Section 1480.10  Definitions

"Act":  the Collateral Recovery Act [225 ILCS 422].

"Administrative Law Judge":  a Hearing Examiner or a Hearing Officer of the Illinois Commerce Commission's Transportation Division.

"Agent": when used in the Act or this Part, means a person or entity that is authorized to act for or in place of another, and is not a towing company or a person or entity acting on behalf of a towing company, a repossession agency or a person or entity acting on behalf of a repossession agency.

"Applicant":  a person or entity seeking action with respect to a license, recovery permit or registration or a certification program under the Act and this Part.

"Application":  the form and process for seeking action with respect to licensure, a recovery permit or registration or a certification program under the Act and this Part.  The time frame and consequences of failing to complete an application within the specific time frame as provided in Section 35(k) of the Act shall apply to all applications under the Act and this Part.  Specifically, applicants have 90 days from the date of application to complete the application process. If the application has not been completed within 90 days, then the application shall be denied, any fee paid shall be forfeited, and the applicant must reapply and meet the requirements in effect at the time of reapplication.  [225 ILCS 422/35(k)]

"Assignment": a written authorization by a legal owner, lien holder, lessor, lessee, or licensed repossession agency authorized by a legal owner, lien holder, lessor or lessee to locate or repossess, involuntarily or voluntarily, any collateral, including, but not limited to, collateral registered under the Illinois Vehicle Code that is subject to a security agreement that contains a repossession clause or is the subject of a rental or lease agreement.  "Assignment" also means a written authorization by an employer to recover any collateral entrusted to an employee or former employee if the possessor is wrongfully in the possession of the collateral.  A photocopy, facsimile copy, or electronic copy of an assignment shall have the same force and effect as an original written assignment.  [225 ILCS 422/10]

"Branch Office": each additional office and secured storage facility location of a repossession agency located in and conducting business within the State of Illinois and operating under the same name as the repossession agency where business is actively conducted or is engaged in the business authorized by the licensure. Each branch office must be individually licensed. [225 ILCS 422/10]

"Class "E" Recovery Permit": a permit issued to an individual whose duties include the actual repossession of collateral for a Class "R" recovery agency or a Class "RR" branch office and who has met the required criteria for obtaining the permit in accordance with the Act and this Part.

"Class "EE" Recovery Permit": a permit issued to an intern whose duties include the actual repossession of collateral under the direction and control of a designated, sponsoring Class "E" recovery permit or a designated, sponsoring Class "MR" license and who has met the required criteria for obtaining the permit in accordance with the Act and this Part.

"Class "MR" License": a license issued to any individual who performs the services of a recovery manager for a Class "R" recovery agency or a Class "RR" branch office and who has met the required criteria for licensure in accordance with the Act and this Part.

"Class "R" License": a license issued to any person, firm, company, partnership or corporation that engages in business as a recovery agency and has met the required criteria for licensure in accordance with the Act and this Part.  A Class "R" license is valid only for a repossession agency's main office.

"Class "RR" License": a license issued to each branch office of a Class "R" repossession agency that has met the required criteria for licensure in accordance with the Act and this Part.

"Collateral": any vehicle, boat, recreational vehicle, motor home, motorcycle or other property that is subject to a security, lease or rental agreement. [225 ILCS 422/10]

"Commission":  the Illinois Commerce Commission.

"Debtor": any person or entity obligated under a lease, rental, or security agreement. [225 ILCS 422/10]

"Deceive":  the result from actions prohibited by Section 2 of the Consumer Fraud and Deceptive Business Practices Act [815 ILCS 505/2].

"Defraud":  the result of making a reckless or knowing misrepresentation of truth or concealment of fact to induce another to act to his or her detriment.

"Dishonorable":  not in conformity with the Act or this Part.

"Financial Institution": a bank, a licensee under the Consumer Installment Loan Act [205 ILCS 670], savings bank, savings and loan association, or credit union organized and operating under the laws of this or any other state or of the United States, and any subsidiary or affiliate thereof.  [225 ILCS 422/10]

"Harm":  adverse effect, injury, loss, damage or detriment.

"Immediate Family":  includes the person's spouse, parents, children, siblings and partner in a civil union pursuant to the Illinois Religious Freedom Protection and Civil Union Act [750 ILCS 75].

"Legal Owner": a person holding a security interest in any collateral that is subject to a security agreement, a lien against any collateral, or an interest in any collateral that is subject to a lease or rental agreement. [225 ILCS 422/10]

"Licensure": the approval of the required criteria that has been submitted for review in accordance with the provisions of the Act [225 ILCS 422/10]

for the purpose of licensing a recovery manager, repossession agency and branch office of a repossession agency.

"Main Office":  primary facility of a licensed repossession agency located in the State of Illinois.

"Pending Criminal Charge":  alleged violation of any penal law of the United States or any state or territory of the United States brought before a court against a person or entity that may result in a conviction for a crime that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession [225 ILCS 422/80] but that has not been adjudicated by the court as of the date of application or the date of hearing.

"Pending Criminal Proceeding":  judicial process instituted to adjudicate criminal charges brought before a court against a person or entity that has not culminated in an entry of a sentence, a guilty or not guilty judgment, a dismissal, or an order striking the criminal charges as of the date of application or the date of hearing.

"Personal Effects": any property contained within or on repossessed collateral, or property that is not permanently affixed to the collateral, that is not the property of the legal owner.  [225 ILCS 422/10]

"Recovery Manager":  a person who possesses a valid license in accordance with the provisions of the Act and is in control or management of a repossession agency.[225 ILCS 422/10]

"Recovery Permit":  a permit issued by the Commission to a repossession agency employee who has met all the requirements under the Act. [225 ILCS 422/10]

"Recovery Ticket": a serialized record obtained from the Commission for any repossessed vehicle or collateral evidencing that any person, business, financial institution, automotive dealership, or repossession agency who shows a recovery ticket has paid the recovery ticket fee to the Commission.  [225 ILCS 422/10]

"Remote Storage Location":  a secured storage facility of a licensed repossession agency designated for the storage of collateral that is a secure building or has a perimeter that is secured with a fencing construction that makes the area not accessible to the public. A remote storage location shall not transact business with the public and shall provide evidence of applicable insurance to the Commission that specifies the licensed repossession agency as the primary policy holder. A remote storage location shall be located in a commercially zoned area physically located in Illinois. [225 ILCS 422/10]

"Repossession Agency":  any person or entity conducting business within the State of Illinois, that, for any type of consideration, engages in the business of, accepts employment to furnish, or agrees to provide or provides property locating services, property recovery, recovered property transportation, recovered property storage, or all services relevant to any of the following:

The location, disposition, or recovery of property as authorized by the self-help provisions of the Uniform Commercial Code;

The location, disposition, or recovery of lost or stolen property;

Securing evidence concerning repossession and recovery to be used before any court, board, office, or investigating committee;

Inventory of property contained in or on the collateral or recovered property;

The possession of collateral;

The prevention of the misappropriation or concealment of chattel, vehicles, goods, objects, documents, or paper.

"Repossession Agency" does not include any of the following:

An attorney at law who is performing his or her duties as an attorney at law.

The legal owner of collateral that is subject to a security agreement;

An officer or employee of the United States of America or of this State or a political subdivision of this State while the officer or employee is engaged in the performance of his or her official duties;

A qualified recovery manager's license or recovery permit holder when performing services for, or on behalf of, a licensed repossession agency;

A collection agency licensed under the Collection Agency Act [225 ILCS 425] when its activities are limited to assisting an owner in the recovery of property that is not collateral, as defined in this Act. [225 ILCS 422/10]

"Repossession Agency Employee":  any person or self-employed independent contractor who is hired by a repossession agency. [225 ILCS 422/10]

"Secured Storage Facility":  an area located on the same premises as a repossession agency office or branch office that is designated for the storage of collateral and is a secure building or has a perimeter that is secured with a fencing construction that makes the area not accessible to the public. Each repossession agency office or branch office must maintain a secured storage facility. [225 ILCS 422/10]

"Security Agreement": an obligation, pledge, mortgage, chattel mortgage, lease agreement, rental agreement, deposit, or lien, given by a debtor as security for payment or performance of his or her debt by furnishing the creditor with a recourse to be used in case of failure in the principal obligation.  "Security agreement" includes a bailment where an employer-employee relationship exists or existed between the bailor and the bailee. [ 225 ILCS 422/10]

"Transferee-Applicant":  an applicant for transfer of a Class "R" License under the Act and this Part.

