Illinois General Assembly - Full Text of SB3006
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Full Text of SB3006  102nd General Assembly




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1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Collateral Recovery Act is amended by
5changing Sections 35, 45, 50, and 75 as follows:
6    (225 ILCS 422/35)
7    (Section scheduled to be repealed on January 1, 2022)
8    Sec. 35. Application for repossession agency licensure.
9    (a) Application for original licensure as a repossession
10agency shall be made to the Commission in writing on forms
11prescribed by the Commission and shall be accompanied by the
12appropriate documentation and the required fee, and the fee is
14    (b) Every application shall state, in addition to any
15other requirements, (i) the name of the applicant, (ii) the
16name under which the applicant shall do business, (iii) the
17proposed location of the agency by number, street, and city,
18and (iv) the proposed location of the agency's remote storage
19location or locations by number, street, and city, (v) the
20proposed location of the Agency's branch office or branch
21offices by number, street, and city, and (vi) the usual
22business hours that the agency shall maintain.
23    (c) No license may be issued (i) in any fictitious name



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1that may be confused with or is similar to any federal, state,
2county, or municipal government function or agency, (ii) in
3any name that may tend to describe any business function or
4enterprise not actually engaged in by the applicant, (iii) in
5any name that is the same as or similar to any existing
6licensed company and that would tend to deceive the public,
7(iv) in any name that would tend to be deceptive or misleading,
8or (v) to any repossession agency applicant without that
9agency's location or branch office location maintaining a
10secured storage facility as defined in Section 10 of this Act.
11    (d) If the applicant for repossession agency licensure is
12an individual, then his or her application shall include (i)
13the full residential address of the applicant and (ii) either
14the sworn statement of the applicant declaring that he or she
15is the licensed recovery manager who shall be personally in
16control of the agency for which the licensure is sought, or the
17name and signed sworn statement of the licensed recovery
18manager who shall be in control or management of the agency.
19    (e) If the applicant for repossession agency licensure is
20a partnership, then the application shall include (i) a
21statement of the names and full residential addresses of all
22partners in the business and (ii) a sworn statement signed by
23each partner verifying the name of the person who is a licensed
24recovery manager and shall be in control or management of the
25business. If a licensed recovery manager who is not a partner
26shall be in control or management of the agency, then he or she



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1must also sign the sworn statement. The application shall also
2state whether any of the partners has ever used an alias.
3    (f) If the applicant for licensure as a repossession
4agency is a corporation, then the application shall include
5(i) the names and full residential addresses of all
6corporation officers and (ii) a sworn statement signed by a
7duly authorized officer of the corporation verifying the name
8of the person who is a licensed recovery manager and shall be
9in control or management of the agency. If a licensed recovery
10manager who is not an officer shall be in control or management
11of the agency, then he or she must also sign the sworn
12statement. The application shall also state whether any of the
13officers has ever used an alias.
14    (g) If the applicant for licensure as a repossession
15agency is a limited liability company, then the application
16shall include (i) the names and full residential addresses of
17all members and (ii) a sworn statement signed by each member
18verifying the name of the person who is a licensed recovery
19manager and shall be in control or management of the agency. If
20a licensed recovery manager who is not a member shall be in
21control or management of the agency, then he or she must also
22sign the sworn statement. The application shall also state
23whether any of the members has ever used an alias.
24    (h) Each individual, partner of a partnership, officer of
25a corporation, or member of a limited liability company shall
26submit with the application a copy of a valid State or U.S.



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1government-issued photo identification card one form of
2personal identification upon which must appear a photograph
3taken within one year immediately preceding the date of the
4filing of the application. An applicant who is 21 years of age
5or older seeking a religious exemption to the photograph
6requirement of this subsection shall furnish with the
7application an approved copy of United States Department of
8the Treasury Internal Revenue Service Form 4029. Regardless of
9age, an applicant seeking a religious exemption to this
10photograph requirement shall submit fingerprints in a form and
11manner prescribed by the Commission with his or her
12application in lieu of a photograph.
13    (i) No examination shall be required for licensure as a
14repossession agency by the Commission.
15    (j) The Commission may require any additional information
16that, in the judgment of the Commission, shall enable the
17Commission to determine the qualifications of the applicant
18for licensure.
19    (k) Applicants have 90 days from the date of application
20to complete the application process. If the application has
21not been completed within 90 days, then the application shall
22be denied, the fee shall be forfeited, and the applicant must
23reapply and meet the requirements in effect at the time of
25    (l) Nothing in this Section precludes a domestic or
26foreign limited liability company being licensed as a



