There is a newer version of the Illinois Compiled Statutes
2005 Illinois Code - Chapter 240 Warehouses 240 ILCS 10/ Personal Property Storage Act.
(240 ILCS 10/0.01) (from Ch. 111 2/3, par. 118.9)
Sec. 0.01.
Short title.
This Act may be cited as the
Personal Property Storage Act.
(Source: P.A. 86‑1324.)
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(240 ILCS 10/1) (from Ch. 111 2/3, par. 119)
Sec. 1.
No person shall operate a warehouse or engage in the business
of storing personal property for a compensation, or hold himself out as
being in the storage or warehouse business, or as offering storage or
warehouse facilities, or advertise for, solicit or accept personal
property for storage, without a license issued by the Illinois
Department of Agriculture, except that licenses issued under this Act by
the Illinois Commerce Commission prior to May 4, 1967 shall remain valid
for all purposes unless such license is terminated, surrendered or
revoked as provided in this Act. Recognized fair associations shall be
licensed as set forth under the special provisions of Section 1.1. No
person shall receive, hold, store or deliver any alcoholic liquors
without a certificate of registration from the Department of Revenue in
accordance with Article VII A of "An Act relating to alcoholic liquors",
approved January 31, 1934, as heretofore and hereafter amended. The
certificate of registration required by the Department of Revenue is in
addition to the license required under this Act. This Act does not apply
to warehouses licensed under "An Act to regulate refrigerated warehouses
in the handling and storage of certain articles of food, and to repeal
an Act therein named", approved May 25, 1955, as now or hereafter
amended; public warehouses storing grain; garages customarily housing
automobiles for in and out storage; storage of personal property in
safety deposit vaults or boxes, lock boxes, and check rooms where
personal effects, parcels and the like are received for temporary
custody; and to the storage of personal property while it is being held
in storage for scientific care for repairs or alterations, or is in the
process of repair or alteration, or which is incidental to the business
of manufacturing, selling, repairing, altering, cleaning, or glazing of
furs or of any other garment or article of which fur forms any part
thereof.
(Source: P.A. 81‑158.)
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(240 ILCS 10/1.1) (from Ch. 111 2/3, par. 119.1)
Sec. 1.1.
Governmental fairs as set forth under the Agricultural Fairs
Act and the Illinois State Fair which store
personal property for compensation or hold themselves out as offering storage
or storage facilities for personal property shall be licensed under a limited
special governmental fairs license. This special license shall be issued
for personal property other than goods, wares, household goods, furniture
and merchandise and shall be of the type of personal property as set forth by regulation
of the Department. Personal property stored by these licensees shall be
primarily boats, farm machinery and other similar tangible personal property
as authorized by regulation of the Department. Each licensee shall have
a signed contract with each depositor on forms as prescribed by the Department
and shall also comply with Section 10. If such licensee does not have a
bond or legal liability policy as set forth in Section 6, then the receipt
shall have stamped across its face in bold type "Not Insured." If a licensee
under this Section complies with the requirements of Section 6, the licensee
shall provide to the Department evidence of such compliance as required
in Section 6 of this Act. A governmental fairs licensee shall comply with
all other requirements of this Act.
(Source: P.A. 81‑158.)
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(240 ILCS 10/2) (from Ch. 111 2/3, par. 120)
Sec. 2.
Definitions.
When used in this Act:
The term "warehouse" means any room, house, structure, building, place,
yard or protected enclosure where personal property belonging to another is
stored for a compensation.
The term "personal property" means all goods, wares, household goods,
furniture, merchandise, or any other tangible personal property, of
whatever kind, except that "grain" as defined in "The Public Grain
Warehouse and Warehouse Receipts Act" is not included.
The term "Department" means the Illinois Department of Agriculture.
The term "operator", "warehouseman", or "personal property
warehouseman" means any person, firm,
partnership, association, or corporation owning, controlling, operating,
managing or leasing any room, house, structure, building, place, yard or
protected enclosure in or on which personal property is stored for a
compensation within this State.
