State of Illinois
92nd General Assembly

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 1        AN ACT concerning pawnbrokers.

 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, 5, 6, and 11 as follows:

 6        (205 ILCS 510/0.05)
 7        Sec. 0.05.  Administration of Act.
 8        (a)  This Act shall be administered by  the  Commissioner
 9    of  Banks and Real Estate who shall have all of the following
10    powers and duties in administering this Act:
11             (1)  To promulgate reasonable rules for the  purpose
12        of administering the provisions of this Act.
13             (2)  To    issue   orders   for   the   purpose   of
14        administering the provisions of this  Act  and  any  rule
15        promulgated in accordance with this Act.
16             (3)  To   appoint   hearing  officers  and  to  hire
17        employees or to  contract  with  appropriate  persons  to
18        execute  any  of  the  powers granted to the Commissioner
19        under this Section for the purpose of administering  this
20        Act and any rule promulgated in accordance with this Act.
21             (4)  To   subpoena   witnesses,   to   compel  their
22        attendance, to administer an oath, to examine any  person
23        under oath, and to require the production of any relevant
24        books,  papers,  accounts, and documents in the course of
25        and pursuant to any investigation being conducted, or any
26        action being taken, by the Commissioner in respect of any
27        matter relating to the duties imposed upon, or the powers
28        vested in, the Commissioner under the provisions of  this
29        Act or any rule promulgated in accordance with this Act.
30             (5)  To conduct hearings.
31             (6)  To  impose  civil  penalties  graduated  up  to
                            -2-               LRB9201092JSpcA
 1        $1,000  against  any  person  for  each  violation of any
 2        provision of this Act, any rule promulgated in accordance
 3        with this Act, or any order  of  the  Commissioner  based
 4        upon the seriousness of the violation.
 5             (6.5)  To  initiate,  through  the Attorney General,
 6        injunction  proceedings  whenever  it  appears   to   the
 7        Commissioner that any person, whether licensed under this
 8        Act  or  not,  is engaged or about to engage in an act or
 9        practice that constitutes or will constitute a  violation
10        of this Act or any rule prescribed under the authority of
11        this   Act.    The   Commissioner  may,  in  his  or  her
12        discretion, through the Attorney General,  apply  for  an
13        injunction,  and upon a proper showing, any circuit court
14        may enter a permanent  or  preliminary  injunction  or  a
15        temporary  restraining order without bond to enforce this
16        Act in addition  to  the  penalties  and  other  remedies
17        provided for in this Act.
18             (7)  To  issue  a  cease  and  desist order and, for
19        violations  of  this  Act,  any  order  issued   by   the
20        Commissioner  pursuant  to this Act, any rule promulgated
21        in accordance with this Act, or any other applicable  law
22        in  connection  with  the  operation  of  a  pawnshop, to
23        suspend a license issued under this  Act  for  up  to  30
24        days.
25             (8)  To determine compliance with applicable law and
26        rules related to the operation of pawnshops and to verify
27        the  accuracy of reports filed with the Commissioner, the
28        Commissioner, not more than one time every 2 years,  may,
29        but  is not required to, conduct a routine examination of
30        a pawnshop, and in  addition,  the  Commissioner  may  To
31        examine  the  affairs  of any pawnshop at any time if the
32        Commissioner  has  reasonable  cause  to   believe   that
33        unlawful  or  fraudulent  activity  is  occurring, or has
34        occurred, therein.
                            -3-               LRB9201092JSpcA
 1             (9)  In response to  a  complaint,  to  address  any
 2        inquiries to any pawnshop in relation to its affairs, and
 3        it shall be the duty of the pawnshop to promptly reply in
 4        writing  to  such  inquiries.   The Commissioner may also
 5        require reports or information from any pawnshop  at  any
 6        time the Commissioner may deem desirable.
 7             (10)  To  revoke  a license issued under this Act if
 8        the Commissioner determines that (a) a licensee has  been
 9        convicted  of  a felony in connection with the operations
