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Regular Session, 2014
HOUSE CONCURRENT RESOLUTI ON NO. 3
BY REPRESENTATIVE STOKES
A CONCURRENT RESOLUTI ON
To amend and reenact the Office of Financial Institutions rules, LAC 10:XV.1303(E)(3) and
1315(A)(4), which provide that a repossession agency is prohibited from sponsoring
more than one apprentice for every two licensed repossession agents at any one time,
which provide that an apprentice is prohibited from repossessing collateral without
on site supervision of a repossession agent, and to direct the Office of the State
Register to print the amendments in the Louisiana Administrative Code.
WHEREAS, R.S. 6:966 requires any individual who physically obtains possession
of collateral pursuant to Chapter 10-A of Title 6 of the Louisiana Revised Statutes of 1950
to first obtain a repossession agent license from the Office of Financial Institutions; and
WHEREAS, R.S. 6:966.1 authorizes the commissioner of financial institutions to
promulgate rules and regulations in accordance with the Administrative Procedure Act with
respect to the repossession of collateral; and
WHEREAS, LAC 10:XV.1301 defines a repossession agency as "any person who
through a designated repossession agent engages in business or accepts employment to
locate or recover collateral registered under the provisions of the Louisiana Vehicle
Certificate of Title Law, R.S. 32:701 et seq., which has been sold under a security agreement
or used as security in a loan transaction, including any secured party which utilizes its
employees to repossess collateral"; and ENROLLEDHCR NO. 3
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WHEREAS, LAC 10:XV.1303(D)(1)(d) requires that two years of experience within
the previous three years be completed prior to application of any person seeking a license
as a repossession agent; and
WHEREAS, LAC 10:XV.1303(F)(1) provides that one year of qualifying experience
consists of not less than one thousand hours of actual compensated work performed by the
applicant with a repossession agency prior to application for license as a repossession agent;
and
WHEREAS, LAC 10:XV.1303(D)(1)(d) and LAC 10:XV.1303(F)(1) in combination
require the completion of two thousand hours of actual compensated work within the
previous three years as qualifying experience prior to application for license as a
repossession agent; and
WHEREAS, LAC 10:XV:1301 defines an apprentice as a trainee who works under
the direct supervision of a repossession agent; and
WHEREAS, LAC 10:XV.1303(E)(1) provides that a repossession agency may
sponsor and apply for the licensing of a previously unlicensed individual as an apprentice
by providing to the commissioner a letter of intent to sponsor and accept responsibility for
the apprentice applicant; and
WHEREAS, an apprentice shall complete two thousand hours of qualifying
experience and satisfy other requirements within the three previous years prior to application
for license as a repossession agent; and
WHEREAS, a repossession agency is limited to sponsoring only one apprentice for
every two licensed repossession agents at any one time; and
WHEREAS, LAC 10:XV.1315(A)(4) provides that an apprentice is prohibited from
repossessing collateral without on site supervision of a repossession agent; and
WHEREAS, the direct supervision of an apprentice attempting to accrue two
thousand hours of qualifying experience may create an undue hardship for the sponsoring
repossession agency in terms of manpower; and
WHEREAS, the undue burden experienced by the sponsoring repossession agency
may be relieved if the apprentice is permitted to physically obtain possession of collateral
for a secured party, without the direct supervision and presence of a licensed repossession ENROLLEDHCR NO. 3
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agent, if the apprentice has completed a minimum number of qualifying experience hours
under the direction and supervision of the sponsor and the apprentice has received a
designation as a certified recovery specialist from a recognized national certification
program pursuant to LAC 10:XV.1303(D)(1)(e); and
WHEREAS, R.S. 49:969 provides that the legislature, by concurrent resolution, may
suspend, amend, or repeal any rule adopted by a state department, agency, board, or
commission.
THEREFORE, BE IT RESOLVED by the Legislature of Louisiana that LAC
10:XV.1303(E)(3) and 1315(A)(4) are hereby amended and reenacted to read as follows:
§1303. Licensing Requirements and Qualifications
* * *
E. Apprentice
* * *
3. No repossession agency shall sponsor more than one apprentice for every
two licensed repossession agents at any one time. At the discretion of the sponsor,
the apprentice may physically obtain possession of collateral for a secured party,
without the direct supervision and presence of a licensed repossession agent, if the
apprentice has completed a minimum of 250 hours of qualifying experience under
the direction and supervision of the sponsor and satisfies the qualification
requirements of §1303.(D)(1)(a), (b), (c), and (e).
* * *
§1315. Prohibitions
A. A repossession agent shall not:
* * *
4. allow an apprentice to repossess collateral without on-site supervision of
a repossession agent, except as provided in LAC 10:XV.1303(E)(3);
* * *
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
Office of the State Register and the Office of Financial Institutions. ENROLLEDHCR NO. 3
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BE IT FURTHER RESOLVED that the Office of the State Register is hereby
directed to have the amendments to LAC 10:XV.1303(E)(3) and 1315(A)(4) printed and
incorporated into the Louisiana Administrative Code.
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE