
18    as authorized by the self-help provisions of the Uniform
19    Commercial Code.
20        (2) The location, disposition, or recovery of lost or
21    stolen property.
22        (3) Securing evidence concerning repossession and
23    recovery to be used before any court, board, office, or
24    investigating committee.
25        (4) Inventory of property contained in or on the
26    collateral or recovered property.

 

 

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1        (5) The possession of collateral.
2        (6) The prevention of the misappropriation or
3    concealment of chattel, vehicles, goods, objects,
4    documents, or papers.
5    "Repossession agency" does not include any of the
6following:
7        (1) An attorney at law who is performing his or her
8    duties as an attorney at law.
9        (2) The legal owner of collateral that is subject to a
10    security agreement.
11        (3) An officer or employee of the United States of
12    America or of this State or a political subdivision of
13    this State while the officer or employee is engaged in the
14    performance of his or her official duties.
15        (4) A qualified license or recovery permit holder when
16    performing services for, or on behalf of, a licensed
17    repossession agency.
18        (5) A collection agency licensed under the Collection
19    Agency Act when its activities are limited to assisting an
20    owner in the recovery of property that is not collateral,
21    as defined in this Act.
22    "Repossession agency employee" means any person or
23self-employed independent contractor who is hired by a
24repossession agency.
25    "Salvage auction" means a person or entity whose primary
26business is the sale of motor vehicles for which insurance

 

 

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1companies have made payment of damages on total loss claims.
2    "Secured storage facility" means an area located on the
3same premises as a repossession agency office or branch office
4that is designated for the storage of collateral and is a
5secure building or has a perimeter that is secured with a
6fencing construction that makes the area not accessible to the
7public. Each repossession agency office or branch office must
8maintain a secured storage facility.
9    "Security agreement" means an obligation, pledge,
10mortgage, chattel mortgage, lease agreement, rental agreement,
11deposit, or lien, given by a debtor as security for payment or
12performance of his or her debt by furnishing the creditor with
13a recourse to be used in case of failure in the principal
14obligation. "Security agreement" includes a bailment where an
15employer-employee relationship exists or existed between the
16bailor and the bailee.
17(Source: P.A. 97-576, eff. 7-1-12; 97-708, eff. 7-1-12.)
 
18    (225 ILCS 422/110)
19    (Section scheduled to be repealed on January 1, 2027)
20    Sec. 110. Repossession of vehicles.
21    (a) With regard to collateral subject to a security
22agreement, repossession occurs when the licensed repossession
23agency employee gains entry into the collateral, the
24collateral becomes connected to a tow vehicle, or the licensed
25repossession agency employee has physical control, custody, or

 

 

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1possession of the collateral.
2    (b) The licensed repossession agency shall confirm with
3the legal owner of a recovered vehicle whether the legal owner
4holds a security interest in the personal effects or other
5property contained in or on the recovered vehicle.
6    (c) If personal effects or other property not covered by a
7security agreement are contained in or on a recovered vehicle
8at the time it is recovered, then the personal effects and
9other property not covered by a security agreement must be
10completely and accurately inventoried, and a record of the
11inventory shall be maintained on file with the licensed
12repossession agency for a period of 2 years following the date
13of repossession. The licensed repossession agency shall hold
14all personal effects and other property not covered by a
15security agreement until the licensed repossession agency
16either returns the personal effects and other property to the
17debtor or disposes of the personal effects and other property
18in accordance with this Section.
19    (d) Within 5 working days following the date of
20repossession, the licensed repossession agency shall give
21written notification to the debtor of the whereabouts of
22personal effects or other property inventoried. At least 45
23days prior to disposing of such personal effects or other
24property, the licensed repossession agency shall, by United
25States Postal Service certified mail, notify the debtor of the
26intent to dispose of the property. Should the debtor, or his or

 

 

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1her lawful designee, appear to retrieve the personal property
2prior to the date on which the licensed repossession agency is
3allowed to dispose of the property, the licensed repossession
4agency shall surrender the personal property to that
5individual upon payment of any reasonably incurred expenses
6for inventory and storage.
7    (e) If personal property is not claimed within 45 days of
8the notice of intent to dispose, then the licensed
9repossession agency may dispose of the personal property at
10its discretion, except that illegal items or contraband shall
11be surrendered to a law enforcement agency, and the licensed
12repossession agency shall retain a receipt or other proof of
13surrender as part of the inventory, and disposal records, and
14recordkeeping it maintains. The inventory of the personal
15property and the records regarding any disposal of personal
16property shall be maintained for a period of 2 years in the
17permanent records of the licensed repossession agency and
18shall be made available upon request to the Commission.
19    (f) If a licensed repossession agency has cause to believe
20that a vehicle that serves as collateral collects or stores
21personal information, as defined under Section 10, then, as
22soon as practicable upon repossession of the vehicle and prior
23to the release of the vehicle from the possession of the
24licensed repossession agency, the licensed repossession agency
25shall clear, erase, delete, or otherwise eliminate the
26personal information collected or stored in or by the vehicle

 

 

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1by utilizing a standardized electronic solution that has been
2approved by the American Recovery Association.
3(Source: P.A. 97-576, eff. 7-1-12.)".