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Public Act 103-0371


 

Public Act 0371 103RD GENERAL ASSEMBLY

  
  
  

 


 
Public Act 103-0371
 
SB0800 EnrolledLRB103 03257 BMS 48263 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Regulatory Sunset Act is amended by
changing Section 4.37 and by adding Section 4.42 as follows:
 
    (5 ILCS 80/4.37)
    Sec. 4.37. Acts and Articles repealed on January 1, 2027.
The following are repealed on January 1, 2027:
    The Clinical Psychologist Licensing Act.
    The Illinois Optometric Practice Act of 1987.
    Articles II, III, IV, V, VI, VIIA, VIIB, VIIC, XVII, XXXI,
and XXXI 1/4 of the Illinois Insurance Code.
    The Boiler and Pressure Vessel Repairer Regulation Act.
    The Marriage and Family Therapy Licensing Act.
    The Boxing and Full-contact Martial Arts Act.
    The Cemetery Oversight Act.
    The Community Association Manager Licensing and
Disciplinary Act.
    The Detection of Deception Examiners Act.
    The Home Inspector License Act.
    The Massage Licensing Act.
    The Medical Practice Act of 1987.
    The Petroleum Equipment Contractors Licensing Act.
    The Radiation Protection Act of 1990.
    The Real Estate Appraiser Licensing Act of 2002.
    The Registered Interior Designers Act.
    The Landscape Architecture Registration Act.
    The Water Well and Pump Installation Contractor's License
Act.
    The Collateral Recovery Act.
    The Licensed Certified Professional Midwife Practice Act.
(Source: P.A. 102-20, eff. 6-25-21; 102-284, eff. 8-6-21;
102-437, eff. 8-20-21; 102-656, eff. 8-27-21; 102-683, eff.
10-1-22; 102-813, eff. 5-13-22.)
 
    (5 ILCS 80/4.42 new)
    Sec. 4.42. Acts repealed on January 1, 2032. The following
Acts are repealed on January 1, 2032:
    The Collateral Recovery Act.
 
    Section 10. The Collateral Recovery Act is amended by
changing Sections 5, 10, and 110 as follows:
 
    (225 ILCS 422/5)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 5. Findings; purpose.
    (a) The General Assembly finds: (i) due to advancements in
technology, personal information associated with consumers is
increasingly collected and stored on motor vehicles that
function as collateral in secured loans; (ii) the loss or
breach of such personal information can cause consumers
financial and personal harm and loss, including, but not
limited to, harm and loss associated with identity theft and
loss of privacy; (iii) when motor vehicles are repossessed, it
is critical that consumers be protected from such harm and
loss; and (iv) that collateral recovery practices affect
public health, safety, and welfare. and
    (b) The General Assembly declares that the purpose of this
Act is to: (i) regulate individuals and entities engaged in
the business of collateral recovery for the protection of the
public; and (ii) ensure that repossession agencies protect
motor vehicle collateral consumers from potential harm and
loss associated with personal information that is collected
and stored on motor vehicles.
(Source: P.A. 97-576, eff. 7-1-12.)
 
