97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1306

 

Introduced 2/8/2011, by Sen. Thomas Johnson

 

SYNOPSIS AS INTRODUCED:
 
New Act
5 ILCS 80/4.32 new

    Creates the Collateral Recovery Act. Requires the licensure of repossession agencies and recovery managers, and the registration of repossession agency employees, within 6 months after the effective date of the Act. Grants rulemaking authority to the Illinois Commerce Commission. Sets forth provisions concerning qualifications, application, examination, assignment, insurance requirements, and administrative proceedings. Provides that all monies collected by the Illinois Commerce Commission under the Act shall be deposited into the Transportation Regulatory Fund in the State Treasury and used by the Illinois Commerce Commission for the administration of the Act. Provides that any municipality or county, including a home rule unit, may not regulate individuals and entities engaged in the business of collateral recovery in a manner inconsistent with this Act. Amends the Regulatory Sunset Act to set a January 1, 2022 repeal date for the new Act. Effective immediately.


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CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY
FISCAL NOTE ACT MAY APPLY
HOME RULE NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1306LRB097 08920 CEL 49052 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Collateral Recovery Act.
 
6    Section 5. Findings; purpose. The General Assembly finds
7that collateral recovery practices affect public health,
8safety, and welfare and declares that the purpose of this Act
9is to regulate individuals and entities engaged in the business
10of collateral recovery for the protection of the public.
 
11    Section 10. Definitions. In this Act:
12    "Assignment" means a written authorization by a legal
13owner, lien holder, lessor, or lessee to locate or repossess
14any collateral, including, but not limited to, collateral
15registered under the Illinois Vehicle Code that is subject to a
16security agreement that contains a repossession clause.
17"Assignment" also means a written authorization by an employer
18to recover any collateral entrusted to an employee or former
19employee if the possessor is wrongfully in the possession of
20the collateral. A photocopy, facsimile copy, or electronic copy
21of an assignment shall have the same force and effect as an
22original written assignment.

 

 

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1    "Branch office" means each additional office and secured
2storage facility location of a repossession agency conducting
3business within the State of Illinois and operating under the
4same name as the repossession agency where business is actively
5conducted that advertises as performing or is engaged in the
6business authorized by the licensure. Each branch office must
7be individually licensed.
8    "Collateral" means any vehicle, boat, recreational
9vehicle, motor home, motorcycle, or other property that is
10subject to a security agreement.
11    "Commission" means the Illinois Commerce Commission.
12    "Debtor" means any person or entity obligated under a
13security agreement.
14    "Financial institution" means a bank, savings bank,
15savings and loan association, or credit union organized and
16operating under the laws of this or any other state or of the
17United States, and any subsidiary or affiliate thereof.
18    "Legal owner" means a person holding (i) a security
19interest in any collateral that is subject to a security
20agreement, (ii) a lien against any collateral, or (iii) an
21interest in any collateral that is subject to a lease
22agreement.
23    "Licensure" means the approval of the required criteria
24that has been submitted for review in accordance with the
25provisions of this Act.
26    "Licensed recovery manager" means a person who possesses a

 

 

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1valid license in accordance with the provisions of this Act and
2is in control or management of an Illinois repossession agency.
3    "Personal effects" means any property contained within or
4on repossessed collateral that is not the property of the legal
5owner.
6    "Recovery permit" means a permit issued by the Commission
7to a repossession agency employee who has met all the
8requirements under this Act.
9    "Recovery ticket" means a serialized record obtained from
10the Commission for any repossessed vehicle or collateral from
11any person, business, financial institution, state agency,
12automotive dealership, or towing company that shows a recovery
13ticket fee has been paid to the Commission.
14    "Repossession agency" means any person or entity
15conducting business within the State of Illinois, that, for any
16type of consideration, engages in the business of, accepts
17employment to furnish, or agrees to provide or provides
18property locating services, property recovery, recovered
19property transportation, recovered property storage, or all
20services relevant to any of the following:
21        (1) The location, disposition, or recovery of property
22    as authorized by the self-help provisions of the Uniform
23    Commercial Code.
24        (2) The location, disposition, or recovery of lost or
25    stolen property.
26        (3) Securing evidence concerning repossession and

 

 

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1    recovery to be used before any court, board, office, or
2    investigating committee.
3        (4) Inventory of property contained in or on the
4    collateral or recovered property.
5        (5) The possession of collateral.
6        (6) The prevention of the misappropriation or
7    concealment of chattel, vehicles, goods, objects,
8    documents, or papers. A repossession agency must maintain a
9    secured storage facility.
10    "Repossession agency" does not include any of the
11following:
12        (1) An attorney at law who is performing his or her
13    duties as an attorney at law.
14        (2) The legal owner of collateral that is subject to a
15    security agreement.
16        (3) An officer or employee of the United States of
17    America or of this State or a political subdivision of this
18    State, while the officer or employee is engaged in the
19    performance of his or her official duties.
20        (4) A qualified license or recovery permit holder or a
21    registrant when performing services for, or on behalf of, a
22    licensed repossession agency.
23    "Repossession agency employee" means any person or
24self-employed independent contractor who is hired by a
25repossession agency.
26    "Secured storage facility" means an area located on the

 

 

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1same premises as a repossession agency office or branch office,
2that is designated for the storage of collateral and has a
3perimeter that is secured with a fencing construction that
4makes the area not accessible to the public. Each repossession
5agency office or branch office must maintain a secured storage
6facility.
7    "Security agreement" means an obligation, pledge,
8mortgage, chattel mortgage, lease agreement, deposit, or lien,
9given by a debtor as security for payment or performance of his
10or her debt, by furnishing the creditor with a recourse to be
11used in case of failure in the principal obligation. "Security
12agreement" includes a bailment where an employer-employee
13relationship exists or existed between the bailor and the
14bailee.
 
15    Section 15. Powers of Commission.
16    (a) The Commission shall regulate repossession agencies
17and their employees, managers or agents in accordance with this
18Act, and to that end may establish reasonable requirements with
19respect 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 hearings examiners, special examiners,
11    enforcement officers, investigators, or otherwise.
12    (c) The staff of the Commission shall have full power and
13authority in the performance of their official duties to enter
14into or upon any place, building, or premises of any
15repossession agency location or branch office location at any
16reasonable time for the purpose of inspecting such agency
17operating under this Act.
 
