HB0779 EnrolledLRB103 04371 RPS 49377 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4
Article 1. General Provisions

 
5    Section 1-1. Short title. This Act may be cited as the
6Pawnbroker Regulation Act of 2023.
 
7    Section 1-5. Definitions.
8    As used in this Act:
9    "Applicant" means a person applying for a license pursuant
10to this Act.
11    "Department" means the Department of Financial and
12Professional Regulation.
13    "Licensee" means a person licensed pursuant to this Act.
14    "Pawn" means the advance of money on the deposit or pledge
15of physically delivered personal property, other than property
16the ownership of which is subject to a legal dispute or other
17exempt property or instruments.
18    "Pawnbroker" means every individual or business entity
19that:
20        (1) advances money on the pledge of tangible personal
21    property, other than securities, printed evidence of
22    indebtedness, or printed evidence of ownership of the

 

 

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1    personal property; or
2        (2) deals in the purchase of personal property on the
3    condition of selling the property back again at a
4    stipulated price.
5    "Pawn customer" means a person who pawns or pledges and
6physically delivers personal property in exchange for money.
7    "Secretary" means the Secretary of Financial and
8Professional Regulation, or his or her designee, including the
9Director of the Division of Banking of the Department of
10Financial and Professional Regulation.
 
11
Article 5. Licensure

 
12    Section 5-1. Scope; number of pawnbroker licenses.
13    (a) It is unlawful for any person to operate as a
14pawnbroker in Illinois except as authorized by this Act and
15without first having obtained a license in accordance with
16this Act.
17    (b) The business of a pawnbroker does not include advances
18of money secured by a deposit or pledge of title to personal
19property or motor vehicles.
20    (c) There shall not be more than 250 active pawnbroker
21licenses at any one time within the State of Illinois. There
22shall not be more than 150 active pawnbroker licenses issued
23for the counties of Cook, DuPage, Kane, Lake, McHenry, and
24Will at any one time.
 

 

 

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1    Section 5-5. Licensee name.
2    (a) No person, partnership, association, corporation,
3limited liability company, or other entity engaged in the
4business regulated by this Act shall operate the business
5under a name other than the real names of the entity and
6individuals conducting the business. The business may in
7addition operate under an assumed corporate name pursuant to
8the Business Corporation Act of 1983, an assumed limited
9liability company name pursuant to the Limited Liability
10Company Act, or an assumed business name pursuant to the
11Assumed Business Name Act.
12    (b) It is unlawful for an individual or business entity to
13conduct business in this State using the word "pawn",
14"pawnshop", or "pawnbroker" in connection with the business or
15to transact business in this State in a manner that has a
16substantial likelihood of misleading the public by implying
17that the business is a pawnshop, without first obtaining a
18license from the Secretary.
 
19    Section 5-10. Application process; investigation; fees.
20    (a) The Secretary shall issue a license upon completion of
21all of the following:
22        (1) The filing of an application for license with the
23    Secretary or the Nationwide Multistate Licensing System
24    and Registry as approved by the Secretary.

 

 

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1        (2) The filing with the Secretary of a listing of
2    judgments entered against, and bankruptcy petitions by,
3    the license applicant for the preceding 10 years.
4        (3) The payment, in certified funds, of the following
5    investigation and application fees:
6            (A) the fees for licensure shall be a $2,000
7        application fee and an additional $800 fee for
8        investigation. These fees are nonrefundable; and
9            (B) the fee for an application renewal shall be
10        $2,000. The fee is nonrefundable.
11        (4) An investigation of the application, which
12    investigation must allow the Secretary to issue positive
13    findings stating that the financial responsibility,
14    experience, character, and general fitness of the license
15    applicant and of the members thereof if the license
16    applicant is a partnership or association, of the officers
17    and directors thereof if the license applicant is a
18    corporation, and of the managers and members that retain
19    any authority or responsibility under the operating
20    agreement if the license applicant is a limited liability
21    company, are such as to command the confidence of the
22    community and to warrant belief that the business will be
23    operated honestly, fairly, and efficiently within the
24    purpose of this Act; if the Secretary does not so find, he
25    or she shall not issue the license, and he or she shall
26    notify the license applicant of the denial.

