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90_HB2215ccr001
LRB9004318JSgcccr4
1 90TH GENERAL ASSEMBLY
2 CONFERENCE COMMITTEE REPORT
3 ON HOUSE BILL 2215
4 -------------------------------------------------------------
5 -------------------------------------------------------------
6 To the President of the Senate and the Speaker of the
7 House of Representatives:
8 We, the conference committee appointed to consider the
9 differences between the houses in relation to Senate
10 Amendment No. 2 to House Bill 2215, recommend the following:
11 (1) that the House of Representatives concur in Senate
12 Amendment No. 2; and
13 (2) that House Bill 2215 be further amended by replacing
14 the title with the following:
15 "AN ACT concerning pawnbrokers, amending named Acts.";
16 and
17 by replacing Section 5 of the bill with the following;
18 "Section 5. The Pawnbroker Regulation Act is amended by
19 changing Sections 2, 5, 6, 7, 10, and 11 and adding Sections
20 0.05 and 7.5 as follows:
21 (205 ILCS 510/0.05 new)
22 Sec. 0.05. Administration of Act.
23 (a) This Act shall be administered by the Commissioner
24 of Banks and Real Estate who shall have all of the following
25 powers and duties in administering this Act:
26 (1) To promulgate reasonable rules for the purpose
27 of administering the provisions of this Act.
28 (2) To issue orders for the purpose of
29 administering the provisions of this Act and any rule
30 promulgated in accordance with this Act.
31 (3) To appoint hearing officers and to hire
32 employees or to contract with appropriate persons to
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1 execute any of the powers granted to the Commissioner
2 under this Section for the purpose of administering this
3 Act and any rule promulgated in accordance with this Act.
4 (4) To subpoena witnesses, to compel their
5 attendance, to administer an oath, to examine any person
6 under oath, and to require the production of any relevant
7 books, papers, accounts, and documents in the course of
8 and pursuant to any investigation being conducted, or any
9 action being taken, by the Commissioner in respect of any
10 matter relating to the duties imposed upon, or the powers
11 vested in, the Commissioner under the provisions of this
12 Act or any rule promulgated in accordance with this Act.
13 (5) To conduct hearings.
14 (6) To impose civil penalties graduated up to
15 $1,000 against any person for each violation of any
16 provision of this Act or any rule promulgated in
17 accordance with this Act based upon the seriousness of
18 the violation.
19 (7) To issue a cease and desist order and, for
20 violations of this Act or any rule promulgated in
21 accordance with this Act, to suspend a license issued
22 under this Act for up to 30 days, and for a continued
23 pattern of violations to revoke a license issued under
24 this Act.
25 (b) After consultation with local law enforcement
26 officers, the Attorney General, and the industry, the
27 Commissioner may by rule require that pawnbrokers operate
28 video camera surveillance systems to record photographic
29 representations of customers and retain the tapes produced
30 for up to 30 days.
31 (c) Pursuant to rule, the Commissioner shall issue
32 licenses on an annual or multi-year basis for operating a
33 pawn shop. Any person currently operating or who has operated
34 a pawnshop in this State during the 2 years preceding the
35 effective date of this amendatory Act of 1997 shall be issued
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1 a license upon payment of the fee required under this Act.
2 New applicants shall meet standards for a license as
3 established by the Commissioner. The Commissioner shall
4 establish license fees. The fees shall not exceed the amount
5 reasonably required for administration of this Act. It shall
6 be unlawful to operate a pawn shop without a license.
7 (d) The Pawnbroker Regulation Fund is established as a
8 special fund in the State treasury. Moneys collected under
9 this Act shall be deposited into the Fund and used for the
10 administration of this Act. In the event that General
11 Revenue Funds are appropriated to the Office of the
12 Commissioner of Banks and Real Estate for the initial
13 implementation of this Act, the Governor may direct the
14 repayment from the Pawnbroker Regulation Fund to the General
15 Revenue Fund of such advance in an amount not to exceed
16 $30,000. The Governor may direct this interfund transfer at
17 such time as he deems appropriate by giving appropriate
18 written notice.
19 (e) All final administrative decisions of the
20 Commissioner under this Act shall be subject to judicial
21 review pursuant to the provisions of the Administrative
22 Review Law. For matters involving administrative review,
23 venue shall be in either Sangamon County or Cook County.
24 (205 ILCS 510/2) (from Ch. 17, par. 4652)
25 Sec. 2. It shall be unlawful for any pawnbroker to charge
26 or collect a greater benefit or percentage upon money
27 advanced, and for the use and forbearance thereof, than the
28 rate of 3% per month. Nothing in this Section shall be
29 construed so as to conflict with the law pertaining to usury
30 and the person receiving money so advanced may hold such
31 moneys to pay any fees in addition to interest as herein
32 provided.
