Full Text of HB0779 103rd General Assembly
HB0779enr 103RD GENERAL ASSEMBLY | | | HB0779 Enrolled | | LRB103 04371 RPS 49377 b |
|
| 1 | | AN ACT concerning State government. | 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly: | 4 | | Article 1. General Provisions | 5 | | Section 1-1. Short title. This Act may be cited as the | 6 | | Pawnbroker Regulation Act of 2023. | 7 | | Section 1-5. Definitions. | 8 | | As used in this Act: | 9 | | "Applicant" means a person applying for a license pursuant | 10 | | to this Act. | 11 | | "Department" means the Department of Financial and | 12 | | Professional Regulation. | 13 | | "Licensee" means a person licensed pursuant to this Act. | 14 | | "Pawn" means the advance of money on the deposit or pledge | 15 | | of physically delivered personal property, other than property | 16 | | the ownership of which is subject to a legal dispute or other | 17 | | exempt property or instruments. | 18 | | "Pawnbroker" means every individual or business entity | 19 | | that: | 20 | | (1) advances money on the pledge of tangible personal | 21 | | property, other than securities, printed evidence of | 22 | | indebtedness, or printed evidence of ownership of the |
| | | HB0779 Enrolled | - 2 - | LRB103 04371 RPS 49377 b |
|
| 1 | | personal property; or | 2 | | (2) deals in the purchase of personal property on the | 3 | | condition of selling the property back again at a | 4 | | stipulated price. | 5 | | "Pawn customer" means a person who pawns or pledges and | 6 | | physically delivers personal property in exchange for money. | 7 | | "Secretary" means the Secretary of Financial and | 8 | | Professional Regulation, or his or her designee, including the | 9 | | Director of the Division of Banking of the Department of | 10 | | Financial and Professional Regulation. | 11 | | Article 5. Licensure | 12 | | Section 5-1. Scope; number of pawnbroker licenses. | 13 | | (a) It is unlawful for any person to operate as a | 14 | | pawnbroker in Illinois except as authorized by this Act and | 15 | | without first having obtained a license in accordance with | 16 | | this Act. | 17 | | (b) The business of a pawnbroker does not include advances | 18 | | of money secured by a deposit or pledge of title to personal | 19 | | property or motor vehicles. | 20 | | (c) There shall not be more than 250 active pawnbroker | 21 | | licenses at any one time within the State of Illinois. There | 22 | | shall not be more than 150 active pawnbroker licenses issued | 23 | | for the counties of Cook, DuPage, Kane, Lake, McHenry, and | 24 | | Will at any one time. |
| | | HB0779 Enrolled | - 3 - | LRB103 04371 RPS 49377 b |
|
| 1 | | Section 5-5. Licensee name. | 2 | | (a) No person, partnership, association, corporation, | 3 | | limited liability company, or other entity engaged in the | 4 | | business regulated by this Act shall operate the business | 5 | | under a name other than the real names of the entity and | 6 | | individuals conducting the business. The business may in | 7 | | addition operate under an assumed corporate name pursuant to | 8 | | the Business Corporation Act of 1983, an assumed limited | 9 | | liability company name pursuant to the Limited Liability | 10 | | Company Act, or an assumed business name pursuant to the | 11 | | Assumed Business Name Act. | 12 | | (b) It is unlawful for an individual or business entity to | 13 | | conduct business in this State using the word "pawn", | 14 | | "pawnshop", or "pawnbroker" in connection with the business or | 15 | | to transact business in this State in a manner that has a | 16 | | substantial likelihood of misleading the public by implying | 17 | | that the business is a pawnshop, without first obtaining a | 18 | | license from the Secretary. | 19 | | Section 5-10. Application process; investigation; fees. | 20 | | (a) The Secretary shall issue a license upon completion of | 21 | | all of the following: | 22 | | (1) The filing of an application for license with the | 23 | | Secretary or the Nationwide Multistate Licensing System | 24 | | and Registry as approved by the Secretary. |
| | | HB0779 Enrolled | - 4 - | LRB103 04371 RPS 49377 b |
|
| 1 | | (2) The filing with the Secretary of a listing of | 2 | | judgments entered against, and bankruptcy petitions by, | 3 | | the license applicant for the preceding 10 years. | 4 | | (3) The payment, in certified funds, of the following | 5 | | investigation and application fees: | 6 | | (A) the fees for licensure shall be a $2,000 | 7 | | application fee and an additional $800 fee for | 8 | | investigation. These fees are nonrefundable; and | 9 | | (B) the fee for an application renewal shall be | 10 | | $2,000. The fee is nonrefundable. | 11 | | (4) An investigation of the application, which | 12 | | investigation must allow the Secretary to issue positive | 13 | | findings stating that the financial responsibility, | 14 | | experience, character, and general fitness of the license | 15 | | applicant and of the members thereof if the license | 16 | | applicant is a partnership or association, of the officers | 17 | | and directors thereof if the license applicant is a | 18 | | corporation, and of the managers and members that retain | 19 | | any authority or responsibility under the operating | 20 | | agreement if the license applicant is a limited liability | 21 | | company, are such as to command the confidence of the | 22 | | community and to warrant belief that the business will be | 23 | | operated honestly, fairly, and efficiently within the | 24 | | purpose of this Act; if the Secretary does not so find, he | 25 | | or she shall not issue the license, and he or she shall | 26 | | notify the license applicant of the denial. |
| | | HB0779 Enrolled | - 5 - | LRB103 04371 RPS 49377 b |
|
| 1 | | The Secretary may impose conditions on a license if the | 2 | | Secretary determines that those conditions are necessary or | 3 | | appropriate. These conditions shall be imposed in writing and | 4 | | shall continue in effect for the period prescribed by the | 5 | | Secretary. | 6 | | (b) All licenses shall be issued to the license applicant. | 7 | | Upon issuance of the license, a pawnbroker licensee shall be | 8 | | authorized to engage in the business regulated by this Act. | 9 | | The license shall remain in full force and effect until it | 10 | | expires without renewal, is surrendered by the licensee, or | 11 | | revoked or suspended. | 12 | | Section 5-15. Application form. | 13 | | (a) Application for a pawnbroker license must be made in | 14 | | accordance with Section 5-20 and, if applicable, in accordance | 15 | | with requirements of the Nationwide Multistate Licensing | 16 | | System and Registry. The application shall be in writing, | 17 | | under oath or affirmation, and on a form obtained from and | 18 | | prescribed by the Secretary, or may be submitted | 19 | | electronically, with attestation, to the Nationwide Multistate | 20 | | Licensing System and Registry. | 21 | | (b) The application shall contain the name, complete | 22 | | business, and residential address or addresses of the license | 23 | | applicant. If the license applicant is a partnership, | 24 | | association, corporation, or other form of business | 25 | | organization, the application shall contain the names and |
| | | HB0779 Enrolled | - 6 - | LRB103 04371 RPS 49377 b |
|
| 1 | | complete business and residential addresses of each member, | 2 | | director, and principal officer thereof. The application shall | 3 | | also include a description of the activities of the license | 4 | | applicant in such detail and for such periods as the Secretary | 5 | | may require, including all of the following: | 6 | | (1) an affirmation of financial solvency noting such | 7 | | capitalization requirements as may be required by the | 8 | | Secretary and access to such credit as may be required by | 9 | | the Secretary; | 10 | | (2) an affirmation that the license applicant or its | 11 | | members, directors, or principals, as may be appropriate, | 12 | | are at least 18 years of age; | 13 | | (3) information as to the character, fitness, | 14 | | financial and business responsibility, background, | 15 | | experience, and criminal record of any: | 16 | | (A) person, entity, or ultimate equitable owner | 17 | | that owns or controls, directly or indirectly, 10% or | 18 | | more of any class of stock of the license applicant; | 19 | | (B) person, entity, or ultimate equitable owner | 20 | | that is not a depository institution, as defined in | 21 | | Section 1007.50 of the Savings Bank Act, that lends, | 22 | | provides, or infuses, directly or indirectly, in any | 23 | | way, funds to or into a license applicant in an amount | 24 | | equal to or more than 10% of the license applicant's | 25 | | net worth; | 26 | | (C) person, entity, or ultimate equitable owner |
| | | HB0779 Enrolled | - 7 - | LRB103 04371 RPS 49377 b |
|
| 1 | | that controls, directly or indirectly, the election of | 2 | | 25% or more of the members of the board of directors of | 3 | | a license applicant; or | 4 | | (D) person, entity, or ultimate equitable owner | 5 | | that the Secretary finds influences management of the | 6 | | license applicant; the provisions of this subsection | 7 | | shall not apply to a public official serving on the | 8 | | board of directors of a State guaranty agency; | 9 | | (4) upon written request by the licensee and | 10 | | notwithstanding the provisions of paragraphs (1) and (2) | 11 | | of this subsection, the Secretary may permit the licensee | 12 | | to omit all or part of the information required by those | 13 | | paragraphs if, instead of the omitted information, the | 14 | | licensee submits an affidavit stating that the information | 15 | | submitted on the licensee's previous renewal application | 16 | | is still true and accurate; then the Secretary may adopt | 17 | | rules prescribing the form and content of the affidavit | 18 | | that are necessary to accomplish the purposes of this | 19 | | Section; and | 20 | | (5) such other information as required by rules of the | 21 | | Secretary. | 22 | | Section 5-20. Pawnbroker license application and issuance. | 23 | | (a) Applicants for a license shall apply in a form | 24 | | prescribed by the Secretary. Each form shall contain content | 25 | | as set forth by rule, regulation, instruction, or procedure of |
| | | HB0779 Enrolled | - 8 - | LRB103 04371 RPS 49377 b |
|
| 1 | | the Department or Secretary and may be changed or updated as | 2 | | necessary by the Department or Secretary in order to carry out | 3 | | the purposes of this Act. | 4 | | (b) In order to fulfill the purposes of this Act, the | 5 | | Secretary is authorized to establish relationships or | 6 | | contracts with the Nationwide Multistate Licensing System and | 7 | | Registry or other entities designated by the Nationwide | 8 | | Multistate Licensing System and Registry to collect and | 9 | | maintain records and process transaction fees or other fees | 10 | | related to licensees or other persons subject to this Act. | 11 | | (c) In connection with an application for licensing, the | 12 | | applicant may be required, at a minimum, to furnish to the | 13 | | Nationwide Multistate Licensing System and Registry | 14 | | information concerning the applicant's identity, including: | 15 | | (1) fingerprints for submission to the Federal Bureau | 16 | | of Investigation or any governmental agency or entity | 17 | | authorized to receive such information for a State, | 18 | | national, and international criminal history background | 19 | | check; and | 20 | | (2) personal history and experience in a form | 21 | | prescribed by the Nationwide Multistate Licensing System | 22 | | and Registry, including the submission of authorization | 23 | | for the Nationwide Multistate Licensing System and | 24 | | Registry and the Secretary to obtain: | 25 | | (A) an independent credit report obtained from a | 26 | | consumer reporting agency described in Section 603(p) |
| | | HB0779 Enrolled | - 9 - | LRB103 04371 RPS 49377 b |
|
| 1 | | of the Fair Credit Reporting Act, 15 U.S.C. 1681a(p); | 2 | | and | 3 | | (B) information related to any administrative, | 4 | | civil, or criminal findings by any governmental | 5 | | jurisdiction. | 6 | | (d) For the purposes of this Section, and in order to | 7 | | reduce the points of contact that the Federal Bureau of | 8 | | Investigation may have to maintain for purposes of subsection | 9 | | (c), the Secretary may use the Nationwide Multistate Licensing | 10 | | System and Registry as a channeling agent for requesting | 11 | | information from and distributing information to the federal | 12 | | Department of Justice or any governmental agency. | 13 | | (e) For the purposes of this Section, and in order to | 14 | | reduce the points of contact that the Secretary may have to | 15 | | maintain for purposes of paragraph (2) of subsection (c), the | 16 | | Secretary may use the Nationwide Multistate Licensing System | 17 | | and Registry as a channeling agent for requesting and | 18 | | distributing information to and from any source as directed by | 19 | | the Secretary. | 20 | | Section 5-25. Prohibited acts and practices for licensees. | 21 | | (a) It is a violation of this Act for a licensee subject to | 22 | | this Act to: | 23 | | (1) fail to file with the Secretary or Nationwide | 24 | | Multistate Licensing System and Registry, as applicable, | 25 | | when due, any report or reports that it is required to file |
| | | HB0779 Enrolled | - 10 - | LRB103 04371 RPS 49377 b |
|