 

 

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1    The Secretary may impose conditions on a license if the
2Secretary determines that those conditions are necessary or
3appropriate. These conditions shall be imposed in writing and
4shall continue in effect for the period prescribed by the
5Secretary.
6    (b) All licenses shall be issued to the license applicant.
7Upon issuance of the license, a pawnbroker licensee shall be
8authorized to engage in the business regulated by this Act.
9The license shall remain in full force and effect until it
10expires without renewal, is surrendered by the licensee, or
11revoked or suspended.
 
12    Section 5-15. Application form.
13    (a) Application for a pawnbroker license must be made in
14accordance with Section 5-20 and, if applicable, in accordance
15with requirements of the Nationwide Multistate Licensing
16System and Registry. The application shall be in writing,
17under oath or affirmation, and on a form obtained from and
18prescribed by the Secretary, or may be submitted
19electronically, with attestation, to the Nationwide Multistate
20Licensing System and Registry.
21    (b) The application shall contain the name, complete
22business, and residential address or addresses of the license
23applicant. If the license applicant is a partnership,
24association, corporation, or other form of business
25organization, the application shall contain the names and

 

 

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1complete business and residential addresses of each member,
2director, and principal officer thereof. The application shall
3also include a description of the activities of the license
4applicant in such detail and for such periods as the Secretary
5may require, including all of the following:
6        (1) an affirmation of financial solvency noting such
7    capitalization requirements as may be required by the
8    Secretary and access to such credit as may be required by
9    the Secretary;
10        (2) an affirmation that the license applicant or its
11    members, directors, or principals, as may be appropriate,
12    are at least 18 years of age;
13        (3) information as to the character, fitness,
14    financial and business responsibility, background,
15    experience, and criminal record of any:
16            (A) person, entity, or ultimate equitable owner
17        that owns or controls, directly or indirectly, 10% or
18        more of any class of stock of the license applicant;
19            (B) person, entity, or ultimate equitable owner
20        that is not a depository institution, as defined in
21        Section 1007.50 of the Savings Bank Act, that lends,
22        provides, or infuses, directly or indirectly, in any
23        way, funds to or into a license applicant in an amount
24        equal to or more than 10% of the license applicant's
25        net worth;
26            (C) person, entity, or ultimate equitable owner

 

 

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1        that controls, directly or indirectly, the election of
2        25% or more of the members of the board of directors of
3        a license applicant; or
4            (D) person, entity, or ultimate equitable owner
5        that the Secretary finds influences management of the
6        license applicant; the provisions of this subsection
7        shall not apply to a public official serving on the
8        board of directors of a State guaranty agency;
9        (4) upon written request by the licensee and
10    notwithstanding the provisions of paragraphs (1) and (2)
11    of this subsection, the Secretary may permit the licensee
12    to omit all or part of the information required by those
13    paragraphs if, instead of the omitted information, the
14    licensee submits an affidavit stating that the information
15    submitted on the licensee's previous renewal application
16    is still true and accurate; then the Secretary may adopt
17    rules prescribing the form and content of the affidavit
18    that are necessary to accomplish the purposes of this
19    Section; and
20        (5) such other information as required by rules of the
21    Secretary.
 
22    Section 5-20. Pawnbroker license application and issuance.
23    (a) Applicants for a license shall apply in a form
24prescribed by the Secretary. Each form shall contain content
25as set forth by rule, regulation, instruction, or procedure of

 

 

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1the Department or Secretary and may be changed or updated as
2necessary by the Department or Secretary in order to carry out
3the purposes of this Act.
4    (b) In order to fulfill the purposes of this Act, the
5Secretary is authorized to establish relationships or
6contracts with the Nationwide Multistate Licensing System and
7Registry or other entities designated by the Nationwide
8Multistate Licensing System and Registry to collect and
9maintain records and process transaction fees or other fees
10related to licensees or other persons subject to this Act.
11    (c) In connection with an application for licensing, the
12applicant may be required, at a minimum, to furnish to the
13Nationwide Multistate Licensing System and Registry
14information concerning the applicant's identity, including:
15        (1) fingerprints for submission to the Federal Bureau
16    of Investigation or any governmental agency or entity
17    authorized to receive such information for a State,
18    national, and international criminal history background
19    check; and
20        (2) personal history and experience in a form
21    prescribed by the Nationwide Multistate Licensing System
22    and Registry, including the submission of authorization
23    for the Nationwide Multistate Licensing System and
24    Registry and the Secretary to obtain:
25            (A) an independent credit report obtained from a
26        consumer reporting agency described in Section 603(p)

 

 