    (225 ILCS 422/10)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 10. Definitions. In this Act:
    "Assignment" means a written authorization by a legal
owner, lien holder, lessor, lessee, or licensed repossession
agency authorized by a legal owner, lien holder, lessor or
lessee to locate or repossess, involuntarily or voluntarily,
any collateral, including, but not limited to, collateral
registered under the Illinois Vehicle Code that is subject to
a security agreement that contains a repossession clause or is
the subject of a rental or lease agreement.
    "Assignment" also means a written authorization by an
employer to recover any collateral entrusted to an employee or
former employee if the possessor is wrongfully in the
possession of the collateral. A photocopy, facsimile copy, or
electronic copy of an assignment shall have the same force and
effect as an original written assignment.
    "Automobile rental company" means a person or entity whose
primary business is renting motor vehicles to the public for
30 days or less.
    "Branch office" means each additional office and secured
storage facility location of a repossession agency (i) located
in and conducting business within the State of Illinois and
(ii) operating under the same name as the repossession agency
where business is actively conducted or is engaged in the
business authorized by the licensure. Each branch office must
be individually licensed.
    "Collateral" means any vehicle, boat, recreational
vehicle, motor home, motorcycle, or other property that is
subject to a security, lease, or rental agreement.
    "Commission" means the Illinois Commerce Commission.
    "Debtor" means any person or entity obligated under a
lease, rental, or security agreement.
    "Financial institution" means a bank, a licensee under the
Consumer Installment Loan Act, savings bank, savings and loan
association, or credit union organized and operating under the
laws of this or any other state or of the United States, and
any subsidiary or affiliate thereof.
    "Legal owner" means a person holding (i) a security
interest in any collateral that is subject to a security
agreement, (ii) a lien against any collateral, or (iii) an
interest in any collateral that is subject to a lease or rental
agreement.
    "Licensure" means the approval of the required criteria
that has been submitted for review in accordance with the
provisions of this Act.
    "Licensed recovery manager" means a person who possesses a
valid license in accordance with the provisions of this Act
and is in control or management of an Illinois repossession
agency.
    "Personal effects" means any property contained within or
on repossessed collateral, or property that is not permanently
affixed to the collateral, that is not the property of the
legal owner.
    "Personal information" means information that is
associated with an owner, driver, or passenger of the
collateral and that is collected and stored by electronic
means or systems in or by the collateral during the course of
its use, including, but not limited to: (i) biometric
information, as defined by the Biometric Information Privacy
Act, contacts, addresses, telephone numbers, garage door
codes, map data, and digital subscriptions; (ii) information
that is deemed "sensitive personal information" by the Federal
Trade Commission, "personally identifiable information" under
federal law or the Personal Information Protection Act, or
"individually identifiable health information" under the
federal Health Insurance Portability and Accountability Act;
and (iii) information that a licensed repossession agency
reasonably believes would be deemed confidential or private by
the person who is associated with the information.
    "Recovery permit" means a permit issued by the Commission
to a repossession agency employee who has met all the
requirements under this Act.
    "Recovery ticket" means a serialized record obtained from
the Commission for any repossessed vehicle or collateral
evidencing that any person, business, financial institution,
automotive dealership, or repossession agency who shows a
recovery ticket has paid the recovery ticket fee to the
Commission.
    "Remote storage location" means a secured storage facility
of a licensed repossession agency designated for the storage
of collateral that is a secure building or has a perimeter that
is secured with a fencing construction that makes the area not
accessible to the public. A remote storage location shall not
transact business with the public and shall provide evidence
of applicable insurance to the Commission that specifies the
licensed repossession agency as the primary policy holder. A
remote storage location shall be located in a commercially
zoned area physically located in Illinois.
    "Repossession agency" means any person or entity
conducting business within the State of Illinois, that, for
any type of consideration, engages in the business of, accepts
employment to furnish, or agrees to provide or provides
property locating services, property recovery, recovered
property transportation, recovered property storage, or all
services relevant to any of the following:
        (1) The location, disposition, or recovery of property
    as authorized by the self-help provisions of the Uniform
    Commercial Code.
        (2) The location, disposition, or recovery of lost or
    stolen property.
        (3) Securing evidence concerning repossession and
    recovery to be used before any court, board, office, or
    investigating committee.
        (4) Inventory of property contained in or on the
    collateral or recovered property.
        (5) The possession of collateral.
        (6) The prevention of the misappropriation or
    concealment of chattel, vehicles, goods, objects,
    documents, or papers.
    "Repossession agency" does not include any of the
following:
        (1) An attorney at law who is performing his or her
    duties as an attorney at law.
        (2) The legal owner of collateral that is subject to a
    security agreement.
        (3) An officer or employee of the United States of
    America or of this State or a political subdivision of
    this State while the officer or employee is engaged in the
    performance of his or her official duties.
        (4) A qualified license or recovery permit holder when
    performing services for, or on behalf of, a licensed
    repossession agency.
        (5) A collection agency licensed under the Collection
    Agency Act when its activities are limited to assisting an
    owner in the recovery of property that is not collateral,
    as defined in this Act.
    "Repossession agency employee" means any person or
self-employed independent contractor who is hired by a
repossession agency.
    "Salvage auction" means a person or entity whose primary
business is the sale of motor vehicles for which insurance
companies have made payment of damages on total loss claims.
    "Secured storage facility" means an area located on the
same premises as a repossession agency office or branch office
that is designated for the storage of collateral and is a
secure building or has a perimeter that is secured with a
fencing construction that makes the area not accessible to the
public. Each repossession agency office or branch office must
maintain a secured storage facility.
    "Security agreement" means an obligation, pledge,
mortgage, chattel mortgage, lease agreement, rental agreement,
deposit, or lien, given by a debtor as security for payment or
performance of his or her debt by furnishing the creditor with
a recourse to be used in case of failure in the principal
obligation. "Security agreement" includes a bailment where an
employer-employee relationship exists or existed between the
bailor and the bailee.
(Source: P.A. 97-576, eff. 7-1-12; 97-708, eff. 7-1-12.)
 