| 1 | | under any of the provisions of this Act; | 2 | | (2) commit a crime against the law of this State, any | 3 | | other state, or of the United States involving moral | 4 | | turpitude or fraudulent or dishonest dealing, and that no | 5 | | final judgment has been entered against it in a civil | 6 | | action upon grounds of fraud, misrepresentation, or deceit | 7 | | that has not been previously reported to the Secretary; | 8 | | (3) engage in any conduct that would be cause for | 9 | | denial of a license; | 10 | | (4) become insolvent; | 11 | | (5) submit an application for a license under this Act | 12 | | that contains a material misstatement; | 13 | | (6) demonstrate by course of conduct, negligence, or | 14 | | incompetence in performing any act for which it is | 15 | | required to hold a license under this Act; | 16 | | (7) fail to advise the Secretary in writing or the | 17 | | Nationwide Multistate Licensing System and Registry, as | 18 | | applicable, of any changes to the information submitted on | 19 | | the most recent application for license or averments of | 20 | | record within 30 days after the change; the written notice | 21 | | must be signed in the same form as the application for the | 22 | | license being amended; | 23 | | (8) fail to comply with the provisions of this Act and | 24 | | with any lawful order, rule, or regulation made or issued | 25 | | under the provisions of this Act; | 26 | | (9) fail to submit to periodic examination by the |
| | | HB0779 Enrolled | - 11 - | LRB103 04371 RPS 49377 b |
|
| 1 | | Secretary as required by this Act; and | 2 | | (10) fail to advise the Secretary in writing of | 3 | | judgments entered against and bankruptcy petitions by the | 4 | | license applicant within 5 days after the occurrence. | 5 | | (b) A licensee who fails to comply with this Section or | 6 | | otherwise violates any of the provisions of this Section shall | 7 | | be subject to the penalties in Section 30-30. | 8 | | Section 5-30. Refusal to issue license. The Secretary | 9 | | shall refuse to issue or renew a license if: | 10 | | (1) it is determined that the applicant is not in | 11 | | compliance with any provisions of this Act; | 12 | | (2) there is substantial continuity between the | 13 | | applicant and any violator of this Act; or | 14 | | (3) the Secretary cannot make the findings specified | 15 | | in subsection (a) of Section 5-10. | 16 | | Section 5-35. License issuance and renewal; fees. | 17 | | (a) Licenses shall be renewed every year using the common | 18 | | renewal date of the Nationwide Multistate Licensing System and | 19 | | Registry, as adopted by the Secretary. Properly completed | 20 | | renewal application forms and filing fees may be received by | 21 | | the Secretary 60 days before the license expiration date, but, | 22 | | to be deemed timely, the completed renewal application forms | 23 | | and filing fees must be received by the Secretary no later than | 24 | | 30 days before the license expiration date. |
| | | HB0779 Enrolled | - 12 - | LRB103 04371 RPS 49377 b |
|
| 1 | | (b) It shall be the responsibility of each licensee to | 2 | | accomplish renewal of its license. Failure by a licensee to | 3 | | submit a properly completed renewal application form and fees | 4 | | in a timely fashion, absent a written extension from the | 5 | | Secretary, shall result in the license becoming inactive. | 6 | | (c) No activity regulated by this Act shall be conducted | 7 | | by the licensee when a license becomes inactive. An inactive | 8 | | license may be reactivated by the Secretary upon payment of | 9 | | the renewal fee and payment of a reactivation fee equal to the | 10 | | renewal fee. | 11 | | (d) A licensee ceasing an activity regulated by this Act | 12 | | and desiring to no longer be licensed shall so inform the | 13 | | Secretary in writing and, at the same time, convey any license | 14 | | issued and all other symbols or indicia of licensure. The | 15 | | licensee shall include a plan for the withdrawal from | 16 | | regulated business, including a timetable for the disposition | 17 | | of the business, and comply with the surrender guidelines or | 18 | | requirements of the Secretary. Upon receipt of such written | 19 | | notice, the Secretary shall post the cancellation or issue a | 20 | | certified statement canceling the license. | 21 | | (e) The expenses of administering this Act, including | 22 | | investigations and examinations provided for in this Act, | 23 | | shall be borne by and assessed against entities regulated by | 24 | | this Act. Subject to the limitations set forth in Section | 25 | | 5-10, the Department shall establish fees by rule in at least | 26 | | the following categories: |
| | | HB0779 Enrolled | - 13 - | LRB103 04371 RPS 49377 b |
|
| 1 | | (1) investigation of licensees and license | 2 | | applicant fees; | 3 | | (2) examination fees; | 4 | | (3) contingent fees; and | 5 | | (4) such other categories as may be required to | 6 | | administer this Act. | 7 | | Article 10. Supervision | 8 | | Section 10-5. Functions; powers; duties. | 9 | | The functions, powers, and duties of the Secretary shall | 10 | | include the following: | 11 | | (1) to issue or refuse to issue any license as | 12 | | provided by this Act; | 13 | | (2) to revoke or suspend for cause any license issued | 14 | | under this Act; | 15 | | (3) to keep records of all licenses issued under this | 16 | | Act; | 17 | | (4) to receive, consider, investigate, and act upon | 18 | | complaints made by any person in connection with any | 19 | | pawnbroker licensee in this State; | 20 | | (5) to prescribe the forms of and receive: | 21 | | (A) applications for licenses; and | 22 | | (B) all reports and all books and records required | 23 | | to be made by any licensee under this Act; | 24 | | (6) to adopt rules necessary and proper for the |
| | | HB0779 Enrolled | - 14 - | LRB103 04371 RPS 49377 b |
|
| 1 | | administration of this Act; | 2 | | (7) to subpoena documents and witnesses and compel | 3 | | their attendance and production, to administer oaths and | 4 | | affirmations, and to require the production of any books, | 5 | | papers, or other materials relevant to any inquiry | 6 | | authorized by this Act; | 7 | | (8) to issue orders against any person, including, but | 8 | | not limited to, any officer, director, employee, | 9 | | prospective employee, or agent of the licensee, if the | 10 | | Secretary has reasonable cause to believe that an unsafe, | 11 | | unsound, or unlawful practice has occurred, is occurring, | 12 | | or is about to occur; if any person has violated, is | 13 | | violating, or is about to violate any law, rule, or | 14 | | written agreement with the Secretary; or for the purpose | 15 | | of administering the provisions of this Act and any rule | 16 | | adopted in accordance with this Act; | 17 | | (9) to address any inquiries to any licensee, or the | 18 | | officers thereof, in relation to its activities and | 19 | | conditions, or any other matter connected with its | 20 | | affairs, and it shall be the duty of any licensee or person | 21 | | so addressed to promptly reply in writing to those | 22 | | inquiries; the Secretary may also require reports from any | 23 | | licensee at any time the Secretary may deem desirable; | 24 | | (10) to examine the books and records of every | 25 | | licensee under this Act; | 26 | | (11) to enforce provisions of this Act; |
| | | HB0779 Enrolled | - 15 - | LRB103 04371 RPS 49377 b |
|
| 1 | | (12) to levy fees, fines, and charges for services | 2 | | performed in administering this Act; the aggregate of all | 3 | | fees collected by the Secretary on and after the effective | 4 | | date of this Act shall be paid promptly after receipt, | 5 | | accompanied by a detailed statement thereof, into the | 6 | | Pawnbroker Regulation Fund under Section 10-10; the | 7 | | amounts deposited into that Fund shall be used for the | 8 | | ordinary and contingent expenses of the Department; | 9 | | nothing in this Act shall prevent the continuation of the | 10 | | practice of paying expenses involving salaries, | 11 | | retirement, social security, and State-paid insurance of | 12 | | State officers by appropriation from the General Revenue | 13 | | Fund; | 14 | | (13) to appoint examiners, supervisors, experts, and | 15 | | special assistants as needed to effectively and | 16 | | efficiently administer this Act; | 17 | | (14) to conduct hearings for the purpose of: | 18 | | (A) appeals of orders of the Secretary; | 19 | | (B) suspensions or revocations of licenses, or | 20 | | fining of licensees; | 21 | | (C) investigating complaints against licensees; | 22 | | and | 23 | | (D) carrying out the purposes of this Act; | 24 | | (15) to exercise exclusive visitorial power over a | 25 | | licensee unless otherwise authorized by this Act or as | 26 | | vested in the courts; |
| | | HB0779 Enrolled | - 16 - | LRB103 04371 RPS 49377 b |
|
| 1 | | (16) to assign on an emergency basis an examiner or | 2 | | examiners to monitor the affairs of a licensee with | 3 | | whatever frequency the Secretary determines appropriate | 4 | | and to charge the licensee for reasonable and necessary | 5 | | expenses of the Secretary, if in the opinion of the | 6 | | Secretary an emergency exists or appears likely to occur; | 7 | | (17) to impose civil penalties of up to $50 per day | 8 | | against a licensee for failing to respond to a regulatory | 9 | | request or reporting requirement; | 10 | | (18) to enter into agreements in connection with the | 11 | | Nationwide Multistate Licensing System and Registry; and | 12 | | (19) to perform any other lawful acts necessary or | 13 | | desirable to carry out the purposes and provisions of this | 14 | | Act. | 15 | | Section 10-10. Pawnbroker Regulation Fund. The Pawnbroker | 16 | | Regulation Fund, which was established by Public Act 90-477, | 17 | | shall continue to be a special fund in the State treasury. All | 18 | | moneys received by the Secretary under this Act in conjunction | 19 | | with the provisions relating to pawnbrokers shall be deposited | 20 | | into the Pawnbroker Regulation Fund and used for the | 21 | | administration of this Act. Moneys in the Pawnbroker | 22 | | Regulation Fund may be transferred to the Professions Indirect | 23 | | Cost Fund, as authorized under Section 2105-300 of the | 24 | | Department of Professional Regulation Law of the Civil | 25 | | Administrative Code of Illinois. |
| | | HB0779 Enrolled | - 17 - | LRB103 04371 RPS 49377 b |
|
| 1 | | Section 10-15. Examination; prohibited activities. | 2 | | (a) The business affairs of a licensee under this Act | 3 | | shall be examined for compliance with this Act as often as the | 4 | | Secretary deems necessary and proper. The Department may adopt | 5 | | rules with respect to the frequency and manner of examination. | 6 | | The Secretary shall appoint a suitable person to perform such | 7 | | examination. The Secretary and his or her appointees may | 8 | | examine the entire books, records, documents, and operations | 9 | | of each licensee and its subsidiary, affiliate, or agent, and | 10 | | may examine any of the licensee's or its subsidiary's, | 11 | | affiliate's, or agent's officers, directors, employees, and | 12 | | agents under oath or affirmation. | 13 | | (b) The Secretary shall prepare a sufficiently detailed | 14 | | report of each licensee's examination, shall issue a copy of | 15 | | the report to each licensee's principals, officers, or | 16 | | directors, and shall take appropriate steps to ensure | 17 | | correction of violations of this Act. | 18 | | (c) Affiliates of a licensee shall be subject to | 19 | | examination by the Secretary on the same terms as the | 20 | | licensee, but only if reports from or examination of a | 21 | | licensee provides for documented evidence of unlawful activity | 22 | | between a licensee and affiliate benefiting, affecting, or | 23 | | deriving from the activities regulated by this Act. | 24 | | (d) The expenses of any examination of the licensee and | 25 | | affiliates shall be borne by the licensee and assessed by the |
| | | HB0779 Enrolled | - 18 - | LRB103 04371 RPS 49377 b |
|
| 1 | | Secretary as may be established by rule. | 2 | | (e) Upon completion of the examination, the Secretary | 3 | | shall issue a report to the licensee. All confidential | 4 | | supervisory information, including the examination report and | 5 | | the work papers of the report, shall belong to the Secretary's | 6 | | office and may not be disclosed to anyone other than the | 7 | | licensee, law enforcement officials or other regulatory | 8 | | agencies that have an appropriate regulatory interest as | 9 | | determined by the Secretary, or to a party presenting a lawful | 10 | | subpoena to the Department. The Secretary may, through the | 11 | | Attorney General, immediately appeal to the court of | 12 | | jurisdiction the disclosure of such confidential supervisory | 13 | | information and seek a stay of the subpoena pending the | 14 | | outcome of the appeal. Reports required of licensees by the | 15 | | Secretary under this Act and results of examinations performed | 16 | | by the Secretary under this Act shall be the property of only | 17 | | the Secretary, but may be shared with the licensee. Access | 18 | | under this Act to the books and records of each licensee shall | 19 | | be limited to the Secretary and his or her agents as provided | 20 | | in this Act and to the licensee and its authorized agents and | 21 | | designees. No other person shall have access to the books and | 22 | | records of a licensee under this Act. Any person upon whom a | 23 | | demand for production of confidential supervisory information | 24 | | is made, whether by subpoena, order, or other judicial or | 25 | | administrative process, must withhold production of the | 26 | | confidential supervisory information and must notify the |
| | | HB0779 Enrolled | - 19 - | LRB103 04371 RPS 49377 b |
|