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1        of the Fair Credit Reporting Act, 15 U.S.C. 1681a(p);
2        and
3            (B) information related to any administrative,
4        civil, or criminal findings by any governmental
5        jurisdiction.
6    (d) For the purposes of this Section, and in order to
7reduce the points of contact that the Federal Bureau of
8Investigation may have to maintain for purposes of subsection
9(c), the Secretary may use the Nationwide Multistate Licensing
10System and Registry as a channeling agent for requesting
11information from and distributing information to the federal
12Department of Justice or any governmental agency.
13    (e) For the purposes of this Section, and in order to
14reduce the points of contact that the Secretary may have to
15maintain for purposes of paragraph (2) of subsection (c), the
16Secretary may use the Nationwide Multistate Licensing System
17and Registry as a channeling agent for requesting and
18distributing information to and from any source as directed by
19the Secretary.
 
20    Section 5-25. Prohibited acts and practices for licensees.
21    (a) It is a violation of this Act for a licensee subject to
22this Act to:
23        (1) fail to file with the Secretary or Nationwide
24    Multistate Licensing System and Registry, as applicable,
25    when due, any report or reports that it is required to file

 

 

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1    under any of the provisions of this Act;
2        (2) commit a crime against the law of this State, any
3    other state, or of the United States involving moral
4    turpitude or fraudulent or dishonest dealing, and that no
5    final judgment has been entered against it in a civil
6    action upon grounds of fraud, misrepresentation, or deceit
7    that has not been previously reported to the Secretary;
8        (3) engage in any conduct that would be cause for
9    denial of a license;
10        (4) become insolvent;
11        (5) submit an application for a license under this Act
12    that contains a material misstatement;
13        (6) demonstrate by course of conduct, negligence, or
14    incompetence in performing any act for which it is
15    required to hold a license under this Act;
16        (7) fail to advise the Secretary in writing or the
17    Nationwide Multistate Licensing System and Registry, as
18    applicable, of any changes to the information submitted on
19    the most recent application for license or averments of
20    record within 30 days after the change; the written notice
21    must be signed in the same form as the application for the
22    license being amended;
23        (8) fail to comply with the provisions of this Act and
24    with any lawful order, rule, or regulation made or issued
25    under the provisions of this Act;
26        (9) fail to submit to periodic examination by the

 

 

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1    Secretary as required by this Act; and
2        (10) fail to advise the Secretary in writing of
3    judgments entered against and bankruptcy petitions by the
4    license applicant within 5 days after the occurrence.
5    (b) A licensee who fails to comply with this Section or
6otherwise violates any of the provisions of this Section shall
7be subject to the penalties in Section 30-30.
 
8    Section 5-30. Refusal to issue license. The Secretary
9shall refuse to issue or renew a license if:
10        (1) it is determined that the applicant is not in
11    compliance with any provisions of this Act;
12        (2) there is substantial continuity between the
13    applicant and any violator of this Act; or
14        (3) the Secretary cannot make the findings specified
15    in subsection (a) of Section 5-10.
 
16    Section 5-35. License issuance and renewal; fees.
17    (a) Licenses shall be renewed every year using the common
18renewal date of the Nationwide Multistate Licensing System and
19Registry, as adopted by the Secretary. Properly completed
20renewal application forms and filing fees may be received by
21the Secretary 60 days before the license expiration date, but,
22to be deemed timely, the completed renewal application forms
23and filing fees must be received by the Secretary no later than
2430 days before the license expiration date.

 

 

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1    (b) It shall be the responsibility of each licensee to
2accomplish renewal of its license. Failure by a licensee to
3submit a properly completed renewal application form and fees
4in a timely fashion, absent a written extension from the
5Secretary, shall result in the license becoming inactive.
6    (c) No activity regulated by this Act shall be conducted
7by the licensee when a license becomes inactive. An inactive
8license may be reactivated by the Secretary upon payment of
9the renewal fee and payment of a reactivation fee equal to the
10renewal fee.
11    (d) A licensee ceasing an activity regulated by this Act
12and desiring to no longer be licensed shall so inform the
13Secretary in writing and, at the same time, convey any license
14issued and all other symbols or indicia of licensure. The
15licensee shall include a plan for the withdrawal from
16regulated business, including a timetable for the disposition
17of the business, and comply with the surrender guidelines or
18requirements of the Secretary. Upon receipt of such written
19notice, the Secretary shall post the cancellation or issue a
20certified statement canceling the license.
21    (e) The expenses of administering this Act, including
22investigations and examinations provided for in this Act,
23shall be borne by and assessed against entities regulated by
24this Act. Subject to the limitations set forth in Section
255-10, the Department shall establish fees by rule in at least
26the following categories:

 

 

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1            (1) investigation of licensees and license
2        applicant fees;
3            (2) examination fees;
4            (3) contingent fees; and
5            (4) such other categories as may be required to
6        administer this Act.
 
