Rep. Marcus C. Evans, Jr.

Filed: 4/6/2017

 

 


 

 


 
10000HB2752ham003LRB100 08572 SMS 24661 a

1
AMENDMENT TO HOUSE BILL 2752

2    AMENDMENT NO. ______. Amend House Bill 2752, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Criminal Identification Act is amended by
6changing Section 12 as follows:
 
7    (20 ILCS 2630/12)
8    Sec. 12. Entry of order; effect of expungement or sealing
9records.
10    (a) Except with respect to law enforcement agencies, the
11Department of Corrections, State's Attorneys, or other
12prosecutors, and as provided in Section 13 of this Act, an
13expunged or sealed record may not be considered by any private
14or public entity in employment matters, certification,
15licensing, revocation of certification or licensure, or
16registration. Applications for employment must contain

 

 

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1specific language which states that the applicant is not
2obligated to disclose sealed or expunged records of conviction
3or arrest. The entity authorized to grant a license,
4certification, or registration shall include in an application
5for licensure, certification, or registration specific
6language stating that the applicant is not obligated to
7disclose sealed or expunged records of a conviction or arrest;
8however, if the inclusion of that language in an application
9for licensure, certification, or registration is not
10practical, the entity shall publish on its website instructions
11specifying that applicants are not obligated to disclose sealed
12or expunged records of a conviction or arrest. Employers may
13not ask if an applicant has had records expunged or sealed.
14    (b) A person whose records have been sealed or expunged is
15not entitled to remission of any fines, costs, or other money
16paid as a consequence of the sealing or expungement. This
17amendatory Act of the 93rd General Assembly does not affect the
18right of the victim of a crime to prosecute or defend a civil
19action for damages. Persons engaged in civil litigation
20involving criminal records that have been sealed may petition
21the court to open the records for the limited purpose of using
22them in the course of litigation.
23(Source: P.A. 93-211, eff. 1-1-04; 93-1084, eff. 6-1-05.)
 
24    Section 10. The Illinois Insurance Code is amended by
25changing Sections 500-30, 500-70, 1525, and 1555 and by adding

 

 

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1Sections 500-76 and 1550 as follows:
 
2    (215 ILCS 5/500-30)
3    (Section scheduled to be repealed on January 1, 2027)
4    Sec. 500-30. Application for license.
5    (a) An individual applying for a resident insurance
6producer license must make application on a form specified by
7the Director and declare under penalty of refusal, suspension,
8or revocation of the license that the statements made in the
9application are true, correct, and complete to the best of the
10individual's knowledge and belief. Before approving the
11application, the Director must find that the individual:
12        (1) is at least 18 years of age;
13        (2) has not committed any act that is a ground for
14    denial, suspension, or revocation set forth in Section
15    500-70 or 500-76 or the individual who committed the act
16    has been sufficiently rehabilitated;
17        (3) has completed, if required by the Director, a
18    pre-licensing course of study before the insurance exam for
19    the lines of authority for which the individual has applied
20    (an individual who successfully completes the Fire and
21    Casualty pre-licensing courses also meets the requirements
22    for Personal Lines-Property and Casualty);
23        (4) has paid the fees set forth in Section 500-135; and
24        (5) has successfully passed the examinations for the
25    lines of authority for which the person has applied.

 

 

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1    (b) A pre-licensing course of study for each class of
2insurance for which an insurance producer license is requested
3must be established in accordance with rules prescribed by the
4Director and must consist of the following minimum hours:
5Class of InsuranceNumber of
6Hours
7Life (Class 1 (a))20
8Accident and Health (Class 1(b) or 2(a))20
9Fire (Class 3)20
10Casualty (Class 2)20
11Personal Lines-Property Casualty20
12Motor Vehicle (Class 2(b) or 3(e))12.5
13    7.5 hours of each pre-licensing course must be completed in
14a classroom setting, except Motor Vehicle, which would require
155 hours in a classroom setting.
16    (c) A business entity acting as an insurance producer must
17obtain an insurance producer license. Application must be made
18using the Uniform Business Entity Application. Before
19approving the application, the Director must find that:
20        (1) the business entity has paid the fees set forth in
21    Section 500-135; and
22        (2) the business entity has designated a licensed
23    producer responsible for the business entity's compliance
24    with the insurance laws and rules of this State.
25    (d) The Director may require any documents reasonably
26necessary to verify the information contained in an

 

 

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1application.
2(Source: P.A. 96-839, eff. 1-1-10.)
 