| 1 | | Secretary of the demand, at which time the Secretary is | 2 | | authorized to intervene for the purpose of enforcing the | 3 | | limitations of this Section or seeking the withdrawal or | 4 | | termination of the attempt to compel production of the | 5 | | confidential supervisory information. The Secretary may impose | 6 | | any conditions and limitations on the disclosure of | 7 | | confidential supervisory information that are necessary to | 8 | | protect the confidentiality of that information. Except as | 9 | | authorized by the Secretary, no person obtaining access to | 10 | | confidential supervisory information may make a copy of the | 11 | | confidential supervisory information. The Secretary may | 12 | | condition a decision to disclose confidential supervisory | 13 | | information on entry of a protective order by the court or | 14 | | administrative tribunal presiding in the particular case or on | 15 | | a written agreement of confidentiality. In a case in which a | 16 | | protective order or agreement has already been entered between | 17 | | parties other than the Secretary, the Secretary may | 18 | | nevertheless condition approval for release of confidential | 19 | | supervisory information upon the inclusion of additional or | 20 | | amended provisions in the protective order. The Secretary may | 21 | | authorize a party who obtained the records for use in one case | 22 | | to provide them to another party in another case, subject to | 23 | | any conditions that the Secretary may impose on either or both | 24 | | parties. The requester shall promptly notify other parties to | 25 | | a case of the release of confidential supervisory information | 26 | | obtained and, upon entry of a protective order, shall provide |
| | | HB0779 Enrolled | - 20 - | LRB103 04371 RPS 49377 b |
|
| 1 | | copies of confidential supervisory information to the other | 2 | | parties. | 3 | | (f) The Secretary and employees of the Department shall be | 4 | | subject to the restrictions provided in Section 2.5 of the | 5 | | Division of Banking Act, including, without limitation, the | 6 | | restrictions on: | 7 | | (1) owning shares of stock or holding any other equity | 8 | | interest in an entity regulated under this Act or in any | 9 | | corporation or company that owns or controls an entity | 10 | | regulated under this Act; | 11 | | (2) being an officer, director, employee, or agent of | 12 | | an entity regulated under this Act; and | 13 | | (3) obtaining a pawn or accepting a gratuity from an | 14 | | entity regulated under this Act. | 15 | | Section 10-20. Subpoena power of the Secretary. | 16 | | (a) The Secretary shall have the power to issue and to | 17 | | serve subpoenas and subpoenas duces tecum to compel the | 18 | | attendance of witnesses and the production of all books, | 19 | | accounts, records, and other documents and materials relevant | 20 | | to an examination or investigation. The Secretary, or his or | 21 | | her duly authorized representative, shall have power to | 22 | | administer oaths and affirmations to any person. | 23 | | (b) In the event of noncompliance with a subpoena or | 24 | | subpoena duces tecum issued or caused to be issued by the | 25 | | Secretary, the Secretary may, through the Attorney General, |
| | | HB0779 Enrolled | - 21 - | LRB103 04371 RPS 49377 b |
|
| 1 | | petition the circuit court of the county in which the person | 2 | | subpoenaed resides or has its principal place of business for | 3 | | an order requiring the subpoenaed person to appear and testify | 4 | | and to produce such books, accounts, records, and other | 5 | | documents as are specified in the subpoena duces tecum. The | 6 | | court may grant injunctive relief restraining the person from | 7 | | advertising, promoting, soliciting, entering into, offering to | 8 | | enter into, continuing, or completing any pawn transaction. | 9 | | The court may grant other relief, including, but not limited | 10 | | to, the restraint, by injunction or appointment of a receiver, | 11 | | of any transfer, pledge, assignment, or other disposition of | 12 | | the person's assets or any concealment, alteration, | 13 | | destruction, or other disposition of books, accounts, records, | 14 | | or other documents and materials as the court deems | 15 | | appropriate, until the person has fully complied with the | 16 | | subpoena or subpoena duces tecum and the Secretary has | 17 | | completed an investigation or examination. | 18 | | (c) If it appears to the Secretary that the compliance | 19 | | with a subpoena or subpoena duces tecum issued or caused to be | 20 | | issued by the Secretary pursuant to this Section is essential | 21 | | to an investigation or examination, the Secretary, in addition | 22 | | to the other remedies provided for in this Act, may, through | 23 | | the Attorney General, apply for relief to the circuit court of | 24 | | the county in which the subpoenaed person resides or has its | 25 | | principal place of business. The court shall thereupon direct | 26 | | the issuance of an order against the subpoenaed person |
| | | HB0779 Enrolled | - 22 - | LRB103 04371 RPS 49377 b |
|
| 1 | | requiring sufficient bond conditioned on compliance with the | 2 | | subpoena or subpoena duces tecum. The court shall cause to be | 3 | | endorsed on the order a suitable amount of bond or payment | 4 | | pursuant to which the person named in the order shall be freed, | 5 | | having a due regard to the nature of the case. | 6 | | (d) In addition, the Secretary may, through the Attorney | 7 | | General, seek a writ of attachment or an equivalent order from | 8 | | the circuit court having jurisdiction over the person who has | 9 | | refused to obey a subpoena, who has refused to give testimony, | 10 | | or who has refused to produce the matters described in the | 11 | | subpoena duces tecum. | 12 | | Section 10-25. Inspection of records and reports required | 13 | | of licensee. | 14 | | (a) Inspection of records. | 15 | | (1) The book or computer records, as well as every | 16 | | article or other thing of value so pawned or pledged, | 17 | | shall at all times be open to the inspection of the | 18 | | Secretary, the sheriff of the county, his deputies, or any | 19 | | members of the police force of any city in the county in | 20 | | which such pawnbroker does business. In addition, the | 21 | | Secretary shall be authorized to inspect the books or | 22 | | records of any business he or she has reasonable cause to | 23 | | believe is conducting pawn transactions and should be | 24 | | licensed under this Act. | 25 | | (2) The book or computer records, pawn tickets, or any |
| | | HB0779 Enrolled | - 23 - | LRB103 04371 RPS 49377 b |
|
| 1 | | other records required by the Secretary under this Act or | 2 | | any rule adopted in accordance with this Act shall be | 3 | | maintained for a period of 3 years after the date on which | 4 | | the record or ticket was prepared. These records and | 5 | | tickets shall be open to inspection of the Secretary at | 6 | | all times during the 3-year period. | 7 | | (b) Daily report. | 8 | | (1) Except as provided in paragraph (2) of this | 9 | | subsection, it shall be the duty of every pawnbroker to | 10 | | make out and deliver to the sheriff of the county in which | 11 | | such pawnbroker does business, on each day before noon, a | 12 | | legible and exact copy from the standard record book, as | 13 | | required in subsection (a) of Section 15-25, that lists | 14 | | all personal property and any other valuable thing | 15 | | received on deposit or purchased during the preceding day, | 16 | | including the exact time when received or purchased, and a | 17 | | description of the person or person by whom left in | 18 | | pledge, or from whom the same were purchased; however, in | 19 | | cities or towns having 25,000 or more inhabitants, a copy | 20 | | of the report shall at the same time also be delivered to | 21 | | the superintendent of police or the chief police officer | 22 | | of such city or town. The report may be made by computer | 23 | | printout or input memory device if the format has been | 24 | | approved by the local law enforcement agency. | 25 | | (2) In counties with more than 3,000,000 inhabitants, | 26 | | a pawnbroker must provide the daily report to the sheriff |
| | | HB0779 Enrolled | - 24 - | LRB103 04371 RPS 49377 b |
|
| 1 | | only if the pawnshop is located in an unincorporated area | 2 | | of the county. Pawnbrokers located in cities or towns in | 3 | | such counties must deliver such reports to the | 4 | | superintendent of police or the chief police officer of | 5 | | the city or town. | 6 | | (c) Report to the Secretary. The Secretary, as often as | 7 | | the Secretary shall deem necessary or proper, may require a | 8 | | pawnshop to submit a full and detailed report of its | 9 | | operations including, but not limited to, the number of pawns | 10 | | made, the amount advanced on pawn transactions, the number and | 11 | | amount of pawns surrendered to law enforcement, and any | 12 | | information required for purposes of reporting pursuant to | 13 | | Section 10-60. The Secretary shall prescribe the form of the | 14 | | report and establish the date by which the report must be | 15 | | filed. | 16 | | Section 10-30. Suspension; revocation of licenses; fines. | 17 | | (a) Upon written notice to a licensee, the Secretary may | 18 | | suspend or revoke any license issued pursuant to this Act if, | 19 | | in the notice, he or she makes a finding of one or more of the | 20 | | following: | 21 | | (1) that through separate acts or an act or a course of | 22 | | conduct, the licensee has violated any provisions of this | 23 | | Act, any rule adopted by the Department, or any other law, | 24 | | rule, or regulation of this State or the United States; | 25 | | (2) that any fact or condition exists that, if it had |
| | | HB0779 Enrolled | - 25 - | LRB103 04371 RPS 49377 b |
|
| 1 | | existed at the time of the original application for the | 2 | | license, would have warranted the Secretary in refusing | 3 | | originally to issue the license; or | 4 | | (3) that if a licensee is not an individual, any | 5 | | ultimate equitable owner, officer, director, or member of | 6 | | the licensed partnership, association, corporation, or | 7 | | other entity has acted or failed to act in a way that would | 8 | | be cause for suspending or revoking a license to that | 9 | | party as an individual. | 10 | | (b) No license shall be suspended or revoked, except as | 11 | | provided in this Section, nor shall any licensee be fined | 12 | | without notice of his or her right to a hearing as provided in | 13 | | Section 10-75. | 14 | | (c) The Secretary, on good cause shown that an emergency | 15 | | exists, may suspend any license for a period not exceeding 180 | 16 | | days, pending investigation. | 17 | | (d) The provisions of subsection (d) of Section 5-35 shall | 18 | | not affect a licensee's civil or criminal liability for acts | 19 | | committed before surrender of a license. | 20 | | (e) No revocation, suspension, or surrender of any license | 21 | | shall impair or affect the obligation of any preexisting | 22 | | lawful contract between the licensee and any person. | 23 | | (f) Every license issued under this Act shall remain in | 24 | | force and effect until the license expires without renewal, is | 25 | | surrendered, is revoked, or is suspended in accordance with | 26 | | the provisions of this Act, but the Secretary shall have |
| | | HB0779 Enrolled | - 26 - | LRB103 04371 RPS 49377 b |
|
| 1 | | authority to reinstate a suspended license or to issue a new | 2 | | license to a licensee whose license has been revoked if no fact | 3 | | or condition then exists which would have warranted the | 4 | | Secretary in refusing originally to issue that license under | 5 | | this Act. | 6 | | (g) Whenever the Secretary revokes or suspends a license | 7 | | issued pursuant to this Act or fines a licensee under this Act, | 8 | | he or she shall execute a written order to that effect. The | 9 | | Secretary shall post notice of the order on an agency website | 10 | | maintained by the Secretary or on the Nationwide Multistate | 11 | | Licensing System and Registry and shall serve a copy of the | 12 | | order upon the licensee. Any such order may be reviewed in the | 13 | | manner provided by Section 10-75. | 14 | | (h) If the Secretary finds any person in violation of the | 15 | | grounds set forth in subsection (i), he or she may enter an | 16 | | order imposing one or more of the following penalties: | 17 | | (1) revocation of license; | 18 | | (2) suspension of a license subject to reinstatement | 19 | | upon satisfying all reasonable conditions the Secretary | 20 | | may specify; | 21 | | (3) placement of the licensee or applicant on | 22 | | probation for a period of time and subject to all | 23 | | reasonable conditions as the Secretary may specify; | 24 | | (4) issuance of a reprimand; | 25 | | (5) imposition of a fine not to exceed $25,000 for | 26 | | each count of separate offense; except that a fine may be |
| | | HB0779 Enrolled | - 27 - | LRB103 04371 RPS 49377 b |
|
| 1 | | imposed not to exceed $75,000 for each separate count of | 2 | | offense of paragraph (2) of subsection (i); or | 3 | | (6) denial of a license. | 4 | | (i) The following acts shall constitute grounds for which | 5 | | the disciplinary actions specified in subsection (h) may be | 6 | | taken: | 7 | | (1) being convicted or found guilty, regardless of | 8 | | pendency of an appeal, of a crime in any jurisdiction that | 9 | | involves fraud, dishonest dealing, or any other act of | 10 | | moral turpitude; | 11 | | (2) fraud, misrepresentation, deceit, or negligence in | 12 | | any pawn transaction; | 13 | | (3) a material or intentional misstatement of fact on | 14 | | an initial or renewal application; | 15 | | (4) insolvency or filing under any provision of the | 16 | | federal Bankruptcy Code as a debtor; | 17 | | (5) failure to account or deliver to any person any | 18 | | property, such as any money, fund, deposit, check, draft, | 19 | | or other document or thing of value, that has come into his | 20 | | or her hands and that is not his or her property or that he | 21 | | or she is not in law or equity entitled to retain, under | 22 | | the circumstances and at the time which has been agreed | 23 | | upon or is required by law or, in the absence of a fixed | 24 | | time, upon demand of the person entitled to such | 25 | | accounting and delivery; | 26 | | (6) failure to disburse funds in accordance with |
| | | HB0779 Enrolled | - 28 - | LRB103 04371 RPS 49377 b |
|
