SB2234 EngrossedLRB103 28770 BMS 55153 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the Small
5Business Financing Transparency Act.
 
6    Section 2. Purpose and construction. The purpose of this
7Act is to protect business owners. This Act shall be liberally
8construed to effectuate its purpose.
 
9    Section 5. Definitions. As used in this Act:
10    "Applicant" means a person who has submitted an
11application for a registration under this Act.
12    "Closed-end financing" means a closed-end extension of
13credit, secured or unsecured, recourse or nonrecourse,
14including equipment financing that does not meet the
15definition of a lease under Section 2A-103 of the Uniform
16Commercial Code, that the recipient does not intend to use for
17personal, family, or household purposes. "Closed-end
18financing" includes financing with an established principal
19amount and duration.
20    "Commercial financing database" means a reporting database
21certified by the Department as effective in receiving a report
22of commercial financing made under this Act.

 

 

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1    "Commercial financing database provider" means an entity
2that provides a reporting database certified by the Department
3under this Act.
4    "Commercial financing" means open-end financing,
5closed-end financing, sales-based financing, factoring
6transaction, or other form of financing, the proceeds of which
7the recipient does not intend to use primarily for personal,
8family, or household purposes. For purposes of determining
9whether a financing is a commercial financing, the provider
10may rely on any statement of intended purposes by the
11recipient. The statement may be a separate statement signed by
12the recipient; may be contained in the financing application,
13financing agreement, or other document signed or consented to
14by the recipient; or may be provided orally by the recipient so
15long as it is documented in the recipient's application file
16by the provider. Electronic signatures and consents are valid
17for purposes of the foregoing sentence. The provider shall not
18be required to ascertain that the proceeds of a commercial
19financing are used in accordance with the recipient's
20statement of intended purposes.
21    "Department" means the Department of Financial and
22Professional Regulation.
23    "Division of Financial Institutions" or "Division" means
24the Division of Financial Institutions of the Department of
25Financial and Professional Regulation.
26    "Factoring transaction" means an accounts receivable

 

 

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1purchase transaction that includes an agreement to purchase,
2transfer, or sell a legally enforceable claim for payment held
3by a recipient for goods the recipient has supplied or
4services the recipient has rendered that have been ordered but
5for which payment has not yet been made.
6    "Finance charge" means the cost of financing as a dollar
7amount. "Finance charge" includes any charge payable directly
8or indirectly by the recipient and imposed directly or
9indirectly by the provider as an incident to or a condition of
10the extension of financing. "Finance charge" includes any
11charges as determined by the Secretary. For the purposes of an
12open-end financing, "finance charge" means the maximum amount
13of credit available to the recipient, in each case, that is
14drawn and held for the duration of the term or draw period. For
15the purposes of a factoring transaction, "finance charge"
16includes the discount taken on the face value of the accounts
17receivable. In addition, the finance charge shall include any
18charges determined by the Secretary.
19    "Open-end financing" means an agreement for one or more
20extensions of open-end credit, secured or unsecured, that the
21recipient does not intend to use the proceeds of primarily for
22personal, family, or household purposes. "Open-end financing"
23includes credit extended by a provider under a plan in which:
24(i) the provider reasonably contemplates repeated
25transactions; (ii) the provider may impose a finance charge
26from time to time on an outstanding unpaid balance; and (iii)

 

 

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1the amount of credit that may be extended to the recipient
2during the term of the plan is generally made available to the
3extent that any outstanding balance is repaid.
4    "Person" means an individual, entity, corporation,
5partnership, limited liability company, joint venture,
6association, joint stock company, trust, or unincorporated
7organization, including, but not limited to, a sole
8proprietorship.
9    "Provider" means a person who extends a specific offer of
10commercial financing to a recipient. "Provider", unless
11otherwise exempt, includes a person who solicits and presents
12specific offers of commercial financing on behalf of a third
13party. The mere extension of a specific offer or provision of
14disclosures for a commercial financing, is not sufficient to
15conclude that a provider is originating, making, funding, or
16providing commercial financing. "Provider" does not include:
17        (1) a bank, trust company, or industrial loan company,
18    or any subsidiary or affiliate thereof, doing business
19    under the authority of, or in accordance with, a license,
20    certificate or charter issued by the United States, this
21    State, or any other state, district, territory, or
22    commonwealth of the United States that is authorized to
23    transact business in this State;
24        (2) a federally chartered savings and loan
25    association, federal savings bank, or federal credit
26    union, or any subsidiary or affiliate thereof, that is

 

 

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1    authorized to transact business in this State;
2        (3) a savings and loan association, savings bank, or
3    credit union, or any subsidiary or affiliate thereof,
4    organized under the laws of this State or any other state
5    that is authorized to transact business in this State;
6        (4) a lender regulated under the federal Farm Credit
7    Act; and
8        (5) a person acting as a technology services provider
9    to an entity described by sub-paragraphs (1), (2), or (3)
10    for use as part of that entity's commercial financing
11    program, provided the person has no interest, or
12    arrangement, or agreement to purchase any interest in the
13    commercial financing extended by the entity in connection
14    with the program.
15    "Recipient" means a person located in the State of
16Illinois who applies for commercial financing and is made a
17specific offer of commercial financing by a provider. For the
18purpose of determining whether a recipient is located in
19Illinois, a provider may rely upon (i) any written
20representation by the recipient as to whether it is located in
21Illinois; or (ii) the business address provided by the
22recipient in the application for commercial financing showing
23that the recipient is located in Illinois. "Recipient"
24includes an authorized representative of a person who applies
25for commercial financing and is made a specific offer of
26commercial financing by a provider. "Recipient" does not

 

 

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1include a person acting as a broker is not a recipient in a
2transaction they broker.
3    "Sales-based financing" means a transaction that is repaid
4by the recipient to the provider, over time, as a percentage of
5sales or revenue, in which the payment amount may increase or
6decrease according to the volume of sales made or revenue
7received by the recipient or a transaction that includes a
8true-up mechanism where the financing is repaid as a fixed
9payment but provides for a reconciliation process that adjusts
10the payment to an amount that is a percentage of sales or
11revenue.
12    "Secretary" means the Secretary of Financial and
13Professional Regulation or a person authorized by the
14Secretary to perform the Secretary's responsibilities under
15this Act.
16    "Specific offer" means the specific terms of commercial
17financing, including price or amount, that is quoted to a
18recipient based on information obtained from or about the
19recipient that, if accepted by a recipient, shall be binding
20on the provider, as applicable, subject to any specific
21requirements stated in the specific terms.
22    "True-up mechanism" means, with respect to sales-based
23financing, a contractual arrangement with all the following
24elements:
25        (1) The financer receives periodic payments based upon
26    a pre-set amount stated in the contract.

 

 

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1        (2) The contract allows the recipient to request, or
2    the financer to initiate, adjustments to the payment
3    amount, credits to the recipient, or charges to the
4    recipient after execution of the contract, so that the
5    total amount paid by the recipient more closely reflects a
6    split rate listed in the contract.
 
7    Section 10. Applicability.
8    (a) Except as otherwise provided in this Section, this Act
9applies to any person that offers or provides commercial
10financing in Illinois or is otherwise a provider.
11    (b) The provisions of this Act apply to any person that
12seeks to evade its applicability by any device, subterfuge, or
13pretense whatsoever.
14    (c) The provisions of this Act apply to any person that
15aids or facilitates a violation of this Act.
16    (d) The provisions of this Act do not apply to:
17        (1) a bank, trust company, or industrial loan company
18    doing business under the authority of, or in accordance
19    with, a license, certificate or charter issued by the
20    United States, this State, or any other state, district,
21    territory, or commonwealth of the United States that is
22    authorized to transact business in this State;
23        (2) a federally chartered savings and loan
24    association, federal savings bank, or federal credit union
25    that is authorized to transact business in this State;

 

 

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1        (3) a savings and loan association, savings bank, or
2    credit union organized under the laws of this State or any
3    other state that is authorized to transact business in
4    this State;
5        (4) a lender regulated under the federal Farm Credit
6    Act; and
7        (5) a person acting in the person's capacity as a
8    technology services provider to an entity described by
9    sub-paragraphs (1), (2), or (3) for use as part of that
10    entity's commercial financing program, provided the person
11    has no interest, or arrangement, or agreement to purchase
12    any interest in the commercial financing extended by the
13    entity in connection with the program.
 
14    Section 15. Division of Financial Institutions. This Act
15shall be administered by the Division on behalf of the
16Secretary.
 
17    Section 20. Registration requirement.
18    (a) It is unlawful for a person to engage in the conduct
19regulated by this Act unless the person: (i) registers with
20the Secretary in accordance with this Section; and (ii)
21maintains a valid registration. An officer or employee of a
22person required to register under this Section is not required
23to register if the person for whom the individual is an officer
24or employee is registered.

 

 

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1    (b) Application for registration and renewal of
2registration shall be made in accordance with this Act and
3with the requirements of the multistate licensing system, if
4required by the Secretary. The application shall be in
5writing, under oath, and on a form obtained from and
6prescribed by the Secretary. The Secretary may change or
7update the form to carry out the purposes of this Act. The
8Secretary may require part or all of the application to be
9submitted electronically, with attestation, to the multistate
10licensing system.
11    (c) Registrants shall apply to renew their registration
12every calendar year. Registrants may submit properly completed
13renewal application forms and filing fees 60 days before the
14registration expiration date, and the same shall be received
15by the Secretary at least 30 days before the registration
16expiration date. Absent a written extension from the
17Department, a registration shall expire on December 31 of each
18year if a registrant fails to timely submit a properly
19completed renewal application and fees.
20    (d) Upon receipt of the registration, a registrant is
21authorized to engage in conduct regulated by this Act. The
22registration shall remain in full force and effect until it
23expires, is withdrawn by the registrant, or is revoked or
24suspended as provided in this Act.
25    (e) To register under this Section, an applicant shall:
26        (1) pay a registration fee of $2,500 to the

 

 

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1    Department; and
2        (2) submit a registration statement containing the
3    information described in subsection (g).
4    (f) To renew a registration under this Section, a person
5shall:
6        (1) pay the annual fee of $2,500 to the Department;
7    and
8        (2) submit a renewal statement containing the
9    information described in subsection (g).
10    (g) A registration or renewal statement must be submitted
11to the Secretary or to a multistate licensing system as
12approved by the Secretary. The registration or renewal
13statement shall include:
14        (1) the name of the person;
15        (2) the name in which the business will be transacted
16    if different from that required in paragraph (1), which
17    must be properly registered as an assumed corporate name
18    under the Business Corporation Act of 1983, an assumed
19    limited liability company name under the Limited Liability
20    Company Act, or an assumed business name under the Assumed
21    Business Name Act;
22        (3) the address of the person's principal business
23    office;
24        (4) the address of each office in this State at which
25    the person engages in commercial financing transactions;
26        (5) if the person engages in commercial financing

