SPRINGFIELD, Ill. -

Potential legislation that could significantly change how Illinois repossession agents operate continues to make its way through the state’s General Assembly.

According to information on the state government’s website, Illinois Senate bill No. 1306, known as the Collateral Recovery Act, is already on the docket within the House’s Judiciary Civil Law Committee for more possible modification, according to the state government’s website.

Sponsored by Sens. John Mulroe, Thomas Johnson and Mike Jacobs, the Collateral Recovery Act would require the licensure of repossession agencies and recovery managers and the registration of repossession agency employees within six months after the effective date. The measure also aims to create provisions concerning qualifications, application, examination, assignment, insurance requirements and administrative proceedings of recovery companies.

An amendment has already changed the effective date if the act passes and becomes Illinois law. Instead of becoming immediate, the regulations would become enforceable on July 1, 2012.

Along with state licenses, the act also would force repo agents to purchase a permit ticket for each recovery. The same amendment that changed the effective date also increased the cost of those tickets to $10 from $5.50.

Legislators intend to make this new regulation under the jurisdiction of the Illinois Commerce Commission.

“The Act provides that the commission may take any immediate disciplinary action that the commission may deem proper if a person or entity repossesses a vehicle or collateral in the state without a valid license and a permit,” the most recent amendment states.

Other elements of the most recent amendment include:

—Provides that it shall be unlawful for any person or entity to repossess a vehicle or collateral in the state without a recovery ticket.

—Provides that the state, county and local municipalities shall work in conjunction with the commission in the enforcement of this act.

—Removes language from the provision concerning home rule that no fee may be charged nor may any application be required by a municipality or county for registration.

—Provides that a municipality or county, including a home rule unit may not regulate individuals or entities engaged in the business of collateral recovery in a manner that is less stringent than the standards established under the act — instead of in a manner inconsistent with the act.

The House committee is scheduled to discuss this legislation again Wednesday.

The entire Illinois proposal can be viewed here.