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1repossession agency.
2    (m) A repossession agency license may be transferable upon
3prior notice to the Commission and upon completion of all
4requirements relative to the application process for
5repossession agency licensure.
6    (n) Repossessions performed in this State must be
7performed by repossession agencies, their employees, or agents
8licensed by the Commission, with the exception of financial
9institutions or the employees of a financial institution that
10are exempt under subsection (d) of Section 30 of this Act.
11(Source: P.A. 97-576, eff. 7-1-12; 98-848, eff. 1-1-15.)
12    (225 ILCS 422/45)
13    (Section scheduled to be repealed on January 1, 2022)
14    Sec. 45. Repossession agency employee requirements.
15    (a) All employees of a licensed repossession agency whose
16duties include the actual repossession of collateral must
17apply for a recovery permit. The holder of a repossession
18agency license issued under this Act, known in this Section as
19the "employer", may employ in the conduct of the business
20under the following provisions:
21        (1) No person may be issued a recovery permit who
22    meets any of the following criteria:
23            (A) Is younger than 21 years of age.
24            (B) Has been convicted of a crime identified in
25        paragraph (3) of subsection (a) of Section 80 of this



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1        Act and the Commission determines the ability of the
2        person to engage in the position for which a permit is
3        sought is impaired as a result of the conviction.
4            (C) Has had a license or recovery permit denied,
5        suspended, or revoked under this Act.
6            (D) Has not successfully completed a certification
7        program approved by the Commission.
8        (2) No person may be employed by a repossession agency
9    under this Section until he or she has executed and
10    furnished to the Commission, on forms furnished by the
11    Commission, a verified statement to be known as an
12    "Employee's Statement" setting forth all of the following:
13            (A) The person's full name, age, and residence
14        address.
15            (B) The business or occupation engaged in for the
16        5 years immediately before the date of the execution
17        of the statement, the place where the business or
18        occupation was engaged in, and the names of the
19        employers, if any.
20            (C) That the person has not had a license or
21        recovery permit denied, revoked, or suspended under
22        this Act.
23            (D) Any conviction of a felony, except as provided
24        for in Section 85.
25            (E) Any other information as may be required by
26        any rule of the Commission to show the good character,



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1        competency, and integrity of the person executing the
2        statement.
3    (b) Each applicant for a recovery permit shall have his or
4her fingerprints submitted to the Commission by a Live Scan
5fingerprint vendor certified by the Illinois State Police
6under the Private Detective, Private Alarm, Private Security,
7Fingerprint Vendor, and Locksmith Act of 2004 in an electronic
8format that complies with the form and manner for requesting
9and furnishing criminal history record information as
10prescribed by the Illinois State Police. These fingerprints
11shall be checked against the Illinois State Police and Federal
12Bureau of Investigation criminal history record databases now
13and hereafter filed. The Commission shall charge applicants a
14fee for conducting the criminal history records check, which
15shall not exceed the actual cost of the records check. The
16Illinois Commerce Commission Police shall furnish, pursuant to
17positive identification, records of Illinois convictions to
18the Commission. The Commission, in its discretion, may allow
19an applicant who does not have reasonable access to a
20designated vendor to provide his or her fingerprints in an
21alternative manner. The Commission, in its discretion, may
22also use other procedures in performing or obtaining criminal
23history records checks of applicants. Instead of submitting
24his or her fingerprints, an individual may submit proof that
25is satisfactory to the Commission that an equivalent security
26clearance has been conducted.



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1    (c) Qualified applicants shall purchase a recovery permit
2from the Commission and in a form that the Commission
3prescribes. The Commission shall notify the submitting person
4within 14 10 days after receipt of a criminal history records
5check from the Illinois Commerce Commission Police conducted
6pursuant to subsection (b) the application of its intent to
7issue or deny the recovery permit or set the matter for an
8administrative hearing before an administrative law judge to
9assist the Commission in determining whether the applicant is
10fit pursuant to Section 80. The holder of a recovery permit
11shall carry the recovery permit at all times while actually
12engaged in the performance of the duties of his or her
13employment. No recovery permit shall be effective unless
14accompanied by a license issued by the Commission. Expiration
15and requirements for renewal of recovery permits shall be
16established by rule of the Commission. Possession of a
17recovery permit does not in any way imply that the holder of
18the recovery permit is employed by any agency unless the
19recovery permit is accompanied by the employee identification
20card required by subsection (e) of this Section.
21    (d) Each employer shall maintain a record of each employee
22that is accessible to the duly authorized representatives of
23the Commission. The record shall contain all of the following
25        (1) A photograph taken within 10 days after the date
26    that the employee begins employment with the employer. The