"Unethical":  not in conformity with the Act or this Part.

"Unprofessional":  not in conformity with the Act or this Part.

"Violation":  failure to comply with a provision of the Act, this Part or Commission orders.  Each day's continuance of a violation shall constitute a separate violation.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.20  Repossession Agency Licensure

a)         Applications for repossession agency licensure shall be filed on forms and contain the information prescribed by the Commission. Incomplete or incorrect applications for repossession agency licensure shall be refused or rejected by the Commission.

b)         Applicants for repossession agency licensure shall submit, along with their applications, copies of government-issued photo identification, such as a driver's license, state identification card, or passport for all persons required to submit personal photo identification under the Act.

c)         Applicants for repossession agency licensure shall disclose on their applications:

1)         All civil judgments entered in the 5 years preceding the date of application by any legal forum other than the Commission arising from conduct while performing repossessions against the applicant or any individual required by Section 60 of the Act to submit to a criminal background check as part of the licensure process; and

2)         All convictions for any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession. [225 ILCS 422/80]  The applicant shall provide all information required by the Commission's application regarding the applicant's convictions, in addition to submitting to a criminal background check as required by the Act.

d)         As part of the repossession agency licensure process, the Commission shall consider the criminal record of the applicant.  The Commission may refuse to issue or renew a repossession agency license if the applicant has been convicted of any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession.  [225 ILCS 422/80]  For purposes of this subsection and subsection (c)(2), "applicant" shall include the sole proprietor if the applicant is a sole proprietorship, each partner of the applicant that is a partnership, each officer of the applicant that is a corporation and each member of the applicant that is a limited liability company. 

e)         The Commission shall review applications for repossession agency licensure to determine whether the applicant has satisfied the fitness criteria contained in the Act and this Part.  If, upon review of an application, the Commission discovers that the applicant or any individual required to submit to a criminal background check as part of the licensure process has been convicted of any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession [225 ILCS 422/80], the matter shall be set for an administrative hearing before an Administrative Law Judge to assist the Commission in determining whether the applicant is unfit by reason of conviction.

f)         A repossession agency license shall not be issued to the applicant if the applicant or any individual required to submit to a criminal background check as part of the licensure process has pending criminal proceedings involving any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession. The application for repossession agency licensure shall remain on pending status until the resolution of the pending criminal charges.  If the criminal proceedings culminate in the applicant or any individual required to submit to a criminal background check as part of the licensure process being convicted of any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession, the matter shall be set for an administrative hearing before an Administrative Law Judge to assist the Commission in determining whether the applicant is unfit by reason of conviction. [225 ILCS 422/80]

g)         At the hearing, the applicant shall have the burden of proving fitness by clear and convincing evidence.

h)         Only repossession agencies that have active licenses with the Commission are authorized to engage in collateral recovery in the State of Illinois.  Repossession agencies whose licenses have been placed on a status other than active are not authorized to engage in collateral recovery in the State of Illinois.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.25  Licensed Recovery Manager in Control or Management of Repossession Agency Main Office or Branch Office

a)         A licensed recovery manager is in control or management [225 ILCS 422/65(a)] of a repossession agency main office or a repossession agency branch office when the recovery manager is physically present at the repossession agency main office or branch office or within a close proximity of the repossession agency main office or branch office and able to supervise employees and repossession activities of the repossession agency main office or branch office. 

b)         When a licensed recovery manager currently registered with the Commission temporarily ceases to be in control or management of a repossession agency main office or branch office, the repossession agency may use a temporary, registered, licensed recovery manager with the Commission who will be temporarily in control or management of a repossession agency main office or branch office. 

1)         A temporary, licensed recovery manager must have an active Class "MR" License, be registered in that capacity with the Commission pursuant to Subpart F and be otherwise in compliance with the Act and this Part prior to assuming duties as a recovery manager on behalf of a licensed repossession agency.  The temporary recovery manager must possess an active Class "MR" License issued by the Commission at the time of registration.  A temporary, licensed recovery manager must comply, at all times, with the Act and this Part while serving as the licensed recovery manager for a repossession agency main office or branch office.

2)         The provisions of this subsection (b) may be utilized in addition to, but not in lieu of, the provisions of the Act or this Part. 

(Source:  Added at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.30  Repossession Agency License Transfer

a)         Applications for the transfer of a repossession agency license shall be filed on forms and contain the information prescribed by the Commission. Incomplete or incorrect applications for the transfer of a license shall be refused or rejected by the Commission.  Applications shall be accompanied by the appropriate fee listed in Section 1480.540.

b)         The following shall constitute a transfer of a repossession agency license:

            1)         Change in the ownership interest of the license;

            2)         Change in the ownership interest of the license holder.

c)         Transferees-applicants shall disclose on transfer applications:

1)         All civil judgments entered in the 5 years preceding the date of application by any legal forum other than the Commission arising from conduct while performing repossessions against the transferee-applicant or any individual required to submit to a criminal background check as part of the licensure process; and

2)         All convictions for any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession.  [225 ILCS 422/80]  The transferee-applicant shall provide all information required by the Commission's application regarding the transferee-applicant's convictions, in addition to submitting to a criminal background check as required by the Act.

d)         Unless otherwise specifically provided for in the Act or in this Part, transferee-applicants will be held to the same fitness standards and will be required to comply with the same application procedures as initial applicants for repossession agency licensure.

e)         The Commission shall review applications for the transfer of a license to determine whether the transferee-applicant has satisfied the fitness criteria contained in the Act and this Part. If, upon review of an application for the transfer of a license, the Commission discovers that the transferee-applicant or any individual required to submit to a criminal background check as part of the licensure process has been convicted of any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession [225 ILCS 422/80], the matter shall be set for an administrative hearing before an Administrative Law Judge to assist the Commission in determining whether the transferee-applicant is unfit by reason of conviction.

f)         A transfer of a repossession agency license shall not be granted to a transferee-applicant if the transferee-applicant or any individual required to submit to a criminal background check as part of the licensure process has pending criminal proceedings involving any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession. The application for transfer of repossession agency licensure shall remain on pending status until the resolution of the pending criminal charges.  If the criminal proceedings culminate in the transferee-applicant or any individual required to submit to a criminal background check as part of the licensure process being convicted of any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession, the matter shall be set for an administrative hearing before an Administrative Law Judge to assist the Commission in determining whether the transferee-applicant is unfit by reason of conviction.  [225 ILCS 422/80]

g)         Only repossession agency licenses that are in good standing with the Commission may be transferred.  Applicants have 90 days from the date of application to complete the application process. The repossession agency license shall remain on active status during the 90 day period.   If the application process has not been completed and all the fitness standards have not been fulfilled within 90 days, then the application shall be denied, the fee shall be forfeited  and the license shall be suspended.  [225 ILCS 422/35(k)]

h)         At the hearing, the applicant shall have the burden of proving fitness by clear and convincing evidence.

i)          As part of the transfer of repossession agency licensure process, the Commission shall consider the criminal record of the transferee-applicant.  The Commission may refuse to grant the transfer of a repossession agency license if the transferee-applicant has been convicted of any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession.  [225 ILCS 422/80]  For purposes of this subsection and subsection (c)(2), "transferee-applicant" shall include the sole proprietor if the transferee-applicant is a sole proprietorship, each partner of the transferee-applicant that is a partnership, each officer of the transferee-applicant that is a corporation and each member of the transferee-applicant that is a limited liability company.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.35  Repossession Agency Branch Office Licensure

Applications for repossession agency branch office licensure shall be filed on forms and contain the information prescribed by the Commission.  Incomplete or incorrect applications for repossession agency branch office licensure shall be refused or rejected by the Commission.

