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91_HB0619sam004
LRB9102189JSpcam
1 AMENDMENT TO HOUSE BILL 619
2 AMENDMENT NO. . Amend House Bill 619 on page 1,
3 lines 2 and 6, by changing "Section 5" each time it appears
4 to "Sections 0.05, 2, 5, 6, and 11"; and
5 on page 1, below line 6, by inserting the following:
6 "(205 ILCS 510/0.05)
7 Sec. 0.05. Administration of Act.
8 (a) This Act shall be administered by the Commissioner
9 of Banks and Real Estate who shall have all of the following
10 powers and duties in administering this Act:
11 (1) To promulgate reasonable rules for the purpose
12 of administering the provisions of this Act.
13 (2) To issue orders for the purpose of
14 administering the provisions of this Act and any rule
15 promulgated in accordance with this Act.
16 (3) To appoint hearing officers and to hire
17 employees or to contract with appropriate persons to
18 execute any of the powers granted to the Commissioner
19 under this Section for the purpose of administering this
20 Act and any rule promulgated in accordance with this Act.
21 (4) To subpoena witnesses, to compel their
22 attendance, to administer an oath, to examine any person
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1 under oath, and to require the production of any relevant
2 books, papers, accounts, and documents in the course of
3 and pursuant to any investigation being conducted, or any
4 action being taken, by the Commissioner in respect of any
5 matter relating to the duties imposed upon, or the powers
6 vested in, the Commissioner under the provisions of this
7 Act or any rule promulgated in accordance with this Act.
8 (5) To conduct hearings.
9 (6) To impose civil penalties graduated up to
10 $1,000 against any person for each violation of any
11 provision of this Act, any rule promulgated in accordance
12 with this Act, or any order of the Commissioner based
13 upon the seriousness of the violation.
14 (6.5) To initiate injunction proceedings whenever
15 it appears to the Commissioner that any person, whether
16 licensed under this Act or not, is engaged or about to
17 engage in an act or practice that constitutes or will
18 constitute a violation of this Act or any rule prescribed
19 under the authority of this Act. The Commissioner may,
20 in his or her discretion, apply for an injunction, and
21 upon a proper showing, any circuit court may enter a
22 permanent or preliminary injunction or a temporary
23 restraining order without bond to enforce this Act in
24 addition to the penalties and other remedies provided for
25 in this Act.
26 (7) To issue a cease and desist order and, for
27 violations of this Act, any rule promulgated in
28 accordance with this Act, or any other applicable law in
29 connection with the operation of a pawnshop, to suspend a
30 license issued under this Act for up to 30 days.
31 (8) To examine the affairs of any pawnshop if the
32 Commissioner has reasonable cause to believe that
33 unlawful or fraudulent activity is occurring, or has
34 occurred, therein.
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1 (9) In response to a complaint, to address any
2 inquiries to any pawnshop in relation to its affairs, and
3 it shall be the duty of the pawnshop to promptly reply in
4 writing to such inquiries. The Commissioner may also
5 require reports or information from any pawnshop at any
6 time the Commissioner may deem desirable.
7 (10) To revoke a license issued under this Act if
8 the Commissioner determines that (a) a licensee has been
9 convicted of a felony in connection with the operations
10 of a pawnshop; (b) a licensee knowingly, recklessly, or
11 continuously violated this Act, a rule promulgated in
12 accordance with this Act, or any order of the
13 Commissioner; (c) a fact or condition exists that, if it
14 had existed or had been known at the time of the original
15 application, would have justified license refusal; or (d)
16 the licensee knowingly submits materially false or
17 misleading documents with the intent to deceive the
18 Commissioner or any other party.
19 (11) Following license revocation, to take
20 possession and control of a pawnshop for the purpose of
21 examination, reorganization, or liquidation through
22 receivership and to appoint a receiver, which may be the
23 Commissioner, a pawnshop, or another suitable person.
24 (b) After consultation with local law enforcement
25 officers, the Attorney General, and the industry, the
26 Commissioner may by rule require that pawnbrokers operate
27 video camera surveillance systems to record photographic
28 representations of customers and retain the tapes produced
29 for up to 30 days.
30 (c) Pursuant to rule, the Commissioner shall issue
31 licenses on an annual or multi-year basis for operating a
32 pawnshop. Any person currently operating or who has operated
33 a pawnshop in this State during the 2 years preceding the
34 effective date of this amendatory Act of 1997 shall be issued
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1 a license upon payment of the fee required under this Act.
2 New applicants shall meet standards for a license as
3 established by the Commissioner. Except with the prior
4 written consent of the Commissioner, no individual, either a
5 new applicant or a person currently operating a pawnshop, may
6 be issued a license to operate a pawnshop if the individual
7 has been convicted of a felony or of any criminal offense
8 relating to dishonesty or breach of trust in connection with
9 the operations of a pawnshop. The Commissioner shall
10 establish license fees. The fees shall not exceed the amount
11 reasonably required for administration of this Act. It shall
12 be unlawful to operate a pawnshop without a license issued by
13 the Commissioner.
14 (d) In addition to license fees, the Commissioner may,
15 by rule, establish fees in connection with a review,
16 approval, or provision of a service, and levy a reasonable
17 charge to recover the cost of the review, approval, or
18 service (such as a change in control, change in location, or
19 renewal of a license). The Commissioner may also levy a
20 reasonable charge to recover the cost of an examination if
21 the Commissioner determines that unlawful or fraudulent
22 activity has occurred. The Commissioner may require payment
23 of the fees and charges provided in this Act by certified
24 check, money order, an electronic transfer of funds, or an
25 automatic debit of an account.
