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Public Act 102-0748


 

Public Act 0748 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-0748
 
SB3006 EnrolledLRB102 21401 SPS 30517 b

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    (Section scheduled to be repealed on January 1, 2022)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

Effective Date: 1/1/2023