LEGISLATIVE UPDATES
LEGAL UPDATES - SUMMER 2024
Illinois Governor J.B. Pritzker signed Senate Bill 3460 into law on August 9, and it takes effect on January 1. It makes changes and updates to electronic delivery of rental agreements, addresses unsigned rental agreements, towing, and nonmonetary defaults.
Illinois Lien Bill Passes Both Chambers; Awaits Action from Governor
Senate Bill 3460 has been approved by both the Illinois House of Representatives and the Senate. It is now sitting on Governor J.B. Pritzker’s desk awaiting further action. If signed into law, it would make the following changes.
Electronic delivery. As technology has evolved, many storage operators have shifted some of their business practices to reflect current realities. One such change is the shift to electronic delivery of rental agreements. This year the SSA was able to get legislative approval that confirms that self storage rental agreements may be delivered and accepted electronically in Illinois. This is settled law, but it is not completely clear in the various self-service storage facility acts. This amendment confirms its already existing application to storage rental agreements. If the bill is signed into law, the rental agreement may be delivered and accepted by electronic mail, or by any other electronic record pursuant to the Uniform Electronic Transactions Act.
Unsigned rental agreement. Things happen. Maybe there was a law change, or you hired an attorney to update your rental agreement. Armed with your new agreement, you send a notice to your tenants to sign it. Most do, but what about the rest that prove difficult to track down? Many owners will have a provision in their rental agreement that states:
CHANGE OF TERMS: ALL TERMS OF THIS RENTAL AGREEMENT, INCLUDING RENTS, DEPOSITS AND CONDITIONS OF OCCUPANCY MAY BE CHANGED BY OWNER UPON THIRTY (30) DAYS’ PRIOR WRITTEN NOTICE TO OCCUPANT. If changed, the Occupant may terminate this Rental Agreement on the effective date of the change by giving Owner ten (10) days’ prior written notice of termination after receiving notice of the change. If the Occupant does not give such notice of termination, the change shall become effective on the date stated in the Owner’s notice and shall thereafter apply to this occupancy, whether or not Occupant has agreed to the change in writing.
This is an essential and very helpful provision; however, it may not be enforced by a judge depending on the facts and circumstances of the case. However, this year the SSA was able to get legislative approval that confirms the legal effect of unsigned agreements in Illinois.
If the bill is signed into law, if the occupant does not sign a written rental agreement that the owner has given to the occupant, the occupant’s continued use of the storage space constitutes an acceptance of the rental agreement with the same effect as if it had been signed by the occupant.
Towing. If the bill is signed into law, the 2024 amendments expand the owner’s right to tow trailers, in addition to motor vehicles and watercraft following a default. Additionally, the towing right was expanded to include the right to tow for nonmonetary reasons if the occupant is in default of the rental agreement for 60 days.
If the bill is signed into law, owners will be expressly permitted to tow that property if, for example, the occupant fails to provide insurance documentation, fails to maintain the vehicle in an operable condition, or otherwise violates the terms and conditions of the rental agreement. The conditions for towing based on a non-monetary default should be clearly stated in the rental agreement or parking addendum.
Non - Monitary Default. Storage operators are familiar with the lien remedy. When the occupant stops paying the process starts -- overlocking the unit, sending notices, and finally, if necessary, selling the contents of the unit to partially recoup losses and returning the unit back to inventory. However, this straightforward remedy is only available when the tenant stops paying their rent. What do you do if the tenant is good about paying their rent but, for example, is living in the unit or is using their unit for unlawful operations? The answer has traditionally been you need to hire a lawyer and start the court eviction process. If the bill is signed into law, that is no longer necessary in Illinois.
If the bill is signed into law, the 2024 amendments will prohibit an occupant from using the facility after the owner has delivered written notice in person or by verified mail of the termination or non-renewal of the occupant's rental agreement. The owner may not deliver the notice exclusively by email. The notice must provide the occupant with at least 14 days to remove all the personal property from the facility. Prior to the occupant's removal of all personal property, the owner may place reasonable restrictions on the occupant's use of the self-service storage facility. If the occupant fails to remove the property within the time allotted in the notice, the owner is permitted to dispose of the property.