18    Section 20. Rulemaking enforcement.
19    (a) The Commission may adopt any rules and procedures
20necessary to administer the provisions of this Act and shall
21work in conjunction with the Illinois Commerce Commission
22Police in adopting any rules and procedures necessary to
23enforce the provisions of this Act.
24    (b) The Commission may, by administrative rule, modify any
25rules or procedures or adjust any fees necessary to regulate

 

 

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1and enforce the provisions of this Act.
 
2    Section 25. Recovery ticket.
3    (a) A licensed repossession agency must purchase a recovery
4ticket from the Commission for each repossessed vehicle or
5collateral. The recovery ticket must show all of the following
6information:
7        (1) The date, time, and location 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 debtor's name, the agency name, the employee's
12    name, and the 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 must be placed with the vehicle or
17collateral at the time of repossession and must accompany the
18vehicle or collateral until it has been liquidated or returned
19to the lien holder or debtor. A copy of the recovery ticket
20must be kept for the agency's permanent file for a period of 2
21years following the date of repossession. A copy of the
22recovery ticket must be returned to the legal owner or
23financial institution within 72 hours following the date of
24repossession.
25    (c) A fee for the recovery ticket must be collected by the

 

 

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1Commission at the time of purchase. The cost for each recovery
2ticket is $5.50 and is nonrefundable. Recovery tickets must
3only be sold in lots of 50 and 100. Only an Illinois licensed
4repossession agency may purchase recovery tickets.
5    If a repossession agency's license is revoked by the
6Commission, then the repossession agency must return any and
7all unused recovery tickets to the Commission immediately upon
8license revocation. No refund from the Commission will be
9issued for the return of unused recovery tickets.
10    (d) Any agency or employee found to be in possession of a
11repossessed vehicle without having a valid recovery ticket is
12in violation of this Act and therefore jeopardizing the license
13of the employee or the agency that he or she is repossessing
14for.
 
15    Section 30. License or registration required.
16    (a) Beginning 6 months after the effective date of this
17Act, it shall be unlawful for any person or entity to repossess
18a vehicle or collateral in this State, attempt to repossess a
19vehicle or collateral in this State, or to hold himself,
20herself, or itself out to be a repossession agency unless
21licensed under this Act.
22    (b) Beginning 6 months after the effective date of this
23Act, it shall be unlawful for any person to repossess a vehicle
24or collateral in this State, attempt to repossess a vehicle or
25collateral in this State, or to hold himself or herself out to

 

 

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1be a licensed recovery manager unless licensed under this Act.
2    (c) Beginning 6 months after the effective date of this
3Act, it shall be unlawful for any person to repossess a vehicle
4or collateral in this State, attempt to repossess a vehicle or
5collateral in this State, or hold himself or herself out to be
6a repossession agency employee unless he or she holds a valid
7recovery permit issued by the Commission under this Act.
8    (d) This Act does not apply to a financial institution or
9the employee of a financial institution when engaged in an
10activity otherwise covered by this Act if the activity is
11conducted by the employee on behalf of that financial
12institution.
 
13    Section 35. Application for repossession agency licensure.
14    (a) Application for original licensure as a repossession
15agency shall be made to the Commission in writing on forms
16prescribed by the Commission and shall be accompanied by the
17appropriate documentation and the required fee, which fee is
18nonrefundable.
19    (b) Every application shall state, in addition to any other
20requirements, (i) the name of the applicant, (ii) the name
21under which the applicant will do business, (iii) the proposed
22location of the agency by number and street and city, and (iv)
23the usual business hours that the agency will maintain.
24    (c) No license may be issued (i) in any fictitious name
25that may be confused with or is similar to any federal, state,

 

 

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

 

 

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1ever used an alias.
2    (f) If the applicant for licensure as a repossession agency
3is a corporation, then the application shall include (i) the
4names and full residential addresses of all corporation
5officers and (ii) a sworn statement signed by a duly authorized
6officer of the corporation verifying the name of the person who
7is a licensed recovery manager and will be in control of the
8agency. If a licensed recovery manager who is not an officer
9will be in control of the agency, then he or she must also sign
10the sworn statement. The application shall also state whether
11any of the officers has ever used an alias.
12    (g) If the applicant for licensure as a repossession agency
13is a limited liability company, then the application shall
14include (i) the names and full residential addresses of all
15company owners and (ii) a sworn statement signed by each owner
16verifying the name of the person who is a licensed recovery
17manager and will be in control of the agency. If a licensed
18recovery manager who is not an owner will be in control of the
19agency, then he or she must also sign the sworn statement. The
20application shall also state whether any of the owners has ever
21used an alias.
22    (h) Each individual, partner of a partnership, officer of a
23corporation, or owner of a limited liability company shall
24submit with the application a copy of one form of personal
25identification upon which must appear a photograph taken within
26one year immediately preceding the date of the filing of the

 

 

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1application.
2    (i) No examination shall be required for licensure as a
3repossession agency by the Commission.
4    (j) The Commission may require any additional information
5that, in the judgment of the Commission, will enable the
6Commission to pass on the qualifications of the applicant for
7licensure.
8    (k) Applicants have 90 days from the date of application to
9complete the application process. If the application has not
10been completed within 90 days, then the application shall be
11denied, the fee shall be forfeited, and the applicant must
12reapply and meet the requirements in effect at the time of
13reapplication.
14    (l) Nothing in this Section precludes a domestic or foreign
15limited liability company being licensed as a repossession
16agency.
17    (m) A repossession agency license is not transferable.
18    (n) Repossessions performed in this State must be performed
19by repossession agencies, their employees, or agents licensed
20by the Commission, with the exception of financial institutions
21or the employees of a financial institution that are exempt
22under subsection (d) of Section 30 of this Act.
 
23    Section 37. Enforcement. It shall be unlawful for any
24repossession agency, employee, or agent of a repossession
25agency to operate in this State without a valid license or

 

 

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1recovery permit issued by the Commission. It shall be unlawful
2for any person or entity to forward, transfer, or subcontract
3an assignment to a repossession agency or its employees or
4agents who do not have a valid license or recovery permit
5issued by the Commission. The Commission may, at any time
6during the term of the license, make inquiry into the
7licensee's management or conduct of business to determine
8compliance with the provisions of this Act or the rules adopted
9pursuant to this Act.
 
