Illinois General Assembly - Full Text of HB1100
Illinois General Assembly

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Full Text of HB1100  94th General Assembly


Rep. David E. Miller

Filed: 4/6/2005





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2     AMENDMENT NO. ______. Amend House Bill 1100, AS AMENDED, by
3 replacing everything after the enacting clause with the
4 following:
"Article 1. General Provisions

6     Section 1-1. Short title. This Act may be cited as the
7 Payday Loan Reform Act.
8     Section 1-5. Purpose and construction. The purpose of this
9 Act is to protect consumers who enter into payday loans and to
10 regulate the lenders of payday loans. This Act shall be
11 construed as a consumer protection law for all purposes. This
12 Act shall be liberally construed to effectuate its purpose.
13     Section 1-10. Definitions. As used in this Act:
14     "Check" means a "negotiable instrument", as defined in
15 Article 3 of the Uniform Commercial Code, that is drawn on a
16 financial institution.
17     "Commercially reasonable method of verification" means a
18 consumer reporting service certified by the Division as
19 effective in verifying that a proposed loan agreement is
20 permissible under this Act, or, in the absence of the
21 Division's certification, any reasonably reliable written
22 verification by the consumer concerning (i) whether the



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1 consumer has any outstanding payday loans, (ii) the principal
2 amount of those outstanding payday loans, and (iii) whether any
3 payday loans have been paid in full by the consumer in the
4 preceding 7 days.
5     "Consumer" means any natural person who, singly or jointly
6 with another consumer, enters into a loan.
7     "Division" means the Division of Financial Institutions of
8 the Department of Financial and Professional Regulation.
9     "Director" means the Director of the Division of Financial
10 Institutions of the Department of Financial and Professional
11 Regulation.
12     "Gross monthly income" means monthly income as
13 demonstrated by official documentation of the income,
14 including, but not limited to, a pay stub or a receipt
15 reflecting payment of government benefits, for the period 30
16 days prior to the date on which the loan is made.
17     "Lender" and "licensee" mean any person or entity,
18 including any affiliate or subsidiary of a lender or licensee,
19 that offers or makes a payday loan, buys a whole or partial
20 interest in a payday loan, arranges a payday loan for a third
21 party, or acts as an agent for a third party in making a payday
22 loan, regardless of whether approval, acceptance, or
23 ratification by the third party is necessary to create a legal
24 obligation for the third party, and includes any other person
25 or entity if the Division determines that the person or entity
26 is engaged in a transaction that is in substance a disguised
27 payday loan or a subterfuge for the purpose of avoiding this
28 Act.
29     "Loan agreement" means a written agreement between a lender
30 and consumer to make a loan to the consumer, regardless of
31 whether any loan proceeds are actually paid to the consumer on
32 the date on which the loan agreement is made.
33     "Member of the military" means a person serving in the
34 armed forces of the United States, the Illinois National Guard,



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1 or any reserve component of the armed forces of the United
2 States. "Member of the military" includes those persons engaged
3 in (i) active duty, (ii) training or education under the
4 supervision of the United States preliminary to induction into
5 military service, or (iii) a period of active duty with the
6 State of Illinois under Title 10 or Title 32 of the United
7 States Code pursuant to order of the President or the Governor
8 of the State of Illinois.
9     "Outstanding balance" means the total amount owed by the
10 consumer on a loan to a lender, including all principal,
11 finance charges, fees, and charges of every kind.
12     "Payday loan" or "loan" means a loan with a finance charge
13 exceeding an annual percentage rate of 36% and with a term that
14 does not exceed 120 days, including any transaction conducted
15 via any medium whatsoever, including, but not limited to,
16 paper, facsimile, Internet, or telephone, in which:
17         (1) A lender accepts one or more checks dated on the
18     date written and agrees to hold them for a period of days
19     before deposit or presentment, or accepts one or more
20     checks dated subsequent to the date written and agrees to
21     hold them for deposit; or
22         (2) A lender accepts one or more authorizations to
23     debit a consumer's bank account; or
24         (3) A lender accepts an interest in a consumer's wages,
25     including, but not limited to, a wage assignment.
26     "Principal amount" means the amount received by the
27 consumer from the lender due and owing on a loan, excluding any
28 finance charges, interest, fees, or other loan-related
29 charges.
30     "Rollover" means to refinance, renew, amend, or extend a
31 loan beyond its original term.
32     Section 1-15. Applicability.
33     (a) Except as otherwise provided in this Section, this Act



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1 applies to any lender that offers or makes a payday loan to a
2 consumer in Illinois.
3     (b) The provisions of this Act apply to any person or
4 entity that seeks to evade its applicability by any device,
5 subterfuge, or pretense whatsoever.
6     (c) Retail sellers who cash checks incidental to a retail
7 sale and who charge no more than the fees as provided by the
8 Check Cashing Act per check for the service are exempt from the
9 provisions of this Act.
10     (d) Banks, savings banks, savings and loan associations,
11 credit unions, and insurance companies organized, chartered,
12 or holding a certificate of authority to do business under the
13 laws of this State or any other state or under the laws of the
14 United States are exempt from the provisions of this Act.
15     (e) A lender, as defined in Section 1-10, that is an agent
16 for a bank, savings bank, savings and loan association, credit
17 union, or insurance company for the purpose of brokering,
18 selling, or otherwise offering payday loans made by the bank,
19 savings bank, savings and loan association, credit union, or
20 insurance company shall be subject to all of the provisions of
21 this Act, except those provisions related to finance charges.
Article 2. Payday Loans

23     Section 2-5. Loan terms.
24     (a) Without affecting the right of a consumer to prepay at
25 any time without cost or penalty, no payday loan may have a
26 minimum term of less than 13 days.
27     (b) No payday loan may be made to a consumer if the loan
28 would result in the consumer being indebted to one or more
29 payday lenders for a period in excess of 45 consecutive days.
30 Except as provided under Section 2-40, if a consumer has or has
31 had loans outstanding for a period in excess of 45 consecutive
32 days, no payday lender may offer or make a loan to the consumer



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1 for at least 7 calendar days after the date on which the
2 outstanding balance of all payday loans made during the 45
3 consecutive day period is paid in full. For purposes of this
4 subsection, the term "consecutive days" means a series of
5 continuous calendar days in which the consumer has an
6 outstanding balance on one or more payday loans; however, if a
7 payday loan is made to a consumer within 6 days or less after
8 the outstanding balance of all loans is paid in full, those
9 days are counted as "consecutive days" for purposes of this
10 subsection.
11     (c) No lender may make a payday loan to a consumer if the
12 total principal amount of the loan, when combined with the
13 principal amount of all of the consumer's other outstanding
14 payday loans, exceeds $1,000 or 25% of the consumer's gross
15 monthly income, whichever is less.
16     (d) No payday loan may be made to a consumer who has an
17 outstanding balance on 2 payday loans.
18     (e) No lender may charge more than $16 per $100 loaned on
19 any payday loan over the term of the loan.
20     (f) A lender may not take or attempt to take an interest in
21 any of the consumer's personal property to secure a payday
22 loan.
23     (g) A consumer has the right to redeem a check or any other
24 item described in the definition of payday loan under Section
25 1-10 issued in connection with a payday loan from the lender
26 holding the check or other item at any time before the payday
27 loan becomes payable by paying the full amount of the check or
28 other item, less the unearned portion of the finance charge
29 calculated on a simple interest basis.
30     Section 2-7. Wage assignments. Any payday loan that is a
31 transaction in which the lender accepts a wage assignment must
32 meet the requirements of this Act, the requirements of the
33 Illinois Wage Assignment Act, and the requirements of 16 C.F.R.



