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Full Text of HB1016  99th General Assembly

HB1016ham001 99TH GENERAL ASSEMBLY

Rep. Kathleen Willis

Filed: 5/11/2016

 

 


 

 


 
09900HB1016ham001LRB099 04847 RLC 47955 a

1
AMENDMENT TO HOUSE BILL 1016

2    AMENDMENT NO. ______. Amend House Bill 1016 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. Short title. This Act may be cited as the Gun
5Dealer Licensing Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Address of record" means the designated address recorded
8by the Department in the applicant's, dealer's or dealership
9agent's application file or license file as maintained by the
10Department's licensure maintenance unit. It is the duty of the
11applicant or dealer to inform the Department of any change of
12address, and those changes must be made either through the
13Department's website or by contacting the Department's
14licensure maintenance unit.
15    "Applicant" means any person who applies for a dealer
16license or a dealership agent card, or the renewal of the

 

 

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1dealer license or a dealership agent card under this Act.
2    "Board" means the Gun Dealer Licensing Board.
3    "Confidential or security information" means information
4which identifies the purchasers or other transferees of
5firearms from a dealer or dealership.
6    "Dealer" means any person engaged in the business of
7selling, leasing, or otherwise transferring firearms.
8    "Dealership" means a person, firm, corporation, or other
9legal entity that engages in the business of selling, leasing,
10or otherwise transferring firearms and employs, in addition to
11the gun dealer licensee-in-charge, at least one other
12dealership agent.
13    "Dealership agent" means an owner, officer, paid or unpaid
14agent, volunteer or employee of a licensed dealership who has
15access to or control of firearms in the inventory of the
16dealership or confidential or security information of the
17dealership.
18    "Dealership licensee-in-charge" or "licensee-in-charge"
19means a dealer who has been designated by a dealership to be
20the licensee-in-charge of the dealership, who is a full-time
21management employee or owner who assumes sole responsibility
22for maintaining all records required by this Act, and who
23assumes sole responsibility for assuring the dealership's
24compliance with its responsibilities as stated in this Act. The
25Department shall adopt rules mandating licensee-in-charge
26participation in dealership affairs.

 

 

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1    "Department" means the Department of Financial and
2Professional Regulation.
3    "Engage in the business of selling, leasing, or otherwise
4transferring firearms" means to:
5        (1) conduct a business selling, leasing, or
6    transferring firearms;
7        (2) hold himself or herself out as engaged in the
8    business of selling, leasing or otherwise transferring
9    firearms; or
10        (3) sell, lease, or transfer firearms in quantity, in
11    series, or in any other manner indicative of trade.
12    "Firearm" has the same meaning as "firearm" in Section 1.1
13of the Firearm Owners Identification Card Act.
14    "Licensee" means a dealer or a dealership licensed under
15this Act. Anyone who holds himself or herself out as a licensee
16or who is accused of unlicensed business is considered a
17licensee for purposes of enforcement, investigation, hearings,
18and the Illinois Administrative Procedure Act.
19    "Person" means a natural person.
20    "Secretary" means the Secretary of Financial and
21Professional Regulation.
 
22    Section 10. License requirement.
23    (a) It is unlawful for a person to engage in the business
24of selling, leasing, or otherwise transferring firearms
25without a license under this Act. A dealership agent other than

 

 

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1a dealer licensee-in-charge may act on behalf of the licensed
2dealership under Section 75 without being licensed as a dealer
3under this Act.
4    (b) It is unlawful for a person, firm, corporation, group
5of individuals, or other legal entity to act as a dealership
6licensed under this Act, to advertise, or to assume to act as a
7licensed dealership or to use a title implying that the person,
8firm, or other entity is engaged in business as a dealership
9without a license under this Act. An individual or sole
10proprietor licensed as a dealer who operates without any
11dealership agents may act as a dealership without having to
12obtain a dealership license, provided the dealer notifies the
13Department that he or she is operating in this manner and
14provides the information required under Section 65, as
15determined to be applicable to the dealer by the Department.
16The dealer may operate under a "doing business as" or assumed
17name certification so long as the assumed name is first
18registered with the Department.
19    (c) No dealership shall operate a branch office without
20first applying for and receiving a branch office license for
21each location. The term "branch office" does not include a
22location at which the dealership conducts business
23temporarily, such as at a gun show.
24    (d) It is unlawful to obtain or attempt to obtain any
25license or authorization issued under this Act by fraudulent
26misrepresentation.

 

 

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1    (e) A person who violates any provision of this Section is
2guilty of a Class A misdemeanor for a first violation, and a
3Class 4 felony for a second or subsequent violation.
4    (f) In addition to any other penalty provided by law, any
5person or entity who violates any provision of this Section
6shall, pay a civil penalty to the Department in an amount not
7to exceed $10,000 for each offense as determined by the
8Department. The civil penalty shall be assessed by the
9Department after a hearing is held in accordance with the
10provisions set forth in this Act regarding the provision of a
11hearing for the discipline of a licensee.
12    (g) The Department has the authority and power to
13investigate any and all unlicensed activity.
14    (h) The civil penalty shall be paid within 60 days after
15the effective date of the order imposing the civil penalty. The
16order shall constitute a judgment and may be filed and
17execution had thereon in the same manner as any judgment from
18any court of record.
 
19    Section 15. Exemptions. The provisions of this Act related
20to the licensure of dealers and dealerships do not apply to a
21person or other entity that engages in the following
22activities:
23    (1) transfers of less than 8 firearms within each calendar
24year;
25    (2) temporary transfers of firearms solely for use at the

 

 

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1location or on the premises where the transfer takes place,
2such as transfers at a shooting range for use at that location;
3    (3) temporary transfers of firearms solely for use while in
4the presence of the transferor, such as transfers for the
5purposes of firearm safety training by a training instructor;
6or
7    (4) transfers of firearms among immediate family or
8household members, as "immediate family or household member" is
9defined in Section 3-2.7-10 of the Unified Code of Corrections.
 
10    Section 20. Powers and duties of the Department. Subject to
11the provisions of this Act, the Department may exercise the
12following powers and duties:
13        (1) Prescribe forms to be issued for the administration
14    and enforcement of this Act.
15        (2) Prescribe and publish rules for a method of
16    examination of candidates for gun dealer licenses and for
17    issuance of licenses authorizing candidates upon passing
18    examination to engage in the business of selling, leasing,
19    or otherwise transferring firearms.
20        (3) Review application to ascertain the qualifications
21    of applicants for licenses.
22        (4) Authorize examinations to ascertain the
23    qualifications and fitness of applicants for licensing as a
24    dealer and pass upon the qualifications of applicants for
25    licensure.

 

 

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1        (5) Examine the records of licensees or investigate any
2    other aspect of the business of selling, leasing, or
3    otherwise transferring firearms.
4        (6) Conduct hearings on proceedings to refuse to issue
5    or renew licenses or to revoke, suspend, place on
6    probation, reprimand, or take any other disciplinary or
7    non-disciplinary action against licenses issued under this
8    Act.
9        (7) Formulate rules required for the administration of
10    this Act. Notice of proposed rulemaking shall be
11    transmitted to the Board, and the Department shall review
12    the Board's response and any recommendations made in the
13    response.
14        (8) Solicit the advice and expert knowledge of the
15    Board on any matter relating to the administration and
16    enforcement of this Act.
17        (9) Maintain rosters of the names and addresses of all
18    licensees and all persons whose licenses have been
19    suspended, revoked, denied renewal, or otherwise
20    disciplined within the previous calendar year. These
21    rosters shall be available upon written request and payment
22    of the required fee as established by rule.
23        (10) Exercise the powers and duties prescribed by the
24    Civil Administrative Code of Illinois for the
25    administration of licensing Acts.
 

 

 

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1    Section 25. The Gun Dealer Licensing Board.
2    (a) The Gun Dealer Licensing Board shall consist of 5
3members to be appointed by the Secretary. Each member shall
4have a reasonable knowledge of the federal and State laws
5regarding firearms. Each member shall either be a resident of
6this State or shall certify that he or she will become a
7resident of this State before taking office. The Board shall
8consist of:
9        (1) one member with at least 5 years of service as a
10    county sheriff or chief of police of a municipal police
11    department within this State;
12        (2) one representative of the Department State Police
13    with at least 5 years investigative experience or duties
14    related to criminal justice;
15        (3) one member with at least 5 years of experience as a
16    federally licensed firearms dealer in good standing within
17    this State;
18        (4) one member who is a representative of an advocacy
19    group for public safety; and
20        (5) one member shall be a lawyer licensed to practice
21    law in this State. The membership shall reasonably reflect
22    the different geographic areas in this State.
23    (b) Members shall serve 4 year terms and may serve until
24their successors are appointed and qualified. Partial terms of
25over 2 years in length shall be considered full terms. No
26member shall serve for more than 2 successive terms.

 

 

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1Appointments to fill vacancies shall be made in the same manner
2as the original appointments for the unexpired portion of the
3vacated term.
4    (c) The Secretary has the authority to remove any member of
5the Board for cause at any time before the expiration of his or
6her term. The Secretary shall be the sole arbiter of cause. A
7member subject to formal disciplinary proceedings shall
8disqualify himself or herself from all Board business until the
9charge is resolved. A member also shall disqualify himself or
10herself from any matter on which the member cannot act
11objectively.
12    (d) The Board shall annually elect one of its members as
13chairperson and one of its members as vice-chair.
14    (e) Members shall receive compensation as set by law. Each
15member shall receive reimbursement as set by the Governor's
16Travel Control Board for expenses incurred in carrying out the
17duties as a Board member.
18    (f) A majority of Board members constitutes a quorum. A
19majority vote of the quorum is required for a decision. A
20vacancy in the membership of the Board shall not impair the
21right of a quorum to exercise all of the rights and perform all
22of the duties of the Board.
23    (g) The Board may recommend policies, procedures, and rules
24relevant to the administration and enforcement of this Act.
 
25    Section 30. Application for license; forms.

 

 

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1    (a) Each license application shall be on forms provided by
2the Department.
3    (b) Every application for an original dealer license shall
4include the applicant's social security number, which shall be
5retained in the dealership's records pertaining to the license.
6As soon as practical, the Department shall assign a customer's
7identification number to each applicant for a license.
8    Every application for a renewal or restored license shall
9require the applicant's customer identification number.
 
10    Section 35. Issuance of license; renewal; fees.
11    (a) The Department shall, upon the applicant's
12satisfactory completion of the requirements set forth in this
13Act and upon receipt of the fee, issue the license indicating
14the name and business location of the licensee and the date of
15expiration.
16    (b) The expiration date, renewal period, and conditions for
17renewal and restoration of each license or dealership agent
18card shall be set by rule. The holder may renew the license or
19dealership agent card during the 30 days preceding its
20expiration by paying the required fee and by meeting conditions
21that the Department may specify. As a condition of renewal of a
22dealership agent card, the dealership shall verify the
23continued validity of a dealership agent's Firearm Owner's
24Identification Card through the Department of State Police in a
25manner prescribed by rule by the Department of State Police. As

 

 

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1a condition of renewal of a dealer's license, the Department
2shall verify the validity of the applicant's Firearm Owner's
3Identification Card through the Department of State Police in a
4manner prescribed by rule by the Department of State Police. A
5dealership or dealer operating on an expired license is
6considered to be practicing without a license.
7    (c) A dealership that has permitted a license to expire may
8have it restored by submitting an application to the
9Department, successfully completing an inspection by the
10Department, and by paying the required restoration fee and all
11lapsed renewal fees.
12    (d) A dealer that has permitted a license to expire may
13have it restored by submitting an application to the
14Department, paying the required restoration fee and all lapsed
15renewal fees and by providing evidence of competence to resume
16practice satisfactory to the Department and the Board, which
17shall include verification of the continued validity of the
18license holder's Firearm Owner's Identification Card through
19the Department of State Police in a manner prescribed by rule
20by the Department of State Police, and may include passing a
21written examination.
22    (e) A dealership agent that has permitted a dealership
23agent card to expire may have it restored by submitting an
24application to the Department, paying the lapsed renewal fees
25and verification of the agent's Firearm Owner's Identification
26Card by the dealership through the Department of State Police

 

 

