HB 1272

                                                          Introduced Version
           HOUSE BILL No. 1272
                 _____
              DIGEST OF INTRODUCED BILL
Citations Affected:  IC 25-0.5; IC 25-30; IC 26-2-10;
IC 34-30-2.1-384.3.
Synopsis: Collateral recovery services. Renames the private
investigator and security guard licensing board as the private
investigator, security guard, and collateral recovery agency licensing
board, and adds two additional members to the board. Establishes
licensure for a collateral recovery agency. Requires a person to be
licensed as a collateral recovery agency to repossess collateral, attempt
to repossess collateral, hold one's self out as being in the business of
repossessing collateral, or use license plate recognition. Provides
certain requirements: (1) for an applicant seeking licensure as a
collateral recovery agency; (2) for a licensee to maintain licensure; and
(3) for a legal owner when personal effects are in or on the collateral
at the time of repossession. Requires equipment used to repossess
collateral to meet certain criteria. Makes conforming changes.
Effective: July 1, 2026.
                         Shonkwiler
   January 6, 2026, read first time and referred to Committee on Employment, Labor and
Pensions.
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                                                                                       Introduced
            Second Regular Session of the 124th General Assembly (2026)
 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
 Constitution) is being amended, the text of the existing provision will appear in this style type,
 additions will appear in this style type, and deletions will appear in this style type.
   Additions: Whenever a new statutory provision is being enacted (or a new constitutional
 provision adopted), the text of the new provision will appear in this style type. Also, the
 word NEW will appear in that style type in the introductory clause of each SECTION that adds
 a new provision to the Indiana Code or the Indiana Constitution.
  Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
 between statutes enacted by the 2025 Regular Session of the General Assembly.
                   HOUSE BILL No. 1272
    A BILL FOR AN ACT to amend the Indiana Code concerning
 professions and occupations.
     Be it enacted by the General Assembly of the State of Indiana:
1     SECTION 1. IC 25-0.5-3-19, AS ADDED BY P.L.3-2014,
2 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2026]: Sec. 19. IC 25-1-2-6(b) applies to the private
4 investigator, and security guard, and collateral recovery agency
5 licensing board.
6     SECTION 2. IC 25-0.5-4-26, AS ADDED BY P.L.3-2014,
7 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2026]: Sec. 26. The private investigator, and security guard,
9 and collateral recovery agency licensing board (IC 25-30-1-5.2) is a
10 board under IC 25-1-4.
11     SECTION 3. IC 25-0.5-7-11, AS ADDED BY P.L.3-2014,
12 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13 JULY 1, 2026]: Sec. 11. The Indiana professional licensing agency
14 shall perform administrative functions, duties, and responsibilities for
15 the private investigator, and security guard, and collateral recovery
16 agency licensing board (IC 25-30-1-5.2) under IC 25-1-6-3(a).
17     SECTION 4. IC 25-0.5-8-23, AS ADDED BY P.L.3-2014,
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1 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2 JULY 1, 2026]: Sec. 23. An occupation for which a person is licensed,
3 certified, or registered by the private investigator, and security guard,
4 and collateral recovery agency licensing board (IC 25-30-1-5.2) is a
5 regulated occupation under IC 25-1-7.
6    SECTION 5. IC 25-0.5-9-24, AS ADDED BY P.L.3-2014,
7 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2026]: Sec. 24. The private investigator, and security guard,
9 and collateral recovery agency licensing board (IC 25-30-1-5.2) is a
10 board under IC 25-1-8.
11    SECTION 6. IC 25-0.5-10-26, AS ADDED BY P.L.3-2014,
12 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13 JULY 1, 2026]: Sec. 26. The private investigator, and security guard,
14 and collateral recovery agency licensing board (IC 25-30-1-5.2) is a
15 board under IC 25-1-8-6.
