Rep. William Davis

Filed: 2/21/2013





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2    AMENDMENT NO. ______. Amend House Bill 101 as follows:
3on page 5, line 8, by replacing "4" with "0.05, 4,"; and
4on page 5, immediately below line 8, by inserting the
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



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1    administering the provisions of this Act.
2        (2) To issue orders for the purpose of administering
3    the provisions of this Act and any rule promulgated in
4    accordance with this Act.
5        (2.5) To order restitution to consumers suffering
6    damages resulting from violations of this Act, rules
7    promulgated in accordance with this Act, or other laws or
8    regulations related to the operation of a pawnshop.
9        (3) To appoint hearing officers and to hire employees
10    or to contract with appropriate persons to execute any of
11    the powers granted to the Secretary under this Section for
12    the purpose of administering this Act and any rule
13    promulgated in accordance with this Act.
14        (4) To subpoena witnesses, to compel their attendance,
15    to administer an oath, to examine any person under oath,
16    and to require the production of any relevant books,
17    papers, accounts, and documents in the course of and
18    pursuant to any investigation being conducted, or any
19    action being taken, by the Secretary in respect of any
20    matter relating to the duties imposed upon, or the powers
21    vested in, the Secretary under the provisions of this Act
22    or any rule promulgated in accordance with this Act.
23        (5) To conduct hearings.
24        (6) To impose civil penalties graduated up to $10,000
25    $1,000 against any person for each day that person violates
26    violation of any provision of this Act, any rule



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1    promulgated in accordance with this Act, any State or
2    federal law affecting pawnbrokers, or any order of the
3    Secretary based upon the seriousness of the violation.
4        (6.5) To initiate, through the Attorney General,
5    injunction proceedings whenever it appears to the
6    Secretary that any person, whether licensed under this Act
7    or not, is engaged or about to engage in an act or practice
8    that constitutes or will constitute a violation of this Act
9    or any rule prescribed under the authority of this Act. The
10    Secretary may, in his or her discretion, through the
11    Attorney General, apply for an injunction, and upon a
12    proper showing, any circuit court may enter a permanent or
13    preliminary injunction or a temporary restraining order
14    without bond to enforce this Act in addition to the
15    penalties and other remedies provided for in this Act.
16        (7) To issue a cease and desist order and, for
17    violations of this Act, any order issued by the Secretary
18    pursuant to this Act, any rule promulgated in accordance
19    with this Act, or any other applicable law in connection
20    with the operation of a pawnshop, to suspend a license
21    issued under this Act for up to 30 days.
22        (8) To determine compliance with applicable law and
23    rules related to the operation of pawnshops and to verify
24    the accuracy of reports filed with the Secretary, the
25    Secretary, not more than one time every 2 years, may, but
26    is not required to, conduct a routine examination of a



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1    pawnshop, and in addition, the Secretary may examine the
2    affairs of any pawnshop at any time if the Secretary has
3    reasonable cause to believe that unlawful or fraudulent
4    activity is occurring, or has occurred, therein.
5        (9) In response to a complaint, to address any
6    inquiries to any pawnshop in relation to its affairs, and
7    it shall be the duty of the pawnshop to promptly reply in
8    writing to such inquiries. The Secretary may also require
9    reports or information from any pawnshop at any time the
10    Secretary may deem desirable.
11        (10) To revoke a license issued under this Act if the
12    Secretary determines that (a) a licensee has been convicted
13    of a felony in connection with the operations of a
14    pawnshop; (b) a licensee knowingly, recklessly, or
15    continuously violated this Act or State or federal law or
16    regulation, a rule promulgated in accordance with this Act,
17    or any order of the Secretary; (c) a fact or condition
18    exists that, if it had existed or had been known at the
19    time of the original application, would have justified
20    license refusal; (d) the licensee knowingly submits
21    materially false or misleading documents with the intent to
22    deceive the Secretary or any other party; or (e) the
23    licensee is unable or ceases to continue to operate the
24    pawnshop.
25        (10.2) To remove or prohibit the employment of any
26    officer, director, employee, or agent of the pawnshop who



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1    engages in or has engaged in unlawful activities that
2    relate to the operation of a pawnshop.
3        (10.7) To prohibit the hiring of employees who have
4    been convicted of a financial crime or any crime involving
5    breach of trust who do not meet exceptions as established
6    by rule of the Secretary.
7        (11) Following license revocation, to take possession
8    and control of a pawnshop for the purpose of examination,
9    reorganization, or liquidation through receivership and to
10    appoint a receiver, which may be the Secretary, a pawnshop,
11    or another suitable person.
12    (b) After consultation with local law enforcement
13officers, the Attorney General, and the industry, the Secretary
14may by rule require that pawnbrokers operate video camera
15surveillance systems to record photographic representations of
16customers and retain the tapes produced for up to 30 days.
17    (c) Pursuant to rule, the Secretary shall issue licenses on
18an annual or multi-year basis for operating a pawnshop. Any
19person currently operating or who has operated a pawnshop in
20this State during the 2 years preceding the effective date of
21this amendatory Act of 1997 shall be issued a license upon
22payment of the fee required under this Act. New applicants
23shall meet standards for a license as established by the
24Secretary. Except with the prior written consent of the
25Secretary, no individual, either a new applicant or a person
26currently operating a pawnshop, may be issued a license to



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1operate a pawnshop if the individual has been convicted of a
2felony or of any criminal offense relating to dishonesty or
3breach of trust in connection with the operations of a
4pawnshop. The Secretary shall establish license fees. The fees
5shall not exceed the amount reasonably required for
6administration of this Act. It shall be unlawful to operate a
7pawnshop without a license issued by the Secretary.
8    (d) In addition to license fees, the Secretary may, by
9rule, establish fees in connection with a review, approval, or
10provision of a service, and levy a reasonable charge to recover
11the cost of the review, approval, or service (such as a change
12in control, change in location, or renewal of a license). The
13Secretary may also levy a reasonable charge to recover the cost
14of an examination if the Secretary determines that unlawful or
15fraudulent activity has occurred. The Secretary may require
16payment of the fees and charges provided in this Act by
17certified check, money order, an electronic transfer of funds,
18or an automatic debit of an account.
19    (e) The Pawnbroker Regulation Fund is established as a
20special fund in the State treasury. Moneys collected under this
21Act shall be deposited into the Fund and used for the
22administration of this Act. In the event that General Revenue
23Funds are appropriated to the Department of Financial and
24Professional Regulation for the initial implementation of this
25Act, the Governor may direct the repayment from the Pawnbroker
26Regulation Fund to the General Revenue Fund of such advance in



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1an amount not to exceed $30,000. The Governor may direct this
2interfund transfer at such time as he deems appropriate by
3giving appropriate written notice. Moneys in the Pawnbroker
4Regulation Fund may be transferred to the Professions Indirect
5Cost Fund, as authorized under Section 2105-300 of the
6Department of Professional Regulation Law of the Civil
7Administrative Code of Illinois.
8    (f) The Secretary may, by rule, require all pawnshops to
9provide for the expenses that would arise from the
10administration of the receivership of a pawnshop under this Act
11through the assessment of fees, the requirement to pledge
12surety bonds, or such other methods as determined by the
14    (g) All final administrative decisions of the Secretary
15under this Act shall be subject to judicial review pursuant to
16the provisions of the Administrative Review Law. For matters
17involving administrative review, venue shall be in either
18Sangamon County or Cook County.
19(Source: P.A. 96-1038, eff. 7-14-10; 96-1365, eff. 7-28-10;
2097-333, eff. 8-12-11.)".