Bill
SB 3676
SB3676 updates Illinois’ Sales Finance Agency Act to implement a modern licensing system, stronger oversight, financial requirements, and strict enforcement by the Secretary.
Date introduced: February 5, 2026
Sponsor: Sen. Laura Ellman
Status: As of action history, moving through reading/assignment; includes House and Senate steps (per bill history)
Purpose and overall intent
- The bill amends and reorganizes the Sales Finance Agency Act to modernize licensing, supervision, and regulatory powers of the Secretary of Financial and Professional Regulation (Secretary) over sales finance agencies operating in Illinois.
- It introduces a comprehensive licensing framework, enhanced exam and enforcement authority, updated penalty provisions, and stronger information-sharing and review mechanisms. It also repeals several existing provisions of the Act, consolidating rules and processes.
Key provisions and changes
1) Definitions and scope
- Reframes core terms (e.g., “sales finance agency,” “holder,” “special purpose vehicle,” “net worth,” and “department”) to align with current regulatory practice.
- Clarifies relationships to the Retail Installment Sales Act and Motor Vehicle Retail Installment Sales Act, and to securitization structures such as special purpose vehicles.
2) License application and processing (new and revised sections)
- Applicants must file using a form prescribed by the Secretary; applications may be processed via the Nationwide Multistate Licensing System and Registry (NMLS).
- The Secretary may establish relationships with NMLS to collect and maintain records and process fees.
- Applications may require: identity information, independent credit reports, and disclosure of prior judgments/bankruptcies.
- The Department can issue licenses after completing filing, investigations, and confirming financial responsibility and fitness.
3) Licensee name and corporate identity (new)
- Prohibits operating a regulated business under a name not reflecting the real names of the entity and individuals conducting the business (with permissible use of approved assumed names under existing corporate/LLC/DBA frameworks).
4) Application details and financial requirements (new 4.2–4.4)
- Licensing criteria include: a minimum $30,000 positive net worth and a $50,000 surety bond (plus potential higher amounts based on activity).
- Applicants must provide detailed information about significant owners, controlling interests, and persons who influence management.
- Averments (certifications) required with applications include continued compliance commitments, reporting obligations, and notification of material changes within 30 days.
5) Renewal, fees, and administration (new and revised)
- Licenses renewed annually through the NMLS common renewal date.
- Fees include: initial company license $1,000; background investigation $800; annual renewal $300; initial branch license $100; annual branch renewal $100; and various per-change and examination fees.
- Ongoing costs: exam costs, travel reimbursements, pro rata administration fees, and potential per-licensee charges for administration.
6) Financial administration and fund management
- All monies collected under the Act for sales finance agencies go into the Financial Institution Fund; Department expenses are paid from this fund.
7) Secretary’s powers and regulatory framework (new sections 6.2–6.8)
- Detailed authority for licensing decisions, investigations, examinations, record-keeping, subpoenas, and enforcement.
- Grants the Secretary broad investigatory tools, including access to books, deposits, credit history, and other information; allows for confidential handling of supervisory information.
- Establishes confidentiality protections for information used in hearings and provides for cross-state information-sharing under appropriate safeguards.
8) Inspection, penalties, and due process (new and revised sections)
- New disciplinary authorities include suspension, revocation, probation, reprimands, fines (up to $25,000 per violation, with higher caps for certain violations), and restitution to consumers.
- Grounds for disciplinary action include fraud, dishonest dealing, violations of licensure requirements, failure to maintain records, and unfair or deceptive practices.
- Cease-and-desist authority and expedited remedies provided, with hearings and costs governed by statute.
9) Compliance, confidentiality, and information sharing (new)
- Provisions for confidential supervisory information, controlled disclosure, and privilege protection, including cross-agency sharing arrangements to improve regulatory efficiency without eroding confidentiality.
10) Other notable changes
- Adds an appellate/review framework within the Department, with formal hearings and procedures for challenging Secretary decisions.
- Establishes rules related to review and appellate processes consistent with the Administrative Procedure Act.
- Removes or repurposes several older sections as part of a broad modernization and streamlining effort.
Who is affected
Effective date
- The act states to take effect immediately upon becoming law (as indicated in the bill text).
Notes on complexity and structure
- SB3676 consolidates and expands many regulatory tools for comprehensive oversight of sales finance agencies, aligning Illinois with modern, multi-state licensing ecosystems (NMLS) and rigorous financial/fit standards.
- It emphasizes accountability, consumer protection, and streamlined licensure with enhanced penalties to deter violations.
If you’d like, I can provide a side-by-side comparison with current law to highlight exact differences or draft a plain-language briefing for non-expert readers.
Compiled from official sources — confirm details with the bill’s official record.
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