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1 444.2(a)(3)(i)(2003, no subsequent amendments or editions are
2 included). A violation of this Section constitutes a material
3 violation of the Payday Loan Reform Act.
4     Section 2-10. Permitted fees.
5     (a) If there are insufficient funds to pay a check,
6 Automatic Clearing House (ACH) debit, or any other item
7 described in the definition of payday loan under Section 1-10
8 on the day of presentment and only after the lender has
9 incurred an expense, a lender may charge a fee not to exceed
10 $25. Only one such fee may be collected by the lender with
11 respect to a particular check, ACH debit, or item even if it
12 has been deposited and returned more than once. A lender shall
13 present the check, ACH debit, or other item described in the
14 definition of payday loan under Section 1-10 for payment not
15 more than twice. A fee charged under this subsection (a) is a
16 lender's exclusive charge for late payment.
17     (b) When a consumer repays a payday loan in full before its
18 due date, the lender must refund the finance charges to the
19 consumer on a simple interest basis as of the time of
20 repayment.
21     (c) Except for the finance charges described in Section 2-5
22 and as specifically allowed by this Section, a lender may not
23 impose on a consumer any additional finance charges, interest,
24 fees, or charges of any sort for any purpose.
25     Section 2-15. Verification.
26     (a) Before entering into a loan agreement with a consumer,
27 a lender must use a commercially reasonable method of
28 verification to verify that the proposed loan agreement is
29 permissible under this Act.
30     (b) Within 6 months after the effective date of this Act,
31 the Division shall certify that one or more consumer reporting
32 services are commercially reasonable methods of verification.



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1 Upon certifying that a consumer reporting service is a
2 commercially reasonable method of verification, the Division
3 shall:
4         (1) provide reasonable notice to all licensees
5     identifying the commercially reasonable methods of
6     verification that are available; and
7         (2) immediately upon certification, require each
8     licensee to use a commercially reasonable method of
9     verification as a means of complying with subsection (a) of
10     this Section.
11     (c) Except as otherwise provided in this Section, all
12 information contained in the certified database regarding any
13 consumer is strictly confidential and is exempt from disclosure
14 under the Freedom of Information Act.
15     (d) Notwithstanding any other provision of law to the
16 contrary, a consumer seeking a payday loan may make a direct
17 inquiry to the certified database provider to request a more
18 detailed explanation of the basis for a database's
19 determination that the consumer is ineligible for a new payday
20 loan.
21     (e) In certifying a commercially reasonable method of
22 verification, the Division shall ensure that the database:
23         (1) provides real-time access through an Internet
24     connection or, if real-time access through an Internet
25     connection becomes unavailable to lenders due to a database
26     provider's technical problems incurred by the database
27     provider, through alternative verification mechanisms,
28     including, but not limited to, verification by telephone;
29         (2) is accessible to the Division and to licensees in
30     order to ensure compliance with this Act and in order to
31     provide any other information that the Division deems
32     necessary;
33         (3) requires licensees to input whatever information
34     is required by the Division;



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1         (4) maintains a real-time copy of the required
2     reporting information that is available to the Division at
3     all times and is the property of the Division;
4         (5) provides licensees only with a statement that a
5     consumer is eligible or ineligible for a new payday loan
6     and a description of the reason for the determination; and
7         (6) contains safeguards to ensure that all information
8     contained in the database regarding consumers is kept
9     strictly confidential.
10     (f) The licensee shall update the database by inputting all
11 information required under item (3) of subsection (e):
12         (1) on the same day that a payday loan is made;
13         (2) on the same day that a consumer elects a repayment
14     plan, as provided in Section 2-40; and
15         (3) on the same day that a consumer's payday loan is
16     paid in full.
17     (g) A licensee may rely on the information contained in the
18 certified database as accurate and is not subject to any
19 administrative penalty or liability as a result of relying on
20 inaccurate information contained in the database.
21     (h) The certified consumer reporting service shall
22 indemnify the licensee against all claims and actions arising
23 from illegal or willful or wanton acts on the part of the
24 certified consumer reporting service.
25     Section 2-17. Consumer reporting services qualification
26 and bonding.
27     (a) Each consumer reporting service shall have at all times
28 a net worth of not less than $1,000,000 calculated in
29 accordance with generally accepted accounting principles.
30     (b) Each application for certification under this Act shall
31 be accompanied by a surety bond acceptable to the Division in
32 the amount of $1,000,000. The surety bond shall be in a form
33 satisfactory to the Division and shall run to the State of



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1 Illinois for the benefit of any claimants against the consumer
2 reporting service to secure the faithful performance of its
3 obligations under this Act. The aggregate liability of the
4 surety may exceed the principal sum of the bond. Claimants
5 against the consumer reporting service may themselves bring
6 suit directly on the surety bond or the Division may bring suit
7 on behalf of claimants, either in one action or in successive
8 actions.
9     (c) The surety bond shall remain in effect until
10 cancellation, which may occur only after 90 days' written
11 notice to the Division. Cancellation shall not affect any
12 liability incurred or accrued during that period.
13     (d) The surety bond shall remain in place for 5 years after
14 the consumer reporting service ceases operation in the State.
15     (e) The surety bond proceeds and any cash or other
16 collateral posted as security by a consumer reporting service
17 shall be deemed by operation of law to be held in trust for any
18 claimants under this Act in the event of the bankruptcy of the
19 consumer reporting service.
20     (f) To the extent that any indemnity or fine exceeds the
21 amount of the surety bond described under this Section, the
22 consumer reporting service shall be liable for that amount.
23     (g) Each application for certification under this Act shall
24 be accompanied by a nonrefundable investigation fee of $2,500,
25 together with an initial certification fee of $1,000.
26     (h) On or before March 1 of each year, each consumer
27 reporting service qualified under this Section shall pay to the
28 Division a certification fee in the amount of $1,000.
29     Section 2-20. Required disclosures.
30     (a) Before a payday loan is made, a lender shall deliver to
31 the consumer a pamphlet prepared by the Director that:
32         (1) explains, in simple English and Spanish, all of the
33     consumer's rights and responsibilities in a payday loan



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1     transaction;
2         (2) includes a toll-free number to the Director's
3     office to handle concerns or provide information about
4     whether a lender is licensed, whether complaints have been
5     filed with the Director, and the resolution of those
6     complaints; and
7         (3) provides information regarding the availability of
8     debt management services.
9     (b) Lenders shall provide consumers with a written
10 agreement that may be kept by the consumer. The written
11 agreement must include the following information in English and
12 in the language in which the loan was negotiated:
13         (1) the name and address of the lender making the
14     payday loan, and the name and title of the individual
15     employee who signs the agreement on behalf of the lender;
16         (2) disclosures required by the federal Truth in
17     Lending Act;
18         (3) a clear description of the consumer's payment
19     obligations under the loan;
20         (4) the following statement, in at least 14-point bold
21     type face: "You cannot be prosecuted in criminal court to
22     collect this loan.". The information required to be
23     disclosed under this subdivision (4) must be conspicuously
24     disclosed in the loan document and shall be located
25     immediately preceding the signature of the consumer; and
26         (5) the following statement, in at least 14-point bold
27     type face:
28         "WARNING: This loan is not intended to meet long-term
29     financial needs. This loan should be used only to meet
30     short-term cash needs. The cost of your loan may be higher
31     than loans offered by other lending institutions. This loan
32     is regulated by the Department of Financial and
33     Professional Regulation."
34     (c) The following notices in English and Spanish must be



