Full Text of SB1306 97th General Assembly
SB1306ham001 97TH GENERAL ASSEMBLY | Rep. Frank J. Mautino Filed: 5/18/2011
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| 1 | | AMENDMENT TO SENATE BILL 1306
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1306 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the | 5 | | Collateral Recovery Act. | 6 | | Section 5. Findings; purpose. The General Assembly finds
| 7 | | that collateral recovery practices affect public health,
| 8 | | safety, and welfare and declares that the purpose of this Act
| 9 | | is to regulate individuals and entities engaged in the business
| 10 | | of collateral recovery for the protection of the public. | 11 | | Section 10. Definitions. In this Act: | 12 | | "Assignment" means a written authorization by a legal
| 13 | | owner, lien holder, lessor, lessee, or licensed repossession | 14 | | agency authorized by a legal owner, lien holder, lessor or | 15 | | lessee to locate or
repossess, involuntarily or voluntarily, |
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| 1 | | any collateral, including, but not limited to, collateral
| 2 | | registered under the Illinois Vehicle Code that is subject to a
| 3 | | security agreement that contains a repossession clause or is | 4 | | the subject of a rental or lease agreement. | 5 | | "Assignment" also means a written authorization by an | 6 | | employer
to recover any collateral entrusted to an employee or | 7 | | former
employee if the possessor is wrongfully in the | 8 | | possession of
the collateral. A photocopy, facsimile copy, or | 9 | | electronic copy
of an assignment shall have the same force and | 10 | | effect as an
original written assignment.
| 11 | | "Branch office" means each additional office and secured | 12 | | storage facility location of a repossession agency (i) located | 13 | | in and conducting business within the State of Illinois and | 14 | | (ii) operating under the same name as the repossession agency | 15 | | where business is actively conducted or is engaged in the | 16 | | business authorized by the licensure. Each branch office must | 17 | | be individually licensed. | 18 | | "Collateral" means any vehicle, boat, recreational
| 19 | | vehicle, motor home, motorcycle, or other property
that is | 20 | | subject to a security, lease, or rental agreement.
| 21 | | "Commission" means the Illinois Commerce Commission. | 22 | | "Debtor" means any person or entity obligated under a | 23 | | lease, rental, or security
agreement. | 24 | | "Financial institution" means a bank, a licensee under the | 25 | | Consumer Installment Loan Act, savings bank, savings and loan | 26 | | association, or credit union organized and operating under the |
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| 1 | | laws of this or any other state or of the United States, and | 2 | | any subsidiary or affiliate thereof. | 3 | | "Legal owner" means a person holding (i) a security
| 4 | | interest in any collateral that is subject to a security
| 5 | | agreement, (ii) a lien against any collateral, or (iii) an
| 6 | | interest in any collateral that is subject to a lease
or rental | 7 | | agreement. | 8 | | "Licensure" means the approval of the required criteria | 9 | | that has been submitted for review in accordance with the | 10 | | provisions of this Act. | 11 | | "Licensed recovery manager" means a person who possesses a
| 12 | | valid license in accordance with the provisions of this Act and | 13 | | is in
control or management of an Illinois repossession agency. | 14 | | "Personal effects" means any property contained within
or | 15 | | on repossessed collateral, or property that is not permanently | 16 | | affixed to the collateral, that is not the property of the | 17 | | legal owner.
| 18 | | "Recovery permit" means a permit issued by the Commission | 19 | | to a repossession agency employee who has met all the | 20 | | requirements under this Act. | 21 | | "Recovery ticket" means a serialized
record obtained from | 22 | | the Commission for any
repossessed vehicle or collateral | 23 | | evidencing that any person, business, financial
institution, | 24 | | automotive dealership, or repossession agency who shows a | 25 | | recovery ticket
has paid the recovery ticket fee to the | 26 | | Commission. |
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| 1 | | "Remote storage location" means a secured storage facility | 2 | | of a licensed repossession agency designated for the storage of | 3 | | collateral that is a secure building or has a perimeter that is | 4 | | secured with a fencing construction that makes the area not | 5 | | accessible to the public. A remote storage location shall not | 6 | | transact business with the public and shall provide evidence of | 7 | | applicable insurance to the Commission that specifies the | 8 | | licensed repossession agency as the primary policy holder. A | 9 | | remote storage location shall be located in a commercially | 10 | | zoned area physically located in Illinois. | 11 | | "Repossession agency" means any person or entity | 12 | | conducting business within the State of
Illinois, that, for any | 13 | | type of consideration, engages in the business
of, accepts | 14 | | employment to furnish, or agrees to provide or provides
| 15 | | property locating services, property recovery,
recovered | 16 | | property transportation, recovered property storage, or all
| 17 | | services relevant to any of the following:
| 18 | | (1) The location, disposition, or recovery of property | 19 | | as
authorized by the self-help provisions of the Uniform
| 20 | | Commercial Code. | 21 | | (2) The location, disposition, or recovery of lost or
| 22 | | stolen property. | 23 | | (3) Securing evidence concerning repossession and | 24 | | recovery
to be used before any court, board, office, or | 25 | | investigating committee. | 26 | | (4) Inventory of property contained in or on the |
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| 1 | | collateral
or recovered property. | 2 | | (5) The possession of collateral. | 3 | | (6) The prevention of the misappropriation or
| 4 | | concealment of chattel, vehicles, goods, objects,
| 5 | | documents, or papers. | 6 | | "Repossession agency" does not include any of the | 7 | | following: | 8 | | (1) An attorney at law who is performing his or her | 9 | | duties
as an attorney at law. | 10 | | (2) The legal owner of collateral that is subject to a | 11 | | security
agreement. | 12 | | (3) An officer or employee of the United States of | 13 | | America or
of this State or a political subdivision of this | 14 | | State while the
officer or employee is engaged in the | 15 | | performance of his or
her official duties. | 16 | | (4) A qualified license or recovery permit holder when
| 17 | | performing services for, or on behalf of, a licensed | 18 | | repossession agency.
| 19 | | (5) A collection agency licensed under the Collection | 20 | | Agency Act when its activities are limited to assisting an | 21 | | owner in the recovery of property that is not collateral, | 22 | | as defined in this Act. | 23 | | "Repossession agency employee" means any person or | 24 | | self-employed independent contractor who is hired by a | 25 | | repossession agency.
| 26 | | "Secured storage facility" means an area located on the |
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| 1 | | same premises as a repossession agency office or branch office | 2 | | that is designated for the storage of collateral and is a | 3 | | secure building or has a perimeter that is secured with a | 4 | | fencing construction that makes the area not accessible to the | 5 | | public. Each repossession agency office or
branch office must | 6 | | maintain a secured storage facility.
| 7 | | "Security agreement" means an obligation, pledge,
| 8 | | mortgage, chattel mortgage, lease agreement, rental agreement, | 9 | | deposit, or lien,
given by a debtor as security for payment or | 10 | | performance of his
or her debt by furnishing the creditor with | 11 | | a recourse to be
used in case of failure in the principal | 12 | | obligation. "Security
agreement" includes a bailment where an | 13 | | employer-employee
relationship exists or existed between the | 14 | | bailor and the bailee. | 15 | | Section 15. Powers of the Commission.
| 16 | | (a) The Commission shall regulate repossession agencies | 17 | | and their
employees, managers or agents in accordance with this | 18 | | Act, and to that end may
establish reasonable requirements with | 19 | | respect to proper service and practices
relating thereto. | 20 | | (b) The Commission shall have the following powers: | 21 | | (1) To require that all employees, agents, or other | 22 | | personnel used in repossession
be employees, agents, or | 23 | | personnel of a licensed repossession agency.
| 24 | | (2) To adopt reasonable and proper rules covering the | 25 | | exercise of powers
conferred upon it by this Act, and |
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| 1 | | reasonable rules governing investigations,
hearings, and | 2 | | proceedings under this Act.