3    (215 ILCS 5/500-70)
4    (Section scheduled to be repealed on January 1, 2027)
5    Sec. 500-70. License denial, nonrenewal, or revocation.
6    (a) The Director may place on probation, suspend, revoke,
7or refuse to issue or renew an insurance producer's license or
8may levy a civil penalty in accordance with this Section or
9take any combination of actions, for any one or more of the
10following causes:
11        (1) providing incorrect, misleading, incomplete, or
12    materially untrue information in the license application;
13        (2) violating any insurance laws, or violating any
14    rule, subpoena, or order of the Director or of another
15    state's insurance commissioner;
16        (3) obtaining or attempting to obtain a license through
17    misrepresentation or fraud;
18        (4) improperly withholding, misappropriating or
19    converting any moneys or properties received in the course
20    of doing insurance business;
21        (5) intentionally misrepresenting the terms of an
22    actual or proposed insurance contract or application for
23    insurance;
24        (6) for licensees, having been convicted of a felony,
25    unless the individual demonstrates to the Director

 

 

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1    sufficient rehabilitation to warrant the public trust;
2        (7) having admitted or been found to have committed any
3    insurance unfair trade practice or fraud;
4        (8) using fraudulent, coercive, or dishonest
5    practices, or demonstrating incompetence,
6    untrustworthiness or financial irresponsibility in the
7    conduct of business in this State or elsewhere;
8        (9) having an insurance producer license, or its
9    equivalent, denied, suspended, or revoked in any other
10    state, province, district or territory;
11        (10) forging a name to an application for insurance or
12    to a document related to an insurance transaction;
13        (11) improperly using notes or any other reference
14    material to complete an examination for an insurance
15    license;
16        (12) knowingly accepting insurance business from an
17    individual who is not licensed;
18        (13) failing to comply with an administrative or court
19    order imposing a child support obligation;
20        (14) failing to pay state income tax or penalty or
21    interest or comply with any administrative or court order
22    directing payment of state income tax or failed to file a
23    return or to pay any final assessment of any tax due to the
24    Department of Revenue;
25        (15) failing to make satisfactory repayment to the
26    Illinois Student Assistance Commission for a delinquent or

 

 

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1    defaulted student loan; or
2        (16) failing to comply with any provision of the
3    Viatical Settlements Act of 2009.
4    (b) If the action by the Director is to nonrenew, suspend,
5or revoke a license or to deny an application for a license,
6the Director shall notify the applicant or licensee and advise,
7in writing, the applicant or licensee of the reason for the
8suspension, revocation, denial or nonrenewal of the
9applicant's or licensee's license. The applicant or licensee
10may make written demand upon the Director within 30 days after
11the date of mailing for a hearing before the Director to
12determine the reasonableness of the Director's action. The
13hearing must be held within not fewer than 20 days nor more
14than 30 days after the mailing of the notice of hearing and
15shall be held pursuant to 50 Ill. Adm. Code 2402.
16    (c) The license of a business entity may be suspended,
17revoked, or refused if the Director finds, after hearing, that
18an individual licensee's violation was known or should have
19been known by one or more of the partners, officers, or
20managers acting on behalf of the partnership, corporation,
21limited liability company, or limited liability partnership
22and the violation was neither reported to the Director nor
23corrective action taken.
24    (d) In addition to or instead of any applicable denial,
25suspension, or revocation of a license, a person may, after
26hearing, be subject to a civil penalty of up to $10,000 for

 

 

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1each cause for denial, suspension, or revocation, however, the
2civil penalty may total no more than $100,000.
3    (e) The Director has the authority to enforce the
4provisions of and impose any penalty or remedy authorized by
5this Article against any person who is under investigation for
6or charged with a violation of this Code or rules even if the
7person's license or registration has been surrendered or has
8lapsed by operation of law.
9    (f) Upon the suspension, denial, or revocation of a
10license, the licensee or other person having possession or
11custody of the license shall promptly deliver it to the
12Director in person or by mail. The Director shall publish all
13suspensions, denials, or revocations after the suspensions,
14denials, or revocations become final in a manner designed to
15notify interested insurance companies and other persons.
16    (g) A person whose license is revoked or whose application
17is denied pursuant to this Section is ineligible to apply for
18any license for 3 years after the revocation or denial. A
19person whose license as an insurance producer has been revoked,
20suspended, or denied may not be employed, contracted, or
21engaged in any insurance related capacity during the time the
22revocation, suspension, or denial is in effect.
23(Source: P.A. 96-736, eff. 7-1-10.)
 
