SB3504 104TH GENERAL ASSEMBLY

LRB104 19597 JRC 33046 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3504

Introduced 2/5/2026, by Sen. Mike Porfirio

SYNOPSIS AS INTRODUCED:

765 ILCS 705/35 new

Amends the Landlord and Tenant Act. Provides that any landlord of a dwelling unit of residential real property must offer any tenant the option of having the tenant's rental payment information reported to at least one nationwide consumer reporting agency as long as the consumer reporting agency resells or otherwise furnishes rental payment information to a nationwide consumer reporting agency. "Rental payment information" means information regarding a tenant's complete, timely payments of rent. Requires that before reporting a tenant's rental history information, the landlord must first provide written notice of the offer and obtain written authorization from the tenant electing to have the rent reported. Specifies what information the notice must contain. Provides that if a tenant elects to have that tenant's rental payment information reported to a consumer reporting agency, the landlord may require that the tenant pay a fee not to exceed the actual cost to the landlord to provide the service plus $5 per month. Provides that the payment or nonpayment of this fee by the tenant may not be reported to a consumer reporting agency. Exempts a landlord of a residential rental building that contains 15 or fewer dwelling units, unless the landlord: (1) owns more than one residential rental building, regardless of the number of units in each building; and (2) is a corporation, limited liability company in which at least one member is a corporation or a real estate investment trust. Makes other changes.

A BILL FOR

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Landlord and Tenant Act is amended by adding Section 35 as follows:

(765 ILCS 705/35 new)

Sec. 35. Reporting of tenants' rental payment history.

(a) A landlord of a dwelling unit of residential real property must offer any tenant obligated on the lease the option of having the tenant's rental payment information reported to at least one nationwide consumer reporting agency that meets the definition in Section 603(p) of the federal Fair Credit Reporting Act or any other consumer reporting agency that meets the definition in Section 603(f) of that Act as long as the consumer reporting agency resells or otherwise furnishes rental payment information to a nationwide consumer reporting agency that meets the definition in Section 603(p) of that Act. As used in this Section, "rental payment information" means information regarding a tenant's complete, timely payments of rent.

(b) Before reporting a tenant's rental history information to a consumer reporting agency in accordance with this Section, the landlord must first provide written notice of the offer as described in subsection (d) and obtain written authorization from the tenant electing to have the rent reported.

(c) The offer of rental payment information reporting must be made at the time of the lease agreement and at least once annually thereafter and for any renewal of a lease. A landlord may provide the offer of rental payment reporting to the tenant by first-class United States mail, email, or the same medium used by the landlord to provide the tenant with the lease agreement.

(d) The landlord's notice of the option of rent reporting must include all of the following:

(1) a statement that reporting of the tenant's rental payment information is optional;

(2) identification of each consumer reporting agency to which rental payment information will be reported;

(3) a statement that many consumer reporting agencies consider any rental payment late if the payment is overdue by 30 days or more;

(4) a statement describing which rental payments will be reported and whether these payments are considered timely, late, or missed;

(5) the amount of any fee charged by the landlord for reporting the tenant's rental payment information;

(6) instructions on how to submit to the landlord the written election of rental payment information reporting;

(7) a statement that the tenant may opt into rental payment information reporting at any time following the initial offer by the landlord;

(8) a statement that the tenant may elect to stop rental payment information reporting at any time, but that the tenant will not be able to resume reporting for at least 6 months after the election to opt out;

(9) instructions on how to opt out of rental payment information reporting; and

(10) a signature block that the tenant must date and sign in order to accept the offer of rental payment information reporting.

(e) A tenant may submit the completed written election of rent reporting at any time after the tenant receives the offer from the landlord.

(f)(1) If a tenant elects to have that tenant's rental payment information reported to a consumer reporting agency, the landlord may require that the tenant pay a fee not to exceed the actual cost to the landlord to provide the service plus $5 per month. The payment or nonpayment of this fee by the tenant may not be reported to a consumer reporting agency.

(2) If a tenant fails to pay any fee required by the landlord under this Section, all of the following apply:

(A) the failure to pay the fee is not a cause for termination of the tenancy;

(B) the landlord may not deduct the unpaid fee from the tenant's security deposit or rental payment; and

(C) if the fee remains unpaid for 30 days or more, the landlord may stop reporting the tenant's rental payments, and the tenant may not elect rent reporting again for a period of 6 months from the date on which the fee first became due.

(g) A tenant who elects to have rent reported may subsequently file a written request with the landlord to stop that reporting with which the landlord must comply. A tenant who elects to stop reporting may not elect rent reporting again for a period of at least 6 months from the date of the tenant's written request to stop reporting.

(h) If a tenant makes deductions from rent or otherwise withholds rent as authorized by law, the deductions or withholding of rent do not constitute a late rental payment. A tenant invoking the right to repair and deduct or withhold rent must notify the landlord of the deduction or withholding before the date rent is due.

(i) This Section does not apply to a landlord of a residential rental building that contains 15 or fewer dwelling units, unless the landlord:

(1) owns more than one residential rental building, regardless of the number of units in each building; and

(2) is a corporation, limited liability company in which at least one member is a corporation or a real estate investment trust.