| 3 | | (3) To adopt appropriate rules setting forth the | 4 | | standards and procedures by
which it will administer and | 5 | | enforce this Act. | 6 | | (4) To create special procedures for the receipt and | 7 | | handling of consumer
complaints. | 8 | | (5) To employ such persons as are needed to administer | 9 | | and enforce this Act, in
such capacities as they are | 10 | | needed, whether as hearing examiners, special
examiners, | 11 | | enforcement officers, investigators, or otherwise.
| 12 | | (c) The staff of the Commission shall have full power and | 13 | | authority in the performance of their
official duties to enter | 14 | | into or upon any place, building, or premises of any | 15 | | repossession agency location or branch office location at any | 16 | | reasonable time for
the purpose of inspecting such agency | 17 | | operating under this Act. The Commission shall not set pricing | 18 | | fees for repossessions, personal property storage, skip | 19 | | tracing, or other related services provided by repossession | 20 | | agencies to their clients. | 21 | | Section 20. Rulemaking enforcement.
| 22 | | (a) The Commission may adopt any rules and procedures | 23 | | necessary to enforce and administer the provisions of this Act. | 24 | | (b) The Commission may, by administrative rule, modify any | 25 | | rules or procedures or adjust any Commission fees necessary to |
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| 1 | | regulate and enforce the provisions of this Act. | 2 | | Section 25. Recovery ticket. | 3 | | (a) A licensed repossession agency must purchase a recovery | 4 | | ticket from the Commission for each repossessed vehicle or | 5 | | collateral. The recovery ticket must show all of the following | 6 | | information: | 7 | | (1) The date and time of the repossession. | 8 | | (2) The Vehicle Identification Number (VIN), the make, | 9 | | the model, and the year of the vehicle or collateral | 10 | | repossessed. | 11 | | (3) The agency name, the financial institution, and the | 12 | | recovery permit number. | 13 | | (4) The name and officer identification number of the | 14 | | local law enforcement officer notified of the | 15 | | repossession. | 16 | | (b) The recovery ticket, or copy of the recovery ticket, | 17 | | must be placed with the vehicle or collateral at the time of | 18 | | repossession and must accompany the vehicle or collateral until | 19 | | it has been liquidated or returned to the lien holder or | 20 | | debtor. A copy of the recovery ticket must be kept for the | 21 | | agency's permanent file for a period of 2 years following the | 22 | | date of repossession. A copy of the recovery ticket must be | 23 | | returned to the legal owner or financial institution within 72 | 24 | | hours following the date of repossession. | 25 | | (c) A fee for the recovery ticket must be collected by the |
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| 1 | | Commission at the time of purchase. The cost for each recovery | 2 | | ticket is $10 and is nonrefundable. Recovery tickets must only | 3 | | be sold in lots of 50 and 100. Only an Illinois licensed | 4 | | repossession agency may purchase recovery tickets. | 5 | | If a repossession agency's license is revoked by the | 6 | | Commission, then the repossession agency must return any and | 7 | | all unused recovery tickets to the Commission immediately upon | 8 | | license revocation. No refund from the Commission shall be | 9 | | issued for the return of unused recovery tickets.
| 10 | | (d) Any agency or employee found to be in possession of a | 11 | | repossessed vehicle without having a valid recovery ticket is | 12 | | in violation of this Act and therefore jeopardizing the license | 13 | | of the employee or the agency that he or she is repossessing | 14 | | for. | 15 | | Section 30. License or registration required. | 16 | | (a) It shall be unlawful for any person or entity to | 17 | | repossess a vehicle or collateral in this State, attempt to | 18 | | repossess a vehicle or collateral in this State, or to hold | 19 | | himself, herself, or itself out to be a repossession agency | 20 | | unless licensed under this Act. | 21 | | (b) It shall be unlawful for any person to repossess a | 22 | | vehicle or collateral in this State, attempt to repossess a | 23 | | vehicle or collateral in this State, or to hold himself or | 24 | | herself out to be a licensed recovery manager unless licensed | 25 | | under this Act. |
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| 1 | | (c) It shall be unlawful for any person to repossess a | 2 | | vehicle or collateral in this State, attempt to repossess a | 3 | | vehicle or collateral in this State, or hold himself or herself | 4 | | out to be a repossession agency employee unless he or she holds | 5 | | a valid recovery permit issued by the Commission under this | 6 | | Act. | 7 | | (d) This Act does not apply to a financial institution or | 8 | | the employee of a financial institution when engaged in an | 9 | | activity otherwise covered by this Act if the activity is | 10 | | conducted by the employee on behalf of that financial | 11 | | institution. | 12 | | (e) This Act does not apply to a towing company or towing | 13 | | operator when an employee or agent of the creditor financial | 14 | | institution is present at the site from which the vehicle is | 15 | | towed. | 16 | | Section 35. Application for repossession agency licensure. | 17 | | (a) Application for original licensure as a repossession | 18 | | agency shall be made to the Commission in writing on forms | 19 | | prescribed by the Commission and shall be accompanied by the | 20 | | appropriate documentation and the required fee, and the fee is | 21 | | nonrefundable. | 22 | | (b) Every application shall state, in addition to any other | 23 | | requirements, (i) the name of the applicant, (ii) the name | 24 | | under which the applicant shall do business, (iii) the proposed | 25 | | location of the agency by number, street, and city, and (iv) |
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| 1 | | the proposed location of the agency's remote storage location | 2 | | or locations by number, street, and city, (v) the proposed | 3 | | location of the Agency's branch office or branch offices by | 4 | | number, street, and city, and (vi) the usual business hours | 5 | | that the agency shall maintain. | 6 | | (c) No license may be issued (i) in any fictitious name | 7 | | that may be confused with or is similar to any federal, state, | 8 | | county, or municipal government function or agency, (ii) in any | 9 | | name that may tend to describe any business function or | 10 | | enterprise not actually engaged in by the applicant, (iii) in | 11 | | any name that is the same as or similar to any existing | 12 | | licensed company and that would tend to deceive the public, | 13 | | (iv) in any name that would tend to be deceptive or misleading, | 14 | | or (v) to any repossession agency applicant without that | 15 | | agency's location or branch office location maintaining a | 16 | | secured storage facility as defined in Section 10 of this Act. | 17 | | (d) If the applicant for repossession agency licensure is | 18 | | an individual, then his or her application shall include (i) | 19 | | the full residential address of the applicant and (ii) either | 20 | | the sworn statement of the applicant declaring that he or she | 21 | | is the licensed recovery manager who shall be personally in | 22 | | control of the agency for which the licensure is sought, or the | 23 | | name and signed sworn statement of the licensed recovery | 24 | | manager who shall be in control or management of the agency. | 25 | | (e) If the applicant for repossession agency licensure is a | 26 | | partnership, then the application shall include (i) a statement |
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| 1 | | of the names and full residential addresses of all partners in | 2 | | the business and (ii) a sworn statement signed by each partner | 3 | | verifying the name of the person who is a licensed recovery | 4 | | manager and shall be in control or management of the business. | 5 | | If a licensed recovery manager who is not a partner shall be in | 6 | | control or management of the agency, then he or she must also | 7 | | sign the sworn statement. The application shall also state | 8 | | whether any of the partners has ever used an alias. | 9 | | (f) If the applicant for licensure as a repossession agency | 10 | | is a corporation, then the application shall include (i) the | 11 | | names and full residential addresses of all corporation | 12 | | officers and (ii) a sworn statement signed by a duly authorized | 13 | | officer of the corporation verifying the name of the person who | 14 | | is a licensed recovery manager and shall be in control or | 15 | | management of the agency. If a licensed recovery manager who is | 16 | | not an officer shall be in control or management of the agency, | 17 | | then he or she must also sign the sworn statement. The | 18 | | application shall also state whether any of the officers has | 19 | | ever used an alias. | 20 | | (g) If the applicant for licensure as a repossession agency | 21 | | is a limited liability company, then the application shall | 22 | | include (i) the names and full residential addresses of all | 23 | | members and (ii) a sworn statement signed by each member | 24 | | verifying the name of the person who is a licensed recovery | 25 | | manager and shall be in control or management of the agency. If | 26 | | a licensed recovery manager who is not a member shall be in |
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| 1 | | control or management of the agency, then he or she must also | 2 | | sign the sworn statement. The application shall also state | 3 | | whether any of the members has ever used an alias. | 4 | | (h) Each individual, partner of a partnership, officer of a | 5 | | corporation, or member of a limited liability company shall | 6 | | submit with the application a copy of one form of personal | 7 | | identification upon which must appear a photograph taken within | 8 | | one year immediately preceding the date of the filing of the | 9 | | application. | 10 | | (i) No examination shall be required for licensure as a | 11 | | repossession agency by the Commission. | 12 | | (j) The Commission may require any additional information | 13 | | that, in the judgment of the Commission, shall enable the | 14 | | Commission to determine the qualifications of the applicant for | 15 | | licensure. | 16 | | (k) Applicants have 90 days from the date of application to | 17 | | complete the application process. If the application has not | 18 | | been completed within 90 days, then the application shall be | 19 | | denied, the fee shall be forfeited, and the applicant must | 20 | | reapply and meet the requirements in effect at the time of | 21 | | reapplication. | 22 | | (l) Nothing in this Section precludes a domestic or foreign | 23 | | limited liability company being licensed as a repossession | 24 | | agency. | 25 | | (m) A repossession agency license may be transferable upon | 26 | | prior notice to the Commission and upon completion of all |
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| 1 | | requirements relative to the application process for | 2 | | repossession agency licensure. | 3 | | (n) Repossessions performed in this State must be performed | 4 | | by
repossession agencies, their employees, or agents licensed | 5 | | by the Commission, with the exception of financial institutions | 6 | | or the employees of a financial institution that are exempt | 7 | | under subsection (d) of Section 30 of this Act.