24    (215 ILCS 5/500-76 new)
25    Sec. 500-76. Applicant convictions.

 

 

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1    (a) The Director and the Department shall not require
2applicants to report the following information and shall not
3collect and consider the following criminal history records in
4connection with an insurance producer license application:
5        (1) Juvenile adjudications of delinquent minors as
6    defined in Section 5-105 of the Juvenile Court Act of 1987,
7    subject to the restrictions set forth in Section 5-130 of
8    that Act.
9        (2) Law enforcement records, court records, and
10    conviction records of an individual who was 17 years old at
11    the time of the offense and before January 1, 2014, unless
12    the nature of the offense required the individual to be
13    tried as an adult.
14        (3) Records of arrest not followed by a formal charge
15    or conviction.
16        (4) Records of arrest where charges were dismissed
17    unless related to the duties and responsibilities of an
18    insurance producer. However, applicants shall not be asked
19    to report any arrests, and any arrest not followed by a
20    conviction shall not be the basis of a denial and may be
21    used only to assess an applicant's rehabilitation.
22        (5) Convictions overturned by a higher court.
23        (6) Convictions or arrests that have been sealed or
24    expunged.
25    (b) The Director, upon a finding that an applicant for a
26license under this Act was previously convicted of a felony,

 

 

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1shall consider any mitigating factors and evidence of
2rehabilitation contained in the applicant's record, including
3any of the following factors and evidence, to determine if the
4prior conviction will impair the ability of the applicant to
5engage in the position for which a license is sought:
6        (1) the bearing, if any, of the offense for which the
7    applicant was previously convicted on the duties and
8    functions of the position for which a license is sought;
9        (2) whether the conviction suggests a future
10    propensity to endanger the safety and property of others
11    while performing the duties and responsibilities for which
12    a license is sought;
13        (3) whether 5 years since a felony conviction or 3
14    years since release from confinement for the conviction,
15    whichever is later, have passed without a subsequent
16    conviction;
17        (4) if the applicant was previously licensed or
18    employed in this State or other states or jurisdictions,
19    then the lack of prior misconduct arising from or related
20    to the licensed position or position of employment;
21        (5) the age of the person at the time of the criminal
22    offense;
23        (6) successful completion of sentence and, for
24    applicants serving a term of parole or probation, a
25    progress report provided by the applicant's probation or
26    parole officer that documents the applicant's compliance

 

 

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1    with conditions of supervision;
2        (7) evidence of the applicant's present fitness and
3    professional character;
4        (8) evidence of rehabilitation or rehabilitative
5    effort during or after incarceration or during or after a
6    term of supervision, including, but not limited to, a
7    certificate of good conduct under Section 5-5.5-25 of the
8    Unified Code of Corrections or certificate of relief from
9    disabilities under Section 5-5.5-10 of the Unified Code of
10    Corrections; and
11        (9) any other mitigating factors that contribute to the
12    person's potential and current ability to perform the
13    duties and responsibilities of an insurance producer.
14    (c) If a nonresident licensee meets the standards set forth
15in items (1) through (4) of subsection (a) of Section 500-40
16and has received consent pursuant to 18 U.S.C. 1033(e)(2) from
17his or her home state, the Director shall grant the nonresident
18licensee a license.
19    (d) If the Director refuses to issue a license to an
20applicant based, in whole or in part, upon a conviction or
21convictions, then the Director shall notify the applicant of
22the denial in writing with the following included in the notice
23of denial:
24        (1) a statement about the decision to refuse to issue a
25    license;
26        (2) a list of convictions that the Director determined

 

 

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1    will impair the applicant's ability to engage in the
2    position for which a license is sought;
3        (3) a list of the convictions that were the sole or
4    partial basis for the refusal to issue a license; and
5        (4) a summary of the appeal process or the earliest the
6    applicant may reapply for a license, whichever is
7    applicable.
 