 

 

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1    transactions in this State but does not maintain an office
2    in this State, a brief description of the manner in which
3    the business is conducted;
4        (6) if the person conducts business through an agent
5    located in this State, the name and address in this State
6    of the person's agent properly registered with the
7    Secretary of State;
8        (7) for a registration application, whether the
9    person, an officer, director, manager, operator, or
10    principal of the person, or an employee of the person
11    engaged in the business of commercial financing has been
12    convicted of a crime involving an act of fraud,
13    dishonesty, breach of trust, or money laundering; if the
14    applicant answers yes to this paragraph, then the
15    applicant shall report the names, titles or relationship
16    to the applicant or registrant, and the nature of the
17    covered crime;
18        (8) for a renewal application, whether, in the past
19    year, the person, an officer, director, manager, operator,
20    or principal of the person, or an employee of the person
21    engaged in the business of commercial financing has been
22    convicted of a crime involving an act of fraud,
23    dishonesty, breach of trust, or money laundering; if the
24    registrant answers yes to this paragraph, then the
25    registrant shall report the names, titles or relationship
26    to the applicant or registrant, and the nature of the

 

 

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1    covered crime;
2        (9) a statement of the person's commitment to abide by
3    the requirements of registering persons under this Act,
4    including providing the required financing disclosures in
5    commercial financing offers as required under Sections 45,
6    50, 55, 60, 65, and 70 of this Act;
7        (10) a copy of the commercial financing disclosure
8    form to be used for each type of commercial financing that
9    the person offers or intends to offer, and a description
10    of when the disclosure will be provided to the recipient;
11        (11) information on financing offers presented by
12    registrant in Illinois in the previous calendar year,
13    including the number of financing offers made, the number
14    of financing offers made in which the disclosures as
15    required by Sections 45, 50, 55, 60, 65, and 70 were
16    offered, and the number of financing offers accepted by
17    recipients; and
18        (12) any other information deemed necessary by the
19    Secretary.
20    (h) The Secretary may refuse to accept or renew a
21registration if:
22        (1) the Secretary determines that the person has not
23    complied with the provisions of this Act, its implementing
24    rules, or other laws that apply to the person; or
25        (2) the Secretary determines that there is substantial
26    continuity between the person and any violator of this

 

 

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1    Act, its implementing rules, or other laws that apply to
2    the person or related violator.
3    (i) The Department shall adopt and amend such rules as may
4be required for the proper administration and enforcement of
5this Section, including rules providing for the form, content,
6and filing of a registration and renewal statement.
 
7    Section 25. Additional registration information.
8    (a) In order to fulfill the purposes of this Act, the
9Secretary may establish relationships or contracts with a
10multistate licensing system or other persons to collect and
11maintain records and process fees related to registrants or
12other persons subject to this Act.
13    (b) For the purposes of this Section, and to reduce the
14points of contact that the Secretary may have to maintain, the
15Secretary may use a multistate licensing system as a
16channeling agent for requesting and distributing information
17to and from any source.
18    (c) Each registrant shall furnish to the Secretary or
19multistate licensing system an updated business address within
2010 days after any change of business address.
 
21    Section 30. Registration expiration. No activity regulated
22by this Act shall be conducted by a registrant whose
23registration has expired. The Secretary may, within the
24Secretary's discretion, reinstate an expired registration upon

 

 

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1payment of the renewal fee, payment of a reactivation fee
2equal to 5 times the renewal fee, submission of a completed
3renewal application, and an affidavit of good cause for late
4renewal.
 
5    Section 35. Functions; powers; duties. The functions,
6powers, and duties of the Secretary include, but are not
7limited to, the following:
8        (1) to issue or refuse to issue any registration or
9    renewal;
10        (2) to revoke or suspend for cause any registration
11    issued under this Act;
12        (3) to keep records of all registrations issued under
13    this Act;
14        (4) to receive, consider, investigate, and act upon
15    complaints made by any person in connection with any
16    registration in this State or unregistered commercial
17    financing activity of any person;
18        (5) to adopt rules necessary and proper for the
19    administration of this Act, to protect consumers and
20    financing recipients, to promote fair competition, and as
21    otherwise authorized by this Act;
22        (6) to subpoena documents and witnesses and compel
23    their attendance and production, to administer oaths, and
24    to require the production of any books, papers, or other
25    materials relevant to any inquiry authorized by this Act

 

 

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1    or its implementing rules;
2        (7) to issue orders against any person if the
3    Secretary has reasonable cause to believe that an unsafe,
4    unsound, or unlawful practice has occurred, is occurring,
5    or is about to occur; if any person is violating, or is
6    about to violate any law, rule, or written agreement with
7    the Secretary; or for the purpose of administering the
8    provisions of this Act and any rule adopted in accordance
9    with this Act;
10        (8) to address any inquiries to any registrant, or the
11    owners, officers, or directors thereof, in relation to its
12    activities and conditions, or any other matter connected
13    with its affairs, and any registrant or person so
14    addressed shall promptly reply in writing to those
15    inquiries. The Secretary may also require reports from any
16    registrant at any time the Secretary deems desirable;
17        (9) to enforce provisions of this Act and its
18    implementing rules;
19        (10) to levy fees, including, but not limited to,
20    assessments, registration fees, civil penalties, and
21    charges for services performed in administering this Act.
22    The Secretary may establish and modify fees by rule. The
23    aggregate of all fees collected by the Secretary under
24    this Act shall be paid promptly after receipt into the
25    Financial Institution Fund. The amounts deposited into the
26    Financial Institution Fund shall be used for the ordinary

 

 

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1    and contingent expenses of the Department. Nothing in this
2    Act prevents paying expenses including salaries,
3    retirement, social security, and State-paid insurance of
4    State employees, or any other expenses incurred under this
5    Act by appropriation from the General Revenue Fund or any
6    other fund;
7        (11) to issue refunds to registrants of any
8    overpayment for good cause shown;
9        (12) to appoint experts and special assistants as
10    needed to effectively and efficiently administer this Act;
11        (13) to conduct hearings for the purpose of
12    suspensions, denials, or revocations of registrations,
13    fining, or other discipline of registrants or unregistered
14    persons or entities;
15        (14) to exercise visitorial power over a registrant:
16    (A) if the Secretary has reasonable cause to believe that
17    an unsafe, unsound, or unlawful practice has occurred, is
18    occurring, or is about to occur; or (B) if a person is
19    violating or is about to violate any law, rule, or written
20    agreement with the Secretary; and
21        (15) to enter into cooperative agreements with state
22    regulatory authorities of other states to provide for
23    examination of corporate offices or branches of those
24    states, participate in joint examinations with other
25    regulators, and to accept reports of the examinations: (A)
26    if the Secretary has reasonable cause to believe that an

 

 

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1    unsafe, unsound, or unlawful practice has occurred, is
2    occurring, or is about to occur; or (B) if a person is
3    violating or is about to violate any law, rule, or written
4    agreement with the Secretary;
5        (16) to impose civil penalties of up to $200 per day
6    against a registrant for failing to respond to a
7    regulatory request or reporting requirement; and
8        (17) to enter into agreements in connection with a
9    multistate licensing system.
 
10    Section 40. Subpoena power of the Secretary.
11    (a) The Secretary may issue and serve subpoenas and
12subpoenas duces tecum to compel the attendance of witnesses
13and the production of all books, accounts, records, and other
14documents and materials relevant to an investigation. The
15Secretary, or the Secretary's duly authorized representative,
16may administer oaths and affirmations to any person.
17    (b) If a person does not comply with the Secretary's
18subpoena or subpoena duces tecum, the Secretary may, through
19the Attorney General, petition the circuit court of the county
20in which the subpoenaed person resides or has its principal
21place of business for an order requiring the subpoenaed person
22to testify and to comply with the subpoena duces tecum. The
23court may grant injunctive relief restraining the person from
24engaging in activity regulated by this Act. The court may
25grant other relief, including, but not limited to, the

 

 

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1restraint, by injunction or appointment of a receiver, of any
2transfer, pledge, assignment, or other disposition of the
3person's assets, concealment, destruction, or other
4disposition of books, accounts, records, or other documents
5and materials, as the court deems appropriate, until the
6person has fully complied with the subpoena or subpoena duces
7tecum and the Secretary has completed an investigation.
8    (c) If it appears to the Secretary that the compliance
9with a subpoena or subpoena duces tecum issued or caused to be
10issued by the Secretary under this Section is essential to an
11investigation, the Secretary, in addition to the other
12remedies provided for in this Act, may, through the Attorney
13General, apply for relief to the circuit court of the county in
14which the subpoenaed person resides or has its principal place
15of business. The court shall thereupon direct the issuance of
16an order against the subpoenaed person requiring sufficient
17bond conditioned on compliance with the subpoena or subpoena
18duces tecum. The court shall cause to be endorsed on the order
19a suitable amount of bond or payment pursuant to which the
20person named be freed, having a due regard to the nature of the
21case.
22    (d) In addition, the Secretary may, through the Attorney
23General, seek a writ of attachment or an equivalent order from
24the circuit court having jurisdiction over the person who has
25refused to obey a subpoena, who has refused to give testimony,
26or who has refused to produce the matters described in the

 

 

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1subpoena duces tecum.
 