10    Section 40. Qualifications for recovery manager;
11identification card.
12    (a) An applicant is qualified for licensure as a recovery
13manager if that person meets all of the following requirements:
14        (1) Is 21 years of age or older.
15        (2) Has not been convicted in any jurisdiction of any
16    felony or at least 10 years has passed from the time of
17    discharge from any sentence imposed for a felony.
18        (3) Has completed no less than 5,000 hours of actual
19    compensated collateral recovery work as an employee of a
20    repossession agency, a financial institution, or a vehicle
21    dealer in the 3 years immediately preceding the filing of
22    an application, acceptable proof of which must be submitted
23    to the Commission.
24        (4) Has submitted to the Commission 2 sets of
25    fingerprints, which shall be checked against the

 

 

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1    fingerprint records on file with the Illinois Commerce
2    Commission Police and the Federal Bureau of Investigation
3    in the manner set forth in Section 60 of this Act.
4        (5) Has successfully completed the Certified Asset
5    Recovery Specialist (C.A.R.S.) program, or any other
6    nationally recognized certification program.
7        (6) Has paid the required application fees.
8    (b) Upon the issuance of a recovery manager license, the
9Commission shall issue the license holder a suitable pocket
10identification card that shall include a photograph of the
11license holder. The identification card must contain the name
12of the license holder and that of the repossession agency that
13employs the license holder, in addition to any other
14information required by the Commission.
15    (c) A recovery manager license is not transferable.
 
16    Section 45. Repossession agency employee requirements.
17    (a) All employees of a licensed repossession agency whose
18duties include the actual repossession of collateral must apply
19for a recovery permit. The holder of a repossession agency
20license issued under this Act, known in this Section as the
21"employer", may employ in the conduct of the business under the
22following provisions:
23        (1) No person may be issued a recovery permit who meets
24    any of the following criteria:
25            (A) Is younger than 21 years of age.

 

 

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1            (B) Has been determined by the Commission to be
2        unfit by reason of conviction of an offense in this or
3        another state, other than a minor traffic offense. The
4        Commission shall adopt rules for making those
5        determinations.
6            (C) Has had a license or recovery permit denied,
7        suspended, or revoked under this Act.
8            (D) Has not successfully completed the Certified
9        Asset Recovery Specialist (C.A.R.S.) program, or any
10        other nationally recognized certification program.
11        (2) No person may be employed by a repossession agency
12    under this Section until he or she has executed and
13    furnished to the Commission, on forms furnished by the
14    Commission, a verified statement to be known as an
15    "Employee's Statement" setting forth all of the following:
16            (A) The person's full name, age, and residence
17        address.
18            (B) The business or occupation engaged in for the 5
19        years immediately before the date of the execution of
20        the statement, the place where the business or
21        occupation was engaged in, and the names of the
22        employers, if any.
23            (C) That the person has not had a license or
24        recovery permit denied, revoked, or suspended under
25        this Act.
26            (D) Any conviction of a felony.

 

 

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

 

 

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1    (c) Qualified applicants shall purchase a recovery permit
2from a vendor designated by the Commission and in a form that
3the Commission prescribes. The Commission shall notify the
4submitting person within 10 days after receipt of the
5application of its intent to issue or deny the recovery permit.
6The holder of a recovery permit shall carry the recovery permit
7at all times while actually engaged in the performance of the
8duties of his or her employment. Expiration and requirements
9for renewal of recovery permits shall be established by rule of
10the Commission. Possession of a recovery permit does not in any
11way imply that the holder of the recovery permit is employed by
12any agency unless the recovery permit is accompanied by the
13employee identification card required by subsection (e) of this
14Section.
15    (d) Each employer shall maintain a record of each employee
16that is accessible to the duly authorized representatives of
17the Commission. The record shall contain all of the following
18information:
19        (1) A photograph taken within 10 days after the date
20    that the employee begins employment with the employer. The
21    photograph shall be replaced with a current photograph
22    every 3 calendar years.
23        (2) The Employee's Statement specified in paragraph
24    (2) of subsection (a) of this Section.
25        (3) All correspondence or documents relating to the
26    character and integrity of the employee received by the

 

 

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1    employer from any official source or law enforcement
2    agency.
3        (4) In the case of former employees, the employee
4    identification card of that person issued under subsection
5    (e) of this Section.
6    (e) Every employer shall furnish an employee
7identification card to each of his or her employees. This
8subsection (e) shall not apply to office or clerical personnel.
9This employee identification card shall contain a recent
10photograph of the employee, the employee's name, the name and
11agency license number of the employer, the employee's personal
12description, the signature of the employer, the signature of
13that employee, the date of issuance, and an employee
14identification card number.
15    (f) No employer may issue an employee identification card
16to any person who is not employed by the employer in accordance
17with this Section or falsely state or represent that a person
18is or has been in his or her employ. It is unlawful for an
19applicant for registration to file with the Commission the
20fingerprints of a person other than himself or herself or to
21fail to exercise due diligence in resubmitting replacement
22fingerprints for those employees who have had original
23fingerprint submissions returned as unclassifiable.
24    (g) Every employer shall obtain the identification card of
25every employee who terminates employment with the employer.
26    (h) No agency may employ any person to perform any activity

 

 

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1under this Act unless the person possesses a valid license or
2recovery permit under this Act.
3    (i) Notwithstanding the provisions of subsection (h) of
4this Section, an agency may employ a person in a temporary
5capacity if all of the following conditions are met:
6        (1) The agency completes in its entirety and submits to
7    the Commission an application for a recovery permit,
8    including the required fees.
9        (2) The agency has verification from the Commission
10    that the applicant has no record of any criminal conviction
11    pursuant to the criminal history records check conducted by
12    the Illinois Commerce Commission Police. The agency shall
13    maintain the verification of the results of the Illinois
14    Commerce Commission Police criminal history records check
15    as part of the employee record as required under subsection
16    (d) of this Section.
17        (3) The agency exercises due diligence to ensure that
18    the person is qualified under the requirements of the Act
19    to be issued a recovery permit.
20        (4) The agency maintains a separate roster of the names
21    of all employees whose applications are currently pending
22    with the Commission and submits the roster to the
23    Commission on a monthly basis. Rosters are to be maintained
24    by the agency for a period of at least 24 months. An agency
25    may employ an employee applicant only if (i) it either
26    submits an employee application and all required forms and

 

 

