Full Text of SB2234 103rd General Assembly
SB2234eng 103RD GENERAL ASSEMBLY | | | SB2234 Engrossed | | LRB103 28770 BMS 55153 b |
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| 1 | | AN ACT concerning regulation. | 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly: | 4 | | Section 1. Short title. This Act may be cited as the Small | 5 | | Business Financing Transparency Act. | 6 | | Section 2. Purpose and construction. The purpose of this | 7 | | Act is to protect business owners. This Act shall be liberally | 8 | | construed to effectuate its purpose. | 9 | | Section 5. Definitions. As used in this Act: | 10 | | "Applicant" means a person who has submitted an | 11 | | application for a registration under this Act. | 12 | | "Closed-end financing" means a closed-end extension of | 13 | | credit, secured or unsecured, recourse or nonrecourse, | 14 | | including equipment financing that does not meet the | 15 | | definition of a lease under Section 2A-103 of the Uniform | 16 | | Commercial Code, that the recipient does not intend to use for | 17 | | personal, family, or household purposes. "Closed-end | 18 | | financing" includes financing with an established principal | 19 | | amount and duration. | 20 | | "Commercial financing database" means a reporting database | 21 | | certified by the Department as effective in receiving a report | 22 | | of commercial financing made under this Act. |
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| 1 | | "Commercial financing database provider" means an entity | 2 | | that provides a reporting database certified by the Department | 3 | | under this Act. | 4 | | "Commercial financing" means open-end financing, | 5 | | closed-end financing, sales-based financing, factoring | 6 | | transaction, or other form of financing, the proceeds of which | 7 | | the recipient does not intend to use primarily for personal, | 8 | | family, or household purposes. For purposes of determining | 9 | | whether a financing is a commercial financing, the provider | 10 | | may rely on any statement of intended purposes by the | 11 | | recipient. The statement may be a separate statement signed by | 12 | | the recipient; may be contained in the financing application, | 13 | | financing agreement, or other document signed or consented to | 14 | | by the recipient; or may be provided orally by the recipient so | 15 | | long as it is documented in the recipient's application file | 16 | | by the provider. Electronic signatures and consents are valid | 17 | | for purposes of the foregoing sentence. The provider shall not | 18 | | be required to ascertain that the proceeds of a commercial | 19 | | financing are used in accordance with the recipient's | 20 | | statement of intended purposes. | 21 | | "Department" means the Department of Financial and | 22 | | Professional Regulation. | 23 | | "Division of Financial Institutions" or "Division" means | 24 | | the Division of Financial Institutions of the Department of | 25 | | Financial and Professional Regulation. | 26 | | "Factoring transaction" means an accounts receivable |
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| 1 | | purchase transaction that includes an agreement to purchase, | 2 | | transfer, or sell a legally enforceable claim for payment held | 3 | | by a recipient for goods the recipient has supplied or | 4 | | services the recipient has rendered that have been ordered but | 5 | | for which payment has not yet been made. | 6 | | "Finance charge" means the cost of financing as a dollar | 7 | | amount. "Finance charge" includes any charge payable directly | 8 | | or indirectly by the recipient and imposed directly or | 9 | | indirectly by the provider as an incident to or a condition of | 10 | | the extension of financing. "Finance charge" includes any | 11 | | charges as determined by the Secretary. For the purposes of an | 12 | | open-end financing, "finance charge" means the maximum amount | 13 | | of credit available to the recipient, in each case, that is | 14 | | drawn and held for the duration of the term or draw period. For | 15 | | the purposes of a factoring transaction, "finance charge" | 16 | | includes the discount taken on the face value of the accounts | 17 | | receivable. In addition, the finance charge shall include any | 18 | | charges determined by the Secretary. | 19 | | "Open-end financing" means an agreement for one or more | 20 | | extensions of open-end credit, secured or unsecured, that the | 21 | | recipient does not intend to use the proceeds of primarily for | 22 | | personal, family, or household purposes. "Open-end financing" | 23 | | includes credit extended by a provider under a plan in which: | 24 | | (i) the provider reasonably contemplates repeated | 25 | | transactions; (ii) the provider may impose a finance charge | 26 | | from time to time on an outstanding unpaid balance; and (iii) |
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| 1 | | the amount of credit that may be extended to the recipient | 2 | | during the term of the plan is generally made available to the | 3 | | extent that any outstanding balance is repaid. | 4 | | "Person" means an individual, entity, corporation, | 5 | | partnership, limited liability company, joint venture, | 6 | | association, joint stock company, trust, or unincorporated | 7 | | organization, including, but not limited to, a sole | 8 | | proprietorship. | 9 | | "Provider" means a person who extends a specific offer of | 10 | | commercial financing to a recipient. "Provider", unless | 11 | | otherwise exempt, includes a person who solicits and presents | 12 | | specific offers of commercial financing on behalf of a third | 13 | | party. The mere extension of a specific offer or provision of | 14 | | disclosures for a commercial financing, is not sufficient to | 15 | | conclude that a provider is originating, making, funding, or | 16 | | providing commercial financing. "Provider" does not include: | 17 | | (1) a bank, trust company, or industrial loan company, | 18 | | or any subsidiary or affiliate thereof, doing business | 19 | | under the authority of, or in accordance with, a license, | 20 | | certificate or charter issued by the United States, this | 21 | | State, or any other state, district, territory, or | 22 | | commonwealth of the United States that is authorized to | 23 | | transact business in this State; | 24 | | (2) a federally chartered savings and loan | 25 | | association, federal savings bank, or federal credit | 26 | | union, or any subsidiary or affiliate thereof, that is |
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| 1 | | authorized to transact business in this State; | 2 | | (3) a savings and loan association, savings bank, or | 3 | | credit union, or any subsidiary or affiliate thereof, | 4 | | organized under the laws of this State or any other state | 5 | | that is authorized to transact business in this State; | 6 | | (4) a lender regulated under the federal Farm Credit | 7 | | Act; and | 8 | | (5) a person acting as a technology services provider | 9 | | to an entity described by sub-paragraphs (1), (2), or (3) | 10 | | for use as part of that entity's commercial financing | 11 | | program, provided the person has no interest, or | 12 | | arrangement, or agreement to purchase any interest in the | 13 | | commercial financing extended by the entity in connection | 14 | | with the program. | 15 | | "Recipient" means a person located in the State of | 16 | | Illinois who applies for commercial financing and is made a | 17 | | specific offer of commercial financing by a provider. For the | 18 | | purpose of determining whether a recipient is located in | 19 | | Illinois, a provider may rely upon (i) any written | 20 | | representation by the recipient as to whether it is located in | 21 | | Illinois; or (ii) the business address provided by the | 22 | | recipient in the application for commercial financing showing | 23 | | that the recipient is located in Illinois. "Recipient" | 24 | | includes an authorized representative of a person who applies | 25 | | for commercial financing and is made a specific offer of | 26 | | commercial financing by a provider. "Recipient" does not |
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| 1 | | include a person acting as a broker is not a recipient in a | 2 | | transaction they broker. | 3 | | "Sales-based financing" means a transaction that is repaid | 4 | | by the recipient to the provider, over time, as a percentage of | 5 | | sales or revenue, in which the payment amount may increase or | 6 | | decrease according to the volume of sales made or revenue | 7 | | received by the recipient or a transaction that includes a | 8 | | true-up mechanism where the financing is repaid as a fixed | 9 | | payment but provides for a reconciliation process that adjusts | 10 | | the payment to an amount that is a percentage of sales or | 11 | | revenue. | 12 | | "Secretary" means the Secretary of Financial and | 13 | | Professional Regulation or a person authorized by the | 14 | | Secretary to perform the Secretary's responsibilities under | 15 | | this Act. | 16 | | "Specific offer" means the specific terms of commercial | 17 | | financing, including price or amount, that is quoted to a | 18 | | recipient based on information obtained from or about the | 19 | | recipient that, if accepted by a recipient, shall be binding | 20 | | on the provider, as applicable, subject to any specific | 21 | | requirements stated in the specific terms. | 22 | | "True-up mechanism" means, with respect to sales-based | 23 | | financing, a contractual arrangement with all the following | 24 | | elements: | 25 | | (1) The financer receives periodic payments based upon | 26 | | a pre-set amount stated in the contract. |
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| 1 | | (2) The contract allows the recipient to request, or | 2 | | the financer to initiate, adjustments to the payment | 3 | | amount, credits to the recipient, or charges to the | 4 | | recipient after execution of the contract, so that the | 5 | | total amount paid by the recipient more closely reflects a | 6 | | split rate listed in the contract. | 7 | | Section 10. Applicability. | 8 | | (a) Except as otherwise provided in this Section, this Act | 9 | | applies to any person that offers or provides commercial | 10 | | financing in Illinois or is otherwise a provider. | 11 | | (b) The provisions of this Act apply to any person that | 12 | | seeks to evade its applicability by any device, subterfuge, or | 13 | | pretense whatsoever. | 14 | | (c) The provisions of this Act apply to any person that | 15 | | aids or facilitates a violation of this Act. | 16 | | (d) The provisions of this Act do not apply to: | 17 | | (1) a bank, trust company, or industrial loan company | 18 | | doing business under the authority of, or in accordance | 19 | | with, a license, certificate or charter issued by the | 20 | | United States, this State, or any other state, district, | 21 | | territory, or commonwealth of the United States that is | 22 | | authorized to transact business in this State; | 23 | | (2) a federally chartered savings and loan | 24 | | association, federal savings bank, or federal credit union | 25 | | that is authorized to transact business in this State; |
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| 1 | | (3) a savings and loan association, savings bank, or | 2 | | credit union organized under the laws of this State or any | 3 | | other state that is authorized to transact business in | 4 | | this State; | 5 | | (4) a lender regulated under the federal Farm Credit | 6 | | Act; and | 7 | | (5) a person acting in the person's capacity as a | 8 | | technology services provider to an entity described by | 9 | | sub-paragraphs (1), (2), or (3) for use as part of that | 10 | | entity's commercial financing program, provided the person | 11 | | has no interest, or arrangement, or agreement to purchase | 12 | | any interest in the commercial financing extended by the | 13 | | entity in connection with the program. | 14 | | Section 15. Division of Financial Institutions. This Act | 15 | | shall be administered by the Division on behalf of the | 16 | | Secretary. | 17 | | Section 20. Registration requirement. | 18 | | (a) It is unlawful for a person to engage in the conduct | 19 | | regulated by this Act unless the person: (i) registers with | 20 | | the Secretary in accordance with this Section; and (ii) | 21 | | maintains a valid registration. An officer or employee of a | 22 | | person required to register under this Section is not required | 23 | | to register if the person for whom the individual is an officer | 24 | | or employee is registered. |
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| 1 | | (b) Application for registration and renewal of | 2 | | registration shall be made in accordance with this Act and | 3 | | with the requirements of the multistate licensing system, if | 4 | | required by the Secretary. The application shall be in | 5 | | writing, under oath, and on a form obtained from and | 6 | | prescribed by the Secretary. The Secretary may change or | 7 | | update the form to carry out the purposes of this Act. The | 8 | | Secretary may require part or all of the application to be | 9 | | submitted electronically, with attestation, to the multistate | 10 | | licensing system. | 11 | | (c) Registrants shall apply to renew their registration | 12 | | every calendar year. Registrants may submit properly completed | 13 | | renewal application forms and filing fees 60 days before the | 14 | | registration expiration date, and the same shall be received | 15 | | by the Secretary at least 30 days before the registration | 16 | | expiration date. Absent a written extension from the | 17 | | Department, a registration shall expire on December 31 of each | 18 | | year if a registrant fails to timely submit a properly | 19 | | completed renewal application and fees. | 20 | | (d) Upon receipt of the registration, a registrant is | 21 | | authorized to engage in conduct regulated by this Act. The | 22 | | registration shall remain in full force and effect until it | 23 | | expires, is withdrawn by the registrant, or is revoked or | 24 | | suspended as provided in this Act. | 25 | | (e) To register under this Section, an applicant shall: | 26 | | (1) pay a registration fee of $2,500 to the |
