LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7046 NOTE PREPARED: Dec 30, 2024
BILL NUMBER: SB 295 BILL AMENDED:
SUBJECT: Licensing of Collateral Recovery Services.
FIRST AUTHOR: Sen. Doriot BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: The bill 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. The bill establishes licensure for a collateral recovery agency. It 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.
The bill 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. The bill requires equipment used to repossess collateral to meet certain
criteria. The bill provides that threatening a collateral recovery agency's employee is a crime under certain
circumstances. It makes conforming changes.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Summary– The Professional Licensing Agency (PLA) would likely
see a workload increase to help the Private Investigator and Security Guard Licensing Board develop rules
and update: the board name, website information, and possibly the Agency’s license database to
accommodate the new license subtype. These are routine administrative functions and would likely be
accomplished within existing staff and resource levels. The addition of two members to the Board may
increase the total per diem and mileage allowance paid in total to the Board’s members in a state fiscal year.
However, it is likely the increase would be minimal.
Penalty Provision– The bill adds a criminal provision for verbally or physically threatening a collateral
recovery agency employee during the course of a repossession. Subsequent violations would constitute a
Level 6 felony. A Level 6 felony is punishable by a prison term ranging from 6 to 30 months, with an
advisory sentence of 1 year. However, it is likely that any additional incarcerations within a DOC facility
as a result of the bill would be very low.
SB 295 1 Explanation of State Revenues: Summary– The amount of licensing revenue the bill could generate from
fees is indeterminable and would depend on the fee structure set by rule. If fees were set at the same level
($300 for initial license) as for private investigator and security guard firms, it is possible that fee revenues
could reach approximately $5,000 in the first year of implementation.
Additional Information– There are approximately 17 collateral recovery agencies within Indiana that have
either an American Recovery Association CCRS or Recovery Industry Services Company certification. These
agencies have approximately 130 branches in 74 Indiana cities and towns.
Penalty Provision– If additional court cases occur and fines are collected, revenue to both the Common
School Fund (from fines) and the state General Fund (from court fees) would increase. The maximum fine
for a Class A misdemeanor is $5,000. The maximum fine for a Level 6 felony is $10,000. The total fee
revenue per case would range between $113 and $138. The amount of court fees deposited will vary
depending on whether the case is filed in a court of record or a municipal court. The following linked
document describes the fees and distribution of the revenue: Court fees imposed in criminal, juvenile, and
civil violation cases.
Explanation of Local Expenditures: Penalty Provision– A Class A misdemeanor is punishable by up to
one year in jail.
Explanation of Local Revenues: Penalty Provision– If additional court actions occur and a guilty verdict
is entered, more revenue will be collected by certain local units. If the case is filed in a court of record, the
county general fund will receive $47.40 and qualifying municipalities will receive a share of $3.60. If the
case is filed in a municipal court, the county receives $30, and the municipality will receive $46. The
following linked document describes the fees and distribution of the revenue: Court fees imposed in
criminal, juvenile, and civil violation cases.
State Agencies Affected: Professional Licensing Agency; Private Investigator and Security Guard Licensing
Board; Department of Correction.
Local Agencies Affected: Trial courts, local law enforcement agencies.
Information Sources: Legislative Services Agency, Indiana Handbook of Taxes, Revenues, and
Appropriations, FY 2024; American Recovery Association website: repo.org
Recovery Industry Services Company website: https://www.riscus.com/agentservices/riscpromembership/
Indiana Supreme Court, Indiana Trial Court Fee Manual.
Fiscal Analyst: Chris Baker, 317-232-9851.
SB 295 2