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1    fees or confirms with the Commission that an employee
2    application and all required forms and fees have been
3    submitted by another agency, and (ii) all other
4    requirements of this Section are met. The Commission shall
5    have the authority to revoke, without a hearing, the
6    temporary authority of an individual to work upon receipt
7    of Federal Bureau of Investigation fingerprint data or the
8    report of another official authority indicating a criminal
9    conviction. If the Commission has not received a temporary
10    employee's Federal Bureau of Investigation fingerprint
11    data within 120 days after the date the Commission received
12    the Illinois Commerce Commission Police fingerprint data,
13    then the Commission may, at its discretion, revoke the
14    employee's temporary authority to work with 15 days written
15    notice to the individual and the employing agency.
16    An agency may not employ a person in a temporary capacity
17if it knows or reasonably should know that the person has been
18convicted of a crime under the laws of this State, has been
19convicted in another state of any crime that is a crime under
20the laws of this State, has been convicted of any crime in
21federal court, or has been posted as an unapproved applicant by
22the Commission. Notice by the Commission to the agency, via
23certified mail, personal delivery, electronic mail, or posting
24on an internet site accessible to the agency that the person
25has been convicted of a crime shall be deemed constructive
26knowledge of the conviction on the part of the agency. The

 

 

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1Commission may adopt rules to implement this subsection (i).
2    (j) If information is discovered affecting the
3registration of a person whose fingerprints were submitted
4under this Section, then the Commission shall so notify the
5agency that submitted the fingerprints on behalf of that
6person.
7    (k) A person employed under this Section shall have 15
8business days within which to notify the Commission of any
9change in employer. Upon notification and payment of the
10required fee, the Commission shall issue that person a new
11recovery card, provided that the person's current employer is a
12licensed repossession agency.
13    (l) This Section applies only to those employees of
14licensed repossession agencies whose duties include actual
15repossession of collateral.
 
16    Section 50. Fees.
17    (a) The Commission shall establish by rule license and
18permit fees, which shall not exceed the following:
19        (1) Class "R" license (recovery agency), $825.
20        (2) Class "RR" license (branch office), $425.
21        (3) Class "MR" license (recovery agency manager),
22    $325.
23        (4) Class "E" recovery permit (recovery agent), $75.
24        (5) Class "EE" recovery permit (recovery agent
25    intern), $75.

 

 

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1    (b) The Commission may establish by rule a fee for the
2replacement or revision of a license or recovery permit.
3    (c) The fees set forth in the Section must be paid by
4certified check or money order, or at the discretion of the
5Commission, by agency check at the time the application is
6approved, except that an applicant for a Class "E", Class "EE",
7or Class "MR" license or permit must pay the license or permit
8fee at the time the application is made. If a license or permit
9is revoked or denied, or if an application is withdrawn, then
10the license or permit fee shall not be refunded.
 
11    Section 55. Social Security Number or Federal Employee
12Identification Number on application. In addition to any other
13information required by the Commission to be contained in the
14application, every application for original, renewal, or
15restored license or permit shall include the applicant's Social
16Security Number, if an individual, or Federal Employer
17Identification Number, if not an individual. The Commission
18shall not disclose an individual's Social Security Number and
19must keep that Social Security Number confidential unless
20disclosure is required by law.
 
21    Section 60. Criminal background check. The Commission
22shall require that each individual, partner of a partnership,
23officer of a corporation, or owner of a limited liability
24company, as part of the application process, authorize a

 

 

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1criminal history records check to determine if such applicant
2has ever been charged with a crime and if so, the disposition
3of those charges. Upon this authorization, each individual,
4partner of a partnership, officer of a corporation, or owner of
5a limited liability company shall submit his or her
6fingerprints to the Commission in the form and manner
7prescribed by the Illinois Commerce Commission Police. These
8fingerprints shall be checked against the fingerprint records
9now and hereafter filed in the Illinois Commerce Commission
10Police and Federal Bureau of Investigation criminal history
11records databases. The Commission shall charge a fee for
12conducting the criminal history records check, which shall be
13deposited in the Transportation Regulatory Fund and shall not
14exceed the actual cost of the records check. The Illinois
15Commerce Commission Police shall provide information
16concerning any criminal charges, and their disposition, now or
17hereafter filed against an applicant upon request of the
18Commission when the request is made in the form and manner
19required by the Illinois Commerce Commission Police.
 
20    Section 65. Licensed recovery manager in control of
21repossession agency.
22    (a) As a condition of licensure, a licensed recovery
23manager must, at all times, be in control of a repossession
24agency. Each licensed repossession agency and licensed branch
25office location must have a licensed recovery manager on site.

 

 

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1The licensed recovery manager in control must spend over 51% of
2the usual business hours conducting business related to
3collateral recovery at the licensed location.
4    (b) A licensed recovery manager may only be in control of
5one repossession agency or branch office location at one time.
6Upon written request by a representative of an agency within 10
7days after the loss of the licensed recovery manager in control
8due to the death of the license holder or because of an
9unanticipated termination of his or her employment, the
10Commission shall issue a temporary permit allowing the
11continuing operation of a previously licensed repossession
12agency. The temporary permit shall be valid for no more than 90
13days. Upon written request by the representative of the agency,
14an extension of an additional 90 days may be granted by the
15Commission for good cause shown. No more than 2 extensions may
16be granted to any repossession agency. A temporary permit may
17not be issued for loss of the licensed recovery manager in
18control if that loss is due to disciplinary action taken by the
19Commission.
20    (c) Whenever a licensed recovery manager in control of a
21repossession agency ceases to be in control, the licensed
22agency shall file notice with the Commission within 30 days
23after the cessation. If the repossession agency fails to give
24written notice at the end of the 30-day period, then the
25agency's license shall automatically be suspended. If the
26notice is filed, then the license shall remain in force for a

 

 

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1period of 90 days after the filing of the notice. At the end of
2the 90-day period or an additional period, not to exceed one
3year, as specified by the Commission, if written notice is not
4given that a licensed recovery manager is then in control of
5the agency, then the agency's license shall automatically be
6suspended. A license suspended under this Section may be
7reinstated upon payment of a reinstatement fee, to be
8determined by the Commission, and submission of a reinstatement
9application.
10    (d) Except as otherwise provided in this Act, no person may
11serve as the licensed recovery manager in control of a licensed
12repossession agency if that person has ever had a repossession
13agency's license revoked or if the person was a partner,
14managing employee, owner, or officer of a repossession agency
15the license of which has been revoked for cause.
16    (e) The license of the recovery manager in control of a
17licensed repossession agency, together with the agency's
18license, shall be conspicuously displayed at the agency
19location of which the recovery manager is in control.
20    (f) A license extended under this Section is subject to all
21other provisions of this Act.
 