| 8 | | Section 37. Enforcement.
It shall be unlawful for any | 9 | | repossession agency, employee, or agent of a repossession | 10 | | agency to operate in this State without a valid license or | 11 | | recovery permit issued by the Commission. It shall be unlawful | 12 | | for any person or entity to repossess a vehicle or collateral | 13 | | in the State without a recovery ticket issued by the | 14 | | Commission. The Commission may, at any time during the term of | 15 | | the license, make inquiry into the licensee's
management or | 16 | | conduct of business to determine compliance with the provisions | 17 | | of this Act or the rules adopted pursuant to this Act. State, | 18 | | county, and local municipalities shall work in conjunction with | 19 | | the Commission in the enforcement of this Act. | 20 | | Section 40. Qualifications for recovery manager; | 21 | | identification card. | 22 | | (a) An applicant is qualified for licensure as a recovery | 23 | | manager if that person meets all of the following requirements: | 24 | | (1) Is 21 years of age or older. |
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| 1 | | (2) Has not been convicted in any jurisdiction of any | 2 | | felony or at least 10 years has passed from the time of | 3 | | discharge from any sentence imposed for a felony. | 4 | | (3) Has completed no less than 2,500 hours of actual | 5 | | compensated collateral recovery work as an employee of a | 6 | | repossession agency, a financial institution, or a vehicle | 7 | | dealer within the 5 years immediately preceding the filing | 8 | | of an application, acceptable proof of which must be | 9 | | submitted to the Commission. | 10 | | (4) Has submitted to the Commission 2 sets of | 11 | | fingerprints, which shall be checked against the | 12 | | fingerprint records on file with the Illinois State Police | 13 | | and the Federal Bureau of Investigation in the manner set | 14 | | forth in Section 60 of this Act. | 15 | | (5) Has successfully completed a certification program | 16 | | approved by the Commission. | 17 | | (6) Has paid the required application fees. | 18 | | (b) Upon the issuance of a recovery manager license, the | 19 | | Commission shall issue the license holder a suitable pocket | 20 | | identification card that shall include a photograph of the | 21 | | license holder. The identification card must contain the name | 22 | | of the license holder and that of the repossession agency that | 23 | | employs the license holder, in addition to any other | 24 | | information required by the Commission. | 25 | | (c) A recovery manager license is not transferable. |
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| 1 | | Section 45. Repossession agency employee requirements. | 2 | | (a) All employees of a licensed repossession agency whose | 3 | | duties include the actual repossession of collateral must apply | 4 | | for a recovery permit. The holder of a repossession agency | 5 | | license issued under this Act, known in this Section as the | 6 | | "employer", may employ in the conduct of the business under the | 7 | | following provisions: | 8 | | (1) No person may be issued a recovery permit who meets | 9 | | any of the following criteria: | 10 | | (A) Is younger than 21 years of age. | 11 | | (B) Has been determined by the Commission to be | 12 | | unfit by reason of conviction of an offense in this or | 13 | | another state, other than a minor traffic offense. The | 14 | | Commission shall adopt rules for making those | 15 | | determinations. | 16 | | (C) Has had a license or recovery permit denied, | 17 | | suspended, or revoked under this Act. | 18 | | (D) Has not successfully completed a certification | 19 | | program approved by the Commission. | 20 | | (2) No person may be employed by a repossession agency | 21 | | under this Section until he or she has executed and | 22 | | furnished to the Commission, on forms furnished by the | 23 | | Commission, a verified statement to be known as an | 24 | | "Employee's Statement" setting forth all of the following: | 25 | | (A) The person's full name, age, and residence | 26 | | address. |
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| 1 | | (B) The business or occupation engaged in for the 5 | 2 | | years immediately before the date of the execution of | 3 | | the statement, the place where the business or | 4 | | occupation was engaged in, and the names of the | 5 | | employers, if any. | 6 | | (C) That the person has not had a license or | 7 | | recovery permit denied, revoked, or suspended under | 8 | | this Act. | 9 | | (D) Any conviction of a felony, except as provided | 10 | | for in Section 85. | 11 | | (E) Any other information as may be required by any | 12 | | rule of the Commission to show the good character, | 13 | | competency, and integrity of the person executing the | 14 | | statement. | 15 | | (b) Each applicant for a recovery permit shall have his or | 16 | | her fingerprints submitted to the Commission by a Live Scan | 17 | | fingerprint vendor certified by the Illinois State Police under | 18 | | the Private Detective, Private Alarm, Private Security, | 19 | | Fingerprint Vendor, and Locksmith Act of 2004 in an electronic | 20 | | format that complies with the form and manner for requesting | 21 | | and furnishing criminal history record information as | 22 | | prescribed by the Illinois State Police. These fingerprints | 23 | | shall be checked against the Illinois State Police and Federal | 24 | | Bureau of Investigation criminal history record databases now | 25 | | and hereafter filed. The Commission shall charge applicants a | 26 | | fee for conducting the criminal history records check, which |
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| 1 | | shall not exceed the actual cost of the records check. The | 2 | | Illinois Commerce Commission Police shall furnish, pursuant to | 3 | | positive identification, records of Illinois convictions to | 4 | | the Commission. The Commission, in its discretion, may allow an | 5 | | applicant who does not have reasonable access to a designated | 6 | | vendor to provide his or her fingerprints in an alternative | 7 | | manner. The Commission, in its discretion, may also use other | 8 | | procedures in performing or obtaining criminal history records | 9 | | checks of applicants. Instead of submitting his or her | 10 | | fingerprints, an individual may submit proof that is | 11 | | satisfactory to the Commission that an equivalent security | 12 | | clearance has been conducted. | 13 | | (c) Qualified applicants shall purchase a recovery permit | 14 | | from the Commission and in a form that the Commission | 15 | | prescribes. The Commission shall notify the submitting person | 16 | | within 10 days after receipt of the application of its intent | 17 | | to issue or deny the recovery permit. The holder of a recovery | 18 | | permit shall carry the recovery permit at all times while | 19 | | actually engaged in the performance of the duties of his or her | 20 | | employment. No recovery permit shall be effective unless | 21 | | accompanied by a license issued by the Commission. Expiration | 22 | | and requirements for renewal of recovery permits shall be | 23 | | established by rule of the Commission. Possession of a recovery | 24 | | permit does not in any way imply that the holder of the | 25 | | recovery permit is employed by any agency unless the recovery | 26 | | permit is accompanied by the employee identification card |
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| 1 | | required by subsection (e) of this Section. | 2 | | (d) Each employer shall maintain a record of each employee | 3 | | that is accessible to the duly authorized representatives of | 4 | | the Commission. The record shall contain all of the following | 5 | | information: | 6 | | (1) A photograph taken within 10 days after the date | 7 | | that the employee begins employment with the employer. The | 8 | | photograph shall be replaced with a current photograph | 9 | | every 3 calendar years. | 10 | | (2) The Employee's Statement specified in paragraph | 11 | | (2) of subsection (a) of this Section. | 12 | | (3) All correspondence or documents relating to the | 13 | | character and integrity of the employee received by the | 14 | | employer from any official source or law enforcement | 15 | | agency. | 16 | | (4) In the case of former employees, the employee | 17 | | identification card of that person issued under subsection | 18 | | (e) of this Section. | 19 | | (e) Every employer shall furnish an employee | 20 | | identification card to each of his or her employees. This | 21 | | subsection (e) shall not apply to office or clerical personnel. | 22 | | This employee identification card shall contain a recent | 23 | | photograph of the employee, the employee's name, the name and | 24 | | agency license number of the employer, the employee's personal | 25 | | description, the signature of the employer, the signature of | 26 | | that employee, the date of issuance, and an employee |
