Full Text of SB3006 102nd General Assembly
SB3006enr 102ND GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Collateral Recovery Act is amended by | 5 | | changing Sections 35, 45, 50, and 75 as follows: | 6 | | (225 ILCS 422/35) | 7 | | (Section scheduled to be repealed on January 1, 2022) | 8 | | Sec. 35. Application for repossession agency licensure. | 9 | | (a) Application for original licensure as a repossession | 10 | | agency shall be made to the Commission in writing on forms | 11 | | prescribed by the Commission and shall be accompanied by the | 12 | | appropriate documentation and the required fee, and the fee is | 13 | | nonrefundable. | 14 | | (b) Every application shall state, in addition to any | 15 | | other requirements, (i) the name of the applicant, (ii) the | 16 | | name under which the applicant shall do business, (iii) the | 17 | | proposed location of the agency by number, street, and city, | 18 | | and (iv) the proposed location of the agency's remote storage | 19 | | location or locations by number, street, and city, (v) the | 20 | | proposed location of the Agency's branch office or branch | 21 | | offices by number, street, and city, and (vi) the usual | 22 | | business hours that the agency shall maintain. | 23 | | (c) No license may be issued (i) in any fictitious name |
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| 1 | | that may be confused with or is similar to any federal, state, | 2 | | county, or municipal government function or agency, (ii) in | 3 | | any name that may tend to describe any business function or | 4 | | enterprise not actually engaged in by the applicant, (iii) in | 5 | | any name that is the same as or similar to any existing | 6 | | licensed company and that would tend to deceive the public, | 7 | | (iv) in any name that would tend to be deceptive or misleading, | 8 | | or (v) to any repossession agency applicant without that | 9 | | agency's location or branch office location maintaining a | 10 | | secured storage facility as defined in Section 10 of this Act. | 11 | | (d) If the applicant for repossession agency licensure is | 12 | | an individual, then his or her application shall include (i) | 13 | | the full residential address of the applicant and (ii) either | 14 | | the sworn statement of the applicant declaring that he or she | 15 | | is the licensed recovery manager who shall be personally in | 16 | | control of the agency for which the licensure is sought, or the | 17 | | name and signed sworn statement of the licensed recovery | 18 | | manager who shall be in control or management of the agency. | 19 | | (e) If the applicant for repossession agency licensure is | 20 | | a partnership, then the application shall include (i) a | 21 | | statement of the names and full residential addresses of all | 22 | | partners in the business and (ii) a sworn statement signed by | 23 | | each partner verifying the name of the person who is a licensed | 24 | | recovery manager and shall be in control or management of the | 25 | | business. If a licensed recovery manager who is not a partner | 26 | | shall be in control or management of the agency, then he or she |
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| 1 | | must also sign the sworn statement. The application shall also | 2 | | state whether any of the partners has ever used an alias. | 3 | | (f) If the applicant for licensure as a repossession | 4 | | agency is a corporation, then the application shall include | 5 | | (i) the names and full residential addresses of all | 6 | | corporation officers and (ii) a sworn statement signed by a | 7 | | duly authorized officer of the corporation verifying the name | 8 | | of the person who is a licensed recovery manager and shall be | 9 | | in control or management of the agency. If a licensed recovery | 10 | | manager who is not an officer shall be in control or management | 11 | | of the agency, then he or she must also sign the sworn | 12 | | statement. The application shall also state whether any of the | 13 | | officers has ever used an alias. | 14 | | (g) If the applicant for licensure as a repossession | 15 | | agency is a limited liability company, then the application | 16 | | shall include (i) the names and full residential addresses of | 17 | | all members and (ii) a sworn statement signed by each member | 18 | | verifying the name of the person who is a licensed recovery | 19 | | manager and shall be in control or management of the agency. If | 20 | | a licensed recovery manager who is not a member shall be in | 21 | | control or management of the agency, then he or she must also | 22 | | sign the sworn statement. The application shall also state | 23 | | whether any of the members has ever used an alias. | 24 | | (h) Each individual, partner of a partnership, officer of | 25 | | a corporation, or member of a limited liability company shall | 26 | | submit with the application a copy of a valid State or U.S. |