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1in a manner prescribed by rule by the Department of State
2Police.
3    (f) Any dealer or dealership agent whose license or
4dealership agent card has expired while he or she has been
5engaged (1) in the federal service in active duty with the Army
6of the United States, the United States Navy, the Marine Corps,
7the Air Force, the Coast Guard, or the State Militia called
8into the service or training of the United States of America,
9or (2) in training or education under the supervision of the
10United States preliminary to induction into the military
11service, may have his or her license restored without paying
12any lapsed renewal fees or restoration fee, if within 2 years
13after termination of that service, training or education, other
14than by dishonorable discharge, he or she furnishes the
15Department with an affidavit to the effect that he or she has
16been so engaged and that his or her service, training or
17education has been so terminated.
18    (g) Any person seeking renewal or restoration under this
19Section shall be subject to the continuing education
20requirements established under Section 45 of this Act.
21    (h) A license or dealership agent card shall not be denied
22any applicant because of the race, religion, creed, national
23origin, political beliefs or activities, age, sex, sexual
24orientation, or physical disability that does not affect a
25person's ability to practice with reasonable judgment, skill,
26or safety.
 

 

 

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1    Section 40. Continuing education. The Department may adopt
2rules of continuing education for persons licensed under this
3Act. The Department shall consider the recommendations of the
4Board in establishing guidelines for the continuing education
5requirements.
 
6    Section 45. Examination of applicants; forfeiture of fee.
7    (a) Applicants for licensure as a dealer shall be examined
8as provided by this Section if they are qualified to be
9examined under this Act. All applicants taking the examination
10shall be evaluated using the same standards as others who are
11examined for the respective license.
12    (b) Examinations for licensure shall be held at such time
13and place as the Department may determine, but shall be held at
14least twice a year.
15    (c) Examinations shall test the amount of knowledge and
16skill needed to perform the duties set forth in this Act and
17comply with other provisions of federal and State law
18applicable to the sale and transfer of firearms. The Department
19may contract with a testing service for the preparation and
20conduct of the examination.
21    (d) If an applicant neglects, fails, or refuses to take an
22examination within one year after filing an application, the
23fee shall be forfeited. However, an applicant may, after the
24one-year period, make a new application for examination,

 

 

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1accompanied by the required fee. If an applicant fails to pass
2the examination within 3 years after filing an application, the
3application shall be denied. An applicant may make a new
4application after the 3-year period.
5    (e) This Section does not apply to an applicant who was
6properly licensed as a firearms dealer under Section 923 of the
7federal Gun Control Act of 1968 (18 U.S.C. 923) on February 10,
82016 in operation in this State.
 
9    Section 50. Qualifications for licensure as a dealer.
10    (a) A person is qualified for licensure as a dealer if he
11or she meets all of the following requirements:
12        (1) is at least 21 years of age;
13        (2) has a currently valid Firearm Owner's
14    Identification Card. The Department shall verify the
15    validity of the applicant's Firearm Owner's Identification
16    Card through the Department of State Police in a manner
17    prescribed by rule by the Department of State Police. The
18    Department of State Police shall provide the Department
19    with an approval number if the Firearm Owner's
20    Identification Card is currently valid;
21        (3) has not had a license or permit to sell, lease,
22    transfer, purchase, or possess firearms from the federal
23    government or the government of any state or subdivision of
24    any state revoked or suspended for good cause within the
25    preceding 3 years, or been terminated from employment with

 

 

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1    a licensee or former licensee for good cause within the
2    preceding 3 years;
3        (4) has a minimum of one year of experience, with a
4    minimum of 100 hours per year, during the 5 years
5    immediately preceding the application: (i) as a dealership
6    agent under this Act; or (ii) as a federal firearms dealer
7    licensed under Section 923 of the federal Gun Control Act
8    of 1968 (18 U.S.C. 923) or an employee of the business who
9    had access to firearms;
10        (5) has passed an examination authorized by the
11    Department; and
12        (6) has paid the fees required by this Act.
13    (b) The Department may request a personal interview of an
14applicant before the Board to further evaluate his or her
15qualifications for a license.
 
16    Section 55. Qualifications for licensure as a dealership.
17    (a) Upon receipt of the required fee and the information
18listed in subsection (b) of this Section, the Department shall
19issue a license as a dealership to any of the following:
20        (1) An individual who submits an application and is a
21    licensed dealer under this Act.
22        (2) A firm that submits an application and all of the
23    members of the firm are licensed dealers under this Act.
24        (3) A corporation or limited liability company doing
25    business in this State that is authorized by its articles

 

 

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1    of incorporation or organization to engage in the business
2    of conducting a dealership if at least one executive
3    employee is licensed as a dealer under this Act.
4    (b) The Department shall require all of the following
5information from each applicant for licensure as a dealership
6under this Act:
7        (1) The name, full business address, and telephone
8    number of the dealership. The business address for the
9    dealership shall be the complete street address where
10    firearms in the inventory of the dealership are regularly
11    stored, shall be located within the State, and may not be a
12    P.O. Box. The applicant shall submit proof that the
13    business location is or will be used to conduct the
14    dealership's business.
15        (2) All trade or business names used by the licensee.
16        (3) The type of ownership or operation, such as a
17    partnership, corporation, or sole proprietorship.
18        (4) The name of the owner or operator of the
19    dealership, including:
20            (A) if a person, then the name and address of
21        record of the person;
22            (B) if a partnership, then the name and address of
23        record of each partner and the name of the partnership;
24            (C) if a corporation, then the name, address of
25        record, and title of each corporate officer and
26        director, the corporate names, and the name of the

 

 

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1        state of incorporation; and
2            (D) if a sole proprietorship, then the full name
3        and address of record of the sole proprietor and the
4        name of the business entity.
5        (5) The name and license number of the
6    licensee-in-charge for the dealership.
7        (6) Proof that the applicant has applied for or
8    received a certificate of registration under the
9    Retailers' Occupation Tax Act.
10        (7) Written confirmation from the sheriff of the county
11    in which the business address is located, stating that, to
12    the best of the sheriff's knowledge, the applicant is in
13    compliance with applicable federal, State, and local laws.
14    A municipality or county may impose additional
15    requirements for the operation of gun dealers and
16    dealerships beyond the requirements of this Act and
17    consistent with the United States Constitution and the
18    Constitution of the State of Illinois, including local
19    license requirements. It shall be the duty of local
20    authorities to investigate and enforce any failure of a
21    dealer or dealership to meet these requirements and to
22    notify the Department of these investigations and
23    enforcement actions. This paragraph (7) supersedes Section
24    13.1 of the Firearm Owners Identification Card Act and
25    Section 90 of the Firearm Concealed Carry Act as applied to
26    the local regulation of dealers and dealerships.