7
Article 10. Supervision

 
8    Section 10-5. Functions; powers; duties.
9    The functions, powers, and duties of the Secretary shall
10include the following:
11        (1) to issue or refuse to issue any license as
12    provided by this Act;
13        (2) to revoke or suspend for cause any license issued
14    under this Act;
15        (3) to keep records of all licenses issued under this
16    Act;
17        (4) to receive, consider, investigate, and act upon
18    complaints made by any person in connection with any
19    pawnbroker licensee in this State;
20        (5) to prescribe the forms of and receive:
21            (A) applications for licenses; and
22            (B) all reports and all books and records required
23        to be made by any licensee under this Act;
24        (6) to adopt rules necessary and proper for the

 

 

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1    administration of this Act;
2        (7) to subpoena documents and witnesses and compel
3    their attendance and production, to administer oaths and
4    affirmations, and to require the production of any books,
5    papers, or other materials relevant to any inquiry
6    authorized by this Act;
7        (8) to issue orders against any person, including, but
8    not limited to, any officer, director, employee,
9    prospective employee, or agent of the licensee, if the
10    Secretary has reasonable cause to believe that an unsafe,
11    unsound, or unlawful practice has occurred, is occurring,
12    or is about to occur; if any person has violated, is
13    violating, or is about to violate any law, rule, or
14    written agreement with the Secretary; or for the purpose
15    of administering the provisions of this Act and any rule
16    adopted in accordance with this Act;
17        (9) to address any inquiries to any licensee, or the
18    officers thereof, in relation to its activities and
19    conditions, or any other matter connected with its
20    affairs, and it shall be the duty of any licensee or person
21    so addressed to promptly reply in writing to those
22    inquiries; the Secretary may also require reports from any
23    licensee at any time the Secretary may deem desirable;
24        (10) to examine the books and records of every
25    licensee under this Act;
26        (11) to enforce provisions of this Act;

 

 

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1        (12) to levy fees, fines, and charges for services
2    performed in administering this Act; the aggregate of all
3    fees collected by the Secretary on and after the effective
4    date of this Act shall be paid promptly after receipt,
5    accompanied by a detailed statement thereof, into the
6    Pawnbroker Regulation Fund under Section 10-10; the
7    amounts deposited into that Fund shall be used for the
8    ordinary and contingent expenses of the Department;
9    nothing in this Act shall prevent the continuation of the
10    practice of paying expenses involving salaries,
11    retirement, social security, and State-paid insurance of
12    State officers by appropriation from the General Revenue
13    Fund;
14        (13) to appoint examiners, supervisors, experts, and
15    special assistants as needed to effectively and
16    efficiently administer this Act;
17        (14) to conduct hearings for the purpose of:
18            (A) appeals of orders of the Secretary;
19            (B) suspensions or revocations of licenses, or
20        fining of licensees;
21            (C) investigating complaints against licensees;
22        and
23            (D) carrying out the purposes of this Act;
24        (15) to exercise exclusive visitorial power over a
25    licensee unless otherwise authorized by this Act or as
26    vested in the courts;

 

 

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1        (16) to assign on an emergency basis an examiner or
2    examiners to monitor the affairs of a licensee with
3    whatever frequency the Secretary determines appropriate
4    and to charge the licensee for reasonable and necessary
5    expenses of the Secretary, if in the opinion of the
6    Secretary an emergency exists or appears likely to occur;
7        (17) to impose civil penalties of up to $50 per day
8    against a licensee for failing to respond to a regulatory
9    request or reporting requirement;
10        (18) to enter into agreements in connection with the
11    Nationwide Multistate Licensing System and Registry; and
12        (19) to perform any other lawful acts necessary or
13    desirable to carry out the purposes and provisions of this
14    Act.
 
15    Section 10-10. Pawnbroker Regulation Fund. The Pawnbroker
16Regulation Fund, which was established by Public Act 90-477,
17shall continue to be a special fund in the State treasury. All
18moneys received by the Secretary under this Act in conjunction
19with the provisions relating to pawnbrokers shall be deposited
20into the Pawnbroker Regulation Fund and used for the
21administration of this Act. Moneys in the Pawnbroker
22Regulation Fund may be transferred to the Professions Indirect
23Cost Fund, as authorized under Section 2105-300 of the
24Department of Professional Regulation Law of the Civil
25Administrative Code of Illinois.
 