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| 1 | | Department; and | 2 | | (2) submit a registration statement containing the | 3 | | information described in subsection (g). | 4 | | (f) To renew a registration under this Section, a person | 5 | | shall: | 6 | | (1) pay the annual fee of $2,500 to the Department; | 7 | | and | 8 | | (2) submit a renewal statement containing the | 9 | | information described in subsection (g). | 10 | | (g) A registration or renewal statement must be submitted | 11 | | to the Secretary or to a multistate licensing system as | 12 | | approved by the Secretary. The registration or renewal | 13 | | statement shall include: | 14 | | (1) the name of the person; | 15 | | (2) the name in which the business will be transacted | 16 | | if different from that required in paragraph (1), which | 17 | | must be properly registered as an assumed corporate name | 18 | | under the Business Corporation Act of 1983, an assumed | 19 | | limited liability company name under the Limited Liability | 20 | | Company Act, or an assumed business name under the Assumed | 21 | | Business Name Act; | 22 | | (3) the address of the person's principal business | 23 | | office; | 24 | | (4) the address of each office in this State at which | 25 | | the person engages in commercial financing transactions; | 26 | | (5) if the person engages in commercial financing |
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| 1 | | transactions in this State but does not maintain an office | 2 | | in this State, a brief description of the manner in which | 3 | | the business is conducted; | 4 | | (6) if the person conducts business through an agent | 5 | | located in this State, the name and address in this State | 6 | | of the person's agent properly registered with the | 7 | | Secretary of State; | 8 | | (7) for a registration application, whether the | 9 | | person, an officer, director, manager, operator, or | 10 | | principal of the person, or an employee of the person | 11 | | engaged in the business of commercial financing has been | 12 | | convicted of a crime involving an act of fraud, | 13 | | dishonesty, breach of trust, or money laundering; if the | 14 | | applicant answers yes to this paragraph, then the | 15 | | applicant shall report the names, titles or relationship | 16 | | to the applicant or registrant, and the nature of the | 17 | | covered crime; | 18 | | (8) for a renewal application, whether, in the past | 19 | | year, the person, an officer, director, manager, operator, | 20 | | or principal of the person, or an employee of the person | 21 | | engaged in the business of commercial financing has been | 22 | | convicted of a crime involving an act of fraud, | 23 | | dishonesty, breach of trust, or money laundering; if the | 24 | | registrant answers yes to this paragraph, then the | 25 | | registrant shall report the names, titles or relationship | 26 | | to the applicant or registrant, and the nature of the |
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| 1 | | covered crime; | 2 | | (9) a statement of the person's commitment to abide by | 3 | | the requirements of registering persons under this Act, | 4 | | including providing the required financing disclosures in | 5 | | commercial financing offers as required under Sections 45, | 6 | | 50, 55, 60, 65, and 70 of this Act; | 7 | | (10) a copy of the commercial financing disclosure | 8 | | form to be used for each type of commercial financing that | 9 | | the person offers or intends to offer, and a description | 10 | | of when the disclosure will be provided to the recipient; | 11 | | (11) information on financing offers presented by | 12 | | registrant in Illinois in the previous calendar year, | 13 | | including the number of financing offers made, the number | 14 | | of financing offers made in which the disclosures as | 15 | | required by Sections 45, 50, 55, 60, 65, and 70 were | 16 | | offered, and the number of financing offers accepted by | 17 | | recipients; and | 18 | | (12) any other information deemed necessary by the | 19 | | Secretary. | 20 | | (h) The Secretary may refuse to accept or renew a | 21 | | registration if: | 22 | | (1) the Secretary determines that the person has not | 23 | | complied with the provisions of this Act, its implementing | 24 | | rules, or other laws that apply to the person; or | 25 | | (2) the Secretary determines that there is substantial | 26 | | continuity between the person and any violator of this |
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| 1 | | Act, its implementing rules, or other laws that apply to | 2 | | the person or related violator. | 3 | | (i) The Department shall adopt and amend such rules as may | 4 | | be required for the proper administration and enforcement of | 5 | | this Section, including rules providing for the form, content, | 6 | | and filing of a registration and renewal statement. | 7 | | Section 25. Additional registration information. | 8 | | (a) In order to fulfill the purposes of this Act, the | 9 | | Secretary may establish relationships or contracts with a | 10 | | multistate licensing system or other persons to collect and | 11 | | maintain records and process fees related to registrants or | 12 | | other persons subject to this Act. | 13 | | (b) For the purposes of this Section, and to reduce the | 14 | | points of contact that the Secretary may have to maintain, the | 15 | | Secretary may use a multistate licensing system as a | 16 | | channeling agent for requesting and distributing information | 17 | | to and from any source. | 18 | | (c) Each registrant shall furnish to the Secretary or | 19 | | multistate licensing system an updated business address within | 20 | | 10 days after any change of business address. | 21 | | Section 30. Registration expiration. No activity regulated | 22 | | by this Act shall be conducted by a registrant whose | 23 | | registration has expired. The Secretary may, within the | 24 | | Secretary's discretion, reinstate an expired registration upon |
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| 1 | | payment of the renewal fee, payment of a reactivation fee | 2 | | equal to 5 times the renewal fee, submission of a completed | 3 | | renewal application, and an affidavit of good cause for late | 4 | | renewal. | 5 | | Section 35. Functions; powers; duties. The functions, | 6 | | powers, and duties of the Secretary include, but are not | 7 | | limited to, the following: | 8 | | (1) to issue or refuse to issue any registration or | 9 | | renewal; | 10 | | (2) to revoke or suspend for cause any registration | 11 | | issued under this Act; | 12 | | (3) to keep records of all registrations issued under | 13 | | this Act; | 14 | | (4) to receive, consider, investigate, and act upon | 15 | | complaints made by any person in connection with any | 16 | | registration in this State or unregistered commercial | 17 | | financing activity of any person; | 18 | | (5) to adopt rules necessary and proper for the | 19 | | administration of this Act, to protect consumers and | 20 | | financing recipients, to promote fair competition, and as | 21 | | otherwise authorized by this Act; | 22 | | (6) to subpoena documents and witnesses and compel | 23 | | their attendance and production, to administer oaths, and | 24 | | to require the production of any books, papers, or other | 25 | | materials relevant to any inquiry authorized by this Act |
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| 1 | | or its implementing rules; | 2 | | (7) to issue orders against any person if the | 3 | | Secretary has reasonable cause to believe that an unsafe, | 4 | | unsound, or unlawful practice has occurred, is occurring, | 5 | | or is about to occur; if any person is violating, or is | 6 | | about to violate any law, rule, or written agreement with | 7 | | the Secretary; or for the purpose of administering the | 8 | | provisions of this Act and any rule adopted in accordance | 9 | | with this Act; | 10 | | (8) to address any inquiries to any registrant, or the | 11 | | owners, officers, or directors thereof, in relation to its | 12 | | activities and conditions, or any other matter connected | 13 | | with its affairs, and any registrant or person so | 14 | | addressed shall promptly reply in writing to those | 15 | | inquiries. The Secretary may also require reports from any | 16 | | registrant at any time the Secretary deems desirable; | 17 | | (9) to enforce provisions of this Act and its | 18 | | implementing rules; | 19 | | (10) to levy fees, including, but not limited to, | 20 | | assessments, registration fees, civil penalties, and | 21 | | charges for services performed in administering this Act. | 22 | | The Secretary may establish and modify fees by rule. The | 23 | | aggregate of all fees collected by the Secretary under | 24 | | this Act shall be paid promptly after receipt into the | 25 | | Financial Institution Fund. The amounts deposited into the | 26 | | Financial Institution Fund shall be used for the ordinary |
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| 1 | | and contingent expenses of the Department. Nothing in this | 2 | | Act prevents paying expenses including salaries, | 3 | | retirement, social security, and State-paid insurance of | 4 | | State employees, or any other expenses incurred under this | 5 | | Act by appropriation from the General Revenue Fund or any | 6 | | other fund; | 7 | | (11) to issue refunds to registrants of any | 8 | | overpayment for good cause shown; | 9 | | (12) to appoint experts and special assistants as | 10 | | needed to effectively and efficiently administer this Act; | 11 | | (13) to conduct hearings for the purpose of | 12 | | suspensions, denials, or revocations of registrations, | 13 | | fining, or other discipline of registrants or unregistered | 14 | | persons or entities; | 15 | | (14) to exercise visitorial power over a registrant: | 16 | | (A) if the Secretary has reasonable cause to believe that | 17 | | an unsafe, unsound, or unlawful practice has occurred, is | 18 | | occurring, or is about to occur; or (B) if a person is | 19 | | violating or is about to violate any law, rule, or written | 20 | | agreement with the Secretary; and | 21 | | (15) to enter into cooperative agreements with state | 22 | | regulatory authorities of other states to provide for | 23 | | examination of corporate offices or branches of those | 24 | | states, participate in joint examinations with other | 25 | | regulators, and to accept reports of the examinations: (A) | 26 | | if the Secretary has reasonable cause to believe that an |
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| 1 | | unsafe, unsound, or unlawful practice has occurred, is | 2 | | occurring, or is about to occur; or (B) if a person is | 3 | | violating or is about to violate any law, rule, or written | 4 | | agreement with the Secretary; | 5 | | (16) to impose civil penalties of up to $200 per day | 6 | | against a registrant for failing to respond to a | 7 | | regulatory request or reporting requirement; and | 8 | | (17) to enter into agreements in connection with a | 9 | | multistate licensing system. | 10 | | Section 40. Subpoena power of the Secretary. | 11 | | (a) The Secretary may issue and serve subpoenas and | 12 | | subpoenas duces tecum to compel the attendance of witnesses | 13 | | and the production of all books, accounts, records, and other | 14 | | documents and materials relevant to an investigation. The | 15 | | Secretary, or the Secretary's duly authorized representative, | 16 | | may administer oaths and affirmations to any person. | 17 | | (b) If a person does not comply with the Secretary's | 18 | | subpoena or subpoena duces tecum, the Secretary may, through | 19 | | the Attorney General, petition the circuit court of the county | 20 | | in which the subpoenaed person resides or has its principal | 21 | | place of business for an order requiring the subpoenaed person | 22 | | to testify and to comply with the subpoena duces tecum. The | 23 | | court may grant injunctive relief restraining the person from | 24 | | engaging in activity regulated by this Act. The court may | 25 | | grant other relief, including, but not limited to, the |
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| 1 | | restraint, by injunction or appointment of a receiver, of any | 2 | | transfer, pledge, assignment, or other disposition of the | 3 | | person's assets, concealment, destruction, or other | 4 | | disposition of books, accounts, records, or other documents | 5 | | and materials, as the court deems appropriate, until the | 6 | | person has fully complied with the subpoena or subpoena duces | 7 | | tecum and the Secretary has completed an investigation. | 8 | | (c) If it appears to the Secretary that the compliance | 9 | | with a subpoena or subpoena duces tecum issued or caused to be | 10 | | issued by the Secretary under this Section is essential to an | 11 | | investigation, the Secretary, in addition to the other | 12 | | remedies provided for in this Act, may, through the Attorney | 13 | | General, apply for relief to the circuit court of the county in | 14 | | which the subpoenaed person resides or has its principal place | 15 | | of business. The court shall thereupon direct the issuance of | 16 | | an order against the subpoenaed person requiring sufficient | 17 | | bond conditioned on compliance with the subpoena or subpoena | 18 | | duces tecum. The court shall cause to be endorsed on the order | 19 | | a suitable amount of bond or payment pursuant to which the | 20 | | person named be freed, having a due regard to the nature of the | 21 | | case. | 22 | | (d) In addition, the Secretary may, through the Attorney | 23 | | General, seek a writ of attachment or an equivalent order from | 24 | | the circuit court having jurisdiction over the person who has | 25 | | refused to obey a subpoena, who has refused to give testimony, | 26 | | or who has refused to produce the matters described in the |