The term "person" means any individual, firm, partnership, association
or corporation.
The term "depositor" means any person, who, for himself or another,
delivers or causes to be delivered for storage any personal property in and
to a warehouse.
The term "for a compensation" means direct or indirect charge for
storage.
The term "lot" means the unit or units of property for which a separate
account is kept by the warehouseman.
The term "storage" means the safe keeping of personal property in a
warehouse.
The term "engaged in the business of storing personal property" means
any person who holds himself out, by any means whatever, as accepting, or
willing to accept, personal property for storage.
The term "receipt" means a warehouse receipt issued in conformity with
the "Uniform Commercial Code", as heretofore and hereafter amended.
The term "warehouse representative" or "warehouse broker" means any
person who, independently and not as a salaried agent of a duly licensed
warehouseman, for a consideration, solicits, sells or otherwise attempts to
procure deposits of personal property in personal property warehouses.
(Source: P.A. 83‑1065.)
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(240 ILCS 10/3) (from Ch. 111 2/3, par. 121)
Sec. 3.
Basis
of storage.
All property shall be stored on a month to month basis unless otherwise
provided in the receipt issued therefor.
All rules and regulations made by an operator affecting or pertaining to
storage shall be just and reasonable.
No operator shall merge storage charges into transfer or other charges.
Such operator shall render to the person or persons storing the property, a
statement or bill listing storage charges separately, upon request.
(Source: Laws 1935, p. 1121.)
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(240 ILCS 10/4) (from Ch. 111 2/3, par. 122)
Sec. 4.
Applications.
No person shall engage in business as a personal property warehouseman
in the State of Illinois without a license therefor issued by the Department.
The application for a license to engage in business
as a personal property warehouseman shall be filed with the Department.
Such application shall set forth the name of the applicant, the principal
officers if the applicant is a corporation or the active members of a
partnership if the applicant is a partnership, the location of the principal
office or place of business of the applicant and the location or locations
in this State at which the applicant proposes to engage in business as a
personal property warehouseman, and such additional information as the Department,
by regulation, may require. The application shall also set forth the
location, character, and description of the building or place of the
proposed warehouse, the kind of property, goods, ware, and merchandise
expected to be stored therein, and the approximate number of square feet of
floor space, or, if applicable, the total cubic capacity devoted to storage
purposes. The Department shall require information
showing that the
property to be used is reasonably suitable for warehouse purposes, that the
applicant is qualified to conduct the business of storing personal property
under this Act, and the applicant proposes to conduct the business in
accordance with the laws of this State and the rules and regulations of the
Department.
(Source: P.A. 83‑1065.)
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(240 ILCS 10/5) (from Ch. 111 2/3, par. 123)
Sec. 5.
Inspections.
Upon the filing of an application, the Department shall cause an
inspection to be made of the warehouse described in the application.
Additional inspections of any warehouse may be made from time to time as
the Department deems necessary, in order to effectuate the purposes of this
Act.
Such inspection or inspections may include not only the building or
premises used for storage purposes but the arrangement of the goods stored,
nature of goods stored, safety of the building, accessibility to goods
stored, precaution against fire hazards; whether fire extinguishers, fire
apparatus, or hose are in good condition; whether all lots for which
warehouse receipts have been issued are in storage; and any other things
necessary to determine whether the warehouse is being operated in
compliance with this Act. The inspector shall have the right to enter the
property of any warehouseman at any reasonable time, for the purpose of
making an inspection or performing any duties in connection with this Act.
If the inspection of any warehouse discloses a hazardous condition or
conditions, the operator shall, upon written notice from the Department,
take proper and immediate steps to correct the condition or conditions.
Failure to comply with the notice shall be grounds for rejecting an
application or for revoking a license.
(Source: P.A. 83‑1065.)
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(240 ILCS 10/6) (from Ch. 111 2/3, par. 124)
Sec. 6.
Bond or legal liability insurance policy.