2    Section 45. Sales-based financing disclosure requirements.
3A provider subject to this Act shall provide the following
4disclosures to a recipient, in a manner prescribed by the
5Secretary, if any, at the time of extending a specific offer of
6sales-based financing:
7        (1) The total amount of the commercial financing, and,
8    if different from the financing amount, the disbursement
9    amount after any amount deducted or withheld at
10    disbursement.
11        (2) The finance charge.
12        (3) The estimated annual percentage rate, using the
13    words annual percentage rate or the abbreviation
14    "Estimated APR", expressed as a yearly rate, inclusive of
15    any fees and finance charges, based on the estimated term
16    of repayment and the projected periodic payment amounts.
17    The estimated term of repayment and the projected periodic
18    payment amounts shall be calculated based on the
19    projection of the recipient's sales, which may be referred
20    to as the projected sales volume. The projected sales
21    volume may be calculated using the historical method or
22    the underwriting method. The provider shall provide notice
23    to the Secretary on which method the provider intends to
24    use across all instances of sales-based financing offered
25    in calculating the estimated annual percentage rate under

 

 

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1    this Section, according to the following:
2            (A) A provider using the historical method shall
3        use an average historical volume of sales or revenue
4        by which the financing's payment amounts are based and
5        the estimated annual percentage rate is calculated.
6        The provider shall fix the historical time period used
7        to calculate the average historical volume and use the
8        period for all disclosure purposes for all sales-based
9        financing products offered. The fixed historical time
10        period shall either be the preceding time period from
11        the specific offer or, alternatively, the provider may
12        use average sales for the same number of months with
13        the highest sales volume within the previous 12
14        months. The fixed historical time period shall be no
15        less than one month and shall not exceed 12 months.
16            (B) A provider using the underwriting method shall
17        determine the estimated annual percentage rate, the
18        estimated term, and the projected payments, using a
19        projected sales volume that the provider elects for
20        each disclosure, if they participate in a review
21        process prescribed by the Secretary. A provider shall,
22        on an annual basis, report data to the Secretary of
23        estimated annual percentage rates disclosed to the
24        recipient and actual retrospective annual percentage
25        rates of completed transactions. The report shall
26        contain the information as the Department may adopt by

 

 

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1        rule as necessary or appropriate for the purpose of
2        making a determination of whether the deviation
3        between the estimated annual percentage rate and
4        actual retrospective annual percentage rates of
5        completed transactions was reasonable. The Secretary
6        shall establish the method of reporting and may, upon
7        a finding that the use of projected sales volume by the
8        provider has resulted in an unacceptable deviation
9        between estimated and actual annual percentage rate,
10        require the provider to use the historical method. The
11        Secretary may consider unusual and extraordinary
12        circumstances impacting the provider's deviation
13        between estimated and actual annual percentage rate in
14        the determination of the finding.
15        (4) The total repayment amount, which is the
16    disbursement amount plus the finance charge.
17        (5) The estimated term, which is the period of time
18    required for the periodic payments, based on the projected
19    sales volume, to equal the total amount required to be
20    repaid.
21        (6) The payment amounts, based on the projected sales
22    volume:
23            (A) for payment amounts that are fixed, the
24        payment amounts and frequency, such as, daily, weekly,
25        monthly, and, if the payment frequency is other than
26        monthly, the amount of the average projected payments

 

 

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1        per month; or
2            (B) for payment amounts that are variable, a
3        payment schedule or a description of the method used
4        to calculate the amounts and frequency of payments and
5        the amount of the average projected payments per
6        month.
7        (7) A description of all other potential fees and
8    charges not included in the finance charge, including, but
9    not limited to, draw fees, late payment fees, and returned
10    payment fees.
11        (8) If the recipient elects to pay off or refinance
12    the commercial financing before full repayment, the
13    provider shall disclose:
14            (A) whether the recipient would be required to pay
15        any finance charges other than interest accrued since
16        their last payment; if so, disclosure of the
17        percentage of any unpaid portion of the finance charge
18        and maximum dollar amount the recipient could be
19        required to pay; and
20            (B) whether the recipient would be required to pay
21        any additional fees not already included in the
22        finance charge.
23        (9) A description of collateral requirements or
24    security interests, if any.
 
25    Section 50. Commercial closed-end financing disclosure

 

 

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1requirements.
2    (a) A provider subject to this Act shall provide the
3following disclosures to a recipient, in a manner prescribed
4by the Secretary, if any, at the time of extending a specific
5offer for closed-end financing:
6        (1) The total amount of the commercial financing, and,
7    if different from the financing amount, the disbursement
8    amount after any amount deducted or withheld at
9    disbursement.
10        (2) The finance charge.
11        (3) The annual percentage rate, using only the words
12    annual percentage rate or the abbreviation "APR",
13    expressed as a yearly rate, inclusive of any fees and
14    finance charges that cannot be avoided by a recipient.
15        (4) The total repayment amount, which is the
16    disbursement amount plus the finance charge.
17        (5) The term of the financing.
18        (6) The payment amounts:
19            (A) for payment amounts that are fixed, the
20        payment amounts and frequency, such as daily, weekly,
21        monthly, and, if the term is longer than one month, the
22        average monthly payment amount; or
23            (B) for payment amounts that are variable, a full
24        payment schedule or a description of the method used
25        to calculate the amounts and frequency of payments,
26        and, if the term is longer than one month, the

 

 

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1        estimated average monthly payment amount.
2        (7) A description of all other potential fees and
3    charges that can be avoided by the recipient, including,
4    but not limited to, late payment fees and returned payment
5    fees.
6        (8) If the recipient elects to pay off or refinance
7    the commercial financing before full repayment, the
8    provider shall disclose:
9            (A) whether the recipient would be required to pay
10        any finance charges other than interest accrued since
11        their last payment; if so, disclosure of the
12        percentage of any unpaid portion of the finance charge
13        and maximum dollar amount the recipient could be
14        required to pay; and
15            (B) whether the recipient would be required to pay
16        any additional fees not already included in the
17        finance charge.
18        (9) A description of collateral requirements or
19    security interests, if any.
20    (b) If an advance requires repayment in periodic
21installments over time and does not qualify as sales-based
22financing, then the advance qualifies as close-end financing
23and shall satisfy the disclosure requirements of this Section.
 
24    Section 55. Open-end commercial financing disclosure
25requirements. A provider subject to this Act shall provide the

 

 

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1following disclosures to a recipient, in a manner prescribed
2by the Secretary, if any, at the time of extending a specific
3offer for open-end financing:
4        (1) The maximum amount of credit available to the
5    recipient, such as the credit line amount, and the amount
6    scheduled to be drawn by the recipient at the time the
7    offer is extended, if any, less any amount deducted or
8    withheld at disbursement.
9        (2) The finance charge.
10        (3) The annual percentage rate, using only the words
11    annual percentage rate or the abbreviation "APR",
12    expressed as a nominal yearly rate, inclusive of any fees
13    and finance charges that cannot be avoided by a recipient,
14    and based on the maximum amount of credit available to the
15    recipient and the term resulting from making the minimum
16    required payments term as disclosed.
17        (4) The total repayment amount, which is the draw
18    amount, less any fees deducted or withheld at
19    disbursement, plus the finance charge. The total repayment
20    amount shall assume a draw amount equal to the maximum
21    amount of credit available to the recipient if drawn and
22    held for the duration of the term or draw period.
23        (5) The term of the plan, if applicable, or the period
24    over which a draw is amortized.
25        (6) The payment frequency and amounts, based on the
26    assumptions used in the calculation of the annual

 

 

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1    percentage rate, including a description of payment amount
2    requirements such as a minimum payment amount, and if the
3    payment frequency is other than monthly, the amount of the
4    average projected payments per month. For payment amounts
5    that are variable, the provider should include a payment
6    schedule or a description of the method used to calculate
7    the amounts and frequency of payments and the estimated
8    average monthly payment amount.
9        (7) A description of all other potential fees and
10    charges that can be avoided by the recipient, including,
11    but not limited to, draw fees, late payment fees, and
12    returned payment fees.
13        (8) Were the recipient to elect to pay off or
14    refinance the commercial financing before full repayment,
15    the provider shall disclose:
16            (A) whether the recipient would be required to pay
17        any finance charges other than interest accrued since
18        their last payment; if so, disclosure of the
19        percentage of any unpaid portion of the finance charge
20        and maximum dollar amount the recipient could be
21        required to pay; and
22            (B) whether the recipient would be required to pay
23        any additional fees not already included in the
24        finance charge.
25        (9) A description of collateral requirements or
26    security interests, if any.
 

 

 

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1    Section 60. Factoring transaction disclosure requirements.
2A provider subject to this Act shall provide the following
3disclosures to a recipient, in a manner prescribed by the
4Secretary, if any, at the time of extending a specific offer
5for a factoring transaction:
6        (1) The amount of the receivables purchase price paid
7    to the recipient, and, if different from the purchase
8    price, the disbursement amount after any amount deducted
9    or withheld at disbursement.
10        (2) The finance charge.
11        (3) The estimated annual percentage rate, using that
12    term. To calculate the estimated annual percentage rate,
13    the purchase amount is considered the financing amount,
14    the purchase amount minus the finance charge is considered
15    the payment amount, and the term is established by the
16    payment due date of the receivables. As an alternate
17    method of establishing the term, the provider may estimate
18    the term for a factoring transaction as the average
19    payment period based on its historical data over a period
20    not to exceed the previous 12 months, concerning payment
21    invoices paid by the party or parties owing the accounts
22    receivable in question.
23        (4) The total payment amount, which is the purchase
24    amount plus the finance charge.
25        (5) A description of all other potential fees and

 

 

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1    charges that can be avoided by the recipient.
2        (6) A description of the receivables purchased and any
3    additional collateral requirements or security interests.
 
4    Section 65. Other forms of financing disclosure
5requirements. The Secretary may require disclosure by a
6provider extending a specific offer of commercial financing
7which is not an open-end financing, closed-end financing,
8sales-based financing, or factoring transaction but otherwise
9meets the definition of commercial financing. Subject to rules
10adopted by the Secretary, a provider subject to this Act shall
11provide the following disclosures to a recipient, in a manner
12prescribed by the Secretary, if any, at the time of extending a
13specific offer of other forms of financing:
14        (1) The total amount of the commercial financing, and,
15    if different from the financing amount, the disbursement
16    amount after any fees deducted or withheld at
17    disbursement.
18        (2) The finance charge.
19        (3) The annual percentage rate, using only the words
20    annual percentage rate or the abbreviation "APR",
21    expressed as a yearly rate, inclusive of any fees and
22    finance charges.
23        (4) The total repayment amount which is the
24    disbursement amount plus the finance charge.
25        (5) The term of the financing.

 

 

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1        (6) The payment amounts:
2            (A) for payment amounts that are fixed, the
3        payment amounts and frequency, such as daily, weekly,
4        monthly, and the average monthly payment amount; or
5            (B) for payment amounts that are variable, a
6        payment schedule or a description of the method used
7        to calculate the amounts and frequency of payments,
8        and the estimated average monthly payment amount.
9        (7) A description of all other potential fees and
10    charges that can be avoided by the recipient, including,
11    but not limited to, late payment fees and returned payment
12    fees.
13        (8) If the recipient elects to pay off or refinance
14    the commercial financing before full repayment, the
15    provider shall disclose:
16            (A) whether the recipient would be required to pay
17        any finance charges other than interest accrued since
18        their last payment; if so, disclosure of the
19        percentage of any unpaid portion of the finance charge
20        and maximum dollar amount the recipient could be
21        required to pay; and
22            (B) whether the recipient would be required to pay
23        any additional fees not already included in the
24        finance charge.
25        (9) A description of collateral requirements or
26    security interests, if any.
 