(Source:  Added at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.40  Recovery Manager Licensure

a)         Applications for recovery manager licensure shall be made on forms and contain the information prescribed by the Commission.  Incomplete or incorrect applications for recovery manager licensure shall be refused or rejected by the Commission.

b)         Applicants for recovery manager licensure shall disclose on their applications:

1)         All civil judgments entered against them in the 5 years preceding the date of application by any legal forum other than the Commission arising from their conduct while performing repossessions; and

2)         All convictions for any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession.  [225 ILCS 422/80]  The applicant shall provide all information required by the Commission's application regarding the applicant's convictions, in addition to submitting to a criminal background check as required by the Act.

c)         Applicants for recovery manager licensure shall submit the following as part of the application:

1)         A sworn statement from the applicant attesting he or she has completed no less than 2,500 hours of actual compensated collateral recovery work as an employee of a repossession agency, a financial institution or a vehicle dealer within the 5 years immediately preceding the filing of his or her application;

2)         Copies of paycheck stubs, W2s, 1099s or payroll printouts from the manager's employment.  If the applicant is unable to provide copies of paycheck stubs, W2s, 1099s or payroll printouts supporting the actual compensated collateral recovery experience in the 5 years immediately preceding the filing of the application, the applicant shall provide a separate written statement explaining the unavailability of paycheck stubs, W2s, 1099s or payroll printouts, as well as a sworn statement from each repossession agency, financial institution or vehicle dealer for which the applicant performed actual collateral recovery work for compensation during the 5 years immediately preceding the application;

3)         Proof of completion of a recovery manager certification program approved by the Commission under Section 1480.160; and

4)         A copy of a government-issued photo identification issued to the applicant, such as a driver's license, state identification card, or passport.

d)         The Commission shall review applications for recovery manager licensure to determine whether the applicant has satisfied the fitness criteria contained in the Act and this Part.  If, upon review of an application for a recovery manager license, the Commission discovers that the applicant has been convicted of any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession [225 ILCS 422/80], the matter shall be set for an administrative hearing before an Administrative Law Judge to assist the Commission in determining whether the applicant is unfit by reason of conviction.

e)         A recovery manager license shall not be issued to an applicant who has pending criminal proceedings involving any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession. The application for recovery manager licensure shall remain on pending status until the resolution of the pending criminal charges.  If the criminal proceedings culminate in the applicant being convicted of any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession, the matter shall be set for an administrative hearing before an Administrative Law Judge to assist the Commission in determining whether the applicant is unfit by reason of conviction. [225 ILCS 422/80]

f)         Only individuals who have active Class "MR" Licenses with the Commission are authorized to operate as recovery managers for a repossession agency main office or branch office.  Individuals whose recovery manager licenses have been placed on a status other than active are not authorized to operate as recovery managers.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.50  Recovery Permits

a)         Applications for initial recovery permits Class "E" and Class "EE" shall be filed on forms and contain information prescribed by the Commission.  Incomplete or incorrect applications for recovery permits shall be refused or rejected by the Commission.

b)         Applicants for recovery permits Class "E" and Class "EE" shall disclose on their applications:

1)         All civil judgments entered against them in the 5 years preceding the date of application by any legal forum other than the Commission arising from their conduct while performing repossessions; and

2)         All convictions for any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession.  [225 ILCS 422/80]  The applicant shall provide all information required by the Commission's application regarding the applicant's convictions, in addition to submitting to a criminal background check as required by the Act.

c)         The Commission shall review applications for recovery permits Class "E" and Class "EE" to determine whether the applicant has satisfied the fitness criteria contained in the Act.  If, upon review of an application for recovery permit, the Commission discovers that the applicant has been convicted of any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession [225 ILCS 422/80], the matter shall be set for an administrative hearing before an Administrative Law Judge to assist the Commission in determining whether the applicant is unfit by reason of conviction.

d)         Class "E" and Class "EE" recovery permits shall not be issued to applicants who have pending criminal proceedings involving any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession. The applications for Class "E" and Class "EE" recovery permits shall remain on pending status until the resolution of the pending criminal charges.  If the criminal proceedings culminate in the applicant being convicted of any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession, the matter shall be set for an administrative hearing before an Administrative Law Judge to assist the Commission in determining whether the applicant is unfit by reason of conviction. [225 ILCS 422/80]

e)         At hearing, the applicant shall have the burden of proving fitness by clear and convincing evidence.

f)         Applicants shall submit as part of their recovery permit Class "E" and Class "EE" applications copies of government-issued photo identification issued to the applicant, such as a driver's license, state identification card, or passport.

g)         Applicants for Class "EE" recovery permits shall fulfill the same fitness standards that are required of Class "E" recovery permit applicants except Class "EE" applicants shall not have to demonstrate completion of an approved recovery agency employee certification program.

h)         Only individuals who have active recovery permits with the Commission are authorized to perform actual repossession in the State of Illinois for a licensed repossession agency.  Individuals whose recovery permits have been placed on a status other than active are not authorized to engage in actual repossessions in the State of Illinois for a licensed repossession agency.

i)          A Class "EE" recovery permit holder is under the direction and control of a designated, sponsoring Class "E" recovery permit or a designated, sponsoring Class "MR" license [225 ILCS 422/75(e)(5)], when the Class "EE" recovery permit holder is accompanied at all times by a designated, sponsoring Class "E" recovery permit holder or Class "MR" license holder when the Class "EE" recovery permit holder engages in actual repossessions in the State of Illinois.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.60  Conversion of Class "EE" Recovery Permit to Class "E" Recovery Permit

Upon completion of an approved recovery agency employee certification program under Section 1480.160, a holder of a Class "EE" recovery permit in good standing may file an application for conversion of his or her Class "EE" recovery permit to a Class "E" recovery permit. 

a)         Applications for conversion of a Class "EE" recovery permit to a Class "E" recovery permit shall be filed on forms and contain the information prescribed by the Commission.  Incomplete or incorrect applications for conversion of a Class "EE" recovery permit to a Class "E" recovery permit shall be refused or rejected by the Commission.

b)         Applicants for conversion of a Class "EE" recovery permit to a Class "E" recovery permit shall not be required to pay a conversion application fee.

c)         Applications for conversion of a Class "EE" recovery permit to a Class "E" recovery permit shall contain proof of the Applicant's completion of an approved recovery agency employee certification program.

d)         A Class "EE" recovery permit can only be renewed once and shall expire permanently at the end of the renewal period.

Section 1480.61  Consideration of Past Crimes in Licensing Hearings

Notwithstanding the prohibitions set forth in Sections 40 and 45 of the Act, when considering the denial of a license or recovery permit on the grounds of conviction of a crime, the Commission, in evaluating the rehabilitation of the applicant and the applicant's present eligibility for a license or recovery permit, shall consider each of the following criteria:

a)         The nature and severity of the act or crime under consideration as grounds for denial.

b)         Evidence of any act committed subsequent to the act or crime under consideration as grounds for denial, which also could be considered as grounds for disciplinary action under the Act.

c)         The amount of time that has lapsed since the commission of the act or crime referred to in subsection (a) or (b).

d)         The extent to which the applicant has complied with any terms of parole, probation, restitution, or any other sanctions lawfully imposed against the applicant as of the date of the hearing as evidenced by: 

1)         Satisfactory termination of the applicant's sentence;

2)         Applicant's compliance with all requirements and conditions of parole, probation, conditional discharge, term of imprisonment or any other lawfully imposed sentence;

3)         Applicant's compliance with paying any fees, fines, court costs or restitution imposed by the court as part of the sentence.

e)         Evidence, if any, of rehabilitation submitted by the applicant [225 ILCS 422/85], such as:

1)         Bestowment onto the applicant of certifications or commendations subsequent to a conviction for a crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession [225 ILCS 422/80] that demonstrate a decrease in propensity toward the behavior that previously caused the applicant to become convicted;

2)         Applicant's successful participation in special programs or counseling groups designed to decrease the propensity toward the behavior that previously caused the applicant to become convicted of a crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession.  [225 ILCS 422/80]

(Source:  Added at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.70  Replacement or Revision of a License, Recovery Permit or Registration

Applications for replacement or revision of any license, recovery permit or registration issued under the Act or this Part shall be filed on forms and contain the information prescribed by the Commission.  Incomplete or incorrect applications for replacement or revision of a license, recovery permit or registration shall be refused or rejected by the Commission.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.80  Return of Revoked or Suspended Licenses, Recovery Permits or Registrations

Upon the revocation or suspension of any license, registration or recovery permit, the license holder, registration holder or permit holder shall immediately surrender the license, registration or recovery permit to the Commission.  [225 ILCS 422/185]  The license, registration or recovery permit holder will be considered in compliance with this Section if the license, registration or recovery permit is returned within 14 days from the date of suspension or revocation via United States mail or hand delivery at the following address:

Illinois Commerce Commission

Transportation Division

527 East Capitol Avenue

Springfield, Illinois 62701

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.90  Renewal of Licenses and Recovery Permits

a)         Applications to renew a license or recovery permit shall be filed on forms and contain the information prescribed by the Commission.  Incomplete or incorrect applications for renewal of licenses or recovery permits shall be refused or rejected by the Commission.