16    SECTION 7. IC 25-0.5-12-12, AS ADDED BY P.L.3-2014,
17 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
18 JULY 1, 2026]: Sec. 12. The private investigator, and security guard,
19 and collateral recovery agency licensing board (IC 25-30-1-5.2) is a
20 board under IC 25-1-11.
21    SECTION 8. IC 25-30-1-2, AS AMENDED BY P.L.3-2008,
22 SECTION 196, IS AMENDED TO READ AS FOLLOWS
23 [EFFECTIVE JULY 1, 2026]: Sec. 2. As used in this chapter:
24(1) "Person" means an individual, a firm, a company, an
25association, an organization, a partnership, or a corporation.
26(2) "Licensee" means a person licensed under this chapter.
27(3) "Private investigator firm" means the business of:
28(A) making, for hire or reward, investigation or investigations
29for the purpose of obtaining information with reference to:
30(i) a crime against the state or wrongs done or threatened;
31(ii) the habits, conduct, movements, whereabouts,
32association, transactions, reputation, or character of a
33person;
34(iii) credibility of witnesses or other persons;
35(iv) the location or recovery of lost, abandoned, unclaimed,
36or stolen property;
37(v) the causes, origin, or responsibility for fires or accidents
38or injuries to real or personal property; or
39(vi) the truth or falsity of a statement or representation;
40(B) securing, for hire or reward, evidence to be used for
41authorized investigation committees or boards of award or
42arbitration or in the trial of civil or criminal cases; or
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1(C) providing, for hire or reward, undercover investigators to
2detect and prevent fraud and theft in the workplace or
3elsewhere.
4(4) "Board" refers to the private investigator, and security guard,
5and collateral recovery agency licensing board established
6under section 5.2 of this chapter.
7(5) "Licensing agency" refers to the Indiana professional licensing
8agency established under IC 25-1-5-3.
9(6) "Business entity" means a firm, a company, an association, an
10organization, a partnership, or a corporation.
11(7) "Collateral recovery agency" refers to a person licensed
12under IC 25-30-3.
13     SECTION 9. IC 25-30-1-5.2, AS AMENDED BY P.L.249-2019,
14 SECTION 123, IS AMENDED TO READ AS FOLLOWS
15 [EFFECTIVE JULY 1, 2026]: Sec. 5.2. (a) The private investigator,
16 and security guard, and collateral recovery agency licensing board is
17 established.
18     (b) The board consists of:
19(1) the superintendent of the state police department or the
20superintendent's designee; and
21(2) subject to IC 25-1-6.5-3, the following four (4) six (6)
22members appointed by the governor:
23(A) One (1) individual who is associated with a private
24investigator firm licensed under this article.
25(B) One (1) individual who is associated with a security guard
26agency licensed under this article.
27(C) One (1) local law enforcement official.
28(D) One (1) person who is not associated with the private
29investigator firm or security guard agency other than as a
30consumer.
31(E) Two (2) individuals who are associated with a
32collateral recovery agency.
33     (c) Each member of the board appointed by the governor shall serve
34 a term under IC 25-1-6.5.
35     (d) The governor may remove a board member appointed by the
36 governor under IC 25-1-6.5-4.
37     (e) A vacancy in the membership of the board shall be filled by
38 appointment by the governor under IC 25-1-6.5.
39     (f) Each member of the board is entitled to reimbursement for
40 traveling expenses and other expenses actually incurred in connection
41 with the member's duties, as provided in the state travel policies and
42 procedures established by the Indiana department of administration and
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1 approved by the budget agency.
2    SECTION 10. IC 25-30-1-6.5, AS AMENDED BY P.L.249-2019,
3 SECTION 124, IS AMENDED TO READ AS FOLLOWS
4 [EFFECTIVE JULY 1, 2026]: Sec. 6.5. (a) The board shall meet upon
5 the call of the board president.
6    (b) Three (3) Four (4) members of the board constitute a quorum.