 

 

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1        (8) Proof that the dealership is properly licensed as a
2    firearms dealer under federal law.
3        (9) A final inspection report demonstrating that the
4    Department has determined upon inspection that the
5    proposed business premises comply with Section 70.
6    (c) No dealer may be the licensee-in-charge for more than
7one dealership. Upon written request by a representative of a
8dealership, within 10 days after the loss of a
9licensee-in-charge of a dealership because of the death of that
10individual or because of the termination of the employment of
11that individual, the Department shall issue a temporary
12certificate of authority allowing the continuing operation of
13the licensed dealership. No temporary certificate of authority
14shall be valid for more than 90 days. An extension of an
15additional 90 days may be granted upon written request by the
16representative of the dealership. Not more than 2 extensions
17may be granted to any dealership. No temporary permit shall be
18issued for loss of the licensee-in-charge because of
19disciplinary action by the Department related to his or her
20conduct on behalf of the dealership.
21    (d) The Department may request a personal interview of a
22gun dealership licensee-in-charge to evaluate the dealership's
23qualifications for a license.
 
24    Section 60. Training of dealership agents. The Department
25shall adopt rules requiring dealership agents to undergo

 

 

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1training regarding legal requirements and responsible business
2practices as applicable to the sale or transfer of firearms.
3Before a dealership agent has unsupervised access to or control
4over firearms in the dealership's inventory or confidential or
5security information, the dealership shall ensure that the
6dealership agent receives the training that the Department may
7require.
 
8    Section 65. Display of license. Each licensee shall
9prominently display his or her individual, agency, or branch
10office license at each place where business is being conducted,
11as required under this Act. A licensee-in-charge is required to
12post his or her license only at the dealership office.
 
13    Section 70. Requirements; prohibitions.
14    (a) The Department of Financial and Professional
15Regulation shall implement the provisions of this Section by
16rule.
17    (b) A licensee shall maintain operating documents which
18shall include procedures for the oversight of the licensee and
19procedures to ensure accurate recordkeeping.
20    (c) By January 1, 2018, a licensee shall implement
21appropriate security measures, as provided by rule, to deter
22and prevent the theft of firearms and unauthorized entrance
23into areas containing firearms. The rules may provide for:
24        (1) the manner of securing firearms when the location

 

 

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1    is both open and closed for business;
2        (2) alarm systems for licensees; and
3        (3) other reasonable requirements to deter illegal
4    sales and reduce the risk of burglaries and other crimes or
5    accidents at licensees' business establishments.
6    (d) The licensed business location shall be equipped with a
7video surveillance system sufficient to monitor the critical
8areas of the business premises, including, but not limited to,
9all places where firearms are stored, handled, sold,
10transferred, or carried. The video surveillance system shall
11operate without interruption, whenever the licensee is open for
12business. Whenever the licensee is not open for business, the
13system shall be triggered by a motion detector and begin
14recording immediately upon detection of any motion within the
15monitored area. In addition, every sale or transfer of a
16firearm, including sales and transfers that take place at
17locations other than the business premises, shall be recorded
18by the video surveillance system in a way that the facial
19features of the purchaser or transferee are clearly visible.
20The stored images shall be maintained on the business premises
21of the licensee for a period of not less than one year from the
22date of recordation and shall only be available for inspection
23on the premises by the licensee, the licensee's dealership
24agents, the Department and federal, State, and local law
25enforcement upon request, and neither the stored images nor
26copies, records, or reproductions of the stored images shall

 

 

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1leave the custody of the licensee except under a court order,
2subpoena, or search warrant. The licensee shall post a sign in
3a conspicuous place at each entrance to the premises that
4states in block letters not less than one inch in height:
5        THESE PREMISES ARE UNDER VIDEO SURVEILLANCE. YOUR
6    IMAGE MAY BE RECORDED.
7    (e) The area where the licensee stores firearms that are
8inventory of the licensee shall only be accessed by dealership
9agents, Department of Financial and Professional Regulation
10staff performing inspections, law enforcement or other
11emergency personnel, and contractors working on jobs unrelated
12to firearms, such as installing or maintaining security devices
13or performing electrical wiring.
14    (f) A licensee shall operate its business and conduct all
15sales and transfers of firearms or in compliance with all
16federal and State laws, and maintain all records as required by
17federal and State laws.
18    (g) A licensee shall not allow any person to handle
19firearms while intoxicated.
20    (h) A licensee shall post in a conspicuous position on the
21premises where the licensee conducts business a sign that
22contains the following warning in block letters not less than
23one inch in height:
24        "With few exceptions, it is unlawful for you to:
25            (1) store or leave an unsecured firearm in a place
26        where a child can obtain access to it,

 

 

09900HB1016ham001- 22 -LRB099 04847 RLC 47955 a

1            (2) sell or transfer your firearm to someone else
2        without receiving approval for the transfer from the
3        Department of State Police, or
4            (3) fail to report the loss or theft of your
5        firearm to local law enforcement within 72 hours."
6    A licensee shall post any additional warnings or provide
7any other information regarding firearms laws and the safe
8storage of firearms to consumers as required by the Department
9by rule.
10    (i) Before issuance, renewal, or restoration of a
11dealership license, the Department shall inspect the premises
12of the proposed business to ensure compliance with this Act.
13Licensees shall have their places of business open for
14inspection by the Department and law enforcement during all
15hours of operation. Licensees shall make all records,
16documents, and firearms accessible for inspection upon the
17request of law enforcement and the Department.
18    (j) The premises where the licensee conducts business shall
19not be located in any district or area that is within 1,000
20feet of any school, pre-school, or day-care facility, except
21that the premises where a licensee conducts business may be
22located in an area that is between 500 and 1,000 feet of a
23school, pre-school, or day-care facility located in a
24municipality with more than 1,000,000 inhabitants. This
25subsection (j) does not apply to a licensee whose business
26existed in that location on the effective date of this Act, and

 

 

09900HB1016ham001- 23 -LRB099 04847 RLC 47955 a

1does not limit the authority of a local government to impose
2and enforce additional limits on the location of a business
3regulated under this Act.
 