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1    photograph shall be replaced with a current photograph
2    every 3 calendar years.
3        (2) The Employee's Statement specified in paragraph
4    (2) of subsection (a) of this Section.
5        (3) All correspondence or documents relating to the
6    character and integrity of the employee received by the
7    employer from any official source or law enforcement
8    agency.
9        (4) In the case of former employees, the employee
10    identification card of that person issued under subsection
11    (e) of this Section.
12    (e) Every employer shall furnish an employee
13identification card to each of his or her employees. This
14subsection (e) shall not apply to office or clerical
15personnel. This employee identification card shall contain a
16recent photograph of the employee, the employee's name, the
17name and agency license number of the employer, the employee's
18personal description, the signature of the employer, the
19signature of that employee, the date of issuance, and an
20employee identification card number.
21    (f) No employer may issue an employee identification card
22to any person who is not employed by the employer in accordance
23with this Section or falsely state or represent that a person
24is or has been in his or her employ. It is unlawful for an
25applicant for registration to file with the Commission the
26fingerprints of a person other than himself or herself or to



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1fail to exercise due diligence in resubmitting replacement
2fingerprints for those employees who have had original
3fingerprint submissions returned as unclassifiable. An agency
4shall inform the Commission within 15 days after contracting
5or employing a licensed repossession agency employee. The
6Commission shall develop a registration process by rule.
7    (g) Every employer shall obtain the identification card of
8every employee who terminates employment with the employer. An
9employer shall immediately report an identification card that
10is lost or stolen to the local police department having
11jurisdiction over the repossession agency location.
12    (h) No agency may employ any person to perform any
13activity under this Act unless the person possesses a valid
14license or recovery permit under this Act.
15    (i) If information is discovered affecting the
16registration of a person whose fingerprints were submitted
17under this Section, then the Commission shall so notify the
18agency that submitted the fingerprints on behalf of that
20    (j) A person employed under this Section shall have 15
21business days within which to notify the Commission of any
22change in employer, but may continue working under any other
23recovery permits granted as an employee or independent
24contractor. A recovery employee may work under the recovery
25permit for multiple licensed repossession agencies.
26    (k) This Section applies only to those employees of



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1licensed repossession agencies whose duties include actual
2repossession of collateral.
3    (l) An applicant who is 21 years of age or older seeking a
4religious exemption to the photograph requirement of this
5Section shall furnish with his or her application an approved
6copy of United States Department of the Treasury Internal
7Revenue Service Form 4029. Regardless of age, an applicant
8seeking a religious exemption to this photograph requirement
9shall submit fingerprints in a form and manner prescribed by
10the Commission with his or her application in lieu of a
12(Source: P.A. 100-286, eff. 1-1-18; 100-948, eff. 1-1-19.)
13    (225 ILCS 422/50)
14    (Section scheduled to be repealed on January 1, 2022)
15    Sec. 50. Fees.
16    (a) The license and permit fees required under this Act
17are as follows:
18        (1) Class "R" license (recovery agency), $825.
19        (2) Class "RR" license (branch office), $425.
20        (3) Class "MR" license (recovery agency manager),
21    $325.
22        (4) Class "E" recovery permit, $75.
23        (5) Class "EE" recovery permit (recovery agent
24    intern), $75.
25    An agency shall submit an application to register any



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1remote storage location or locations. The Commission shall
2develop by rule the requirements for registering remote
3storage locations. The fee for each registration shall not
4exceed $300 as set by the Commission.
5    (b) The Commission may establish by rule a fee for the
6replacement or revision of a license or recovery permit.
7    (c) The fees set forth in this Act or by rule Section must
8be paid by certified check or money order, or at the discretion
9of the Commission, by agency check at the time of application.
10The Commission, at its discretion, may also allow for the
11submission of electronic payments. An applicant filing an
12application, registration, or form that carries a fee, must
13pay the associated fee at the time the application,
14registration, or form is filed. Once paid, all fees are
15non-refundable An applicant for a Class "E", Class "EE", or
16Class "MR" license or permit must pay the license or permit fee
17at the time the application is made. If a license or permit is
18revoked or denied, or if an application is withdrawn, then the
19license or permit fee shall not be refunded.
20(Source: P.A. 97-576, eff. 7-1-12.)
21    (225 ILCS 422/75)
22    (Section scheduled to be repealed on January 1, 2022)
23    Sec. 75. Licenses and recovery permits; renewals;
24restoration; person in military service.
25    (a) An original Class "R" license, Class "RR" license, and



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1Class "MR" license shall expire 2 years after the date of
3    (b) An original Class "E" recovery permit and Class "EE"
4recovery permit shall expire one year after the date of
6    (c) A renewal Class "R" license, Class "RR" license and
7Class "MR" license shall expire 2 years after the date of
9    (d) A renewal Class "E" recovery permit and Class "EE"
10recovery permit shall expire one year after the date of
12    (e) The following are guidelines for the classes of
13licensure and registration:
14        (1) Any person, firm, company, partnership, or
15    corporation that engages in business as a recovery agency
16    shall have a Class "R" license. A Class "R" license is
17    valid for only one location.
18        (2) Each branch office of a Class "R" agency shall
19    have a Class "RR" license.
20        (3) Any individual who performs the services of a
21    manager for a Class "R" recovery agency or a Class "RR"
22    branch office must have a Class "MR" license.
23        (4) Any individual who performs recovery services as a
24    repossession agency employee for a Class "R" recovery
25    agency or a Class "RR" branch office must have a Class "E"
26    recovery permit.