10        of a pawnshop; (b) a licensee knowingly,  recklessly,  or
11        continuously  violated  this  Act,  a rule promulgated in
12        accordance  with  this  Act,  or   any   order   of   the
13        Commissioner;  (c) a fact or condition exists that, if it
14        had existed or had been known at the time of the original
15        application, would have justified license refusal; or (d)
16        the  licensee  knowingly  submits  materially  false   or
17        misleading  documents  with  the  intent  to  deceive the
18        Commissioner or any other party.
19             (11)  Following   license   revocation,   to    take
20        possession  and  control of a pawnshop for the purpose of
21        examination,  reorganization,  or   liquidation   through
22        receivership  and to appoint a receiver, which may be the
23        Commissioner, a pawnshop, or another suitable person.
24        (b)  After  consultation  with  local   law   enforcement
25    officers,   the  Attorney  General,  and  the  industry,  the
26    Commissioner may by rule  require  that  pawnbrokers  operate
27    video  camera  surveillance  systems  to  record photographic
28    representations of customers and retain  the  tapes  produced
29    for up to 30 days.
30        (c)  Pursuant  to  rule,  the  Commissioner  shall  issue
31    licenses  on  an  annual  or multi-year basis for operating a
32    pawnshop. Any person currently operating or who has  operated
33    a  pawnshop  in  this  State during the 2 years preceding the
34    effective date of this amendatory Act of 1997 shall be issued
                            -4-               LRB9201092JSpcA
 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.     Except  with  the  prior
 4    written  consent of the Commissioner, no individual, either a
 5    new applicant or a person currently operating a pawnshop, may
 6    be issued a license to operate a pawnshop if  the  individual
 7    has  been  convicted  of  a felony or of any criminal offense
 8    relating to dishonesty or breach of trust in connection  with
 9    the  operations  of  a  pawnshop.     The  Commissioner shall
10    establish license fees.  The fees shall not exceed the amount
11    reasonably required for administration of this Act.  It shall
12    be unlawful to operate a pawnshop without a license issued by
13    the Commissioner.
14        (d)  In addition to license fees, the  Commissioner  may,
15    by   rule,  establish  fees  in  connection  with  a  review,
16    approval, or provision of a service, and  levy  a  reasonable
17    charge  to  recover  the  cost  of  the  review, approval, or
18    service (such as a change in control, change in location,  or
19    renewal  of  a  license).    The Commissioner may also levy a
20    reasonable charge to recover the cost of  an  examination  if
21    the  Commissioner  determines  that  unlawful  or  fraudulent
22    activity  has occurred.  The Commissioner may require payment
23    of the fees and charges provided in  this  Act  by  certified
24    check,  money  order,  an electronic transfer of funds, or an
25    automatic debit of an account.
26        (e)  The Pawnbroker Regulation Fund is established  as  a
27    special  fund  in the State treasury.  Moneys collected under
28    this Act shall be deposited into the Fund and  used  for  the
29    administration  of  this  Act.     In  the event that General
30    Revenue  Funds  are  appropriated  to  the  Office   of   the
31    Commissioner  of  Banks  and  Real  Estate  for  the  initial
32    implementation  of  this  Act,  the  Governor  may direct the
33    repayment from the Pawnbroker Regulation Fund to the  General
34    Revenue  Fund  of  such  advance  in  an amount not to exceed
                            -5-               LRB9201092JSpcA
 1    $30,000.  The Governor may direct this interfund transfer  at
 2    such  time  as  he  deems  appropriate  by giving appropriate
 3    written notice.
 4        (f)  The Commissioner may, by rule, require all pawnshops
 5    to provide  for  the  expenses  that  would  arise  from  the
 6    administration  of  the receivership of a pawnshop under this
 7    Act through the assessment of fees, the requirement to pledge
 8    surety bonds, or such other  methods  as  determined  by  the
 9    Commissioner.
10        (g)  All    final   administrative   decisions   of   the
11    Commissioner under this Act  shall  be  subject  to  judicial
12    review  pursuant  to  the  provisions  of  the Administrative
13    Review Law.  For  matters  involving  administrative  review,
14    venue shall be in either Sangamon County or Cook County.
15    (Source: P.A. 90-477, eff. 7-1-98; 90-602, eff. 7-1-98.)