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| 1 | | subpoena duces tecum. | 2 | | Section 45. Sales-based financing disclosure requirements. | 3 | | A provider subject to this Act shall provide the following | 4 | | disclosures to a recipient, in a manner prescribed by the | 5 | | Secretary, if any, at the time of extending a specific offer of | 6 | | sales-based financing: | 7 | | (1) The total amount of the commercial financing, and, | 8 | | if different from the financing amount, the disbursement | 9 | | amount after any amount deducted or withheld at | 10 | | disbursement. | 11 | | (2) The finance charge. | 12 | | (3) The estimated annual percentage rate, using the | 13 | | words annual percentage rate or the abbreviation | 14 | | "Estimated APR", expressed as a yearly rate, inclusive of | 15 | | any fees and finance charges, based on the estimated term | 16 | | of repayment and the projected periodic payment amounts. | 17 | | The estimated term of repayment and the projected periodic | 18 | | payment amounts shall be calculated based on the | 19 | | projection of the recipient's sales, which may be referred | 20 | | to as the projected sales volume. The projected sales | 21 | | volume may be calculated using the historical method or | 22 | | the underwriting method. The provider shall provide notice | 23 | | to the Secretary on which method the provider intends to | 24 | | use across all instances of sales-based financing offered | 25 | | in calculating the estimated annual percentage rate under |
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| 1 | | this Section, according to the following: | 2 | | (A) A provider using the historical method shall | 3 | | use an average historical volume of sales or revenue | 4 | | by which the financing's payment amounts are based and | 5 | | the estimated annual percentage rate is calculated. | 6 | | The provider shall fix the historical time period used | 7 | | to calculate the average historical volume and use the | 8 | | period for all disclosure purposes for all sales-based | 9 | | financing products offered. The fixed historical time | 10 | | period shall either be the preceding time period from | 11 | | the specific offer or, alternatively, the provider may | 12 | | use average sales for the same number of months with | 13 | | the highest sales volume within the previous 12 | 14 | | months. The fixed historical time period shall be no | 15 | | less than one month and shall not exceed 12 months. | 16 | | (B) A provider using the underwriting method shall | 17 | | determine the estimated annual percentage rate, the | 18 | | estimated term, and the projected payments, using a | 19 | | projected sales volume that the provider elects for | 20 | | each disclosure, if they participate in a review | 21 | | process prescribed by the Secretary. A provider shall, | 22 | | on an annual basis, report data to the Secretary of | 23 | | estimated annual percentage rates disclosed to the | 24 | | recipient and actual retrospective annual percentage | 25 | | rates of completed transactions. The report shall | 26 | | contain the information as the Department may adopt by |
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| 1 | | rule as necessary or appropriate for the purpose of | 2 | | making a determination of whether the deviation | 3 | | between the estimated annual percentage rate and | 4 | | actual retrospective annual percentage rates of | 5 | | completed transactions was reasonable. The Secretary | 6 | | shall establish the method of reporting and may, upon | 7 | | a finding that the use of projected sales volume by the | 8 | | provider has resulted in an unacceptable deviation | 9 | | between estimated and actual annual percentage rate, | 10 | | require the provider to use the historical method. The | 11 | | Secretary may consider unusual and extraordinary | 12 | | circumstances impacting the provider's deviation | 13 | | between estimated and actual annual percentage rate in | 14 | | the determination of the finding. | 15 | | (4) The total repayment amount, which is the | 16 | | disbursement amount plus the finance charge. | 17 | | (5) The estimated term, which is the period of time | 18 | | required for the periodic payments, based on the projected | 19 | | sales volume, to equal the total amount required to be | 20 | | repaid. | 21 | | (6) The payment amounts, based on the projected sales | 22 | | volume: | 23 | | (A) for payment amounts that are fixed, the | 24 | | payment amounts and frequency, such as, daily, weekly, | 25 | | monthly, and, if the payment frequency is other than | 26 | | monthly, the amount of the average projected payments |
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| 1 | | per month; or | 2 | | (B) for payment amounts that are variable, a | 3 | | payment schedule or a description of the method used | 4 | | to calculate the amounts and frequency of payments and | 5 | | the amount of the average projected payments per | 6 | | month. | 7 | | (7) A description of all other potential fees and | 8 | | charges not included in the finance charge, including, but | 9 | | not limited to, draw fees, late payment fees, and returned | 10 | | payment fees. | 11 | | (8) If the recipient elects to pay off or refinance | 12 | | the commercial financing before full repayment, the | 13 | | provider shall disclose: | 14 | | (A) whether the recipient would be required to pay | 15 | | any finance charges other than interest accrued since | 16 | | their last payment; if so, disclosure of the | 17 | | percentage of any unpaid portion of the finance charge | 18 | | and maximum dollar amount the recipient could be | 19 | | required to pay; and | 20 | | (B) whether the recipient would be required to pay | 21 | | any additional fees not already included in the | 22 | | finance charge. | 23 | | (9) A description of collateral requirements or | 24 | | security interests, if any. | 25 | | Section 50. Commercial closed-end financing disclosure |
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| 1 | | requirements. | 2 | | (a) A provider subject to this Act shall provide the | 3 | | following disclosures to a recipient, in a manner prescribed | 4 | | by the Secretary, if any, at the time of extending a specific | 5 | | offer for closed-end financing: | 6 | | (1) The total amount of the commercial financing, and, | 7 | | if different from the financing amount, the disbursement | 8 | | amount after any amount deducted or withheld at | 9 | | disbursement. | 10 | | (2) The finance charge. | 11 | | (3) The annual percentage rate, using only the words | 12 | | annual percentage rate or the abbreviation "APR", | 13 | | expressed as a yearly rate, inclusive of any fees and | 14 | | finance charges that cannot be avoided by a recipient. | 15 | | (4) The total repayment amount, which is the | 16 | | disbursement amount plus the finance charge. | 17 | | (5) The term of the financing. | 18 | | (6) The payment amounts: | 19 | | (A) for payment amounts that are fixed, the | 20 | | payment amounts and frequency, such as daily, weekly, | 21 | | monthly, and, if the term is longer than one month, the | 22 | | average monthly payment amount; or | 23 | | (B) for payment amounts that are variable, a full | 24 | | payment schedule or a description of the method used | 25 | | to calculate the amounts and frequency of payments, | 26 | | and, if the term is longer than one month, the |
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| 1 | | estimated average monthly payment amount. | 2 | | (7) A description of all other potential fees and | 3 | | charges that can be avoided by the recipient, including, | 4 | | but not limited to, late payment fees and returned payment | 5 | | fees. | 6 | | (8) If the recipient elects to pay off or refinance | 7 | | the commercial financing before full repayment, the | 8 | | provider shall disclose: | 9 | | (A) whether the recipient would be required to pay | 10 | | any finance charges other than interest accrued since | 11 | | their last payment; if so, disclosure of the | 12 | | percentage of any unpaid portion of the finance charge | 13 | | and maximum dollar amount the recipient could be | 14 | | required to pay; and | 15 | | (B) whether the recipient would be required to pay | 16 | | any additional fees not already included in the | 17 | | finance charge. | 18 | | (9) A description of collateral requirements or | 19 | | security interests, if any. | 20 | | (b) If an advance requires repayment in periodic | 21 | | installments over time and does not qualify as sales-based | 22 | | financing, then the advance qualifies as close-end financing | 23 | | and shall satisfy the disclosure requirements of this Section. | 24 | | Section 55. Open-end commercial financing disclosure | 25 | | requirements. A provider subject to this Act shall provide the |
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| 1 | | following disclosures to a recipient, in a manner prescribed | 2 | | by the Secretary, if any, at the time of extending a specific | 3 | | offer for open-end financing: | 4 | | (1) The maximum amount of credit available to the | 5 | | recipient, such as the credit line amount, and the amount | 6 | | scheduled to be drawn by the recipient at the time the | 7 | | offer is extended, if any, less any amount deducted or | 8 | | withheld at disbursement. | 9 | | (2) The finance charge. | 10 | | (3) The annual percentage rate, using only the words | 11 | | annual percentage rate or the abbreviation "APR", | 12 | | expressed as a nominal yearly rate, inclusive of any fees | 13 | | and finance charges that cannot be avoided by a recipient, | 14 | | and based on the maximum amount of credit available to the | 15 | | recipient and the term resulting from making the minimum | 16 | | required payments term as disclosed. | 17 | | (4) The total repayment amount, which is the draw | 18 | | amount, less any fees deducted or withheld at | 19 | | disbursement, plus the finance charge. The total repayment | 20 | | amount shall assume a draw amount equal to the maximum | 21 | | amount of credit available to the recipient if drawn and | 22 | | held for the duration of the term or draw period. | 23 | | (5) The term of the plan, if applicable, or the period | 24 | | over which a draw is amortized. | 25 | | (6) The payment frequency and amounts, based on the | 26 | | assumptions used in the calculation of the annual |
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| 1 | | percentage rate, including a description of payment amount | 2 | | requirements such as a minimum payment amount, and if the | 3 | | payment frequency is other than monthly, the amount of the | 4 | | average projected payments per month. For payment amounts | 5 | | that are variable, the provider should include a payment | 6 | | schedule or a description of the method used to calculate | 7 | | the amounts and frequency of payments and the estimated | 8 | | average monthly payment amount. | 9 | | (7) A description of all other potential fees and | 10 | | charges that can be avoided by the recipient, including, | 11 | | but not limited to, draw fees, late payment fees, and | 12 | | returned payment fees. | 13 | | (8) Were the recipient to elect to pay off or | 14 | | refinance the commercial financing before full repayment, | 15 | | the provider shall disclose: | 16 | | (A) whether the recipient would be required to pay | 17 | | any finance charges other than interest accrued since | 18 | | their last payment; if so, disclosure of the | 19 | | percentage of any unpaid portion of the finance charge | 20 | | and maximum dollar amount the recipient could be | 21 | | required to pay; and | 22 | | (B) whether the recipient would be required to pay | 23 | | any additional fees not already included in the | 24 | | finance charge. | 25 | | (9) A description of collateral requirements or | 26 | | security interests, if any. |
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| 1 | | Section 60. Factoring transaction disclosure requirements. | 2 | | A provider subject to this Act shall provide the following | 3 | | disclosures to a recipient, in a manner prescribed by the | 4 | | Secretary, if any, at the time of extending a specific offer | 5 | | for a factoring transaction: | 6 | | (1) The amount of the receivables purchase price paid | 7 | | to the recipient, and, if different from the purchase | 8 | | price, the disbursement amount after any amount deducted | 9 | | or withheld at disbursement. | 10 | | (2) The finance charge. | 11 | | (3) The estimated annual percentage rate, using that | 12 | | term. To calculate the estimated annual percentage rate, | 13 | | the purchase amount is considered the financing amount, | 14 | | the purchase amount minus the finance charge is considered | 15 | | the payment amount, and the term is established by the | 16 | | payment due date of the receivables. As an alternate | 17 | | method of establishing the term, the provider may estimate | 18 | | the term for a factoring transaction as the average | 19 | | payment period based on its historical data over a period | 20 | | not to exceed the previous 12 months, concerning payment | 21 | | invoices paid by the party or parties owing the accounts | 22 | | receivable in question. | 23 | | (4) The total payment amount, which is the purchase | 24 | | amount plus the finance charge. | 25 | | (5) A description of all other potential fees and |
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| 1 | | charges that can be avoided by the recipient. | 2 | | (6) A description of the receivables purchased and any | 3 | | additional collateral requirements or security interests. | 4 | | Section 65. Other forms of financing disclosure | 5 | | requirements. The Secretary may require disclosure by a | 6 | | provider extending a specific offer of commercial financing | 7 | | which is not an open-end financing, closed-end financing, | 8 | | sales-based financing, or factoring transaction but otherwise | 9 | | meets the definition of commercial financing. Subject to rules | 10 | | adopted by the Secretary, a provider subject to this Act shall | 11 | | provide the following disclosures to a recipient, in a manner | 12 | | prescribed by the Secretary, if any, at the time of extending a | 13 | | specific offer of other forms of financing: | 14 | | (1) The total amount of the commercial financing, and, | 15 | | if different from the financing amount, the disbursement | 16 | | amount after any fees deducted or withheld at | 17 | | disbursement. | 18 | | (2) The finance charge. | 19 | | (3) The annual percentage rate, using only the words | 20 | | annual percentage rate or the abbreviation "APR", | 21 | | expressed as a yearly rate, inclusive of any fees and | 22 | | finance charges. | 23 | | (4) The total repayment amount which is the | 24 | | disbursement amount plus the finance charge. | 25 | | (5) The term of the financing. |