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| 1 | | government-issued photo identification card one form of | 2 | | personal identification upon which must appear a photograph | 3 | | taken within one year immediately preceding the date of the | 4 | | filing of the application . An applicant who is 21 years of age | 5 | | or older seeking a religious exemption to the photograph | 6 | | requirement of this subsection shall furnish with the | 7 | | application an approved copy of United States Department of | 8 | | the Treasury Internal Revenue Service Form 4029. Regardless of | 9 | | age, an applicant seeking a religious exemption to this | 10 | | photograph requirement shall submit fingerprints in a form and | 11 | | manner prescribed by the Commission with his or her | 12 | | application in lieu of a photograph. | 13 | | (i) No examination shall be required for licensure as a | 14 | | repossession agency by the Commission. | 15 | | (j) The Commission may require any additional information | 16 | | that, in the judgment of the Commission, shall enable the | 17 | | Commission to determine the qualifications of the applicant | 18 | | for licensure. | 19 | | (k) Applicants have 90 days from the date of application | 20 | | to complete the application process. If the application has | 21 | | not been completed within 90 days, then the application shall | 22 | | be denied, the fee shall be forfeited, and the applicant must | 23 | | reapply and meet the requirements in effect at the time of | 24 | | reapplication. | 25 | | (l) Nothing in this Section precludes a domestic or | 26 | | foreign limited liability company being licensed as a |
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| 1 | | repossession agency. | 2 | | (m) A repossession agency license may be transferable upon | 3 | | prior notice to the Commission and upon completion of all | 4 | | requirements relative to the application process for | 5 | | repossession agency licensure. | 6 | | (n) Repossessions performed in this State must be | 7 | | performed by
repossession agencies, their employees, or agents | 8 | | licensed by the Commission, with the exception of financial | 9 | | institutions or the employees of a financial institution that | 10 | | are exempt under subsection (d) of Section 30 of this Act.
| 11 | | (Source: P.A. 97-576, eff. 7-1-12; 98-848, eff. 1-1-15 .) | 12 | | (225 ILCS 422/45) | 13 | | (Section scheduled to be repealed on January 1, 2022) | 14 | | Sec. 45. Repossession agency employee requirements. | 15 | | (a) All employees of a licensed repossession agency whose | 16 | | duties include the actual repossession of collateral must | 17 | | apply for a recovery permit. The holder of a repossession | 18 | | agency license issued under this Act, known in this Section as | 19 | | the "employer", may employ in the conduct of the business | 20 | | under the following provisions: | 21 | | (1) No person may be issued a recovery permit who | 22 | | meets any of the following criteria: | 23 | | (A) Is younger than 21 years of age. | 24 | | (B) Has been convicted of a crime identified in | 25 | | paragraph (3) of subsection (a) of Section 80 of this |
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| 1 | | Act and the Commission determines the ability of the | 2 | | person to engage in the position for which a permit is | 3 | | sought is impaired as a result of the conviction. | 4 | | (C) Has had a license or recovery permit denied, | 5 | | suspended, or revoked under this Act. | 6 | | (D) Has not successfully completed a certification | 7 | | program approved by the Commission. | 8 | | (2) No person may be employed by a repossession agency | 9 | | under this Section until he or she has executed and | 10 | | furnished to the Commission, on forms furnished by the | 11 | | Commission, a verified statement to be known as an | 12 | | "Employee's Statement" setting forth all of the following: | 13 | | (A) The person's full name, age, and residence | 14 | | address. | 15 | | (B) The business or occupation engaged in for the | 16 | | 5 years immediately before the date of the execution | 17 | | of the statement, the place where the business or | 18 | | occupation was engaged in, and the names of the | 19 | | employers, if any. | 20 | | (C) That the person has not had a license or | 21 | | recovery permit denied, revoked, or suspended under | 22 | | this Act. | 23 | | (D) Any conviction of a felony, except as provided | 24 | | for in Section 85. | 25 | | (E) Any other information as may be required by | 26 | | any rule of the Commission to show the good character, |