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1        (5) Any individual who performs repossessions as an
2    intern under the direction and control of a designated,
3    sponsoring Class "E" recovery permit or a designated,
4    sponsoring Class "MR" license shall have a Class "EE"
5    recovery permit.
6        (6) An individual shall have a Class "MR" or Class "E"
7    recovery permit if he or she owns or is an employee of a
8    Class "R" agency or Class "RR" branch office.
9        (7) Class "MR", Class "E", and Class "EE" licenses and
10    recovery permits are not transferable.
11    (f) At least 90 days prior to the expiration of a license
12or recovery permit, the Commission shall send mail to the
13license or permit holder a renewal notice form in the form and
14manner prescribed by the Commission. The license holder or
15recovery permit holder must complete and submit a mail the
16renewal application form to the Commission, pay any fines
17assessed, and pay any renewal fee required by the Commission.
18Applications for renewal of a license or permit shall be filed
19with the Commission no earlier than 90 days, and not later than
2045 days, prior to the expiration of a license or permit. When a
21license holder or permit holder has made such timely and
22sufficient application for the renewal of a license or
23recovery permit, the existing license or recovery permit shall
24continue in full force and effect until the final agency
25decision on the application has been made, unless a later date
26is fixed by order of a reviewing court.



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1    (g) Any person or entity that has permitted a license or
2recovery permit to expire may have that license or recovery
3permit restored by making an application to the Commission
4within one year after the expiration of a repossession
5agency's license or a qualified manager license or within 30
6days after the expiration of a recovery permit, filing proof
7acceptable to the Commission of fitness to have the license or
8recovery permit restored, and paying the required restoration
9fee. However, any person whose license or recovery permit
10expired while (i) in federal service on active duty with the
11Armed Forces of the United States or called into service or
12training with the State militia or (ii) in training or
13education under the supervision of the United States
14preliminary to induction into military service may have his or
15her license or recovery permit renewed or restored without
16paying any lapsed renewal fees, if within 2 years after
17honorable termination of the service, training, or education,
18except under condition other than honorable, he or she
19furnishes the Commission with satisfactory evidence to the
20effect that he or she has been so engaged and that the service,
21training, or education has been so terminated.
22    (h) A suspended repossession agency license, recovery
23manager license, or recovery permit is subject to expiration
24as set forth in this Section. Renewal of a certificate or
25registration card does not entitle the license holder or
26recovery permit holder, while the license or recovery permit



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1remains suspended and until it is reinstated, to engage in the
2licensed or permitted activity.
3    (i) A revoked repossession agency license, recovery
4manager license, or recovery permit is subject to expiration
5as set forth in this Section; however, it may not be renewed.
6If a revoked license or recovery permit is reinstated after
7its expiration, then the license holder or recovery permit
8holder, as a condition of reinstatement, shall pay a
9reinstatement fee in an amount equal to the renewal fee in
10effect on the last regular renewal date prior to the date on
11which the license or recovery permit is reinstated and any
12additional delinquency fee required by the Commission.
13    (j) Any person or entity that notifies the Commission, in
14writing on forms prescribed by the Commission, may place a
15license or recovery permit on inactive status and shall be
16excused from the payment of renewal fees until the person or
17entity notifies the Commission in writing of the intention to
18resume active practice. Any person or entity requesting that a
19license or recovery permit be changed from inactive to active
20status shall be required to pay the current renewal fee.
21    (k) Any repossession agency license holder, recovery
22manager license holder, or recovery permit holder whose
23license or recovery permit is nonrenewed or on inactive status
24shall not engage in the practice of recovery in this State or
25use the title or advertise that he, she, or it performs the
26services of a licensed repossession agency, licensed recovery



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1manager, or repossession agency employee.
2    (l) Any person violating subsection (k) of this Section
3shall be considered to be operating a repossession agency
4without a license, acting as a recovery manager without a
5license, or acting as a repossession agency employee without a
6recovery permit and is subject to the disciplinary provisions
7of this Act.
8    (m) A repossession agency license, recovery manager
9license, or recovery permit that is not renewed within 3 years
10after its expiration may not be renewed, restored, reinstated,
11or reissued thereafter. The holder of the license or recovery
12permit may obtain a new license or recovery permit only upon
13compliance with all of the provisions of this Act concerning
14the issuance of original licenses or recovery permits.
15(Source: P.A. 97-576, eff. 7-1-12.)