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| 1 | | (6) The payment amounts: | 2 | | (A) for payment amounts that are fixed, the | 3 | | payment amounts and frequency, such as daily, weekly, | 4 | | monthly, and the average monthly payment amount; or | 5 | | (B) for payment amounts that are variable, a | 6 | | payment schedule or a description of the method used | 7 | | to calculate the amounts and frequency of payments, | 8 | | and the estimated average monthly payment amount. | 9 | | (7) A description of all other potential fees and | 10 | | charges that can be avoided by the recipient, including, | 11 | | but not limited to, late payment fees and returned payment | 12 | | fees. | 13 | | (8) If the recipient elects to pay off or refinance | 14 | | the commercial financing before full repayment, the | 15 | | provider shall disclose: | 16 | | (A) whether the recipient would be required to pay | 17 | | any finance charges other than interest accrued since | 18 | | their last payment; if so, disclosure of the | 19 | | percentage of any unpaid portion of the finance charge | 20 | | and maximum dollar amount the recipient could be | 21 | | required to pay; and | 22 | | (B) whether the recipient would be required to pay | 23 | | any additional fees not already included in the | 24 | | finance charge. | 25 | | (9) A description of collateral requirements or | 26 | | security interests, if any. |
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| 1 | | Section 70. Disclosure requirements for renewal financing. | 2 | | If, as a condition of obtaining the commercial financing, the | 3 | | provider requires the recipient to pay off the balance of an | 4 | | existing commercial financing from the same provider, the | 5 | | provider shall disclose: | 6 | | (1) The amount of the new commercial financing that is | 7 | | used to pay off the portion of the existing commercial | 8 | | financing that consists of prepayment charges required to | 9 | | be paid and any unpaid interest expense that was not | 10 | | forgiven at the time of renewal. For financing for which | 11 | | the total repayment amount is calculated as a fixed | 12 | | amount, the prepayment charge is equal to the original | 13 | | finance charge multiplied by the amount of the renewal | 14 | | used to pay off existing financing as a percentage of the | 15 | | total repayment amount, minus any portion of the total | 16 | | repayment amount forgiven by the provider at the time of | 17 | | prepayment. If the amount is more than zero, the amount | 18 | | shall be the answer to the following question: "Does the | 19 | | renewal financing include any amount that is used to pay | 20 | | unpaid finance charges or fees, also known as double | 21 | | dipping? Yes, {enter amount}. If the amount is zero, the | 22 | | answer would be no." | 23 | | (2) If the disbursement amount will be reduced to pay | 24 | | down any unpaid portion of the outstanding balance, the | 25 | | actual dollar amount by which the disbursement amount will |
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| 1 | | be reduced. | 2 | | Section 75. Additional information. Nothing in this Act | 3 | | shall prevent a provider from providing or disclosing | 4 | | additional information on a commercial financing being offered | 5 | | to a recipient, provided however, that the additional | 6 | | information shall not be disclosed as part of the disclosure | 7 | | required by this Act. If other metrics of financing cost are | 8 | | disclosed or used in the application process of a commercial | 9 | | financing, these metrics shall not be presented as a "rate" if | 10 | | they are not the annual interest rate or the annual percentage | 11 | | rate. The term "interest", when used to describe a percentage | 12 | | rate, shall only be used to describe annualized percentage | 13 | | rates, such as the annual interest rate. When a provider | 14 | | states a rate of finance charge or a financing amount to a | 15 | | recipient during an application process for commercial | 16 | | financing, the provider shall also state the rate as an | 17 | | "annual percentage rate", using that term or the abbreviation | 18 | | "APR". | 19 | | Section 80. Commercial financing disclosure forms approved | 20 | | for use in the other states. The Secretary may approve the use | 21 | | of commercial financing disclosure forms approved for use in | 22 | | other states with commercial financing disclosure requirements | 23 | | that are substantially similar to or exceed the requirements | 24 | | set forth in this Act, including the disclosure requirements |
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| 1 | | in Sections 45, 50, 55, 60, 65, and 70 of this Act. | 2 | | Section 85. Violation of disclosure requirements. If the | 3 | | Secretary finds that a provider who is required to register | 4 | | with the Department according to this Act has violated any | 5 | | disclosure requirements outlined in Sections 45, 50, 55, 60, | 6 | | 65, 70, and 75, that shall be considered a violation of this | 7 | | Act separate from any other violation that may result from | 8 | | operating without a registration as outlined in Section 95. | 9 | | Section 90. Notification. | 10 | | (a) A registrant must advise the Secretary in writing of | 11 | | any changes to the information submitted on its most recent | 12 | | registration or renewal of registration within 30 days after | 13 | | the change. | 14 | | (b) A registrant must advise the Secretary in writing that | 15 | | the registrant has been disciplined, including denial of | 16 | | licensure, by a licensing authority of this State or another | 17 | | state within 10 days after entry of the discipline. | 18 | | Section 95. Disciplinary actions. | 19 | | (a) The Secretary may enter an order imposing one or more | 20 | | of the following penalties: | 21 | | (1) revocation of registration; | 22 | | (2) suspension of a registration subject to | 23 | | reinstatement upon satisfying all reasonable conditions |
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| 1 | | the Secretary may specify; | 2 | | (3) placement of the registrant or applicant on | 3 | | probation for a period of time and subject to all | 4 | | reasonable conditions as the Secretary may specify; | 5 | | (4) imposition of civil monetary penalties not to | 6 | | exceed $10,000 for each separate offense, but civil | 7 | | penalties may not to exceed $50,000 for all violations | 8 | | arising from the use of the same single transaction, | 9 | | including for financing offers that are not consummated; | 10 | | (5) restitution, refunds, or any other relief | 11 | | necessary to protect recipients; and | 12 | | (6) denial of a registration. | 13 | | (b) Grounds for penalties include: | 14 | | (1) if a registrant has violated or aided another to | 15 | | violate any provision of this Act, any rule adopted by the | 16 | | Secretary, or any other law, rule, or regulation of this | 17 | | State, any other state, or the United States; | 18 | | (2) if a person has violated or aided another to | 19 | | violate any provision of this Act or any rule adopted by | 20 | | the Secretary pursuant to this Act; | 21 | | (3) if a fact or condition exists that, if it had | 22 | | existed at the time of the original application for | 23 | | registration, would have warranted the Secretary in | 24 | | refusing issue the original registration; | 25 | | (4) that a registrant that is not an individual has | 26 | | acted or failed to act in a way that would be cause for |
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| 1 | | suspending or revoking a registration to an individual; | 2 | | (5) that a person engaged in unsafe, unsound, unfair, | 3 | | deceptive, or abusive business practices related to the | 4 | | activity covered by this Act; | 5 | | (6) that a registrant or an officer, director, | 6 | | manager, operator, or principal of the registrant, or an | 7 | | employee of the registrant engaged in the business of | 8 | | commercial financing has been adjudicated guilty of a | 9 | | crime against the law of this State, any other state, or of | 10 | | the United States involving moral turpitude, abusive, | 11 | | deceptive, fraudulent, or dishonest dealing; | 12 | | (7) that a final judgment has been entered against | 13 | | registrant or an officer, director, manager, operator, or | 14 | | principal of the registrant, or an employee of the | 15 | | registrant engaged in the business of commercial financing | 16 | | in a civil action upon grounds of abusive conduct, | 17 | | conversion, fraud, misrepresentation, or deceit; | 18 | | (8) that an applicant made a material misstatement in | 19 | | the applicant's application for registration or any other | 20 | | communication to the Secretary; | 21 | | (9) that a person has demonstrated, by course of | 22 | | conduct, negligence or incompetence in performing any act | 23 | | for which it is required to hold a registration under this | 24 | | Act; | 25 | | (10) that a person has failed to advise the Secretary | 26 | | in writing of any changes to the information submitted on |
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| 1 | | the person's most recent registration or renewal of | 2 | | registration within 30 days after the change; | 3 | | (11) that a registrant had a license, registration, or | 4 | | the equivalent, to practice any profession, occupation, | 5 | | other industry or activity requiring licensure revoked, | 6 | | suspended, disciplined, or otherwise acted against, | 7 | | including the denial of licensure by a licensing authority | 8 | | of this State or another state, territory, or country for | 9 | | fraud, dishonest dealing, misrepresentations, | 10 | | incompetence, conversion, any act of moral turpitude or | 11 | | any other grounds that would constitute grounds for | 12 | | discipline under this Act; | 13 | | (12) that a person registered under this Act failed to | 14 | | timely notify the Secretary that the person has been | 15 | | disciplined, including denial of licensure, by a licensing | 16 | | authority of this State or another state as required under | 17 | | subsection (b) of Section 90; | 18 | | (13) that a person engaged in activities regulated by | 19 | | this Act without a current, active registration unless | 20 | | specifically exempted by this Act; | 21 | | (14) that a person failed to timely pay any fee, | 22 | | charge, or civil penalty assessed under this Act; and | 23 | | (15) that a person refused, obstructed, evaded, or | 24 | | unreasonably delayed an investigation or information | 25 | | request authorized under this Act, or refused, obstructed, | 26 | | evaded, or unreasonably delayed compliance with the |
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| 1 | | Secretary's subpoena or subpoena duces tecum. | 2 | | (c) No registration shall be suspended or revoked, except | 3 | | as provided in this Section, nor shall any person be assessed a | 4 | | civil penalty without notice of his or her right to a hearing. | 5 | | (d) The Secretary may suspend any registration for a | 6 | | period not exceeding 180 days pending investigation for good | 7 | | cause shown that an emergency exists. | 8 | | (e) No revocation, suspension, or surrender of any | 9 | | registration shall impair or affect the obligation of any | 10 | | preexisting lawful contract between the registrant and any | 11 | | person. The Secretary's approval of a registrant's application | 12 | | to surrender its registration shall not affect the | 13 | | registrant's civil or criminal liability for acts committed | 14 | | prior to surrender. Surrender of a registration does not | 15 | | entitle the registrant to a return of any part of the | 16 | | registration fee. | 17 | | (f) Every registration issued under this Act shall remain | 18 | | in force and effect until the registration expires, is | 19 | | surrendered, is revoked, or is suspended in accordance with | 20 | | the provisions of this Act. The Secretary shall have authority | 21 | | to reinstate a suspended registration or to issue a new | 22 | | registration to a registrant whose registration has been | 23 | | revoked or surrendered if no fact or condition then exists | 24 | | which would have warranted the Secretary in refusing | 25 | | originally to issue that registration under this Act. | 26 | | (g) Whenever the Secretary imposes discipline authorized |
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| 1 | | by this Section, the Secretary shall execute a written order | 2 | | to that effect. The Secretary shall serve a copy of the order | 3 | | upon the person. The Secretary shall serve the person with | 4 | | notice of the order, including a statement of the reasons for | 5 | | the order personally or by certified mail. Service by | 6 | | certified mail shall be deemed completed when the notice is | 7 | | deposited in the U.S. Mail. | 8 | | (h) An order assessing a civil penalty, an order revoking | 9 | | or suspending a registration, or an order denying renewal of a | 10 | | registration shall take effect upon service of the order | 11 | | unless the registrant serves the Department with a written | 12 | | request for a hearing in the manner required by the order | 13 | | within 10 days after the date of service of the order. If a | 14 | | person requests a hearing, the order shall be stayed from its | 15 | | date of service until the Department enters a final | 16 | | administrative order. Hearings shall be conducted as follows: | 17 | | (1) If the registrant requests a hearing, then the | 18 | | Secretary shall schedule a hearing within 90 days after | 19 | | the request for a hearing unless otherwise agreed to by | 20 | | the parties. | 21 | | (2) The hearing shall be held at the time and place | 22 | | designated by the Secretary. The Secretary and any | 23 | | administrative law judge designated by the Secretary shall | 24 | | have the power to administer oaths and affirmations, | 25 | | subpoena witnesses and compel their attendance, take | 26 | | evidence, and require the production of books, papers, |