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1 conspicuously posted by a lender in each location of a business
2 providing payday loans:
3         (1) A notice that informs consumers that the lender
4     cannot use the criminal process against a consumer to
5     collect any payday loan.
6         (2) The schedule of all finance charges to be charged
7     on loans with an example of the amounts that would be
8     charged on a $100 loan payable in 13 days and a $400 loan
9     payable in 30 days, giving the corresponding annual
10     percentage rate.
11         (3) In one-inch bold type, a notice to the public in
12     the lending area of each business location containing the
13     following statement:
14         "WARNING: This loan is not intended to meet long-term
15     financial needs. This loan should be used only to meet
16     short-term cash needs. The cost of your loan may be higher
17     than loans offered by other lending institutions. This loan
18     is regulated by the Department of Financial and
19     Professional Regulation."
20         (4) In one-inch bold type, a notice to the public in
21     the lending area of each business location containing the
22     following statement:
23         "INTEREST-FREE REPAYMENT PLAN: If you still owe on one
24     or more payday loans after 35 days, you are entitled to
25     enter into a repayment plan. The repayment plan will give
26     you at least 56 days to repay your loan in installments
27     with no additional finance charges, interest, fees, or
28     other charges of any kind."
29     Section 2-25. Right to cancel future payment obligations. A
30 consumer may cancel future payment obligations on a payday
31 loan, without cost or finance charges, no later than the end of
32 the second business day immediately following the day on which
33 the payday loan agreement was executed. To cancel future



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1 payment obligations on a payday loan, the consumer must inform
2 the lender in writing that the consumer wants to cancel the
3 future payment obligations on the payday loan and must return
4 the uncashed proceeds, check or cash, in an amount equal to the
5 principal amount of the loan.
6     Section 2-30. Rollovers prohibited. Rollover of a payday
7 loan by any lender is prohibited.
8     Section 2-35. Proceeds and payments.
9     (a) A lender may issue the proceeds of a loan in the form
10 of a check drawn on the lender's bank account, in cash, by
11 money order, by debit card, or by electronic funds transfer.
12 When the proceeds are issued in the form of a check drawn on
13 the lender's bank account, by money order, or by electronic
14 funds transfer, the lender may not charge a fee for cashing the
15 check, money order, or electronic funds transfer. When the
16 proceeds are issued in cash, the lender must provide the
17 consumer with written verification of the cash transaction and
18 shall maintain a record of the transaction for at least 3
19 years.
20     (b) After each payment made in full or in part on any loan,
21 the lender shall give the consumer making the payment either a
22 signed, dated receipt or a signed, computer-generated receipt
23 showing the amount paid and the balance due on the loan.
24     (c) Before a loan is made, the lender must provide the
25 consumer, or each consumer if there is more than one, with a
26 copy of the loan documents described in Section 2-20.
27     (d) The holder or assignee of any loan agreement or of any
28 check written by a consumer in connection with a payday loan
29 takes the loan agreement or check subject to all claims and
30 defenses of the consumer against the maker.
31     (e) Upon receipt of a check from a consumer for a loan, the
32 lender must immediately stamp the back of the check with an



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1 endorsement that states: "This check is being negotiated as
2 part of a loan under the Payday Loan Reform Act, and any holder
3 of this check takes it subject to all claims and defenses of
4 the maker."
5     (f) Loan payments may be electronically debited from the
6 consumer's bank account. Except as provided by federal law, the
7 lender must obtain prior written approval from the consumer.
8     (g) A consumer may prepay on a loan in increments of $5 or
9 more at any time without cost or penalty.
10     (h) A loan is made on the date on which a loan agreement is
11 signed by both parties, regardless of whether the lender gives
12 any moneys to the consumer on that date.
13     Section 2-40. Repayment plan.
14     (a) At the time a payday loan is made, the lender must
15 provide the consumer with a separate written notice signed by
16 the consumer of the consumer's right to request a repayment
17 plan. The written notice must comply with the requirements of
18 subsection (c).
19     (b) The loan agreement must include the following language
20 in at least 14-point bold type: IF YOU STILL OWE ON ONE OR MORE
25     (c) At the time a payday loan is made, on the first page of
26 the loan agreement and in a separate document signed by the
27 consumer, the following shall be inserted in at least 14-point
33     (d) If the consumer has or has had one or more payday loans



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1 outstanding for 35 consecutive days, any payday loan
2 outstanding on the 35th consecutive day shall be payable under
3 the terms of a repayment plan as provided for in this Section,
4 if the consumer requests the repayment plan. As to any loan
5 that becomes eligible for a repayment plan under this
6 subsection, the consumer has until 28 days after the default
7 date of the loan to request a repayment plan. Within 48 hours
8 after the request for a repayment plan is made, the lender must
9 prepare the repayment plan agreement and both parties must
10 execute the agreement. Execution of the repayment plan
11 agreement shall be made in the same manner in which the loan
12 was made and shall be evidenced in writing.
13     (e) The terms of the repayment plan for a payday loan must
14 include the following:
15         (1) The lender may not impose any charge on the
16     consumer for requesting or using a repayment plan.
17     Performance of the terms of the repayment plan extinguishes
18     the consumer's obligation on the loan.
19         (2) No lender shall charge the consumer any finance
20     charges, interest, fees, or other charges of any kind,
21     except a fee for insufficient funds, as provided under
22     Section 2-10.
23         (3) The consumer shall be allowed to repay the loan in
24     at least 4 equal installments with at least 13 days between
25     installments, provided that the term of the repayment plan
26     does not exceed 90 days. The first payment under the
27     repayment plan shall not be due before at least 13 days
28     after the repayment plan is signed by both parties. The
29     consumer may prepay the amount due under the repayment plan
30     at any time, without charge or penalty.
31         (4) The length of time between installments may be
32     extended by the parties so long as the total period of
33     repayment does not exceed 90 days. Any such modification
34     must be in writing and signed by both parties.



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1     (f) Notwithstanding any provision of law to the contrary, a
2 lender is prohibited from making a payday loan to a consumer
3 who has a payday loan outstanding under a repayment plan and
4 for at least 14 days after the outstanding balance of the loan
5 under the repayment plan and the outstanding balance of all
6 other payday loans outstanding during the term of the repayment
7 plan are paid in full.
8     (g) A lender may not accept postdated checks for payments
9 under a repayment plan.
10     (h) Notwithstanding any provision of law to the contrary, a
11 lender may voluntarily agree to enter into a repayment plan
12 with a consumer at any time. If a consumer is eligible for a
13 repayment plan under subsection (d), any repayment agreement
14 constitutes a repayment plan under this Section and all
15 provisions of this Section apply to that agreement.
16     Section 2-45. Default.
17     (a) No legal proceeding of any kind, including, but not
18 limited to, a lawsuit or arbitration, may be filed or initiated
19 against a consumer to collect on a payday loan until 28 days
20 after the default date of the loan, or, in the case of a payday
21 loan under a repayment plan, for 28 days after the default date
22 under the terms of the repayment plan.
23     (b) Upon and after default, a lender shall not charge the
24 consumer any finance charges, interest, fees, or charges of any
25 kind, other than the insufficient fund fee described in Section
26 2-10.
27     Section 2-50. Practices concerning members of the
28 military.
29     (a) A lender may not garnish the wages or salaries of a
30 consumer who is a member of the military.
31     (b) In addition to any rights and obligations provided
32 under the federal Servicemembers Civil Relief Act, a lender



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1 shall suspend and defer collection activity against a consumer
2 who is a member of the military and who has been deployed to a
3 combat or combat support posting for the duration of the
4 deployment.
5     (c) A lender may not knowingly contact the military chain
6 of command of a consumer who is a member of the military in an
7 effort to collect on a payday loan.
8     (d) Lenders must honor the terms of any repayment plan that
9 they have entered into with any consumer, including a repayment
10 agreement negotiated through military counselors or
11 third-party credit counselors.
12     Section 2-55. Information, reporting, and examination.
13     (a) A licensee shall keep and use books, accounts, and
14 records that will enable the Director to determine if the
15 licensee is complying with the provisions of this Act and
16 maintain any other records as required by the Director.
17     (b) A licensee shall collect and maintain information
18 annually for a report that shall disclose in detail and under
19 appropriate headings:
20         (1) the total number of payday loans made during the
21     preceding calendar year;
22         (2) the total number of payday loans outstanding as of
23     December 31 of the preceding calendar year;
24         (3) the minimum, maximum, and average dollar amount of
25     payday loans made during the preceding calendar year;
26         (4) the average annual percentage rate and the average
27     term of payday loans made during the preceding calendar
28     year; and
29         (5) the total number of payday loans paid in full, the
30     total number of loans that went into default, and the total
31     number of loans written off during the preceding calendar
32     year.
33     The report shall be verified by the oath or affirmation of



