HB0101 EnrolledLRB098 04899 MGM 34927 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Pawnbroker Regulation Act is amended by
5changing Sections 0.05 and 4 as follows:
6    (205 ILCS 510/0.05)
7    Sec. 0.05. Administration of Act.
8    (a) This Act shall be administered by the Secretary of
9Financial and Professional Regulation, and, beginning on July
1028, 2010 (the effective date of Public Act 96-1365), all
11references in this Act to the Commissioner of Banks and Real
12Estate are deemed, in appropriate contexts, to be references to
13the Secretary of Financial and Professional Regulation, who
14shall have all of the following powers and duties in
15administering this Act:
16        (1) To promulgate reasonable rules for the purpose of
17    administering the provisions of this Act.
18        (2) To issue orders for the purpose of administering
19    the provisions of this Act and any rule promulgated in
20    accordance with this Act.
21        (2.5) To order restitution to consumers suffering
22    damages resulting from violations of this Act, rules
23    promulgated in accordance with this Act, or other laws or



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1    regulations related to the operation of a pawnshop.
2        (3) To appoint hearing officers and to hire employees
3    or to contract with appropriate persons to execute any of
4    the powers granted to the Secretary under this Section for
5    the purpose of administering this Act and any rule
6    promulgated in accordance with this Act.
7        (4) To subpoena witnesses, to compel their attendance,
8    to administer an oath, to examine any person under oath,
9    and to require the production of any relevant books,
10    papers, accounts, and documents in the course of and
11    pursuant to any investigation being conducted, or any
12    action being taken, by the Secretary in respect of any
13    matter relating to the duties imposed upon, or the powers
14    vested in, the Secretary under the provisions of this Act
15    or any rule promulgated in accordance with this Act.
16        (5) To conduct hearings.
17        (6) To impose civil penalties graduated up to $10,000
18    $1,000 against any person for each day that person violates
19    violation of any provision of this Act, any rule
20    promulgated in accordance with this Act, any State or
21    federal law affecting pawnbrokers, or any order of the
22    Secretary based upon the seriousness of the violation.
23        (6.5) To initiate, through the Attorney General,
24    injunction proceedings whenever it appears to the
25    Secretary that any person, whether licensed under this Act
26    or not, is engaged or about to engage in an act or practice



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



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1    writing to such inquiries. The Secretary may also require
2    reports or information from any pawnshop at any time the
3    Secretary may deem desirable.
4        (10) To revoke a license issued under this Act if the
5    Secretary determines that (a) a licensee has been convicted
6    of a felony in connection with the operations of a
7    pawnshop; (b) a licensee knowingly, recklessly, or
8    continuously violated this Act or State or federal law or
9    regulation, a rule promulgated in accordance with this Act,
10    or any order of the Secretary; (c) a fact or condition
11    exists that, if it had existed or had been known at the
12    time of the original application, would have justified
13    license refusal; (d) the licensee knowingly submits
14    materially false or misleading documents with the intent to
15    deceive the Secretary or any other party; or (e) the
16    licensee is unable or ceases to continue to operate the
17    pawnshop.
18        (10.2) To remove or prohibit the employment of any
19    officer, director, employee, or agent of the pawnshop who
20    engages in or has engaged in unlawful activities that
21    relate to the operation of a pawnshop.
22        (10.7) To prohibit the hiring of employees who have
23    been convicted of a financial crime or any crime involving
24    breach of trust who do not meet exceptions as established
25    by rule of the Secretary.
26        (11) Following license revocation, to take possession



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1    and control of a pawnshop for the purpose of examination,
2    reorganization, or liquidation through receivership and to
3    appoint a receiver, which may be the Secretary, a pawnshop,
4    or another suitable person.
5    (b) After consultation with local law enforcement
6officers, the Attorney General, and the industry, the Secretary
7may by rule require that pawnbrokers operate video camera
8surveillance systems to record photographic representations of
9customers and retain the tapes produced for up to 30 days.
10    (c) Pursuant to rule, the Secretary shall issue licenses on
11an annual or multi-year basis for operating a pawnshop. Any
12person currently operating or who has operated a pawnshop in
13this State during the 2 years preceding the effective date of
14this amendatory Act of 1997 shall be issued a license upon
15payment of the fee required under this Act. New applicants
16shall meet standards for a license as established by the
17Secretary. Except with the prior written consent of the
18Secretary, no individual, either a new applicant or a person
19currently operating a pawnshop, may be issued a license to
20operate a pawnshop if the individual has been convicted of a
21felony or of any criminal offense relating to dishonesty or
22breach of trust in connection with the operations of a
23pawnshop. The Secretary shall establish license fees. The fees
24shall not exceed the amount reasonably required for
25administration of this Act. It shall be unlawful to operate a
26pawnshop without a license issued by the Secretary.



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



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1    (f) The Secretary may, by rule, require all pawnshops to
2provide for the expenses that would arise from the
3administration of the receivership of a pawnshop under this Act
4through the assessment of fees, the requirement to pledge
5surety bonds, or such other methods as determined by the
7    (g) All final administrative decisions of the Secretary
8under this Act shall be subject to judicial review pursuant to
9the provisions of the Administrative Review Law. For matters
10involving administrative review, venue shall be in either
11Sangamon County or Cook County.
12(Source: P.A. 96-1038, eff. 7-14-10; 96-1365, eff. 7-28-10;
1397-333, eff. 8-12-11.)
14    (205 ILCS 510/4)  (from Ch. 17, par. 4654)
15    Sec. 4. Every pawnbroker shall, at the time of making any
16advancement or loan, deliver to the person pawning or pledging
17any property, a memorandum, contract, or note signed by him or
18her containing an accurate account and description, in the
19English language, of all the goods, articles or other things
20pawned or pledged, the amount of money, value of things loaned
21thereon, the time of pledging the same, the rate of interest to
22be paid on the loan, the name and residence of the person
23making the pawn or pledge, and the amount of any fees as
24specified in Section 2 of this Act.
25(Source: P.A. 87-802.)



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1    Section 99. Effective date. This Act takes effect upon
2becoming law.