 

 

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1    Section 70. Disclosure requirements for renewal financing.
2If, as a condition of obtaining the commercial financing, the
3provider requires the recipient to pay off the balance of an
4existing commercial financing from the same provider, the
5provider shall disclose:
6        (1) The amount of the new commercial financing that is
7    used to pay off the portion of the existing commercial
8    financing that consists of prepayment charges required to
9    be paid and any unpaid interest expense that was not
10    forgiven at the time of renewal. For financing for which
11    the total repayment amount is calculated as a fixed
12    amount, the prepayment charge is equal to the original
13    finance charge multiplied by the amount of the renewal
14    used to pay off existing financing as a percentage of the
15    total repayment amount, minus any portion of the total
16    repayment amount forgiven by the provider at the time of
17    prepayment. If the amount is more than zero, the amount
18    shall be the answer to the following question: "Does the
19    renewal financing include any amount that is used to pay
20    unpaid finance charges or fees, also known as double
21    dipping? Yes, {enter amount}. If the amount is zero, the
22    answer would be no."
23        (2) If the disbursement amount will be reduced to pay
24    down any unpaid portion of the outstanding balance, the
25    actual dollar amount by which the disbursement amount will

 

 

SB2234 Engrossed- 31 -LRB103 28770 BMS 55153 b

1    be reduced.
 
2    Section 75. Additional information. Nothing in this Act
3shall prevent a provider from providing or disclosing
4additional information on a commercial financing being offered
5to a recipient, provided however, that the additional
6information shall not be disclosed as part of the disclosure
7required by this Act. If other metrics of financing cost are
8disclosed or used in the application process of a commercial
9financing, these metrics shall not be presented as a "rate" if
10they are not the annual interest rate or the annual percentage
11rate. The term "interest", when used to describe a percentage
12rate, shall only be used to describe annualized percentage
13rates, such as the annual interest rate. When a provider
14states a rate of finance charge or a financing amount to a
15recipient during an application process for commercial
16financing, the provider shall also state the rate as an
17"annual percentage rate", using that term or the abbreviation
18"APR".
 
19    Section 80. Commercial financing disclosure forms approved
20for use in the other states. The Secretary may approve the use
21of commercial financing disclosure forms approved for use in
22other states with commercial financing disclosure requirements
23that are substantially similar to or exceed the requirements
24set forth in this Act, including the disclosure requirements

 

 

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1in Sections 45, 50, 55, 60, 65, and 70 of this Act.
 
2    Section 85. Violation of disclosure requirements. If the
3Secretary finds that a provider who is required to register
4with the Department according to this Act has violated any
5disclosure requirements outlined in Sections 45, 50, 55, 60,
665, 70, and 75, that shall be considered a violation of this
7Act separate from any other violation that may result from
8operating without a registration as outlined in Section 95.
 
9    Section 90. Notification.
10    (a) A registrant must advise the Secretary in writing of
11any changes to the information submitted on its most recent
12registration or renewal of registration within 30 days after
13the change.
14    (b) A registrant must advise the Secretary in writing that
15the registrant has been disciplined, including denial of
16licensure, by a licensing authority of this State or another
17state within 10 days after entry of the discipline.
 
18    Section 95. Disciplinary actions.
19    (a) The Secretary may enter an order imposing one or more
20of the following penalties:
21        (1) revocation of registration;
22        (2) suspension of a registration subject to
23    reinstatement upon satisfying all reasonable conditions

 

 

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1    the Secretary may specify;
2        (3) placement of the registrant or applicant on
3    probation for a period of time and subject to all
4    reasonable conditions as the Secretary may specify;
5        (4) imposition of civil monetary penalties not to
6    exceed $10,000 for each separate offense, but civil
7    penalties may not to exceed $50,000 for all violations
8    arising from the use of the same single transaction,
9    including for financing offers that are not consummated;
10        (5) restitution, refunds, or any other relief
11    necessary to protect recipients; and
12        (6) denial of a registration.
13    (b) Grounds for penalties include:
14        (1) if a registrant has violated or aided another to
15    violate any provision of this Act, any rule adopted by the
16    Secretary, or any other law, rule, or regulation of this
17    State, any other state, or the United States;
18        (2) if a person has violated or aided another to
19    violate any provision of this Act or any rule adopted by
20    the Secretary pursuant to this Act;
21        (3) if a fact or condition exists that, if it had
22    existed at the time of the original application for
23    registration, would have warranted the Secretary in
24    refusing issue the original registration;
25        (4) that a registrant that is not an individual has
26    acted or failed to act in a way that would be cause for

 

 

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1    suspending or revoking a registration to an individual;
2        (5) that a person engaged in unsafe, unsound, unfair,
3    deceptive, or abusive business practices related to the
4    activity covered by this Act;
5        (6) that a registrant or an officer, director,
6    manager, operator, or principal of the registrant, or an
7    employee of the registrant engaged in the business of
8    commercial financing has been adjudicated guilty of a
9    crime against the law of this State, any other state, or of
10    the United States involving moral turpitude, abusive,
11    deceptive, fraudulent, or dishonest dealing;
12        (7) that a final judgment has been entered against
13    registrant or an officer, director, manager, operator, or
14    principal of the registrant, or an employee of the
15    registrant engaged in the business of commercial financing
16    in a civil action upon grounds of abusive conduct,
17    conversion, fraud, misrepresentation, or deceit;
18        (8) that an applicant made a material misstatement in
19    the applicant's application for registration or any other
20    communication to the Secretary;
21        (9) that a person has demonstrated, by course of
22    conduct, negligence or incompetence in performing any act
23    for which it is required to hold a registration under this
24    Act;
25        (10) that a person has failed to advise the Secretary
26    in writing of any changes to the information submitted on

 

 

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1    the person's most recent registration or renewal of
2    registration within 30 days after the change;
3        (11) that a registrant had a license, registration, or
4    the equivalent, to practice any profession, occupation,
5    other industry or activity requiring licensure revoked,
6    suspended, disciplined, or otherwise acted against,
7    including the denial of licensure by a licensing authority
8    of this State or another state, territory, or country for
9    fraud, dishonest dealing, misrepresentations,
10    incompetence, conversion, any act of moral turpitude or
11    any other grounds that would constitute grounds for
12    discipline under this Act;
13        (12) that a person registered under this Act failed to
14    timely notify the Secretary that the person has been
15    disciplined, including denial of licensure, by a licensing
16    authority of this State or another state as required under
17    subsection (b) of Section 90;
18        (13) that a person engaged in activities regulated by
19    this Act without a current, active registration unless
20    specifically exempted by this Act;
21        (14) that a person failed to timely pay any fee,
22    charge, or civil penalty assessed under this Act; and
23        (15) that a person refused, obstructed, evaded, or
24    unreasonably delayed an investigation or information
25    request authorized under this Act, or refused, obstructed,
26    evaded, or unreasonably delayed compliance with the

 

 

SB2234 Engrossed- 36 -LRB103 28770 BMS 55153 b

1    Secretary's subpoena or subpoena duces tecum.
2    (c) No registration shall be suspended or revoked, except
3as provided in this Section, nor shall any person be assessed a
4civil penalty without notice of his or her right to a hearing.
5    (d) The Secretary may suspend any registration for a
6period not exceeding 180 days pending investigation for good
7cause shown that an emergency exists.
8    (e) No revocation, suspension, or surrender of any
9registration shall impair or affect the obligation of any
10preexisting lawful contract between the registrant and any
11person. The Secretary's approval of a registrant's application
12to surrender its registration shall not affect the
13registrant's civil or criminal liability for acts committed
14prior to surrender. Surrender of a registration does not
15entitle the registrant to a return of any part of the
16registration fee.
17    (f) Every registration issued under this Act shall remain
18in force and effect until the registration expires, is
19surrendered, is revoked, or is suspended in accordance with
20the provisions of this Act. The Secretary shall have authority
21to reinstate a suspended registration or to issue a new
22registration to a registrant whose registration has been
23revoked or surrendered if no fact or condition then exists
24which would have warranted the Secretary in refusing
25originally to issue that registration under this Act.
26    (g) Whenever the Secretary imposes discipline authorized

 

 

SB2234 Engrossed- 37 -LRB103 28770 BMS 55153 b

1by this Section, the Secretary shall execute a written order
2to that effect. The Secretary shall serve a copy of the order
3upon the person. The Secretary shall serve the person with
4notice of the order, including a statement of the reasons for
5the order personally or by certified mail. Service by
6certified mail shall be deemed completed when the notice is
7deposited in the U.S. Mail.
8    (h) An order assessing a civil penalty, an order revoking
9or suspending a registration, or an order denying renewal of a
10registration shall take effect upon service of the order
11unless the registrant serves the Department with a written
12request for a hearing in the manner required by the order
13within 10 days after the date of service of the order. If a
14person requests a hearing, the order shall be stayed from its
15date of service until the Department enters a final
16administrative order. Hearings shall be conducted as follows:
17        (1) If the registrant requests a hearing, then the
18    Secretary shall schedule a hearing within 90 days after
19    the request for a hearing unless otherwise agreed to by
20    the parties.
21        (2) The hearing shall be held at the time and place
22    designated by the Secretary. The Secretary and any
23    administrative law judge designated by the Secretary shall
24    have the power to administer oaths and affirmations,
25    subpoena witnesses and compel their attendance, take
26    evidence, and require the production of books, papers,

 

 

SB2234 Engrossed- 38 -LRB103 28770 BMS 55153 b

1    correspondence, and other records or information that they
2    consider relevant or material to the inquiry.
3    (i) The costs of administrative hearings conducted under
4this Section shall be paid by the registrant or other person
5subject to the hearing.
6    (j) Registrants and other persons subject to this Act
7shall be subject to the disciplinary actions specified in this
8Act for any violations conducted by any officer, director,
9shareholder, joint venture, partner, owner, including, but not
10limited to, ultimate equitable owner.
 
11    Section 100. Investigation of complaints. The Secretary
12may investigate any complaints and inquiries made concerning
13this Act and any registrants or persons the Secretary believes
14may be required to register under this Act. Each registrant or
15person the Secretary believes may be required to register
16under this Act shall open the registrant's or person's books,
17records, documents, and offices wherever situated to the
18Secretary as needed to facilitate the investigations.
 