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1 the owner, manager, or president of the licensee. The report
2 must be filed with the Director no later than March 1 of the
3 year following the year for which the report discloses the
4 information specified in this subsection (b). The Director may
5 impose upon the licensee a fine of $25 per day for each day
6 beyond the filing deadline that the report is not filed.
7     (c) No later than July 31 of the second year following the
8 effective date of this Act, the Division shall publish a
9 biennial report that contains a compilation of aggregate data
10 concerning the payday lending industry and shall make the
11 report available to the Governor, the General Assembly, and the
12 general public.
13     (d) The Division shall have the authority to conduct
14 examinations of the books, records, and loan documents at any
15 time.
16     Section 2-60. Advertising.
17     (a) Advertising for loans transacted under this Act may not
18 be false, misleading, or deceptive. Payday loan advertising, if
19 it states a rate or amount of charge for a loan, must state the
20 rate as an annual percentage rate. No licensee may advertise in
21 any manner so as to indicate or imply that its rates or charges
22 for loans are in any way recommended, approved, set, or
23 established by the State government or by this Act.
24     (b) If any advertisement to which this Section applies
25 states the amount of any installment payment, the dollar amount
26 of any finance charge, or the number of installments or the
27 period of repayment, then the advertisement shall state all of
28 the following items:
29         (1) The amount of the loan.
30         (2) The number, amount, and due dates or period of
31     payments scheduled to repay the indebtedness if the credit
32     is extended.
33         (3) The finance charge expressed as an annual



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1     percentage rate.
Article 3. Licensure

3     Section 3-3. Licensure requirement.
4      (a) Except as provided in subsection (b), on and after the
5 effective date of this Act, a person or entity acting as a
6 payday lender must be licensed by the Division as provided in
7 this Article.
8     (b) A person or entity acting as a payday lender who is
9 licensed on the effective date of this Act under the Consumer
10 Installment Loan Act need not comply with subsection (a) until
11 the Division takes action on the person's or entity's
12 application for a payday loan license. The application must be
13 submitted to the Division within 9 months after the effective
14 date of this Act. If the application is not submitted within 9
15 months after the effective date of this Act, the person or
16 entity acting as a payday lender is subject to subsection (a).
17     Section 3-5. Licensure.
18     (a) A license to make a payday loan shall state the
19 address, including city and state, at which the business is to
20 be conducted and shall state fully the name of the licensee.
21 The license shall be conspicuously posted in the place of
22 business of the licensee and shall not be transferable or
23 assignable.
24     (b) An application for a license shall be in writing and in
25 a form prescribed by the Director. The Director may not issue a
26 payday loan license unless and until the following findings are
27 made:
28         (1) that the financial responsibility, experience,
29     character, and general fitness of the applicant are such as
30     to command the confidence of the public and to warrant the
31     belief that the business will be operated lawfully and



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1     fairly and within the provisions and purposes of this Act;
2     and
3         (2) that the applicant has submitted such other
4     information as the Director may deem necessary.
5     (c) A license shall be issued for no longer than one year,
6 and no renewal of a license may be provided if a licensee has
7 substantially violated this Act and has not cured the violation
8 to the satisfaction of the Division.
9     (d) A licensee shall appoint, in writing, the Director as
10 attorney-in-fact upon whom all lawful process against the
11 licensee may be served with the same legal force and validity
12 as if served on the licensee. A copy of the written
13 appointment, duly certified, shall be filed in the office of
14 the Director, and a copy thereof certified by the Director
15 shall be sufficient evidence to subject a licensee to
16 jurisdiction in a court of law. This appointment shall remain
17 in effect while any liability remains outstanding in this State
18 against the licensee. When summons is served upon the Director
19 as attorney-in-fact for a licensee, the Director shall
20 immediately notify the licensee by registered mail, enclosing
21 the summons and specifying the hour and day of service.
22     (e) A licensee must pay an annual fee of $1,000. In
23 addition to the license fee, the reasonable expense of any
24 examination or hearing by the Director under any provisions of
25 this Act shall be borne by the licensee. If a licensee fails to
26 renew its license by December 31, its license shall
27 automatically expire; however, the Director, in his or her
28 discretion, may reinstate an expired license upon:
29         (1) payment of the annual fee within 30 days of the
30     date of expiration; and
31         (2) proof of good cause for failure to renew.
32     (f) Not more than one place of business shall be maintained
33 under the same license, but the Director may issue more than
34 one license to the same licensee upon compliance with all the



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1 provisions of this Act governing issuance of a single license.
2 The location, except those locations already in existence as of
3 June 1, 2005, may not be within one mile of a horse race track
4 subject to the Illinois Horse Racing Act of 1975, within one
5 mile of a facility at which gambling is conducted under the
6 Riverboat Gambling Act, within one mile of the location at
7 which a riverboat subject to the Riverboat Gambling Act docks,
8 or within one mile of any State of Illinois or United States
9 military base or naval installation.
10     (g) No licensee shall conduct the business of making loans
11 under this Act within any office, suite, room, or place of
12 business in which any other business is solicited or engaged in
13 unless the other business is licensed by the Division or, in
14 the opinion of the Director, the other business would not be
15 contrary to the best interests of consumers and is authorized
16 by the Director in writing.
17     (h) The Director shall maintain a list of licensees that
18 shall be available to interested consumers and lenders and the
19 public. The Director shall maintain a toll-free number whereby
20 consumers may obtain information about licensees. The Director
21 shall also establish a complaint process under which an
22 aggrieved consumer may file a complaint against a licensee or
23 non-licensee who violates any provision of this Act.
24     Section 3-10. Closing of business; surrender of license. At
25 least 10 days before a licensee ceases operations, closes the
26 business, or files for bankruptcy, the licensee shall:
27         (1) Notify the Division of its intended action in
28     writing.
29         (2) With the exception of filing for bankruptcy,
30     surrender its license to the Director for cancellation. The
31     surrender of the license shall not affect the licensee's
32     civil or criminal liability for acts committed before or
33     after the surrender or entitle the licensee to a return of



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1     any part of the annual license fee.
2         (3) Notify the Division of the location where the
3     books, accounts, contracts, and records will be
4     maintained.
5     The accounts, books, records, and contracts shall be
6 maintained and serviced by the licensee, by another licensee
7 under this Act, or by the Division.
Article 4. Administrative Provisions

9     Section 4-5. Prohibited acts. A licensee or unlicensed
10 person or entity making payday loans may not commit, or have
11 committed on behalf of the licensee or unlicensed person or
12 entity, any of the following acts:
13         (1) Threatening to use or using the criminal process in
14     this or any other state to collect on the loan.
15         (2) Using any device or agreement that would have the
16     effect of charging or collecting more fees or charges than
17     allowed by this Act, including, but not limited to,
18     entering into a different type of transaction with the
19     consumer.
20         (3) Engaging in unfair, deceptive, or fraudulent
21     practices in the making or collecting of a payday loan.
22         (4) Using or attempting to use the check provided by
23     the consumer in a payday loan as collateral for a
24     transaction not related to a payday loan.
25         (5) Knowingly accepting payment in whole or in part of
26     a payday loan through the proceeds of another payday loan
27     provided by any licensee.
28         (6) Knowingly accepting any security, other than that
29     specified in the definition of payday loan in Section 1-10,
30     for a payday loan.
31         (7) Charging any fees or charges other than those
32     specifically authorized by this Act.



