Full Text of HB0101 98th General Assembly
HB0101enr 98TH GENERAL ASSEMBLY |
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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 5. The Pawnbroker Regulation Act is amended by | 5 | | changing Sections 0.05 and 4 as follows:
| 6 | | (205 ILCS 510/0.05)
| 7 | | Sec. 0.05. Administration of Act.
| 8 | | (a) This Act shall be administered by the
Secretary of | 9 | | Financial and Professional Regulation, and, beginning on July | 10 | | 28, 2010 (the effective date of Public Act 96-1365), all | 11 | | references in this Act to the Commissioner of Banks and Real | 12 | | Estate are deemed, in appropriate contexts, to be references to | 13 | | the Secretary of Financial and Professional Regulation, who | 14 | | shall have all of the following
powers and duties in | 15 | | administering this Act:
| 16 | | (1) To promulgate reasonable rules for the purpose of | 17 | | administering the
provisions of this Act.
| 18 | | (2) To issue orders for the purpose of administering | 19 | | the provisions of
this
Act and any rule promulgated in | 20 | | accordance with this Act.
| 21 | | (2.5) To order restitution to consumers suffering | 22 | | damages resulting from violations of this Act, rules | 23 | | promulgated in accordance with this Act, or other laws or |
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| 1 | | regulations related to the operation of a pawnshop.
| 2 | | (3) To appoint hearing officers and to hire employees | 3 | | or to contract with
appropriate persons to execute any of | 4 | | the powers granted to
the Secretary under this Section for | 5 | | the purpose of administering this
Act and any rule | 6 | | promulgated in accordance with this Act.
| 7 | | (4) To subpoena witnesses, to compel their attendance, | 8 | | to administer an
oath, to examine any person under oath, | 9 | | and to require the production of any
relevant books, | 10 | | papers, accounts, and documents in the course of and | 11 | | pursuant
to any investigation being conducted, or any | 12 | | action being taken, by the
Secretary in respect of any | 13 | | matter relating to the duties imposed upon, or
the powers | 14 | | vested in, the Secretary under the provisions of this Act | 15 | | or any
rule promulgated in accordance with this Act.
| 16 | | (5) To conduct hearings.
| 17 | | (6) To impose civil penalties graduated up to $10,000 | 18 | | $1,000 against any person
for each day that person violates
| 19 | | violation of any provision of this Act, any rule | 20 | | promulgated in
accordance
with this Act, any State or | 21 | | federal law affecting pawnbrokers, or any order of the | 22 | | Secretary
based upon the seriousness of the violation.
| 23 | | (6.5) To initiate, through the Attorney General, | 24 | | injunction proceedings
whenever it appears to the | 25 | | Secretary that any person, whether licensed under
this Act | 26 | | or not, is engaged or about to engage in an act or practice |
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| 1 | | that
constitutes or will constitute a violation of this Act | 2 | | or any rule prescribed
under the authority of this Act. The | 3 | | Secretary may, in his or her
discretion, through the | 4 | | Attorney General, apply for an injunction, and upon a
| 5 | | proper showing, any circuit court may enter a permanent or | 6 | | preliminary
injunction or a temporary restraining order | 7 | | without bond to enforce this Act in
addition to the | 8 | | penalties and other remedies provided for in this Act.
| 9 | | (7) To issue a cease and desist order and, for | 10 | | violations of
this Act, any order issued by the Secretary | 11 | | pursuant to this Act, any
rule promulgated in accordance | 12 | | with this Act,
or any other applicable law in connection | 13 | | with the operation of a pawnshop,
to suspend a license | 14 | | issued under this Act for up to 30 days.
| 15 | | (8) To determine
compliance with applicable law and | 16 | | rules related to the operation of pawnshops
and to verify | 17 | | the accuracy of reports filed with the Secretary, the
| 18 | | Secretary, not more than one time every 2 years, may, but | 19 | | is not required
to, conduct a routine examination of a | 20 | | pawnshop, and in
addition, the Secretary may examine the | 21 | | affairs of any pawnshop at any time if the Secretary
has
| 22 | | reasonable cause to believe that unlawful or fraudulent | 23 | | activity is occurring,
or has occurred, therein.
| 24 | | (9) In response to a complaint, to address any | 25 | | inquiries to any pawnshop
in relation to its affairs, and | 26 | | it shall be the duty of the pawnshop to
promptly reply in |
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| 1 | | writing to such inquiries. The Secretary may also require
| 2 | | reports or information from any pawnshop at any time the | 3 | | Secretary may deem
desirable.
| 4 | | (10) To revoke a license issued under this Act if the | 5 | | Secretary
determines that (a) a licensee has been convicted | 6 | | of a felony in connection
with the operations of a | 7 | | pawnshop; (b) a licensee knowingly, recklessly, or
| 8 | | continuously violated this Act or State or federal law or | 9 | | regulation, a rule promulgated in
accordance with this Act, | 10 | | or any order of the Secretary; (c) a fact or
condition | 11 | | exists that, if it had existed or had been known at the | 12 | | time of the
original application, would have justified | 13 | | license refusal; (d) the licensee
knowingly submits | 14 | | materially false or misleading documents with the intent to
| 15 | | deceive the Secretary or any other party; or (e) the | 16 | | licensee is unable or ceases to continue to operate the | 17 | | pawnshop.