22    Section 70. License extension in cases of death or
23disassociation.
24    (a) In the case of the death of a person who is licensed
25individually as a repossession agency, a member of the

 

 

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1deceased's immediate family shall be entitled to continue
2operating the agency under the same license for up to 120 days
3following the date of death, provided that written notice is
4given to the Commission within 30 days following the date of
5death. At the end of the 120-day period, the license shall
6automatically be revoked.
7    (b) In the case of the death or disassociation of a partner
8of a partnership licensed as a repossession agency, the company
9shall notify the Commission, in writing, within 30 days from
10the death or disassociation of the partner. If they fail to
11notify the Commission within the 30-day period, then the
12license shall automatically be revoked at the end of that
13period. If proper notice is given, then the license shall
14remain in force for 90 days following the date of death or
15disassociation of the partner. At the end of the 90-day period,
16the license shall automatically be revoked.
17    (c) A license extended under this Section is subject to all
18other provisions of this Act.
 
19    Section 75. Licenses and recovery permits; renewals;
20restoration; person in military service.
21    (a) An original Class "R" license, Class "RR" license, and
22Class "MR" license, shall expire 2 years after the date of
23issuance.
24    (b) An original Class "E" recovery permit and Class "EE"
25recovery permit shall expire one year after the date of

 

 

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

 

 

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1    recovery permit.
2        (6) An individual shall have a Class "E" recovery
3    permit if he or she owns or is an employee of a Class "R"
4    agency or Class "RR" branch office.
5        (7) Class "R", Class "RR", Class "MR", Class "E", and
6    Class "EE" licenses and recovery permits are not
7    transferable.
8    (f) At least 90 days prior to the expiration of a license
9or recovery permit, the Commission shall mail to the license or
10permit holder a renewal form in the form and manner prescribed
11by the Commission. The license holder or recovery permit holder
12must complete and mail the renewal form to the Commission, pay
13any fines assessed, and pay any renewal fee required by the
14Commission.
15    (g) Any person or entity that has permitted a license or
16recovery permit to expire may have that license or recovery
17permit restored by making an application to the Commission
18within one year after the expiration of a repossession agency's
19license or a qualified manager license or within 30 days after
20the expiration of a recovery permit, filing proof acceptable to
21the Commission of fitness to have the license or recovery
22permit restored, and paying the required restoration fee.
23However, any person whose license or recovery permit expired
24while (i) in federal service on active duty with the Armed
25Forces of the United States or called into service or training
26with the State militia or (ii) in training or education under

 

 

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1the supervision of the United States preliminary to induction
2into military service may have his or her license or recovery
3permit renewed or restored without paying any lapsed renewal
4fees, if within 2 years after honorable termination of the
5service, training, or education, except under condition other
6than honorable, he or she furnishes the Commission with
7satisfactory evidence to the effect that he or she has been so
8engaged and that the service, training, or education has been
9so terminated.
10    (h) A suspended repossession agency license, recovery
11manager license, or recovery permit is subject to expiration as
12set forth in this Section. Renewal of a certificate or
13registration card does not entitle the license holder or
14recovery permit holder, while the license or recovery permit
15remains suspended and until it is reinstated, to engage in the
16licensed or permitted activity.
17    (i) A revoked repossession agency license, recovery
18manager license, or recovery permit is subject to expiration as
19set forth in this Section; however, it may not be renewed. If a
20revoked license or recovery permit is reinstated after its
21expiration, then the license holder or recovery permit holder,
22as a condition of reinstatement, shall pay a reinstatement fee
23in an amount equal to the renewal fee in effect on the last
24regular renewal date prior to the date on which the license or
25recovery permit is reinstated and any additional delinquency
26fee required by the Commission.

 

 

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1    (j) Any person or entity that notifies the Commission, in
2writing on forms prescribed by the Commission, may place a
3license or recovery permit on inactive status and shall be
4excused from the payment of renewal fees until the person or
5entity notifies the Commission in writing of the intention to
6resume active practice. Any person or entity requesting that a
7license or recovery permit be changed from inactive to active
8status shall be required to pay the current renewal fee.
9    (k) Any repossession agency license holder, recovery
10manager license holder, or recovery permit holder whose license
11or recovery permit is nonrenewed or on inactive status shall
12not engage in the practice of recovery in this State or use the
13title or advertise that he, she, or it performs the services of
14a licensed repossession agency, licensed recovery manager, or
15repossession agency employee.
16    (l) Any person violating subsection (k) of this Section
17shall be considered to be operating a repossession agency
18without a license, acting as a recovery manager without a
19license, or acting as a repossession agency employee without a
20recovery permit and is subject to the disciplinary provisions
21of this Act.
22    (m) A repossession agency license, recovery manager
23license, or recovery permit that is not renewed within 3 years
24after its expiration may not be renewed, restored, reinstated,
25or reissued thereafter. The holder of the license or recovery
26permit may obtain a new license or recovery permit only upon

 

 

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1compliance with all of the provisions of this Act concerning
2the issuance of original licenses or recovery permits.
 
3    Section 80. Refusal, revocation, or suspension.
4    (a) The Commission may refuse to issue or renew or may
5revoke any license or recovery permit or may suspend, place on
6probation, fine, or take any disciplinary action that the
7Commission may deem proper, including fines not to exceed
8$2,500 for each violation, with regard to any license holder or
9recovery permit holder for one or any combination of the
10following causes:
11        (1) Knowingly making any misrepresentation for the
12    purpose of obtaining a license or recovery permit.
13        (2) Violations of this Act or its rules.
14        (3) Conviction of any crime under the laws of the
15    United States or any state or territory thereof that is (i)
16    a felony, (ii) a misdemeanor, an essential element of which
17    is dishonesty, or (iii) a crime that is related to the
18    practice of the profession.
19        (4) Aiding or abetting another in violating any
20    provision of this Act or its rules.
21        (5) Engaging in dishonorable, unethical, or
22    unprofessional conduct of a character likely to deceive,
23    defraud, or harm the public as defined by rule.
24        (6) Violation of any court order from any State or
25    public agency engaged in the enforcement of payment of

 

 

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1    child support arrearages or for noncompliance with certain
2    processes relating to paternity or support proceeding.
3        (7) Solicitation of professional services by using
4    false or misleading advertising.
5        (8) A finding that the license or recovery permit was
6    obtained by fraudulent means.
7        (9) Practicing or attempting to practice under a name
8    other than the full name shown on the license or recovery
9    permit or any other legally authorized name.
10    (b) The Commission may refuse to issue or may suspend the
11license or recovery permit of any person or entity who fails to
12file a return, pay the tax, penalty, or interest shown in a
13filed return, or pay any final assessment of tax, penalty, or
14interest, as required by any tax Act administered by the
15Department of Revenue, until the time the requirements of the
16tax Act are satisfied. The Commission may take into
17consideration any pending tax disputes properly filed with the
18Department of Revenue.
 