4    Section 75. Dealership agent requirements. All dealership
5agents shall apply for a dealership agent card. The holder of a
6dealership license issued under this Act, known in this Section
7as "employer", may employ in the conduct of his or her business
8dealership agents under the following provisions:
9    (a) No person shall be issued a dealership agent card who:
10        (1) is younger than 21 years of age;
11        (2) does not have a valid Firearm Owner's
12    Identification Card; or
13        (3) has had a license or dealership agent card denied,
14    suspended, or revoked under this Act: (i) within one year
15    before the date the person's application for a dealership
16    agent card is received by the Department; and (ii) that
17    refusal, denial, suspension, or revocation was based on any
18    provision of this Act.
19    (b) No person may act as a dealership agent under this
20Section until he or she has executed and furnished to the
21employer, on forms furnished by the Department, a verified
22statement to be known as "Dealership Agent's Statement" setting
23forth:
24        (1) The person's full name, age, and residence address.
25        (2) That the person has not had a license or dealership

 

 

09900HB1016ham001- 24 -LRB099 04847 RLC 47955 a

1    agent card denied, revoked, or suspended under this Act:
2    (i) within one year before the date the person's
3    application for dealership agent card is received by the
4    Department; and (ii) that refusal, denial, suspension, or
5    revocation was based on any provision of this Act.
6        (3) That the person will notify the dealership and the
7    Department immediately if his or her Firearm Owner's
8    Identification Card is revoked for any reason.
9        (4) That the person will not divert firearms in
10    violation of the law.
11    (c) Each applicant for a dealership agent card shall have
12the validity of his or her Firearm Owner's Identification Card
13confirmed by the employer through the Department of State
14Police in a manner prescribed by rule by the Department of
15State Police. The Department of State Police shall provide the
16employer with an approval number if the Firearm Owner's
17Identification Card is currently valid.
18    (d) The Department shall issue a dealership agent card, in
19a form the Department prescribes, to all qualified applicants.
20The holder of a dealership agent card shall carry the card at
21all times while actually engaged in the performance of the
22duties of his or her employment. Expiration and requirements
23for renewal of dealership agent cards shall be established by
24rule of the Department.
25    (e) Each employer shall maintain a record of each
26dealership agent that is accessible to the Department. The

 

 

09900HB1016ham001- 25 -LRB099 04847 RLC 47955 a

1record shall contain the following information:
2        (1) The Dealership Agent's Statement specified in
3    subsection (b) of this Section.
4        (2) A copy of the dealership agent's Firearm Owner's
5    Identification Card.
6        (3) A copy of the dealership agent's dealership agent
7    card.
8    The Department may, by rule, prescribe further record
9requirements.
10    (f) Every employer shall maintain a separate roster of the
11names of all dealership agents and submit the roster to the
12Department on request.
13    (g) No dealership may employ any person to perform a
14licensed activity under this Act unless the person possesses a
15valid dealership agent card or a valid license under this Act,
16or is exempt under subsection (j) of this Section.
17    (h) Notwithstanding the provisions of subsection (g) of
18this Section, a dealership may employ a person in a temporary
19capacity if all of the following conditions are met:
20        (1) The dealership completes in its entirety and
21    submits to the Department an application for a dealership
22    agent card, including the required approval number from the
23    Department of State Police.
24        (2) The dealership exercises due diligence to ensure
25    that the person is qualified under the requirements of the
26    Act to be issued a dealership agent card.

 

 

09900HB1016ham001- 26 -LRB099 04847 RLC 47955 a

1        (3) The dealership maintains a separate roster of the
2    names of all dealership agents whose applications are
3    currently pending with the Department and submits the
4    roster to the Department upon request. Rosters are to be
5    maintained by the dealership for a period of at least 24
6    months.
7        (4) A dealership may allow a dealership agent applicant
8    access to firearms if it either submitted a dealership
9    agent application and all required forms and fees for that
10    dealership agent applicant or it confirms with the
11    Department that a dealership agent application and all
12    required forms and fees have been submitted by another
13    dealership, licensee or the dealership agent and all other
14    requirements of this Section are met.
15        (5) A dealership may not employ a person as a
16    dealership agent in a temporary capacity if it knows or
17    reasonably should have known that the person does not have
18    a valid Firearm Owner's Identification Card. The
19    Department may adopt rules to implement this subsection
20    (h).
21    (i) If information is discovered affecting the validity of
22the Firearm Owner's Identification Card or dealership agent
23card of a dealership agent or applicant for a dealership agent
24card, the Department shall so notify the dealership that
25submitted the application on behalf of that person.
26    (j) Peace officers shall be exempt from the requirements of

 

 

09900HB1016ham001- 27 -LRB099 04847 RLC 47955 a

1this Section relating to dealership agent cards. The dealership
2shall remain responsible for any peace officer employed under
3this exemption, regardless of whether the peace officer is
4compensated as an employee or as an independent contractor and
5as further defined by rule.
6    (k) Persons who have no unsupervised access to firearms in
7the inventory of a dealership or confidential or security
8information are exempt from the requirements of a dealership
9agent.
 
10    Section 80. Employment requirement.
11    (a) The holder of a dealership agent card is prohibited
12from performing the activities of dealer or dealership without
13being employed by a dealership licensed under this Act.
14    (b) A dealership licensed under this Act is prohibited from
15evading or attempting to evade the requirements for dealership
16agent cards under this Act by engaging a contractor or
17independent contractor to perform the activities of a dealer or
18dealership agent, unless that person is licensed under this
19Act.
 