8    (215 ILCS 5/1525)
9    Sec. 1525. Resident license.
10    (a) Before issuing a public adjuster license to an
11applicant under this Section, the Director shall find that the
12applicant:
13        (1) is eligible to designate this State as his or her
14    home state or is a nonresident who is not eligible for a
15    license under Section 1540;
16        (2) is sufficiently rehabilitated in cases in which the
17    applicant has not committed any act that is a ground for
18    denial, suspension, or revocation of a license as set forth
19    in Section 1555;
20        (3) is trustworthy, reliable, competent, and of good
21    reputation, evidence of which may be determined by the
22    Director;
23        (4) is financially responsible to exercise the license
24    and has provided proof of financial responsibility as
25    required in Section 1560 of this Article; and

 

 

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1        (5) maintains an office in the home state of residence
2    with public access by reasonable appointment or regular
3    business hours. This includes a designated office within a
4    home state of residence.
5    (b) In addition to satisfying the requirements of
6subsection (a) of this Section, an individual shall:
7        (1) be at least 18 years of age;
8        (2) have successfully passed the public adjuster
9    examination;
10        (3) designate a licensed individual public adjuster
11    responsible for the business entity's compliance with the
12    insurance laws, rules, and regulations of this State; and
13        (4) designate only licensed individual public
14    adjusters to exercise the business entity's license.
15    (c) The Director may require any documents reasonably
16necessary to verify the information contained in the
17application.
18(Source: P.A. 96-1332, eff. 1-1-11.)
 
19    (215 ILCS 5/1550 new)
20    Sec. 1550. Applicant convictions.
21    (a) The Director and the Department shall not require
22applicants to report the following information and shall not
23collect or consider the following criminal history records in
24connection with a public adjuster license application:
25        (1) Juvenile adjudications of delinquent minors as

 

 

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1    defined in Section 5-105 of the Juvenile Court Act of 1987,
2    subject to the restrictions set forth in Section 5-130 of
3    that Act.
4        (2) Law enforcement records, court records, and
5    conviction records of an individual who was 17 years old at
6    the time of the offense and before January 1, 2014, unless
7    the nature of the offense required the individual to be
8    tried as an adult.
9        (3) Records of arrest not followed by a formal charge
10    or conviction.
11        (4) Records of arrest where charges were dismissed
12    unless related to the duties and responsibilities of a
13    public adjuster. However, applicants shall not be asked to
14    report any arrests, and any arrest not followed by a
15    conviction shall not be the basis of a denial and may be
16    used only to assess an applicant's rehabilitation.
17        (5) Convictions overturned by a higher court.
18        (6) Convictions or arrests that have been sealed or
19    expunged.
20    (b) The Director, upon a finding that an applicant for a
21license under this Act was previously convicted of any felony
22or a misdemeanor directly related to the practice of the
23profession, shall consider any mitigating factors and evidence
24of rehabilitation contained in the applicant's record,
25including any of the following factors and evidence, to
26determine if the prior conviction will impair the ability of

 

 

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1the applicant to engage in the position for which a license is
2sought:
3        (1) the bearing, if any, of the offense for which the
4    applicant was previously convicted on the duties,
5    functions, and responsibilities of the position for which a
6    license is sought;
7        (2) whether the conviction suggests a future
8    propensity to endanger the safety and property of others
9    while performing the duties and responsibilities for which
10    a license is sought;
11        (3) if the applicant was previously licensed or
12    employed in this State or other states or jurisdictions,
13    then the lack of prior misconduct arising from or related
14    to the licensed position or position of employment;
15        (4) whether 5 years since a felony conviction or 3
16    years since release from confinement for the conviction,
17    whichever is later, have passed without a subsequent
18    conviction;
19        (5) successful completion of sentence and, for
20    applicants serving a term of parole or probation, a
21    progress report provided by the applicant's probation or
22    parole officer that documents the applicant's compliance
23    with conditions of supervision;
24        (6) evidence of the applicant's present fitness and
25    professional character;
26        (7) evidence of rehabilitation or rehabilitative

 

 

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1    effort during or after incarceration or during or after a
2    term of supervision, including, but not limited to, a
3    certificate of good conduct under Section 5-5.5-25 of the
4    Unified Code of Corrections or certificate of relief from
5    disabilities under Section 5-5.5-10 of the Unified Code of
6    Corrections; and
7        (8) any other mitigating factors that contribute to the
8    person's potential and current ability to perform the
9    duties and responsibilities of a public adjuster.
10    (c) If a nonresident licensee meets the standards set forth
11in items (1) through (4) of subsection (a) of Section 1540 and
12has received consent pursuant to 18 U.S.C. 1033(e)(2) from his
13or her home state, the Director shall grant the nonresident
14licensee a license.
15    (d) If the Director refuses to issue a license to an
16applicant based, in whole or in part, on a conviction or
17convictions, then the Director shall notify the applicant of
18the denial in writing with the following included in the notice
19of denial:
20        (1) a statement about the decision to refuse to issue a
21    license;
22        (2) a list of convictions that the Director determined
23    will impair the applicant's ability to engage in the
24    position for which a license is sought;
25        (3) a list of the convictions that were the sole or
26    partial basis for the refusal to issue a license; and

 

 

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1        (4) a summary of the appeal process or the earliest the
2    applicant may reapply for a license, whichever is
3    applicable.
 