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| 1 | | identification card number. | 2 | | (f) No employer may issue an employee identification card | 3 | | to any person who is not employed by the employer in accordance | 4 | | with this Section or falsely state or represent that a person | 5 | | is or has been in his or her employ. It is unlawful for an | 6 | | applicant for registration to file with the Commission the | 7 | | fingerprints of a person other than himself or herself or to | 8 | | fail to exercise due diligence in resubmitting replacement | 9 | | fingerprints for those employees who have had original | 10 | | fingerprint submissions returned as unclassifiable. An agency | 11 | | shall inform the Commission within 15 days after contracting or | 12 | | employing a licensed repossession agency employee. The | 13 | | Commission shall develop a registration process by rule. | 14 | | (g) Every employer shall obtain the identification card of | 15 | | every employee who terminates employment with the employer. An | 16 | | employer shall immediately report an identification card that | 17 | | is lost or stolen to the local police department having | 18 | | jurisdiction over the repossession agency location. | 19 | | (h) No agency may employ any person to perform any activity | 20 | | under this Act unless the person possesses a valid license or | 21 | | recovery permit under this Act. | 22 | | (i) If information is discovered affecting the | 23 | | registration of a person whose fingerprints were submitted | 24 | | under this Section, then the Commission shall so notify the | 25 | | agency that submitted the fingerprints on behalf of that | 26 | | person. |
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| 1 | | (j) A person employed under this Section shall have 15 | 2 | | business days within which to notify the Commission of any | 3 | | change in employer, but may continue working under any other | 4 | | recovery permits granted as an employee or independent | 5 | | contractor. | 6 | | (k) This Section applies only to those employees of | 7 | | licensed repossession agencies whose duties include actual | 8 | | repossession of collateral. | 9 | | Section 50. Fees. | 10 | | (a) The license and permit fees required under this Act are | 11 | | as follows: | 12 | | (1) Class "R" license (recovery agency), $825.
| 13 | | (2) Class "RR" license (branch office), $425. | 14 | | (3) Class "MR" license (recovery agency manager), | 15 | | $325. | 16 | | (4) Class "E" recovery permit, $75. | 17 | | (5) Class "EE" recovery permit (recovery agent | 18 | | intern), $75. | 19 | | An agency shall submit an application to register any | 20 | | remote storage location or locations. The Commission shall | 21 | | develop by rule the requirements for registering remote storage | 22 | | locations. The fee for each registration shall not exceed $300 | 23 | | as set by the Commission. | 24 | | (b) The Commission may establish by rule a fee for the
| 25 | | replacement or revision of a license or recovery permit. |
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| 1 | | (c) The fees set forth in the Section must be paid by | 2 | | certified check
or money order, or at the discretion of the | 3 | | Commission, by agency
check at the time of application. An
| 4 | | applicant for a Class "E", Class "EE", or Class "MR" license or | 5 | | permit
must pay the license or permit fee at the time the | 6 | | application is made.
If a license or permit is revoked or | 7 | | denied, or if an application is
withdrawn, then the license or | 8 | | permit fee shall not be refunded. | 9 | | Section 55. Social Security Number or Federal Employee | 10 | | Identification Number on application. In addition to any other | 11 | | information required by the Commission to be contained in the | 12 | | application, every application for original, renewal, or | 13 | | restored license or permit shall include the applicant's Social | 14 | | Security Number, if an individual, or Federal Employer | 15 | | Identification Number, if not an individual. The Commission | 16 | | shall not disclose an individual's Social Security Number or | 17 | | residential address and must keep that Social Security Number | 18 | | and residential address confidential unless disclosure is | 19 | | required by law. | 20 | | Section 60. Criminal background check. The Commission | 21 | | shall require that each individual, partner of a partnership, | 22 | | officer of a corporation, or owner of a limited liability | 23 | | company, as part of the application process, authorize a | 24 | | criminal history records check to determine if such applicant |
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| 1 | | has ever been charged with a crime and, if so, the disposition | 2 | | of those charges. Upon this authorization, each individual, | 3 | | partner of a partnership, officer of a corporation, or owner of | 4 | | a limited liability company shall submit his or her | 5 | | fingerprints to the Commission in the form and manner | 6 | | prescribed by the Illinois Commerce Commission Police. These | 7 | | fingerprints shall be checked against the fingerprint records | 8 | | now and hereafter filed in the Illinois State Police and | 9 | | Federal Bureau of Investigation criminal history records | 10 | | databases. The Commission shall charge a fee for conducting the | 11 | | criminal history records check, which shall be deposited in the | 12 | | Transportation Regulatory Fund and shall not exceed the actual | 13 | | cost of the records check. The Illinois Commerce Commission | 14 | | Police shall provide information concerning any criminal | 15 | | charges, and their disposition, now or hereafter filed against | 16 | | an applicant upon request of the Commission when the request is | 17 | | made in the form and manner required by the Illinois Commerce | 18 | | Commission Police. | 19 | | Section 65. Licensed recovery manager in control of | 20 | | repossession agency. | 21 | | (a) As a condition of licensure, a licensed recovery | 22 | | manager must, at all times, be in control or management of the | 23 | | repossession agency. Each licensed repossession agency and | 24 | | licensed branch office location must have a licensed recovery | 25 | | manager. |
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| 1 | | (b) A licensed recovery manager may only be in control of | 2 | | one repossession agency or branch office location at one time. | 3 | | Upon written request by a representative of an agency within 10 | 4 | | days after the loss of the licensed recovery manager in control | 5 | | due to the death of the license holder or because of an | 6 | | unanticipated termination of his or her employment, the | 7 | | Commission shall issue a temporary permit allowing the | 8 | | continuing operation of a previously licensed repossession | 9 | | agency. The temporary permit shall be valid for no more than 90 | 10 | | days. Upon written request by the representative of the agency, | 11 | | an extension of an additional 90 days may be granted by the | 12 | | Commission for good cause shown. No more than 2 extensions may | 13 | | be granted to any repossession agency. A temporary permit may | 14 | | not be issued for loss of the licensed recovery manager in | 15 | | control or management if that loss is due to disciplinary | 16 | | action taken by the Commission. | 17 | | (c) Whenever a licensed recovery manager in control or | 18 | | management of a repossession agency ceases to be in control or | 19 | | management, the licensed agency shall file notice with the | 20 | | Commission within 30 days after the cessation. If the | 21 | | repossession agency fails to give written notice at the end of | 22 | | the 30-day period, then the agency's license shall | 23 | | automatically be suspended. If the notice is filed, then the | 24 | | license shall remain in force for a period of 90 days after the | 25 | | filing of the notice. At the end of the 90-day period or an | 26 | | additional period, not to exceed one year, as specified by the |
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| 1 | | Commission, if written notice is not given that a licensed | 2 | | recovery manager is then in control or management of the | 3 | | agency, then the agency's license shall automatically be | 4 | | suspended. A license suspended under this Section may be | 5 | | reinstated upon payment of a reinstatement fee, to be | 6 | | determined by the Commission, and submission of a reinstatement | 7 | | application. | 8 | | (d) Except as otherwise provided in this Act, no person may | 9 | | serve as the licensed recovery manager in control or management | 10 | | of a licensed repossession agency if that person has ever had a | 11 | | repossession agency's license revoked or if the person was a | 12 | | partner, managing employee, owner, or officer of a repossession | 13 | | agency the license of which has been revoked for cause. | 14 | | (e) The license of the recovery manager in control or | 15 | | management of a licensed repossession agency, together with the | 16 | | agency's license, shall be conspicuously displayed at the | 17 | | agency location of which the recovery manager is in control or | 18 | | management. | 19 | | (f) A license extended under this Section is subject to all | 20 | | other provisions of this Act. | 21 | | Section 70. License extension in cases of death or | 22 | | disassociation. | 23 | | (a) In the case of the death of a person who is licensed | 24 | | individually as a repossession agency, a member of the | 25 | | deceased's immediate family shall be entitled to continue |