| 1 | | agreements; | 2 | | (7) having a license, or the equivalent, to practice | 3 | | any profession or occupation revoked, suspended, or | 4 | | otherwise acted against, including the denial of licensure | 5 | | by a licensing authority of this State or another state, | 6 | | territory, or country for fraud, dishonest dealing, or any | 7 | | other act of moral turpitude; | 8 | | (8) failure to comply with an order of the Secretary | 9 | | or rule made or issued under the provisions of this Act; | 10 | | (9) engaging in activities regulated by this Act | 11 | | without a current, active license unless specifically | 12 | | exempted by this Act; | 13 | | (10) failure to pay in a timely manner any fee, | 14 | | charge, or fine under this Act; | 15 | | (11) failure to maintain, preserve, and keep available | 16 | | for examination all books, accounts, or other documents | 17 | | required by the provisions of this Act and the rules of the | 18 | | Secretary; | 19 | | (12) refusing, obstructing, evading, or unreasonably | 20 | | delaying an investigation, information request, or | 21 | | examination authorized under this Act, or refusing, | 22 | | obstructing, evading, or unreasonably delaying compliance | 23 | | with the Secretary's subpoena or subpoena duces tecum; and | 24 | | (13) failure to comply with or a violation of any | 25 | | provision of this Act. | 26 | | (j) A licensee shall be subject to the disciplinary |
| | | HB0779 Enrolled | - 29 - | LRB103 04371 RPS 49377 b |
|
| 1 | | actions specified in this Act for violations of subsection (i) | 2 | | by any officer, director, shareholder, joint venture, partner, | 3 | | ultimate equitable owner, or employee of the licensee. | 4 | | (k) A licensee shall be subject to suspension or | 5 | | revocation for unauthorized employee actions only if there is | 6 | | a pattern of repeated violations by employees or the licensee | 7 | | has knowledge of the violations or there is substantial harm | 8 | | to a consumer. | 9 | | (l) Procedures for surrender of a license include the | 10 | | following: | 11 | | (1) The Secretary may, after 10 days' notice by | 12 | | certified mail to the licensee at the address set forth on | 13 | | the license, stating the contemplated action and in | 14 | | general the grounds for the contemplated action and the | 15 | | date, time, and place of a hearing thereon, and after | 16 | | providing the licensee with a reasonable opportunity to be | 17 | | heard at the hearing before the action, fine such licensee | 18 | | an amount not exceeding $25,000 per violation, or revoke | 19 | | or suspend any license issued under this Act if he or she | 20 | | finds that: | 21 | | (A) the licensee has failed to comply with any | 22 | | provision of this Act or any order, decision, finding, | 23 | | rule, regulation, or direction of the Department or | 24 | | Secretary lawfully made pursuant to the authority of | 25 | | this Act; or | 26 | | (B) any fact or condition exists that, if it had |
| | | HB0779 Enrolled | - 30 - | LRB103 04371 RPS 49377 b |
|
| 1 | | existed at the time of the original application for | 2 | | the license, clearly would have warranted the | 3 | | Secretary in refusing to issue the license. | 4 | | (2) Any licensee may submit an application to | 5 | | surrender a license, but, upon the Secretary approving the | 6 | | surrender, it shall not affect the licensee's civil or | 7 | | criminal liability for acts committed before surrender or | 8 | | entitle the licensee to a return of any part of the license | 9 | | fee. | 10 | | Section 10-35. Investigation of complaints. The Secretary | 11 | | shall maintain staff and facilities adequate to receive, | 12 | | record, and investigate complaints and inquiries made by any | 13 | | person concerning this Act and any licensees under this Act. | 14 | | Each licensee shall open its books, records, documents, and | 15 | | offices wherever situated to the Secretary or his or her | 16 | | appointees as needed to facilitate such investigations. | 17 | | Section 10-40. Additional investigation and examination | 18 | | authority. In addition to any authority allowed under this | 19 | | Act, the Secretary shall have the authority to conduct | 20 | | investigations and examinations as follows: | 21 | | (1) For purposes of initial licensing, license | 22 | | renewal, license discipline, license conditioning, license | 23 | | revocation or termination, or general or specific inquiry | 24 | | or investigation to determine compliance with this Act, |
| | | HB0779 Enrolled | - 31 - | LRB103 04371 RPS 49377 b |
|
| 1 | | the Secretary shall have the authority to access, receive, | 2 | | and use any books, accounts, records, files, documents, | 3 | | information, or evidence, including, but not limited to, | 4 | | the following: | 5 | | (A) criminal, civil, and administrative history | 6 | | information, including nonconviction data as specified | 7 | | in the Criminal Code of 2012; | 8 | | (B) personal history and experience information, | 9 | | including independent credit reports obtained from a | 10 | | consumer reporting agency described in Section 603(p) | 11 | | of the federal Fair Credit Reporting Act; and | 12 | | (C) any other documents, information, or evidence | 13 | | the Secretary deems relevant to the inquiry or | 14 | | investigation, regardless of the location, possession, | 15 | | control, or custody of the documents, information, or | 16 | | evidence. | 17 | | (2) For the purposes of investigating violations or | 18 | | complaints arising under this Act or for the purposes of | 19 | | examination, the Secretary may review, investigate, or | 20 | | examine any licensee, individual, or person subject to | 21 | | this Act as often as necessary in order to carry out the | 22 | | purposes of this Act. The Secretary may direct, subpoena, | 23 | | or order the attendance of and examine under oath or | 24 | | affirmation all persons whose testimony may be required | 25 | | about the pawn transactions or the business or subject | 26 | | matter of any such examination or investigation, and may |
| | | HB0779 Enrolled | - 32 - | LRB103 04371 RPS 49377 b |
|
| 1 | | direct, subpoena, or order the person to produce books, | 2 | | accounts, records, files, and any other documents the | 3 | | Secretary deems relevant to the inquiry. | 4 | | (3) Each licensee, individual, or person subject to | 5 | | this Act shall make available to the Secretary upon | 6 | | request the books and records relating to the operations | 7 | | of the licensee, individual, or person subject to this | 8 | | Act. The Secretary shall have access to those books and | 9 | | records and interview the officers, principals, employees, | 10 | | independent contractors, agents, and customers of the | 11 | | licensee, individual, or person subject to this Act | 12 | | concerning their business. | 13 | | (4) Each licensee, individual, or person subject to | 14 | | this Act shall make or compile reports or prepare other | 15 | | information as directed by the Secretary in order to carry | 16 | | out the purposes of this Section, including, but not | 17 | | limited to: | 18 | | (A) accounting compilations; | 19 | | (B) information lists and data concerning pawn | 20 | | transactions in a format prescribed by the Secretary; | 21 | | or | 22 | | (C) other information deemed necessary to carry | 23 | | out the purposes of this Section. | 24 | | (5) In making any examination or investigation | 25 | | authorized by this Act, the Secretary may control access | 26 | | to any documents and records of the licensee or person |
| | | HB0779 Enrolled | - 33 - | LRB103 04371 RPS 49377 b |
|
| 1 | | under examination or investigation. The Secretary may take | 2 | | possession of the documents and records or place a person | 3 | | in exclusive charge of the documents and records in the | 4 | | place where they are usually kept. During the period of | 5 | | control, no person shall remove or attempt to remove any | 6 | | of the documents or records, except pursuant to a court | 7 | | order or with the consent of the Secretary. Unless the | 8 | | Secretary has reasonable grounds to believe the documents | 9 | | or records of the licensee have been, or are at risk of | 10 | | being altered or destroyed for purposes of concealing a | 11 | | violation of this Act, the licensee or owner of the | 12 | | documents and records shall have access to the documents | 13 | | or records as necessary to conduct its ordinary business | 14 | | affairs. | 15 | | (6) In order to carry out the purposes of this | 16 | | Section, the Secretary may: | 17 | | (A) retain attorneys, accountants, or other | 18 | | professionals and specialists as examiners, auditors, | 19 | | or investigators to conduct or assist in the conduct | 20 | | of examinations or investigations; | 21 | | (B) enter into agreements or relationships with | 22 | | other government officials or regulatory associations | 23 | | in order to improve efficiencies and reduce regulatory | 24 | | burden by sharing resources, standardized or uniform | 25 | | methods or procedures, and documents, records, | 26 | | information, or evidence obtained under this Section; |
| | | HB0779 Enrolled | - 34 - | LRB103 04371 RPS 49377 b |
|
| 1 | | (C) use, hire, contract, or employ public or | 2 | | privately available analytical systems, methods, or | 3 | | software to examine or investigate the licensee, | 4 | | individual, or person subject to this Act; | 5 | | (D) accept and rely on examination or | 6 | | investigation reports made by other government | 7 | | officials, within or outside this State; or | 8 | | (E) accept audit reports made by an independent | 9 | | certified public accountant for the licensee, | 10 | | individual, or person subject to this Act in the | 11 | | course of that part of the examination covering the | 12 | | same general subject matter as the audit and may | 13 | | incorporate the audit report in the report of the | 14 | | examination, report of investigation, or other writing | 15 | | of the Secretary. | 16 | | (7) The authority of this Section shall remain in | 17 | | effect, whether such a licensee, individual, or person | 18 | | subject to this Act acts or claims to act under any | 19 | | licensing or registration law of this State or claims to | 20 | | act without the authority. | 21 | | (8) No licensee, individual, or person subject to | 22 | | investigation or examination under this Section may | 23 | | knowingly withhold, abstract, remove, mutilate, destroy, | 24 | | or secrete any books, records, computer records, or other | 25 | | information. |
| | | HB0779 Enrolled | - 35 - | LRB103 04371 RPS 49377 b |
|
| 1 | | Section 10-45. Confidential information. In hearings | 2 | | conducted under this Act, information presented into evidence | 3 | | that was acquired by the licensee when serving any individual | 4 | | in connection with a pawn transaction, including all financial | 5 | | information of the individual, shall be deemed strictly | 6 | | confidential and shall be made available only as part of the | 7 | | record of a hearing under this Act or otherwise (i) when the | 8 | | record is required, in its entirety, for purposes of judicial | 9 | | review or (ii) upon the express written consent of the | 10 | | individual served, or in the case of his or her death or | 11 | | disability, the consent of his or her personal representative. | 12 | | Section 10-50. Confidentiality. | 13 | | (a) In order to promote more effective regulation and | 14 | | reduce regulatory burden through supervisory information | 15 | | sharing, except as otherwise provided in 12 U.S.C. Section | 16 | | 5111, the requirements under any federal law or State law | 17 | | regarding the privacy or confidentiality of any information or | 18 | | material provided to the Nationwide Multistate Licensing | 19 | | System and Registry, and any privilege arising under federal | 20 | | or State law, including the rules of any federal or State | 21 | | court, with respect to such information or material, shall | 22 | | continue to apply to information or material after the | 23 | | information or material has been disclosed to the Nationwide | 24 | | Multistate Licensing System and Registry. The information and | 25 | | material may be shared with all State and federal regulatory |
| | | HB0779 Enrolled | - 36 - | LRB103 04371 RPS 49377 b |
|
| 1 | | officials with pawnbroker industry oversight authority without | 2 | | the loss of privilege or the loss of confidentiality | 3 | | protections provided by federal law or State law. | 4 | | (b) In order to promote more effective regulation and | 5 | | reduce regulatory burden through supervisory information | 6 | | sharing, the Secretary is authorized to enter agreements or | 7 | | sharing into arrangements with other governmental agencies, | 8 | | the Conference of State Bank Supervisors or other associations | 9 | | representing governmental agencies as established by rule, | 10 | | regulation, or order of the Secretary. The sharing of | 11 | | confidential supervisory information or any information or | 12 | | material described in subsection (a) pursuant to an agreement | 13 | | or sharing arrangement shall not result in the loss of | 14 | | privilege or the loss of confidentiality protections provided | 15 | | by federal law or State law. | 16 | | (c) In order to promote more effective regulation and | 17 | | reduce regulatory burden through supervisory information | 18 | | sharing, information or material that is subject to a | 19 | | privilege or confidentiality under subsection (a) shall not be | 20 | | subject to the following: | 21 | | (1) disclosure under any State law governing the | 22 | | disclosure to the public of information held by an officer | 23 | | or an agency of the State; or | 24 | | (2) subpoena, discovery, or admission into evidence, | 25 | | in any private civil action or administrative process, | 26 | | unless with respect to any privilege held by the |
| | | HB0779 Enrolled | - 37 - | LRB103 04371 RPS 49377 b |
|