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1         (8) Threatening to take any action against a consumer
2     that is prohibited by this Act or making any misleading or
3     deceptive statements regarding the payday loan or any
4     consequences thereof.
5         (9) Making a misrepresentation of a material fact by an
6     applicant for licensure in obtaining or attempting to
7     obtain a license.
8         (10) Including any of the following provisions in loan
9     documents required by subsection (b) of Section 2-20:
10             (A) a confession of judgment clause;
11             (B) a waiver of the right to a jury trial, if
12         applicable, in any action brought by or against a
13         consumer, unless the waiver is included in an
14         arbitration clause allowed under subparagraph (C) of
15         this paragraph (11);
16             (C) a mandatory arbitration clause that is
17         oppressive, unfair, unconscionable, or substantially
18         in derogation of the rights of consumers; or
19             (D) a provision in which the consumer agrees not to
20         assert any claim or defense arising out of the
21         contract.
22         (11) Selling any insurance of any kind whether or not
23     sold in connection with the making or collecting of a
24     payday loan.
25         (12) Taking any power of attorney.
26         (13) Taking any security interest in real estate.
27         (14) Collecting a delinquency or collection charge on
28     any installment regardless of the period in which it
29     remains in default.
30         (15) Collecting treble damages on an amount owing from
31     a payday loan.
32         (16) Refusing, or intentionally delaying or
33     inhibiting, the consumer's right to enter into a repayment
34     plan pursuant to this Act.



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1         (17) Charging for, or attempting to collect,
2     attorney's fees, court costs, or arbitration costs
3     incurred in connection with the collection of a payday
4     loan.
5         (18) Making a loan in violation of this Act.
6         (19) Garnishing the wages or salaries of a consumer who
7     is a member of the military.
8         (20) Failing to suspend or defer collection activity
9     against a consumer who is a member of the military and who
10     has been deployed to a combat or combat-support posting.
11         (21) Contacting the military chain of command of a
12     consumer who is a member of the military in an effort to
13     collect on a payday loan.
14     Section 4-10. Enforcement and remedies.
15     (a) The remedies provided in this Act are cumulative and
16 apply to persons or entities subject to this Act.
17     (b) Any material violation of this Act, including the
18 commission of an act prohibited under Section 4-5, constitutes
19 a violation of the Consumer Fraud and Deceptive Business
20 Practices Act.
21     (c) If any provision of the written agreement described in
22 subsection (b) of Section 2-20 violates this Act, then that
23 provision is unenforceable against the consumer.
24     (d) Subject to the Illinois Administrative Procedure Act,
25 the Director may hold hearings, make findings of fact,
26 conclusions of law, issue cease and desist orders, have the
27 power to issue fines of up to $10,000 per violation, refer the
28 matter to the appropriate law enforcement agency for
29 prosecution under this Act, and suspend or revoke a license
30 granted under this Act. All proceedings shall be open to the
31 public.
32     (e) The Director may issue a cease and desist order to any
33 licensee or other person doing business without the required



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1 license, when in the opinion of the Director the licensee or
2 other person is violating or is about to violate any provision
3 of this Act or any rule or requirement imposed in writing by
4 the Division as a condition of granting any authorization
5 permitted by this Act. The cease and desist order permitted by
6 this subsection (e) may be issued prior to a hearing.
7     The Director shall serve notice of his or her action,
8 including, but not limited to, a statement of the reasons for
9 the action, either personally or by certified mail, return
10 receipt requested. Service by certified mail shall be deemed
11 completed when the notice is deposited in the U.S. mail.
12     Within 10 days of service of the cease and desist order,
13 the licensee or other person may request a hearing in writing.
14 The Director shall schedule a hearing within 30 days after the
15 request for a hearing unless otherwise agreed to by the
16 parties.
17     If it is determined that the Director had the authority to
18 issue the cease and desist order, he or she may issue such
19 orders as may be reasonably necessary to correct, eliminate, or
20 remedy the conduct.
21     The powers vested in the Director by this subsection (e)
22 are additional to any and all other powers and remedies vested
23 in the Director by law, and nothing in this subsection (e)
24 shall be construed as requiring that the Director shall employ
25 the power conferred in this subsection instead of or as a
26 condition precedent to the exercise of any other power or
27 remedy vested in the Director.
28     The cost for the administrative hearing under this
29 subsection (e) shall be paid by the lender.
30     (f) The Director may, after 10 days notice by registered
31 mail to the licensee at the address set forth in the license
32 stating the contemplated action and in general the grounds
33 therefore, fine the licensee an amount not exceeding $10,000
34 per violation, or revoke or suspend any license issued



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1 hereunder if he or she finds that:
2         (1) the licensee has failed to comply with any
3     provision of this Act or any order, decision, finding,
4     rule, regulation, or direction of the Director lawfully
5     made pursuant to the authority of this Act; or
6         (2) any fact or condition exists which, if it had
7     existed at the time of the original application for the
8     license, clearly would have warranted the Director in
9     refusing to issue the license.
10     The Director may fine, suspend, or revoke only the
11 particular license with respect to which grounds for the fine,
12 revocation, or suspension occur or exist, but if the Director
13 finds that grounds for revocation are of general application to
14 all offices or to more than one office of the licensee, the
15 Director shall fine, suspend, or revoke every license to which
16 the grounds apply.
17     No revocation, suspension, or surrender of any license
18 shall impair or affect the obligation of any pre-existing
19 lawful contract between the licensee and any obligor.
20     The Director may issue a new license to a licensee whose
21 license has been revoked when facts or conditions which clearly
22 would have warranted the Director in refusing originally to
23 issue the license no longer exist.
24     In every case in which a license is suspended or revoked or
25 an application for a license or renewal of a license is denied,
26 the Director shall serve the licensee with notice of his or her
27 action, including a statement of the reasons for his or her
28 actions, either personally, or by certified mail, return
29 receipt requested. Service by certified mail shall be deemed
30 completed when the notice is deposited in the U.S. Mail.
31     An order assessing a fine, an order revoking or suspending
32 a license, or an order denying renewal of a license shall take
33 effect upon service of the order unless the licensee requests a
34 hearing, in writing, within 10 days after the date of service.



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1 In the event a hearing is requested, the order shall be stayed
2 until a final administrative order is entered.
3     If the licensee requests a hearing, the Director shall
4 schedule a hearing within 30 days after the request for a
5 hearing unless otherwise agreed to by the parties.
6     The hearing shall be held at the time and place designated
7 by the Director. The Director and any administrative law judge
8 designated by him or her shall have the power to administer
9 oaths and affirmations, subpoena witnesses and compel their
10 attendance, take evidence, and require the production of books,
11 papers, correspondence, and other records or information that
12 he or she considers relevant or material to the inquiry.
13     The costs for the administrative hearing shall be paid by
14 the lender.
15     Section 4-15. Bonding.
16     (a) A person or entity engaged in making payday loans under
17 this Act shall post a bond to the Division in the amount of
18 $50,000 for each location where loans will be made, up to a
19 maximum bond amount of $500,000.
20     (b) A bond posted under subsection (a) must continue in
21 effect for the period of licensure and for 3 additional years
22 if the bond is still available. The bond must be available to
23 pay damages and penalties to a consumer harmed by a violation
24 of this Act.
25     (c) From time to time the Director may require a licensee
26 to file a bond in an additional sum if the Director determines
27 it to be necessary. In no case shall the bond be more than the
28 outstanding liabilities of the licensee.
29     Section 4-20. Preemption of administrative rules. Any
30 administrative rule promulgated prior to the effective date of
31 this Act by the Division regarding payday loans is preempted.