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| 1 | | competency, and integrity of the person executing the | 2 | | statement. | 3 | | (b) Each applicant for a recovery permit shall have his or | 4 | | her fingerprints submitted to the Commission by a Live Scan | 5 | | fingerprint vendor certified by the Illinois State Police | 6 | | under the Private Detective, Private Alarm, Private Security, | 7 | | Fingerprint Vendor, and Locksmith Act of 2004 in an electronic | 8 | | format that complies with the form and manner for requesting | 9 | | and furnishing criminal history record information as | 10 | | prescribed by the Illinois State Police. These fingerprints | 11 | | shall be checked against the Illinois State Police and Federal | 12 | | Bureau of Investigation criminal history record databases now | 13 | | and hereafter filed. The Commission shall charge applicants a | 14 | | fee for conducting the criminal history records check, which | 15 | | shall not exceed the actual cost of the records check. The | 16 | | Illinois Commerce Commission Police shall furnish, pursuant to | 17 | | positive identification, records of Illinois convictions to | 18 | | the Commission. The Commission, in its discretion, may allow | 19 | | an applicant who does not have reasonable access to a | 20 | | designated vendor to provide his or her fingerprints in an | 21 | | alternative manner. The Commission, in its discretion, may | 22 | | also use other procedures in performing or obtaining criminal | 23 | | history records checks of applicants. Instead of submitting | 24 | | his or her fingerprints, an individual may submit proof that | 25 | | is satisfactory to the Commission that an equivalent security | 26 | | clearance has been conducted. |
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| 1 | | (c) Qualified applicants shall purchase a recovery permit | 2 | | from the Commission and in a form that the Commission | 3 | | prescribes. The Commission shall notify the submitting person | 4 | | within 14 10 days after receipt of a criminal history records | 5 | | check from the Illinois Commerce Commission Police conducted | 6 | | pursuant to subsection (b) the application of its intent to | 7 | | issue or deny the recovery permit or set the matter for an | 8 | | administrative hearing before an administrative law judge to | 9 | | assist the Commission in determining whether the applicant is | 10 | | fit pursuant to Section 80 . The holder of a recovery permit | 11 | | shall carry the recovery permit at all times while actually | 12 | | engaged in the performance of the duties of his or her | 13 | | employment. No recovery permit shall be effective unless | 14 | | accompanied by a license issued by the Commission. Expiration | 15 | | and requirements for renewal of recovery permits shall be | 16 | | established by rule of the Commission. Possession of a | 17 | | recovery permit does not in any way imply that the holder of | 18 | | the recovery permit is employed by any agency unless the | 19 | | recovery permit is accompanied by the employee identification | 20 | | card required by subsection (e) of this Section. | 21 | | (d) Each employer shall maintain a record of each employee | 22 | | that is accessible to the duly authorized representatives of | 23 | | the Commission. The record shall contain all of the following | 24 | | information: | 25 | | (1) A photograph taken within 10 days after the date | 26 | | that the employee begins employment with the employer. The |
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| 1 | | photograph shall be replaced with a current photograph | 2 | | every 3 calendar years. | 3 | | (2) The Employee's Statement specified in paragraph | 4 | | (2) of subsection (a) of this Section. | 5 | | (3) All correspondence or documents relating to the | 6 | | character and integrity of the employee received by the | 7 | | employer from any official source or law enforcement | 8 | | agency. | 9 | | (4) In the case of former employees, the employee | 10 | | identification card of that person issued under subsection | 11 | | (e) of this Section. | 12 | | (e) Every employer shall furnish an employee | 13 | | identification card to each of his or her employees. This | 14 | | subsection (e) shall not apply to office or clerical | 15 | | personnel. This employee identification card shall contain a | 16 | | recent photograph of the employee, the employee's name, the | 17 | | name and agency license number of the employer, the employee's | 18 | | personal description, the signature of the employer, the | 19 | | signature of that employee, the date of issuance, and an | 20 | | employee identification card number. | 21 | | (f) No employer may issue an employee identification card | 22 | | to any person who is not employed by the employer in accordance | 23 | | with this Section or falsely state or represent that a person | 24 | | is or has been in his or her employ. It is unlawful for an | 25 | | applicant for registration to file with the Commission the | 26 | | fingerprints of a person other than himself or herself or to |