19    Section 105. Additional investigation authority. In
20addition to any authority allowed under this Act, the
21Secretary may conduct investigations as follows:
22        (1) For purposes of initial registration, registration
23    renewal, registration suspension, registration
24    conditioning, registration probation, registration

 

 

SB2234 Engrossed- 39 -LRB103 28770 BMS 55153 b

1    revocation or termination, or general or specific inquiry
2    or investigation to determine compliance with this Act,
3    the Secretary may access, receive, and use any books,
4    accounts, records, files, documents, information, or
5    evidence, including, but not limited to, the following:
6            (A) criminal, civil, registration, and
7        administrative history information, including
8        nonconviction data as specified in the Criminal Code
9        of 2012; (B) personal history and experience
10        information, including independent credit reports
11        obtained from a consumer reporting agency described in
12        Section 603(p) of the federal Fair Credit Reporting
13        Act; and (C) any other documents, information, or
14        evidence the Secretary deems relevant to the inquiry
15        or investigation, regardless of the location,
16        possession, control, or custody of the documents,
17        information, or evidence.
18        (2) For the purposes of investigating violations or
19    complaints arising under this Act, the Secretary may
20    review or investigate any registrant or person subject to
21    this Act as necessary in order to carry out the purposes of
22    this Act. The Secretary may direct, subpoena, or order the
23    attendance of, and examine under oath all persons and
24    order any person to produce records, files, and any other
25    documents the Secretary deems relevant to an inquiry.
26        (3) Each person subject to this Act shall make

 

 

SB2234 Engrossed- 40 -LRB103 28770 BMS 55153 b

1    available to the Secretary upon request the books and
2    records relating to the operations of the person subject
3    to this Act. The Secretary shall have access to those
4    books and records and may interview the owners, officers,
5    principals, employees, independent contractors, agents,
6    vendors, and customers of any registrant or person subject
7    to this Act.
8        (4) In making any investigation authorized by this
9    Act, the Secretary may control access to any documents and
10    records of the registrant or person under investigation.
11    The Secretary may take possession of the documents and
12    records or otherwise take constructive control of the
13    documents. During the period of control, no person shall
14    remove or alter any of the documents or records, except
15    pursuant to a court order or with the consent of the
16    Secretary. Unless the Secretary has reasonable grounds to
17    believe the documents or records of the registrant have
18    been or are at risk of being altered or destroyed for
19    purposes of concealing a violation of this Act, the
20    registrant or owner of the documents and records shall
21    have access to the documents or records as necessary to
22    conduct its ordinary business affairs.
23        (5) In order to carry out the purposes of this
24    Section, the Secretary may:
25            (A) retain attorneys, accountants, or other
26        professionals and specialists as auditors or

 

 

SB2234 Engrossed- 41 -LRB103 28770 BMS 55153 b

1        investigators to conduct or assist in the conduct of
2        investigations;
3            (B) enter into agreements or relationships with
4        other government officials or regulatory associations
5        to protect consumers or financing recipients, improve
6        efficiencies, and reduce regulatory burden by sharing
7        resources, standardized or uniform methods or
8        procedures, and documents, records, information, or
9        evidence obtained under this Section;
10            (C) use, hire, contract, or employ publicly or
11        privately available analytical systems, methods, or
12        software or investigate the registrant or person
13        subject to this Act;
14            (D) accept and rely on examination or
15        investigation reports made by other government
16        officials, within or outside this State; or
17            (E) accept audit reports made by an independent
18        certified public accountant for the person subject to
19        this Act and may incorporate the audit report in the
20        report of the investigation or other writing of the
21        Secretary.
22        (6) The authority of this Section shall remain in
23    effect, whether the person subject to this Act acts or
24    claims to act under any licensing or registration law of
25    this State or claims to act without the authority.
26        (7) No registrant or person subject to investigation

 

 

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1    or under this Section may knowingly withhold, alter,
2    abstract, remove, mutilate, destroy, hide, or conceal any
3    books, records, computer records, or other information or
4    take actions designed to delay or complicate review of
5    records.
 
6    Section 110. Confidentiality. To promote more effective
7regulation, protect consumers and financing recipients, and
8reduce regulatory burden through inter-regulatory sharing of
9confidential supervisory information:
10        (1) The privacy or confidentiality of any information
11    or material provided to a multistate licensing system,
12    including all privileges arising under federal or state
13    court rules and law, shall continue to apply to the
14    information or material after the information or material
15    has been disclosed to the multistate licensing system.
16    Information and material may be shared with a multistate
17    licensing system, federal and state regulatory officials
18    with relevant oversight authority, and law enforcement
19    without the loss of privilege or the loss of
20    confidentiality protections.
21        (2) The Secretary is authorized to enter into
22    agreements or sharing arrangements with other governmental
23    agencies, the Conference of State Bank Supervisors, and
24    other associations representing governmental agencies.
25        (3) Information or material that is privileged or

 

 

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1    confidential under this Act as determined by the Secretary
2    is not subject to the following:
3            (A) disclosure under any State law governing the
4        disclosure to the public of information held by an
5        officer or an agency of the State; or
6            (B) subpoena, discovery, or admission into
7        evidence, in any private civil action or
8        administrative process except as authorized by the
9        Secretary.
10        (4) Any other law relating to the disclosure of
11    confidential supervisory information that is inconsistent
12    with this Act shall be superseded by the requirements of
13    this Section to the extent the other law provides less
14    confidentiality or a weaker privilege for information that
15    is privileged or confidential under this Act.
16        (5) Confidential or privileged information received
17    from a multistate licensing system, another licensing
18    body, federal and state regulatory officials, or law
19    enforcement shall be protected to the same extent as the
20    Secretary's confidential and privileged information is
21    protected under this Act. The Secretary may also protect
22    from disclosure confidential or privileged information
23    that would be exempt from disclosure to the extent it is
24    held directly by the multistate licensing system, another
25    licensing body, federal and state regulatory officials, or
26    law enforcement.
 

 

 

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1    Section 115. Appeal and review.
2    (a) The Secretary may, in accordance with the Illinois
3Administrative Procedure Act, adopt rules to provide for
4review within the Department of their decisions affecting the
5rights of persons under this Act. The review shall provide
6for, at a minimum:
7        (1) appointment of a hearing officer;
8        (2) appropriate procedural rules, specific deadlines
9    for filings, and standards of evidence and of proof; and
10        (3) provisions for apportioning costs among parties to
11    the appeal.
12    (b) All final agency determinations of appeals to
13decisions of the Secretary may be reviewed in accordance with
14and under the provisions of the Administrative Review Law.
15Appeals from all final orders and judgments entered by a court
16in review of any final administrative decision of the
17Secretary or of any final agency review of a decision of the
18Secretary may be taken as in other civil cases.
 
19    Section 120. Registration fees.
20    (a) The fee for initial registration is $2,500. The fee is
21nonrefundable.
22    (b) The fee for annual application renewal is $2,500. The
23fee is nonrefundable.
24    (c) The Department shall impose a contingent fee

 

 

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1sufficient to cover its operating expenses in administering
2this Act not otherwise covered by all other revenue collected
3under this Act. Each registrant shall pay to the Division its
4pro rata share, based on number or volume of transactions or
5revenue, of the cost for administration of this Act that
6exceeds other fees listed in this Section, as estimated by the
7Division, for the current year and any deficit actually
8incurred in the administration of this Act in prior years.
 
9    Section 125. Cease and desist order.
10    (a) The Secretary may issue a cease and desist order to any
11registrant or person doing business without the required
12registration when, in the opinion of the Secretary, the
13registrant or other person has violated, is violating, or is
14about to violate any provision of this Act or any rule adopted
15by the Department under this Act or any requirement imposed in
16writing by the Department as a condition of granting any
17authorization permitted by this Act. The cease and desist
18order authorized by this Section may be issued prior to a
19hearing.
20    (b) The Secretary shall serve notice of the cease and
21desist order, either personally or by certified mail. Service
22by certified mail shall be deemed completed when the notice is
23deposited in the U.S. Mail. The Secretary's notice shall
24include a statement of the reasons for the action.
25    (c) Within 10 days after service of the cease and desist

 

 

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1order, the person subject to the cease and desist order may
2request a hearing in writing. The Secretary shall schedule a
3preliminary hearing within 60 days after the request for a
4hearing unless the parties agree to a later date.
5    (d) If it is determined that the Secretary had the
6authority to issue the cease and desist order, the Secretary
7may issue the orders as may be reasonably necessary to
8correct, eliminate, deter, or remedy the conduct described in
9the order and resulting harms.
10    (e) The powers vested in the Secretary by this Section are
11additional to all other powers and remedies vested in the
12Secretary by any law. Nothing in this Section shall be
13construed as requiring that the Secretary shall employ the
14power conferred in this Section instead of or as a condition
15precedent to the exercise of any other power or remedy vested
16in the Secretary.
 
17    Section 130. Injunctions. The Secretary may maintain an
18action in the name of the people of this State and may apply
19for an injunction in the circuit court to enjoin a person from
20violating this Act or its implementing rules through the
21Attorney General.
 
22    Section 135. Exemptions. This Act does not apply to, and
23does not place any additional requirements or obligations
24upon, any of the following:

 

 

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1        (1) any person or entity that is not a provider;
2        (2) a commercial financing transaction secured by real
3    property;
4        (3) a lease as defined in Section 2-A-103 of the
5    Uniform Commercial Code, not including finance leases as
6    defined in paragraph (g) of subsection (1) of Section
7    2A-103 of the Uniform Commercial Code; or
8        (4) a company primarily in the business of
9    manufacturing equipment, or any subsidiary or affiliate of
10    such a company, when offering a commercial financing
11    transaction for which the majority of the proceeds are
12    used to finance nonfinancial products manufactured by the
13    company, or any subsidiary or affiliate of such a company,
14    or the maintenance of or other services on such products;
15        (5) any person or provider who makes no more than 5
16    commercial financing transactions in this State in a
17    12-month period;
18        (6) a single, discrete commercial financing
19    transaction in an amount over $500,000; or
20        (7) a commercial financing transaction in which the
21    recipient is a vehicle dealer subject to Section 5-101 or
22    5-102 of the Illinois Vehicle Code, an affiliate of a
23    dealer, a rental vehicle company as defined in Section 10
24    of the Renter's Financial Responsibility and Protection
25    Act, or an affiliate of a company under a commercial
26    financing agreement or commercial open-end credit plan of

 

 

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1    at least $50,000, including any commercial loan made under
2    a commercial financing transaction.
 
3    Section 140. Complaint disclosure. All commercial
4financing shall include a clear and conspicuous notice on how
5to file a complaint with the Department.
 
6    Section 145. Rules. The Secretary may adopt rules to enact
7and enforce this Act, including, but not limited to:
8        (1) rules defining the terms used in this Act and as
9    may be necessary and appropriate to interpret and
10    implement the provisions of this Act;
11        (2) rules for the enforcement and administration of
12    this Act;
13        (3) rules for the protection of consumers and
14    recipients in this State;
15        (4) rules defining improper or fraudulent business
16    practices in connection with commercial financing; and
17        (5) rules to implement Section 165.
 
18    Section 150. Violations.
19    (a) Nothing in this Act shall be construed to restrict the
20exercise of powers or the performance of the duties that the
21Attorney General is authorized to exercise or perform by law.
22    (b) Any violation of this Act constitutes an unlawful
23practice in violation of the Consumer Fraud and Deceptive

 

 

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1Business Practices Act. The Attorney General may enforce a
2violation of this Act as an unlawful practice under the
3Consumer Fraud and Deceptive Business Practices Act.
 
