Rep. John A. Fritchey

Filed: 2/17/2010

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 4854

2     AMENDMENT NO. ______. Amend House Bill 4854, AS AMENDED, by
3 replacing everything after the enacting clause with the
4 following:
 
5     "Section 5. The Pawnbroker Regulation Act is amended by
6 changing Sections 0.05, 6, and 7.5 and by adding Section 15 as
7 follows:
 
8     (205 ILCS 510/0.05)
9     Sec. 0.05. Administration of Act.
10     (a) This Act shall be administered by the Secretary of
11 Financial and Professional Regulation Commissioner of Banks
12 and Real Estate who shall have all of the following powers and
13 duties in administering this Act:
14         (1) To promulgate reasonable rules for the purpose of
15     administering the provisions of this Act.
16         (2) To issue orders for the purpose of administering

 

 

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1     the provisions of this Act and any rule promulgated in
2     accordance with this Act.
3         (3) To appoint hearing officers and to hire employees
4     or to contract with appropriate persons to execute any of
5     the powers granted to the Secretary Commissioner under this
6     Section for the purpose of administering this Act and any
7     rule promulgated in accordance with this Act.
8         (4) To subpoena witnesses, to compel their attendance,
9     to administer an oath, to examine any person under oath,
10     and to require the production of any relevant books,
11     papers, accounts, and documents in the course of and
12     pursuant to any investigation being conducted, or any
13     action being taken, by the Secretary Commissioner in
14     respect of any matter relating to the duties imposed upon,
15     or the powers vested in, the Secretary Commissioner under
16     the provisions of this Act or any rule promulgated in
17     accordance with this Act.
18         (5) To conduct hearings.
19         (6) To impose civil penalties graduated up to $1,000
20     against any person for each violation of any provision of
21     this Act, any rule promulgated in accordance with this Act,
22     or any order of the Secretary Commissioner based upon the
23     seriousness of the violation.
24         (6.5) To initiate, through the Attorney General,
25     injunction proceedings whenever it appears to the
26     Secretary Commissioner that any person, whether licensed

 

 

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1     under this Act or not, is engaged or about to engage in an
2     act or practice that constitutes or will constitute a
3     violation of this Act or any rule prescribed under the
4     authority of this Act. The Secretary Commissioner may, in
5     his or her discretion, through the Attorney General, apply
6     for an injunction, and upon a proper showing, any circuit
7     court may enter a permanent or preliminary injunction or a
8     temporary restraining order without bond to enforce this
9     Act in addition to the penalties and other remedies
10     provided for in this Act.
11         (7) To issue a cease and desist order and, for
12     violations of this Act, any order issued by the Secretary
13     Commissioner pursuant to this Act, any rule promulgated in
14     accordance with this Act, or any other applicable law in
15     connection with the operation of a pawnshop, to suspend a
16     license issued under this Act for up to 30 days.
17         (8) To determine compliance with applicable law and
18     rules related to the operation of pawnshops and to verify
19     the accuracy of reports filed with the Secretary
20     Commissioner, the Secretary Commissioner, not more than
21     one time every 2 years, may, but is not required to,
22     conduct a routine examination of a pawnshop, and in
23     addition, the Secretary Commissioner may examine the
24     affairs of any pawnshop at any time if the Secretary
25     Commissioner has reasonable cause to believe that unlawful
26     or fraudulent activity is occurring, or has occurred,

 

 