b)         Applicants for the renewal of a license shall fulfill the same fitness standards that are required of initial applicants for a respective license. Applicants for the renewal of a recovery permit shall fulfill the same fitness standards that are required of initial applicants for a respective recovery permit.

c)         For applicants whose applications were previously set for hearing due to a conviction, if, upon review of an application for renewal, the Commission discovers that the applicant or any individual required to submit to a criminal background check as part of the licensure process has been convicted of any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession [225 ILCS 422/80] since the last hearing held in the matter, the matter shall be set for an administrative hearing before an Administrative Law Judge to assist the Commission in determining whether the applicant is unfit by reason of conviction.

d)         Applications for renewal of a license or permit must be filed with the Commission no earlier than 90 days and not later than 45 days prior to the expiration of a license or permit.  The license or permit holder must satisfactorily complete the application process and fulfill all the fitness standards by the expiration date of the license or permit.  A license or permit expires on the expiration date if not successfully renewed by the Commission prior to the expiration date.   Any license or recovery permit holder whose license or recovery permit is not renewed by the license's or permit's expiration date shall not engage in the practice of recovery in this State or use the title or advertise that he, she, or it performs the services of a licensed repossession agency, licensed recovery manager, or repossession agency employee.  [225 ILCS 422/75(k)]

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.100  Restoration of Licenses and Recovery Permits

a)         Applications to restore an expired license or recovery permit shall be filed on forms and contain the information prescribed by the Commission.  Incomplete or incorrect applications for restoration of licenses or recovery permits shall be refused or rejected by the Commission.

b)         Any person in military service whose license has expired as provided in Section 75(g) of the Act and who is requesting a waiver of the restoration fee must submit supporting documents with the application, including but not limited to, official written military orders.

c)         Applicants for the restoration of a license shall fulfill the same fitness standards that are required of initial applicants for a respective license. Applicants for the restoration of a recovery permit shall fulfill the same fitness standards that are required of initial applicants for a respective recovery permit. 

d)         The restoration fee for a license or recovery permit listed in Subpart V shall be in addition to a renewal fee for that respective license or recovery permit.

Section 1480.110  Reinstatement of Licenses, Recovery Permits or Registrations

a)         Applications to reinstate a revoked or suspended license, recovery permit or registration shall be filed on forms and contain the information prescribed by the Commission.  Incomplete or incorrect applications for reinstatement of licenses, recovery permits or registrations shall be refused or rejected by the Commission.

b)         An applicant for the reinstatement of a license shall fulfill the same fitness standards required of an initial applicant for a respective license. License holders whose licenses were suspended or revoked according to Section 1480.392 shall cure the deficiency that caused the suspension or revocation, file a reinstatement application and pay the reinstatement application fee before the license may be reinstated.

c)         An applicant for the reinstatement of a recovery permit shall fulfill the same fitness standards required of an initial applicant for a respective recovery permit. Recovery permit holders whose permits were suspended or revoked according to Section 1480.392 shall cure the deficiency that caused the suspension or revocation, file a reinstatement application and pay the reinstatement application fee before the recovery permit may be reinstated.

d)         An applicant for the reinstatement of a registration shall fulfill the same fitness standards required of an initial applicant for a respective registration.  Registration holders whose registrations were suspended or revoked according to Section 1480.392 shall cure the deficiency that caused the suspension or revocation, file a reinstatement application and pay the reinstatement application fee before the registration may be reinstated.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.120  Resuming an Inactive License or Recovery Permit to Active Status

a)         Any person or entity requesting that a license or recovery permit be changed from inactive to active status shall submit a written notice on a form containing the information prescribed by the Commission.  Incomplete or incorrect written forms shall be refused or rejected by the Commission.

b)         Any person or entity requesting to resume a license to active status shall fulfill the same fitness standards that are required of an initial applicant for a respective license. Any person requesting to resume a recovery permit to active status shall fulfill the same fitness standards that are required of an initial applicant for a respective recovery permit.  Active status will not be resumed until the person or entity has demonstrated full compliance with the Act and this Part. 

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.130  License Extension upon the Death of a Person Licensed Individually

a)         An immediate family member shall submit written notice on a form containing the information prescribed by the Commission or in a form of the letter to the Commission.  Incomplete or incorrect written notices shall be refused or rejected by the Commission.  If the immediate family member submits the written notice in the form of a letter, the letter shall provide, at minimum, the following information:

1)         Full legal name of the deceased license holder;

2)         Identifying number of the license;

3)         Full legal name of the immediate family member;

4)         Address of the immediate family member;

5)         Telephone number of the immediate family member;

6)         Relationship of the immediate family member to the license holder;

7)         Date of death of the license holder;

8)         Brief statement requesting a license extension; and

9)         Notarized signature of the immediate family member.

b)         An immediate family member shall submit, along with the written notice, the death certificate of the deceased license holder and:

1)         If the immediate family member is a child or a parent of the deceased license holder, the immediate family member's birth or adoption certificate; or

2)         If the immediate family member is a sibling of the deceased license holder, the immediate family member's birth or adoption certificate; or

3)         If the immediate family member is a spouse of the deceased license holder, a marriage or civil union certificate issued to the deceased license holder and surviving spouse.

Section 1480.140  License Extension upon the Death or Disassociation of Partner

a)         A partnership shall submit written notice on a form containing the information prescribed by the Commission or in the form of a letter to the Commission.  Incomplete or incorrect written notices shall be refused or rejected by the Commission.  If the partnership submits the written notice in the form of a letter, the letter shall provide, at minimum, the following information:

1)         Full legal name of the partnership;

2)         Business address of the partnership;

3)         Business telephone of the partnership;

4)         Identifying number of the license;

5)         Full legal name of the deceased or disassociated partner;

6)         Full legal name of every partner;

7)         Address of every partner;

8)         Telephone number of every partner;

9)         Date of death of the deceased partner or date of disassociation of the disassociated partner;

10)         Brief statement requesting extension; and

11)         Notarized signature of the notifying partner.

b)         In case of death of a partner, the partnership shall submit, along with the written notice, a copy of the deceased partner's death certificate.

Section 1480.145  License Extension upon Death of a Shareholder of a Corporation or a Member of a Limited Liability Company

a)         In the case of the death of a shareholder of a corporation licensed as a repossession agency, the corporation shall notify the Commission, in writing, within 30 days from the death of a shareholder.  If the corporation fails to notify the Commission within the 30-day period, the license shall automatically be revoked at the end of that period.  If proper notice is given, the license shall remain in force for 90 days following the date of death of a shareholder.  At the end of the 90-day period, the license shall automatically be revoked.

b)         In the case of the death of a member of a limited liability company licensed as a repossession agency, the company shall notify the Commission, in writing, within 30 days from the death of a member.  If the company fails to notify the Commission within the 30-day period, the license shall automatically be revoked at the end of that period.  If proper notice is given, the license shall remain in force for 90 days following the date of death of a member.  At the end of the 90-day period, the license shall automatically be revoked.

c)         The corporation or limited liability company shall submit written notice on a form containing the information prescribed by the Commission or in the form of a letter to the Commission.  Incomplete or incorrect written notices shall be refused or rejected by the Commission.  If the corporation or limited liability company submits the written notice in form of a letter, the letter shall provide, at minimum, the following information:

            1)         Full legal name of the corporation or limited liability company;

            2)         Business address of the corporation or limited liability company;

            3)         Business telephone of the corporation or limited liability company;

            4)         Identifying number of the license;

            5)         Full legal name of the deceased shareholder or member;

            6)         Full legal name of every shareholder or member;

            7)         Address of every shareholder or member;

            8)         Telephone number of every shareholder or member;

9)         Date of death of the shareholder or member;

10)         Brief statement requesting extension; and

11)        Notarized signature of authorized company representative.

d)        The corporation or limited liability company shall submit, along with the written notice, a copy of the deceased shareholder's or member's death certificate.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.146  Exception to Revocation of an Extended License

In case of death of a person licensed individually, the license will not automatically be revoked at the end of the 120-day period if the immediate family member of the person licensed individually applies for a transfer of the repossession agency license in accordance with the Act and this Part within the 120-day period.  For partnerships, corporations and limited liability companies, the license will not automatically be revoked at the end of the 90-day period if the partnership, corporation or limited liability company applies for a transfer of the repossession agency license in accordance with the Act and this Part within the 90-day period.  The corporation, limited liability company, immediate family member of the person individually licensed or partnership may continue to operate under the repossession agency license until a final decision granting or denying the transfer is issued or the 90-day period to complete the transfer application process and fulfill all the fitness standards expires, whichever comes first.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.150  Registration Procedures

a)         Repossession agencies shall register all recovery managers and persons engaged in actual repossession with the Commission.  Registration shall be completed on forms and contain the information prescribed by the Commission.  Incomplete or incorrect registration forms shall be refused or rejected by the Commission.