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| 1 | | correspondence, and other records or information that they | 2 | | consider relevant or material to the inquiry. | 3 | | (i) The costs of administrative hearings conducted under | 4 | | this Section shall be paid by the registrant or other person | 5 | | subject to the hearing. | 6 | | (j) Registrants and other persons subject to this Act | 7 | | shall be subject to the disciplinary actions specified in this | 8 | | Act for any violations conducted by any officer, director, | 9 | | shareholder, joint venture, partner, owner, including, but not | 10 | | limited to, ultimate equitable owner. | 11 | | Section 100. Investigation of complaints. The Secretary | 12 | | may investigate any complaints and inquiries made concerning | 13 | | this Act and any registrants or persons the Secretary believes | 14 | | may be required to register under this Act. Each registrant or | 15 | | person the Secretary believes may be required to register | 16 | | under this Act shall open the registrant's or person's books, | 17 | | records, documents, and offices wherever situated to the | 18 | | Secretary as needed to facilitate the investigations. | 19 | | Section 105. Additional investigation authority. In | 20 | | addition to any authority allowed under this Act, the | 21 | | Secretary may conduct investigations as follows: | 22 | | (1) For purposes of initial registration, registration | 23 | | renewal, registration suspension, registration | 24 | | conditioning, registration probation, registration |
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| 1 | | revocation or termination, or general or specific inquiry | 2 | | or investigation to determine compliance with this Act, | 3 | | the Secretary may access, receive, and use any books, | 4 | | accounts, records, files, documents, information, or | 5 | | evidence, including, but not limited to, the following: | 6 | | (A) criminal, civil, registration, and | 7 | | administrative history information, including | 8 | | nonconviction data as specified in the Criminal Code | 9 | | of 2012; (B) personal history and experience | 10 | | information, including independent credit reports | 11 | | obtained from a consumer reporting agency described in | 12 | | Section 603(p) of the federal Fair Credit Reporting | 13 | | Act; and (C) any other documents, information, or | 14 | | evidence the Secretary deems relevant to the inquiry | 15 | | or investigation, regardless of the location, | 16 | | possession, control, or custody of the documents, | 17 | | information, or evidence. | 18 | | (2) For the purposes of investigating violations or | 19 | | complaints arising under this Act, the Secretary may | 20 | | review or investigate any registrant or person subject to | 21 | | this Act as necessary in order to carry out the purposes of | 22 | | this Act. The Secretary may direct, subpoena, or order the | 23 | | attendance of, and examine under oath all persons and | 24 | | order any person to produce records, files, and any other | 25 | | documents the Secretary deems relevant to an inquiry. | 26 | | (3) Each person subject to this Act shall make |
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| 1 | | available to the Secretary upon request the books and | 2 | | records relating to the operations of the person subject | 3 | | to this Act. The Secretary shall have access to those | 4 | | books and records and may interview the owners, officers, | 5 | | principals, employees, independent contractors, agents, | 6 | | vendors, and customers of any registrant or person subject | 7 | | to this Act. | 8 | | (4) In making any investigation authorized by this | 9 | | Act, the Secretary may control access to any documents and | 10 | | records of the registrant or person under investigation. | 11 | | The Secretary may take possession of the documents and | 12 | | records or otherwise take constructive control of the | 13 | | documents. During the period of control, no person shall | 14 | | remove or alter any of the documents or records, except | 15 | | pursuant to a court order or with the consent of the | 16 | | Secretary. Unless the Secretary has reasonable grounds to | 17 | | believe the documents or records of the registrant have | 18 | | been or are at risk of being altered or destroyed for | 19 | | purposes of concealing a violation of this Act, the | 20 | | registrant or owner of the documents and records shall | 21 | | have access to the documents or records as necessary to | 22 | | conduct its ordinary business affairs. | 23 | | (5) In order to carry out the purposes of this | 24 | | Section, the Secretary may: | 25 | | (A) retain attorneys, accountants, or other | 26 | | professionals and specialists as auditors or |
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| 1 | | investigators to conduct or assist in the conduct of | 2 | | investigations; | 3 | | (B) enter into agreements or relationships with | 4 | | other government officials or regulatory associations | 5 | | to protect consumers or financing recipients, improve | 6 | | efficiencies, and reduce regulatory burden by sharing | 7 | | resources, standardized or uniform methods or | 8 | | procedures, and documents, records, information, or | 9 | | evidence obtained under this Section; | 10 | | (C) use, hire, contract, or employ publicly or | 11 | | privately available analytical systems, methods, or | 12 | | software or investigate the registrant or person | 13 | | subject to this Act; | 14 | | (D) accept and rely on examination or | 15 | | investigation reports made by other government | 16 | | officials, within or outside this State; or | 17 | | (E) accept audit reports made by an independent | 18 | | certified public accountant for the person subject to | 19 | | this Act and may incorporate the audit report in the | 20 | | report of the investigation or other writing of the | 21 | | Secretary. | 22 | | (6) The authority of this Section shall remain in | 23 | | effect, whether the person subject to this Act acts or | 24 | | claims to act under any licensing or registration law of | 25 | | this State or claims to act without the authority. | 26 | | (7) No registrant or person subject to investigation |
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| 1 | | or under this Section may knowingly withhold, alter, | 2 | | abstract, remove, mutilate, destroy, hide, or conceal any | 3 | | books, records, computer records, or other information or | 4 | | take actions designed to delay or complicate review of | 5 | | records. | 6 | | Section 110. Confidentiality. To promote more effective | 7 | | regulation, protect consumers and financing recipients, and | 8 | | reduce regulatory burden through inter-regulatory sharing of | 9 | | confidential supervisory information: | 10 | | (1) The privacy or confidentiality of any information | 11 | | or material provided to a multistate licensing system, | 12 | | including all privileges arising under federal or state | 13 | | court rules and law, shall continue to apply to the | 14 | | information or material after the information or material | 15 | | has been disclosed to the multistate licensing system. | 16 | | Information and material may be shared with a multistate | 17 | | licensing system, federal and state regulatory officials | 18 | | with relevant oversight authority, and law enforcement | 19 | | without the loss of privilege or the loss of | 20 | | confidentiality protections. | 21 | | (2) The Secretary is authorized to enter into | 22 | | agreements or sharing arrangements with other governmental | 23 | | agencies, the Conference of State Bank Supervisors, and | 24 | | other associations representing governmental agencies. | 25 | | (3) Information or material that is privileged or |
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| 1 | | confidential under this Act as determined by the Secretary | 2 | | is not subject to the following: | 3 | | (A) disclosure under any State law governing the | 4 | | disclosure to the public of information held by an | 5 | | officer or an agency of the State; or | 6 | | (B) subpoena, discovery, or admission into | 7 | | evidence, in any private civil action or | 8 | | administrative process except as authorized by the | 9 | | Secretary. | 10 | | (4) Any other law relating to the disclosure of | 11 | | confidential supervisory information that is inconsistent | 12 | | with this Act shall be superseded by the requirements of | 13 | | this Section to the extent the other law provides less | 14 | | confidentiality or a weaker privilege for information that | 15 | | is privileged or confidential under this Act. | 16 | | (5) Confidential or privileged information received | 17 | | from a multistate licensing system, another licensing | 18 | | body, federal and state regulatory officials, or law | 19 | | enforcement shall be protected to the same extent as the | 20 | | Secretary's confidential and privileged information is | 21 | | protected under this Act. The Secretary may also protect | 22 | | from disclosure confidential or privileged information | 23 | | that would be exempt from disclosure to the extent it is | 24 | | held directly by the multistate licensing system, another | 25 | | licensing body, federal and state regulatory officials, or | 26 | | law enforcement. |
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| 1 | | Section 115. Appeal and review. | 2 | | (a) The Secretary may, in accordance with the Illinois | 3 | | Administrative Procedure Act, adopt rules to provide for | 4 | | review within the Department of their decisions affecting the | 5 | | rights of persons under this Act. The review shall provide | 6 | | for, at a minimum: | 7 | | (1) appointment of a hearing officer; | 8 | | (2) appropriate procedural rules, specific deadlines | 9 | | for filings, and standards of evidence and of proof; and | 10 | | (3) provisions for apportioning costs among parties to | 11 | | the appeal. | 12 | | (b) All final agency determinations of appeals to | 13 | | decisions of the Secretary may be reviewed in accordance with | 14 | | and under the provisions of the Administrative Review Law. | 15 | | Appeals from all final orders and judgments entered by a court | 16 | | in review of any final administrative decision of the | 17 | | Secretary or of any final agency review of a decision of the | 18 | | Secretary may be taken as in other civil cases. | 19 | | Section 120. Registration fees. | 20 | | (a) The fee for initial registration is $2,500. The fee is | 21 | | nonrefundable. | 22 | | (b) The fee for annual application renewal is $2,500. The | 23 | | fee is nonrefundable. | 24 | | (c) The Department shall impose a contingent fee |
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| 1 | | sufficient to cover its operating expenses in administering | 2 | | this Act not otherwise covered by all other revenue collected | 3 | | under this Act. Each registrant shall pay to the Division its | 4 | | pro rata share, based on number or volume of transactions or | 5 | | revenue, of the cost for administration of this Act that | 6 | | exceeds other fees listed in this Section, as estimated by the | 7 | | Division, for the current year and any deficit actually | 8 | | incurred in the administration of this Act in prior years. | 9 | | Section 125. Cease and desist order. | 10 | | (a) The Secretary may issue a cease and desist order to any | 11 | | registrant or person doing business without the required | 12 | | registration when, in the opinion of the Secretary, the | 13 | | registrant or other person has violated, is violating, or is | 14 | | about to violate any provision of this Act or any rule adopted | 15 | | by the Department under this Act or any requirement imposed in | 16 | | writing by the Department as a condition of granting any | 17 | | authorization permitted by this Act. The cease and desist | 18 | | order authorized by this Section may be issued prior to a | 19 | | hearing. | 20 | | (b) The Secretary shall serve notice of the cease and | 21 | | desist order, either personally or by certified mail. Service | 22 | | by certified mail shall be deemed completed when the notice is | 23 | | deposited in the U.S. Mail. The Secretary's notice shall | 24 | | include a statement of the reasons for the action. | 25 | | (c) Within 10 days after service of the cease and desist |
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| 1 | | order, the person subject to the cease and desist order may | 2 | | request a hearing in writing. The Secretary shall schedule a | 3 | | preliminary hearing within 60 days after the request for a | 4 | | hearing unless the parties agree to a later date. | 5 | | (d) If it is determined that the Secretary had the | 6 | | authority to issue the cease and desist order, the Secretary | 7 | | may issue the orders as may be reasonably necessary to | 8 | | correct, eliminate, deter, or remedy the conduct described in | 9 | | the order and resulting harms. | 10 | | (e) The powers vested in the Secretary by this Section are | 11 | | additional to all other powers and remedies vested in the | 12 | | Secretary by any law. Nothing in this Section shall be | 13 | | construed as requiring that the Secretary shall employ the | 14 | | power conferred in this Section instead of or as a condition | 15 | | precedent to the exercise of any other power or remedy vested | 16 | | in the Secretary. | 17 | | Section 130. Injunctions. The Secretary may maintain an | 18 | | action in the name of the people of this State and may apply | 19 | | for an injunction in the circuit court to enjoin a person from | 20 | | violating this Act or its implementing rules through the | 21 | | Attorney General. | 22 | | Section 135. Exemptions. This Act does not apply to, and | 23 | | does not place any additional requirements or obligations | 24 | | upon, any of the following: |