 

 

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1    Section 10-15. Examination; prohibited activities.
2    (a) The business affairs of a licensee under this Act
3shall be examined for compliance with this Act as often as the
4Secretary deems necessary and proper. The Department may adopt
5rules with respect to the frequency and manner of examination.
6The Secretary shall appoint a suitable person to perform such
7examination. The Secretary and his or her appointees may
8examine the entire books, records, documents, and operations
9of each licensee and its subsidiary, affiliate, or agent, and
10may examine any of the licensee's or its subsidiary's,
11affiliate's, or agent's officers, directors, employees, and
12agents under oath or affirmation.
13    (b) The Secretary shall prepare a sufficiently detailed
14report of each licensee's examination, shall issue a copy of
15the report to each licensee's principals, officers, or
16directors, and shall take appropriate steps to ensure
17correction of violations of this Act.
18    (c) Affiliates of a licensee shall be subject to
19examination by the Secretary on the same terms as the
20licensee, but only if reports from or examination of a
21licensee provides for documented evidence of unlawful activity
22between a licensee and affiliate benefiting, affecting, or
23deriving from the activities regulated by this Act.
24    (d) The expenses of any examination of the licensee and
25affiliates shall be borne by the licensee and assessed by the

 

 

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1Secretary as may be established by rule.
2    (e) Upon completion of the examination, the Secretary
3shall issue a report to the licensee. All confidential
4supervisory information, including the examination report and
5the work papers of the report, shall belong to the Secretary's
6office and may not be disclosed to anyone other than the
7licensee, law enforcement officials or other regulatory
8agencies that have an appropriate regulatory interest as
9determined by the Secretary, or to a party presenting a lawful
10subpoena to the Department. The Secretary may, through the
11Attorney General, immediately appeal to the court of
12jurisdiction the disclosure of such confidential supervisory
13information and seek a stay of the subpoena pending the
14outcome of the appeal. Reports required of licensees by the
15Secretary under this Act and results of examinations performed
16by the Secretary under this Act shall be the property of only
17the Secretary, but may be shared with the licensee. Access
18under this Act to the books and records of each licensee shall
19be limited to the Secretary and his or her agents as provided
20in this Act and to the licensee and its authorized agents and
21designees. No other person shall have access to the books and
22records of a licensee under this Act. Any person upon whom a
23demand for production of confidential supervisory information
24is made, whether by subpoena, order, or other judicial or
25administrative process, must withhold production of the
26confidential supervisory information and must notify the

 

 

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1Secretary of the demand, at which time the Secretary is
2authorized to intervene for the purpose of enforcing the
3limitations of this Section or seeking the withdrawal or
4termination of the attempt to compel production of the
5confidential supervisory information. The Secretary may impose
6any conditions and limitations on the disclosure of
7confidential supervisory information that are necessary to
8protect the confidentiality of that information. Except as
9authorized by the Secretary, no person obtaining access to
10confidential supervisory information may make a copy of the
11confidential supervisory information. The Secretary may
12condition a decision to disclose confidential supervisory
13information on entry of a protective order by the court or
14administrative tribunal presiding in the particular case or on
15a written agreement of confidentiality. In a case in which a
16protective order or agreement has already been entered between
17parties other than the Secretary, the Secretary may
18nevertheless condition approval for release of confidential
19supervisory information upon the inclusion of additional or
20amended provisions in the protective order. The Secretary may
21authorize a party who obtained the records for use in one case
22to provide them to another party in another case, subject to
23any conditions that the Secretary may impose on either or both
24parties. The requester shall promptly notify other parties to
25a case of the release of confidential supervisory information
26obtained and, upon entry of a protective order, shall provide

 

 

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1copies of confidential supervisory information to the other
2parties.
3    (f) The Secretary and employees of the Department shall be
4subject to the restrictions provided in Section 2.5 of the
5Division of Banking Act, including, without limitation, the
6restrictions on:
7        (1) owning shares of stock or holding any other equity
8    interest in an entity regulated under this Act or in any
9    corporation or company that owns or controls an entity
10    regulated under this Act;
11        (2) being an officer, director, employee, or agent of
12    an entity regulated under this Act; and
13        (3) obtaining a pawn or accepting a gratuity from an
14    entity regulated under this Act.
 