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| 1 | | operating the agency under the same license for up to 120 days | 2 | | following the date of death, provided that written notice is | 3 | | given to the Commission within 30 days following the date of | 4 | | death. At the end of the 120-day period, the license shall | 5 | | automatically be revoked. | 6 | | (b) In the case of the death or disassociation of a partner | 7 | | of a partnership licensed as a repossession agency, the company | 8 | | shall notify the Commission, in writing, within 30 days from | 9 | | the death or disassociation of the partner. If they fail to | 10 | | notify the Commission within the 30-day period, then the | 11 | | license shall automatically be revoked at the end of that | 12 | | period. If proper notice is given, then the license shall | 13 | | remain in force for 90 days following the date of death or | 14 | | disassociation of the partner. At the end of the 90-day period, | 15 | | the license shall automatically be revoked. | 16 | | (c) A license extended under this Section is subject to all | 17 | | other provisions of this Act. | 18 | | Section 75. Licenses and recovery permits; renewals; | 19 | | restoration; person in military service. | 20 | | (a) An original Class "R" license, Class "RR" license, and | 21 | | Class "MR" license shall expire 2 years after the date of | 22 | | issuance. | 23 | | (b) An original Class "E" recovery permit and Class "EE" | 24 | | recovery permit shall expire one year after the date of | 25 | | issuance. |
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| 1 | | (c) A renewal Class "R" license, Class "RR" license and | 2 | | Class "MR" license shall expire 2 years after the date of | 3 | | renewal. | 4 | | (d) A renewal Class "E" recovery permit and Class "EE" | 5 | | recovery permit shall expire one year after the date of | 6 | | renewal. | 7 | | (e) The following are guidelines for the classes of | 8 | | licensure and
registration: | 9 | | (1) Any person, firm, company, partnership, or | 10 | | corporation that engages in business as a recovery agency | 11 | | shall have a Class "R" license. A Class "R" license is | 12 | | valid for only one location. | 13 | | (2) Each branch office of a Class "R" agency shall have | 14 | | a Class "RR" license. | 15 | | (3) Any individual who performs the services of a | 16 | | manager for a Class "R" recovery agency or a Class "RR" | 17 | | branch office must have a Class "MR" license. | 18 | | (4) Any individual who performs recovery services as a | 19 | | repossession agency employee for a Class "R" recovery | 20 | | agency or a Class "RR" branch office must have a Class "E" | 21 | | recovery permit. | 22 | | (5) Any individual who performs repossessions as an | 23 | | intern under the direction and control of a designated, | 24 | | sponsoring Class "E" recovery permit or a designated, | 25 | | sponsoring Class "MR" license shall have a Class "EE" | 26 | | recovery permit. |
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| 1 | | (6) An individual shall have a Class "MR" or Class "E" | 2 | | recovery permit if he or she owns or is an employee of a | 3 | | Class "R" agency or Class "RR" branch office. | 4 | | (7) Class "MR", Class "E", and Class "EE" licenses and | 5 | | recovery permits are not transferable.
| 6 | | (f) At least 90 days prior to the expiration of a license | 7 | | or recovery permit, the Commission shall mail to the license or | 8 | | permit holder a renewal form in the form and manner prescribed | 9 | | by the Commission. The license holder or recovery permit holder | 10 | | must complete and mail the renewal form to the Commission, pay | 11 | | any fines assessed, and pay any renewal fee required by the | 12 | | Commission. | 13 | | (g) Any person or entity that has permitted a license or | 14 | | recovery permit to expire may have that license or recovery | 15 | | permit restored by making an application to the Commission | 16 | | within one year after the expiration of a repossession agency's | 17 | | license or a qualified manager license or within 30 days after | 18 | | the expiration of a recovery permit, filing proof acceptable to | 19 | | the Commission of fitness to have the license or recovery | 20 | | permit restored, and paying the required restoration fee. | 21 | | However, any person whose license or recovery permit expired | 22 | | while (i) in federal service on active duty with the Armed | 23 | | Forces of the United States or called into service or training | 24 | | with the State militia or (ii) in training or education under | 25 | | the supervision of the United States preliminary to induction | 26 | | into military service may have his or her license or recovery |
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| 1 | | permit renewed or restored without paying any lapsed renewal | 2 | | fees, if within 2 years after honorable termination of the | 3 | | service, training, or education, except under condition other | 4 | | than honorable, he or she furnishes the Commission with | 5 | | satisfactory evidence to the effect that he or she has been so | 6 | | engaged and that the service, training, or education has been | 7 | | so terminated. | 8 | | (h) A suspended repossession agency license, recovery | 9 | | manager license, or recovery permit is subject to expiration as | 10 | | set forth in this Section. Renewal of a certificate or | 11 | | registration card does not entitle the license holder or | 12 | | recovery permit holder, while the license or recovery permit | 13 | | remains suspended and until it is reinstated, to engage in the | 14 | | licensed or permitted activity. | 15 | | (i) A revoked repossession agency license, recovery | 16 | | manager license, or recovery permit is subject to expiration as | 17 | | set forth in this Section; however, it may not be renewed. If a | 18 | | revoked license or recovery permit is reinstated after its | 19 | | expiration, then the license holder or recovery permit holder, | 20 | | as a condition of reinstatement, shall pay a reinstatement fee | 21 | | in an amount equal to the renewal fee in effect on the last | 22 | | regular renewal date prior to the date on which the license or | 23 | | recovery permit is reinstated and any additional delinquency | 24 | | fee required by the Commission. | 25 | | (j) Any person or entity that notifies the Commission, in | 26 | | writing on forms prescribed by the Commission, may place a |
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| 1 | | license or recovery permit on inactive status and shall be | 2 | | excused from the payment of renewal fees until the person or | 3 | | entity notifies the Commission in writing of the intention to | 4 | | resume active practice. Any person or entity requesting that a | 5 | | license or recovery permit be changed from inactive to active | 6 | | status shall be required to pay the current renewal fee. | 7 | | (k) Any repossession agency license holder, recovery | 8 | | manager license holder, or recovery permit holder whose license | 9 | | or recovery permit is nonrenewed or on inactive status shall | 10 | | not engage in the practice of recovery in this State or use the | 11 | | title or advertise that he, she, or it performs the services of | 12 | | a licensed repossession agency, licensed recovery manager, or | 13 | | repossession agency employee. | 14 | | (l) Any person violating subsection (k) of this Section | 15 | | shall be considered to be operating a repossession agency | 16 | | without a license, acting as a recovery manager without a | 17 | | license, or acting as a repossession agency employee without a | 18 | | recovery permit and is subject to the disciplinary provisions | 19 | | of this Act. | 20 | | (m) A repossession agency license, recovery manager | 21 | | license, or recovery permit that is not renewed within 3 years | 22 | | after its expiration may not be renewed, restored, reinstated, | 23 | | or reissued thereafter. The holder of the license or recovery | 24 | | permit may obtain a new license or recovery permit only upon | 25 | | compliance with all of the provisions of this Act concerning | 26 | | the issuance of original licenses or recovery permits. |
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| 1 | | Section 80. Refusal, revocation, or suspension. | 2 | | (a) The Commission may refuse to issue or renew or may | 3 | | revoke any license or recovery permit or may suspend, place on | 4 | | probation, fine, or take any disciplinary action that the | 5 | | Commission may deem proper, including fines not to exceed | 6 | | $2,500 for each violation, with regard to any license holder or | 7 | | recovery permit holder for one or any combination of the | 8 | | following causes: | 9 | | (1) Knowingly making any misrepresentation for the | 10 | | purpose of obtaining a license or recovery permit. | 11 | | (2) Violations of this Act or its rules. | 12 | | (3) Conviction of any crime under the laws of the | 13 | | United States or any state or territory thereof that is (i) | 14 | | a felony, (ii) a misdemeanor, an essential element of which | 15 | | is dishonesty, or (iii) a crime that is related to the | 16 | | practice of the profession. | 17 | | (4) Aiding or abetting another in violating any | 18 | | provision of this Act or its rules. | 19 | | (5) Engaging in dishonorable, unethical, or | 20 | | unprofessional conduct of a character likely to deceive, | 21 | | defraud, or harm the public as defined by rule. | 22 | | (6) Violation of any court order from any State or | 23 | | public agency engaged in the enforcement of payment of | 24 | | child support arrearages or for noncompliance with certain | 25 | | processes relating to paternity or support proceeding. |