Prior to the issuance of a license, the personal property warehouseman
shall file with the
Department a surety bond, or legal liability insurance policy on a
form prescribed by the Department, signed by the warehouseman as principal
and by a responsible company authorized to execute surety bonds within the
State of Illinois. The bond
shall contain provisions for faithful performance by the applicant of
his duties as a warehouseman in accordance with this Act, the rules and
regulations thereof, and the "Uniform Commercial Code", as now or
hereafter amended. Such bond shall also contain provisions for the
payment of any loss or damage sustained by any depositor of property
stored.
The amount of such bond is determined upon the following basis:
For less than 20,000 net square feet of floor space or for less than
50,000 net cubic feet of volume devoted to the storage of personal
property, $5,000;
For 20,000 and less than 50,000 net square feet of floor space or for
50,000 and less than 100,000 net cubic feet of volume devoted to the
storage of personal property, $10,000;
For 50,000 and less than 100,000 net square feet of floor space or
for 100,000 and less than 200,000 net cubic feet of volume devoted to
the storage of personal property, $15,000;
For 100,000 and less than 200,000 net square feet of floor space or
for 200,000 and less than 300,000 net cubic feet of volume devoted to
the storage of personal property, $20,000;
For 200,000 and less than 300,000 net square feet of floor space or
for 300,000 and less than 400,000 net cubic feet of volume devoted to
the storage of personal property, $25,000; and
For 300,000 or more net square feet of floor space or for 400,000 or
more net cubic feet of volume devoted to the storage of personal
property, $25,000 plus an additional $5,000 for each additional 100,000
net square feet, or net cubic feet of volume, or fraction thereof.
Such bond is to be made payable to the People of the State of
Illinois, for the use and benefit of all persons aggrieved by the
failure of the operator to comply with this Act, and shall not be
cancelled during the period for which any license is issued, except upon
at least 90 days' notice, in writing, to the Department.
If bond other than a surety bond is filed, it must be secured by real
estate having a value of not less than double the amount of such bond
over and above all exemptions and liens thereon. Such bond shall be
recorded and be a lien on the real estate for the amount thereof, and
the recording fees paid by the applicant or operator.
Any operator may, in lieu of a bond, file with the Department a
certified copy of a legal liability insurance policy or a certificate
of deposit. The principal
amount of the legal liability insurance policy and the certificate of deposit
shall be the same as that required for a surety bond under this Act. Any
certificate of deposit filed with the Department, in lieu of a surety bond,
shall be payable to the Director of the Department as Trustee and the interest
thereon shall be made payable to the purchaser thereof.
The legal liability insurance policy shall contain a loss payable endorsement
making such policy payable to the People of the State of Illinois, with
the Director of the Department as Trustee. The legal liability insurance
policy shall not
be cancelled during the period for which any license is issued, except
upon at least 90 days' notice in writing to the Department. When in the
discretion of the Department, the legal liability insurance policy or the assets
of a warehouseman appear to be insufficient, when compared to his
storage obligations or to meet the bond requirements of the United
States, or any agency or corporation controlled by the United States
when they have a contract for storage with the warehouseman, or for any
other reason it may appear necessary to the Department, the Department
may require such additional bond or legal liability insurance policy as may be
reasonable in the circumstances.
The Director of Agriculture as trustee of the bond or policy shall have
the authorities granted him in Section 205‑410 of the
Department
of Agriculture Law (20 ILCS 205/205‑410) and the rules and regulations adopted pursuant thereto.
Failure to keep such bond or insurance policy in effect is cause for
the revocation of any license.
(Source: P.A. 91‑239, eff. 1‑1‑00.)
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(240 ILCS 10/7) (from Ch. 111 2/3, par. 125)
Sec. 7.
Fees.
Each applicant shall accompany his application for a
personal property warehouse license with and thereafter pay to the
Department an initial
fee of $250 and an annual renewal fee of $150, plus an annual fee of
$100 for each additional personal property warehouse operated by the
applicant to keep and perpetuate the license. The special governmental
fairs annual license fee shall be $50.
(Source: P.A. 85‑528.)