16        (205 ILCS 510/5) (from Ch. 17, par. 4655)
17        Sec. 5.  Record requirements.
18        (a)  Except  in municipalities located in counties having
19    3,000,000 or more inhabitants, every  pawn  and  loan  broker
20    shall  keep  a standard record book that has been approved by
21    the sheriff of  the  county  in  which  the  pawnbroker  does
22    business.   In  municipalities  in counties with 3,000,000 or
23    more inhabitants, the record book shall be  approved  by  the
24    police  department  of  the municipality in which the pawn or
25    loan broker does business.  At the time  of  each  and  every
26    loan   or  taking  of  a  pledge,  an  accurate  account  and
27    description, in the  English  language,  of  all  the  goods,
28    articles  and  other  things pawned or pledged, the amount of
29    money, value or thing loaned thereon, the  time  of  pledging
30    the  same,  the rate of interest to be paid on such loan, and
31    the name and residence of the  person  making  such  pawn  or
32    pledge  shall  be  printed,  typed,  or written in ink in the
33    record book.  Such entry shall include the serial  number  or
                            -6-               LRB9201092JSpcA
 1    identification number of items received which are required to
 2    bear  such  number.   Except for items purchased from dealers
 3    possessing a federal employee identification number who  have
 4    provided  a receipt to the pawnbroker, every pawnbroker shall
 5    also record in his book, an accurate account and description,
 6    in the English language, of all  goods,  articles  and  other
 7    things  purchased  or  received  for the purpose of resale or
 8    loan collateral by the pawnbroker from any source, not in the
 9    course of a pledge or loan, the  time  of  such  purchase  or
10    receipt  and  the  name and address of the person or business
11    which sold or delivered such goods, articles, or other things
12    to the pawnbroker.  No entry in such book  shall  be  erased,
13    mutilated or changed.
14        (b)  Every  pawnbroker shall require identification to be
15    shown him by each  person  pledging  or  pawning  any  goods,
16    articles   or   other  things  to  the  pawnbroker.   If  the
17    identification  shown  is  a  driver's  license  or  a  State
18    identification card issued by  the  Secretary  of  State  and
19    contains  a  photograph  of the person being identified, only
20    one  form  of  identification  must   be   shown.    If   the
21    identification  shown  is  not  a driver's license or a State
22    identification card issued by the Secretary of State and does
23    not contain a photograph, 2 forms of identification  must  be
24    shown,  and one of the 2 forms of identification must include
25    his or her residence address.  These forms of  identification
26    shall  include,  but not be limited to, any of the following:
27    driver's  license,  social  security  card,   utility   bill,
28    employee  or  student  identification card, credit card, or a
29    civic, union or professional association membership card.  In
30    addition, in a municipality with a population of 1,000,000 or
31    more   inhabitants,   if   the  customer  does  not  have  an
32    identification issued by a governmental entity  containing  a
33    photograph  of  the  person  being identified, the pawnbroker
34    shall  photograph  the  customer  in  color  and  record  the
                            -7-               LRB9201092JSpcA
 1    customer's name, residence address,  date  of  birth,  social
 2    security  number,  gender,  height, and weight on the reverse
 3    side of the  photograph.   If  the  customer  has  no  social
 4    security number, the pawnbroker shall record this fact.
 5        A county or municipality, including a home rule unit, may
 6    regulate   a  pawnbroker's  identification  requirements  for
 7    persons pledging or pawning goods, articles, or other  things
 8    to  the  pawnbroker  in a manner that is not less restrictive
 9    than  the  regulation  by  the  State   of   a   pawnbroker's
10    identification  requirements  for persons pledging or pawning
11    goods, articles, or other things.  A home rule unit  may  not
12    regulate   a  pawnbroker's  identification  requirements  for
13    persons pledging or pawning goods, articles, or other  things
14    to  the  pawnbroker  in  a  manner  less restrictive than the
15    regulation by the  State  of  a  pawnbroker's  identification
16    requirements for persons pledging or pawning goods, articles,
17    or  other  things.    This  Section  is  a  limitation  under
18    subsection  (i)  of  Section 6 of Article VII of the Illinois
19    Constitution on the concurrent exercise by home rule units of
20    the powers and functions exercised by the State.
21        (c)  A pawnbroker may maintain the  records  required  by
22    subsection (a) in computer form if the computer form has been
23    approved  by  the  Commissioner, the sheriff of the county in
24    which the shop is located, and the police department  of  the
25    municipality in which the shop is located.
26        (d)  Records,  including  reports  to  the  Commissioner,
27    maintained  by  pawnbrokers  shall  be  confidential,  and no
28    disclosure  of  pawnbroker  records  shall  be  made   except
29    disclosures  authorized  by this Act or ordered by a court of
30    competent  jurisdiction.   No   record   transferred   to   a
31    governmental official shall be improperly disclosed, provided
32    that  use  of  those  records  as  evidence  of  a  felony or
33    misdemeanor shall be a proper purpose.
34        (e)  Pawnbrokers and their associations may lawfully give
                            -8-               LRB9201092JSpcA
 1    appropriate governmental agencies computer equipment for  the
 2    purpose of transferring information pursuant to this Act.
 3    (Source:  P.A.  90-56,  eff.  7-3-97;  90-477,  eff.  7-1-98;
 4    90-655, eff. 7-30-98; 91-608, eff. 8-19-99.)

