Illinois General Assembly - Full Text of SB2521
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Full Text of SB2521  100th General Assembly

SB2521sam001 100TH GENERAL ASSEMBLY

Sen. Steve Stadelman

Filed: 4/20/2018

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2521

2    AMENDMENT NO. ______. Amend Senate Bill 2521 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Consumer Fraud and Deceptive Business
5Practices Act is amended by adding Section 2VVV as follows:
 
6    (815 ILCS 505/2VVV new)
7    Sec. 2VVV. Use of starter interrupt technology.
8    (a) As used in this Section:
9    "Car rental company" means any company that rents
10automobiles for a period of time.
11    "Creditor" means a person that engages in the business of
12financing the purchase or lease of motor vehicles for personal
13use or lending money secured by those motor vehicles, including
14any person servicing such transactions.
15    "Dealer" means a motor vehicle dealer as defined in Chapter
165 of the Illinois Vehicle Code.

 

 

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1    "Electronic tracking technology" means global positioning
2satellite or similar technology used to obtain or record the
3location of a motor vehicle.
4    "Motor vehicle" or "vehicle" means a motor vehicle as
5defined in Chapter 5 of the Illinois Vehicle Code.
6    "Optional services" means services that are optional and
7separate from the retail purchase or lease of a motor vehicle
8or extension of credit, are not a condition of or incident to
9the transaction or extension of credit, and may be canceled at
10any time.
11    "Payment cycle" means a 30-day payment period.
12    "Person" means a natural person, partnership, corporation,
13limited liability company, trust, estate, cooperative,
14association, or other similar entity.
15    "Starter interrupt technology" means technology used to
16remotely disable the starter of a motor vehicle.
17    "Transaction" means any credit sale, loan, or lease of a
18motor vehicle made to a consumer by a dealer, car rental
19company, or other creditor. "Transaction" includes any post
20default redemption and reinstatement of the credit sale, loan,
21or lease by the consumer.
22    (b) Any credit sale, loan, or lease of a motor vehicle made
23after the effective date of this amendatory Act of the 100th
24General Assembly to a consumer by a dealer, car rental company,
25or other creditor is made subject to this Section. In
26connection with the credit sale, loan, or lease of a motor

 

 

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1vehicle to a consumer, a dealer, car rental company, or other
2creditor shall not use electronic tracking technology or
3starter interrupt technology unless it is used solely to verify
4and maintain the operational status of the tracking technology,
5to locate for repossession, to repossess the vehicle, or to
6locate the vehicle to service the account or keep the account
7current and the following conditions are met:
8        (1) The dealer, car rental company, or other creditor
9    clearly and conspicuously notifies the consumer at the time
10    of the transaction that the vehicle is equipped with
11    electronic tracking technology or starter interrupt
12    technology and the technology may be used by the dealer,
13    car rental company, or creditor to locate or disable the
14    starter of the vehicle remotely.
15        (2) The dealer, car rental company, or other creditor
16    obtains written consent from the consumer that the vehicle
17    is equipped with electronic tracking technology or starter
18    interrupt technology and that the dealer, car rental
19    company, or other creditor may use the electronic tracking
20    technology or starter interrupt technology to locate or
21    disable the starter of the vehicle remotely.
22        (3) The dealer, car rental company, or creditor must
23    provide notice to the consumer upon default within the time
24    periods established in subsection (c).
25        (4) The dealer or creditor may not use starter
26    interrupt technology if the consumer tenders the amount

 

 

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1    currently due on the loan to the dealer in an acceptable
2    form of payment before the due date on the payment contract
3    or provides proof of insurance as required under the
4    contract.
5        (5) The dealer, car rental company, or creditor shall
6    not use starter interrupt technology to locate or disable
7    the vehicle for any reason other than the consumer's
8    failure to tender timely payment or for failure to maintain
9    insurance as required under the contract.
10        (6) The dealer, car rental company, or creditor shall
11    not install or utilize any starter interrupt technology
12    that would disable a vehicle after the vehicle's engine has
13    been enabled and is running.
14        (7) The dealer, car rental company, or creditor shall
15    not separately charge the consumer for the installation or
16    use of the starter interrupt technology or electronic
17    tracking technology or for wireless airtime.
18        (8) The dealer, car rental company, or creditor shall
19    not separately charge the consumer for optional services
20    purchased by the consumer. However, the consumer may waive
21    this prohibition by clearly and conspicuously agreeing in a
22    written disclosure to pay for the installation or use of
23    the electronic tracking device for optional services.
24        (9) The dealer, car rental company, or creditor shall
25    not use electronic tracking technology or starter
26    interrupt technology with a non-English speaking consumer