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| 1 | | fail to exercise due diligence in resubmitting replacement | 2 | | fingerprints for those employees who have had original | 3 | | fingerprint submissions returned as unclassifiable. An agency | 4 | | shall inform the Commission within 15 days after contracting | 5 | | or employing a licensed repossession agency employee. The | 6 | | Commission shall develop a registration process by rule. | 7 | | (g) Every employer shall obtain the identification card of | 8 | | every employee who terminates employment with the employer. An | 9 | | employer shall immediately report an identification card that | 10 | | is lost or stolen to the local police department having | 11 | | jurisdiction over the repossession agency location. | 12 | | (h) No agency may employ any person to perform any | 13 | | activity under this Act unless the person possesses a valid | 14 | | license or recovery permit under this Act. | 15 | | (i) If information is discovered affecting the | 16 | | registration of a person whose fingerprints were submitted | 17 | | under this Section, then the Commission shall so notify the | 18 | | agency that submitted the fingerprints on behalf of that | 19 | | person. | 20 | | (j) A person employed under this Section shall have 15 | 21 | | business days within which to notify the Commission of any | 22 | | change in employer , but may continue working under any other | 23 | | recovery permits granted as an employee or independent | 24 | | contractor . A recovery employee may work under the recovery | 25 | | permit for multiple licensed repossession agencies. | 26 | | (k) This Section applies only to those employees of |
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| 1 | | licensed repossession agencies whose duties include actual | 2 | | repossession of collateral.
| 3 | | (l) An applicant who is 21 years of age or older seeking a | 4 | | religious exemption to the photograph requirement of this | 5 | | Section shall furnish with his or her application an approved | 6 | | copy of United States Department of the Treasury Internal | 7 | | Revenue Service Form 4029. Regardless of age, an applicant | 8 | | seeking a religious exemption to this photograph requirement | 9 | | shall submit fingerprints in a form and manner prescribed by | 10 | | the Commission with his or her application in lieu of a | 11 | | photograph. | 12 | | (Source: P.A. 100-286, eff. 1-1-18; 100-948, eff. 1-1-19 .) | 13 | | (225 ILCS 422/50)
| 14 | | (Section scheduled to be repealed on January 1, 2022) | 15 | | Sec. 50. Fees. | 16 | | (a) The license and permit fees required under this Act | 17 | | are as follows: | 18 | | (1) Class "R" license (recovery agency), $825.
| 19 | | (2) Class "RR" license (branch office), $425. | 20 | | (3) Class "MR" license (recovery agency manager), | 21 | | $325. | 22 | | (4) Class "E" recovery permit, $75. | 23 | | (5) Class "EE" recovery permit (recovery agent | 24 | | intern), $75. | 25 | | An agency shall submit an application to register any |
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| 1 | | remote storage location or locations. The Commission shall | 2 | | develop by rule the requirements for registering remote | 3 | | storage locations. The fee for each registration shall not | 4 | | exceed $300 as set by the Commission. | 5 | | (b) The Commission may establish by rule a fee for the
| 6 | | replacement or revision of a license or recovery permit. | 7 | | (c) The fees set forth in this Act or by rule Section must | 8 | | be paid by certified check
or money order, or at the discretion | 9 | | of the Commission, by agency
check at the time of application. | 10 | | The Commission, at its discretion, may also allow for the | 11 | | submission of electronic payments. An applicant filing an | 12 | | application, registration, or form that carries a fee, must | 13 | | pay the associated fee at the time the application, | 14 | | registration, or form is filed. Once paid, all fees are | 15 | | non-refundable An
applicant for a Class "E", Class "EE", or | 16 | | Class "MR" license or permit
must pay the license or permit fee | 17 | | at the time the application is made.