| 1 | | Nationwide Multistate Licensing System and Registry with | 2 | | respect to the information or material, the person to whom | 3 | | such information or material pertains waives, in whole or | 4 | | in part, in the discretion of that person, that privilege. | 5 | | (d) In order to promote more effective regulation and | 6 | | reduce regulatory burden through supervisory information | 7 | | sharing, any other law relating to the disclosure of | 8 | | confidential supervisory information or any information or | 9 | | material described in subsection (a) that is inconsistent with | 10 | | subsection (a) shall be superseded by the requirements of this | 11 | | Section to the extent the other law provides less | 12 | | confidentiality or a weaker privilege. | 13 | | Section 10-55. Reports of violations. Any person licensed | 14 | | under this Act or any other person may report to the Secretary | 15 | | any information to show that a person subject to this Act is or | 16 | | may be in violation of this Act. A licensee who files a report | 17 | | with the Department that another licensee is engaged in one or | 18 | | more violations pursuant to this Act shall not be the subject | 19 | | of disciplinary action by the Department, unless the | 20 | | Department determines, by a preponderance of the evidence | 21 | | available to the Department, that the reporting person | 22 | | knowingly or recklessly participated in the violation that was | 23 | | reported. | 24 | | Section 10-60. Pawnbroker annual report. |
| | | HB0779 Enrolled | - 38 - | LRB103 04371 RPS 49377 b |
|
| 1 | | (a) The Department shall, in conjunction with advice from | 2 | | a professional association that represents 50 or more | 3 | | licensees, issue an annual report, via an Internet-based | 4 | | program, of aggregate pawnbroker activity within 180 days | 5 | | after the beginning of the calendar year. The report shall | 6 | | contain at a minimum: | 7 | | (1) The number of licensed pawnbrokers. | 8 | | (2) The total dollar amount financed. | 9 | | (3) The total number of pawns for each value threshold | 10 | | set forth in subsection (c) of Section 15-10. | 11 | | (4) The total dollar amount of extensions. | 12 | | (5) The total number of extensions for each value | 13 | | threshold set forth in subsection (c) of Section 15-10. | 14 | | (6) The average pawn dollar amount for each value | 15 | | threshold set forth in subsection (c) of Section 15-10. | 16 | | (7) The average monthly finance charge for each value | 17 | | threshold set forth in subsection (c) of Section 15-10. | 18 | | (8) The percentage of pawns surrendered to law | 19 | | enforcement. | 20 | | (9) The percentage of total pawns surrendered to law | 21 | | enforcement by dollar amount. | 22 | | (10) The percentage of pawns redeemed. | 23 | | (11) The percentage of pawns extended. | 24 | | (12) The total number of pawnbroker employees. | 25 | | (13) The total number of licensees reporting. | 26 | | (14) The total number of complaints received and |
| | | HB0779 Enrolled | - 39 - | LRB103 04371 RPS 49377 b |
|
| 1 | | resolved by the Department. | 2 | | (15) The total number of defaulted pawn transactions | 3 | | reported to a credit bureau. | 4 | | (16) The total number of defaulted pawn transactions | 5 | | sent to a collection agency. | 6 | | (17) The total number of defaulted pawn transactions | 7 | | resulting in wage garnishment or legal action to collect. | 8 | | (18) The total number of pawn transactions reported to | 9 | | law enforcement. | 10 | | (b) The Secretary may retain qualified persons to prepare | 11 | | and report findings (1) identifying pawns and small dollar | 12 | | loans that are available to Illinois consumers, (2) collecting | 13 | | and analyzing pawns and loan-level data for small dollar | 14 | | loans, and (3) compiling aggregate data and trends for pawns | 15 | | and small dollar loans used by Illinois consumers. The | 16 | | Secretary shall make the report available to the Governor, the | 17 | | General Assembly, and the public. | 18 | | In this subsection, "pawns and small dollar loans" means | 19 | | pawns and lending products with a value of $2,500 or less, | 20 | | including, but not limited to, pawns, consumer installment | 21 | | loans, and other extensions of credit, whether or not offered | 22 | | by entities chartered or licensed in Illinois. | 23 | | Section 10-65. Responsible pawnbroker training; pawnbroker | 24 | | managers and employees. | 25 | | (a) A person who manages or is an employee of a pawnbroker |
| | | HB0779 Enrolled | - 40 - | LRB103 04371 RPS 49377 b |
|
| 1 | | that provides pawnbroker services and related functions shall | 2 | | complete, within 90 days after commencing employment, a | 3 | | minimum of 4 hours of training, which may be provided in a | 4 | | classroom or seminar setting or via Internet-based online | 5 | | learning programs, such training shall be provided at the | 6 | | employer's expense and shall be provided by qualified vendor | 7 | | approved by the Secretary. The training subjects shall be | 8 | | established by rule, and may include the following: | 9 | | (1) federal, State, and local laws, administrative | 10 | | rules, and regulations that pertain to the business of | 11 | | being a licensed pawnbroker under this Act; | 12 | | (2) procedures for identifying possible fraudulent | 13 | | transactions; | 14 | | (3) anti-money laundering; | 15 | | (4) store operations, maintenance of records, | 16 | | inventory management, recording and reporting of serial | 17 | | numbers; | 18 | | (5) general product knowledge, including, but not | 19 | | limited to, jewelry and firearms; | 20 | | (6) identification, verification, and weighing of | 21 | | precious metals; | 22 | | (7) inspections by State and local licensing and law | 23 | | enforcement authorities, including hold order procedures; | 24 | | (8) the federal Military Lending Act; | 25 | | (9) pawn forfeits; and | 26 | | (10) security, risk, and crisis management. |
| | | HB0779 Enrolled | - 41 - | LRB103 04371 RPS 49377 b |
|
| 1 | | (b) The training may be provided in a classroom or seminar | 2 | | setting or via Internet-based online learning programs, as | 3 | | established by rule. The substance of the training shall be | 4 | | related to the work performed by the registered employee. | 5 | | (c) In addition to the training provided for in | 6 | | subsections (a), registered employees of a pawnbroker shall | 7 | | complete an additional 4 hours of refresher training on | 8 | | subjects to be determined by the employer each calendar year | 9 | | commencing with the calendar year following the employee's | 10 | | first employment anniversary date, which refresher training | 11 | | may be site-specific and may be conducted on the job. | 12 | | (d) It is the responsibility of the pawnbroker or the | 13 | | Secretary-approved qualified vendor to certify, on a form | 14 | | prescribed by the Secretary, that the employee has | 15 | | successfully completed the basic and refresher training. The | 16 | | original form or a copy shall be a permanent record of training | 17 | | completed by the employee and shall be placed in the | 18 | | employee's file with the employer for the period the employee | 19 | | remains with the employer. The original form or a copy shall be | 20 | | given to the employee when his or her employment is | 21 | | terminated. Failure to return the original form or a copy to | 22 | | the employee is grounds for disciplinary action. The employee | 23 | | shall not be required to repeat the required training once the | 24 | | employee has been issued the form. An employer may provide or | 25 | | require additional training. | 26 | | (e) It shall be the responsibility of the pawnbroker and |
| | | HB0779 Enrolled | - 42 - | LRB103 04371 RPS 49377 b |
|
| 1 | | the Secretary-approved qualified training vendor to keep and | 2 | | maintain a personal log of all training hours earned along | 3 | | with sufficient documentation necessary for the Secretary to | 4 | | verify the annual training completed for at least 5 years. The | 5 | | personal training log and documentation shall be provided to | 6 | | the Secretary in the same manner as other documentation and | 7 | | records required under this Act. | 8 | | (f) Notwithstanding any other professional license a | 9 | | pawnbroker holds under this Act, no more than 8 hours of annual | 10 | | training shall be required for any one year. | 11 | | (g) The license of a pawnbroker whose managers or | 12 | | employees fail to comply with this Section may be suspended or | 13 | | revoked or may face other disciplinary action. | 14 | | (h) The regulation of pawnbroker employee training is an | 15 | | exclusive power and function of the State. A home rule unit may | 16 | | not regulate pawnbroker employee training or require a | 17 | | pawnbroker that is licensed by the State under this Act, or its | 18 | | employees, to maintain licenses in addition to licensure under | 19 | | the Act, to operate. This subsection is a denial and | 20 | | limitation of home rule powers and functions under subsection | 21 | | (h) of Section 6 of Article VII of the Illinois Constitution. | 22 | | (i) Persons seeking the Secretary's approval to offer the | 23 | | training required by subsection (a) may apply for such | 24 | | approval between August 1 and August 31 every 4 years in a | 25 | | manner prescribed by the Secretary. | 26 | | (j) Persons seeking the Secretary's approval to offer the |
| | | HB0779 Enrolled | - 43 - | LRB103 04371 RPS 49377 b |
|
| 1 | | training required by subsection (a) shall submit a | 2 | | nonrefundable application fee of $2,000 or a fee set by rule, | 3 | | to be deposited into the Pawnbroker Regulation Fund. Any | 4 | | changes made to the training module shall be approved by the | 5 | | Secretary. | 6 | | (k) The Secretary shall not unreasonably deny approval of | 7 | | a training module, whether in-person or online, that meets all | 8 | | the requirements of subsection (a). A denial of approval shall | 9 | | include a detailed description of the reasons for the denial. | 10 | | (l) A person approved to provide the training required by | 11 | | subsection (a) shall submit an application for re-approval | 12 | | between August 1 and August 31 of each even-numbered year and | 13 | | include a nonrefundable application fee of $2,000 or a fee set | 14 | | by rule, to be deposited into the Pawnbroker Regulation Fund. | 15 | | Section 10-70. Rules and regulations. | 16 | | (a) In addition to such powers as may be prescribed by this | 17 | | Act, the Department is hereby authorized and empowered to | 18 | | adopt rules consistent with the purposes of this Act, | 19 | | including, but not limited to: | 20 | | (1) rules in connection with the activities of | 21 | | licensees as may be necessary and appropriate for the | 22 | | protection of consumers in this State; | 23 | | (2) rules as may be necessary and appropriate to | 24 | | define improper or fraudulent business practices in | 25 | | connection with the activities of licensees in operating |
| | | HB0779 Enrolled | - 44 - | LRB103 04371 RPS 49377 b |
|
| 1 | | as a pawnbroker; | 2 | | (3) rules that define the terms used in this Act and as | 3 | | may be necessary and appropriate to interpret and | 4 | | implement the provisions of this Act; and | 5 | | (4) rules as may be necessary for the enforcement of | 6 | | this Act. | 7 | | (b) The Secretary is hereby authorized and empowered to | 8 | | make specific rulings, demands, and findings that he or she | 9 | | deems necessary for the proper conduct of the pawnbroker | 10 | | industry. | 11 | | (c) A person or entity may make a written application to | 12 | | the Department for a written interpretation of this Act. The | 13 | | Department may then, in its sole discretion, choose to issue a | 14 | | written interpretation. To be valid, a written interpretation | 15 | | must be signed by the Secretary, or his or her designee, and | 16 | | the Department's general counsel or his or her designee. A | 17 | | written interpretation expires 2 years after the date that it | 18 | | was issued. | 19 | | (d) No provision in this Act that imposes liability or | 20 | | establishes violations shall apply to any act taken by a | 21 | | person or entity in conformity with a written interpretation | 22 | | of this Act that is in effect at the time the act is taken, | 23 | | notwithstanding whether the written interpretation is later | 24 | | amended, rescinded, or determined by judicial or other | 25 | | authority to be invalid for any reason. |
| | | HB0779 Enrolled | - 45 - | LRB103 04371 RPS 49377 b |
|
| 1 | | Section 10-75. Appeal and review. | 2 | | (a) Any person or entity affected by a decision of the | 3 | | Secretary under any provision of this Act may obtain review of | 4 | | that decision within the Department. | 5 | | (b) The Department may, in accordance with the Illinois | 6 | | Administrative Procedure Act, adopt rules to provide for | 7 | | review within the Department of the Secretary's decisions | 8 | | affecting the rights of entities under this Act. The review | 9 | | shall provide for, at a minimum: | 10 | | (1) appointment of a hearing officer other than a | 11 | | regular employee of the Division of Banking; | 12 | | (2) appropriate procedural rules, specific deadlines | 13 | | for filings, and standards of evidence and of proof; and | 14 | | (3) provision for apportioning costs among parties to | 15 | | the appeal. | 16 | | (c) All final agency determinations of appeals to | 17 | | decisions of the Secretary may be reviewed in accordance with | 18 | | and under the provisions of the Administrative Review Law. | 19 | | Appeals from all final orders and judgments entered by a court | 20 | | in review of any final administrative decision of the | 21 | | Secretary or of any final agency review of a decision of the | 22 | | Secretary may be taken as in other civil cases. | 23 | | Section 10-80. Violations of this Act; Secretary's orders. | 24 | | (a) If the Secretary finds, as the result of examination, | 25 | | investigation, or review of reports submitted by a licensee, |
| | | HB0779 Enrolled | - 46 - | LRB103 04371 RPS 49377 b |
|