b)         Registrations shall not be effective until accepted by the Commission.

c)         No repossession agency shall issue an employee identification card until a registration for that employee or intern has been accepted by the Commission.

d)         Registrations shall indicate, for every person being registered as an employee or intern who will perform actual repossessions by driving away collateral, or towing collateral by a tow truck, or both, on behalf of the licensed repossession agency, whether the person being registered holds a valid state driver's license or restricted driving permit.  The Commission shall not accept a registration when the registration indicates that the person being registered as an employee or intern will perform actual repossessions by driving away or driving a tow truck to tow away collateral, or both, without a valid state driver's license or restricted driving permit.

e)         Once a person is registered with the Commission, the registration shall be updated by filing a form containing the information prescribed by the Commission to effect any changes to the registration.

f)         If a registered person's license or recovery permit is summarily suspended, the Commission shall notify the license or permit holder and any repossession agency with which that person is registered.

g)         Registrations for temporary, licensed recovery managers shall indicate the specific period of time during which the temporary, licensed recovery manager will serve as a recovery manager in control or management of the repossession agency main office or branch office. A temporary, licensed recovery manager may only be registered as such for a period of 30 days, at the end of which the registration will expire. The registration of the licensed recovery manager who is being temporarily replaced need not be cancelled when the licensed recovery manager temporarily ceases control and management of the repossession agency main office or branch office.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.160  Applications for Commission Approval of Recovery Manager Certification Programs

a)         Applications for Commission approval of a recovery manager certification program shall be filed on forms and contain information prescribed by the Commission.  Incomplete or incorrect applications shall be refused or rejected by the Commission. 

b)         Applications for Commission approval of a recovery manager certification program shall be accompanied by an application fee.

c)         The Commission shall approve by resolution any recovery manager certification program it deems consistent with the purposes of the Act.

d)         At a minimum, the certification program shall include training in the following areas:

1)         The Act;

2)         This Part;

3)         Illinois criminal law relating to crimes against persons or property;

4)         Recovery of collateral;

5)         Recordkeeping; and

6)         Ethical and professional conduct.

e)         The certification program shall be updated to reflect changes in the areas of law listed in subsection (d).  Failure to update the certification program with current changes in the law may cause the approval to be withdrawn by the Commission.

Section 1480.170  Applications for Commission Approval of Repossession Agency Employee Certification Programs

a)         Applications for Commission approval of a repossession agency employee certification program shall be filed on forms and contain the information prescribed by the Commission. Incomplete or incorrect applications shall be refused or rejected by the Commission. 

b)         Applications for Commission approval of a repossession agency employee certification program shall be accompanied by an application fee.

c)         The Commission shall approve by resolution any repossession agency employee certification program it deems consistent with the purposes of the Act.

d)         At a minimum, the certification program shall include training in the following areas:

1)         The Act;

2)         This Part;

3)         Illinois criminal law relating to crimes against persons or property;

4)         Recovery of collateral;

5)         Recordkeeping; and

6)         Ethical and professional conduct.

e)         The certification program shall be updated to reflect changes in the areas of law listed in subsection (d).  Failure to update the certification program with current changes in the law may cause the approval to be withdrawn by the Commission.

Section 1480.180  Generally

a)         Recovery tickets shall be completed on forms and contain the information prescribed by the Commission.

b)         Recovery tickets shall remain attached to the repossessed collateral until any of the following occur:

1)         Collateral is returned to the debtor;

2)         Collateral is returned to the lien holder;  or

3)         Collateral is sold.

c)         Unused recovery tickets shall be returned to the Commission via United States mail or hand delivery at the following address:

Illinois Commerce Commission

Transportation Division

527 East Capitol Avenue

Springfield, Illinois 62701

Section 1480.190  Accounting and Maintenance of Books and Records

a)         Each repossession agency shall comply with generally accepted accounting principles for use in the keeping and recording of their accounts and bookkeeping records.

b)         As generally accepted accounting standards, the Commission incorporates by reference "Generally Accepted Accounting Principles" of the Financial Accounting Standards Board (July 1, 2009, no later amendments or editions included).

Financial Accounting Standards Board

401 Merritt 7

P.O. Box 5116

Norwalk, Connecticut 06856-5116

Telephone: 203-847-0700

c)         The books referred to in this Subpart include not only books of account in a limited technical sense but all other correspondence, memoranda, etc., that will be useful in developing the history of or facts regarding any transaction.

d)         Each repossession agency shall preserve the books, accounts, records or memoranda for a period of at least 2 years.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.200  Audit and Inspection of Books and Records

a)         Each repossession agency shall permit Commission staff to inspect, examine and audit by producing, upon demand, all accounts, books, records, memoranda, other papers and electronic data in the possession or control of the repossession agency to determine whether provisions of the Act or this Part have been violated.

b)         Commission staff shall have the power, at any and all times, to examine, audit or demand production of all accounts, books, records, memoranda, other papers and electronic data in the possession or control of any other person to determine whether provisions of the Act or this Part have been violated.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.210  Annual Report Filing  

Each repossession agency shall complete and file with the Commission not later than May 15 of each calendar year an annual report for the preceding calendar year.  The annual report shall be made on forms and contain the information prescribed by the Commission.  Incomplete or incorrect annual reports shall be refused or rejected by the Commission.

Section 1480.220  Licenses Conditioned upon Compliance with Insurance Requirements

A license or registration issued to a repossession agency, branch office or remote storage location by the Commission has force and effect only while the license holder is in compliance with the requirements for the filing of proof of insurance.

Section 1480.230  Proof of Insurance

Proof of insurance or cancellation shall be filed on forms containing the information prescribed by the Commission. The filing of proof of insurance shall constitute acceptance of the minimum terms required by Section 90 of the Act.  The coverage shall remain in effect until the coverage expires, a cancellation form is filed with the Commission or the coverage is superseded by filing a subsequent certification of insurance.  The Commission shall receive notice of cancellation no later than the effective date of cancellation of the policy.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.240  Notification to the Debtor

a)         Within 5 working days after repossession, a licensed repossession agency must give written notice to the debtor of the whereabouts of personal effects or property not covered by a security agreement inventoried pursuant to Section 110 of the Act [225 ILCS 422/110], on a form containing the information prescribed by the Commission or in the form of a letter.  Each notification form shall be approved by a licensed recovery manager authorized to work for the licensed repossession agency.  If the licensed repossession agency submits the written notice in the form of a letter, the letter shall provide, at minimum, the following information:

1)         The full legal name of the licensed repossession agency as it appears on its repossession agency license issued by the Commission or, if applicable, an authorized trade name as it appears on its repossession agency license;

2)         The licensed repossession agency's license number;

3)         Date of the repossession;

4)         Date of the notice;

5)         Description of the collateral repossessed;

6)         The address and phone number of the location where the debtor can come to claim any personal property in the licensed repossession agency's possession;

7)         The signature of a licensed recovery manager; and

8)         The signing licensed recovery manager's license number.

b)         If the debtor, or an authorized individual with a notarized release from the debtor, retrieves personal effects or property not covered by a security agreement from the repossessed collateral prior to the time when written notice to the debtor is due pursuant to Section 110 of the Act, the licensed repossession agency is not required to send written notice as prescribed in Section 110 of the Act.  A personal property receipt, signed by the debtor or an authorized individual pursuant to the notarized release from the debtor, must be placed in the licensed repossession agency's records for a minimum of 2 years and made available for inspection upon request by the Commission.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.250  Posting Requirements

a)         Signs meeting specifications listed in this Section shall be posted on each repossession agency's main office and branch office.

b)         Each sign must contain the repossession agency's:

1)         Full legal name as it appears on the repossession agency's license;

2)         Business address;

3)         Business phone number; and

4)         Hours of operation.

c)         Characters must be at least 3 inches in height and in colors contrasting with the background of the sign.

d)         Signs must be free of any natural or man-made interference and visible both during the day and night.

