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Public Act 103-0371 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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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 Acts and Articles repealed on January 1, 2027.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The following are repealed on January 1, 2027: | ||||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.
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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.
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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 Acts repealed on January 1, 2032.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Acts are repealed on January 1, 2032: | ||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)
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(Section scheduled to be repealed on January 1, 2027) | ||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 .
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(Source: P.A. 97-576, eff. 7-1-12 .) | ||
(225 ILCS 422/10)
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(Section scheduled to be repealed on January 1, 2027) | ||
Sec. 10. Definitions. In this Act: | ||
"Assignment" means a written authorization by a legal
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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
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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.
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"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
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vehicle, motor home, motorcycle, or other property
that is | ||
subject to a security, lease, or rental agreement.
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"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
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interest in any collateral that is subject to a security
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agreement, (ii) a lien against any collateral, or (iii) an
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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
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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.
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"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
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property locating services, property recovery,
recovered | ||
property transportation, recovered property storage, or all
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services relevant to any of the following:
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(1) The location, disposition, or recovery of property | ||
as
authorized by the self-help provisions of the Uniform
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Commercial Code. | ||
(2) The location, disposition, or recovery of lost or
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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
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concealment of chattel, vehicles, goods, objects,
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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
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performing services for, or on behalf of, a licensed | ||
repossession agency.
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(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.
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"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.
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"Security agreement" means an obligation, pledge,
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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.
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(Source: P.A. 97-576, eff. 7-1-12; 97-708, eff. 7-1-12 .) | ||
(225 ILCS 422/110)
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(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.
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(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 .)
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