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1     Section 4-25. Reporting of violations. The Division shall
2 report to the Attorney General all material violations of this
3 Act of which it becomes aware.
4     Section 4-30. Rulemaking; industry review.
5     (a) The Division may make and enforce such reasonable
6 rules, regulations, directions, orders, decisions, and
7 findings as the execution and enforcement of the provisions of
8 this Act require, and as are not inconsistent therewith. All
9 rules, regulations, and directions of a general character shall
10 be printed and copies thereof mailed to all licensees.
11     (b) Within 6 months after the effective of this Act, the
12 Department of Financial and Professional Regulation shall
13 promulgate reasonable rules regarding the issuance of payday
14 loans by banks, savings banks, savings and loan associations,
15 credit unions, and insurance companies. These rules shall be
16 consistent with this Act and shall be limited in scope to the
17 actual products and services offered by lenders governed by
18 this Act.
19     (c) After the effective date of this Act, the Division
20 shall, over a 3-year period, conduct a study of the payday loan
21 industry to determine the impact and effectiveness of this Act.
22 The Division shall report its findings to the General Assembly
23 within 3 months of the third anniversary of the effective date
24 of this Act. The study shall determine the effect of this Act
25 on the protection of consumers in this State and on the fair
26 and reasonable regulation of the payday loan industry. The
27 study shall include, but shall not be limited to, an analysis
28 of the ability of the industry to use private reporting tools
29 that:
30         (1) ensure substantial compliance with this Act,
31     including real time reporting of outstanding payday loans;
32     and
33         (2) provide data to the Division in an appropriate form



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1     and with appropriate content to allow the Division to
2     adequately monitor the industry.
3     The report of the Division shall, if necessary, identify
4 and recommend specific amendments to this Act to further
5 protect consumers and to guarantee fair and reasonable
6 regulation of the payday loan industry.
7     Section 4-35. Judicial review. All final administrative
8 decisions of the Division under this Act are subject to
9 judicial review pursuant to the provisions of the
10 Administrative Review Law and any rules adopted pursuant
11 thereto.
12     Section 4-40. No waivers. There shall be no waiver of any
13 provision of this Act.
14     Section 4-45. Superiority of Act. To the extent this Act
15 conflicts with any other State financial regulation laws, this
16 Act is superior and supersedes those laws for the purposes of
17 regulating payday loans in Illinois, provided that nothing
18 herein shall apply to any lender that is a bank, savings bank,
19 savings and loan association, credit union, or insurance
20 company organized, chartered, or holding a certificate of
21 authority to do business under the laws of this State or any
22 other state or under the laws of the United States.
23     Section 4-50. Severability. The provisions of this Act are
24 severable under Section 1.31 of the Statute on Statutes.
Article 90. Amendatory Provisions

26     Section 90-3. The Freedom of Information Act is amended by
27 changing Section 7 as follows:



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1     (5 ILCS 140/7)  (from Ch. 116, par. 207)
2     Sec. 7. Exemptions.
3     (1) The following shall be exempt from inspection and
4 copying:
5         (a) Information specifically prohibited from
6     disclosure by federal or State law or rules and regulations
7     adopted under federal or State law.
8         (b) Information that, if disclosed, would constitute a
9     clearly unwarranted invasion of personal privacy, unless
10     the disclosure is consented to in writing by the individual
11     subjects of the information. The disclosure of information
12     that bears on the public duties of public employees and
13     officials shall not be considered an invasion of personal
14     privacy. Information exempted under this subsection (b)
15     shall include but is not limited to:
16             (i) files and personal information maintained with
17         respect to clients, patients, residents, students or
18         other individuals receiving social, medical,
19         educational, vocational, financial, supervisory or
20         custodial care or services directly or indirectly from
21         federal agencies or public bodies;
22             (ii) personnel files and personal information
23         maintained with respect to employees, appointees or
24         elected officials of any public body or applicants for
25         those positions;
26             (iii) files and personal information maintained
27         with respect to any applicant, registrant or licensee
28         by any public body cooperating with or engaged in
29         professional or occupational registration, licensure
30         or discipline;
31             (iv) information required of any taxpayer in
32         connection with the assessment or collection of any tax
33         unless disclosure is otherwise required by State
34         statute;



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1             (v) information revealing the identity of persons
2         who file complaints with or provide information to
3         administrative, investigative, law enforcement or
4         penal agencies; provided, however, that identification
5         of witnesses to traffic accidents, traffic accident
6         reports, and rescue reports may be provided by agencies
7         of local government, except in a case for which a
8         criminal investigation is ongoing, without
9         constituting a clearly unwarranted per se invasion of
10         personal privacy under this subsection; and
11             (vi) the names, addresses, or other personal
12         information of participants and registrants in park
13         district, forest preserve district, and conservation
14         district programs.
15         (c) Records compiled by any public body for
16     administrative enforcement proceedings and any law
17     enforcement or correctional agency for law enforcement
18     purposes or for internal matters of a public body, but only
19     to the extent that disclosure would:
20             (i) interfere with pending or actually and
21         reasonably contemplated law enforcement proceedings
22         conducted by any law enforcement or correctional
23         agency;
24             (ii) interfere with pending administrative
25         enforcement proceedings conducted by any public body;
26             (iii) deprive a person of a fair trial or an
27         impartial hearing;
28             (iv) unavoidably disclose the identity of a
29         confidential source or confidential information
30         furnished only by the confidential source;
31             (v) disclose unique or specialized investigative
32         techniques other than those generally used and known or
33         disclose internal documents of correctional agencies
34         related to detection, observation or investigation of



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1         incidents of crime or misconduct;
2             (vi) constitute an invasion of personal privacy
3         under subsection (b) of this Section;
4             (vii) endanger the life or physical safety of law
5         enforcement personnel or any other person; or
6             (viii) obstruct an ongoing criminal investigation.
7         (d) Criminal history record information maintained by
8     State or local criminal justice agencies, except the
9     following which shall be open for public inspection and
10     copying:
11             (i) chronologically maintained arrest information,
12         such as traditional arrest logs or blotters;
13             (ii) the name of a person in the custody of a law
14         enforcement agency and the charges for which that
15         person is being held;
16             (iii) court records that are public;
17             (iv) records that are otherwise available under
18         State or local law; or
19             (v) records in which the requesting party is the
20         individual identified, except as provided under part
21         (vii) of paragraph (c) of subsection (1) of this
22         Section.
23         "Criminal history record information" means data
24     identifiable to an individual and consisting of
25     descriptions or notations of arrests, detentions,
26     indictments, informations, pre-trial proceedings, trials,
27     or other formal events in the criminal justice system or
28     descriptions or notations of criminal charges (including
29     criminal violations of local municipal ordinances) and the
30     nature of any disposition arising therefrom, including
31     sentencing, court or correctional supervision,
32     rehabilitation and release. The term does not apply to
33     statistical records and reports in which individuals are
34     not identified and from which their identities are not