4    Section 152. Limitation on liability. No provision of this
5Act imposes any liability on a provider as a result of the
6actual annual percentage rate charged by a provider differing
7from the estimated annual percentage rate disclosed in
8conformity with any regulation, order, or written interpretive
9opinion of the Secretary or any such opinion of the Attorney
10General, whether or not such regulation, order, or written
11interpretive opinion is later amended, rescinded, or repealed
12or determined by judicial or other authority to be invalid for
13any reason.
 
14    Section 155. Beginning of registration. No person shall be
15required to register under this Act before the date
16established by the Department by rule. The date shall not be
17before January 1, 2025.
 
18    Section 160. Beginning of disclosure requirements. No
19person shall be required to comply with the disclosure
20requirements set forth in Sections 45, 50, 55, 60, 65, 70, and
21165 before the date established by the Department by rule. The
22date shall not be before January 1, 2025.
 

 

 

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1    Section 165. Commercial financing database.
2    (a) A commercial financing database program is established
3within the Department. The program shall be administered in
4accordance with this Section. None of the duties, obligations,
5contingencies, or consequences of or from the program shall be
6imposed until 6 months after the Department certifies a
7commercial financing database under subsection (b). The
8program shall apply to all sales-based financings and
9commercial closed-end financings for which interest charges
10that accrue on the outstanding balance represent a minority of
11the finance charge that are governed by this Act and that are
12made or taken on or after the inception of the program.
13    (b) The Department shall certify that a commercial
14financing database is a commercially reasonable method of
15reporting. Upon certifying that a commercial financing
16database is a commercially reasonable method of reporting, the
17Department shall:
18        (1) provide reasonable notice to all registrants
19    identifying the commercially reasonable method of
20    reporting that is available; and
21        (2) no earlier than 6 months after certification,
22    require each registrant offering sales-based financing or
23    commercial closed-end financings for which interest
24    charges that accrue on the outstanding balance represent a
25    minority of the finance charge to use a commercially
26    reasonable method of reporting as a means of complying

 

 

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1    with subsection (d) of this Section.
2    (c) The database created under this program shall be
3maintained and administered by the Department. The database
4shall be designed to allow providers to submit information to
5the database online. The database shall not be designed to
6allow providers to retrieve information from the database,
7except as otherwise provided in this Act.
8    (d) Within 30 days after providing funds to a recipient,
9the provider shall submit to the commercial financing database
10the information delineated in subsections (e) and (f). If at
11the time funds are provided to a recipient, certain
12information delineated in this subsection is not known, then
13the provider shall submit the information to the commercial
14financing database within 30 days after the information
15becoming ascertainable.
16    (e) For sales-based financings, the provider shall submit
17the following information to the commercial financing
18database:
19        (1) the FEIN for the recipient;
20        (2) the zip code of the recipient;
21        (3) the date on which the disclosure required under
22    Section 45 was provided;
23        (4) the origination date of the sales-based financing;
24        (5) the total amount of commercial financing;
25        (6) the disbursed amount after any amount deducted or
26    withheld at disbursement, if different than the financing

 

 

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1    amount;
2        (7) the finance charge;
3        (8) the estimated annual percentage rate as disclosed
4    to the recipient under paragraph (3) of Section 45;
5        (9) the total repayment amount;
6        (10) the estimated term, as disclosed to the recipient
7    under paragraph (5) of Section 45;
8        (11) the percentage of the recipient's sales upon
9    which the payment is calculated;
10        (12) the frequency of payment, and the total amount of
11    average projected payments per month, as disclosed to the
12    recipient under paragraph (6) of Section 45;
13        (13) whether the projected sales volume used to
14    determine the estimated annual percentage rate, estimated
15    term, and projected payments provided in the disclosure
16    under Section 45 were determined according to the
17    historical method described in subparagraph (A) of
18    paragraph (3) of Section 45 or according to the
19    underwriting method described in subparagraph (B) of
20    paragraph (3) of Section 45;
21        (14) the amount of any finance charge the recipient
22    would be required to pay if the recipient elects to pay off
23    or refinance the sales-based financing before full
24    repayment, as disclosed to the recipient;
25        (15) description of collateral, if any, securing the
26    sales-based financing, including any guarantee;

 

 

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1        (16) the position of any lien taken;
2        (17) upon full repayment, if the sales-based financing
3    includes a true-up mechanism, the number of true-ups
4    provided;
5        (18) upon full repayment, the actual term of the
6    commercial financing;
7        (19) upon full repayment, the actual annual percentage
8    rate calculated retrospectively based on the actual
9    payments collected; and
10        (20) all other information requested by the
11    Department.
12    (f) For closed-end financing for which interest charges
13that accrue on the outstanding balance represent a minority of
14the finance charge submit, the following information to the
15commercial financing database:
16        (1) the FEIN for the recipient;
17        (2) the zip code of the recipient;
18        (3) the date on which the disclosure required under
19    Section 50 was provided;
20        (4) the origination date;
21        (5) the total amount of commercial financing;
22        (6) the disbursed amount after any amount deducted or
23    withheld at disbursement, if different than the financing
24    amount;
25        (7) the finance charge;
26        (8) the annual percentage rate as disclosed to the

 

 

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1    recipient under paragraph (3) of Section 50;
2        (9) the total repayment amount;
3        (10) the term of the financing;
4        (11) the frequency of payment;
5        (12) the amount of the payment, and the total amount
6    of average projected payments per month, as disclosed to
7    the recipient under paragraph (6) of Section 50;
8        (13) the amount of any finance charge the recipient
9    would be required to pay if the recipient elects to pay off
10    or refinance the commercial financing before full
11    repayment, other than interest accrued since the last
12    payment, as disclosed to the recipient;
13        (14) whether the recipient would be required to pay
14    any additional fees not already included in the finance
15    charge if the recipient elects to pay off or refinance the
16    commercial financing before full repayment, as disclosed
17    to the recipient;
18        (15) description of collateral, if any, securing the
19    commercial financing, including any guarantee;
20        (16) the position of any lien taken; and
21        (17) all other information requested by the
22    Department.
23    (g) All personally identifiable information and
24information identifying the identity of a recipient obtained
25by way of the commercial financing database is strictly
26confidential and shall be exempt from disclosure under the

 

 

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1Freedom of Information Act and any other law or regulation
2pertaining to the disclosure of information or documents. The
3Department may, by rule, identify any additional categories of
4information the disclosure of which would be contrary to the
5public interest. Any request for production of information
6from the commercial financing database, whether by subpoena,
7notice, or any other source, shall be referred to the
8Department. Any recipient may authorize in writing the release
9of database information. The Department may use the
10information in the database without the consent of the
11recipient or the registrant:
12        (1) for the purposes of administering and enforcing
13    the program;
14        (2) to prepare industry-level reports;
15        (3) to provide information to the appropriate law
16    enforcement agency or the applicable administrative or
17    regulatory agency with a legitimate interest in the
18    information as determined by the Secretary;
19        (4) as required to comply with applicable law; or
20        (5) in any other manner that the Secretary deems is
21    not contrary to the public interest.
22    (h) A registrant who submits information to a certified
23database provider in accordance with this Section shall not be
24liable to any person for any subsequent release or disclosure
25of that information by the certified database provider, the
26Department, or any other person acquiring possession of the

 

 

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1information, regardless of whether the subsequent release or
2disclosure was lawful, authorized, or intentional.
3    (i) In certifying a commercially reasonable method of
4reporting, the Department shall ensure that the commercial
5financing database:
6        (1) provides real-time access through an Internet
7    connection;
8        (2) is accessible to the Department and to registrants
9    in order to ensure compliance with this Act and in order to
10    provide any other information that the Department deems
11    necessary;
12        (3) requires registrants to input whatever information
13    is required by the Department;
14        (4) maintains a real-time copy of the required
15    reporting information that is available to the Department
16    at all times and is the property of the Department; and
17        (5) contains safeguards to ensure that all information
18    contained in the database regarding consumers and
19    financing recipients is kept strictly confidential.
20    (j) The certified commercial financing database may charge
21a fee to a registrant not to exceed $1 for each financing
22entered into the database. The certified commercial financing
23database shall not charge any additional fees or charges.
24    (k) The certified commercial financing database provider
25shall produce an annual report for the Department using the
26data submitted by registrants to the database. The Department

 

 

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1may publish this report to the public.
 
2    Section 170. Severability. The provisions of this Act are
3severable under Section 1.31 of the Statute on Statutes.
 
4    Section 900. The Freedom of Information Act is amended by
5changing Section 7.5 as follows:
 
6    (5 ILCS 140/7.5)
7    (Text of Section before amendment by P.A. 103-472)
8    Sec. 7.5. Statutory exemptions. To the extent provided for
9by the statutes referenced below, the following shall be
10exempt from inspection and copying:
11        (a) All information determined to be confidential
12    under Section 4002 of the Technology Advancement and
13    Development Act.
14        (b) Library circulation and order records identifying
15    library users with specific materials under the Library
16    Records Confidentiality Act.
17        (c) Applications, related documents, and medical
18    records received by the Experimental Organ Transplantation
19    Procedures Board and any and all documents or other
20    records prepared by the Experimental Organ Transplantation
21    Procedures Board or its staff relating to applications it
22    has received.
23        (d) Information and records held by the Department of

 

 

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1    Public Health and its authorized representatives relating
2    to known or suspected cases of sexually transmissible
3    disease or any information the disclosure of which is
4    restricted under the Illinois Sexually Transmissible
5    Disease Control Act.
6        (e) Information the disclosure of which is exempted
7    under Section 30 of the Radon Industry Licensing Act.
8        (f) Firm performance evaluations under Section 55 of
9    the Architectural, Engineering, and Land Surveying
10    Qualifications Based Selection Act.
11        (g) Information the disclosure of which is restricted
12    and exempted under Section 50 of the Illinois Prepaid
13    Tuition Act.
14        (h) Information the disclosure of which is exempted
15    under the State Officials and Employees Ethics Act, and
16    records of any lawfully created State or local inspector
17    general's office that would be exempt if created or
18    obtained by an Executive Inspector General's office under
19    that Act.
20        (i) Information contained in a local emergency energy
21    plan submitted to a municipality in accordance with a
22    local emergency energy plan ordinance that is adopted
23    under Section 11-21.5-5 of the Illinois Municipal Code.
24        (j) Information and data concerning the distribution
25    of surcharge moneys collected and remitted by carriers
26    under the Emergency Telephone System Act.

