Public Act 098-0357
HB0101 EnrolledLRB098 04899 MGM 34927 b

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