7    SECTION 11. IC 25-30-1.3-1, AS ADDED BY P.L.185-2007,
8 SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2026]: Sec. 1. As used in this chapter, "board" refers to the
10 private investigator, and security guard, and collateral recovery
11 agency licensing board established under IC 25-30-1-5.2.
12    SECTION 12. IC 25-30-3 IS ADDED TO THE INDIANA CODE
13 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
14 JULY 1, 2026]:
15    Chapter 3. Collateral Recovery Agency Licensing
16    Sec. 1. This chapter does not apply to the following persons
17 when engaged in an activity otherwise covered by this chapter:
18      (1) A financial institution or an employee of a financial
19      institution if the activity is conducted by the employee on
20      behalf of that financial institution.
21      (2) An automobile rental company or an employee of an
22      automobile rental company if the activity is conducted by the
23      employee on behalf of the automobile rental company.
24      (3) A retail seller of equipment (as defined in IC 26-1-9.1-102),
25      or an employee of a retail seller of equipment, if the activity
26      is limited to the repossession of the type of goods routinely
27      sold by the retail seller in the manner authorized by
28      IC 26-1-9.1-609 on behalf of the owner of a security interest
29      in that collateral.
30      (4) An entity or an employee of an entity that primarily
31      finances wholesale and retail transactions related to the
32      purchase or lease of equipment manufactured by the entity's
33      affiliate if the activity is limited to the repossession of the
34      equipment.
35    Sec. 2. For purposes of this chapter, the following definitions
36 apply:
37      (1) "Assignment" means a written authorization by a legal
38      owner, lien holder, lessor, lessee, or licensed collateral
39      recovery agency to locate or repossess, involuntarily or
40      voluntarily, any collateral that:
41(A) is subject to a security agreement that contains a
42repossession clause; or
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1(B) is the subject of a rental or lease agreement.
2The term includes written authorization by an employer to
3recover any collateral entrusted to an employee or former
4employee if the possessor is wrongfully in possession of the
5collateral. A photocopy, facsimile copy, or electronic copy of
6an assignment has the same force and effect as an original
7written assignment.
8(2) "Automobile rental company" means a person whose
9primary business is renting motor vehicles to the public for
10thirty (30) days or less.
11(3) "Board" refers to the private investigator, security guard,
12and collateral recovery agency licensing board established by
13IC 25-30-1-5.2.
14(4) "Collateral" means any personal property that is subject
15to a security, lease, or rental agreement. The term does not
16include a recreational vehicle permanently attached to a
17foundation and used as a primary residence.
18(5) "Collateral recovery agency" means any person that, for
19consideration:
20(A) advertises as providing; or
21(B) is engaged in the business of performing;
22a repossession. The term includes a person that uses license
23plate recognition for the purpose of performing a
24repossession.
25(6) "Conviction" means an adjudication of guilt by a federal
26or state court resulting from plea or trial, regardless of
27whether imposition of sentence was suspended.
28(7) "Debtor" means any person obligated under a lease,
29rental, or security agreement.
30(8) "Felony" means a criminal conviction for which the
31convicted person might have been imprisoned for more than
32one (1) year.
33(9) "Financial institution" has the meaning set forth in
34IC 28-1-1-3.
35(10) "Hazardous material" means a material or waste that
36has been determined to be hazardous or potentially hazardous
37to human health, to property, or to the environment by:
38(A) the United States:
39(i) Environmental Protection Agency;
40(ii) Nuclear Regulatory Commission;
41(iii) Department of Transportation; or
42(iv) Occupational Safety and Health Administration; or
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1(B) the environmental rules board established by
2IC 13-13-8-3.
3The term includes all of the hazardous materials identified in
449 CFR 172.101.
5(11) "Indemnification" means any agreement that seeks to
6indemnify and insure another against any type of claim, loss,
7liability, recovery, or damages.
8(12) "Legal owner" means a person holding:
9(A) a security interest in any collateral that is subject to a
10security agreement;
11(B) a lien against any collateral; or
12(C) an interest in any collateral that is subject to a lease or
13rental agreement.