 

 

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1    unless the dealer, car rental company, creditor, person, or
2    company operating the electronic tracking technology or
3    starter interrupt technology complies with Section 2N of
4    this Act.
5        (10) The dealer or creditor shall provide the consumer
6    the ability to start a disabled vehicle for 24 hours after
7    the vehicle is initially disabled at least once per payment
8    cycle if the vehicle was disabled because the consumer
9    failed to tender timely payment or failed to maintain
10    insurance as required under the contract. Separate
11    instructions on how to restart a disabled vehicle must be
12    provided to consumer in a format that can be kept in the
13    glove compartment of the vehicle in addition to the
14    disclosures under this subsection. At a minimum, the dealer
15    or creditor must provide the consumer with a toll free
16    phone number to call to restart a disabled vehicle for 24
17    hours after the vehicle is initially disabled at least once
18    per payment cycle if the vehicle was disabled because the
19    consumer failed to tender timely payment or failed to
20    maintain insurance as required under the contract.
21    However, the one-time per payment cycle limitation does not
22    apply if the vehicle was disabled due to mistake,
23    malfunction or other event not attributable to the
24    consumer.
25    (c) A clear and conspicuous written disclosure shall be a
26separate document in 12-point bold font and shall disclose all

 

 

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1of the following:
2        (1) Describe the electronic tracking and starter
3    interrupt devices installed on the vehicle and the data
4    that will be collected and stored.
5        (2) Inform the consumer that use of an electronic
6    tracking or starter interrupt device will allow a dealer,
7    car rental company, or creditor to track a vehicle's
8    location.
9        (3) Inform the consumer that warnings will be provided
10    no less than 48 hours before the vehicle is disabled
11    remotely. The warning must be transmitted through at least
12    2 modes of communication, such as e-mail, mail, telephone,
13    text message, or through the device itself.
14        (4) Inform the consumer that the dealer, car rental
15    company, or other creditor will locate or disable a vehicle
16    using electronic tracking or starter interrupt technology
17    following failure to tender timely payment or for failure
18    to maintain insurance as required under the contract.
19        (5) Include the name, address, email address, and
20    telephone number of the person or company operating the
21    electronic tracking or starter interrupt device.
22        (6) Include, if known, the name, address, email
23    address, and telephone number of the creditor associated
24    with the person or company operating the electronic
25    tracking or starter interrupt device. If not known at the
26    time of the contract, the dealer or car rental company must

 

 

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1    notify the consumer within 7 business days of the contract
2    the creditor's name, address, email address, and telephone
3    number.
4        (7) Provide that, in the event of an emergency, the
5    consumer will be provided with the ability to start a
6    disabled vehicle for 24 hours after the vehicle is
7    initially disabled and the number of times during the
8    payment cycle the restarting may occur. Separate
9    instructions on how to restart a disabled vehicle must be
10    provided to the consumer in a format that can be kept in
11    the glove compartment of the vehicle in addition to the
12    disclosures under this subsection. At a minimum, the
13    dealer, car rental company, or creditor must provide the
14    consumer with a toll free phone number to call to restart a
15    disabled vehicle for 24 hours after the vehicle is
16    initially disabled at least once per payment cycle if the
17    vehicle was disabled because the consumer failed to tender
18    timely payment or failed to maintain insurance as required
19    under the contract. However, the one-time per payment cycle
20    limitation does not apply if the vehicle was disabled due
21    to a mistake, malfunction, or other event not attributable
22    to the consumer.
23    (d) A dealer, car rental company, or other creditor is not
24in violation of this Section if law enforcement instructs the
25dealer, car rental company, or other creditor to use the
26electronic tracking or starter interrupt technology for a

 

 