20    Section 85. Disciplinary sanctions.
21    (a) The Department may deny issuance, refuse to renew, or
22restore or may reprimand, place on probation, suspend, revoke,
23or take other disciplinary or non-disciplinary action against
24any license or dealership agent card, may impose a fine not to

 

 

09900HB1016ham001- 28 -LRB099 04847 RLC 47955 a

1exceed $10,000 for each violation, and may assess costs as
2provided for under Section 135, for any of the following,
3consistent with the Protection of Lawful Commerce in Arms Act,
415 U.S.C. 7901 through 7903 or amendments thereto:
5        (1) Material misstatement in furnishing information to
6    the Department or to any other State or federal agency.
7        (2) Violations of this Act, any of the rules adopted
8    under this Act, or any law applicable to the sale or
9    transfer of firearms.
10        (3) Making any misrepresentation for the purpose of
11    obtaining licenses or cards.
12        (4) A pattern of practice or other behavior which
13    demonstrates incapacity or incompetency to practice under
14    this Act.
15        (5) Aiding or assisting another person in violating any
16    provision of this Act or rules adopted under this Act.
17        (6) Failing, within 60 days, to provide information in
18    response to a written request made by the Department.
19        (7) Conviction of or plea of guilty or plea of nolo
20    contendere to any crime that disqualifies the person from
21    obtaining a valid Firearm Owner's Identification Card.
22        (8) Continued practice, although the person has become
23    unfit to practice due to any of the following:
24            (A) Physical illness, mental illness, or other
25        impairment, including, but not limited to,
26        deterioration through the aging process or loss of

 

 

09900HB1016ham001- 29 -LRB099 04847 RLC 47955 a

1        motor skills that results in the inability to serve the
2        public with reasonable judgment, skill, or safety.
3            (B) Any circumstance that disqualifies the person
4        from obtaining a valid Firearm Owner's Identification
5        Card.
6            (C) Habitual or excessive use or abuse of drugs
7        defined in law as controlled substances, alcohol, or
8        any other substance that results in the inability to
9        practice with reasonable judgment, skill, or safety.
10        (9) Receiving, directly or indirectly, compensation
11    for any firearms sold or transferred illegally.
12        (10) Discipline by another United States jurisdiction,
13    foreign nation, or governmental agency, if at least one of
14    the grounds for the discipline is the same or substantially
15    equivalent to those set forth in this Act.
16        (11) Giving differential treatment to a person that is
17    to that person's detriment because of race, color, creed,
18    sex, sexual orientation, religion, or national origin.
19        (12) Violation of any disciplinary order imposed on a
20    licensee by the Department.
21        (13) Conducting a dealership without a valid license.
22        (14) Revealing confidential or security information,
23    except as specifically authorized by law, including but not
24    limited to information about purchasers and transferees of
25    firearms, provided that a licensee or dealership agent may
26    disclose this information under a court order, subpoena, or

 

 

09900HB1016ham001- 30 -LRB099 04847 RLC 47955 a

1    search warrant or to the Department or federal, State, or
2    local law enforcement agencies upon request.
3        (15) Purporting to be a licensee-in-charge of an agency
4    without active participation in the agency.
5        (16) A finding by the Department that the licensee,
6    after having his or her license placed on probationary
7    status, has violated the terms of probation.
8        (17) Failure to report in writing to the Department,
9    within 60 days of an entry of a settlement or a verdict in
10    excess of $10,000, any legal action in which the business
11    of the dealer, dealership, or dealership agent was the
12    subject of the legal action.
13    (b) All fines imposed under this Section shall be paid
14within 60 days after the effective date of the order imposing
15the fine.
 
16    Section 90. Suspension or revocation of dealership agent
17card.
18    (a) Dealership agents issued dealership agent cards under
19the provisions of Section 75 of this Act shall be subject to
20the disciplinary sanctions of this Act and shall otherwise
21comply with this Act and the rules adopted under it.
22Notwithstanding any other provision in this Act to the
23contrary, dealership agents shall not be responsible for
24compliance with any requirement that this Act assigns to the
25dealership or the licensee-in-charge regardless of the agent's

 

 

09900HB1016ham001- 31 -LRB099 04847 RLC 47955 a

1job title, job duties, or position in the dealership. The
2procedures for disciplining a licensee shall also apply in
3taking action against a dealership agent.
4    (b) The revocation of a dealer's or dealership agent's
5Firearm Owner's Identification Card operates as an automatic
6suspension of the dealer license or dealership agent card. The
7suspension will end only upon the issuance by the Department of
8State Police of a new Firearm Owner's Identification Card to
9the dealer or dealership agent.
 
10    Section 95. Returned checks; fines. Any person who delivers
11a check or other payment to the Department that is returned to
12the Department unpaid by the financial institution upon which
13it is drawn shall pay to the Department, in addition to the
14amount already owed to the Department, a fine of $50. The fines
15imposed by this Section are in addition to any other discipline
16provided under this Act for unlicensed business or business on
17a nonrenewed license. The Department shall notify the person
18that payment of fees and fines shall be paid to the Department
19by certified check or money order within 30 calendar days of
20the notification. If, after the expiration of 30 days from the
21date of the notification, the person has failed to submit the
22necessary remittance, the Department shall automatically
23terminate the license or card or deny the application, without
24hearing. If, after termination or denial, the person seeks a
25license or card, he or she shall apply to the Department for

 

 

09900HB1016ham001- 32 -LRB099 04847 RLC 47955 a

1restoration or issuance of the license or card and pay all fees
2and fines due to the Department. The Department may establish a
3fee for the processing of an application for restoration of a
4license or card to pay all expenses of processing this
5application. The Secretary may waive the fines due under this
6Section in individual cases if the Secretary finds that the
7fines would be unreasonable or unnecessarily burdensome.
 
8    Section 100. Statute of limitations. No action may be taken
9under this Act against a person or entity licensed under this
10Act unless the action is commenced within 5 years after the
11occurrence of the alleged violations. A continuing violation
12shall be deemed to have occurred on the date when the
13circumstances last existed that give rise to the alleged
14violation.
 