14(13) "Licensee" means any person licensed as a collateral
15recovery agency under this chapter.
16(14) "License plate recognition" means a technology that uses
17a camera and software to:
18(A) identify and read a vehicle's license plate;
19(B) compare images of license plates to a data base; and
20(C) provide both live and historical data.
21(15) "Person" means an individual, a firm, a company, an
22agency, an organization, a partnership, or a corporation.
23(16) "Personal effects" means:
24(A) any property contained within or on the repossessed
25collateral; or
26(B) property that is not permanently affixed to the
27repossessed collateral;
28that is not the property of the legal owner, including
29hazardous materials.
30(17) "Personal information" means:
31(A) information that identifies or reasonably can be used
32to identify an individual, such as first and last name in
33combination with the individual's:
34(i) Social Security number or other government issued
35number or identifier;
36(ii) date of birth;
37(iii) home or physical address;
38(iv) electronic mail address or other online contact
39information or Internet provider address;
40(v) financial account number or credit or debit card
41number;
42(vi) biometric data, health or medical data, or insurance
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1information; or
2(vii) passwords or other credentials that permit access to
3an online or other account;
4(B) personally identifiable financial or insurance
5information, including nonpublic personal information
6defined by applicable federal law; and
7(C) any combination of data that, if accessed, disclosed,
8modified, or destroyed without authorization of the owner
9of the data or if lost or misused, would require notice or
10reporting under IC 4-1-11 and federal privacy and data
11security law, whether or not the attorney general or the
12attorney general's agent is subject to the law.
13(18) "Principal officer" means an individual who holds the
14office of owner, president, vice president, secretary, or
15treasurer in a business.
16(19) "Remote storage location" means a licensee's secured
17storage facility that:
18(A) is designated for the storage of collateral; and
19(B) is either a secure building or has a perimeter that is
20secured with a fencing construction that makes the area
21not accessible to the public.
22(20) "Repossession" means to take physical possession of
23personal property that was used as collateral.
24    Sec. 3. Unless licensed under this chapter, a person may not:
25(1) repossess collateral in Indiana;
26(2) attempt to repossess collateral in Indiana;
27(3) hold one's self out to be a collateral recovery agency; or
28(4) use license plate recognition to repossess collateral in
29Indiana.
30    Sec. 4. (a) An application for licensure as a collateral recovery
31 agency must be on a form prescribed by the board accompanied by
32 the license fee established by the board under IC 25-1-8.
33    (b) The application for licensure as a collateral recovery agency
34 must include the following:
35(1) The applicant's full name and business's street address.
36(2) The business name under which the applicant intends to do
37business as a collateral recovery agency.
38(3) The full name and residential address of each of the
39collateral recovery agency's members, partners, directors,
40and managers.
41(4) The applicant's:
42(A) Social Security number, if an individual; or
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1(B) federal employer identification number.
2      (5) The following information concerning an owner or officer
3      in control or management of the collateral recovery agency:
4(A) Name and any aliases.
5(B) Age and date of birth.
6(C) Place of birth.
7(D) Social Security number or alien registration number,
8whichever is applicable.
9(E) Current residence address and mailing address.
10(F) A statement of all criminal convictions, findings of
11guilt, and pleas of guilty or nolo contendere, regardless of
12adjudication of guilt.
13(G) One (1) passport type color photograph taken not more
14than six (6) months immediately preceding submission of
15the application.
16(H) A personal inquiry waiver that allows the board to
17conduct necessary investigations to satisfy the
18requirements of this chapter.
19(I) Any further facts as may be required by the board to
20show that the individual signing the application is of good
21moral character and qualified by experience and training
22to satisfy the requirements of this chapter.
23      (6) Proof of certification and training from a nationally
24      recognized program, such as:
25(A) the American Recovery Association's Certified
26Collateral Recovery Specialist (CCRS) program; or
27(B) the Recovery Industry Services Company's (RISC)
28training program.