4    (215 ILCS 5/1555)
5    Sec. 1555. License denial, nonrenewal, or revocation.
6    (a) The Director may place on probation, suspend, revoke,
7deny, or refuse to issue or renew a public adjuster's license
8or may levy a civil penalty or any combination of actions, for
9any one or more of the following causes:
10        (1) providing incorrect, misleading, incomplete, or
11    materially untrue information in the license application;
12        (2) violating any insurance laws, or violating any
13    regulation, subpoena, or order of the Director or of
14    another state's Director;
15        (3) obtaining or attempting to obtain a license through
16    misrepresentation or fraud;
17        (4) improperly withholding, misappropriating, or
18    converting any monies or properties received in the course
19    of doing insurance business;
20        (5) intentionally misrepresenting the terms of an
21    actual or proposed insurance contract or application for
22    insurance;
23        (6) for licensees, having been convicted of a felony or
24    misdemeanor involving dishonesty or fraud, unless the
25    individual demonstrates to the Director sufficient

 

 

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1    rehabilitation to warrant the public trust;
2        (7) having admitted or been found to have committed any
3    insurance unfair trade practice or insurance fraud;
4        (8) using fraudulent, coercive, or dishonest
5    practices; or demonstrating incompetence,
6    untrustworthiness, or financial irresponsibility in the
7    conduct of business in this State or elsewhere;
8        (9) having an insurance license or public adjuster
9    license or its equivalent, denied, suspended, or revoked in
10    any other state, province, district, or territory;
11        (10) forging another's name to an application for
12    insurance or to any document related to an insurance
13    transaction;
14        (11) cheating, including improperly using notes or any
15    other reference material, to complete an examination for an
16    insurance license or public adjuster license;
17        (12) knowingly accepting insurance business from or
18    transacting business with an individual who is not licensed
19    but who is required to be licensed by the Director;
20        (13) failing to comply with an administrative or court
21    order imposing a child support obligation;
22        (14) failing to pay State income tax or comply with any
23    administrative or court order directing payment of State
24    income tax;
25        (15) failing to comply with or having violated any of
26    the standards set forth in Section 1590 of this Law; or

 

 

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1        (16) failing to maintain the records required by
2    Section 1585 of this Law.
3    (b) If the action by the Director is to nonrenew, suspend,
4or revoke a license or to deny an application for a license,
5the Director shall notify the applicant or licensee and advise,
6in writing, the applicant or licensee of the reason for the
7suspension, revocation, denial, or nonrenewal of the
8applicant's or licensee's license. The applicant or licensee
9may make written demand upon the Director within 30 days after
10the date of mailing for a hearing before the Director to
11determine the reasonableness of the Director's action. The
12hearing must be held within not fewer than 20 days nor more
13than 30 days after the mailing of the notice of hearing and
14shall be held pursuant to 50 Ill. Adm. Code 2402.
15    (c) The license of a business entity may be suspended,
16revoked, or refused if the Director finds, after hearing, that
17an individual licensee's violation was known or should have
18been known by one or more of the partners, officers, or
19managers acting on behalf of the business entity and the
20violation was neither reported to the Director, nor corrective
21action taken.
22    (d) In addition to or in lieu of any applicable denial,
23suspension or revocation of a license, a person may, after
24hearing, be subject to a civil penalty. In addition to or
25instead of any applicable denial, suspension, or revocation of
26a license, a person may, after hearing, be subject to a civil

 

 

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1penalty of up to $10,000 for each cause for denial, suspension,
2or revocation, however, the civil penalty may total no more
3than $100,000.
4    (e) The Director shall retain the authority to enforce the
5provisions of and impose any penalty or remedy authorized by
6this Article against any person who is under investigation for
7or charged with a violation of this Article even if the
8person's license or registration has been surrendered or has
9lapsed by operation of law.
10    (f) Any individual whose public adjuster's license is
11revoked or whose application is denied pursuant to this Section
12shall be ineligible to apply for a public adjuster's license
13for 5 years. A suspension pursuant to this Section may be for
14any period of time up to 5 years.
15(Source: P.A. 96-1332, eff. 1-1-11.)
 
16    Section 99. Effective date. This Act takes effect January
171, 2018.".