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1     ascertainable, or to information that is for criminal
2     investigative or intelligence purposes.
3         (e) Records that relate to or affect the security of
4     correctional institutions and detention facilities.
5         (f) Preliminary drafts, notes, recommendations,
6     memoranda and other records in which opinions are
7     expressed, or policies or actions are formulated, except
8     that a specific record or relevant portion of a record
9     shall not be exempt when the record is publicly cited and
10     identified by the head of the public body. The exemption
11     provided in this paragraph (f) extends to all those records
12     of officers and agencies of the General Assembly that
13     pertain to the preparation of legislative documents.
14         (g) Trade secrets and commercial or financial
15     information obtained from a person or business where the
16     trade secrets or information are proprietary, privileged
17     or confidential, or where disclosure of the trade secrets
18     or information may cause competitive harm, including all
19     information determined to be confidential under Section
20     4002 of the Technology Advancement and Development Act.
21     Nothing contained in this paragraph (g) shall be construed
22     to prevent a person or business from consenting to
23     disclosure.
24         (h) Proposals and bids for any contract, grant, or
25     agreement, including information which if it were
26     disclosed would frustrate procurement or give an advantage
27     to any person proposing to enter into a contractor
28     agreement with the body, until an award or final selection
29     is made. Information prepared by or for the body in
30     preparation of a bid solicitation shall be exempt until an
31     award or final selection is made.
32         (i) Valuable formulae, computer geographic systems,
33     designs, drawings and research data obtained or produced by
34     any public body when disclosure could reasonably be



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1     expected to produce private gain or public loss. The
2     exemption for "computer geographic systems" provided in
3     this paragraph (i) does not extend to requests made by news
4     media as defined in Section 2 of this Act when the
5     requested information is not otherwise exempt and the only
6     purpose of the request is to access and disseminate
7     information regarding the health, safety, welfare, or
8     legal rights of the general public.
9         (j) Test questions, scoring keys and other examination
10     data used to administer an academic examination or
11     determined the qualifications of an applicant for a license
12     or employment.
13         (k) Architects' plans, engineers' technical
14     submissions, and other construction related technical
15     documents for projects not constructed or developed in
16     whole or in part with public funds and the same for
17     projects constructed or developed with public funds, but
18     only to the extent that disclosure would compromise
19     security, including but not limited to water treatment
20     facilities, airport facilities, sport stadiums, convention
21     centers, and all government owned, operated, or occupied
22     buildings.
23         (l) Library circulation and order records identifying
24     library users with specific materials.
25         (m) Minutes of meetings of public bodies closed to the
26     public as provided in the Open Meetings Act until the
27     public body makes the minutes available to the public under
28     Section 2.06 of the Open Meetings Act.
29         (n) Communications between a public body and an
30     attorney or auditor representing the public body that would
31     not be subject to discovery in litigation, and materials
32     prepared or compiled by or for a public body in
33     anticipation of a criminal, civil or administrative
34     proceeding upon the request of an attorney advising the



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1     public body, and materials prepared or compiled with
2     respect to internal audits of public bodies.
3         (o) Information received by a primary or secondary
4     school, college or university under its procedures for the
5     evaluation of faculty members by their academic peers.
6         (p) Administrative or technical information associated
7     with automated data processing operations, including but
8     not limited to software, operating protocols, computer
9     program abstracts, file layouts, source listings, object
10     modules, load modules, user guides, documentation
11     pertaining to all logical and physical design of
12     computerized systems, employee manuals, and any other
13     information that, if disclosed, would jeopardize the
14     security of the system or its data or the security of
15     materials exempt under this Section.
16         (q) Documents or materials relating to collective
17     negotiating matters between public bodies and their
18     employees or representatives, except that any final
19     contract or agreement shall be subject to inspection and
20     copying.
21         (r) Drafts, notes, recommendations and memoranda
22     pertaining to the financing and marketing transactions of
23     the public body. The records of ownership, registration,
24     transfer, and exchange of municipal debt obligations, and
25     of persons to whom payment with respect to these
26     obligations is made.
27         (s) The records, documents and information relating to
28     real estate purchase negotiations until those negotiations
29     have been completed or otherwise terminated. With regard to
30     a parcel involved in a pending or actually and reasonably
31     contemplated eminent domain proceeding under Article VII
32     of the Code of Civil Procedure, records, documents and
33     information relating to that parcel shall be exempt except
34     as may be allowed under discovery rules adopted by the



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1     Illinois Supreme Court. The records, documents and
2     information relating to a real estate sale shall be exempt
3     until a sale is consummated.
4         (t) Any and all proprietary information and records
5     related to the operation of an intergovernmental risk
6     management association or self-insurance pool or jointly
7     self-administered health and accident cooperative or pool.
8         (u) Information concerning a university's adjudication
9     of student or employee grievance or disciplinary cases, to
10     the extent that disclosure would reveal the identity of the
11     student or employee and information concerning any public
12     body's adjudication of student or employee grievances or
13     disciplinary cases, except for the final outcome of the
14     cases.
15         (v) Course materials or research materials used by
16     faculty members.
17         (w) Information related solely to the internal
18     personnel rules and practices of a public body.
19         (x) Information contained in or related to
20     examination, operating, or condition reports prepared by,
21     on behalf of, or for the use of a public body responsible
22     for the regulation or supervision of financial
23     institutions or insurance companies, unless disclosure is
24     otherwise required by State law.
25         (y) Information the disclosure of which is restricted
26     under Section 5-108 of the Public Utilities Act.
27         (z) Manuals or instruction to staff that relate to
28     establishment or collection of liability for any State tax
29     or that relate to investigations by a public body to
30     determine violation of any criminal law.
31         (aa) Applications, related documents, and medical
32     records received by the Experimental Organ Transplantation
33     Procedures Board and any and all documents or other records
34     prepared by the Experimental Organ Transplantation



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1     Procedures Board or its staff relating to applications it
2     has received.
3         (bb) Insurance or self insurance (including any
4     intergovernmental risk management association or self
5     insurance pool) claims, loss or risk management
6     information, records, data, advice or communications.
7         (cc) Information and records held by the Department of
8     Public Health and its authorized representatives relating
9     to known or suspected cases of sexually transmissible
10     disease or any information the disclosure of which is
11     restricted under the Illinois Sexually Transmissible
12     Disease Control Act.
13         (dd) Information the disclosure of which is exempted
14     under Section 30 of the Radon Industry Licensing Act.
15         (ee) Firm performance evaluations under Section 55 of
16     the Architectural, Engineering, and Land Surveying
17     Qualifications Based Selection Act.
18         (ff) Security portions of system safety program plans,
19     investigation reports, surveys, schedules, lists, data, or
20     information compiled, collected, or prepared by or for the
21     Regional Transportation Authority under Section 2.11 of
22     the Regional Transportation Authority Act or the St. Clair
23     County Transit District under the Bi-State Transit Safety
24     Act.
25         (gg) Information the disclosure of which is restricted
26     and exempted under Section 50 of the Illinois Prepaid
27     Tuition Act.
28         (hh) Information the disclosure of which is exempted
29     under the State Officials and Employees Ethics Act.
30         (ii) Beginning July 1, 1999, information that would
31     disclose or might lead to the disclosure of secret or
32     confidential information, codes, algorithms, programs, or
33     private keys intended to be used to create electronic or
34     digital signatures under the Electronic Commerce Security



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1     Act.
2         (jj) Information contained in a local emergency energy
3     plan submitted to a municipality in accordance with a local
4     emergency energy plan ordinance that is adopted under
5     Section 11-21.5-5 of the Illinois Municipal Code.
6         (kk) Information and data concerning the distribution
7     of surcharge moneys collected and remitted by wireless
8     carriers under the Wireless Emergency Telephone Safety
9     Act.
10         (ll) Vulnerability assessments, security measures, and
11     response policies or plans that are designed to identify,
12     prevent, or respond to potential attacks upon a community's
13     population or systems, facilities, or installations, the
14     destruction or contamination of which would constitute a
15     clear and present danger to the health or safety of the
16     community, but only to the extent that disclosure could
17     reasonably be expected to jeopardize the effectiveness of
18     the measures or the safety of the personnel who implement
19     them or the public. Information exempt under this item may
20     include such things as details pertaining to the
21     mobilization or deployment of personnel or equipment, to
22     the operation of communication systems or protocols, or to
23     tactical operations.
24         (mm) Maps and other records regarding the location or
25     security of a utility's generation, transmission,
26     distribution, storage, gathering, treatment, or switching
27     facilities.
28         (nn) Law enforcement officer identification
29     information or driver identification information compiled
30     by a law enforcement agency or the Department of
31     Transportation under Section 11-212 of the Illinois
32     Vehicle Code.
33         (oo) Records and information provided to a residential
34     health care facility resident sexual assault and death