29      (7) Evidence demonstrating that the applicant maintains a
30      remote storage location.
31      (8) Any other information required by the board.
32   (c) The board may not issue a license in any:
33      (1) fictitious name that may be confused with or is similar to
34      any federal, state, county, or municipal agency;
35      (2) name that may give an individual the impression that the
36      applicant engages in a business in which the applicant does
37      not engage;
38      (3) name that is the same as or is similar to the name of an
39      existing licensed collateral recovery agency; or
40      (4) name that is deceptive or misleading.
41   (d) The board may not issue a license to an applicant if the
42 applicant does not maintain a remote storage location.
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1    Sec. 5. A licensee must maintain the following:
2(1) A physical location with signage within Indiana.
3(2) The ability to store a vehicle that has been repossessed.
4(3) The ability to store personal effects in a secured area out
5of the elements.
6(4) Reasonable hours that allow an individual ample
7opportunity to retrieve the individual's personal effects or
8collateral.
9(5) Required insurance under section 6 of this chapter.
10    Sec. 6. (a) A licensee shall provide the board with a certification
11 of insurance evidencing coverage in the amount required under
12 this section.
13    (b) The coverage must:
14(1) include the board as an additional insured for the purpose
15of receiving all notices of any modification or cancellation of
16the insurance;
17(2) be written by an insurance company that is lawfully
18engaged to provide insurance coverage in Indiana;
19(3) provide for a combined single limit policy in the amount of
20at least one million dollars ($1,000,000) per occurrence and a
21three million dollar ($3,000,000) aggregate policy, which
22must:
23(A) include commercial general liability for wrongful
24repossession, garage keepers, on hook, and drive away;
25and
26(B) be a direct primary policy;
27(4) provide for a dishonesty bond policy in the amount of at
28least one million dollars ($1,000,000); and
29(5) insure for the liability of all employees licensed or
30registered by the state while acting in the course of the
31employee's employment.
32    (c) The licensee shall notify the board immediately upon
33 cancellation of the insurance policy, whether the cancellation was
34 initiated by the insurance company or the licensee.
35    (d) The board shall suspend the licensee's license on the date of
36 cancellation of the policy, unless new evidence of insurance is
37 provided to the board before the effective date of cancellation.
38    Sec. 7. An individual who has been convicted of a felony does not
39 qualify for a collateral recovery agency license under this chapter.
40    Sec. 8. This chapter does not preclude a domestic or foreign
41 limited liability company from being licensed as a collateral
42 recovery agency under this chapter.
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1    Sec. 9. At all times, a licensee's license must be conspicuously
2 displayed at the licensee's location on record with the board.
3    Sec. 10. (a) Equipment used for repossessions must:
4      (1) be registered in the state of Indiana;
5      (2) display the company name and Indiana department of
6      transportation number;
7      (3) bear a state licensing placard; and
8      (4) be inspected annually and maintain a valid Federal Motor
9      Carrier Safety Administration inspection.
10    (b) A licensee shall provide the board with evidence of
11 applicable insurance for the licensee's remote storage location that
12 specifies the licensee as the primary policy holder.
13    Sec. 11. (a) A licensee must store collateral in a secure location
14 within Indiana after repossession until the collateral is either:
15      (1) redeemed; or
16      (2) transferred to auction.
17    (b) The licensee may charge a reasonable fee for storing
18 collateral in the secure location. However, the licensee may charge
19 an additional fee for collateral that contains hazardous materials.
20    (c) The fee described in subsection (b) may be charged to either
21 the:
22      (1) debtor; or
23      (2) legal owner.
24    (d) If personal effects are contained in or on collateral at the
25 time of repossession, the licensee shall inventory and store the
26 personal effects until either:
27      (1) returned to the debtor; or
28      (2) disposed of in accordance with this section.