| 18 | | (10.2) To remove or prohibit the employment of any | 19 | | officer, director, employee, or agent of the pawnshop who | 20 | | engages in or has engaged in unlawful activities that | 21 | | relate to the operation of a pawnshop. | 22 | | (10.7) To prohibit the hiring of employees who have | 23 | | been convicted of a financial crime or any crime involving | 24 | | breach of trust who do not meet exceptions as established | 25 | | by rule of the Secretary.
| 26 | | (11) Following license revocation, to take possession |
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| 1 | | and control of a
pawnshop for the purpose of examination, | 2 | | reorganization, or liquidation through
receivership and to | 3 | | appoint a receiver, which may be the Secretary, a
pawnshop, | 4 | | or
another suitable person.
| 5 | | (b) After consultation with local law enforcement | 6 | | officers, the Attorney
General, and the industry, the Secretary | 7 | | may by rule require that
pawnbrokers
operate video camera | 8 | | surveillance systems to record photographic
representations of | 9 | | customers and retain the tapes produced for up to 30 days.
| 10 | | (c) Pursuant to rule, the Secretary shall issue licenses on | 11 | | an annual or
multi-year basis for operating a
pawnshop. Any | 12 | | person currently operating or
who has operated a pawnshop in | 13 | | this State during the 2 years preceding the
effective date of | 14 | | this amendatory Act of 1997 shall be issued a license upon
| 15 | | payment of the fee required under this Act. New applicants | 16 | | shall meet
standards for a license as established by the | 17 | | Secretary.
Except with the prior written consent of the | 18 | | Secretary, no individual,
either a new applicant or a person | 19 | | currently operating a pawnshop, may be
issued a license to | 20 | | operate a pawnshop if the individual has been convicted
of a | 21 | | felony or of any criminal offense relating to dishonesty or | 22 | | breach of
trust in connection with the operations of a | 23 | | pawnshop.
The Secretary shall
establish license fees. The fees | 24 | | shall not exceed the amount reasonably
required for | 25 | | administration of this Act. It shall be unlawful to operate a
| 26 | | pawnshop without a license issued by the Secretary.
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| 1 | | (d) In addition to license fees, the Secretary may, by | 2 | | rule, establish
fees in connection with a review, approval, or | 3 | | provision of a service, and levy
a reasonable charge to recover | 4 | | the cost of the review, approval, or service
(such as a change | 5 | | in control, change in location, or renewal of a license).
The | 6 | | Secretary may also levy a reasonable charge to recover the cost | 7 | | of an
examination if the Secretary determines that unlawful or | 8 | | fraudulent activity
has occurred. The Secretary may require | 9 | | payment of the fees and charges
provided in this Act by | 10 | | certified check, money order, an electronic transfer of
funds, | 11 | | or an automatic debit of an account.
| 12 | | (e) The Pawnbroker Regulation Fund is established as a | 13 | | special
fund in the State treasury. Moneys collected under this | 14 | | Act shall be deposited
into the Fund and used for the | 15 | | administration of this Act.
In the event that General Revenue | 16 | | Funds are appropriated to the Department of Financial and | 17 | | Professional Regulation for the initial implementation of this
| 18 | | Act, the Governor may direct the repayment from the Pawnbroker | 19 | | Regulation
Fund to the General Revenue Fund of such advance in | 20 | | an amount not to exceed
$30,000. The Governor may direct this | 21 | | interfund transfer at such time as he
deems appropriate by | 22 | | giving appropriate written notice. Moneys in the Pawnbroker | 23 | | Regulation Fund may be transferred to the Professions Indirect | 24 | | Cost Fund, as authorized under Section 2105-300 of the | 25 | | Department of Professional Regulation Law of the Civil | 26 | | Administrative Code of Illinois.
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| 1 | | (f) The Secretary may, by rule, require all pawnshops to | 2 | | provide for
the expenses that would arise from the | 3 | | administration of the receivership of a
pawnshop under this Act | 4 | | through the assessment of fees, the requirement to
pledge | 5 | | surety bonds, or such other methods as determined by the | 6 | | Secretary.
| 7 | | (g) All final administrative decisions of the Secretary | 8 | | under
this Act shall be subject to judicial review pursuant to | 9 | | the provisions of the
Administrative Review Law. For matters | 10 | | involving administrative review, venue
shall be in
either | 11 | | Sangamon County or Cook County.
| 12 | | (Source: P.A. 96-1038, eff. 7-14-10; 96-1365, eff. 7-28-10; | 13 | | 97-333, eff. 8-12-11.)
| 14 | | (205 ILCS 510/4) (from Ch. 17, par. 4654)
| 15 | | Sec. 4.
Every pawnbroker shall, at the time of making any | 16 | | advancement
or loan, deliver to the person pawning or pledging | 17 | | any property, a
memorandum, contract, or note signed by him or | 18 | | her containing an accurate
account and description, in the | 19 | | English language, of all the goods,
articles or other things | 20 | | pawned or pledged, the amount of money,
value of things loaned | 21 | | thereon, the time of pledging the same, the
rate of interest to | 22 | | be paid on the loan, the name and residence of
the person | 23 | | making the pawn or pledge, and the amount of any fees
as | 24 | | specified in Section 2 of this Act.
| 25 | | (Source: P.A. 87-802.)
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| 1 | | Section 99. Effective date. This Act takes effect upon | 2 | | becoming law. |
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