If a license or permit is | 18 | | revoked or denied, or if an application is
withdrawn, then the | 19 | | license or permit fee shall not be refunded .
| 20 | | (Source: P.A. 97-576, eff. 7-1-12 .) | 21 | | (225 ILCS 422/75)
| 22 | | (Section scheduled to be repealed on January 1, 2022) | 23 | | Sec. 75. Licenses and recovery permits; renewals; | 24 | | restoration; person in military service. | 25 | | (a) An original Class "R" license, Class "RR" license, and |
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| 1 | | Class "MR" license shall expire 2 years after the date of | 2 | | issuance. | 3 | | (b) An original Class "E" recovery permit and Class "EE" | 4 | | recovery permit shall expire one year after the date of | 5 | | issuance. | 6 | | (c) A renewal Class "R" license, Class "RR" license and | 7 | | Class "MR" license shall expire 2 years after the date of | 8 | | renewal. | 9 | | (d) A renewal Class "E" recovery permit and Class "EE" | 10 | | recovery permit shall expire one year after the date of | 11 | | renewal. | 12 | | (e) The following are guidelines for the classes of | 13 | | licensure and
registration: | 14 | | (1) Any person, firm, company, partnership, or | 15 | | corporation that engages in business as a recovery agency | 16 | | shall have a Class "R" license. A Class "R" license is | 17 | | valid for only one location. | 18 | | (2) Each branch office of a Class "R" agency shall | 19 | | have a Class "RR" license. | 20 | | (3) Any individual who performs the services of a | 21 | | manager for a Class "R" recovery agency or a Class "RR" | 22 | | branch office must have a Class "MR" license. | 23 | | (4) Any individual who performs recovery services as a | 24 | | repossession agency employee for a Class "R" recovery | 25 | | agency or a Class "RR" branch office must have a Class "E" | 26 | | recovery permit. |
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| 1 | | (5) Any individual who performs repossessions as an | 2 | | intern under the direction and control of a designated, | 3 | | sponsoring Class "E" recovery permit or a designated, | 4 | | sponsoring Class "MR" license shall have a Class "EE" | 5 | | recovery permit. | 6 | | (6) An individual shall have a Class "MR" or Class "E" | 7 | | recovery permit if he or she owns or is an employee of a | 8 | | Class "R" agency or Class "RR" branch office. | 9 | | (7) Class "MR", Class "E", and Class "EE" licenses and | 10 | | recovery permits are not transferable.