15    Section 105. Complaints; investigations; hearings.
16    (a) The Department may investigate the actions of any
17applicant or of any person or persons holding or claiming to
18hold a license or registration under this Act.
19    (b) The Department shall, before disciplining a licensee
20under Section 115 or refusing to issue or license, at least 30
21days before the date set for the hearing, (i) notify the
22accused in writing of the charges made and the time and place
23for the hearing on the charges, (ii) direct him or her to file
24a written answer to the charges under oath within 20 days after

 

 

09900HB1016ham001- 33 -LRB099 04847 RLC 47955 a

1service, and (iii) inform the applicant or licensee that
2failure to answer will result in a default being entered
3against the applicant or licensee.
4    (c) At the time and place fixed in the notice, the Board or
5the hearing officer appointed by the Secretary shall proceed to
6hear the charges, and the parties or their counsel shall be
7accorded ample opportunity to present any pertinent
8statements, testimony, evidence, and arguments. The Board or
9hearing officer may continue the hearing from time to time. In
10case the person, after receiving the notice, fails to file an
11answer, his or her license may, in the discretion of the
12Secretary, having first received the recommendation of the
13Board, be suspended, revoked, or placed on probationary status,
14or be subject to whatever disciplinary action the Secretary
15considers proper, including limiting the scope, nature, or
16extent of the person's business or the imposition of a fine,
17without hearing, if the act or acts charged constitute
18sufficient grounds for that action under this Act.
19    (d) The written notice and any notice in the subsequent
20proceeding may be served by certified mail to the licensee's
21address of record.
22    (e) The Secretary has the authority to appoint any attorney
23licensed to practice law in this State to serve as the hearing
24officer in any action for refusal to issue, restore, or renew a
25license or to discipline a licensee. The hearing officer has
26full authority to conduct the hearing.
 

 

 

09900HB1016ham001- 34 -LRB099 04847 RLC 47955 a

1    Section 110. Hearing; rehearing.
2    (a) The Board or the hearing officer authorized by the
3Department shall hear evidence in support of the formal charges
4and evidence produced by the licensee. At the conclusion of the
5hearing, the Board shall present to the Secretary a written
6report of its findings of fact, conclusions of law, and
7recommendations. The report shall contain a finding of whether
8the accused person violated this Act or failed to comply with
9the conditions required in this Act. The Board shall specify
10the nature of the violation or failure to comply and shall make
11its recommendation to the Secretary.
12    (b) At the conclusion of the hearing, a copy of the Board
13or hearing officer's report shall be served upon the applicant
14or licensee by the Department, either personally or as provided
15in this Act for the service of a notice of hearing. Within 20
16calendar days after service, the applicant or licensee may
17present to the Department a motion in writing for a rehearing,
18which shall specify the particular grounds for rehearing. The
19Department may respond to the motion for rehearing within 20
20calendar days after its service on the Department. If no motion
21for rehearing is filed, then upon the expiration of the time
22specified for filing such a motion, or upon denial of a motion
23for rehearing, the Secretary may enter an order in accordance
24with the recommendations of the Board or hearing officer. If
25the applicant or licensee orders from the reporting service and

 

 

09900HB1016ham001- 35 -LRB099 04847 RLC 47955 a

1pays for a transcript of the record within the time for filing
2a motion for rehearing, the 20-day period within which a motion
3may be filed shall commence upon the delivery of the transcript
4to the applicant or licensee.
5    (c) If the Secretary disagrees in any regard with the
6report of the Board, the Secretary may issue an order contrary
7to the report. The finding is not admissible in evidence
8against the person in a criminal prosecution brought for the
9violation of this Act, but the hearing and findings are not a
10bar to a criminal prosecution for the violation of this Act.
11    (d) Whenever the Secretary is not satisfied that
12substantial justice has been done, the Secretary may order a
13rehearing by the same or another hearing officer.
14    (e) All proceedings under this Section are matters of
15public record and shall be preserved.
16    (f) Upon the suspension or revocation of a license, the
17licensee shall surrender the license to the Department and,
18upon failure to do so, the Department shall seize the same.
 
19    Section 115. Summary suspension of a license. The Secretary
20may summarily suspend a license without a hearing,
21simultaneously with the initiation of the procedure for a
22hearing provided for in this Act, if the Secretary finds that
23the public interest, safety, or welfare requires the emergency
24action. If the Secretary summarily suspends a license without a
25hearing, a hearing by the Department shall be held within 30

 

 

09900HB1016ham001- 36 -LRB099 04847 RLC 47955 a

1days after the suspension has occurred. The suspended licensee
2may seek a continuance of the hearing, during which time the
3suspension shall remain in effect. The proceeding shall be
4concluded without appreciable delay. If the Department does not
5hold a hearing within 30 days after the date of suspension and
6the suspended licensee did not seek a continuance, the
7licensee's license shall be automatically reinstated.
 
8    Section 120. Disposition by consent order. At any point in
9any investigation or disciplinary proceeding provided for in
10the Act, both parties may agree to a negotiated consent order.
11The consent order shall be final upon signature of the
12Secretary.
 
13    Section 125. Restoration of license after disciplinary
14proceedings. At any time after the successful completion of a
15term of indefinite probation, indefinite suspension, or
16revocation of a license, the Department may restore it to the
17licensee, unless, after an investigation and a hearing, the
18Secretary determines that restoration is not in the public
19interest. No person or entity whose license, card, or authority
20has been revoked as authorized in this Act may apply for
21restoration of that license, registration, or authority until
22such time as provided for in the Civil Administrative Code of
23Illinois.
 

 

 

09900HB1016ham001- 37 -LRB099 04847 RLC 47955 a

1    Section 130. Injunction; cease and desist orders.
2    (a) Upon the filing of a verified petition in court, if
3satisfied by affidavit or otherwise that the person, firm,
4corporation, or other legal entity is or has been conducting
5activities in violation of this Act, the court may enter a
6temporary restraining order or preliminary injunction, without
7bond, enjoining the defendant from further activity. A copy of
8the verified complaint shall be served upon the defendant and
9the proceedings shall be conducted as in civil cases. If it is
10established the defendant has been or is conducting activities
11in violation of this Act, the court may enter a judgment
12enjoining the defendant from that activity. In case of
13violation of any injunctive order or judgment entered under
14this Section, the court may punish the offender for contempt of
15court. Injunctive proceedings shall be in addition to all other
16penalties under this Act.
17    (b) If any person has engaged in the business of selling,
18leasing, or otherwise transferring firearms without having a
19valid license under this Act, then any licensee, any interested
20party, or any person injured thereby may, in addition to the
21Secretary, petition for relief as provided in subsection (a) of
22this Section.
23    (c) Whenever the Department has reason to believe a person,
24firm, corporation, or other legal entity has violated any
25provision of this Act, the Department may issue a rule to show
26cause why an order to cease and desist should not be entered

 

 

09900HB1016ham001- 38 -LRB099 04847 RLC 47955 a

1against that person, firm, corporation, or other legal entity.
2The rule shall clearly set forth the grounds relied upon by the
3Department and shall provide a period of 7 days from the date
4of the rule to file an answer to the satisfaction of the
5Department. Failure to answer to the satisfaction of the
6Department shall cause an order to cease and desist to be
7issued immediately.
 
