State of Illinois
Public Acts
92nd General Assembly

[ Home ]  [ ILCS ] [ Search ] [ Bottom ]
 [ Other General Assemblies ]

Public Act 92-0215

HB2539 Enrolled                               LRB9201092JSpcA

    AN ACT concerning pawnbrokers.

    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, 5, 6, and 11 as follows:

    (205 ILCS 510/0.05)
    Sec. 0.05.  Administration of Act.
    (a)  This Act shall be administered by  the  Commissioner
of  Banks and Real Estate 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.
         (3)  To   appoint   hearing  officers  and  to  hire
    employees or to  contract  with  appropriate  persons  to
    execute  any  of  the  powers granted to the Commissioner
    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 Commissioner in respect of any
    matter relating to the duties imposed upon, or the powers
    vested in, the Commissioner 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
    $1,000  against  any  person  for  each  violation of any
    provision of this Act, any rule promulgated in accordance
    with this Act, or any order  of  the  Commissioner  based
    upon the seriousness of the violation.
         (6.5)  To  initiate,  through  the Attorney General,
    injunction  proceedings  whenever  it  appears   to   the
    Commissioner 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   Commissioner  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
    Commissioner  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 Commissioner, the
    Commissioner, 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  Commissioner  may  To
    examine  the  affairs  of any pawnshop at any time if the
    Commissioner  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 Commissioner may also
    require reports or information from any pawnshop  at  any
    time the Commissioner may deem desirable.
         (10)  To  revoke  a license issued under this Act if
    the Commissioner 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,  a rule promulgated in
    accordance  with  this  Act,  or   any   order   of   the
    Commissioner;  (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; or (d)
    the  licensee  knowingly  submits  materially  false   or
    misleading  documents  with  the  intent  to  deceive the
    Commissioner or any other party.
         (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
    Commissioner, a pawnshop, or another suitable person.
    (b)  After  consultation  with  local   law   enforcement
officers,   the  Attorney  General,  and  the  industry,  the
Commissioner 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  Commissioner  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 Commissioner.     Except  with  the  prior
written  consent of the Commissioner, 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  Commissioner 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 Commissioner.
    (d)  In addition to license fees, the  Commissioner  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 Commissioner may also levy a
reasonable charge to recover the cost of  an  examination  if
the  Commissioner  determines  that  unlawful  or  fraudulent
activity  has occurred.  The Commissioner 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  Office   of   the
Commissioner  of  Banks  and  Real  Estate  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.
    (f)  The Commissioner 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
Commissioner.
    (g)  All    final   administrative   decisions   of   the
Commissioner 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. 90-477, eff. 7-1-98; 90-602, eff. 7-1-98.)

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

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

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

    Section 99.  Effective date.  This Act takes effect  upon
becoming law.
    Passed in the General Assembly May 10, 2001.
    Approved August 02, 2001.

[ Top ]