LEGAL UPDATES - SUMMER 2022
Sexual harassment. The City of Chicago, Illinois recently approved amendments to an ordinance that increases sexual harassment protections for employees and expands employer compliance responsibilities. The ordinance took effect on July 1, 2022 and covers all employers with one or more employees. It requires covered employers to draft and provide a written policy prohibiting sexual harassment, provide training, and display a poster.
The written policy must include:
- A statement that sexual harassment is illegal in Chicago;
- The definition of sexual harassment as defined in Section 6-10-020;
- A requirement that all employees participate in sexual harassment prevention training annually;
- A requirement that employees must participate in a minimum of one hour of sexual harassment prevention training annually;
- A requirement that anyone who supervises or manages employees must participate in a minimum of two hours of sexual harassment prevention training annually;
- A requirement to complete one hour of bystander training annually;
- Examples of prohibited conduct that constitute sexual harassment;
- Details on how an individual can report an allegation of sexual harassment;
- Details on governmental resources available to employees who may be victims of sexual harassment; and,
- A statement that retaliation for reporting sexual harassment is illegal in Chicago.
To assist employers with compliance, the City released this template policy that can be tailored to specific companies. The policy must be provided in an employee’s primary language within the first calendar week of that employee’s employment.
To assist with training obligations, the City provided these training materials.
Finally, employers must conspicuously display this poster in at least one location. The employer must display at least one poster in English and one poster in Spanish.
Violations result in a fine of not less than $500.00 nor more than $1,000.00 for each offense. Every day that a violation continues constitutes a separate offense.
Meal periods. The One Day Rest in Seven Act (“ODRISA”) was amended in 2022 and takes effect January 1, 2023. Once effective, every employer must permit its employees who work for 7 1/2 continuous hours (unless exempt) at least 20 minutes for a meal period beginning no later than 5 hours after the start of the work period. An employee who works more than 7 1/2 continuous hours must be entitled to an additional 20-minute meal period for every additional 4 1/2 continuous hours worked.
The amendments also increase penalties and damages. Further, the bill provides for direct damages to impacted employees. For employers with fewer than 25 employees, the maximum penalty paid to the state is $250 per offense and maximum damages paid to the employee are $250 per offense. The penalties and damages increase to $500 per offense for employers with more than 25 employees. Each day that an employee is not provided a meal period constitutes a separate offense.
Additionally, every employer must display a notice (once available) from the Director of Labor, summarizing the requirements of the ODRISA and providing information for the filing of a complaint. For remote employees, the notice must be sent by email or posted on the employer’s website. Failure to provide notice constitutes as single offense and is subject to a penalty of $250.
Employers, including Illinois storage owners, should review the law carefully and ensure that eligible employees are provided with the meal breaks that comply with the statute.
January 2021
BUILDING CODES UPDATE
Changes to the International Building Code Affect Self Storage
With the support of its Code Committee, the Self Storage Association successfully pursued several key changes to the 2021 International Building Code.
- An exception has been added to IBC Section 2902.3.3 to permit an increase in the location (to greater than every other floor) and maximum distance of travel (to greater than 500 ft) for restrooms. The location and travel distance must be approved by the code official.
- The maximum allowable height of sprinklered facilities made of Type IIB materials (unprotected steel) and Type IIIB materials (noncombustible or fire-retardant-treated wood stud exterior walls and any interior construction) has been increased from 3 stories to 4 stories. The Code continues to have total floor and building square footage limits.
- Pursuant to modified IBC Section 903.2.9, storage facilities are exempt from the automatic sprinkler system requirement if: (1) the total fire area is 12,000 sq. ft. or less; (2) the combined total fire areas are 24,000 sq. ft. or less; (3) the facility is no greater than one story above grade plane; and (4) all storage spaces are accessed directly from the exterior.