8    Section 135. Administrative review. All final
9administrative decisions of the Department are subject to
10judicial review under Article III of the Code of Civil
11Procedure. The term "administrative decision" is defined as in
12Section 3-101 of the Code of Civil Procedure. The proceedings
13for judicial review shall be commenced in the circuit court of
14the county in which the party applying for review resides; but
15if the party is not a resident of this State, the venue shall
16be in Sangamon County. The Department shall not be required to
17certify any record to the court or file any answer in court or
18otherwise appear in any court in a judicial review proceeding,
19unless and until the Department has received from the plaintiff
20payment of the costs of furnishing and certifying the record,
21which costs shall be determined by the Department. Exhibits
22shall be certified without cost. Failure on the part of the
23applicant or licensee to file a receipt in court is grounds for
24dismissal of the action.
 

 

 

09900HB1016ham001- 39 -LRB099 04847 RLC 47955 a

1    Section 140. Prima facie proof.
2    (a) An order or a certified copy thereof, over the seal of
3the Department and purporting to be signed by the Secretary, is
4prima facie proof that the signature is that of the Secretary,
5and the Secretary is qualified to act.
6    (b) A certified copy of a record of the Department shall,
7without further proof, be admitted into evidence in any legal
8proceeding, and shall be prima facie correct and prima facie
9evidence of the information contained therein.
 
10    Section 145. Subpoenas.
11    (a) The Department may subpoena and bring before it any
12person to take the oral or written testimony or compel the
13production of any books, papers, records, or any other
14documents that the Secretary or his or her designee deems
15relevant or material to any such investigation or hearing
16conducted by the Department with the same fees and in the same
17manner as prescribed in civil cases in the courts of this
18State.
19    (b) Any circuit court, upon the application of the
20applicant, licensee, or Department, may order the attendance
21and testimony of witnesses and the production of relevant
22documents, files, records, books, and papers in connection with
23any hearing or investigation. The circuit court may compel
24obedience to its order by proceedings for contempt.
25    (c) The Secretary, the hearing officer, any member of the

 

 

09900HB1016ham001- 40 -LRB099 04847 RLC 47955 a

1Board, or a certified shorthand court reporter may administer
2oaths at any hearing the Department conducts. Notwithstanding
3any other statute or Department rule to the contrary, all
4requests for testimony, production of documents or records
5shall be in accordance with this Act.
 
6    Section 150. Stenographers. The Department, at its
7expense, shall preserve the record of all proceedings at a
8formal hearing of any case. The notice of hearing, complaint,
9all other documents in the nature of pleadings and written
10motions filed in the proceedings, the transcript of testimony,
11the report of the Board and orders of the Department shall be
12in the record of the proceedings.
 
13    Section 155. Fees; deposit of fees and fines. The
14Department shall by rule provide for fees for the
15administration and enforcement of this Act, and those fees are
16nonrefundable. Applicants for examination shall be required to
17pay a fee to either the Department or the designated testing
18service to cover the cost of providing the examination. If an
19applicant fails to appear for the examination on the scheduled
20date at the time and place specified by the Department or
21designated testing service, then the applicant's examination
22fee shall be forfeited. All of the fees, penalties, and fines
23collected under this Act shall be deposited into the General
24Professions Dedicated Fund and shall be appropriated to the

 

 

09900HB1016ham001- 41 -LRB099 04847 RLC 47955 a

1Department for the ordinary and contingent expenses of the
2Department in the administration and enforcement of this Act.
 
3    Section 160. Illinois Administrative Procedure Act;
4application.
5    (a) All rules required under this Act shall be adopted in
6accordance with Article 5 of the Illinois Administrative
7Procedure Act.
8    (b) Article 10 of the Illinois Administrative Procedure Act
9is expressly adopted and incorporated in this Act as if all of
10the provisions of that Article were included in this Act,
11except that the provision of paragraph (d) of Section 10-65 of
12the Illinois Administrative Procedure Act, which provides that
13at hearings the registrant or licensee has the right to show
14compliance with all lawful requirements for retention or
15continuation or renewal of the license, is specifically
16excluded. For the purpose of this Act, the notice required
17under Section 10-25 of the Illinois Administrative Procedure
18Act is considered sufficient when mailed to the address of
19record of a party.
 
20    Section 165. Confidentiality. All information collected by
21the Department in the course of an examination or investigation
22of a licensee or applicant, including, but not limited to, any
23complaint against a licensee filed with the Department and
24information collected to investigate any such complaint, shall

 

 

09900HB1016ham001- 42 -LRB099 04847 RLC 47955 a

1be maintained for the confidential use of the Department and
2shall not be disclosed. The Department shall not disclose the
3information to anyone other than law enforcement officials,
4regulatory agencies that have an appropriate regulatory
5interest as determined by the Secretary, or a party presenting
6a lawful subpoena to the Department. Information and documents
7disclosed to a federal, State, county, or local law enforcement
8agency shall not be disclosed by the agency for any purpose to
9any other agency or person. A formal complaint filed against a
10licensee by the Department or any order issued by the
11Department against a licensee or applicant shall be a public
12record, except as otherwise prohibited by law.
 
13    Section 900. The Regulatory Sunset Act is amended by adding
14Section 4.37 as follows:
 
15    (5 ILCS 80/4.37 new)
16    Sec. 4.37. Act repealed on January 1, 2027. The following
17Act is repealed on January 1, 2027:
18    The Gun Dealer Licensing Act.".