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| 1 | | (1) any person or entity that is not a provider; | 2 | | (2) a commercial financing transaction secured by real | 3 | | property; | 4 | | (3) a lease as defined in Section 2-A-103 of the | 5 | | Uniform Commercial Code, not including finance leases as | 6 | | defined in paragraph (g) of subsection (1) of Section | 7 | | 2A-103 of the Uniform Commercial Code; or | 8 | | (4) a company primarily in the business of | 9 | | manufacturing equipment, or any subsidiary or affiliate of | 10 | | such a company, when offering a commercial financing | 11 | | transaction for which the majority of the proceeds are | 12 | | used to finance nonfinancial products manufactured by the | 13 | | company, or any subsidiary or affiliate of such a company, | 14 | | or the maintenance of or other services on such products; | 15 | | (5) any person or provider who makes no more than 5 | 16 | | commercial financing transactions in this State in a | 17 | | 12-month period; | 18 | | (6) a single, discrete commercial financing | 19 | | transaction in an amount over $500,000; or | 20 | | (7) a commercial financing transaction in which the | 21 | | recipient is a vehicle dealer subject to Section 5-101 or | 22 | | 5-102 of the Illinois Vehicle Code, an affiliate of a | 23 | | dealer, a rental vehicle company as defined in Section 10 | 24 | | of the Renter's Financial Responsibility and Protection | 25 | | Act, or an affiliate of a company under a commercial | 26 | | financing agreement or commercial open-end credit plan of |
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| 1 | | at least $50,000, including any commercial loan made under | 2 | | a commercial financing transaction. | 3 | | Section 140. Complaint disclosure. All commercial | 4 | | financing shall include a clear and conspicuous notice on how | 5 | | to file a complaint with the Department. | 6 | | Section 145. Rules. The Secretary may adopt rules to enact | 7 | | and enforce this Act, including, but not limited to: | 8 | | (1) rules defining the terms used in this Act and as | 9 | | may be necessary and appropriate to interpret and | 10 | | implement the provisions of this Act; | 11 | | (2) rules for the enforcement and administration of | 12 | | this Act; | 13 | | (3) rules for the protection of consumers and | 14 | | recipients in this State; | 15 | | (4) rules defining improper or fraudulent business | 16 | | practices in connection with commercial financing; and | 17 | | (5) rules to implement Section 165. | 18 | | Section 150. Violations. | 19 | | (a) Nothing in this Act shall be construed to restrict the | 20 | | exercise of powers or the performance of the duties that the | 21 | | Attorney General is authorized to exercise or perform by law. | 22 | | (b) Any violation of this Act constitutes an unlawful | 23 | | practice in violation of the Consumer Fraud and Deceptive |
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| 1 | | Business Practices Act. The Attorney General may enforce a | 2 | | violation of this Act as an unlawful practice under the | 3 | | Consumer Fraud and Deceptive Business Practices Act. | 4 | | Section 152. Limitation on liability. No provision of this | 5 | | Act imposes any liability on a provider as a result of the | 6 | | actual annual percentage rate charged by a provider differing | 7 | | from the estimated annual percentage rate disclosed in | 8 | | conformity with any regulation, order, or written interpretive | 9 | | opinion of the Secretary or any such opinion of the Attorney | 10 | | General, whether or not such regulation, order, or written | 11 | | interpretive opinion is later amended, rescinded, or repealed | 12 | | or determined by judicial or other authority to be invalid for | 13 | | any reason. | 14 | | Section 155. Beginning of registration. No person shall be | 15 | | required to register under this Act before the date | 16 | | established by the Department by rule. The date shall not be | 17 | | before January 1, 2025. | 18 | | Section 160. Beginning of disclosure requirements. No | 19 | | person shall be required to comply with the disclosure | 20 | | requirements set forth in Sections 45, 50, 55, 60, 65, 70, and | 21 | | 165 before the date established by the Department by rule. The | 22 | | date shall not be before January 1, 2025. |
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| 1 | | Section 165. Commercial financing database. | 2 | | (a) A commercial financing database program is established | 3 | | within the Department. The program shall be administered in | 4 | | accordance with this Section. None of the duties, obligations, | 5 | | contingencies, or consequences of or from the program shall be | 6 | | imposed until 6 months after the Department certifies a | 7 | | commercial financing database under subsection (b). The | 8 | | program shall apply to all sales-based financings and | 9 | | commercial closed-end financings for which interest charges | 10 | | that accrue on the outstanding balance represent a minority of | 11 | | the finance charge that are governed by this Act and that are | 12 | | made or taken on or after the inception of the program. | 13 | | (b) The Department shall certify that a commercial | 14 | | financing database is a commercially reasonable method of | 15 | | reporting. Upon certifying that a commercial financing | 16 | | database is a commercially reasonable method of reporting, the | 17 | | Department shall: | 18 | | (1) provide reasonable notice to all registrants | 19 | | identifying the commercially reasonable method of | 20 | | reporting that is available; and | 21 | | (2) no earlier than 6 months after certification, | 22 | | require each registrant offering sales-based financing or | 23 | | commercial closed-end financings for which interest | 24 | | charges that accrue on the outstanding balance represent a | 25 | | minority of the finance charge to use a commercially | 26 | | reasonable method of reporting as a means of complying |
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| 1 | | with subsection (d) of this Section. | 2 | | (c) The database created under this program shall be | 3 | | maintained and administered by the Department. The database | 4 | | shall be designed to allow providers to submit information to | 5 | | the database online. The database shall not be designed to | 6 | | allow providers to retrieve information from the database, | 7 | | except as otherwise provided in this Act. | 8 | | (d) Within 30 days after providing funds to a recipient, | 9 | | the provider shall submit to the commercial financing database | 10 | | the information delineated in subsections (e) and (f). If at | 11 | | the time funds are provided to a recipient, certain | 12 | | information delineated in this subsection is not known, then | 13 | | the provider shall submit the information to the commercial | 14 | | financing database within 30 days after the information | 15 | | becoming ascertainable. | 16 | | (e) For sales-based financings, the provider shall submit | 17 | | the following information to the commercial financing | 18 | | database: | 19 | | (1) the FEIN for the recipient; | 20 | | (2) the zip code of the recipient; | 21 | | (3) the date on which the disclosure required under | 22 | | Section 45 was provided; | 23 | | (4) the origination date of the sales-based financing; | 24 | | (5) the total amount of commercial financing; | 25 | | (6) the disbursed amount after any amount deducted or | 26 | | withheld at disbursement, if different than the financing |
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| 1 | | amount; | 2 | | (7) the finance charge; | 3 | | (8) the estimated annual percentage rate as disclosed | 4 | | to the recipient under paragraph (3) of Section 45; | 5 | | (9) the total repayment amount; | 6 | | (10) the estimated term, as disclosed to the recipient | 7 | | under paragraph (5) of Section 45; | 8 | | (11) the percentage of the recipient's sales upon | 9 | | which the payment is calculated; | 10 | | (12) the frequency of payment, and the total amount of | 11 | | average projected payments per month, as disclosed to the | 12 | | recipient under paragraph (6) of Section 45; | 13 | | (13) whether the projected sales volume used to | 14 | | determine the estimated annual percentage rate, estimated | 15 | | term, and projected payments provided in the disclosure | 16 | | under Section 45 were determined according to the | 17 | | historical method described in subparagraph (A) of | 18 | | paragraph (3) of Section 45 or according to the | 19 | | underwriting method described in subparagraph (B) of | 20 | | paragraph (3) of Section 45; | 21 | | (14) the amount of any finance charge the recipient | 22 | | would be required to pay if the recipient elects to pay off | 23 | | or refinance the sales-based financing before full | 24 | | repayment, as disclosed to the recipient; | 25 | | (15) description of collateral, if any, securing the | 26 | | sales-based financing, including any guarantee; |
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| 1 | | (16) the position of any lien taken; | 2 | | (17) upon full repayment, if the sales-based financing | 3 | | includes a true-up mechanism, the number of true-ups | 4 | | provided; | 5 | | (18) upon full repayment, the actual term of the | 6 | | commercial financing; | 7 | | (19) upon full repayment, the actual annual percentage | 8 | | rate calculated retrospectively based on the actual | 9 | | payments collected; and | 10 | | (20) all other information requested by the | 11 | | Department. | 12 | | (f) For closed-end financing for which interest charges | 13 | | that accrue on the outstanding balance represent a minority of | 14 | | the finance charge submit, the following information to the | 15 | | commercial financing database: | 16 | | (1) the FEIN for the recipient; | 17 | | (2) the zip code of the recipient; | 18 | | (3) the date on which the disclosure required under | 19 | | Section 50 was provided; | 20 | | (4) the origination date; | 21 | | (5) the total amount of commercial financing; | 22 | | (6) the disbursed amount after any amount deducted or | 23 | | withheld at disbursement, if different than the financing | 24 | | amount; | 25 | | (7) the finance charge; | 26 | | (8) the annual percentage rate as disclosed to the |
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| 1 | | recipient under paragraph (3) of Section 50; | 2 | | (9) the total repayment amount; | 3 | | (10) the term of the financing; | 4 | | (11) the frequency of payment; | 5 | | (12) the amount of the payment, and the total amount | 6 | | of average projected payments per month, as disclosed to | 7 | | the recipient under paragraph (6) of Section 50; | 8 | | (13) the amount of any finance charge the recipient | 9 | | would be required to pay if the recipient elects to pay off | 10 | | or refinance the commercial financing before full | 11 | | repayment, other than interest accrued since the last | 12 | | payment, as disclosed to the recipient; | 13 | | (14) whether the recipient would be required to pay | 14 | | any additional fees not already included in the finance | 15 | | charge if the recipient elects to pay off or refinance the | 16 | | commercial financing before full repayment, as disclosed | 17 | | to the recipient; | 18 | | (15) description of collateral, if any, securing the | 19 | | commercial financing, including any guarantee; | 20 | | (16) the position of any lien taken; and | 21 | | (17) all other information requested by the | 22 | | Department. | 23 | | (g) All personally identifiable information and | 24 | | information identifying the identity of a recipient obtained | 25 | | by way of the commercial financing database is strictly | 26 | | confidential and shall be exempt from disclosure under the |
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| 1 | | Freedom of Information Act and any other law or regulation | 2 | | pertaining to the disclosure of information or documents. The | 3 | | Department may, by rule, identify any additional categories of | 4 | | information the disclosure of which would be contrary to the | 5 | | public interest. Any request for production of information | 6 | | from the commercial financing database, whether by subpoena, | 7 | | notice, or any other source, shall be referred to the | 8 | | Department. Any recipient may authorize in writing the release | 9 | | of database information. The Department may use the | 10 | | information in the database without the consent of the | 11 | | recipient or the registrant: | 12 | | (1) for the purposes of administering and enforcing | 13 | | the program; | 14 | | (2) to prepare industry-level reports; | 15 | | (3) to provide information to the appropriate law | 16 | | enforcement agency or the applicable administrative or | 17 | | regulatory agency with a legitimate interest in the | 18 | | information as determined by the Secretary; | 19 | | (4) as required to comply with applicable law; or | 20 | | (5) in any other manner that the Secretary deems is | 21 | | not contrary to the public interest. | 22 | | (h) A registrant who submits information to a certified | 23 | | database provider in accordance with this Section shall not be | 24 | | liable to any person for any subsequent release or disclosure | 25 | | of that information by the certified database provider, the | 26 | | Department, or any other person acquiring possession of the |
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| 1 | | information, regardless of whether the subsequent release or | 2 | | disclosure was lawful, authorized, or intentional. | 3 | | (i) In certifying a commercially reasonable method of | 4 | | reporting, the Department shall ensure that the commercial | 5 | | financing database: | 6 | | (1) provides real-time access through an Internet | 7 | | connection; | 8 | | (2) is accessible to the Department and to registrants | 9 | | in order to ensure compliance with this Act and in order to | 10 | | provide any other information that the Department deems | 11 | | necessary; | 12 | | (3) requires registrants to input whatever information | 13 | | is required by the Department; | 14 | | (4) maintains a real-time copy of the required | 15 | | reporting information that is available to the Department | 16 | | at all times and is the property of the Department; and | 17 | | (5) contains safeguards to ensure that all information | 18 | | contained in the database regarding consumers and | 19 | | financing recipients is kept strictly confidential. | 20 | | (j) The certified commercial financing database may charge | 21 | | a fee to a registrant not to exceed $1 for each financing | 22 | | entered into the database. The certified commercial financing | 23 | | database shall not charge any additional fees or charges. | 24 | | (k) The certified commercial financing database provider | 25 | | shall produce an annual report for the Department using the | 26 | | data submitted by registrants to the database. The Department |