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1     therein.
2         (9) In response to a complaint, to address any
3     inquiries to any pawnshop in relation to its affairs, and
4     it shall be the duty of the pawnshop to promptly reply in
5     writing to such inquiries. The Secretary Commissioner may
6     also require reports or information from any pawnshop at
7     any time the Secretary Commissioner may deem desirable.
8         (10) To revoke a license issued under this Act if the
9     Secretary Commissioner determines that (a) a licensee has
10     been convicted of a felony in connection with the
11     operations of a pawnshop; (b) a licensee knowingly,
12     recklessly, or continuously violated this Act, a rule
13     promulgated in accordance with this Act, or any order of
14     the Secretary Commissioner; (c) a fact or condition exists
15     that, if it had existed or had been known at the time of
16     the original application, would have justified license
17     refusal; or (d) the licensee knowingly submits materially
18     false or misleading documents with the intent to deceive
19     the Secretary Commissioner or any other party.
20         (11) Following license revocation, to take possession
21     and control of a pawnshop for the purpose of examination,
22     reorganization, or liquidation through receivership and to
23     appoint a receiver, which may be the Secretary
24     Commissioner, a pawnshop, or another suitable person.
25     (b) After consultation with local law enforcement
26 officers, the Attorney General, and the industry, the Secretary

 

 

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1 Commissioner may by rule require that pawnbrokers operate video
2 camera surveillance systems to record photographic
3 representations of customers and retain the tapes produced for
4 up to 30 days.
5     (c) Pursuant to rule, the Secretary Commissioner shall
6 issue licenses on an annual or multi-year basis for operating a
7 pawnshop. Any person currently operating or who has operated a
8 pawnshop in this State during the 2 years preceding the
9 effective date of this amendatory Act of 1997 shall be issued a
10 license upon payment of the fee required under this Act. New
11 applicants shall meet standards for a license as established by
12 the Secretary Commissioner. Except with the prior written
13 consent of the Secretary Commissioner, no individual, either a
14 new applicant or a person currently operating a pawnshop, may
15 be issued a license to operate a pawnshop if the individual has
16 been convicted of a felony or of any criminal offense relating
17 to dishonesty or breach of trust in connection with the
18 operations of a pawnshop. The Secretary Commissioner shall
19 establish license fees. The fees shall not exceed the amount
20 reasonably required for administration of this Act. It shall be
21 unlawful to operate a pawnshop without a license issued by the
22 Secretary Commissioner.
23     (d) In addition to license fees, the Secretary Commissioner
24 may, by rule, establish fees in connection with a review,
25 approval, or provision of a service, and levy a reasonable
26 charge to recover the cost of the review, approval, or service

 

 

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1 (such as a change in control, change in location, or renewal of
2 a license). The Secretary Commissioner may also levy a
3 reasonable charge to recover the cost of an examination if the
4 Secretary Commissioner determines that unlawful or fraudulent
5 activity has occurred. The Secretary Commissioner may require
6 payment of the fees and charges provided in this Act by
7 certified check, money order, an electronic transfer of funds,
8 or an automatic debit of an account.
9     (e) The Pawnbroker Regulation Fund is established as a
10 special fund in the State treasury. Moneys collected under this
11 Act shall be deposited into the Fund and used for the
12 administration of this Act. In the event that General Revenue
13 Funds are appropriated to the Department of Financial and
14 Professional Regulation Office of the Commissioner of Banks and
15 Real Estate for the initial implementation of this Act, the
16 Governor may direct the repayment from the Pawnbroker
17 Regulation Fund to the General Revenue Fund of such advance in
18 an amount not to exceed $30,000. The Governor may direct this
19 interfund transfer at such time as he deems appropriate by
20 giving appropriate written notice. Moneys in the Pawnbroker
21 Regulation Fund may be transferred to the Professions Indirect
22 Cost Fund, as authorized under Section 2105-300 of the
23 Department of Professional Regulation Law of the Civil
24 Administrative Code of Illinois.
25     (f) The Secretary Commissioner may, by rule, require all
26 pawnshops to provide for the expenses that would arise from the

 

 

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1 administration of the receivership of a pawnshop under this Act
2 through the assessment of fees, the requirement to pledge
3 surety bonds, or such other methods as determined by the
4 Secretary Commissioner.
5     (g) All final administrative decisions of the Secretary
6 Commissioner under this Act shall be subject to judicial review
7 pursuant to the provisions of the Administrative Review Law.
8 For matters involving administrative review, venue shall be in
9 either Sangamon County or Cook County.
10 (Source: P.A. 94-91, eff. 7-1-05.)
 
