Bill Text: IL SB1500 | 2023-2024 | 103rd General Assembly | Introduced

---

Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-03-10 - Rule 3-9(a) / Re-referred to Assignments [SB1500 Detail]

Download: Illinois-2023-SB1500-Introduced.html

---

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
SB1500 LRB103 29695 AMQ 56099 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.

SB1500 - 2 - LRB103 29695 AMQ 56099 b
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

SB1500 - 3 - LRB103 29695 AMQ 56099 b
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; (iv) personal property that is inside motor vehicles
when they are repossessed often includes hazardous materials
which must be properly disposed of for the sake of public
safety and environmental protection; and (v) 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; (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; and (iii) ensure the proper
recycling and disposal of hazardous materials that are inside
repossessed 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:

SB1500 - 4 - LRB103 29695 AMQ 56099 b
"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

SB1500 - 5 - LRB103 29695 AMQ 56099 b
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.
"Hazardous material" means:
(1) material defined as (i) a hazardous material by
the United States Department of Transportation under Title
49 of the Code of Federal Regulations or (ii) hazardous
waste by the federal Environmental Protection Agency
through administrative rule; or
(2) batteries, motor fuel, motor oil, antifreeze,
prescribed or not-prescribed drugs, medical waste,
cleansers, insecticides, herbicides, ammunition, paint,
lighter fluid, light bulbs, or any other material or
personal effect that a licensed repossession agency
reasonably and in good faith would conclude to be
hazardous or unsafe if disposed of without safeguards.
"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

SB1500 - 6 - LRB103 29695 AMQ 56099 b
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, including hazardous materials.
"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

SB1500 - 7 - LRB103 29695 AMQ 56099 b
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

SB1500 - 8 - LRB103 29695 AMQ 56099 b
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.

SB1500 - 9 - LRB103 29695 AMQ 56099 b
(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

SB1500 - 10 - LRB103 29695 AMQ 56099 b
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

SB1500 - 11 - LRB103 29695 AMQ 56099 b
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 licensed repossession agency

SB1500 - 12 - LRB103 29695 AMQ 56099 b
shall recycle or dispose of any personal effect that is a
hazardous material in the manner required by State or federal
law. In any instance in which a licensed repossessing agency
certifies both that a repossessed vehicle contains one or more
hazardous materials and that the agency disposed of such
hazardous materials, the legal owner shall pay the licensed
repossessing agency a disposal or recycling surcharge fee plus
such additional fees as are charged pursuant to federal,
State, or local law, ordinance, regulation, or rule for the
disposal of the relevant hazardous material or materials. The
first surcharge fee shall be $50. On January 15, 2025 and each
year thereafter, the Commission shall adjust and publish a new
surcharge fee, calculated according to the previous year's
Consumer Price Index for All Urban Consumers, published by the
Bureau of Labor Statistics of the federal Department of Labor.
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

SB1500 - 13 - LRB103 29695 AMQ 56099 b
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.)