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1     review team or the Residential Health Care Facility
2     Resident Sexual Assault and Death Review Teams Executive
3     Council under the Residential Health Care Facility
4     Resident Sexual Assault and Death Review Team Act.
5         (pp) Information contained in the database certified
6     by the Division of Financial Institutions of the Department
7     of Financial and Professional Regulation in accordance
8     with Section 2-15 of the Payday Loan Reform Act.
9     (2) This Section does not authorize withholding of
10 information or limit the availability of records to the public,
11 except as stated in this Section or otherwise provided in this
12 Act.
13 (Source: P.A. 92-16, eff. 6-28-01; 92-241, eff. 8-3-01; 92-281,
14 eff. 8-7-01; 92-645, eff. 7-11-02; 92-651, eff. 7-11-02; 93-43,
15 eff. 7-1-03; 93-209, eff. 7-18-03; 93-237, eff. 7-22-03;
16 93-325, eff. 7-23-03, 93-422, eff. 8-5-03; 93-577, eff.
17 8-21-03; 93-617, eff. 12-9-03.)
18     Section 90-5. The Financial Institutions Code is amended by
19 changing Sections 4 and 6 as follows:
20     (20 ILCS 1205/4)  (from Ch. 17, par. 104)
21     Sec. 4. As used in this Act:
22     (a) "Department" means the Department of Financial
23 Institutions.
24     (b) "Director" means the Director of Financial
25 Institutions.
26     (c) "Person" means any individual, partnership, joint
27 venture, trust, estate, firm, corporation, association or
28 cooperative society or association.
29     (d) "Financial institutions" means ambulatory and
30 community currency exchanges, credit unions, guaranteed credit
31 unions, persons engaged in the business of transmitting money
32 to foreign countries or buying and selling foreign money,



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1 pawners' societies, title insuring or guaranteeing companies,
2 and persons engaged in the business of making loans of $800 or
3 less, all as respectively defined in the laws referred to in
4 Section 6 of this Act. The term includes sales finance
5 agencies, as defined in the "Sales Finance Agency Act", enacted
6 by the 75th General Assembly.
7     (e) "Payday loan" has the meaning ascribed to that term in
8 the Payday Loan Reform Act.
9 (Source: Laws 1967, p. 2211.)
10     (20 ILCS 1205/6)  (from Ch. 17, par. 106)
11     Sec. 6. In addition to the duties imposed elsewhere in this
12 Act, the Department has the following powers:
13     (1) To exercise the rights, powers and duties vested by law
14 in the Auditor of Public Accounts under "An Act to provide for
15 the incorporation, management and regulation of pawners'
16 societies and limiting the rate of compensation to be paid for
17 advances, storage and insurance on pawns and pledges and to
18 allow the loaning of money upon personal property", approved
19 March 29, 1899, as amended.
20     (2) To exercise the rights, powers and duties vested by law
21 in the Auditor of Public Accounts under "An Act in relation to
22 the definition, licensing and regulation of community currency
23 exchanges and ambulatory currency exchanges, and the operators
24 and employees thereof, and to make an appropriation therefor,
25 and to provide penalties and remedies for the violation
26 thereof", approved June 30, 1943, as amended.
27     (3) To exercise the rights, powers, and duties vested by
28 law in the Auditor of Public Accounts under "An Act in relation
29 to the buying and selling of foreign exchange and the
30 transmission or transfer of money to foreign countries",
31 approved June 28, 1923, as amended.
32     (4) To exercise the rights, powers, and duties vested by
33 law in the Auditor of Public Accounts under "An Act to provide



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1 for and regulate the business of guaranteeing titles to real
2 estate by corporations", approved May 13, 1901, as amended.
3     (5) To exercise the rights, powers and duties vested by law
4 in the Department of Insurance under "An Act to define,
5 license, and regulate the business of making loans of eight
6 hundred dollars or less, permitting an interest charge thereon
7 greater than otherwise allowed by law, authorizing and
8 regulating the assignment of wages or salary when taken as
9 security for any such loan or as consideration for a payment of
10 eight hundred dollars or less, providing penalties, and to
11 repeal Acts therein named", approved July 11, 1935, as amended.
12     (6) To administer and enforce "An Act to license and
13 regulate the keeping and letting of safety deposit boxes,
14 safes, and vaults, and the opening thereof, and to repeal a
15 certain Act therein named", approved June 13, 1945, as amended.
16     (7) Whenever the Department is authorized or required by
17 law to consider some aspect of criminal history record
18 information for the purpose of carrying out its statutory
19 powers and responsibilities, then, upon request and payment of
20 fees in conformance with the requirements of Section 2605-400
21 of the Department of State Police Law (20 ILCS 2605/2605-400),
22 the Department of State Police is authorized to furnish,
23 pursuant to positive identification, such information
24 contained in State files as is necessary to fulfill the
25 request.
26     (8) To administer the Payday Loan Reform Act.
27 (Source: P.A. 91-239, eff. 1-1-00.)
28     Section 90-10. The Consumer Installment Loan Act is amended
29 by changing Section 21 as follows:
30     (205 ILCS 670/21)  (from Ch. 17, par. 5427)
31     Sec. 21. Application of act. This Act does not apply to any
32 person, partnership, association, limited liability company,



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1 or corporation doing business under and as permitted by any law
2 of this State or of the United States relating to banks,
3 savings and loan associations, savings banks, credit unions, or
4 licensees under the Residential Mortgage License Act for
5 residential mortgage loans made pursuant to that Act. This Act
6 does not apply to business loans. This Act does not apply to
7 payday loans.
8 (Source: P.A. 90-437, eff. 1-1-98.)
9     Section 90-15. The Consumer Fraud and Deceptive Business
10 Practices Act is amended by changing Section 2Z as follows:
11     (815 ILCS 505/2Z)  (from Ch. 121 1/2, par. 262Z)
12     Sec. 2Z. Violations of other Acts. Any person who knowingly
13 violates the Automotive Repair Act, the Home Repair and
14 Remodeling Act, the Dance Studio Act, the Physical Fitness
15 Services Act, the Hearing Instrument Consumer Protection Act,
16 the Illinois Union Label Act, the Job Referral and Job Listing
17 Services Consumer Protection Act, the Travel Promotion
18 Consumer Protection Act, the Credit Services Organizations
19 Act, the Automatic Telephone Dialers Act, the Pay-Per-Call
20 Services Consumer Protection Act, the Telephone Solicitations
21 Act, the Illinois Funeral or Burial Funds Act, the Cemetery
22 Care Act, the Safe and Hygienic Bed Act, the Pre-Need Cemetery
23 Sales Act, the High Risk Home Loan Act, the Payday Loan Reform
24 Act, subsection (a) or (b) of Section 3-10 of the Cigarette Tax
25 Act, subsection (a) or (b) of Section 3-10 of the Cigarette Use
26 Tax Act, the Electronic Mail Act, paragraph (6) of subsection
27 (k) of Section 6-305 of the Illinois Vehicle Code, or the
28 Automatic Contract Renewal Act commits an unlawful practice
29 within the meaning of this Act.
30 (Source: P.A. 92-426, eff. 1-1-02; 93-561, eff. 1-1-04; 93-950,
31 eff. 1-1-05.)



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Article 99. Effective Date

2     Section 99. Effective date. This Act takes effect 90 days
3 after becoming law.".