11     (205 ILCS 510/5)  (from Ch. 17, par. 4655)
12     Sec. 5. Record requirements.
13     (a) Except in municipalities located in counties having
14 3,000,000 or more inhabitants, every pawn and loan broker shall
15 keep a standard record book that has been approved by the
16 sheriff of the county in which the pawnbroker does business. In
17 municipalities in counties with 3,000,000 or more inhabitants,
18 the record book shall be approved by the police department of
19 the municipality in which the pawn or loan broker does
20 business. At the time of each and every loan or taking of a
21 pledge, an accurate account and description, in the English
22 language, of all the goods, articles and other things pawned or
23 pledged, the amount of money, value or thing loaned thereon,
24 the time of pledging the same, the rate of interest to be paid
25 on such loan, and the name and residence of the person making

 

 

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1 such pawn or pledge shall be printed, typed, or written in ink
2 in the record book. Such entry shall include the serial number
3 or identification number of items received which bear such
4 number. Except for items purchased from dealers possessing a
5 federal employee identification number who have provided a
6 receipt to the pawnbroker, every pawnbroker shall also record
7 in his book, an accurate account and description, in the
8 English language, of all goods, articles and other things
9 purchased or received for the purpose of resale or loan
10 collateral by the pawnbroker from any source, not in the course
11 of a pledge or loan, the time of such purchase or receipt and
12 the name and address of the person or business which sold or
13 delivered such goods, articles, or other things to the
14 pawnbroker. No entry in such book shall be erased, mutilated or
15 changed.
16     (b) Every pawnbroker shall require identification to be
17 shown him by each person pledging or pawning any goods,
18 articles or other things to the pawnbroker. If the
19 identification shown is a driver's license or a State
20 identification card issued by the Secretary of State and
21 contains a photograph of the person being identified, only one
22 form of identification must be shown. If the identification
23 shown is not a driver's license or a State identification card
24 issued by the Secretary of State and does not contain a
25 photograph, 2 forms of identification must be shown, and one of
26 the 2 forms of identification must include his or her residence

 

 

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1 address. These forms of identification shall include, but not
2 be limited to, any of the following: driver's license, social
3 security card, utility bill, employee or student
4 identification card, credit card, or a civic, union or
5 professional association membership card. In addition, in a
6 municipality with a population of 1,000,000 or more
7 inhabitants, if the customer does not have an identification
8 issued by a governmental entity containing a photograph of the
9 person being identified, the pawnbroker shall photograph the
10 customer in color and record the customer's name, residence
11 address, date of birth, social security number, gender, height,
12 and weight on the reverse side of the photograph. If the
13 customer has no social security number, the pawnbroker shall
14 record this fact.
15     A county or municipality, including a home rule unit, may
16 regulate a pawnbroker's identification requirements for
17 persons pledging or pawning goods, articles, or other things to
18 the pawnbroker in a manner that is not less restrictive than
19 the regulation by the State of a pawnbroker's identification
20 requirements for persons pledging or pawning goods, articles,
21 or other things. A home rule unit may not regulate a
22 pawnbroker's identification requirements for persons pledging
23 or pawning goods, articles, or other things to the pawnbroker
24 in a manner less restrictive than the regulation by the State
25 of a pawnbroker's identification requirements for persons
26 pledging or pawning goods, articles, or other things. This

 

 