33 Each pawnbroker, when making a loan under this Section,
34 must disclose in printed form on the pawn contract the
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1 following information to the persons receiving the loan:
2 (1) the amount of money advanced, which must be
3 designated as the amount financed;
4 (2) the maturity date of the pawn, which must be at
5 least 30 days after the date of the pawn;
6 (3) the total pawn interest and service charge
7 payable on the maturity date, which must be designated as
8 the finance charge;
9 (4) the total of payments that must be paid to
10 redeem the pledged goods on the maturity date, which must
11 be designated as the total of payments; and
12 (5) the annual percentage rate, computed according
13 to the regulations adopted by the Board of Governors of
14 the Federal Reserve System under the Federal Truth in
15 Lending Act.
16 Each pawnbroker may contract for and receive a monthly
17 finance charge including interest and fees not to exceed
18 one-fifth of the loan amount such fees in addition to
19 interest authorized by this Section, as set forth herein, for
20 appraising, investigating title, storing storage, and
21 insuring the collateral, closing the loan, making daily
22 reports to local law enforcement officers including enhanced
23 computerized reporting, complying with regulatory
24 requirements, and for other expenses and losses of every
25 nature whatsoever and for all other services. Such fees, when
26 made and collected, shall not be deemed interest for any
27 purpose of law.
28 Every pawnbroker, when making a loan under this Section,
29 shall be entitled to charge and collect a one-time fee for
30 each loan for services rendered as set forth in the following
31 schedule:
32 (a) For loans not exceeding $100 a fee not to
33 exceed $12;
34 (b) For loans exceeding $100 but not exceeding $250
35 a fee not to exceed $25;
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1 (c) For loans exceeding $250 but not exceeding $500
2 a fee not to exceed $35;
3 (d) For loans exceeding $500 but not exceeding
4 $1,000 a fee not to exceed $50;
5 (e) For loans exceeding $1,000 a fee not to exceed
6 5% of the loan principal.
7 (Source: P.A. 87-802.)
8 (205 ILCS 510/5) (from Ch. 17, par. 4655)
9 Sec. 5. Record requirements.
10 (a) Every pawn and loan broker shall keep a standard
11 record book that has been approved by the sheriff of the
12 county in which the pawnbroker does business, in which shall
13 be printed, typed, or written in ink, at the time of each and
14 every loan or taking of a pledge, an accurate account and
15 description, in the English language, of all the goods,
16 articles and other things pawned or pledged, the amount of
17 money, value or thing loaned thereon, the time of pledging
18 the same, the rate of interest to be paid on such loan, and
19 the name and residence of the person making such pawn or
20 pledge. Such entry shall include the serial number or
21 identification number of items received which are required to
22 bear such number. Except for items purchased from dealers
23 possessing a federal employee identification number who have
24 provided a receipt to the pawnbroker, every pawnbroker shall
25 also record in his book, an accurate account and description,
26 in the English language, of all goods, articles and other
27 things purchased or received for the purpose of resale or
28 loan collateral by the pawnbroker from any source, not in the
29 course of a pledge or loan, the time of such purchase or
30 receipt and the name and address of the person or business
31 which sold or delivered such goods, articles, or other things
32 to the pawnbroker. No entry in such book shall be erased,
33 mutilated or changed.
34 (b) Every pawnbroker shall require 2 forms of
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1 identification to be shown him by each person pledging or
2 pawning any goods, articles or other things to the
3 pawnbroker. One of the two forms of identification must
4 include his or her residence address. These forms of
5 identification shall include, but not be limited to, any of
6 the following: driver's license, social security card,
7 utility bill, employee or student identification card, credit
8 card, or a civic, union or professional association
9 membership card.
10 (c) A pawnbroker may maintain the records required by
11 subsection (a) in computer form if the computer form has been
12 approved by the Commissioner, the sheriff of the county in
13 which the shop is located, and the police department of the
14 municipality in which the shop is located.
15 (d) Records, including reports to the Commissioner,
16 maintained by pawnbrokers shall be confidential, and no
17 disclosure of pawnbroker records shall be made except
18 disclosures authorized by this Act or ordered by a court of
19 competent jurisdiction. No record transferred to a
20 governmental official shall be improperly disclosed, provided
21 that use of those records as evidence of a felony or
22 misdemeanor shall be a proper purpose.
23 (e) Pawnbrokers and their associations may lawfully give
24 appropriate governmental agencies computer equipment for the
25 purpose of transferring information pursuant to this Act.
26 (Source: P.A. 84-1308.)