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(240 ILCS 10/8) (from Ch. 111 2/3, par. 126)
Sec. 8.
Issuance and period of license.
Upon compliance with this Act by the applicant, the Department shall
issue a license or licenses to such applicant which is valid for one year
from the date of its issuance unless said license is suspended or revoked
after due process in accordance with this Act.
(Source: P.A. 83‑1065.)
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(240 ILCS 10/9) (from Ch. 111 2/3, par. 127)
Sec. 9.
The provisions of the "Uniform Commercial Code", enacted by the
Seventy‑second General Assembly, shall remain in full force and effect in
respect to warehouses, warehousemen, personal property, persons, depositors
and receipts coming within the purview of this Act.
(Source: Laws 1961, p. 2307.)
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(240 ILCS 10/10) (from Ch. 111 2/3, par. 128)
Sec. 10.
Warehouse Receipts.
Every operator shall, upon the receipt of personal property
for storage, issue and deliver to the depositor a negotiable or a
non‑negotiable
warehouse receipt.
Negotiable warehouse receipt forms, complying in every respect with
subsection
(2) of Section 7‑202 of the "Uniform Commercial Code", approved July 31,
1961, as amended, must be printed in a form prescribed by the Department,
and prenumbered by a bonded printer. Negotiable warehouse receipt forms
must be kept under lock and key at the office of the warehouse operator.
A register must be kept of each negotiable warehouse receipt issued.
Endorsements
shall be made on the negotiable warehouse receipt of any partial deliveries
of goods covered by such receipt. Delivery of goods covered by a negotiable
warehouse receipt without surrender of such negotiable warehouse receipt
shall be prohibited.
Non‑negotiable warehouse receipts shall conform with subsection (2) of
Section 7‑202 of the "Uniform Commercial Code", approved
July 31, 1961, as amended.
The property of each depositor shall be specifically designated under a
lot, product code, batch, or other control unit agreed upon by the warehouseman
and depositor. Said designation shall also
appear on the receipt for the purpose
of identification, and a separate account and record shall be kept for each
customer's property.
No operator shall issue any receipt unless the same shall state on the
face thereof in conspicuous type whether or not such goods are insured for
the benefit of the depositor against fire or any other casualty.
(Source: P.A. 83‑1065.)
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(240 ILCS 10/11) (from Ch. 111 2/3, par. 129)
Sec. 11.
Signs.
Every operator licensed under this Act shall, at all times, keep a sign
posted in a conspicuous place over the main entrance to each warehouse,
which sign shall clearly state the name of the person, firm, partnership,
association or corporation operating said warehouse, and a statement that
such warehouse is licensed and the number of such license; and each
operator shall also display a like sign in a conspicuous place on all motor
vans, trucks or other vehicles used by the operator to transport personal
property to and from such warehouses.
(Source: P. A. 77‑1341.)
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(240 ILCS 10/12) (from Ch. 111 2/3, par. 130)
Sec. 12.
Advertisements.
It is unlawful for any person, firm, partnership, association or
corporation to hold himself, themselves, or itself out as a warehouseman or
advertise for, or solicit business as a warehouseman without first
complying with this Act; or advertising as being an insured warehouse
unless the insurance is for the benefit of the depositor against fire or
other casualties; or to use any stationery, cards, signs or other
advertisements of a false, fraudulent, deceptive or misleading nature; or
use the word storage, in any way, in connection with the business unless
engaged in the storage business and licensed as a warehouse operator under
this Act.
A personal property warehouseman has authority to use the services of
warehouse representatives or warehouse brokers in Illinois provided the
names and addresses of such warehouse representatives or warehouse brokers
are listed on the license application of the personal property
warehouseman.
No person shall set himself out to be a warehouse representative or a
warehouse broker, or do business as such, without first being so listed by
a duly licensed warehouseman. A warehouseman may, by giving written notice
in duplicate to the Department, amend his license application at any time
to add or delete the name or names of warehouse representatives or
warehouse brokers retained by him.
(Source: P. A. 77‑1341.)