26 (e) The Pawnbroker Regulation Fund is established as a
27 special fund in the State treasury. Moneys collected under
28 this Act shall be deposited into the Fund and used for the
29 administration of this Act. In the event that General
30 Revenue Funds are appropriated to the Office of the
31 Commissioner of Banks and Real Estate for the initial
32 implementation of this Act, the Governor may direct the
33 repayment from the Pawnbroker Regulation Fund to the General
34 Revenue Fund of such advance in an amount not to exceed
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1 $30,000. The Governor may direct this interfund transfer at
2 such time as he deems appropriate by giving appropriate
3 written notice.
4 (f) The Commissioner may, by rule, require all pawnshops
5 to provide for the expenses that would arise from the
6 administration of the receivership of a pawnshop under this
7 Act through the assessment of fees, the requirement to pledge
8 surety bonds, or such other methods as determined by the
9 Commissioner.
10 (g) All final administrative decisions of the
11 Commissioner under this Act shall be subject to judicial
12 review pursuant to the provisions of the Administrative
13 Review Law. For matters involving administrative review,
14 venue shall be in either Sangamon County or Cook County.
15 (Source: P.A. 90-477, eff. 7-1-98; 90-602, eff. 7-1-98.)
16 (205 ILCS 510/2) (from Ch. 17, par. 4652)
17 Sec. 2. Interest; fees. It shall be unlawful for any
18 pawnbroker to charge or collect a greater benefit or
19 percentage upon money advanced, and for the use and
20 forbearance thereof, than the rate of 3% per month. Nothing
21 in this Section shall be construed so as to conflict with the
22 law pertaining to usury and the person receiving money so
23 advanced may hold such moneys to pay any fees in addition to
24 interest as herein provided.
25 Each pawnbroker, when making a loan under this Section,
26 must disclose in printed form on the pawn contract the
27 following information to the persons receiving the loan:
28 (1) the amount of money advanced, which must be
29 designated as the amount financed;
30 (2) the maturity date of the pawn, which must be at
31 least 30 days after the date of the pawn;
32 (3) the total pawn interest and service charge
33 payable on the maturity date, which must be designated as
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1 the finance charge;
2 (4) the total of payments that must be paid to
3 redeem the pledged goods on the maturity date, which must
4 be designated as the total of payments; and
5 (5) the annual percentage rate, computed according
6 to the regulations adopted by the Board of Governors of
7 the Federal Reserve System under the Federal Truth in
8 Lending Act.
9 Each pawnbroker may contract for and receive a monthly
10 finance charge including interest and fees not to exceed
11 one-fifth of the loan amount, as set forth herein, for
12 appraising, investigating title, storing and insuring the
13 collateral, closing the loan, making daily reports to local
14 law enforcement officers including enhanced computerized
15 reporting, complying with regulatory requirements, and for
16 other expenses and losses of every nature whatsoever and for
17 all other services. Such fees, when made and collected, shall
18 not be deemed interest for any purpose of law. In addition
19 to any other interest and fees prescribed by this Act, a
20 pawnbroker may also charge and collect the cost of any
21 government mandated taxes including, but not limited to, the
22 cost of firearm background checks required under federal law.
23
24 (Source: P.A. 90-477, eff. 7-1-98.)"; and
25 on page 3, below line 11, by inserting the following:
26 "(205 ILCS 510/6) (from Ch. 17, par. 4656)
27 Sec. 6. Inspection of records.
28 (a) The book or computer records, as well as every
29 article or other thing of value so pawned or pledged, shall
30 at all times be open to the inspection of the Commissioner,
31 the sheriff of the county, his deputies, or any members of
32 the police force of any city in the county in which such
33 pawnbroker does business. In addition, the Commissioner
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1 shall be authorized to inspect the books or records of any
2 business he or she has reasonable cause to believe is
3 conducting pawn transactions and should be licensed under
4 this Act.
5 (b) The book or computer records, pawn tickets, or any
6 other records required by the Commissioner under this Act or
7 any rule promulgated in accordance with this Act shall be
8 maintained for a period of 3 years after the date on which
9 the record or ticket was prepared. These records and tickets
10 shall be open to inspection of the Commissioner at all times
11 during this 3-year period.
12 (Source: P.A. 90-477, eff. 7-1-98.)
13 (205 ILCS 510/11) (from Ch. 17, par. 4661)
14 Sec. 11. Penalties. Every person who knowingly violates
15 the provisions of this Act shall, for the first offense, be
16 guilty of a Class C misdemeanor, and for each subsequent
17 offense shall be guilty of a Class A misdemeanor, except that
18 a person who knowingly violates this Act by operating a
19 pawnshop without a license shall be guilty of a Class B
20 misdemeanor for the first offense and shall be guilty of a
21 Class A misdemeanor for any subsequent offense. , provided,
22 that This Act shall not be construed as to, in any wise,
23 impair the power of cities or villages in this State to
24 license, tax, regulate except as to fee amounts, suppress,
25 and prohibit pawnbrokers as now provided by law.
26 (Source: P.A. 90-477, eff. 7-1-98.)".