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1 Section is a limitation under subsection (i) of Section 6 of
2 Article VII of the Illinois Constitution on the concurrent
3 exercise by home rule units of the powers and functions
4 exercised by the State.
5     (c) A pawnbroker may maintain the records required by
6 subsection (a) in computer form if the computer form has been
7 approved by the Commissioner, the sheriff of the county in
8 which the shop is located, and the police department of the
9 municipality in which the shop is located.
10     (d) Records, including reports to the Secretary
11 Commissioner, maintained by pawnbrokers shall be confidential,
12 and no disclosure of pawnbroker records shall be made except
13 disclosures authorized by this Act or ordered by a court of
14 competent jurisdiction. No record transferred to a
15 governmental official shall be improperly disclosed, provided
16 that use of those records as evidence of a felony or
17 misdemeanor shall be a proper purpose.
18     (e) Pawnbrokers and their associations may lawfully give
19 appropriate governmental agencies computer equipment for the
20 purpose of transferring information pursuant to this Act.
21 (Source: P.A. 91-608, eff. 8-19-99; 92-215, eff. 8-2-01.)
 
22     (205 ILCS 510/6)  (from Ch. 17, par. 4656)
23     Sec. 6. Inspection of records.
24     (a) The book or computer records, as well as every article
25 or other thing of value so pawned or pledged, shall at all

 

 

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1 times be open to the inspection of the Secretary Commissioner,
2 the sheriff of the county, his deputies, or any members of the
3 police force of any city in the county in which such pawnbroker
4 does business. In addition, the Secretary Commissioner shall be
5 authorized to inspect the books or records of any business he
6 or she has reasonable cause to believe is conducting pawn
7 transactions and should be licensed under this Act.
8     (b) The book or computer records, pawn tickets, or any
9 other records required by the Secretary Commissioner under this
10 Act or any rule promulgated in accordance with this Act shall
11 be maintained for a period of 3 years after the date on which
12 the record or ticket was prepared. These records and tickets
13 shall be open to inspection of the Secretary Commissioner at
14 all times during the 3-year period.
15 (Source: P.A. 92-215, eff. 8-2-01.)
 
16     (205 ILCS 510/7.5)
17     Sec. 7.5. Report to the Secretary Commissioner. The
18 Secretary Commissioner, as often as the Secretary Commissioner
19 shall deem necessary or proper, may require a pawnshop to
20 submit a full and detailed report of its operations including,
21 but not limited to, the number of pawns made, the amount
22 financed on pawn transactions, and the number and amount of
23 pawns surrendered to law enforcement.
24     The Secretary Commissioner shall prescribe the form of the
25 report and establish the date by which the report must be

 

 

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1 filed.
2 (Source: P.A. 90-477, eff. 7-1-98; 90-602, eff. 7-1-98.)
 
3     (205 ILCS 510/15 new)
4     Sec. 15. Temporary buying locations; unregistered buyers.
5     (a) For purposes of this Section:
6     "Temporary buying location" means a location used by an
7 unregistered buyer, including, but not limited to, hotels and
8 motels.
9     "Unregistered buyer" means an individual business, or an
10 agent of an individual business, engaged in the business of
11 purchasing from the public, scrap precious metals, including,
12 but not limited to, jewelry, precious stones, semi-precious
13 stones, coins, silver, gold, and platinum, that conducts
14 transactions at a temporary buying location but is not
15 registered under this Act.
16     (b) An unregistered buyer that seeks to conduct business at
17 a temporary buying location in this State must comply with all
18 of the following:
19         (1) An unregistered buyer must register with the
20     sheriff of the county at least 30 days prior to its
21     intention to conduct transactions in that county.
22         (2) An unregistered buyer must submit by 6 a.m. each
23     day to the sheriff of the county in which he or she is
24     located detailed transaction records for the previous day,
25     which must include purchaser, seller, and inventory

 

 

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1     information pursuant to subsection (b) of Section 5 of this
2     Act.
3         (3) An unregistered buyer must pay a registration fee
4     to the sheriff of the county in which it seeks to conduct
5     business. This fee shall be used to defray the cost of
6     reviewing the records required under this Section and may
7     be apportioned as the sheriff sees fit.
8     (c) The Department of Financial and Professional
9 Regulation may adopt rules necessary for administration of this
10 Section, which must include a fee schedule for counties to
11 follow.
 
12     Section 99. Effective date. This Act takes effect upon
13 becoming law.".