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(240 ILCS 10/13) (from Ch. 111 2/3, par. 131)
Sec. 13.
Care
required.
Every operator shall use reasonable care and diligence to protect
property stored from loss or damage by fire, theft, burglary or other
similar causes, and keep and maintain suitable premises for such storage
purposes.
(Source: Laws 1935, p. 1121.)
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(240 ILCS 10/14) (from Ch. 111 2/3, par. 132)
Sec. 14.
Authority of inspectors‑Police power.
Inspectors of the Department have full power and authority in the
performance of their official duties to enter into or upon any place,
building or premises of any warehouse at any reasonable time for the
purpose of inspecting such warehouse operating under this Act, and the
books and records of the operator thereof, or for the purpose of obtaining
any information pertaining to the manner in which such warehouse business
is being conducted. Any such inspector has the same powers as are now held
by or hereafter conferred upon, any regular law enforcement officer to
arrest, with or without formal warrant, any violator or violators of this
Act.
(Source: Laws 1967, p. 451.)
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(240 ILCS 10/15) (from Ch. 111 2/3, par. 133)
Sec. 15.
Interference with or impersonation of inspector.
No person shall in any way or manner obstruct, hinder or molest any
warehouse inspector in the performance of his duties as required by this
Act. It is unlawful for any person to falsely represent that he is a
warehouse inspector or to falsely represent that he is authorized to
inspect warehouses on behalf of the Department, or to demand of any
operator the examination or production of the records of such operator
unless he is a duly authorized inspector of the Department.
(Source: Laws 1967, p. 451.)
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(240 ILCS 10/16) (from Ch. 111 2/3, par. 134)
Sec. 16.
Rules
and regulations.
The Department has the authority to exercise general supervision and
regulation over all warehouses included under this Act, and has authority
to make all necessary rules and regulations, and adopt forms of
application, bond, receipt, and such other forms as may be required to
effectuate the purposes of this Act.
(Source: Laws 1967, p. 451.)
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(240 ILCS 10/17) (from Ch. 111 2/3, par. 135)
Sec. 17.
Violations, Administrative Action and Review.
Violations of
this Act shall be classified as follows:
(a) Category I Violations, which include:
(i) Technical violations causing no harm to persons or property.
(ii) Prior practices or conditions that have been
voluntarily remedied.
Category I
violations shall be handled by a warning notice issued by the Department
to the warehouseman stating that such practices shall not be allowed
to recur. Receipt of such notice shall be acknowledged by the warehouseman.
(b) Category II Violations, which include:
(i) Practices or conditions that if continued could cause significant
loss to depositors.
(ii) Practices or conditions that if continued could cause serious hazard
to public health or safety.
(iii) Operating a personal property warehouse without a license.
The Department
may, upon its own motion and shall upon the verified complaint in writing
of any person setting forth facts which if proved would constitute a Category
II violation, investigate the actions of any person or persons operating
a personal property warehouse. The Department shall issue a formal notice
to the warehouse operator that he is required to take proper and immediate
steps to correct the practices or conditions, and that failure to do so
could be cause for revocation of license and other legal penalties as provided
in this Act. The warehouse operator shall, if he believes that the complaint
is improper, unjust, or unfounded, request a hearing which
shall be set up in conformance with established practice for administrative
hearings. If the warehouse operator fails to correct the alleged practices
or conditions, or fails to request a hearing within a stipulated time, his
license shall be revoked. The Department may also seek appropriate judicial
action. In the case of practices or conditions that constitute serious
hazard to public health or safety, the Department shall cooperate with the
appropriate federal, state, and local agencies or authorities.
(c) Category III Violations, which include:
(i) Conversion of a depositor's goods to the warehouseman's own use.
(ii) Practices or conditions that have caused significant loss or damage
to depositors.
The Department may, upon its own motion and shall upon the verified complaint
in writing of any person setting forth facts which if proved would constitute
a Category III violation, investigate the actions of any person or persons
operating a personal property warehouse. The Department shall issue a formal
notice to the warehouse operator that he is required
to take proper and immediate steps to correct the practices or conditions,
and that failure to do so will be cause for revocation of license and additional
legal penalties as provided in this Act. The warehouse operator shall,
if he believes that the alleged violation is unfounded, request a hearing
which shall be set up in conformance with established practice for administrative
hearings.