These changes go into effect as they are adopted by local and state governments over the next several years. Prior to the adoption on the local and state level, storage developers can request that the code official rely on the 2021 changes as acceptable alternative methods of construction pursuant to section 104.11 of the existing International Building Code.
Please email Joe Doherty with any questions or to receive supporting documentation for these changes.
March 2020 - Statewide Parking Tax Update
Department of Revenue Provides Long-Awaited Response to IL-SSA’s Comments to Parking Tax Regulations
After waiting several months, the Illinois Department of Revenue has responded to IL-SSA’s comments to the parking tax regulations. Below is a brief summary of what we know at this time. We are still awaiting the final regulations but do not expect changes to the following information. We will provide more detailed responses to FAQs in the coming weeks.
- Operators with four or more parking spaces must register with the DOR and collect and remit the tax once the fourth parking space is rented. Operators with three or fewer rented parking spaces are exempt from collecting and remitting the tax.
- The tax must be collected on all payments received on or after January 1, 2020, even if the lease was entered before that date.
- The tax does not apply to payments received in 2019, even if those payments were for vehicle or parking storage that occurred in 2020.
- The tax does not apply to the parking or storage of watercraft or aircraft.
- For vehicles stored in enclosed units, the tax applies only if the operator knows at the time the lease is entered that the unit will be used to park or store a vehicle. In this case, the tax applies to the full rental amount even if the unit contains other property.
- The tax rate is 6% for daily and weekly parking and 9% for monthly and yearly parking. These rates are in addition to any other applicable parking taxes such as those in the City of Chicago and Cook County.
Please email Joe Doherty with any questions.
Click for the proposed regulations and SSA’s comment letter .
May 6, 2019 - Notice to Self Storage Owners In Illinois
STOP Illinois SB1379
On May 9, the Illinois legislature is hearing a bill that, if passed, will harm your business. SB1379 would require you to turn over your facility’s income and expense data – including tax returns, P&Ls, and rent rolls – to the county assessor’s office on an annual basis. Please immediately submit a witness slip here to voice your opposition to the bill. The witness slip will give you the option either include your opposition on the record, provide oral testimony at the hearing, or provide written testimony prior to the hearing.
Please email Joe Doherty with any questions.
Update - April 2019
IL-SSA and SSA are working to defeat legislation that would require storage operators to provide income and expense data to the county assessor’s office on an annual basis. If you have not done so already, please immediately submit a witness slip here to voice your opposition to the bill. The witness slip will give you the option either include your opposition on the record, provide oral testimony at the hearing, or provide written testimony prior to the hearing.
Changes to the International Building Code Affect Self Storage - April 2019
With the support of its Code Committee, the Self Storage Association successfully pursued several key changes to the 2021 International Building Code.
- An exception has been added to IBC Section 2902.3.3 to permit an increase in the location (to greater than every other floor) and maximum distance of travel (to greater than 500 ft) for restrooms. The location and travel distance must be approved by the code official.
- The maximum allowable height of sprinklered facilities made of Type IIB materials (unprotected steel) and Type IIIB materials (noncombustible or fire-retardant-treated wood stud exterior walls and any interior construction) has been increased from 3 stories to 4 stories. The Code continues to have total floor and building square footage limits.
- Pursuant to modified IBC Section 903.2.9, storage facilities are exempt from the automatic sprinkler system requirement if: (1) the total fire area is 12,000 sq. ft. or less; (2) the combined total fire areas are 24,000 sq. ft. or less; (3) the facility is no greater than one story above grade plane; and (4) all storage spaces are accessed directly from the exterior.
These changes go into effect as they are adopted by local and state governments over the next several years. Prior to the adoption on the local and state level, storage developers can request that the code official rely on the 2021 changes as acceptable alternative methods of construction pursuant to section 104.11 of the existing International Building Code.
Please email Joe Doherty with any questions or to receive supporting documentation for these changes.