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| 1 | | (7) Solicitation of professional services by using | 2 | | false or misleading advertising. | 3 | | (8) A finding that the license or recovery permit was | 4 | | obtained by fraudulent means. | 5 | | (9) Practicing or attempting to practice under a name | 6 | | other than the full name shown on the license or recovery | 7 | | permit or any other legally authorized name. | 8 | | (b) The Commission may refuse to issue or may suspend the | 9 | | license or recovery permit of any person or entity who fails to | 10 | | file a return, pay the tax, penalty, or interest shown in a | 11 | | filed return, or pay any final assessment of tax, penalty, or | 12 | | interest, as required by any tax Act administered by the | 13 | | Department of Revenue, until the time the requirements of the | 14 | | tax Act are satisfied. The Commission may take into | 15 | | consideration any pending tax disputes properly filed with the | 16 | | Department of Revenue. | 17 | | Section 85. Consideration of past crimes. | 18 | | (a) Notwithstanding the prohibitions set forth in Sections | 19 | | 40 and 45 of this Act, when considering the denial of a license | 20 | | or recovery permit on the grounds of conviction of a crime, the | 21 | | Commission, in evaluating the rehabilitation of the applicant | 22 | | and the applicant's present eligibility for a license or | 23 | | recovery permit, shall consider each of the following criteria: | 24 | | (1) The nature and severity of the act or crime under | 25 | | consideration as grounds for denial. |
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| 1 | | (2) Evidence of any act committed subsequent to the act | 2 | | or crime under consideration as grounds for denial, which | 3 | | also could be considered as grounds for disciplinary action | 4 | | under this Act. | 5 | | (3) The amount of time that has lapsed since the | 6 | | commission of the act or crime referred to in item (1) or | 7 | | (2) of this subsection (a). | 8 | | (4) The extent to which the applicant has complied with | 9 | | any terms of parole, probation, restitution, or any other | 10 | | sanctions lawfully imposed against the applicant. | 11 | | (5) Evidence, if any, of rehabilitation submitted by | 12 | | the applicant. | 13 | | (b) When considering the suspension or revocation of a | 14 | | license or recovery permit on the grounds of conviction of a | 15 | | crime, the Commission, in evaluating the rehabilitation of the | 16 | | applicant and the applicant's present eligibility for a license | 17 | | or recovery permit, shall consider each of the following | 18 | | criteria: | 19 | | (1) The nature and severity of the act or offense. | 20 | | (2) The license holder's or recovery permit holder's | 21 | | criminal record in its entirety. | 22 | | (3) The amount of time that has lapsed since the | 23 | | commission of the act or offense. | 24 | | (4) Whether the license holder or recovery permit | 25 | | holder has complied with any terms of parole, probation, | 26 | | restitution, or any other sanctions lawfully imposed |
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| 1 | | against him or her. | 2 | | (5) If applicable, evidence of expungement | 3 | | proceedings. | 4 | | (6) Evidence, if any, of rehabilitation submitted by | 5 | | the license holder or recovery permit holder. | 6 | | Section 90. Insurance required. No repossession agency, | 7 | | branch office, or remote storage location license shall be | 8 | | issued unless the applicant first files with the Commission a | 9 | | certification of insurance evidencing coverage in the amount | 10 | | required under this Section. The coverage shall provide the | 11 | | Commission as an additional insured for the purpose of | 12 | | receiving all notices of modifications or cancellations of such | 13 | | insurance. Coverage shall be written by an insurance company | 14 | | that is lawfully engaged to provide insurance coverage in | 15 | | Illinois. Coverage shall provide for a combined single limit | 16 | | policy in the amount of at least $1,000,000 per occurrence and | 17 | | a $3,000,000 aggregate policy, which shall include commercial | 18 | | general liability for wrongful repossession, garage keepers, | 19 | | on hook, and drive-away and shall be a direct primary policy. | 20 | | Coverage shall provide for a dishonesty bond policy in the | 21 | | amount of at least $1,000,000. Coverage shall insure for the | 22 | | liability of all employees licensed or registered by the | 23 | | Commission while acting in the course of their employment. The | 24 | | agency shall notify the Commission immediately upon | 25 | | cancellation of the insurance policy, whether the cancellation |
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| 1 | | was initiated by the insurance company or the insured agency. | 2 | | The agency's license shall automatically be suspended on the | 3 | | date of cancellation of the policy, unless new evidence of | 4 | | insurance is provided to the Commission prior to the effective | 5 | | date of cancellation. | 6 | | Section 95. Display of license required. At all times, a | 7 | | repossession agency's license shall be conspicuously displayed | 8 | | at the agency location on record with the Commission. | 9 | | Section 100. Local government; home rule. | 10 | | (a) Nothing in this Act shall prevent local authorities in | 11 | | any municipality, county, or municipality and county, by | 12 | | ordinance and within the exercise of the police power of the | 13 | | municipality or county, from requiring repossession agency and | 14 | | recovery manager license holders to register their names and | 15 | | file a copy of their State identification cards with the | 16 | | municipality, county, or municipality and county. | 17 | | (b) A municipality or county, including a home rule unit, | 18 | | may not regulate individuals and entities engaged in the | 19 | | business
of collateral recovery in a manner that is less | 20 | | stringent than the standards established under this Act. To the | 21 | | extent that any regulation by a municipality or county, | 22 | | including a home rule unit, is less stringent than the | 23 | | standards established under this Act, it is superseded by this | 24 | | Act. This Section is a limitation under subsection (i) of |
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| 1 | | Section 6 of Article VII of the Illinois Constitution on the | 2 | | concurrent exercise by home rule units of powers and functions | 3 | | exercised by the State. | 4 | | Section 105. Notification of law enforcement. Prior to a | 5 | | repossession the licensed repossession agency or repossession | 6 | | agency employee shall notify the appropriate law enforcement | 7 | | agency located in the jurisdiction in which the licensed | 8 | | repossession agency or repossession agency employee plans to | 9 | | perform the repossession. Within 30 minutes after the | 10 | | completion of the repossession, the licensed repossession | 11 | | agency or repossession agency employee must notify the | 12 | | appropriate law enforcement agency that the repossession has | 13 | | occurred within its jurisdiction. | 14 | | Section 110. Repossession of vehicles. | 15 | | (a) With regard to collateral subject to a security | 16 | | agreement, repossession occurs when the licensed repossession | 17 | | agency employee gains entry into the collateral, the collateral | 18 | | becomes connected to a tow vehicle, or the licensed | 19 | | repossession agency employee has physical control, custody, or | 20 | | possession of the collateral. A debtor may not pursue a | 21 | | recovery agent in any way. | 22 | | (b) The licensed repossession agency shall confirm with the | 23 | | legal owner of a recovered vehicle whether the legal owner | 24 | | holds a security interest in the personal effects or other |