29    (e) If personal effects contained in or on collateral at the time of
30 repossession have an estimated value of at least ten dollars ($10),
31 the legal owner of the collateral shall provide the debtor with
32 written notice of the following:
33      (1) A list of each item of personal effects having an estimated
34      value of at least five dollars ($5).
35      (2) The estimated aggregate of all the items of personal
36      effects.
37      (3) A statement that if the debtor does not claim the property
38      not more than thirty (30) days after the notice was sent, the
39      personal effects will become the property of the licensee with
40      no right of redemption by the debtor.
41 The notice under this subsection must be sent by certified mail.
42    (f) If personal effects are not claimed by the debtor not more
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1 than thirty (30) days after the legal owner sends notice under
2 subsection (e), the licensee may dispose of the personal effects.
3 However, the licensee shall:
4(1) surrender illegal items or contraband to local law
5enforcement; and
6(2) retain a receipt or other proof of surrender as part of the
7licensee's records.
8     Sec. 12. (a) If the licensee has reason to believe that the
9 collateral collects or stores personal information, the licensee shall
10 eliminate the personal information collected or stored in the
11 collateral by using a standardized electronic solution:
12(1) as soon as practicable after repossession; and
13(2) before releasing the collateral from the licensee's
14possession.
15     (b) A licensee who complies with this section is not subject to
16 civil liability.
17     SECTION 13. IC 26-2-10-0.5 IS ADDED TO THE INDIANA
18 CODE AS A NEW SECTION TO READ AS FOLLOWS
19 [EFFECTIVE JULY 1, 2026]: Sec. 0.5. As used in this chapter,
20 "collateral recovery agency" means a person licensed under
21 IC 25-30-3.
22     SECTION 14. IC 26-2-10-2 IS REPEALED [EFFECTIVE JULY 1,
23 2026]. Sec. 2. As used in this chapter, "motor vehicle repossession
24 agent" means a person who physically repossesses a motor vehicle or
25 watercraft on behalf of another person or on the person's own behalf.
26     SECTION 15. IC 26-2-10-6, AS ADDED BY P.L.38-2009,
27 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2026]: Sec. 6. (a) A motor vehicle repossession agent who
29 collateral recovery agency that repossesses or intends to repossess a
30 motor vehicle or watercraft must provide the following information, if
31 available, to the sheriff's department of the county having jurisdiction
32 in the location where the motor vehicle repossession agent collateral
33 recovery agency believes that the motor vehicle or watercraft will be
34 found:
35(1) The identity of the repossession company. collateral recovery
36agency.
37(2) A description of the motor vehicle or watercraft.
38(3) The name and address of the person believed to be currently
39in possession of the motor vehicle or watercraft (if the
40repossession has not yet occurred), or believed to have been in
41possession of the motor vehicle (if the repossession has already
42occurred).
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1      (4) The address where the motor vehicle repossession agent
2      collateral recovery agency believes that the motor vehicle or
3      watercraft will be found (if the repossession has not yet occurred),
4      or the address where the motor vehicle was found when it was
5      repossessed.
6    (b) A motor vehicle repossession agent collateral recovery agency
7 must provide the information described in subsection (a):
8      (1) before the repossession occurs; or
9      (2) not later than two (2) hours after the repossession.
10    SECTION 16. IC 26-2-10-7, AS ADDED BY P.L.38-2009,
11 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12 JULY 1, 2026]: Sec. 7. A motor vehicle repossession agent who
13 collateral recovery agency that violates section 6 of this chapter
14 commits a Class C infraction.
15    SECTION 17. IC 34-30-2.1-384.3 IS ADDED TO THE INDIANA
16 CODE AS A NEW SECTION TO READ AS FOLLOWS
17 [EFFECTIVE JULY 1, 2026]: Sec. 384.3. IC 25-30-3-12 (Concerning
18 the elimination of personal information by a collateral recovery
19 agency).
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