27 (205 ILCS 510/6) (from Ch. 17, par. 4656)
28 Sec. 6. Inspection of records. The said book or computer
29 records, as well as every article or other thing of value so
30 pawned or pledged, shall at all times be open to the
31 inspection of the sheriff of the county, his deputies or any
32 members of the police force of any city in the county in
33 which such pawnbroker does business.
34 (Source: Laws 1909, p. 300.)
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1 (205 ILCS 510/7) (from Ch. 17, par. 4657)
2 Sec. 7. Daily report.
3 (a) Except as provided in subsection (b), it shall be
4 the duty of every pawnbroker to make out and deliver to the
5 sheriff of the county in which such pawnbroker does business,
6 on each day before the hours of 12 o'clock noon, a legible
7 and exact copy from the standard record book, as required in
8 Section 5 of this Act, that lists all personal property and
9 any other valuable thing things received on deposit or
10 purchased during the preceding day, including together with
11 the exact time when received or purchased, and a description
12 of the person or person by whom left in pledge, or from whom
13 the same were purchased; provided, that in cities or towns
14 having 25,000 twenty-five thousand or more inhabitants, a
15 copy of the such report shall at the same time also be
16 delivered to the superintendent of police or the chief police
17 officer of such city or town. Such report may be made by
18 computer printout or input memory device if the format has
19 been approved by the local law enforcement agency.
20 (b) In counties with more than 3,000,000 inhabitants, a
21 pawnbroker must provide the daily report to the sheriff only
22 if the pawnshop is located in an unincorporated area of the
23 county.
24 (Source: P.A. 84-479.)
25 (205 ILCS 510/7.5 new)
26 Sec. 7.5. Report to the Commissioner.
27 (a) A licensee shall file a report with the Commissioner
28 disclosing all of the following information for the preceding
29 calendar year:
30 (1) Number of pawns made.
31 (2) Amount financed on pawn transactions.
32 (3) Average amount financed.
33 (4) Number of pawns not redeemed.
34 (5) Amount of pawns not redeemed.
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1 (6) Average amount of pawns not redeemed.
2 (7) Number of pawns surrendered to law enforcement.
3 (8) Amount of pawns surrendered to law enforcement.
4 (9) Average size of pawns surrendered to law
5 enforcement.
6 (10) Number of pawnshop employees as of the end of
7 the calendar year.
8 (b) The office of the Commissioner of Banks and Real
9 Estate shall prescribe the form of the report and establish
10 the date by which the report must be filed.
11 (205 ILCS 510/10) (from Ch. 17, par. 4660)
12 Sec. 10. Sale of property. No personal property received
13 on deposit or pledge, or purchased by any such pawnbroker,
14 shall be sold or permitted to be redeemed or removed from the
15 place of business of such pawnbroker for the space of 48
16 twenty-four hours after the delivery of the copy and
17 statement required by Section 7 of this Act required to be
18 delivered to the officer or officers named therein. If the
19 pawner or pledger fails to repay the loan during the period
20 specified on the pawn ticket, the pawnbroker shall
21 automatically extend a grace period of 30 days from the
22 default date on the loan during which the pawnbroker shall
23 not dispose of or sell the personal property pledged. The
24 parties may agree to extend or renew a loan upon terms agreed
25 upon by the parties, provided the terms comply with the
26 requirements of this Act; and no personal property pawned or
27 pledged shall be sold or disposed of by any such pawnbroker
28 within one year from the time when the pawner or pledger
29 shall make default in the payment of interest on the money so
30 advanced by such pawnbroker, unless by the written consent of
31 such pawner or pledger.
32 (Source: Laws 1909, p. 300.)
33 (205 ILCS 510/11) (from Ch. 17, par. 4661)
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1 Sec. 11. Every person pawnbroker who knowingly violates
2 the provisions of this Act shall, for the first offense, be
3 guilty of a Class C misdemeanor, and for each subsequent
4 offense shall be guilty of a Class A misdemeanor, provided,
5 that this Act shall not be construed as to, in any wise,
6 impair the power of cities or villages in this State to
7 license, tax, regulate except as to fee amounts, suppress,
8 and prohibit pawnbrokers as now provided by law.
9 (Source: P.A. 84-195.)
10 Section 10. The State Finance Act is amended by adding
11 Section 5.449 as follows:
12 (30 ILCS 105/5.449 new)
13 Sec. 5.449. The Pawnbroker Regulation Fund.".
14 Submitted on , 1997.
15 ______________________________ _____________________________
16 Senator Dillard Representative Capparelli
17 ______________________________ _____________________________
18 Senator Burzynski Representative Bugielski
19 ______________________________ _____________________________
20 Senator Madigan, R. Representative Hannig
21 ______________________________ _____________________________
22 Senator Molaro Representative Churchill
23 ______________________________ _____________________________
24 Senator Del Valle Representative Pankau
25 Committee for the Senate Committee for the House