| 1 | | that the business and affairs of a licensee are not being | 2 | | conducted in accordance with this Act, the Secretary shall | 3 | | notify the licensee of the correction necessary. If a licensee | 4 | | fails to correct such violations, the Secretary shall issue an | 5 | | order requiring immediate correction and compliance with this | 6 | | Act, specifying a reasonable date for performance. | 7 | | (b) The Department may adopt rules to provide for an | 8 | | orderly and timely appeal of all orders within the Department. | 9 | | The rules may include provision for assessment of fees and | 10 | | costs. | 11 | | Section 10-85. Collection of compensation. Unless exempt | 12 | | from licensure under this Act, no person engaged in or | 13 | | offering to engage in any act or service for which a license | 14 | | under this Act is required may bring or maintain any action in | 15 | | any court of this State to collect compensation for the | 16 | | performance of the licensable services without alleging and | 17 | | proving that he or she was the holder of a valid pawnbroker | 18 | | license under this Act at all times during the performance of | 19 | | those services. | 20 | | Section 10-90. Injunction. The Secretary, through the | 21 | | Attorney General, may maintain an action in the name of the | 22 | | People of the State of Illinois and may apply for an injunction | 23 | | in the circuit court to enjoin a person from engaging in | 24 | | unlicensed pawnbroker activity, to restrain any person from |
| | | HB0779 Enrolled | - 47 - | LRB103 04371 RPS 49377 b |
|
| 1 | | violating or continuing to violate any of the provisions of | 2 | | this Act, or to file a complaint to take possession and control | 3 | | of a pawnshop for the purpose of examination, reorganization, | 4 | | or liquidation through receivership and to appoint a receiver, | 5 | | which may be the Secretary, a pawnshop, or another suitable | 6 | | person | 7 | | Article 15. Pawn Customer Bill of Rights | 8 | | Section 15-5. General provisions. | 9 | | (a) It is unlawful for an individual or business entity to | 10 | | conduct business in this State using the word "pawn", | 11 | | "pawnshop", or "pawnbroker" in connection with the business or | 12 | | to transact business in this State in a manner that has a | 13 | | substantial likelihood of misleading the public by implying | 14 | | that the business is a pawnshop, without first obtaining a | 15 | | license from the Secretary. It shall be unlawful for any | 16 | | business to advertise in a pawnbroker category, digitally or | 17 | | in print without including that business's pawnbroker and | 18 | | Nationwide Multistate Licensing System and Registry license | 19 | | number. | 20 | | (b) It is unlawful for an entity licensed under this Act to | 21 | | do any of the following: | 22 | | (1) Engage, have engaged, or propose to engage in any | 23 | | unlawful, unfair, deceptive, or abusive act or practice | 24 | | with respect to financial products or services. |
| | | HB0779 Enrolled | - 48 - | LRB103 04371 RPS 49377 b |
|
| 1 | | (2) Offer or provide to a consumer any financial | 2 | | product or service not in conformity with this Act or | 3 | | otherwise commit any act or omission in violation of a | 4 | | financial law. | 5 | | (3) Fail or refuse, as required by this Act or any rule | 6 | | or order issued by the Department hereunder, to do any of | 7 | | the following: | 8 | | (A) Permit the Department to access or copy | 9 | | records. | 10 | | (B) Establish or maintain records. | 11 | | (C) Make reports or provide information to the | 12 | | Department. | 13 | | Section 15-10. Fees. | 14 | | (a) It is unlawful for any pawnbroker to charge or collect | 15 | | a greater benefit or percentage upon money advanced, and for | 16 | | the use and forbearance thereof, than the amount specified in | 17 | | subsection (c). Nothing in this Section shall be construed to | 18 | | conflict with the law pertaining to usury and the person | 19 | | receiving money so advanced may hold the moneys to pay any fees | 20 | | in addition to interest. | 21 | | (b) Each pawnbroker, when making a pawn under this | 22 | | Section, must disclose in printed form on the pawn contract | 23 | | the following information to the persons receiving the pawn: | 24 | | (1) the amount of money advanced, which must be | 25 | | designated as the amount pawned; |
| | | HB0779 Enrolled | - 49 - | LRB103 04371 RPS 49377 b |
|
| 1 | | (2) the maturity date of the pawn, which must be at | 2 | | least 30 days after the originating date of the pawn; | 3 | | (3) the total pawn interest and service charge payable | 4 | | on the maturity date, which must be designated as the | 5 | | finance charge; | 6 | | (4) the total of payments that must be paid to redeem | 7 | | the pledged goods on the maturity date, which must be | 8 | | designated as the total of payments; and | 9 | | (5) the annual percentage rate, computed according to | 10 | | the regulations adopted by the Consumer Financial | 11 | | Protection Bureau under the federal Truth in Lending Act. | 12 | | (c) Each pawnbroker may contract for and receive a monthly | 13 | | finance charge, including interest and fees not to exceed | 14 | | one-fifth of the pawn amount for pawns under $500; one-sixth | 15 | | of the pawn amount for pawns at or above $500 and less than | 16 | | $1,500; one-eighth of the pawn amount for pawns at or above | 17 | | $1,500 and less than $5,000; and one-twentieth of the pawn | 18 | | amount for pawns at or above $5,000, pursuant to Section | 19 | | 15-30, for appraising, investigating title, storing, insuring | 20 | | the pledged property, making daily reports to local law | 21 | | enforcement including enhanced computerized reporting, and | 22 | | complying with regulatory requirements. Such fees, when made | 23 | | and collected, shall not be deemed interest for any purpose of | 24 | | law. A pawnbroker shall not require a customer to pay such fees | 25 | | by means of an electronic fund transfer, as that term is | 26 | | defined in Section 10 of the Electronic Fund Transfer Act, |
| | | HB0779 Enrolled | - 50 - | LRB103 04371 RPS 49377 b |
|
| 1 | | including through the use of an automated clearinghouse | 2 | | system. | 3 | | (d) Notwithstanding any inconsistent provision of law, a | 4 | | pawn transaction made pursuant to this Act shall be exempt | 5 | | from the provisions of the Predatory Loan Prevention Act. | 6 | | Section 15-15. Display of fee provision. Every pawnbroker | 7 | | shall at all times have and keep Section 15-10 printed in the | 8 | | English and Spanish languages and framed and posted in a | 9 | | prominent and conspicuous position in its place of business, | 10 | | so that the same shall be plainly legible and visible to all | 11 | | persons depositing or pledging property with such pawnbroker. | 12 | | Section 15-20. Disclosure of article description and pawn | 13 | | terms. | 14 | | (a) Every pawnbroker shall, at the time of making any | 15 | | advancement or pawn, deliver to the person pawning or pledging | 16 | | any property, a memorandum, contract, or note signed by the | 17 | | person pawning the property containing an accurate account and | 18 | | description, in the English language, of the following: | 19 | | (1) All the goods, articles or other things pawned or | 20 | | pledged. | 21 | | (2) The amount of money and the time of pledging the | 22 | | same. | 23 | | (3) The rate of interest to be paid on the pawn. | 24 | | (4) The name and residence of the person making the |
| | | HB0779 Enrolled | - 51 - | LRB103 04371 RPS 49377 b |
|
| 1 | | pawn or pledge. | 2 | | (5) The dollar amount of any fees as specified in | 3 | | Section 15-10. | 4 | | (6) A disclosure that by extending the pawn, the fees | 5 | | may exceed the value of the item pawned. | 6 | | (b) The Secretary may adopt rules prescribing the form and | 7 | | content of the disclosures required by subsection (a). | 8 | | Section 15-25. Record requirements. | 9 | | (a) Except in municipalities located in counties having | 10 | | 3,000,000 or more inhabitants, every pawnbroker shall keep a | 11 | | standard record book that has been approved by the sheriff of | 12 | | the county in which the pawnbroker does business. In | 13 | | municipalities in counties with 3,000,000 or more inhabitants, | 14 | | the record book shall be approved by the police department of | 15 | | the municipality in which the pawnbroker does business. At the | 16 | | time of each and every pawn or purchase, an accurate account | 17 | | and description, in the English language, of each of the items | 18 | | listed in subsection (a) of Section 15-20 shall be printed, | 19 | | typed, or written in ink in the record book. Such entry shall | 20 | | include the serial number or identification number of items | 21 | | received that bear such number. Except for items purchased | 22 | | from dealers possessing a federal employee identification | 23 | | number who have provided a receipt to the pawnbroker, every | 24 | | pawnbroker shall also record in his book, an accurate account | 25 | | and description, in the English language, of all goods, |
| | | HB0779 Enrolled | - 52 - | LRB103 04371 RPS 49377 b |
|
| 1 | | articles, and other things purchased or received for the | 2 | | purpose of resale or items pawned by the pawnbroker from any | 3 | | source, including other pawnshop locations owned by the same | 4 | | pawnbroker, not in the course of a pledge or pawn, the time of | 5 | | such purchase or receipt and the name and address of the person | 6 | | or business which sold or delivered such goods, articles, or | 7 | | other things to the pawnbroker. No entry in such book shall be | 8 | | erased, mutilated, or changed. | 9 | | (b) Every pawnbroker shall require identification to be | 10 | | shown by each person selling or pawning any goods, articles, | 11 | | or other things to the pawnbroker. If the identification shown | 12 | | is a driver's license, State identification card, or consular | 13 | | identification card and contains a photograph of the person | 14 | | being identified, only one form of identification must be | 15 | | shown. If the identification shown is not a driver's license, | 16 | | State identification card, or consular identification card or | 17 | | does not contain a photograph, 2 forms of identification must | 18 | | be shown, and one of the 2 forms of identification must include | 19 | | the person's residence address. These forms of identification | 20 | | shall include, but not be limited to, any of the following: | 21 | | passport, driver's license, social security card, utility | 22 | | bill, employee or student identification card, credit card, or | 23 | | a civic, union, or professional association membership card. | 24 | | In addition, in a municipality with a population of 1,000,000 | 25 | | or more inhabitants, if the customer does not have an | 26 | | identification issued by a governmental entity containing a |
| | | HB0779 Enrolled | - 53 - | LRB103 04371 RPS 49377 b |
|
| 1 | | photograph of the person being identified, the pawnbroker | 2 | | shall photograph the customer in color and record the | 3 | | customer's name, residence address, date of birth, gender, | 4 | | height, and weight along with the photograph. | 5 | | (c) A county or municipality, including a home rule unit, | 6 | | may regulate a pawnbroker's identification requirements for | 7 | | persons pledging or pawning goods, articles, or other things | 8 | | to the pawnbroker in a manner that is not less restrictive than | 9 | | the regulation by this State of a pawnbroker's identification | 10 | | requirements for persons pledging or pawning goods, articles, | 11 | | or other things. A home rule unit may not regulate a | 12 | | pawnbroker's identification requirements for persons pledging | 13 | | or pawning goods, articles, or other things to the pawnbroker | 14 | | in a manner less restrictive than the regulation by this State | 15 | | of a pawnbroker's identification requirements for persons | 16 | | selling or pawning goods, articles, or other things. This | 17 | | Section is a limitation under subsection (i) of Section 6 of | 18 | | Article VII of the Illinois Constitution on the concurrent | 19 | | exercise by home rule units of the powers and functions | 20 | | exercised by this State. | 21 | | (d) A pawnbroker may maintain the records required by | 22 | | subsection (a) in computer form if the computer form has been | 23 | | approved by the Secretary or his or her designee, the sheriff | 24 | | of the county in which the shop is located, and the police | 25 | | department of the municipality in which the shop is located. | 26 | | (e) Records, including reports to the Secretary or his or |
| | | HB0779 Enrolled | - 54 - | LRB103 04371 RPS 49377 b |
|
| 1 | | her designee, maintained by pawnbrokers shall be confidential, | 2 | | and no disclosure of pawnbroker records shall be made, except | 3 | | disclosures authorized by this Act or ordered by a court of | 4 | | competent jurisdiction. No record transferred to a | 5 | | governmental official shall be improperly disclosed, however, | 6 | | use of those records as evidence of a felony or misdemeanor | 7 | | shall be a proper purpose. | 8 | | (f) Pawnbrokers and their associations may lawfully give | 9 | | appropriate governmental agencies computer equipment for the | 10 | | purpose of transferring information pursuant to this Act. | 11 | | Section 15-30. Replacement of articles or property; | 12 | | insurance. | 13 | | (a) If any articles or property pledged are lost or | 14 | | rendered inoperable, the pawnbroker shall replace the articles | 15 | | or property with identical articles or property, except that | 16 | | if the pawnbroker cannot reasonably obtain identical articles | 17 | | or property, the pawnbroker shall replace the articles or | 18 | | property with like articles or property. | 19 | | (b) No pawnbroker shall conduct business in this State, | 20 | | unless the pawnbroker maintains insurance coverage covering | 21 | | all hazards equal to at least 2 times the aggregate value of | 22 | | the outstanding pawns for items held in pawn. Such insurance | 23 | | shall be obtained from an insurance company authorized to do | 24 | | business in Illinois. | 25 | | (c) The pawnbroker shall file a copy of proof of insurance |
| | | HB0779 Enrolled | - 55 - | LRB103 04371 RPS 49377 b |
|