Section 1480.260  Security of Secured Storage Facilities

a)         Each secured storage facility shall be a secure building or have a perimeter that is secured by a fence with locking gates that make the area not accessible to the public and prevent unauthorized access to repossessed collateral or personal property.  All gates shall remain locked at all times but may be temporarily opened to allow for authorized access.

b)         Only the following individuals shall have access to repossessed collateral and personal property while it is being stored by the repossession agency:

1)         Persons employed by the repossession agency and agents of the repossession agency;

2)         Other persons lawfully entitled to access to repossessed collateral or to the secured storage facility; and

3)         Collateral owners or agents of collateral owners while either:

A)        Accompanied by an employee or agent of the repossession agency; or

B)        Under electronic surveillance by an employee or agent of the repossession agency.

Section 1480.270  Ownership

The licensed repossession agency must own, or have exclusive possession of under a written lease with a term of at least 1 year, a main office and, if applicable, branch offices, with secured storage facilities.  At the time of filing an application for licensure, the following shall be provided:

a)         If the property is owned, proof of ownership of the property, including but not limited to mortgage documents, tax bill or a deed; or

b)         If the property is leased, a copy of a valid written lease with a term of 1 year.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.280  Identification of Offices and Secured Storage Facilities

A repossession agency's main office and each branch office with a secured storage facility shall be identified as a property of the repossession agency by one or more signs meeting the specifications of Section 1480.250.

Section 1480.290  Maintenance of Records

Records of all repossessed collateral and personal effects or other property not covered by a security agreement in the possession of a repossession agency as a result of a repossession shall be kept and maintained at a repossession agency office located on the same premises as the secured storage facility where the collateral or personal effects or other property not covered by a security agreement is stored.  Records must be made available for inspection by Commission staff. 

Section 1480.300  Storage of Non-Collateral Property

Any personal effects or other property not covered by a security agreement in possession of a repossession agency as a result of a repossession shall be stored in a secure manner at a main office or a branch office with a secured storage facility. 

Section 1480.310  Compliance Inspection

A compliance inspection shall be conducted by Commission staff prior to issuance of a license. The inspection shall include, but not be limited to, a review of:

a)         Physical characteristics of the secured storage facility, including but not limited to the size, location and overall condition of the facility;

b)         Types of repossessed collateral and personal property stored;

c)         Proper storage of repossessed collateral and personal property;

d)         Proper posting of signs;

e)         Method of protection from fire;

f)         Method of protection from theft or burglary;

g)         Method of protection from potential damage to the stored repossessed collateral and personal property by vermin, insects or water;

h)         Proper documentation of the repossessed collateral being stored; and

i)          Proper inventory of personal property removed from repossessed collateral.

Section 1480.320  Registering Remote Storage Locations

A repossession agency shall register all remote storage locations with the Commission on forms containing the information prescribed by the Commission.  Incomplete or incorrect forms shall be refused or rejected by the Commission.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.330  Security of the Remote Storage Locations

a)         Each remote storage location shall be a secure building or have a perimeter that is secured by a fence with locking gates that make the area not accessible to the public and prevent unauthorized access to repossessed collateral.  All gates shall remain locked at all times but may be temporarily opened to allow for authorized access.  

b)         Only persons employed by the repossession agency and agents of the repossession agency shall have access to repossessed collateral while it is being stored by the repossession agency at a remote storage location.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.340  Ownership of the Remote Storage Locations

The licensed repossession agency must own, or have exclusive possession of under a written lease with a term of at least 1 year, a remote storage location.  At the time of filing an application for registration, the following shall be provided:

a)         If the property is owned, proof of ownership of the property, including but not limited to mortgage documents, tax bill or a deed; or

b)         If the property is leased, a copy of a valid written lease with a term of at least 1 year.

Section 1480.350  Location and Purpose

a)         Each remote storage location shall be located in a commercially zoned area physically located in Illinois.

b)         Each remote storage location shall be utilized solely to store repossessed collateral.

Section 1480.370  Maintenance of Records

Records of all repossessed collateral located at remote storage locations must be kept and maintained at the nearest branch office or main office and made available for inspection by authorized Commission staff.

Section 1480.380  Compliance Inspection

A compliance inspection shall be conducted by the Commission staff prior to issuance of a registration. The inspection shall include, but not be limited to, a review of:

a)         Physical characteristics of the remote storage location, including but not limited to the size, location and overall condition of the remote storage;

b)         Types of repossessed collateral stored;

c)         Proper storage of repossessed collateral;

d)         Method of protection from fire;

e)         Method of protection from theft or burglary;

f)         Method of protection from potential damage to the stored repossessed collateral by vermin, insects or water; and

g)         Proper documentation of the repossessed collateral being stored.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.390  Disciplinary Actions with Respect to Repossession Agency License Holders

The Commission may revoke or may suspend, place on probation, or take any other disciplinary action that is consistent with the Act, with regard to any repossession agency license holder if the license holder, or the sole proprietor if the license holder is a sole proprietorship, any partner of the license holder that is a partnership, any officer of the license holder that is a corporation, or any member of the license holder that is a limited liability company has been convicted of any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession.  [225 ILCS 422/80] 

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.391  Suspension or Revocation of Remote Storage Location Registrations

The Commission may suspend, revoke or take any other disciplinary action consistent with the Act with respect to any holder of a remote storage location registration for failure to file proof of insurance or any other violation of the Act or this Part.

(Source:  Added at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.392  Special Revocation Procedures

a)         The Commission shall serve, by first-class United States Mail at the mailing address of record with the Commission, notice upon a license, permit or registration holder who failed to:

1)         Pay a franchise tax, license fee or penalty or comply with any other requirements under the Business Corporation Act of 1983 [805 ILCS 5], the Limited Liability Company Act [805 ILCS 180], the Uniform Partnership Act (1997) [805 ILCS 206] and Uniform Limited Partnership Act (2001) [805 ILCS 215], causing the business entity to become dissolved or declared not in good standing or its assumed name to become inactive with the Illinois Secretary of State.

2)         Comply with Commission regulations and orders regarding the filing of proof of insurance and annual reports and the payment of penalties or fines.

b)         The notice shall advise the license, permit or registration holder of the apparent violations and state that, unless the violation is corrected within 30 days from the date the notice is served, the license, permit or registration will be suspended by operation of law without further action by the Commission.

c)         Upon suspension of the license, permit or registration, the Commission shall issue another notice to the license, permit or registration holder that shall advise of the apparent violations and state that, unless the violation is corrected within 30 days from the date of suspension, the license, permit or registration will be revoked by operation of law without further action by the Commission.

(Source:  Added at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.393  Consideration of Past Crimes in Disciplinary Hearings

When considering the suspension or revocation of a license or recovery permit on the grounds of conviction of a crime, the Commission, in evaluating the rehabilitation of the applicant and the applicant's present eligibility for a license or recovery permit, shall consider each of the following criteria:

a)         The nature and severity of the act or offense.

b)         The license holder's or recovery permit holder's criminal record in its entirety.

c)         The amount of time that has lapsed since the commission of the act or offense.

d)         Whether the license holder or recovery permit holder has complied with any terms of parole, probation, restitution, or any other sanctions lawfully imposed against him or her as of the date of the hearing, as evidenced by:  

1)         Satisfactory termination of the license or recovery permit holder's sentence;

2)         License or recovery permit holder's compliance with all requirements and conditions of parole, probation, conditional discharge, term of imprisonment or any other lawfully imposed sentence;

3)         License or recovery permit holder's compliance with paying any fees, fines, court costs or restitution imposed by the court as part of the sentence.

e)         If applicable, evidence of expungement proceedings.

f)         Evidence, if any, of rehabilitation submitted by the license holder or recovery permit holder [225 ILCS 422/85] such as:

1)         Bestowment onto the license or recovery permit holder of certifications or commendations subsequent to a conviction for a crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession [225 ILCS 422/80] that demonstrate a decrease in propensity toward the behavior that previously caused the applicant to become convicted;

2)         License or recovery permit holder's successful participation in special programs or counseling groups designed to decrease the propensity toward the behavior that previously caused the applicant to become convicted of a crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession [225 ILCS 422/80].

