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Yeah, that’s been a thing in photo software for at least like 20 years. I remember using it as a teenager for my parents

I think you're right in this case, but Illinois lawmakers are generally extremely silly, so I wouldn't put it past them.

Why would the law make exemptions for running the search on on a computer that has the database.

Because outlawing the local facial recognition that software like Lightroom and Apple Photos has offered for decades would be extraordinarily silly?

Sure. I guess the intent is the main difference.