| 1 | | coverage with the Secretary. A pawnbroker or an insurance | 2 | | company shall not cancel the insurance coverage, except upon | 3 | | notice to the Secretary by certified mail, return receipt | 4 | | requested. The cancellation is not effective until 30 days | 5 | | after the Secretary receives the notice. | 6 | | Section 15-35. Minors. No pawnbroker shall purchase, take, | 7 | | or receive any pawn, any property of any kind from any minor | 8 | | who is under 18 years of age, or the ownership of which is in, | 9 | | or which is claimed by, any such minor, or which may be in the | 10 | | possession or under the control of any such minor. | 11 | | Section 15-40. Intoxicated persons; persons convicted of | 12 | | theft. No pawnbroker shall knowingly or recklessly purchase or | 13 | | take any article in pawn or purchase from any person appearing | 14 | | to be intoxicated, nor from any person known to have been | 15 | | convicted of theft. A law enforcement officer may provide such | 16 | | criminal conviction information to a pawnbroker. Such | 17 | | information must be provided in writing. | 18 | | Section 15-45. Altered property; serial number and | 19 | | manufacturer's identification number. | 20 | | (a) No pawnbroker shall receive or purchase any article if | 21 | | the manufacturer's make, model, or serial number, personal | 22 | | identification number, or identifying marks engraved or etched | 23 | | upon an item of personal property has been removed, altered, |
| | | HB0779 Enrolled | - 56 - | LRB103 04371 RPS 49377 b |
|
| 1 | | or obliterated. | 2 | | (b) The prohibition in subsection (a) does not apply if | 3 | | the article's manufacturer's make, model, or serial number, | 4 | | personal identification number, or identifying marks have been | 5 | | worn in the ordinary course of use. However, no article | 6 | | described in this subsection (b) shall be sold or transferred | 7 | | to another pawnshop location of such pawnbroker for a period | 8 | | of 15 days after the delivery of the copy and statement | 9 | | required by subsection (b) of Section 10-25 required to be | 10 | | delivered to the officer or officers named therein. | 11 | | Section 15-50. Sale of property. | 12 | | (a) No personal property pledged or received on deposit by | 13 | | any pawnbroker shall be permitted to be redeemed from such | 14 | | pawnbroker for a period of 48 hours after the delivery of the | 15 | | copy and statement required by subsection (b) of Section 10-25 | 16 | | to be delivered to the officer or officers named therein. | 17 | | (b) No personal property purchased by any pawnbroker shall | 18 | | be sold or removed from the place of business or transferred to | 19 | | another pawnshop location of such pawnbroker for a period of | 20 | | 10 days after the delivery of the copy and statement required | 21 | | by subsection (b) of Section 10-25 to be delivered to the | 22 | | officer or officers named therein. | 23 | | (c) If the pawner fails to repay or extend the pawn during | 24 | | the period specified on the pawn ticket, the pawnbroker shall | 25 | | automatically extend a grace period of 30 days after the |
| | | HB0779 Enrolled | - 57 - | LRB103 04371 RPS 49377 b |
|
| 1 | | default date on the pawn during which the pawnbroker shall not | 2 | | dispose of or sell the personal property pawned. The parties | 3 | | may agree to extend or renew a pawn upon terms agreed upon by | 4 | | the parties, if the terms comply with the requirements of this | 5 | | Act. Title to the pledged property transfers to the pawnbroker | 6 | | after the default date grace period expires or upon expiration | 7 | | of an agreed extension. | 8 | | (d) A county or municipality, including a home rule unit, | 9 | | may regulate holding periods in a manner that is more | 10 | | restrictive than the regulation provided in this Section. | 11 | | (e) A home rule unit may not regulate the holding periods | 12 | | in this Section in a manner less restrictive than the | 13 | | regulation by this State. This Section is a limitation under | 14 | | subsection (i) of Section 6 of Article VII of the Illinois | 15 | | Constitution on the concurrent exercise by home rule units of | 16 | | the powers and functions exercised by this State. | 17 | | Section 15-55. Hold order. | 18 | | (a) For the purposes of this Section, "hold order" means a | 19 | | written legal instrument issued to a pawnbroker by a law | 20 | | enforcement officer commissioned by the law enforcement agency | 21 | | of the municipality or county that licenses and regulates the | 22 | | pawnbroker, evidencing a criminal law enforcement | 23 | | investigation, and ordering the pawnbroker to retain physical | 24 | | possession of pawned goods in the possession of the pawnbroker | 25 | | or property purchased by and in the possession of the |
| | | HB0779 Enrolled | - 58 - | LRB103 04371 RPS 49377 b |
|
| 1 | | pawnbroker and to not return, sell, or otherwise dispose of | 2 | | such property as such property is believed to be | 3 | | misappropriated goods. | 4 | | (b) Upon written notice from a law enforcement officer | 5 | | indicating that property in the possession of a pawnbroker and | 6 | | subject to a hold order is needed for the purpose of furthering | 7 | | a criminal investigation and prosecution, the pawnbroker shall | 8 | | release the property subject to the hold order to the custody | 9 | | of the law enforcement officer for such purpose and the law | 10 | | enforcement officer shall provide a written acknowledgment | 11 | | that the property has been released to the officer. The | 12 | | release of the property to the custody of the law enforcement | 13 | | officer shall not be considered a waiver or release of the | 14 | | pawnbroker's property rights or interest in the property. Upon | 15 | | completion of the criminal investigation, the property shall | 16 | | be returned to the pawnbroker who consented to its release; | 17 | | except that: | 18 | | (1) if the criminal investigation took place within a | 19 | | county or counties with a population of less than 300,000 | 20 | | and that investigation: | 21 | | (A) has determined that the property is stolen | 22 | | property, | 23 | | (B) has determined that the fair market value of | 24 | | the stolen property is $500 or less, | 25 | | (C) has identified the rightful owner of the | 26 | | stolen property, and |
| | | HB0779 Enrolled | - 59 - | LRB103 04371 RPS 49377 b |
|
| 1 | | (D) contains a court-admissible sworn statement by | 2 | | the rightful owner that they are the true owners of the | 3 | | stolen property, then law enforcement shall return the | 4 | | property to that owner without the payment of the | 5 | | money advanced by the pawnbroker or any costs or | 6 | | charges of any kind that the pawnbroker may have | 7 | | placed upon the same; or | 8 | | (2) if the criminal investigation took place within a | 9 | | county or counties with a population of more than 300,000 | 10 | | and that investigation: | 11 | | (A) has determined that the property is stolen | 12 | | property, | 13 | | (B) has determined that the then-fair market value | 14 | | of the stolen property is $1,000 or less, | 15 | | (C) has identified the rightful owner of the | 16 | | stolen property, and | 17 | | (D) contains a court-admissible sworn statement by | 18 | | the rightful owner that they are the true owners of the | 19 | | stolen property, then law enforcement shall return the | 20 | | property to that owner without the payment of the | 21 | | money advanced by the pawnbroker or any costs or | 22 | | charges of any kind that the pawnbroker may have | 23 | | placed upon the same. | 24 | | (c) After the return of said property, the pawnbroker | 25 | | shall not be liable to any private person or government entity | 26 | | for any further claims on the returned property. Law |
| | | HB0779 Enrolled | - 60 - | LRB103 04371 RPS 49377 b |
|
| 1 | | enforcement shall provide all information related to such | 2 | | persons involved in the investigation to the pawnbroker, | 3 | | including the investigative report, without the need for a | 4 | | subpoena, court order, or further legal action of government | 5 | | filing. The hold order shall expire on the 120th day after it | 6 | | is issued, at which time the pawnbroker may exercise its | 7 | | rights under any applicable pawn ticket or extension. If the | 8 | | law enforcement officer has not completed the criminal | 9 | | investigation within 120 days after the issuance of the hold | 10 | | order, the officer shall immediately return any property in | 11 | | law enforcement custody to the pawnbroker or obtain and | 12 | | furnish to the pawnbroker a warrant for a maximum 120-day hold | 13 | | order extension and, as applicable, continued law enforcement | 14 | | custody of the property. | 15 | | The pawnbroker shall not release or dispose of the | 16 | | property, except pursuant to a court order or the expiration | 17 | | of the holding period of the hold order, including all | 18 | | extensions. | 19 | | In cases where criminal charges have been filed and the | 20 | | property may be needed as evidence, the prosecuting attorney | 21 | | shall notify the pawnbroker in writing. The notice shall | 22 | | contain the case number, the style of the case, and a | 23 | | description of the property. The pawnbroker shall hold the | 24 | | property until receiving notice of the disposition of the case | 25 | | from the prosecuting attorney. The prosecuting attorney shall | 26 | | notify the pawnbroker and claimant in writing within 15 days |
| | | HB0779 Enrolled | - 61 - | LRB103 04371 RPS 49377 b |
|
| 1 | | after the disposition of the case. | 2 | | (d) A hold order, and a foregoing notice of criminal | 3 | | charges, must specify: | 4 | | (1) the name and address of the pawnbroker; | 5 | | (2) the law enforcement investigation number, the | 6 | | name, title, and identification number of the law | 7 | | enforcement officer placing the hold order or the court | 8 | | placing the hold order; | 9 | | (3) a complete description of the property to be held, | 10 | | including model number and serial number if available, to | 11 | | law enforcement; | 12 | | (4) the name of the alleged owner or person reporting | 13 | | the alleged misappropriated property, unless otherwise | 14 | | prohibited by law; | 15 | | (5) the mailing address of the pawnbroker where the | 16 | | property is held; and | 17 | | (6) the issuance and expiration date of the holding | 18 | | period. | 19 | | (e) The pawnbroker or the pawnbroker's representative must | 20 | | sign and date a copy of the hold order as evidence of receipt | 21 | | of the hold order and the beginning of the 120-day holding | 22 | | period. | 23 | | Article 20. Consumer Fraud Protections | 24 | | Section 20-5. Enforcement; Consumer Fraud and Deceptive |
| | | HB0779 Enrolled | - 62 - | LRB103 04371 RPS 49377 b |
|
| 1 | | Business Practices Act. The Attorney General may enforce a | 2 | | violation of Article 15 of this Act as an unlawful practice | 3 | | under the Consumer Fraud and Deceptive Business Practices Act. | 4 | | Article 25. Transition provisions | 5 | | Section 25-5. Savings provisions. | 6 | | (a) This Act is intended to replace the Pawnbroker | 7 | | Regulation Act in all respects. | 8 | | (b) Beginning on the effective date of this Act, the | 9 | | rights, powers, and duties exercised by the Department of | 10 | | Financial and Professional Regulation under the Pawnbroker | 11 | | Regulation Act shall continue to be vested in, to be the | 12 | | obligation of, and to be exercised by the Department of | 13 | | Financial and Professional Regulation under the provisions of | 14 | | this Act. | 15 | | (c) This Act does not affect any act done, ratified, or | 16 | | cancelled, any right occurring or established, or any action | 17 | | or proceeding commenced in an administrative, civil, or | 18 | | criminal cause before the effective date of this Act by the | 19 | | Department of Financial and Professional Regulation under the | 20 | | Pawnbroker Regulation Act. Those actions or proceedings may be | 21 | | prosecuted and continued by the Department of Financial and | 22 | | Professional Regulation under this Act. | 23 | | (d) This Act does not affect any license, certificate, | 24 | | permit, or other form of licensure issued by the Department of |
| | | HB0779 Enrolled | - 63 - | LRB103 04371 RPS 49377 b |
|
| 1 | | Financial and Professional Regulation under the Pawnbroker | 2 | | Regulation Act. All such licenses, certificates, permits, or | 3 | | other form of licensure shall continue to be valid under the | 4 | | terms and conditions of this Act. | 5 | | (e) The rules adopted by the Department of Financial and | 6 | | Professional Regulation relating to the Pawnbroker Regulation | 7 | | Act, unless inconsistent with the provisions of this Act, are | 8 | | not affected by this Act, and on the effective date of this | 9 | | Act, those rules become rules under this Act. | 10 | | (f) This Act does not affect any discipline, suspension, | 11 | | or termination that has occurred under the Pawnbroker | 12 | | Regulation Act or other predecessor Act. Any action for | 13 | | discipline, suspension, or termination instituted under the | 14 | | Pawnbroker Regulation Act shall be continued under this Act. | 15 | | Article 90. Amendatory Provisions | 16 | | Section 90-5. The Division of Banking Act is amended by | 17 | | changing Sections 2.5 and 5 as follows: | 18 | | (20 ILCS 3205/2.5) | 19 | | Sec. 2.5. Prohibited activities. | 20 | | (a) For the purposes of this Section, "regulated entity" | 21 | | means any person, business, company, corporation, institution, | 22 | | or other entity who is subject to regulation by the Office of | 23 | | Banks and Real Estate under Sections 3 and 46 of the Illinois |
| | | HB0779 Enrolled | - 64 - | LRB103 04371 RPS 49377 b |
|