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| 1 | | may publish this report to the public. | 2 | | Section 170. Severability. The provisions of this Act are | 3 | | severable under Section 1.31 of the Statute on Statutes. | 4 | | Section 900. The Freedom of Information Act is amended by | 5 | | changing Section 7.5 as follows: | 6 | | (5 ILCS 140/7.5) | 7 | | (Text of Section before amendment by P.A. 103-472 ) | 8 | | Sec. 7.5. Statutory exemptions. To the extent provided for | 9 | | by the statutes referenced below, the following shall be | 10 | | exempt from inspection and copying: | 11 | | (a) All information determined to be confidential | 12 | | under Section 4002 of the Technology Advancement and | 13 | | Development Act. | 14 | | (b) Library circulation and order records identifying | 15 | | library users with specific materials under the Library | 16 | | Records Confidentiality Act. | 17 | | (c) Applications, related documents, and medical | 18 | | records received by the Experimental Organ Transplantation | 19 | | Procedures Board and any and all documents or other | 20 | | records prepared by the Experimental Organ Transplantation | 21 | | Procedures Board or its staff relating to applications it | 22 | | has received. | 23 | | (d) Information and records held by the Department of |
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| 1 | | Public Health and its authorized representatives relating | 2 | | to known or suspected cases of sexually transmissible | 3 | | disease or any information the disclosure of which is | 4 | | restricted under the Illinois Sexually Transmissible | 5 | | Disease Control Act. | 6 | | (e) Information the disclosure of which is exempted | 7 | | under Section 30 of the Radon Industry Licensing Act. | 8 | | (f) Firm performance evaluations under Section 55 of | 9 | | the Architectural, Engineering, and Land Surveying | 10 | | Qualifications Based Selection Act. | 11 | | (g) Information the disclosure of which is restricted | 12 | | and exempted under Section 50 of the Illinois Prepaid | 13 | | Tuition Act. | 14 | | (h) Information the disclosure of which is exempted | 15 | | under the State Officials and Employees Ethics Act, and | 16 | | records of any lawfully created State or local inspector | 17 | | general's office that would be exempt if created or | 18 | | obtained by an Executive Inspector General's office under | 19 | | that Act. | 20 | | (i) Information contained in a local emergency energy | 21 | | plan submitted to a municipality in accordance with a | 22 | | local emergency energy plan ordinance that is adopted | 23 | | under Section 11-21.5-5 of the Illinois Municipal Code. | 24 | | (j) Information and data concerning the distribution | 25 | | of surcharge moneys collected and remitted by carriers | 26 | | under the Emergency Telephone System Act. |
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| 1 | | (k) Law enforcement officer identification information | 2 | | or driver identification information compiled by a law | 3 | | enforcement agency or the Department of Transportation | 4 | | under Section 11-212 of the Illinois Vehicle Code. | 5 | | (l) Records and information provided to a residential | 6 | | health care facility resident sexual assault and death | 7 | | review team or the Executive Council under the Abuse | 8 | | Prevention Review Team Act. | 9 | | (m) Information provided to the predatory lending | 10 | | database created pursuant to Article 3 of the Residential | 11 | | Real Property Disclosure Act, except to the extent | 12 | | authorized under that Article. | 13 | | (n) Defense budgets and petitions for certification of | 14 | | compensation and expenses for court appointed trial | 15 | | counsel as provided under Sections 10 and 15 of the | 16 | | Capital Crimes Litigation Act (repealed) . This subsection | 17 | | (n) shall apply until the conclusion of the trial of the | 18 | | case, even if the prosecution chooses not to pursue the | 19 | | death penalty prior to trial or sentencing. | 20 | | (o) Information that is prohibited from being | 21 | | disclosed under Section 4 of the Illinois Health and | 22 | | Hazardous Substances Registry Act. | 23 | | (p) Security portions of system safety program plans, | 24 | | investigation reports, surveys, schedules, lists, data, or | 25 | | information compiled, collected, or prepared by or for the | 26 | | Department of Transportation under Sections 2705-300 and |
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| 1 | | 2705-616 of the Department of Transportation Law of the | 2 | | Civil Administrative Code of Illinois, the Regional | 3 | | Transportation Authority under Section 2.11 of the | 4 | | Regional Transportation Authority Act, or the St. Clair | 5 | | County Transit District under the Bi-State Transit Safety | 6 | | Act (repealed) . | 7 | | (q) Information prohibited from being disclosed by the | 8 | | Personnel Record Review Act. | 9 | | (r) Information prohibited from being disclosed by the | 10 | | Illinois School Student Records Act. | 11 | | (s) Information the disclosure of which is restricted | 12 | | under Section 5-108 of the Public Utilities Act. | 13 | | (t) (Blank). | 14 | | (u) Records and information provided to an independent | 15 | | team of experts under the Developmental Disability and | 16 | | Mental Health Safety Act (also known as Brian's Law). | 17 | | (v) Names and information of people who have applied | 18 | | for or received Firearm Owner's Identification Cards under | 19 | | the Firearm Owners Identification Card Act or applied for | 20 | | or received a concealed carry license under the Firearm | 21 | | Concealed Carry Act, unless otherwise authorized by the | 22 | | Firearm Concealed Carry Act; and databases under the | 23 | | Firearm Concealed Carry Act, records of the Concealed | 24 | | Carry Licensing Review Board under the Firearm Concealed | 25 | | Carry Act, and law enforcement agency objections under the | 26 | | Firearm Concealed Carry Act. |
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| 1 | | (v-5) Records of the Firearm Owner's Identification | 2 | | Card Review Board that are exempted from disclosure under | 3 | | Section 10 of the Firearm Owners Identification Card Act. | 4 | | (w) Personally identifiable information which is | 5 | | exempted from disclosure under subsection (g) of Section | 6 | | 19.1 of the Toll Highway Act. | 7 | | (x) Information which is exempted from disclosure | 8 | | under Section 5-1014.3 of the Counties Code or Section | 9 | | 8-11-21 of the Illinois Municipal Code. | 10 | | (y) Confidential information under the Adult | 11 | | Protective Services Act and its predecessor enabling | 12 | | statute, the Elder Abuse and Neglect Act, including | 13 | | information about the identity and administrative finding | 14 | | against any caregiver of a verified and substantiated | 15 | | decision of abuse, neglect, or financial exploitation of | 16 | | an eligible adult maintained in the Registry established | 17 | | under Section 7.5 of the Adult Protective Services Act. | 18 | | (z) Records and information provided to a fatality | 19 | | review team or the Illinois Fatality Review Team Advisory | 20 | | Council under Section 15 of the Adult Protective Services | 21 | | Act. | 22 | | (aa) Information which is exempted from disclosure | 23 | | under Section 2.37 of the Wildlife Code. | 24 | | (bb) Information which is or was prohibited from | 25 | | disclosure by the Juvenile Court Act of 1987. | 26 | | (cc) Recordings made under the Law Enforcement |
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| 1 | | Officer-Worn Body Camera Act, except to the extent | 2 | | authorized under that Act. | 3 | | (dd) Information that is prohibited from being | 4 | | disclosed under Section 45 of the Condominium and Common | 5 | | Interest Community Ombudsperson Act. | 6 | | (ee) Information that is exempted from disclosure | 7 | | under Section 30.1 of the Pharmacy Practice Act. | 8 | | (ff) Information that is exempted from disclosure | 9 | | under the Revised Uniform Unclaimed Property Act. | 10 | | (gg) Information that is prohibited from being | 11 | | disclosed under Section 7-603.5 of the Illinois Vehicle | 12 | | Code. | 13 | | (hh) Records that are exempt from disclosure under | 14 | | Section 1A-16.7 of the Election Code. | 15 | | (ii) Information which is exempted from disclosure | 16 | | under Section 2505-800 of the Department of Revenue Law of | 17 | | the Civil Administrative Code of Illinois. | 18 | | (jj) Information and reports that are required to be | 19 | | submitted to the Department of Labor by registering day | 20 | | and temporary labor service agencies but are exempt from | 21 | | disclosure under subsection (a-1) of Section 45 of the Day | 22 | | and Temporary Labor Services Act. | 23 | | (kk) Information prohibited from disclosure under the | 24 | | Seizure and Forfeiture Reporting Act. | 25 | | (ll) Information the disclosure of which is restricted | 26 | | and exempted under Section 5-30.8 of the Illinois Public |
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| 1 | | Aid Code. | 2 | | (mm) Records that are exempt from disclosure under | 3 | | Section 4.2 of the Crime Victims Compensation Act. | 4 | | (nn) Information that is exempt from disclosure under | 5 | | Section 70 of the Higher Education Student Assistance Act. | 6 | | (oo) Communications, notes, records, and reports | 7 | | arising out of a peer support counseling session | 8 | | prohibited from disclosure under the First Responders | 9 | | Suicide Prevention Act. | 10 | | (pp) Names and all identifying information relating to | 11 | | an employee of an emergency services provider or law | 12 | | enforcement agency under the First Responders Suicide | 13 | | Prevention Act. | 14 | | (qq) Information and records held by the Department of | 15 | | Public Health and its authorized representatives collected | 16 | | under the Reproductive Health Act. | 17 | | (rr) Information that is exempt from disclosure under | 18 | | the Cannabis Regulation and Tax Act. | 19 | | (ss) Data reported by an employer to the Department of | 20 | | Human Rights pursuant to Section 2-108 of the Illinois | 21 | | Human Rights Act. | 22 | | (tt) Recordings made under the Children's Advocacy | 23 | | Center Act, except to the extent authorized under that | 24 | | Act. | 25 | | (uu) Information that is exempt from disclosure under | 26 | | Section 50 of the Sexual Assault Evidence Submission Act. |
| | | SB2234 Engrossed | - 64 - | LRB103 28770 BMS 55153 b |
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| 1 | | (vv) Information that is exempt from disclosure under | 2 | | subsections (f) and (j) of Section 5-36 of the Illinois | 3 | | Public Aid Code. | 4 | | (ww) Information that is exempt from disclosure under | 5 | | Section 16.8 of the State Treasurer Act. | 6 | | (xx) Information that is exempt from disclosure or | 7 | | information that shall not be made public under the | 8 | | Illinois Insurance Code. | 9 | | (yy) Information prohibited from being disclosed under | 10 | | the Illinois Educational Labor Relations Act. | 11 | | (zz) Information prohibited from being disclosed under | 12 | | the Illinois Public Labor Relations Act. | 13 | | (aaa) Information prohibited from being disclosed | 14 | | under Section 1-167 of the Illinois Pension Code. | 15 | | (bbb) Information that is prohibited from disclosure | 16 | | by the Illinois Police Training Act and the Illinois State | 17 | | Police Act. | 18 | | (ccc) Records exempt from disclosure under Section | 19 | | 2605-304 of the Illinois State Police Law of the Civil | 20 | | Administrative Code of Illinois. | 21 | | (ddd) Information prohibited from being disclosed | 22 | | under Section 35 of the Address Confidentiality for | 23 | | Victims of Domestic Violence, Sexual Assault, Human | 24 | | Trafficking, or Stalking Act. | 25 | | (eee) Information prohibited from being disclosed | 26 | | under subsection (b) of Section 75 of the Domestic |
| | | SB2234 Engrossed | - 65 - | LRB103 28770 BMS 55153 b |
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| 1 | | Violence Fatality Review Act. | 2 | | (fff) Images from cameras under the Expressway Camera | 3 | | Act. This subsection (fff) is inoperative on and after | 4 | | July 1, 2025. | 5 | | (ggg) Information prohibited from disclosure under | 6 | | paragraph (3) of subsection (a) of Section 14 of the Nurse | 7 | | Agency Licensing Act. | 8 | | (hhh) Information submitted to the Illinois State | 9 | | Police in an affidavit or application for an assault | 10 | | weapon endorsement, assault weapon attachment endorsement, | 11 | | .50 caliber rifle endorsement, or .50 caliber cartridge | 12 | | endorsement under the Firearm Owners Identification Card | 13 | | Act. | 14 | | (iii) Data exempt from disclosure under Section 50 of | 15 | | the School Safety Drill Act. | 16 | | (jjj) (hhh) Information exempt from disclosure under | 17 | | Section 30 of the Insurance Data Security Law. | 18 | | (kkk) (iii) Confidential business information | 19 | | prohibited from disclosure under Section 45 of the Paint | 20 | | Stewardship Act. | 21 | | (lll) (Reserved). | 22 | | (mmm) (iii) Information prohibited from being | 23 | | disclosed under subsection (e) of Section 1-129 of the | 24 | | Illinois Power Agency Act. | 25 | | (nnn) Information exempt from disclosure under Section | 26 | | 165 of the Small Business Financing Transparency Act. |
| | | SB2234 Engrossed | - 66 - | LRB103 28770 BMS 55153 b |
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| 1 | | (Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22; | 2 | | 102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff. | 3 | | 8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22; | 4 | | 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff. | 5 | | 6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372, | 6 | | eff. 1-1-24; 103-508, eff. 8-4-23; 103-580, eff. 12-8-23; | 7 | | revised 1-2-24.) | 8 | | (Text of Section after amendment by P.A. 103-472 ) | 9 | | Sec. 7.5. Statutory exemptions. To the extent provided for | 10 | | by the statutes referenced below, the following shall be | 11 | | exempt from inspection and copying: | 12 | | (a) All information determined to be confidential | 13 | | under Section 4002 of the Technology Advancement and | 14 | | Development Act. | 15 | | (b) Library circulation and order records identifying | 16 | | library users with specific materials under the Library | 17 | | Records Confidentiality Act. | 18 | | (c) Applications, related documents, and medical | 19 | | records received by the Experimental Organ Transplantation | 20 | | Procedures Board and any and all documents or other | 21 | | records prepared by the Experimental Organ Transplantation | 22 | | Procedures Board or its staff relating to applications it | 23 | | has received. | 24 | | (d) Information and records held by the Department of | 25 | | Public Health and its authorized representatives relating |