In connection with any investigation or hearing conducted by the Department
under this Act, the Department, over the signature of the Director, is authorized
to issue subpoenas and to bring before the Department any person or persons
in this State and to take testimony either orally or by deposition or by
exhibit. The Director is authorized to issue subpoenas for any or all documents
relating to complainant records. The Director or his designee may administer
oaths to witnesses at any hearing which the Department is authorized by
law to conduct.
The Illinois Administrative Procedure Act, as amended, and the rules
and regulations adopted thereunder shall apply to and govern all administrative
actions taken by the Department, where applicable, unless otherwise prescribed
by this Act. Judicial review of final administrative decisions may be had
in accordance with the provisions of the Administrative Review Law, as now
or hereafter amended.
(Source: P.A. 83‑1065.)
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(240 ILCS 10/18) (from Ch. 111 2/3, par. 136)
Sec. 18.
Operator must keep records.
All operators included in this Act shall keep or cause to be kept a
record showing all personal property stored, the name of the person
depositing same for storage, all warehouse receipts issued, or cancelled,
and any other information necessary to the proper conduct of such business
in accordance with this Act. All records shall be kept on file and intact
for one year from the closing of any storage transaction.
(Source: Laws 1935, p. 1121.)
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(240 ILCS 10/19) (from Ch. 111 2/3, par. 137)
Sec. 19.
Penalty.
Any person who engages in business as a personal property warehouseman
without securing a license or who does not have a valid license, or who
commits one or more Category II or Category III violations of
this Act, or who shall impede, obstruct, hinder or otherwise prevent
or attempt to prevent the Director or his duly authorized agent in the performance
of his duty in connection with this Act, or who refuses to permit
inspection of his premises or records as provided in this Act shall be guilty
of a Class B misdemeanor for the first violation, and be guilty of a Class
A misdemeanor for each subsequent violation. In case of a continuing
violation or violations, each day
that each violation occurs
constitutes a separate and distinct offense.
It shall be the duty of each State's Attorney to whom any violation is
reported to cause appropriate proceedings to be instituted and prosecuted
in the circuit court without delay, provided that the Director has previously
given the warehouseman involved an administrative hearing as provided for in this Act.
The Director may apply for and the circuit court may grant a temporary
restraining order or preliminary or permanent injunction restraining any
person from committing or continuing to commit a Category II or III violation.
(Source: P.A. 83‑1065.)
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(240 ILCS 10/20) (from Ch. 111 2/3, par. 138)
Sec. 20.
Power
to enforce.
The Department has full power and authority to carry out this Act.
(Source: Laws 1967, p. 451.)
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(240 ILCS 10/21) (from Ch. 111 2/3, par. 139)
Sec. 21.
Constitutionality of act.
If any provision, section, sub‑section, sub‑division, sentence, clause,
or phrase of this Act shall for any reason be adjudged or declared by any
court of competent jurisdiction to be unconstitutional or invalid, such
judgment or decision shall not affect the validity of the remaining
portions of this Act, but shall be confined in its operation to the
provision, section, sub‑section, sub‑division, sentence, clause or phrase
which shall have been adjudged or declared to be unconstitutional or
invalid in such judgment or decision; and it is hereby expressly declared
that every other provision, section, sub‑section, sub‑division, sentence,
clause or phrase hereof would have been enacted irrespective of the
enactment or validity of the portion thereof declared or adjudged to be
unconstitutional or invalid.
(Source: Laws 1935, p. 1121.)
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(240 ILCS 10/22) (from Ch. 111 2/3, par. 140)
Sec. 22.
Repeal.
"An Act to regulate business of storing personal property for hire",
approved June 28, 1921, in force July 1, 1921, as amended, is hereby
repealed.
(Source: Laws 1935, p. 1121.)
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