| 1 | | Banking Act, Section 1-5 of the Illinois Savings and Loan Act | 2 | | of 1985, Section 1004 of the Savings Bank Act, Section 1-3 of | 3 | | the Residential Mortgage License Act of 1987, Section 2-4 of | 4 | | the Corporate Fiduciary Act, Section 3.02 of the Illinois Bank | 5 | | Holding Company Act of 1957, the Savings and Loan Share and | 6 | | Account Act, Section 1.5 of the Pawnbroker Regulation Act of | 7 | | 2023 , Section 3 of the Foreign Banking Office Act, or Section | 8 | | 30 of the Electronic Fund Transfer Act. | 9 | | (b) The Commissioner and the deputy commissioners shall | 10 | | not be an officer, director, employee, or agent of a regulated | 11 | | entity or of a corporation or company that owns or controls a | 12 | | regulated entity. | 13 | | The Commissioner and the deputy commissioners shall not | 14 | | own shares of stock or hold any other equity interest in a | 15 | | regulated entity or in a corporation or company that owns or | 16 | | controls a regulated entity. If the Commissioner or a deputy | 17 | | commissioner owns shares of stock or holds an equity interest | 18 | | in a regulated entity at the time of appointment, he or she | 19 | | shall dispose of such shares or other equity interest within | 20 | | 120 days from the date of appointment. | 21 | | The Commissioner and the deputy commissioners shall not | 22 | | directly or indirectly obtain a loan from a regulated entity | 23 | | or accept a gratuity from a regulated entity that is intended | 24 | | to influence the performance of official duties. | 25 | | (c) Employees of the Office of Banks and Real Estate shall | 26 | | not be officers, directors, employees, or agents of a |
| | | HB0779 Enrolled | - 65 - | LRB103 04371 RPS 49377 b |
|
| 1 | | regulated entity or of a corporation or company that owns or | 2 | | controls a regulated entity. | 3 | | Except as provided by standards which the Office of Banks | 4 | | and Real Estate may establish, employees of the Office of | 5 | | Banks and Real Estate shall not own shares of stock or hold any | 6 | | other equity interest in a regulated entity or in a | 7 | | corporation or company that owns or controls a regulated | 8 | | entity, or directly or indirectly obtain a loan from a | 9 | | regulated entity, or accept a gratuity from a regulated entity | 10 | | that is intended to influence the performance of official | 11 | | duties. However, in no case shall an employee of the Office of | 12 | | Banks and Real Estate participate in any manner in the | 13 | | examination or direct regulation of a regulated entity in | 14 | | which the employee owns shares of stock or holds any other | 15 | | equity interest, or which is servicing a loan to which the | 16 | | employee is an obligor. | 17 | | (d) If the Commissioner, a deputy commissioner, or any | 18 | | employee of the Office of Banks and Real Estate properly | 19 | | obtains a loan or extension of credit from an entity that is | 20 | | not a regulated entity, and the loan or extension of credit is | 21 | | subsequently acquired by a regulated entity or the entity | 22 | | converts to become a regulated entity after the loan is made, | 23 | | such purchase by or conversion to a regulated entity shall not | 24 | | cause the loan or extension of credit to be deemed a violation | 25 | | of this Section. | 26 | | Nothing in this Section shall be deemed to prevent the |
| | | HB0779 Enrolled | - 66 - | LRB103 04371 RPS 49377 b |
|
| 1 | | ownership of a checking account, a savings deposit account, a | 2 | | money market account, a certificate of deposit, a credit or | 3 | | debit card account, or shares in open-end investment companies | 4 | | registered with the Securities and Exchange Commission | 5 | | pursuant to the federal Investment Company Act of 1940 and the | 6 | | Securities Act of 1933 (commonly referred to as mutual or | 7 | | money market funds). | 8 | | (e) No Commissioner, deputy commissioner, employee, or | 9 | | agent of the Office of Banks and Real Estate shall, either | 10 | | during or after the holding of his or her term of office or | 11 | | employment, disclose confidential information concerning any | 12 | | regulated entity or person except as authorized by law or | 13 | | prescribed by rule. "Confidential information", as used in | 14 | | this Section, means any information that the person or officer | 15 | | obtained during his or her term of office or employment that is | 16 | | not available from the Office of Banks and Real Estate | 17 | | pursuant to a request under the Freedom of Information Act. | 18 | | (Source: P.A. 97-492, eff. 1-1-12.) | 19 | | (20 ILCS 3205/5) (from Ch. 17, par. 455) | 20 | | Sec. 5. Powers. In addition to all the other powers and | 21 | | duties provided by law, the Commissioner shall have the | 22 | | following powers: | 23 | | (a) To exercise the rights, powers and duties formerly | 24 | | vested by law in the Director of Financial Institutions under | 25 | | the Illinois Banking Act. |
| | | HB0779 Enrolled | - 67 - | LRB103 04371 RPS 49377 b |
|
| 1 | | (b) To exercise the rights, powers and duties formerly | 2 | | vested by law in the Department of Financial Institutions | 3 | | under "An act to provide for and regulate the administration | 4 | | of trusts by trust companies", approved June 15, 1887, as | 5 | | amended. | 6 | | (c) To exercise the rights, powers and duties formerly | 7 | | vested by law in the Director of Financial Institutions under | 8 | | "An act authorizing foreign corporations, including banks and | 9 | | national banking associations domiciled in other states, to | 10 | | act in a fiduciary capacity in this state upon certain | 11 | | conditions herein set forth", approved July 13, 1953, as | 12 | | amended. | 13 | | (c-5) To exercise all of the rights, powers, and duties | 14 | | granted to the Director or Secretary under the Illinois | 15 | | Banking Act, the Corporate Fiduciary Act, the Electronic Fund | 16 | | Transfer Act, the Illinois Bank Holding Company Act of 1957, | 17 | | the Savings Bank Act, the Illinois Savings and Loan Act of | 18 | | 1985, the Savings and Loan Share and Account Act, the | 19 | | Residential Mortgage License Act of 1987, and the Pawnbroker | 20 | | Regulation Act of 2023 . | 21 | | (c-15) To enter into cooperative agreements with | 22 | | appropriate federal and out-of-state state regulatory agencies | 23 | | to conduct and otherwise perform any examination of a | 24 | | regulated entity as authorized under the Illinois Banking Act, | 25 | | the Corporate Fiduciary Act, the Electronic Fund Transfer Act, | 26 | | the Illinois Bank Holding Company Act of 1957, the Savings |
| | | HB0779 Enrolled | - 68 - | LRB103 04371 RPS 49377 b |
|
| 1 | | Bank Act, the Illinois Savings and Loan Act of 1985, the | 2 | | Residential Mortgage License Act of 1987, and the Pawnbroker | 3 | | Regulation Act of 2023 . | 4 | | (d) Whenever the Commissioner is authorized or required by | 5 | | law to consider or to make findings regarding the character of | 6 | | incorporators, directors, management personnel, or other | 7 | | relevant individuals under the Illinois Banking Act, the | 8 | | Corporate Fiduciary Act, the Pawnbroker Regulation Act of | 9 | | 2023 , or at other times as the Commissioner deems necessary | 10 | | for the purpose of carrying out the Commissioner's statutory | 11 | | powers and responsibilities, the Commissioner shall consider | 12 | | criminal history record information, including nonconviction | 13 | | information, pursuant to the Criminal Identification Act. The | 14 | | Commissioner shall, in the form and manner required by the | 15 | | Illinois State Police and the Federal Bureau of Investigation, | 16 | | cause to be conducted a criminal history record investigation | 17 | | to obtain information currently contained in the files of the | 18 | | Illinois State Police or the Federal Bureau of Investigation, | 19 | | provided that the Commissioner need not cause additional | 20 | | criminal history record investigations to be conducted on | 21 | | individuals for whom the Commissioner, a federal bank | 22 | | regulatory agency, or any other government agency has caused | 23 | | such investigations to have been conducted previously unless | 24 | | such additional investigations are otherwise required by law | 25 | | or unless the Commissioner deems such additional | 26 | | investigations to be necessary for the purposes of carrying |
| | | HB0779 Enrolled | - 69 - | LRB103 04371 RPS 49377 b |
|
| 1 | | out the Commissioner's statutory powers and responsibilities. | 2 | | The Illinois State Police shall provide, on the Commissioner's | 3 | | request, information concerning criminal charges and their | 4 | | disposition currently on file with respect to a relevant | 5 | | individual. Information obtained as a result of an | 6 | | investigation under this Section shall be used in determining | 7 | | eligibility to be an incorporator, director, management | 8 | | personnel, or other relevant individual in relation to a | 9 | | financial institution or other entity supervised by the | 10 | | Commissioner. Upon request and payment of fees in conformance | 11 | | with the requirements of Section 2605-400 of the Illinois | 12 | | State Police Law, the Illinois State Police is authorized to | 13 | | furnish, pursuant to positive identification, such information | 14 | | contained in State files as is necessary to fulfill the | 15 | | request. | 16 | | (e) When issuing charters, permits, licenses, or other | 17 | | authorizations, the Commissioner may impose such terms and | 18 | | conditions on the issuance as he deems necessary or | 19 | | appropriate. Failure to abide by those terms and conditions | 20 | | may result in the revocation of the issuance, the imposition | 21 | | of corrective orders, or the imposition of civil money | 22 | | penalties. | 23 | | (f) If the Commissioner has reasonable cause to believe | 24 | | that any entity that has not submitted an application for | 25 | | authorization or licensure is conducting any activity that | 26 | | would otherwise require authorization or licensure by the |
| | | HB0779 Enrolled | - 70 - | LRB103 04371 RPS 49377 b |
|
| 1 | | Commissioner, the Commissioner shall have the power to | 2 | | subpoena witnesses, to compel their attendance, to require the | 3 | | production of any relevant books, papers, accounts, and | 4 | | documents, and to conduct an examination of the entity in | 5 | | order to determine whether the entity is subject to | 6 | | authorization or licensure by the Commissioner or the | 7 | | Division. If the Secretary determines that the entity is | 8 | | subject to authorization or licensure by the Secretary, then | 9 | | the Secretary shall have the power to issue orders against or | 10 | | take any other action, including initiating a receivership | 11 | | against the unauthorized or unlicensed entity. | 12 | | (g) The Commissioner may, through the Attorney General, | 13 | | request the circuit court of any county to issue an injunction | 14 | | to restrain any person from violating the provisions of any | 15 | | Act administered by the Commissioner. | 16 | | (h) Whenever the Commissioner is authorized to take any | 17 | | action or required by law to consider or make findings, the | 18 | | Commissioner may delegate or appoint, in writing, an officer | 19 | | or employee of the Division to take that action or make that | 20 | | finding. | 21 | | (i) Whenever the Secretary determines that it is in the | 22 | | public's interest, he or she may publish any cease and desist | 23 | | order or other enforcement action issued by the Division. | 24 | | (Source: P.A. 102-538, eff. 8-20-21.) | 25 | | (205 ILCS 510/Act rep.) |
| | | HB0779 Enrolled | - 71 - | LRB103 04371 RPS 49377 b |
|
| 1 | | Section 90-10. The Pawnbroker Regulation Act is repealed. | 2 | | Section 90-15. The Uniform Commercial Code is amended by | 3 | | changing Section 9-201 as follows: | 4 | | (810 ILCS 5/9-201) (from Ch. 26, par. 9-201) | 5 | | Sec. 9-201. General effectiveness of security agreement. | 6 | | (a) General effectiveness. Except as otherwise provided in | 7 | | the Uniform Commercial Code, a security agreement is effective | 8 | | according to its terms between the parties, against purchasers | 9 | | of the collateral, and against creditors. | 10 | | (b) Applicable consumer laws and other law. A transaction | 11 | | subject to this Article is subject to any applicable rule of | 12 | | law, statute, or regulation which establishes a different rule | 13 | | for consumers, including: | 14 | | (1) the Retail Installment Sales Act; | 15 | | (2) the Motor Vehicle Retail Installment Sales Act; | 16 | | (3) Article II of Chapter 3 of the Illinois Vehicle | 17 | | Code; | 18 | | (4) Article IIIB of the Boat Registration and Safety | 19 | | Act; | 20 | | (5) the Pawnbroker Regulation Act of 2023 ; | 21 | | (6) the Motor Vehicle Leasing Act; | 22 | | (7) the Consumer Installment Loan Act; and | 23 | | (8) the Consumer Deposit Security Act of 1987. | 24 | | (c) Other applicable law controls. In case of conflict |
| | | HB0779 Enrolled | - 72 - | LRB103 04371 RPS 49377 b |
|
| 1 | | between this Article and a rule of law, statute, or regulation | 2 | | described in subsection (b), the rule of law, statute, or | 3 | | regulation controls. Failure to comply with a rule of law, | 4 | | statute, or regulation described in subsection (b) has only | 5 | | the effect such rule of law, statute, or regulation specifies. | 6 | | (d) Further deference to other applicable law. This | 7 | | Article does not: | 8 | | (1) validate any rate, charge, agreement, or practice | 9 | | that violates a rule of law, statute, or regulation | 10 | | described in subsection (b); or | 11 | | (2) extend the application of the rule of law, | 12 | | statute, or regulation to a transaction not otherwise | 13 | | subject to it. | 14 | | (Source: P.A. 91-893, eff. 7-1-01.) | 15 | | Section 90-20. The Consumer Fraud and Deceptive Business | 16 | | Practices Act is amended by adding Section 2BBBB as follows: | 17 | | (815 ILCS 505/2BBBB new) | 18 | | Sec. 2BBBB. Violations of the Pawnbroker Regulation Act of | 19 | | 2023. Any person who violates Article 15 of the Pawnbroker | 20 | | Regulation Act of 2023 commits an unlawful practice within the | 21 | | meaning of this Act. | 22 | | Article 99. Severability; Effective Date |
| | | HB0779 Enrolled | - 73 - | LRB103 04371 RPS 49377 b |
|
| 1 | | Section 99-97. Severability. The provisions of this Act | 2 | | are severable under Section 1.31 of the Statute on Statutes. | 3 | | Section 99-99. Effective date. This Act takes effect upon | 4 | | becoming law. |
|