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| 1 | | property contained in or on the recovered vehicle. | 2 | | (c) If personal effects or other property not covered by a | 3 | | security agreement are contained in or on a recovered vehicle | 4 | | at the time it is recovered, then the personal effects and | 5 | | other property not covered by a security agreement must be | 6 | | completely and accurately inventoried, and a record of the | 7 | | inventory shall be maintained on file with the licensed | 8 | | repossession agency for a period of 2 years following the date | 9 | | of repossession. The licensed repossession agency shall hold | 10 | | all personal effects and other property not covered by a | 11 | | security agreement until the licensed repossession agency | 12 | | either returns the personal effects and other property to the | 13 | | debtor or disposes of the personal effects and other property | 14 | | in accordance with this Section. | 15 | | (d) Within 5 working days following the date of | 16 | | repossession, the licensed repossession agency shall give | 17 | | written notification to the debtor of the whereabouts of | 18 | | personal effects or other property inventoried. At least 45 | 19 | | days prior to disposing of such personal effects or other | 20 | | property, the licensed repossession agency shall, by United | 21 | | States Postal Service certified mail, notify the debtor of the | 22 | | intent to dispose of the property. Should the debtor, or his or | 23 | | her lawful designee, appear to retrieve the personal property | 24 | | prior to the date on which the licensed repossession agency is | 25 | | allowed to dispose of the property, the licensed repossession | 26 | | agency shall surrender the personal property to that individual |
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| 1 | | upon payment of any reasonably incurred expenses for inventory | 2 | | and storage. | 3 | | (e) If personal property is not claimed within 45 days of | 4 | | the notice of intent to dispose, then the licensed repossession | 5 | | agency may dispose of the personal property at its discretion, | 6 | | except that illegal items or contraband shall be surrendered to | 7 | | a law enforcement agency, and the licensed repossession agency | 8 | | shall retain a receipt or other proof of surrender as part of | 9 | | the inventory and disposal records it maintains. The inventory | 10 | | of the personal property and the records regarding any disposal | 11 | | of personal property shall be maintained for a period of 2 | 12 | | years in the permanent records of the licensed repossession | 13 | | agency and shall be made available upon request to the | 14 | | Commission. | 15 | | Section 115. Deposit of fees and fines. All of the fees and | 16 | | fines collected
under this Act shall be deposited into the | 17 | | Transportation Regulatory Fund and, subject to appropriation, | 18 | | may be used by the Commission for the administration of this | 19 | | Act.
| 20 | | Section 120. Payments; penalty for insufficient funds. Any | 21 | | person or entity who delivers a check or other payment to the | 22 | | Commission that is returned to the Commission unpaid by the | 23 | | financial institution upon which it is drawn shall pay to the | 24 | | Commission, in addition to the amount already owed to the |
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| 1 | | Commission, a fine amount as determined by the Commission. The | 2 | | fines imposed by this Section are in addition to any other | 3 | | discipline provided under this Act prohibiting unlicensed or | 4 | | unregistered practice or practice on a nonrenewed license or | 5 | | recovery permit. The Commission shall notify the person or | 6 | | entity that fees and fines shall be paid to the Commission by | 7 | | certified check or money order within 30 calendar days after | 8 | | notification. If, after the expiration of 30 days from the date | 9 | | of notification, the person or entity has failed to submit the | 10 | | necessary remittance, then the Commission shall automatically | 11 | | terminate the license or recovery permit or deny the | 12 | | application without hearing. If, after termination or denial, | 13 | | the person seeks a license or recovery permit, then the person | 14 | | or entity shall apply to the Commission for restoration or | 15 | | issuance of the license or recovery permit and pay all fees and | 16 | | fines due to the Commission. The Commission may establish a fee | 17 | | for the processing of an application for restoration of a | 18 | | license or recovery permit to pay all expenses of processing | 19 | | the application. The Commission may waive the fines due under | 20 | | this Section in individual cases where the Commission finds | 21 | | that the fines would be unreasonable or unnecessarily | 22 | | burdensome. | 23 | | Section 125. Filings, formal complaints. All repossession | 24 | | activity correspondence relating to complaints and alleged | 25 | | violations of this Act shall be submitted to the Commission in |
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| 1 | | writing on forms and in a manner prescribed by the Commission. | 2 | | Section 130. Roster. The Commission shall maintain a | 3 | | roster of names and addresses of all persons who hold valid | 4 | | licenses and recovery permits and all persons whose licenses or | 5 | | recovery permits have been suspended or revoked within the | 6 | | previous year. | 7 | | Section 135. Violations; injunctions; cease and desist | 8 | | order. | 9 | | (a) If any person or entity violates a provision of this | 10 | | Act, then the Commission may, in the name of the People of the | 11 | | State of Illinois, through the Attorney General of the State of | 12 | | Illinois, petition for an order enjoining the violation or for | 13 | | an order enforcing compliance with this Act. Upon the filing of | 14 | | a verified petition in court, the court may issue a temporary | 15 | | restraining order, without notice or bond, and may | 16 | | preliminarily and permanently enjoin the violation. If it is | 17 | | established that the person or entity has violated or is | 18 | | violating the injunction, the court may punish the offender for | 19 | | contempt of court. Proceedings under this Section are in | 20 | | addition to, and not in lieu of, all other remedies and | 21 | | penalties provided by this Act. | 22 | | (b) If any person or entity practices as a repossession | 23 | | agency or a recovery manager or holds himself, herself, or | 24 | | itself out as such without having a valid license or recovery |
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| 1 | | permit under this Act, then any license holder or recovery | 2 | | permit holder, any person injured thereby, or any resident of | 3 | | or legal entity within the State may, in addition to the | 4 | | Commission, petition for relief as provided in subsection (a) | 5 | | of this Section. | 6 | | (c) Whenever, in the opinion of the Commission, any person | 7 | | or entity violates any provision of this Act, the Commission | 8 | | may issue a rule to show cause why an order to cease and desist | 9 | | should not be entered against that person or entity. The rule | 10 | | shall clearly set forth the grounds relied upon by the | 11 | | Commission and shall provide a period of 7 days from the date | 12 | | of the rule to file an answer to the satisfaction of the | 13 | | Commission. Failure to answer to the satisfaction of the | 14 | | Commission shall cause an order to cease and desist to be | 15 | | issued immediately. | 16 | | Section 140. Investigation; notice and hearing. The | 17 | | Commission may investigate the actions or qualifications of any | 18 | | person or entity holding or claiming to hold a license or | 19 | | recovery permit. The Commission may take any immediate | 20 | | disciplinary action that the Commission may deem proper if a | 21 | | person or entity repossesses a vehicle or collateral in the | 22 | | State without a valid license or permit. For all other | 23 | | disciplinary actions against a license or recovery permit | 24 | | holder, the Commission shall (i) notify the accused in writing | 25 | | of any charges made and the time and place for a hearing on the |
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| 1 | | charges at least 30 days before the date set for the hearing, | 2 | | (ii) direct the accused to file a written answer to the charges | 3 | | under oath within 30 days after the service on the person or | 4 | | entity of such notice, and (iii) inform the accused that | 5 | | failure to file an answer shall result in a default judgment | 6 | | against the person or entity and the person's or entity's | 7 | | license or recovery permit may be suspended, revoked, placed on | 8 | | probationary status, or other disciplinary action taken with | 9 | | regard to the license or recovery permit as the Commission may | 10 | | deem proper. | 11 | | In case the person or entity, after receiving notice, fails | 12 | | to file an answer, the person's or entity's license or recovery | 13 | | permit may, in the discretion of the Commission, be suspended, | 14 | | revoked, placed on probationary status, or the Commission, may | 15 | | take whatever disciplinary action it deems proper, including | 16 | | the imposition of a fine, without a hearing, if the act or acts | 17 | | charged constitute sufficient grounds for such action under | 18 | | this Act. This written notice and any notice in the subsequent | 19 | | proceedings may be served by personal delivery to the accused, | 20 | | or by registered or certified mail to the address last | 21 | | specified by the accused in the last notification to the | 22 | | Commission. | 23 | | The written answer shall be served by personal delivery, | 24 | | certified delivery, or certified or registered mail to the | 25 | | Commission. At the time and place fixed in the notice, the | 26 | | Commission shall proceed to hear the charges and the parties or |