19    Section 85. Consideration of past crimes.
20    (a) Notwithstanding the prohibitions set forth in Sections
2140 and 45 of this Act, when considering the denial of a license
22or recovery permit on the grounds of conviction of a crime, the
23Commission, in evaluating the rehabilitation of the applicant
24and the applicant's present eligibility for a license or
25recovery permit, shall consider each of the following criteria:

 

 

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1        (1) The nature and severity of the act or crime under
2    consideration as grounds for denial.
3        (2) Evidence of any act committed subsequent to the act
4    or crime under consideration as grounds for denial, which
5    also could be considered as grounds for disciplinary action
6    under this Act.
7        (3) The amount of time that has lapsed since the
8    commission of the act or crime referred to in item (1) or
9    (2) of this subsection (a).
10        (4) The extent to which the applicant has complied with
11    any terms of parole, probation, restitution, or any other
12    sanctions lawfully imposed against the applicant.
13        (5) Evidence, if any, of rehabilitation submitted by
14    the applicant.
15    (b) When considering the suspension or revocation of a
16license or recovery permit on the grounds of conviction of a
17crime, the Commission, in evaluating the rehabilitation of the
18applicant and the applicant's present eligibility for a license
19or recovery permit, shall consider each of the following
20criteria:
21        (1) The nature and severity of the act or offense.
22        (2) The license holder's or recovery permit holder's
23    criminal record in its entirety.
24        (3) The amount of time that has lapsed since the
25    commission of the act or offense.
26        (4) Whether the license holder or recovery permit

 

 

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1    holder has complied with any terms of parole, probation,
2    restitution, or any other sanctions lawfully imposed
3    against him or her.
4        (5) If applicable, evidence of expungement
5    proceedings.
6        (6) Evidence, if any, of rehabilitation submitted by
7    the license holder or recovery permit holder.
 
8    Section 90. Insurance required. No repossession agency
9license shall be issued unless the applicant first files with
10the Commission a certification of insurance evidencing
11coverage in the amount required under this Section. The
12coverage shall provide the Commission as an additional insured
13for the purpose of receiving all notices of modifications or
14cancellations of such insurance. Coverage shall be written by
15an insurance company that is lawfully engaged to provide
16insurance coverage in Illinois. Coverage shall provide for a
17combined single limit policy in the amount of at least
18$1,000,000 per occurrence, which policy shall include
19commercial general liability for wrongful repossession, garage
20keepers, on hook, and drive-away. Coverage shall provide for a
21dishonesty bond policy in the amount of at least $1,000,000.
22Coverage shall insure for the liability of all employees
23licensed or registered by the Commission while acting in the
24course of their employment. The agency shall notify the
25Commission immediately upon cancellation of the insurance

 

 

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1policy, whether the cancellation was initiated by the insurance
2company or the insured agency. The agency's license shall
3automatically be suspended on the date of cancellation of the
4policy, unless new evidence of insurance is provided to the
5Commission prior to the effective date of cancellation.
 
6    Section 95. Display of license required. At all times, a
7repossession agency's license shall be conspicuously displayed
8at 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
11any municipality, county, or municipality and county, by
12ordinance and within the exercise of the police power of the
13municipality or county, from requiring repossession agency and
14recovery manager license holders to register their names and
15file a copy of their State identification cards with the
16municipality, county, or municipality and county. No fee may be
17charged nor may any application be required by the municipality
18or county for this registration.
19    (b) A municipality or county, including a home rule unit,
20may not regulate individuals and entities engaged in the
21business of collateral recovery in a manner inconsistent with
22the regulation by the State of individuals and entities engaged
23in the business of collateral recovery under this Act. To the
24extent that any regulation by a municipality or county,

 

 

SB1306- 36 -LRB097 08920 CEL 49052 b

1including a home rule unit, is inconsistent with any regulation
2by the State under this Act, it is superseded by this Act. This
3Section is a limitation under subsection (i) of Section 6 of
4Article VII of the Illinois Constitution on the concurrent
5exercise by home rule units of powers and functions exercised
6by the State.
 
7    Section 105. Notification of law enforcement. Prior to a
8repossession, the licensed repossession agency or repossession
9agency employee must notify the appropriate law enforcement
10agency located in the jurisdiction in which the licensed
11repossession agency or repossession agency employee plans to
12perform the repossession. Upon completion of the repossession,
13the licensed repossession agency or repossession agency
14employee must notify the appropriate law enforcement agency
15that the repossession has occurred within its jurisdiction.
 
16    Section 110. Repossession of vehicles.
17    (a) With regard to collateral subject to a security
18agreement, repossession occurs when the licensed repossession
19agency employee gains entry into the collateral, the collateral
20becomes connected to a tow vehicle, or the licensed
21repossession agency employee has physical care, custody, or
22control of the collateral.
23    (b) The licensed repossession agency shall confirm with the
24legal owner of a recovered vehicle whether the legal owner

 

 

SB1306- 37 -LRB097 08920 CEL 49052 b

1holds a security interest in the personal effects or other
2property contained in or on the recovered vehicle.
3    (c) If personal effects or other property not covered by a
4security agreement are contained in or on a recovered vehicle
5at the time it is recovered, then the personal effects and
6other property not covered by a security agreement must be
7completely and accurately inventoried, and a record of the
8inventory shall be maintained on file with the licensed
9repossession agency for a period of 2 years following the date
10of repossession. The licensed repossession agency shall hold
11all personal effects and other property not covered by a
12security agreement until the licensed repossession agency
13either returns the personal effects and other property to the
14debtor or disposes of the personal effects and other property
15in accordance with this Section.
16    (d) Within 5 working days following the date of
17repossession, the licensed repossession agency shall give
18written notification to the debtor of the whereabouts of
19personal effects or other property inventoried. At least 45
20days prior to disposing of such personal effects or other
21property, the licensed repossession agency shall, by United
22States Postal Service proof of mailing or certified mail,
23notify the debtor of the intent to dispose of the property.
24Should the debtor, or his or her lawful designee, appear to
25retrieve the personal property prior to the date on which the
26licensed repossession agency is allowed to dispose of the

 

 

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1property, the licensed repossession agency shall surrender the
2personal property to that individual upon payment of any
3reasonably incurred expenses for inventory and storage.
4    (e) If personal property is not claimed within 45 days of
5the notice of intent to dispose, then the licensed repossession
6agency may dispose of the personal property at its discretion,
7except that illegal items or contraband shall be surrendered to
8a law enforcement agency, and the licensed repossession agency
9shall retain a receipt or other proof of surrender as part of
10the inventory and disposal records it maintains. The inventory
11of the personal property and the records regarding any disposal
12of personal property shall be maintained for a period of 2
13years in the permanent records of the licensed repossession
14agency and shall be made available upon request to the
15Commission.
 