 

 

SB2234 Engrossed- 59 -LRB103 28770 BMS 55153 b

1        (k) Law enforcement officer identification information
2    or driver identification information compiled by a law
3    enforcement agency or the Department of Transportation
4    under Section 11-212 of the Illinois Vehicle Code.
5        (l) Records and information provided to a residential
6    health care facility resident sexual assault and death
7    review team or the Executive Council under the Abuse
8    Prevention Review Team Act.
9        (m) Information provided to the predatory lending
10    database created pursuant to Article 3 of the Residential
11    Real Property Disclosure Act, except to the extent
12    authorized under that Article.
13        (n) Defense budgets and petitions for certification of
14    compensation and expenses for court appointed trial
15    counsel as provided under Sections 10 and 15 of the
16    Capital Crimes Litigation Act (repealed). This subsection
17    (n) shall apply until the conclusion of the trial of the
18    case, even if the prosecution chooses not to pursue the
19    death penalty prior to trial or sentencing.
20        (o) Information that is prohibited from being
21    disclosed under Section 4 of the Illinois Health and
22    Hazardous Substances Registry Act.
23        (p) Security portions of system safety program plans,
24    investigation reports, surveys, schedules, lists, data, or
25    information compiled, collected, or prepared by or for the
26    Department of Transportation under Sections 2705-300 and

 

 

SB2234 Engrossed- 60 -LRB103 28770 BMS 55153 b

1    2705-616 of the Department of Transportation Law of the
2    Civil Administrative Code of Illinois, the Regional
3    Transportation Authority under Section 2.11 of the
4    Regional Transportation Authority Act, or the St. Clair
5    County Transit District under the Bi-State Transit Safety
6    Act (repealed).
7        (q) Information prohibited from being disclosed by the
8    Personnel Record Review Act.
9        (r) Information prohibited from being disclosed by the
10    Illinois School Student Records Act.
11        (s) Information the disclosure of which is restricted
12    under Section 5-108 of the Public Utilities Act.
13        (t) (Blank).
14        (u) Records and information provided to an independent
15    team of experts under the Developmental Disability and
16    Mental Health Safety Act (also known as Brian's Law).
17        (v) Names and information of people who have applied
18    for or received Firearm Owner's Identification Cards under
19    the Firearm Owners Identification Card Act or applied for
20    or received a concealed carry license under the Firearm
21    Concealed Carry Act, unless otherwise authorized by the
22    Firearm Concealed Carry Act; and databases under the
23    Firearm Concealed Carry Act, records of the Concealed
24    Carry Licensing Review Board under the Firearm Concealed
25    Carry Act, and law enforcement agency objections under the
26    Firearm Concealed Carry Act.

 

 

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1        (v-5) Records of the Firearm Owner's Identification
2    Card Review Board that are exempted from disclosure under
3    Section 10 of the Firearm Owners Identification Card Act.
4        (w) Personally identifiable information which is
5    exempted from disclosure under subsection (g) of Section
6    19.1 of the Toll Highway Act.
7        (x) Information which is exempted from disclosure
8    under Section 5-1014.3 of the Counties Code or Section
9    8-11-21 of the Illinois Municipal Code.
10        (y) Confidential information under the Adult
11    Protective Services Act and its predecessor enabling
12    statute, the Elder Abuse and Neglect Act, including
13    information about the identity and administrative finding
14    against any caregiver of a verified and substantiated
15    decision of abuse, neglect, or financial exploitation of
16    an eligible adult maintained in the Registry established
17    under Section 7.5 of the Adult Protective Services Act.
18        (z) Records and information provided to a fatality
19    review team or the Illinois Fatality Review Team Advisory
20    Council under Section 15 of the Adult Protective Services
21    Act.
22        (aa) Information which is exempted from disclosure
23    under Section 2.37 of the Wildlife Code.
24        (bb) Information which is or was prohibited from
25    disclosure by the Juvenile Court Act of 1987.
26        (cc) Recordings made under the Law Enforcement

 

 

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1    Officer-Worn Body Camera Act, except to the extent
2    authorized under that Act.
3        (dd) Information that is prohibited from being
4    disclosed under Section 45 of the Condominium and Common
5    Interest Community Ombudsperson Act.
6        (ee) Information that is exempted from disclosure
7    under Section 30.1 of the Pharmacy Practice Act.
8        (ff) Information that is exempted from disclosure
9    under the Revised Uniform Unclaimed Property Act.
10        (gg) Information that is prohibited from being
11    disclosed under Section 7-603.5 of the Illinois Vehicle
12    Code.
13        (hh) Records that are exempt from disclosure under
14    Section 1A-16.7 of the Election Code.
15        (ii) Information which is exempted from disclosure
16    under Section 2505-800 of the Department of Revenue Law of
17    the Civil Administrative Code of Illinois.
18        (jj) Information and reports that are required to be
19    submitted to the Department of Labor by registering day
20    and temporary labor service agencies but are exempt from
21    disclosure under subsection (a-1) of Section 45 of the Day
22    and Temporary Labor Services Act.
23        (kk) Information prohibited from disclosure under the
24    Seizure and Forfeiture Reporting Act.
25        (ll) Information the disclosure of which is restricted
26    and exempted under Section 5-30.8 of the Illinois Public

 

 

SB2234 Engrossed- 63 -LRB103 28770 BMS 55153 b

1    Aid Code.
2        (mm) Records that are exempt from disclosure under
3    Section 4.2 of the Crime Victims Compensation Act.
4        (nn) Information that is exempt from disclosure under
5    Section 70 of the Higher Education Student Assistance Act.
6        (oo) Communications, notes, records, and reports
7    arising out of a peer support counseling session
8    prohibited from disclosure under the First Responders
9    Suicide Prevention Act.
10        (pp) Names and all identifying information relating to
11    an employee of an emergency services provider or law
12    enforcement agency under the First Responders Suicide
13    Prevention Act.
14        (qq) Information and records held by the Department of
15    Public Health and its authorized representatives collected
16    under the Reproductive Health Act.
17        (rr) Information that is exempt from disclosure under
18    the Cannabis Regulation and Tax Act.
19        (ss) Data reported by an employer to the Department of
20    Human Rights pursuant to Section 2-108 of the Illinois
21    Human Rights Act.
22        (tt) Recordings made under the Children's Advocacy
23    Center Act, except to the extent authorized under that
24    Act.
25        (uu) Information that is exempt from disclosure under
26    Section 50 of the Sexual Assault Evidence Submission Act.

 

 

SB2234 Engrossed- 64 -LRB103 28770 BMS 55153 b

1        (vv) Information that is exempt from disclosure under
2    subsections (f) and (j) of Section 5-36 of the Illinois
3    Public Aid Code.
4        (ww) Information that is exempt from disclosure under
5    Section 16.8 of the State Treasurer Act.
6        (xx) Information that is exempt from disclosure or
7    information that shall not be made public under the
8    Illinois Insurance Code.
9        (yy) Information prohibited from being disclosed under
10    the Illinois Educational Labor Relations Act.
11        (zz) Information prohibited from being disclosed under
12    the Illinois Public Labor Relations Act.
13        (aaa) Information prohibited from being disclosed
14    under Section 1-167 of the Illinois Pension Code.
15        (bbb) Information that is prohibited from disclosure
16    by the Illinois Police Training Act and the Illinois State
17    Police Act.
18        (ccc) Records exempt from disclosure under Section
19    2605-304 of the Illinois State Police Law of the Civil
20    Administrative Code of Illinois.
21        (ddd) Information prohibited from being disclosed
22    under Section 35 of the Address Confidentiality for
23    Victims of Domestic Violence, Sexual Assault, Human
24    Trafficking, or Stalking Act.
25        (eee) Information prohibited from being disclosed
26    under subsection (b) of Section 75 of the Domestic

 

 

SB2234 Engrossed- 65 -LRB103 28770 BMS 55153 b

1    Violence Fatality Review Act.
2        (fff) Images from cameras under the Expressway Camera
3    Act. This subsection (fff) is inoperative on and after
4    July 1, 2025.
5        (ggg) Information prohibited from disclosure under
6    paragraph (3) of subsection (a) of Section 14 of the Nurse
7    Agency Licensing Act.
8        (hhh) Information submitted to the Illinois State
9    Police in an affidavit or application for an assault
10    weapon endorsement, assault weapon attachment endorsement,
11    .50 caliber rifle endorsement, or .50 caliber cartridge
12    endorsement under the Firearm Owners Identification Card
13    Act.
14        (iii) Data exempt from disclosure under Section 50 of
15    the School Safety Drill Act.
16        (jjj) (hhh) Information exempt from disclosure under
17    Section 30 of the Insurance Data Security Law.
18        (kkk) (iii) Confidential business information
19    prohibited from disclosure under Section 45 of the Paint
20    Stewardship Act.
21        (lll) (Reserved).
22        (mmm) (iii) Information prohibited from being
23    disclosed under subsection (e) of Section 1-129 of the
24    Illinois Power Agency Act.
25        (nnn) Information exempt from disclosure under Section
26    165 of the Small Business Financing Transparency Act.

 

 

SB2234 Engrossed- 66 -LRB103 28770 BMS 55153 b

1(Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22;
2102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.
38-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;
4102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.
56-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,
6eff. 1-1-24; 103-508, eff. 8-4-23; 103-580, eff. 12-8-23;
7revised 1-2-24.)
 