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| 1 | | their counsel shall be accorded ample opportunity to present | 2 | | such statements, testimony, evidence, and argument as may be | 3 | | pertinent to the charges or to the defense thereto. The | 4 | | Commission may continue such hearing from time to time. At the | 5 | | discretion of the Commission, the accused person's or entity's | 6 | | license or recovery permit may be suspended or revoked, if the | 7 | | evidence constitutes sufficient grounds for such action under | 8 | | this Act. | 9 | | Section 145. Record of proceeding. The Commission, at its | 10 | | expense, shall preserve a record of all proceedings at the | 11 | | formal hearing of any case. The notice of hearing, complaint | 12 | | and all other documents in the nature of pleadings and written | 13 | | motions filed in the proceedings, the transcript of testimony, | 14 | | and orders of the Commission shall be in the record of the | 15 | | proceedings. | 16 | | Section 150. Subpoenas; oaths; attendance of witnesses. | 17 | | The Commission has the power to subpoena and to bring before it | 18 | | any person and to take testimony either orally or by | 19 | | deposition, or both, with the same fees and mileage and in the | 20 | | same manner as is prescribed in civil cases in the courts of | 21 | | this State. The Commission and the designated hearing officer | 22 | | have the power to administer oaths to witnesses at any hearing | 23 | | that the Commission is authorized to conduct and any other | 24 | | oaths authorized in any Act administered by the Commission. Any |
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| 1 | | circuit court may, upon application of the Commission or its | 2 | | designee or of the applicant, license holder, or recovery | 3 | | permit holder against whom proceedings under this Act are | 4 | | pending, enter an order requiring the attendance of witnesses | 5 | | and their testimony, and the production of documents, papers, | 6 | | files, books, and records in connection with any hearing or | 7 | | investigation. The court may compel obedience to its order by | 8 | | proceedings for contempt. | 9 | | Section 155. Recommendations for disciplinary action. At | 10 | | the conclusion of the hearing, the Commission shall prepare a | 11 | | written report of its findings and recommendations. The report | 12 | | shall contain a finding whether or not the accused person or | 13 | | entity violated this Act or failed to comply with the | 14 | | conditions required in this Act. The finding is not admissible | 15 | | in evidence against the person in a criminal prosecution | 16 | | brought for the violation of this Act, but the hearing and | 17 | | finding are not a bar to a criminal prosecution brought for the | 18 | | violation of this Act. | 19 | | Section 160. Rehearing. In any hearing involving | 20 | | disciplinary action against a license holder or recovery permit | 21 | | holder, a copy of the Commission's report shall be served upon | 22 | | the respondent by the Commission, either personally or as | 23 | | provided in this Act for the service of the notice of hearing. | 24 | | Within 20 calendar days after service, the respondent may |
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| 1 | | present to the Commission a motion in writing for a rehearing | 2 | | that shall specify the particular grounds for rehearing. If no | 3 | | motion for rehearing is filed, then upon the expiration of the | 4 | | time specified for filing a motion, or if a motion for | 5 | | rehearing is denied, then upon denial, the Commission may enter | 6 | | an order in accordance with its own recommendations except as | 7 | | provided in this Act. If the respondent orders from the | 8 | | reporting service, and pays for, a transcript of the record | 9 | | within the time for filing a motion for rehearing, then the 20 | 10 | | calendar day period within which a motion may be filed shall | 11 | | commence upon the delivery of the transcript to the respondent. | 12 | | Section 165. Appointment of a hearing officer. The | 13 | | Commission has the authority to appoint any attorney duly | 14 | | licensed to practice law in the State of Illinois to serve as | 15 | | the hearing officer in any action for refusal to issue or renew | 16 | | a license or recovery permit or to discipline a license holder | 17 | | or recovery permit holder. The hearing officer has full | 18 | | authority to conduct the hearing. The hearing officer shall | 19 | | report his or her findings and recommendations to the | 20 | | Commission. The Commission has 60 calendar days from receipt of | 21 | | the report to review the report of the hearing officer. If the | 22 | | Commission disagrees with the recommendation of the hearing | 23 | | officer, then the Commission may issue an order in | 24 | | contravention of the recommendation. |
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| 1 | | Section 170. Hearing by other examiner. Whenever the | 2 | | Commission is not satisfied that substantial justice has been | 3 | | done in revoking or suspending a license or recovery permit, or | 4 | | refusing to issue or renew a license or recovery permit, the | 5 | | Commission may order a rehearing. | 6 | | Section 175. Order; certified copy. An order or a | 7 | | certified copy thereof, over the seal of the Commission, shall | 8 | | be prima facie proof: | 9 | | (a) that the seal is the genuine seal of the Commission; | 10 | | and | 11 | | (b) that the Commission is duly appointed and qualified. | 12 | | Section 180. Restoration. At any time after the suspension | 13 | | or revocation of any license or recovery permit, the Commission | 14 | | may restore the license or recovery permit to the accused | 15 | | person, unless after an investigation and a hearing the | 16 | | Commission determines that restoration is not in the public | 17 | | interest. | 18 | | Section 185. License and recovery permit surrender. Upon | 19 | | the revocation or suspension of any license or recovery permit, | 20 | | the license holder or recovery permit holder shall immediately | 21 | | surrender the license or recovery permit to the Commission. If | 22 | | the license holder or recovery permit holder fails to do so, | 23 | | then the Commission has the right to seize the license or |
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| 1 | | recovery permit. | 2 | | Section 190. Summary suspension. The Commission may | 3 | | summarily suspend the license of a repossession agency, the | 4 | | license of a recovery manager, or the recovery permit of an | 5 | | employee without a hearing, simultaneously with the | 6 | | institution of proceedings for a hearing provided for in this | 7 | | Act, if the Commission finds that evidence in its possession | 8 | | indicates that a repossession agency's, recovery manager's, or | 9 | | employee's continuation in the business of collateral recovery | 10 | | would constitute an imminent danger to the public. In the event | 11 | | that the Commission summarily suspends a license or recovery | 12 | | permit without a hearing, a hearing by the Commission must be | 13 | | held within 30 calendar days after the suspension has occurred. | 14 | | Section 195. Judicial review. All final administrative | 15 | | decisions of the Commission are subject to judicial review | 16 | | under the Administrative Review Law and its rules. The term | 17 | | "administrative decision" is defined as in Section 3-101 of the | 18 | | Code of Civil Procedure. Proceedings for judicial review shall | 19 | | be commenced in the circuit court of the county in which the | 20 | | party applying for review resides; but if the party is not a | 21 | | resident of this State, the venue shall be in Sangamon County. | 22 | | Section 200. Violations; criminal penalties. Any person | 23 | | who is found to have violated any provision of this Act is |
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| 1 | | guilty of a Class A misdemeanor for the first offense, and a | 2 | | Class 4 felony for a second or subsequent offense. | 3 | | Section 205. Illinois Administrative Procedure Act. The | 4 | | Illinois Administrative Procedure Act is expressly adopted and | 5 | | incorporated in this Act as if all of the provisions of that | 6 | | Act were included in this Act. For the purpose of this Act, the | 7 | | notice required under Section 10-25 of the Illinois | 8 | | Administrative Procedure Act is deemed sufficient when mailed | 9 | | to the last known address of a party.
| 10 | | Section 900. The Regulatory Sunset Act is amended by adding | 11 | | Section 4.32 as follows: | 12 | | (5 ILCS 80/4.32 new) | 13 | | Sec. 4.32. Act repealed on January 1, 2022. The following | 14 | | Act is repealed on January 1, 2022: | 15 | | The Collateral Recovery Act.
| 16 | | Section 999. Effective date. This Act takes effect July 1, | 17 | | 2012.".
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