16    Section 115. Deposit of fees and fines. All of the fees and
17fines collected under this Act shall be deposited into the
18Transportation Regulatory Fund and, subject to appropriation,
19may be used by the Commission for the administration of this
20Act.
 
21    Section 120. Payments; penalty for insufficient funds. Any
22person or entity who delivers a check or other payment to the
23Commission that is returned to the Commission unpaid by the
24financial institution upon which it is drawn shall pay to the

 

 

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1Commission, in addition to the amount already owed to the
2Commission, a fine amount as determined by the Commission. The
3fines imposed by this Section are in addition to any other
4discipline provided under this Act prohibiting unlicensed or
5unregistered practice or practice on a nonrenewed license or
6recovery permit. The Commission shall notify the person or
7entity that fees and fines shall be paid to the Commission by
8certified check or money order within 30 calendar days after
9notification. If, after the expiration of 30 days from the date
10of notification, the person or entity has failed to submit the
11necessary remittance, then the Commission shall automatically
12terminate the license or recovery permit or deny the
13application without hearing. If, after termination or denial,
14the person seeks a license or recovery permit, then the person
15or entity shall apply to the Commission for restoration or
16issuance of the license or recovery permit and pay all fees and
17fines due to the Commission. The Commission may establish a fee
18for the processing of an application for restoration of a
19license or recovery permit to pay all expenses of processing
20the application. The Commission may waive the fines due under
21this Section in individual cases where the Commission finds
22that the fines would be unreasonable or unnecessarily
23burdensome.
 
24    Section 125. Filings, formal complaints. All repossession
25activity correspondence relating to complaints and alleged

 

 

SB1306- 40 -LRB097 08920 CEL 49052 b

1violations of this Act shall be submitted to the Commission in
2writing on forms and in a manner prescribed by the Commission.
 
3    Section 130. Roster. The Commission shall maintain a
4roster of names and addresses of all persons who hold valid
5licenses and recovery permits and all persons whose licenses or
6recovery permits have been suspended or revoked within the
7previous year.
 
8    Section 135. Violations; injunctions; cease and desist
9order.
10    (a) If any person or entity violates a provision of this
11Act, then the Commission may, in the name of the People of the
12State of Illinois, through the Attorney General of the State of
13Illinois, petition for an order enjoining the violation or for
14an order enforcing compliance with this Act. Upon the filing of
15a verified petition in court, the court may issue a temporary
16restraining order, without notice or bond, and may
17preliminarily and permanently enjoin the violation. If it is
18established that the person or entity has violated or is
19violating the injunction, the court may punish the offender for
20contempt of court. Proceedings under this Section are in
21addition to, and not in lieu of, all other remedies and
22penalties provided by this Act.
23    (b) If any person or entity practices as a repossession
24agency or a recovery manager or holds himself, herself, or

 

 

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1itself out as such without having a valid license or recovery
2permit under this Act, then any license holder or recovery
3permit holder, any person injured thereby, or any resident of
4or legal entity within the State may, in addition to the
5Commission, petition for relief as provided in subsection (a)
6of this Section.
7    (c) Whenever, in the opinion of the Commission, any person
8or entity violates any provision of this Act, the Commission
9may issue a rule to show cause why an order to cease and desist
10should not be entered against that person or entity. The rule
11shall clearly set forth the grounds relied upon by the
12Commission and shall provide a period of 7 days from the date
13of the rule to file an answer to the satisfaction of the
14Commission. Failure to answer to the satisfaction of the
15Commission shall cause an order to cease and desist to be
16issued immediately.
 
17    Section 140. Investigation; notice and hearing. The
18Commission may investigate the actions or qualifications of any
19person or entity holding or claiming to hold a license or
20recovery permit. Before suspending, revoking, placing on
21probationary status, or taking any other disciplinary action
22that the Commission may deem proper with regard to any license
23or recovery permit, at least 30 days before the date set for
24the hearing, the Commission shall (i) notify the accused in
25writing of any charges made and the time and place for a

 

 

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1hearing on the charges, (ii) direct the accused to file a
2written answer to the charges under oath within 20 days after
3the service on the person or entity of such notice, and (iii)
4inform the accused that failure to file an answer shall result
5in a default judgment against the person or entity and the
6person's or entity's license or recovery permit may be
7suspended, revoked, placed on probationary status, or other
8disciplinary action taken with regard to the license or
9recovery permit as the Commission may deem proper.
10    In case the person or entity, after receiving notice, fails
11to file an answer, the person's or entity's license or recovery
12permit may, in the discretion of the Commission, be suspended,
13revoked, placed on probationary status, or the Commission, may
14take whatever disciplinary action it deems proper, including
15the imposition of a fine, without a hearing, if the act or acts
16charged constitute sufficient grounds for such action under
17this Act. This written notice and any notice in the subsequent
18proceedings may be served by personal delivery to the accused,
19or by registered or certified mail to the address last
20specified by the accused in the last notification to the
21Commission.
22    The written answer shall be served by personal delivery,
23certified delivery, or certified or registered mail to the
24Commission. At the time and place fixed in the notice, the
25Commission shall proceed to hear the charges and the parties or
26their counsel shall be accorded ample opportunity to present

 

 

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1such statements, testimony, evidence, and argument as may be
2pertinent to the charges or to the defense thereto. The
3Commission may continue such hearing from time to time. At the
4discretion of the Commission, the accused person's or entity's
5license or recovery permit may be suspended or revoked, if the
6evidence constitutes sufficient grounds for such action under
7this Act.
 
8    Section 145. Record of proceeding. The Commission, at its
9expense, shall preserve a record of all proceedings at the
10formal hearing of any case. The notice of hearing, complaint
11and all other documents in the nature of pleadings and written
12motions filed in the proceedings, the transcript of testimony,
13and orders of the Commission shall be in the record of the
14proceedings.
 