| 11 | | (f) At least 90 days prior to the expiration of a license | 12 | | or recovery permit, the Commission shall send mail to the | 13 | | license or permit holder a renewal notice form in the form and | 14 | | manner prescribed by the Commission . The license holder or | 15 | | recovery permit holder must complete and submit a mail the | 16 | | renewal application form to the Commission, pay any fines | 17 | | assessed, and pay any renewal fee required by the Commission. | 18 | | Applications for renewal of a license or permit shall be filed | 19 | | with the Commission no earlier than 90 days, and not later than | 20 | | 45 days, prior to the expiration of a license or permit. When a | 21 | | license holder or permit holder has made such timely and | 22 | | sufficient application for the renewal of a license or | 23 | | recovery permit, the existing license or recovery permit shall | 24 | | continue in full force and effect until the final agency | 25 | | decision on the application has been made, unless a later date | 26 | | is fixed by order of a reviewing court. |
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| 1 | | (g) Any person or entity that has permitted a license or | 2 | | recovery permit to expire may have that license or recovery | 3 | | permit restored by making an application to the Commission | 4 | | within one year after the expiration of a repossession | 5 | | agency's license or a qualified manager license or within 30 | 6 | | days after the expiration of a recovery permit, filing proof | 7 | | acceptable to the Commission of fitness to have the license or | 8 | | recovery permit restored, and paying the required restoration | 9 | | fee. However, any person whose license or recovery permit | 10 | | expired while (i) in federal service on active duty with the | 11 | | Armed Forces of the United States or called into service or | 12 | | training with the State militia or (ii) in training or | 13 | | education under the supervision of the United States | 14 | | preliminary to induction into military service may have his or | 15 | | her license or recovery permit renewed or restored without | 16 | | paying any lapsed renewal fees, if within 2 years after | 17 | | honorable termination of the service, training, or education, | 18 | | except under condition other than honorable, he or she | 19 | | furnishes the Commission with satisfactory evidence to the | 20 | | effect that he or she has been so engaged and that the service, | 21 | | training, or education has been so terminated. | 22 | | (h) A suspended repossession agency license, recovery | 23 | | manager license, or recovery permit is subject to expiration | 24 | | as set forth in this Section. Renewal of a certificate or | 25 | | registration card does not entitle the license holder or | 26 | | recovery permit holder, while the license or recovery permit |
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| 1 | | remains suspended and until it is reinstated, to engage in the | 2 | | licensed or permitted activity. | 3 | | (i) A revoked repossession agency license, recovery | 4 | | manager license, or recovery permit is subject to expiration | 5 | | as set forth in this Section; however, it may not be renewed. | 6 | | If a revoked license or recovery permit is reinstated after | 7 | | its expiration, then the license holder or recovery permit | 8 | | holder, as a condition of reinstatement, shall pay a | 9 | | reinstatement fee in an amount equal to the renewal fee in | 10 | | effect on the last regular renewal date prior to the date on | 11 | | which the license or recovery permit is reinstated and any | 12 | | additional delinquency fee required by the Commission. | 13 | | (j) Any person or entity that notifies the Commission, in | 14 | | writing on forms prescribed by the Commission, may place a | 15 | | license or recovery permit on inactive status and shall be | 16 | | excused from the payment of renewal fees until the person or | 17 | | entity notifies the Commission in writing of the intention to | 18 | | resume active practice. Any person or entity requesting that a | 19 | | license or recovery permit be changed from inactive to active | 20 | | status shall be required to pay the current renewal fee. | 21 | | (k) Any repossession agency license holder, recovery | 22 | | manager license holder, or recovery permit holder whose | 23 | | license or recovery permit is nonrenewed or on inactive status | 24 | | shall not engage in the practice of recovery in this State or | 25 | | use the title or advertise that he, she, or it performs the | 26 | | services of a licensed repossession agency, licensed recovery |
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| 1 | | manager, or repossession agency employee. | 2 | | (l) Any person violating subsection (k) of this Section | 3 | | shall be considered to be operating a repossession agency | 4 | | without a license, acting as a recovery manager without a | 5 | | license, or acting as a repossession agency employee without a | 6 | | recovery permit and is subject to the disciplinary provisions | 7 | | of this Act. | 8 | | (m) A repossession agency license, recovery manager | 9 | | license, or recovery permit that is not renewed within 3 years | 10 | | after its expiration may not be renewed, restored, reinstated, | 11 | | or reissued thereafter. The holder of the license or recovery | 12 | | permit may obtain a new license or recovery permit only upon | 13 | | compliance with all of the provisions of this Act concerning | 14 | | the issuance of original licenses or recovery permits.
| 15 | | (Source: P.A. 97-576, eff. 7-1-12 .)
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