8    (Text of Section after amendment by P.A. 103-472)
9    Sec. 7.5. Statutory exemptions. To the extent provided for
10by the statutes referenced below, the following shall be
11exempt from inspection and copying:
12        (a) All information determined to be confidential
13    under Section 4002 of the Technology Advancement and
14    Development Act.
15        (b) Library circulation and order records identifying
16    library users with specific materials under the Library
17    Records Confidentiality Act.
18        (c) Applications, related documents, and medical
19    records received by the Experimental Organ Transplantation
20    Procedures Board and any and all documents or other
21    records prepared by the Experimental Organ Transplantation
22    Procedures Board or its staff relating to applications it
23    has received.
24        (d) Information and records held by the Department of
25    Public Health and its authorized representatives relating

 

 

SB2234 Engrossed- 67 -LRB103 28770 BMS 55153 b

1    to known or suspected cases of sexually transmissible
2    disease or any information the disclosure of which is
3    restricted under the Illinois Sexually Transmissible
4    Disease Control Act.
5        (e) Information the disclosure of which is exempted
6    under Section 30 of the Radon Industry Licensing Act.
7        (f) Firm performance evaluations under Section 55 of
8    the Architectural, Engineering, and Land Surveying
9    Qualifications Based Selection Act.
10        (g) Information the disclosure of which is restricted
11    and exempted under Section 50 of the Illinois Prepaid
12    Tuition Act.
13        (h) Information the disclosure of which is exempted
14    under the State Officials and Employees Ethics Act, and
15    records of any lawfully created State or local inspector
16    general's office that would be exempt if created or
17    obtained by an Executive Inspector General's office under
18    that Act.
19        (i) Information contained in a local emergency energy
20    plan submitted to a municipality in accordance with a
21    local emergency energy plan ordinance that is adopted
22    under Section 11-21.5-5 of the Illinois Municipal Code.
23        (j) Information and data concerning the distribution
24    of surcharge moneys collected and remitted by carriers
25    under the Emergency Telephone System Act.
26        (k) Law enforcement officer identification information

 

 

SB2234 Engrossed- 68 -LRB103 28770 BMS 55153 b

1    or driver identification information compiled by a law
2    enforcement agency or the Department of Transportation
3    under Section 11-212 of the Illinois Vehicle Code.
4        (l) Records and information provided to a residential
5    health care facility resident sexual assault and death
6    review team or the Executive Council under the Abuse
7    Prevention Review Team Act.
8        (m) Information provided to the predatory lending
9    database created pursuant to Article 3 of the Residential
10    Real Property Disclosure Act, except to the extent
11    authorized under that Article.
12        (n) Defense budgets and petitions for certification of
13    compensation and expenses for court appointed trial
14    counsel as provided under Sections 10 and 15 of the
15    Capital Crimes Litigation Act (repealed). This subsection
16    (n) shall apply until the conclusion of the trial of the
17    case, even if the prosecution chooses not to pursue the
18    death penalty prior to trial or sentencing.
19        (o) Information that is prohibited from being
20    disclosed under Section 4 of the Illinois Health and
21    Hazardous Substances Registry Act.
22        (p) Security portions of system safety program plans,
23    investigation reports, surveys, schedules, lists, data, or
24    information compiled, collected, or prepared by or for the
25    Department of Transportation under Sections 2705-300 and
26    2705-616 of the Department of Transportation Law of the

 

 

SB2234 Engrossed- 69 -LRB103 28770 BMS 55153 b

1    Civil Administrative Code of Illinois, the Regional
2    Transportation Authority under Section 2.11 of the
3    Regional Transportation Authority Act, or the St. Clair
4    County Transit District under the Bi-State Transit Safety
5    Act (repealed).
6        (q) Information prohibited from being disclosed by the
7    Personnel Record Review Act.
8        (r) Information prohibited from being disclosed by the
9    Illinois School Student Records Act.
10        (s) Information the disclosure of which is restricted
11    under Section 5-108 of the Public Utilities Act.
12        (t) (Blank).
13        (u) Records and information provided to an independent
14    team of experts under the Developmental Disability and
15    Mental Health Safety Act (also known as Brian's Law).
16        (v) Names and information of people who have applied
17    for or received Firearm Owner's Identification Cards under
18    the Firearm Owners Identification Card Act or applied for
19    or received a concealed carry license under the Firearm
20    Concealed Carry Act, unless otherwise authorized by the
21    Firearm Concealed Carry Act; and databases under the
22    Firearm Concealed Carry Act, records of the Concealed
23    Carry Licensing Review Board under the Firearm Concealed
24    Carry Act, and law enforcement agency objections under the
25    Firearm Concealed Carry Act.
26        (v-5) Records of the Firearm Owner's Identification

 

 

SB2234 Engrossed- 70 -LRB103 28770 BMS 55153 b

1    Card Review Board that are exempted from disclosure under
2    Section 10 of the Firearm Owners Identification Card Act.
3        (w) Personally identifiable information which is
4    exempted from disclosure under subsection (g) of Section
5    19.1 of the Toll Highway Act.
6        (x) Information which is exempted from disclosure
7    under Section 5-1014.3 of the Counties Code or Section
8    8-11-21 of the Illinois Municipal Code.
9        (y) Confidential information under the Adult
10    Protective Services Act and its predecessor enabling
11    statute, the Elder Abuse and Neglect Act, including
12    information about the identity and administrative finding
13    against any caregiver of a verified and substantiated
14    decision of abuse, neglect, or financial exploitation of
15    an eligible adult maintained in the Registry established
16    under Section 7.5 of the Adult Protective Services Act.
17        (z) Records and information provided to a fatality
18    review team or the Illinois Fatality Review Team Advisory
19    Council under Section 15 of the Adult Protective Services
20    Act.
21        (aa) Information which is exempted from disclosure
22    under Section 2.37 of the Wildlife Code.
23        (bb) Information which is or was prohibited from
24    disclosure by the Juvenile Court Act of 1987.
25        (cc) Recordings made under the Law Enforcement
26    Officer-Worn Body Camera Act, except to the extent

 

 

SB2234 Engrossed- 71 -LRB103 28770 BMS 55153 b

1    authorized under that Act.
2        (dd) Information that is prohibited from being
3    disclosed under Section 45 of the Condominium and Common
4    Interest Community Ombudsperson Act.
5        (ee) Information that is exempted from disclosure
6    under Section 30.1 of the Pharmacy Practice Act.
7        (ff) Information that is exempted from disclosure
8    under the Revised Uniform Unclaimed Property Act.
9        (gg) Information that is prohibited from being
10    disclosed under Section 7-603.5 of the Illinois Vehicle
11    Code.
12        (hh) Records that are exempt from disclosure under
13    Section 1A-16.7 of the Election Code.
14        (ii) Information which is exempted from disclosure
15    under Section 2505-800 of the Department of Revenue Law of
16    the Civil Administrative Code of Illinois.
17        (jj) Information and reports that are required to be
18    submitted to the Department of Labor by registering day
19    and temporary labor service agencies but are exempt from
20    disclosure under subsection (a-1) of Section 45 of the Day
21    and Temporary Labor Services Act.
22        (kk) Information prohibited from disclosure under the
23    Seizure and Forfeiture Reporting Act.
24        (ll) Information the disclosure of which is restricted
25    and exempted under Section 5-30.8 of the Illinois Public
26    Aid Code.

 

 

SB2234 Engrossed- 72 -LRB103 28770 BMS 55153 b

1        (mm) Records that are exempt from disclosure under
2    Section 4.2 of the Crime Victims Compensation Act.
3        (nn) Information that is exempt from disclosure under
4    Section 70 of the Higher Education Student Assistance Act.
5        (oo) Communications, notes, records, and reports
6    arising out of a peer support counseling session
7    prohibited from disclosure under the First Responders
8    Suicide Prevention Act.
9        (pp) Names and all identifying information relating to
10    an employee of an emergency services provider or law
11    enforcement agency under the First Responders Suicide
12    Prevention Act.
13        (qq) Information and records held by the Department of
14    Public Health and its authorized representatives collected
15    under the Reproductive Health Act.
16        (rr) Information that is exempt from disclosure under
17    the Cannabis Regulation and Tax Act.
18        (ss) Data reported by an employer to the Department of
19    Human Rights pursuant to Section 2-108 of the Illinois
20    Human Rights Act.
21        (tt) Recordings made under the Children's Advocacy
22    Center Act, except to the extent authorized under that
23    Act.
24        (uu) Information that is exempt from disclosure under
25    Section 50 of the Sexual Assault Evidence Submission Act.
26        (vv) Information that is exempt from disclosure under

 

 

SB2234 Engrossed- 73 -LRB103 28770 BMS 55153 b

1    subsections (f) and (j) of Section 5-36 of the Illinois
2    Public Aid Code.
3        (ww) Information that is exempt from disclosure under
4    Section 16.8 of the State Treasurer Act.
5        (xx) Information that is exempt from disclosure or
6    information that shall not be made public under the
7    Illinois Insurance Code.
8        (yy) Information prohibited from being disclosed under
9    the Illinois Educational Labor Relations Act.
10        (zz) Information prohibited from being disclosed under
11    the Illinois Public Labor Relations Act.
12        (aaa) Information prohibited from being disclosed
13    under Section 1-167 of the Illinois Pension Code.
14        (bbb) Information that is prohibited from disclosure
15    by the Illinois Police Training Act and the Illinois State
16    Police Act.
17        (ccc) Records exempt from disclosure under Section
18    2605-304 of the Illinois State Police Law of the Civil
19    Administrative Code of Illinois.
20        (ddd) Information prohibited from being disclosed
21    under Section 35 of the Address Confidentiality for
22    Victims of Domestic Violence, Sexual Assault, Human
23    Trafficking, or Stalking Act.
24        (eee) Information prohibited from being disclosed
25    under subsection (b) of Section 75 of the Domestic
26    Violence Fatality Review Act.

 

 

SB2234 Engrossed- 74 -LRB103 28770 BMS 55153 b

1        (fff) Images from cameras under the Expressway Camera
2    Act. This subsection (fff) is inoperative on and after
3    July 1, 2025.
4        (ggg) Information prohibited from disclosure under
5    paragraph (3) of subsection (a) of Section 14 of the Nurse
6    Agency Licensing Act.
7        (hhh) Information submitted to the Illinois State
8    Police in an affidavit or application for an assault
9    weapon endorsement, assault weapon attachment endorsement,
10    .50 caliber rifle endorsement, or .50 caliber cartridge
11    endorsement under the Firearm Owners Identification Card
12    Act.
13        (iii) Data exempt from disclosure under Section 50 of
14    the School Safety Drill Act.
15        (jjj) (hhh) Information exempt from disclosure under
16    Section 30 of the Insurance Data Security Law.
17        (kkk) (iii) Confidential business information
18    prohibited from disclosure under Section 45 of the Paint
19    Stewardship Act.
20        (lll) (iii) Data exempt from disclosure under Section
21    2-3.196 of the School Code.
22        (mmm) (iii) Information prohibited from being
23    disclosed under subsection (e) of Section 1-129 of the
24    Illinois Power Agency Act.
25        (nnn) Information exempt from disclosure under Section
26    165 of the Small Business Financing Transparency Act.

 

 

SB2234 Engrossed- 75 -LRB103 28770 BMS 55153 b

1(Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22;
2102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.
38-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;
4102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.
56-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,
6eff. 1-1-24; 103-472, eff. 8-1-24; 103-508, eff. 8-4-23;
7103-580, eff. 12-8-23; revised 1-2-24.)
 
8    Section 905. The Consumer Fraud and Deceptive Business
9Practices Act is amended by adding Section 2EEEE as follows:
 
10    (815 ILCS 505/2EEEE new)
11    Sec. 2EEEE. Violations of the Small Business Financing
12Transparency Act. Any person who violates the Small Business
13Financing Transparency Act commits an unlawful practice within
14the meaning of this Act.
 
15    Section 995. No acceleration or delay. Where this Act
16makes changes in a statute that is represented in this Act by
17text that is not yet or no longer in effect (for example, a
18Section represented by multiple versions), the use of that
19text does not accelerate or delay the taking effect of (i) the
20changes made by this Act or (ii) provisions derived from any
21other Public Act.
 
22    Section 999. Effective date. This Act takes effect upon
23becoming law.