15    Section 150. Subpoenas; oaths; attendance of witnesses.
16The Commission has the power to subpoena and to bring before it
17any person and to take testimony either orally or by
18deposition, or both, with the same fees and mileage and in the
19same manner as is prescribed in civil cases in the courts of
20this State. The Commission and the designated hearing officer
21have the power to administer oaths to witnesses at any hearing
22that the Commission is authorized to conduct and any other
23oaths authorized in any Act administered by the Commission. Any
24circuit court may, upon application of the Commission or its

 

 

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1designee or of the applicant, license holder, or recovery
2permit holder against whom proceedings under this Act are
3pending, enter an order requiring the attendance of witnesses
4and their testimony, and the production of documents, papers,
5files, books, and records in connection with any hearing or
6investigation. The court may compel obedience to its order by
7proceedings for contempt.
 
8    Section 155. Recommendations for disciplinary action. At
9the conclusion of the hearing, the Commission shall prepare a
10written report of its findings and recommendations. The report
11shall contain a finding whether or not the accused person or
12entity violated this Act or failed to comply with the
13conditions required in this Act. The finding is not admissible
14in evidence against the person in a criminal prosecution
15brought for the violation of this Act, but the hearing and
16finding are not a bar to a criminal prosecution brought for the
17violation of this Act.
 
18    Section 160. Rehearing. In any hearing involving
19disciplinary action against a license holder or recovery permit
20holder, a copy of the Commission's report shall be served upon
21the respondent by the Commission, either personally or as
22provided in this Act for the service of the notice of hearing.
23Within 20 calendar days after service, the respondent may
24present to the Commission a motion in writing for a rehearing

 

 

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1that shall specify the particular grounds for rehearing. If no
2motion for rehearing is filed, then upon the expiration of the
3time specified for filing a motion, or if a motion for
4rehearing is denied, then upon denial, the Commission may enter
5an order in accordance with its own recommendations except as
6provided in this Act. If the respondent orders from the
7reporting service, and pays for, a transcript of the record
8within the time for filing a motion for rehearing, then the 20
9calendar day period within which a motion may be filed shall
10commence upon the delivery of the transcript to the respondent.
 
11    Section 165. Appointment of a hearing officer. The
12Commission has the authority to appoint any attorney duly
13licensed to practice law in the State of Illinois to serve as
14the hearing officer in any action for refusal to issue or renew
15a license or recovery permit or to discipline a license holder
16or recovery permit holder. The hearing officer has full
17authority to conduct the hearing. The hearing officer shall
18report his or her findings and recommendations to the
19Commission. The Commission has 60 calendar days from receipt of
20the report to review the report of the hearing officer. If the
21Commission disagrees with the recommendation of the hearing
22officer, then the Commission may issue an order in
23contravention of the recommendation.
 
24    Section 170. Hearing by other examiner. Whenever the

 

 

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1Commission is not satisfied that substantial justice has been
2done in revoking or suspending a license or recovery permit, or
3refusing to issue or renew a license or recovery permit, the
4Commission may order a rehearing by the same or other
5examiners.
 
6    Section 175. Order; certified copy. An order or a
7certified copy thereof, over the seal of the Commission, shall
8be prima facie proof:
9    (a) that the seal is the genuine seal of the Commission;
10and
11    (b) that the Commission is duly appointed and qualified.
 
12    Section 180. Restoration. At any time after the suspension
13or revocation of any license or recovery permit, the Commission
14may restore the license or recovery permit to the accused
15person, unless after an investigation and a hearing the
16Commission determines that restoration is not in the public
17interest.
 
18    Section 185. License and recovery permit surrender. Upon
19the revocation or suspension of any license or recovery permit,
20the license holder or recovery permit holder shall immediately
21surrender the license or recovery permit to the Commission. If
22the license holder or recovery permit holder fails to do so,
23then the Commission has the right to seize the license or

 

 

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1recovery permit.
 
2    Section 190. Summary suspension. The Commission may
3summarily suspend the license of a repossession agency, the
4license of a recovery manager, or the recovery permit of an
5employee without a hearing, simultaneously with the
6institution of proceedings for a hearing provided for in this
7Act, if the Commission finds that evidence in its possession
8indicates that a repossession agency's, recovery manager's, or
9employee's continuation in the business of collateral recovery
10would constitute an imminent danger to the public. In the event
11that the Commission summarily suspends a license or recovery
12permit without a hearing, a hearing by the Commission must be
13held within 30 calendar days after the suspension has occurred.
 
14    Section 195. Judicial review. All final administrative
15decisions of the Commission are subject to judicial review
16under the Administrative Review Law and its rules. The term
17"administration decision" is defined as in Section 3-101 of the
18Code of Civil Procedure. Proceedings for judicial review shall
19be commenced in the circuit court of the county in which the
20party applying for review resides; but if the party is not a
21resident of this State, the venue shall be in Sangamon County.
 
22    Section 200. Certification of records. The Commission
23shall not be required to certify any record to the court or

 

 

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1file any answer in court or otherwise appear in any court in a
2judicial review proceeding, unless there is filed in the court,
3with the complaint, a receipt from the Commission acknowledging
4payment of the costs of furnishing and certifying the record.
5Failure on the part of the plaintiff to file such a receipt in
6court shall be grounds for dismissal of the action.
 
7    Section 205. Violations; criminal penalties. Any person
8who is found to have violated any provision of this Act is
9guilty of a Class A misdemeanor for the first offense, and a
10Class 4 felony for a second or subsequent offense.
 
11    Section 210. Illinois Administrative Procedure Act. The
12Illinois Administrative Procedure Act is expressly adopted and
13incorporated in this Act as if all of the provisions of that
14Act were included in this Act, except that the provision of
15paragraph (d) of Section 10-65 of the Illinois Administrative
16Procedure Act, which provides that at hearings the license
17holder has the right to show compliance with all lawful
18requirements for retention, continuation, or renewal of the
19license, is specifically excluded. For the purpose of this Act,
20the notice required under Section 10-25 of the Illinois
21Administrative Procedure Act is deemed sufficient when mailed
22to the last known address of a party.
 
23    Section 215. The Regulatory Sunset Act is amended by adding

 

 

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1Section 4.32 as follows:
 
2    (5 ILCS 80/4.32 new)
3    Sec. 4.32. Act repealed on January 1, 2022. The following
4Act is repealed on January 1, 2022:
5    The Collateral Recovery Act.
 
6    Section 999. Effective date. This Act takes effect upon
7becoming law.