(Source:  Added at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.400  Vehicle Identification Requirement (Repealed)

(Source:  Repealed at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.410  Responsibility and Liability

a)         The repossession agency shall be responsible and liable for all operations under the authority of its license and for supervision and control of all equipment and personnel used in its operations.

b)         The repossession agency shall be responsible and liable for acts of its personnel under the authority of its license, regardless of the employee or independent contractor classifications.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.415  Notification to Law Enforcement Prior to Repossession

a)         Prior to a repossession, the licensed repossession agency or repossession agency employee shall notify the appropriate law enforcement agency located in the jurisdiction in which the licensed repossession agency or repossession agency employee plans to perform the repossession. [225 ILCS 422/105]

b)         The following information shall be provided as part of the notification:

            1)         Name of the repossession agency;

            2)         License number of the repossession agency;

3)         Color, make, model, vehicle identification number (VIN) if applicable, serial number if applicable, and a general description of collateral to be repossessed.

c)         Acceptable notification shall be made by the means of a phone, fax, email or other electronic communication.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.416  Notification to Law Enforcement Following Repossession

a)         Within 30 minutes after the completion of the repossession, the licensed repossession agency or repossession agency employee must notify the appropriate law enforcement agency that the repossession has occurred within its jurisdiction.  [225 ILCS 422/105]

b)         The following information shall be provided as part of the notification:

1)                  Name of the repossession agency;

2)                  License number of the repossession agency;

3)                  Color, make, model, vehicle identification number (VIN) if applicable, serial number if applicable, and a general description of collateral repossessed;

4)         Date and time the repossession was completed.

c)         Acceptable notification shall be made by the means of a phone, fax, email or other electronic communication.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.417  Record of Notifications Made to Law Enforcement

a)         Repossession agencies must maintain records documenting the notifications made to law enforcement.

b)         The records shall include:

1)         Date and time of each notification;

2)         Law enforcement agency notified;

3)         All of the information required to be provided pursuant to Sections 1480.415 and 1480.416.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.418  Notification of Conviction to the Commission

a)         The repossession agency must notify the Commission in writing of its conviction for any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession.  [225 ILCS 422/80]

b)         The sole proprietor of a repossession agency that is a sole proprietorship, any partner of a repossession agency that is a partnership, any corporate officer of a repossession agency that is a corporation or any member of a repossession agency that is a limited liability company must notify the Commission in writing of his or her conviction for any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession.  [225 ILCS 422/80]

c)         Any Class "MR" license holder, Class "E" recovery permit holder and Class "EE" recovery permit holder must notify the Commission in writing of his or her conviction for any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession.  [225 ILCS 422/80]

d)         Upon notification and verification of a conviction for any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession [225 ILCS 422/80] of a Class "MR" license holder or a Class "E" or Class "EE" recovery permit holder, the Commission shall immediately suspend the respective license or recovery permit.  The matter shall be set for an administrative hearing before an Administrative Law Judge to assist the Commission in determining whether the license or permit holder is unfit to hold the license or recovery permit by reason of conviction.

e)         Upon notification and verification of a conviction for any crime under the laws of the United States or any state or territory of the United States that is a felony, a misdemeanor an essential element of which is dishonesty, or a crime related to the practice of the profession [225 ILCS 422/80] of the repossession agency license holder or the sole proprietor if the license holder is a sole proprietorship, any partner of the license holder that is a partnership, any officer of the license holder that is a corporation or any member of the license holder that is a limited liability company, the Commission shall immediately suspend the repossession agency license.  The matter shall be set for an administrative hearing before an Administrative Law Judge to assist the Commission in determining whether the license holder is unfit to hold the license by reason of conviction.

f)         Notification of conviction to the Commission shall be made on forms and contain the information prescribed by the Commission.  Incomplete or incorrect notifications shall be refused or rejected by the Commission.  Notification of convictions must be received by the Commission no later than 7 days after the entry of judgment of conviction.  Notifications must be filed with the Commission's Transportation Division at the following address:

Illinois Commerce Commission

Transportation Division

527 East Capitol Avenue

Springfield, Illinois 62701

(Source:  Added at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.420  Enforcement of the Act (Repealed)

(Source:  Repealed at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.430  Enforcement Proceedings and Imposition of Sanctions

When the Commission has reason to believe that a person has committed a violation of the Act or this Part, it may conduct an operating practices proceeding to impose sanctions including, but not limited to, the suspension or revocation of the respondent's license, recovery permit or registration, the assessment of civil penalties, or a combination of sanctions consistent with the Act.  In deciding whether to conduct an operating practices proceeding, the Commission will consider, among other factors, the severity of the offense and the probability of guilt.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.440  Informal Settlement in Lieu of Formal Proceeding

Prior to the institution of formal enforcement proceedings by the Commission staff before the Commission, a respondent shall be given the opportunity to settle, at an informal staff level, any controversy regarding the respondent's alleged illegal activity under the Act or this Part.

a)         The Notice of Alleged Violation and Opportunity to Settle (NAVOS) setting forth the alleged violations of the Act or this Part shall be served on the respondent and shall specify the procedure for the respondent to exercise his or her option to settle.  Included will be instructions to telephone or write to the specific Commission staff member assigned to the case to request and schedule a settlement conference if the respondent chooses to exercise the settlement option.  The respondent shall have 20 days from the date of service to exercise his or her option to settle.

b)         Monetary settlements specified in the NAVOS shall be based upon the minimum $100 and maximum amounts per violation set forth in Section 80 of the Act.

c)         An amount less than the minimum established in the NAVOS may be agreed upon between the staff of the Commission and the respondent during informal settlement discussions.  The agreed upon amount shall be incorporated in a stipulated settlement agreement presented to the Commission for approval or rejection according to Section 1480.440.

d)         Stipulated Settlement Agreements.  The Commission staff shall have the power to negotiate and sign proposed settlements of enforcement proceedings by written stipulation.  The Commission may accept a reasonable monetary settlement and any other reasonable terms stipulated between the respondent and staff, with or without a finding of violations at hearing.  The Commission shall review the proposed settlements within 30 days after a stipulation is signed by the parties. Unless a stipulation is suspended for review by order of the Commission served within 30 calendar days after it was signed by the parties, it shall be deemed accepted by operation of law.  A stipulation that has been suspended for review shall likewise be deemed accepted by operation of law unless it is rejected by order of the Commission served within 45 days after it was suspended.  A stipulation that is deemed accepted under this subsection shall become effective and shall be enforceable in the same manner as an order of the Commission.  Orders suspending proposed settlements shall cite reasons for suspension that are specific to the case.  Orders rejecting proposed settlements shall recite the grounds on which the settlements are found to be unreasonable and describe the evidence that supports the findings.

e)         Settlement amounts shall be determined upon consideration of the respondent's past compliance history, cooperation with authorities in the resolution of the dispute, willingness to comply with the Act and this Part, the type of violation, the amount of revenue realized from the unlawful activities, and the number of violations.

f)         If a settlement agreement is not reached, the matter will be set for hearing pursuant to the Act and the Commission's Rules of Practice (83 Ill. Adm. Code 200) before an Administrative Law Judge.

g)         The respondent's right to a hearing and his or her position at hearing will not be prejudiced in any way if settlement is not reached.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.450  Initiation of Operating Practices Proceeding

a)         An operating practices proceeding shall be initiated by Commission staff through the issuance of a Complaint that shall set forth the alleged violations of the Act.  The Complaint and any notice in the subsequent proceedings may be served by personal delivery on the respondent, or by registered or certified mail to the address last specified by the respondent in the last notification to the Commission. [225 ILCS 422/140]

b)         The respondent shall have 30 days from the date of service of the Complaint to file a verified responsive pleading with the Commission.  Failure to respond within the specified time shall result in the matter being set for hearing.  Notice of the time, date and place for the hearing shall be served to the respondent at least 30 days before the date set for the hearing. The written responsive pleading shall be served by personal delivery, certified delivery, or certified or registered mail to the Commission.  [225 ILCS 422/140]

c)         At the time and place fixed in the notice, the Commission shall proceed to hear the charges and the parties or their counsel shall be accorded ample opportunity to present such statements, testimony, evidence, and argument as may be pertinent to the charges or to the defense thereto.  The Commission may continue such hearing from time to time.  At the discretion of the Commission, the respondent's license, registration or recovery permit may be suspended or revoked, if the evidence constitutes sufficient grounds for such action under the Act.  [225 ILCS 422/140]

d)         All matters set for hearing as a result of this Section shall be conducted in accordance with the Act and the Commission's Rules of Practice (83 Ill. Adm. Code 200). The Commission's Rules of Practice shall be utilized in addition to, but not in lieu of, the provisions of the Act.  In case of a conflict between the provisions of the Act and the Commission's Rules of Practice, the Act controls.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.460  Failure to Appear at Hearing

Respondent's failure to appear at the hearing set for the alleged violations at issue shall constitute a waiver of respondent's right to appear to contest the alleged violations.  The Administrative Law Judge shall find a respondent that fails to appear at hearing in default.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.470  Service of Order