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1lawful criminal investigation.
2    (e) A consumer damaged by a violation of this Section by a
3dealer, car rental company, or other creditor is entitled to
4recover from the violator actual damages and reasonable
5attorney's fees and court costs. Nothing in this Section limits
6a consumer's cause of action against any party if the consumer
7is damaged by a malfunction of the electronic tracking or
8starter interrupt technology.
9    (f) The electronic tracking technology or starter
10interrupt technology identified in this Section may only be
11used, applied, or associated with a credit sale, loan, or lease
12of a motor vehicle.
13    (g) If a dealer, car rental company, or creditor uses
14starter interrupt technology to disable a vehicle, the dealer,
15car rental company, or creditor is responsible for all
16liabilities associated with the vehicle from the time of the
17use of starter interrupt technology to disable a vehicle. If
18the consumer cures the default, the consumer shall have a
19reasonable opportunity to retrieve the vehicle before again
20becoming responsible for all liabilities. If a consumer cures
21the default before the creditor takes physical possession of
22the vehicle, this will not invoke the consumer's right to
23reinstatement pursuant to Article 9 of the Uniform Commercial
24Code. A consumer must be in default for a minimum of 5 days
25before the process can begin.
26    (h) Privacy, storage, and destruction of data obtained by

 

 

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1manufacturers of electronic tracking technology or starter
2interrupt technology.
3        (1) A manufacturer of an electronic tracking
4    technology or starter interrupt technology, or an
5    authorized recipient of such data, shall implement and
6    maintain reasonable security measures to protect the data
7    associated with a motor vehicle's electronic tracking
8    technology or starter interrupt technology from
9    unauthorized access, acquisition, destruction, use,
10    modification, or disclosure.
11        (2) A manufacturer of electronic tracking technology
12    or starter interrupt technology or an authorized recipient
13    of such data, shall destroy, utilizing the following
14    procedures, all data associated with a motor vehicle's
15    electronic tracking technology or starter interrupt
16    technology. Destruction shall occur no later than 2 years
17    after the termination of the device or termination of the
18    optional services as permitted under item (8) of subsection
19    (b).
20            (A) Paper documents containing data associated
21        with a motor vehicle's electronic tracking technology
22        or starter interrupt technology shall be either
23        permanently redacted, burned, pulverized, or shredded
24        so that all data associated with the motor vehicle's
25        electronic tracking technology or starter interrupt
26        technology cannot practicably be read or

 

 

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1        reconstructed.
2            (B) Electronic media and other non-paper media
3        containing data associated with a motor vehicle's
4        electronic tracking technology or starter interrupt
5        technology shall be destroyed or erased so that all
6        data associated with the motor vehicle's electronic
7        tracking technology or starter interrupt technology
8        cannot practicably be read or reconstructed.
9        (3) A manufacturer of electronic tracking technology
10    or starter interrupt technology, its affiliates,
11    subsidiaries, agents, directors, successors and assigns,
12    officers and employees, as well as any recipient of
13    electronic tracking or starter interrupt device data, are
14    prohibited from selling any of the data associated with a
15    motor vehicle's electronic tracking technology or starter
16    interrupt technology except as necessary for the provision
17    of optional services as permitted under item (8) of
18    subsection (b), or, data aggregated in such a manner that
19    only non-identifying information can be obtained.
20    (i) A consumer's attempt to intentionally disable the
21device shall be deemed a default and the consumer shall not be
22granted the normal opportunity to restart the vehicle for 24
23hours after the default.
24    (j) It is an unlawful practice within the meaning of this
25Act for a dealer, car rental company, or creditor to fail to
26remove electronic tracking technology or starter interrupt

 

 

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1technology in any of the following situations:
2        (1) Within 5 days after a consumer has fulfilled the
3    credit obligations associated with the credit sale, loan,
4    or lease of the motor vehicle purchase.
5        (2) Within 7 days after disabling the vehicle using
6    electronic tracking technology or starter interrupt
7    technology.
8        (3) Prior to sale or resale of a motor vehicle
9    originally equipped with electronic tracking technology or
10    starter interrupt technology to any seller, including but
11    not limited to, another consumer or dealer.
12    (k) It is an unlawful practice within the meaning of this
13Act for a dealer, car rental company, or creditor to use or
14activate starter interrupt technology prior to a consumer
15defaulting for non-payment or failure to maintain insurance. In
16the event that a consumer cures the default, redeems or
17reinstates the vehicle, the dealer, car rental company, or
18creditor shall, within 24 hours of redemption or reinstatement,
19provide the consumer with the ability to restart the vehicle
20and cease using electronic tracking technology or starter
21interrupt technology. A dealer, car rental company, or creditor
22continues to have the ability to use or activate electronic
23tracking technology or starter interrupt technology if a
24consumer subsequently defaults on a credit sale, loan, or lease
25of a motor vehicle.".