| | | SB2234 Engrossed | - 67 - | LRB103 28770 BMS 55153 b |
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| 1 | | to known or suspected cases of sexually transmissible | 2 | | disease or any information the disclosure of which is | 3 | | restricted under the Illinois Sexually Transmissible | 4 | | Disease Control Act. | 5 | | (e) Information the disclosure of which is exempted | 6 | | under Section 30 of the Radon Industry Licensing Act. | 7 | | (f) Firm performance evaluations under Section 55 of | 8 | | the Architectural, Engineering, and Land Surveying | 9 | | Qualifications Based Selection Act. | 10 | | (g) Information the disclosure of which is restricted | 11 | | and exempted under Section 50 of the Illinois Prepaid | 12 | | Tuition Act. | 13 | | (h) Information the disclosure of which is exempted | 14 | | under the State Officials and Employees Ethics Act, and | 15 | | records of any lawfully created State or local inspector | 16 | | general's office that would be exempt if created or | 17 | | obtained by an Executive Inspector General's office under | 18 | | that Act. | 19 | | (i) Information contained in a local emergency energy | 20 | | plan submitted to a municipality in accordance with a | 21 | | local emergency energy plan ordinance that is adopted | 22 | | under Section 11-21.5-5 of the Illinois Municipal Code. | 23 | | (j) Information and data concerning the distribution | 24 | | of surcharge moneys collected and remitted by carriers | 25 | | under the Emergency Telephone System Act. | 26 | | (k) Law enforcement officer identification information |
| | | SB2234 Engrossed | - 68 - | LRB103 28770 BMS 55153 b |
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| 1 | | or driver identification information compiled by a law | 2 | | enforcement agency or the Department of Transportation | 3 | | under Section 11-212 of the Illinois Vehicle Code. | 4 | | (l) Records and information provided to a residential | 5 | | health care facility resident sexual assault and death | 6 | | review team or the Executive Council under the Abuse | 7 | | Prevention Review Team Act. | 8 | | (m) Information provided to the predatory lending | 9 | | database created pursuant to Article 3 of the Residential | 10 | | Real Property Disclosure Act, except to the extent | 11 | | authorized under that Article. | 12 | | (n) Defense budgets and petitions for certification of | 13 | | compensation and expenses for court appointed trial | 14 | | counsel as provided under Sections 10 and 15 of the | 15 | | Capital Crimes Litigation Act (repealed) . This subsection | 16 | | (n) shall apply until the conclusion of the trial of the | 17 | | case, even if the prosecution chooses not to pursue the | 18 | | death penalty prior to trial or sentencing. | 19 | | (o) Information that is prohibited from being | 20 | | disclosed under Section 4 of the Illinois Health and | 21 | | Hazardous Substances Registry Act. | 22 | | (p) Security portions of system safety program plans, | 23 | | investigation reports, surveys, schedules, lists, data, or | 24 | | information compiled, collected, or prepared by or for the | 25 | | Department of Transportation under Sections 2705-300 and | 26 | | 2705-616 of the Department of Transportation Law of the |
| | | SB2234 Engrossed | - 69 - | LRB103 28770 BMS 55153 b |
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| 1 | | Civil Administrative Code of Illinois, the Regional | 2 | | Transportation Authority under Section 2.11 of the | 3 | | Regional Transportation Authority Act, or the St. Clair | 4 | | County Transit District under the Bi-State Transit Safety | 5 | | Act (repealed) . | 6 | | (q) Information prohibited from being disclosed by the | 7 | | Personnel Record Review Act. | 8 | | (r) Information prohibited from being disclosed by the | 9 | | Illinois School Student Records Act. | 10 | | (s) Information the disclosure of which is restricted | 11 | | under Section 5-108 of the Public Utilities Act. | 12 | | (t) (Blank). | 13 | | (u) Records and information provided to an independent | 14 | | team of experts under the Developmental Disability and | 15 | | Mental Health Safety Act (also known as Brian's Law). | 16 | | (v) Names and information of people who have applied | 17 | | for or received Firearm Owner's Identification Cards under | 18 | | the Firearm Owners Identification Card Act or applied for | 19 | | or received a concealed carry license under the Firearm | 20 | | Concealed Carry Act, unless otherwise authorized by the | 21 | | Firearm Concealed Carry Act; and databases under the | 22 | | Firearm Concealed Carry Act, records of the Concealed | 23 | | Carry Licensing Review Board under the Firearm Concealed | 24 | | Carry Act, and law enforcement agency objections under the | 25 | | Firearm Concealed Carry Act. | 26 | | (v-5) Records of the Firearm Owner's Identification |
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| 1 | | Card Review Board that are exempted from disclosure under | 2 | | Section 10 of the Firearm Owners Identification Card Act. | 3 | | (w) Personally identifiable information which is | 4 | | exempted from disclosure under subsection (g) of Section | 5 | | 19.1 of the Toll Highway Act. | 6 | | (x) Information which is exempted from disclosure | 7 | | under Section 5-1014.3 of the Counties Code or Section | 8 | | 8-11-21 of the Illinois Municipal Code. | 9 | | (y) Confidential information under the Adult | 10 | | Protective Services Act and its predecessor enabling | 11 | | statute, the Elder Abuse and Neglect Act, including | 12 | | information about the identity and administrative finding | 13 | | against any caregiver of a verified and substantiated | 14 | | decision of abuse, neglect, or financial exploitation of | 15 | | an eligible adult maintained in the Registry established | 16 | | under Section 7.5 of the Adult Protective Services Act. | 17 | | (z) Records and information provided to a fatality | 18 | | review team or the Illinois Fatality Review Team Advisory | 19 | | Council under Section 15 of the Adult Protective Services | 20 | | Act. | 21 | | (aa) Information which is exempted from disclosure | 22 | | under Section 2.37 of the Wildlife Code. | 23 | | (bb) Information which is or was prohibited from | 24 | | disclosure by the Juvenile Court Act of 1987. | 25 | | (cc) Recordings made under the Law Enforcement | 26 | | Officer-Worn Body Camera Act, except to the extent |
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| 1 | | authorized under that Act. | 2 | | (dd) Information that is prohibited from being | 3 | | disclosed under Section 45 of the Condominium and Common | 4 | | Interest Community Ombudsperson Act. | 5 | | (ee) Information that is exempted from disclosure | 6 | | under Section 30.1 of the Pharmacy Practice Act. | 7 | | (ff) Information that is exempted from disclosure | 8 | | under the Revised Uniform Unclaimed Property Act. | 9 | | (gg) Information that is prohibited from being | 10 | | disclosed under Section 7-603.5 of the Illinois Vehicle | 11 | | Code. | 12 | | (hh) Records that are exempt from disclosure under | 13 | | Section 1A-16.7 of the Election Code. | 14 | | (ii) Information which is exempted from disclosure | 15 | | under Section 2505-800 of the Department of Revenue Law of | 16 | | the Civil Administrative Code of Illinois. | 17 | | (jj) Information and reports that are required to be | 18 | | submitted to the Department of Labor by registering day | 19 | | and temporary labor service agencies but are exempt from | 20 | | disclosure under subsection (a-1) of Section 45 of the Day | 21 | | and Temporary Labor Services Act. | 22 | | (kk) Information prohibited from disclosure under the | 23 | | Seizure and Forfeiture Reporting Act. | 24 | | (ll) Information the disclosure of which is restricted | 25 | | and exempted under Section 5-30.8 of the Illinois Public | 26 | | Aid Code. |
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| 1 | | (mm) Records that are exempt from disclosure under | 2 | | Section 4.2 of the Crime Victims Compensation Act. | 3 | | (nn) Information that is exempt from disclosure under | 4 | | Section 70 of the Higher Education Student Assistance Act. | 5 | | (oo) Communications, notes, records, and reports | 6 | | arising out of a peer support counseling session | 7 | | prohibited from disclosure under the First Responders | 8 | | Suicide Prevention Act. | 9 | | (pp) Names and all identifying information relating to | 10 | | an employee of an emergency services provider or law | 11 | | enforcement agency under the First Responders Suicide | 12 | | Prevention Act. | 13 | | (qq) Information and records held by the Department of | 14 | | Public Health and its authorized representatives collected | 15 | | under the Reproductive Health Act. | 16 | | (rr) Information that is exempt from disclosure under | 17 | | the Cannabis Regulation and Tax Act. | 18 | | (ss) Data reported by an employer to the Department of | 19 | | Human Rights pursuant to Section 2-108 of the Illinois | 20 | | Human Rights Act. | 21 | | (tt) Recordings made under the Children's Advocacy | 22 | | Center Act, except to the extent authorized under that | 23 | | Act. | 24 | | (uu) Information that is exempt from disclosure under | 25 | | Section 50 of the Sexual Assault Evidence Submission Act. | 26 | | (vv) Information that is exempt from disclosure under |
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| 1 | | subsections (f) and (j) of Section 5-36 of the Illinois | 2 | | Public Aid Code. | 3 | | (ww) Information that is exempt from disclosure under | 4 | | Section 16.8 of the State Treasurer Act. | 5 | | (xx) Information that is exempt from disclosure or | 6 | | information that shall not be made public under the | 7 | | Illinois Insurance Code. | 8 | | (yy) Information prohibited from being disclosed under | 9 | | the Illinois Educational Labor Relations Act. | 10 | | (zz) Information prohibited from being disclosed under | 11 | | the Illinois Public Labor Relations Act. | 12 | | (aaa) Information prohibited from being disclosed | 13 | | under Section 1-167 of the Illinois Pension Code. | 14 | | (bbb) Information that is prohibited from disclosure | 15 | | by the Illinois Police Training Act and the Illinois State | 16 | | Police Act. | 17 | | (ccc) Records exempt from disclosure under Section | 18 | | 2605-304 of the Illinois State Police Law of the Civil | 19 | | Administrative Code of Illinois. | 20 | | (ddd) Information prohibited from being disclosed | 21 | | under Section 35 of the Address Confidentiality for | 22 | | Victims of Domestic Violence, Sexual Assault, Human | 23 | | Trafficking, or Stalking Act. | 24 | | (eee) Information prohibited from being disclosed | 25 | | under subsection (b) of Section 75 of the Domestic | 26 | | Violence Fatality Review Act. |
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| 1 | | (fff) Images from cameras under the Expressway Camera | 2 | | Act. This subsection (fff) is inoperative on and after | 3 | | July 1, 2025. | 4 | | (ggg) Information prohibited from disclosure under | 5 | | paragraph (3) of subsection (a) of Section 14 of the Nurse | 6 | | Agency Licensing Act. | 7 | | (hhh) Information submitted to the Illinois State | 8 | | Police in an affidavit or application for an assault | 9 | | weapon endorsement, assault weapon attachment endorsement, | 10 | | .50 caliber rifle endorsement, or .50 caliber cartridge | 11 | | endorsement under the Firearm Owners Identification Card | 12 | | Act. | 13 | | (iii) Data exempt from disclosure under Section 50 of | 14 | | the School Safety Drill Act. | 15 | | (jjj) (hhh) Information exempt from disclosure under | 16 | | Section 30 of the Insurance Data Security Law. | 17 | | (kkk) (iii) Confidential business information | 18 | | prohibited from disclosure under Section 45 of the Paint | 19 | | Stewardship Act. | 20 | | (lll) (iii) Data exempt from disclosure under Section | 21 | | 2-3.196 of the School Code. | 22 | | (mmm) (iii) Information prohibited from being | 23 | | disclosed under subsection (e) of Section 1-129 of the | 24 | | Illinois Power Agency Act. | 25 | | (nnn) Information exempt from disclosure under Section | 26 | | 165 of the Small Business Financing Transparency Act. |
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| 1 | | (Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22; | 2 | | 102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff. | 3 | | 8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22; | 4 | | 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff. | 5 | | 6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372, | 6 | | eff. 1-1-24; 103-472, eff. 8-1-24; 103-508, eff. 8-4-23; | 7 | | 103-580, eff. 12-8-23; revised 1-2-24.) | 8 | | Section 905. The Consumer Fraud and Deceptive Business | 9 | | Practices Act is amended by adding Section 2EEEE as follows: | 10 | | (815 ILCS 505/2EEEE new) | 11 | | Sec. 2EEEE. Violations of the Small Business Financing | 12 | | Transparency Act. Any person who violates the Small Business | 13 | | Financing Transparency Act commits an unlawful practice within | 14 | | the meaning of this Act. | 15 | | Section 995. No acceleration or delay. Where this Act | 16 | | makes changes in a statute that is represented in this Act by | 17 | | text that is not yet or no longer in effect (for example, a | 18 | | Section represented by multiple versions), the use of that | 19 | | text does not accelerate or delay the taking effect of (i) the | 20 | | changes made by this Act or (ii) provisions derived from any | 21 | | other Public Act. | 22 | | Section 999. Effective date. This Act takes effect upon | 23 | | becoming law. |
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