 5        (205 ILCS 510/6) (from Ch. 17, par. 4656)
 6        Sec. 6. Inspection of records.
 7        (a)  The  book  or  computer  records,  as  well as every
 8    article or other thing of value so pawned or  pledged,  shall
 9    at  all  times be open to the inspection of the Commissioner,
10    the sheriff of the county, his deputies, or  any  members  of
11    the  police  force  of  any  city in the county in which such
12    pawnbroker does business. In addition, the Commissioner shall
13    be authorized to inspect the books or records of any business
14    he or she has reasonable cause to believe is conducting  pawn
15    transactions and should be licensed under this Act.
16        (b)  The  book  or computer records, pawn tickets, or any
17    other records required by the Commissioner under this Act  or
18    any  rule  promulgated  in  accordance with this Act shall be
19    maintained for a period of 3 years after the  date  on  which
20    the record or ticket was prepared.  These records and tickets
21    shall  be open to inspection of the Commissioner at all times
22    during the 3-year period.
23    (Source: P.A. 90-477, eff. 7-1-98.)

24        (205 ILCS 510/11) (from Ch. 17, par. 4661)
25        Sec. 11. Violations. Every person who knowingly  violates
26    the  provisions  of this Act shall, for the first offense, be
27    guilty of a Class C  misdemeanor,  and  for  each  subsequent
28    offense shall be guilty of a Class A misdemeanor, except that
29    a  person  who  knowingly  violates  this  Act by operating a
30    pawnshop without a license shall  be  guilty  of  a  Class  B
31    misdemeanor  for  the  first offense and shall be guilty of a
32    Class A misdemeanor for  any  subsequent  offense.  provided,
                            -9-               LRB9201092JSpcA
 1    that  This  Act  shall  not  be construed as to, in any wise,
 2    impair the power of cities  or  villages  in  this  State  to
 3    license,  tax,  regulate  except as to fee amounts, suppress,
 4    and prohibit pawnbrokers as now provided by law.
 5    (Source: P.A. 90-477, eff. 7-1-98.)

 6        Section 99.  Effective date.  This Act takes effect  upon
 7    becoming law.

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