Orders shall be served upon the respondent by personal delivery to the respondent, or by registered or certified mail to the address last specified by the respondent in the last notification to the Commission.  [225 ILCS 422/140]

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.480  Standards for the Assessment of Civil Penalties

a)         In determining whether to assess civil penalties, the Commission shall consider the following factors:

1)         The lack of mitigating circumstances, including:

A)        Whether the violation's occurrence was attributable to causes beyond the respondent's control, rather than to respondent's fault or intent; and

B)        Whether the violation's occurrence was attributable to action by the Commission that precluded compliance;

2)         The lack of good faith or intent, including:

A)        The past compliance history of the respondent; and

B)        Whether a violation is the result of willful conduct or comes about through mistake, inadvertence or negligence;

3)         The financial ability of the respondent to pay the penalties assessed;

4)         The degree to which the violative conduct was harmful to the public; and

5)         The financial benefit accruing to the respondent as a result of its illegal activities. 

b)         The Commission's consideration shall be limited to only those violations for which evidence exists. It shall be the burden of the respondent to establish a compelling reason why the civil penalty should be mitigated.

c)         Persons found to have committed one or more violations for which civil penalties may be assessed shall be entitled to have those civil penalties determined in accordance with the following procedure:

1)         A numerical value from 0 to 5 shall be assigned to each of the following factors:

A)        Lack of mitigating circumstances;

B)        Lack of good faith or intent;

C)        Financial ability to pay;

D)        Degree to which the violative conduct was harmful to the public; and

E)        Financial benefit accruing to the respondent as a result of its illegal activities.

2)         The values assigned shall be summed.  The sum shall be divided by the maximum possible weighted value per violation (25) and then multiplied by $2,500 per violation.  The result will be the civil penalty the Commission shall assess against the respondent.

d)         Notwithstanding subsection (c), in the context of an Informal Settlement in Lieu of Formal Proceeding, when the settlement would conserve the resources of the Commission and expedite the disposition of the Commission's caseload without jeopardizing the regulatory goals of the Act and this Part, a lesser penalty may be assessed.

e)         Notwithstanding subsection (c), in the context of enforcement by administrative citations in accordance with Subpart U, the Commission may establish reduced maximum fines for violations, and the fine imposed shall not exceed the amount of the fine indicated on the administrative citation.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.490  Payment of Civil Penalties

Whenever the Commission assesses a civil penalty under this Part:

a)         Payment of the civil penalty shall be made by certified or cashier's check, money order, or in installments by any of these means.

b)         All remittances shall be made payable to the Illinois Commerce Commission/TRF and sent to:

Illinois Commerce Commission

Transportation Division

527 East Capitol Avenue

Springfield, Illinois 62701

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.500  Standards

In deciding whether to place a license, registration or permit holder on probation, the Commission shall consider the following factors:

a)         Lack of good faith or intent, including:

1)         Past compliance history of the license, registration or permit holder; and

2)         Whether a violation is the result of willful conduct or comes about through mistake, inadvertence or negligence;

b)         Degree to which the violative conduct was harmful to the public;

c)         Financial benefit accruing to the license, registration or permit holder as a result of its illegal activities;

d)         Mitigating circumstances, including:

1)         Whether the violation's occurrence was attributable to causes beyond the license, registration or permit holder's control rather than to license, registration or permit holder's fault or intent; and

2)         Whether the violation's occurrence was attributable to action by the Commission that precluded compliance;

e)         Whether probation would deprecate the seriousness of the license, registration or permit holder's conduct; and

f)         Any other factors the Commission deems appropriate.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.510  Time and Conditions of Probation

When a license, registration or permit holder is placed on probation, the Commission shall impose a period and shall specify the conditions of probation.  Conditions of probation shall be that the license, registration or permit holder:

a)         Not violate any criminal statute of any jurisdiction;

b)         Not violate the Act or this Part;

c)         If in violation of the Act or this Part, comply with the Act or this Part and cease and desist from further or any future violations of the Act or this Part;

d)         If engaging in dishonorable, unethical or unprofessional conduct of a character likely to deceive, defraud or harm the public, cease and desist from that conduct in the future;

e)         If convicted of any crime under the laws of the United States or any U.S. state or territory that is a felony, misdemeanor with an essential element of dishonesty, or crime that is related to the practice of the profession, comply with all the terms of the sentence, probation, conditional discharge, etc.;

f)         If in violation of any court order regarding payment of child support or noncompliance with certain processes relating to paternity or support proceedings, comply with the court order or the certain processes and cease and desist from further or future violations of the court order;

g)         If practicing or attempting to practice under a name other than the full name shown on the license, registration or recovery permit or any other legally authorized name, cease and desist from further or future such practices and comply with all the applicable laws and regulations;

h)         If soliciting professional services by using false or misleading advertising, cease and desist from further or future false or misleading advertising and comply with all the applicable laws and regulations;

i)          The Commission may, in addition, impose other reasonable conditions relating to the nature of the offense or the rehabilitation of the license, registration or recovery permit holder.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.520  Termination of Probation

a)         The Commission may terminate probation upon violation of a condition of probation or if warranted by the conduct of the license, registration or permit holder.  The Commission shall conduct a hearing of the alleged violation or conduct and shall notify the license, registration or permit holder of the date, time and place of termination of the probation hearing. 

b)         The Commission may, after termination of probation, refuse to issue or renew or may revoke any license, registration or recovery permit or may suspend, fine or take any disciplinary action that the Commission may deem proper. 

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.530  Administrative Citations

a)         Violations of the Act and this Part shall be enforceable by administrative citations under this Subpart or as otherwise provided by in the Act or this Part.

b)         Upon issuance of an administrative citation for a violation of the Act or this Part, Commission staff shall serve, on the date of the violation or anytime thereafter, the administrative citation upon the person or entity or the person's or entity's authorized agent for service of process and shall include, at minimum, the following information:

1)         Contact information of the alleged violator;

2)         Location, time and date of the offense cited;

3)         Statement specifying the provision of which the person was in violation;

4)         Monetary penalty;

5)         Signature of the Enforcement Officer or Investigator issuing the citation; and

6)         Instructions for settling the citation or appearing at hearing.

c)         Any person served with an administrative citation shall have 30 days from the date of service of the administrative citation to settle the matter for the minimum monetary penalty indicated for the offense cited on the administrative citation.

d)         If a person served an administrative citation does not settle within 30 days from the service date of the administrative citation, the administrative citation shall constitute a complaint for civil penalties and this matter shall be set for a formal oral hearing before an Administrative Law Judge at a date, time and location to be specified by the Commission.

e)         Respondent's failure to appear at the hearing set for the alleged violations at issue, shall constitute a waiver of respondent's right to appear to contest the alleged violations.  The Administrative Law Judge shall rule on the alleged violations without further process.

f)         Any party of record to the administrative citation hearing seeking appeal of the Administrative Law Judge's ruling shall file a motion to reopen and reconsider.

1)         The motion must be filed via United States mail at the following address:

Illinois Commerce Commission

Processing Department

527 East Capitol Avenue

Springfield, Illinois 62701

2)         The motion must set forth:

                                                                        A)                Specific grounds and reasons for the motion;

                                                                        B)                Specific issues for which the motion is sought;

                                                                        C)                Brief statement of proposed additional evidence, if any, and an explanation why the evidence was not previously adduced; and

                                                                        D)                Relief sought.

3)         A motion alleging new facts shall be verified.

4)         The Administrative Law Judge shall grant or deny the motion, in whole or in part. If Administrative Law Judge grants the motion in whole or in part, the matter shall be set for hearing at a time and date specified by the Commission.

g)         A motion for rehearing pursuant to Section 160 of the Act, which shall constitute a final remedy in administrative citation matters before the Commission, shall be filed by any party of record to an administrative citation hearing seeking appeal of the Administrative Law Judge's ruling on a motion to reopen and reconsider or the Administrative Law Judge's ruling on a citation at a hearing held pursuant to subsection (f)(4).

1)         The motion must set forth:

A)       Specific grounds and reasons for the motion;

B)        Specific issues for which rehearing is sought;

C)        Brief statement of proposed additional evidence, if any, and an explanation why the evidence was not previously adduced; and

D)       Relief sought.

2)         A motion alleging new facts shall be verified.

3)         The Commission shall grant or deny the motion, in whole or in part.

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)

Section 1480.540  Fees

The following fees shall apply:

(Source:  Amended at 38 Ill. Reg. 5821, effective March 14, 2014)