    (225 ILCS 422/110)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 110. Repossession of vehicles.
    (a) With regard to collateral subject to a security
agreement, repossession occurs when the licensed repossession
agency employee gains entry into the collateral, the
collateral becomes connected to a tow vehicle, or the licensed
repossession agency employee has physical control, custody, or
possession of the collateral.
    (b) The licensed repossession agency shall confirm with
the legal owner of a recovered vehicle whether the legal owner
holds a security interest in the personal effects or other
property contained in or on the recovered vehicle.
    (c) If personal effects or other property not covered by a
security agreement are contained in or on a recovered vehicle
at the time it is recovered, then the personal effects and
other property not covered by a security agreement must be
completely and accurately inventoried, and a record of the
inventory shall be maintained on file with the licensed
repossession agency for a period of 2 years following the date
of repossession. The licensed repossession agency shall hold
all personal effects and other property not covered by a
security agreement until the licensed repossession agency
either returns the personal effects and other property to the
debtor or disposes of the personal effects and other property
in accordance with this Section.
    (d) Within 5 working days following the date of
repossession, the licensed repossession agency shall give
written notification to the debtor of the whereabouts of
personal effects or other property inventoried. At least 45
days prior to disposing of such personal effects or other
property, the licensed repossession agency shall, by United
States Postal Service certified mail, notify the debtor of the
intent to dispose of the property. Should the debtor, or his or
her lawful designee, appear to retrieve the personal property
prior to the date on which the licensed repossession agency is
allowed to dispose of the property, the licensed repossession
agency shall surrender the personal property to that
individual upon payment of any reasonably incurred expenses
for inventory and storage.
    (e) If personal property is not claimed within 45 days of
the notice of intent to dispose, then the licensed
repossession agency may dispose of the personal property at
its discretion, except that illegal items or contraband shall
be surrendered to a law enforcement agency, and the licensed
repossession agency shall retain a receipt or other proof of
surrender as part of the inventory, and disposal records, and
recordkeeping it maintains. The inventory of the personal
property and the records regarding any disposal of personal
property shall be maintained for a period of 2 years in the
permanent records of the licensed repossession agency and
shall be made available upon request to the Commission.
    (f) If a licensed repossession agency has cause to believe
that a vehicle that serves as collateral collects or stores
personal information, as defined under Section 10, 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 that has been
approved by the American Recovery Association.
(Source: P.A. 97-576, eff. 7-1-12.)

Effective Date: 1/1/2024