[ 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 ]