15    Section 10-20. Subpoena power of the Secretary.
16    (a) The Secretary shall have the power to issue and to
17serve subpoenas and subpoenas duces tecum to compel the
18attendance of witnesses and the production of all books,
19accounts, records, and other documents and materials relevant
20to an examination or investigation. The Secretary, or his or
21her duly authorized representative, shall have power to
22administer oaths and affirmations to any person.
23    (b) In the event of noncompliance with a subpoena or
24subpoena duces tecum issued or caused to be issued by the
25Secretary, the Secretary may, through the Attorney General,

 

 

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1petition the circuit court of the county in which the person
2subpoenaed resides or has its principal place of business for
3an order requiring the subpoenaed person to appear and testify
4and to produce such books, accounts, records, and other
5documents as are specified in the subpoena duces tecum. The
6court may grant injunctive relief restraining the person from
7advertising, promoting, soliciting, entering into, offering to
8enter into, continuing, or completing any pawn transaction.
9The court may grant other relief, including, but not limited
10to, the restraint, by injunction or appointment of a receiver,
11of any transfer, pledge, assignment, or other disposition of
12the person's assets or any concealment, alteration,
13destruction, or other disposition of books, accounts, records,
14or other documents and materials as the court deems
15appropriate, until the person has fully complied with the
16subpoena or subpoena duces tecum and the Secretary has
17completed an investigation or examination.
18    (c) If it appears to the Secretary that the compliance
19with a subpoena or subpoena duces tecum issued or caused to be
20issued by the Secretary pursuant to this Section is essential
21to an investigation or examination, the Secretary, in addition
22to the other remedies provided for in this Act, may, through
23the Attorney General, apply for relief to the circuit court of
24the county in which the subpoenaed person resides or has its
25principal place of business. The court shall thereupon direct
26the issuance of an order against the subpoenaed person

 

 

HB0779 Enrolled- 22 -LRB103 04371 RPS 49377 b

1requiring sufficient bond conditioned on compliance with the
2subpoena or subpoena duces tecum. The court shall cause to be
3endorsed on the order a suitable amount of bond or payment
4pursuant to which the person named in the order shall be freed,
5having a due regard to the nature of the case.
6    (d) In addition, the Secretary may, through the Attorney
7General, seek a writ of attachment or an equivalent order from
8the circuit court having jurisdiction over the person who has
9refused to obey a subpoena, who has refused to give testimony,
10or who has refused to produce the matters described in the
11subpoena duces tecum.
 
12    Section 10-25. Inspection of records and reports required
13of licensee.
14    (a) Inspection of records.
15        (1) The book or computer records, as well as every
16    article or other thing of value so pawned or pledged,
17    shall at all times be open to the inspection of the
18    Secretary, the sheriff of the county, his deputies, or any
19    members of the police force of any city in the county in
20    which such pawnbroker does business. In addition, the
21    Secretary shall be authorized to inspect the books or
22    records of any business he or she has reasonable cause to
23    believe is conducting pawn transactions and should be
24    licensed under this Act.
25        (2) The book or computer records, pawn tickets, or any

 

 

HB0779 Enrolled- 23 -LRB103 04371 RPS 49377 b

1    other records required by the Secretary under this Act or
2    any rule adopted in accordance with this Act shall be
3    maintained for a period of 3 years after the date on which
4    the record or ticket was prepared. These records and
5    tickets shall be open to inspection of the Secretary at
6    all times during the 3-year period.
7    (b) Daily report.
8        (1) Except as provided in paragraph (2) of this
9    subsection, it shall be the duty of every pawnbroker to
10    make out and deliver to the sheriff of the county in which
11    such pawnbroker does business, on each day before noon, a
12    legible and exact copy from the standard record book, as
13    required in subsection (a) of Section 15-25, that lists
14    all personal property and any other valuable thing
15    received on deposit or purchased during the preceding day,
16    including the exact time when received or purchased, and a
17    description of the person or person by whom left in
18    pledge, or from whom the same were purchased; however, in
19    cities or towns having 25,000 or more inhabitants, a copy
20    of the report shall at the same time also be delivered to
21    the superintendent of police or the chief police officer
22    of such city or town. The report may be made by computer
23    printout or input memory device if the format has been
24    approved by the local law enforcement agency.
25        (2) In counties with more than 3,000,000 inhabitants,
26    a pawnbroker must provide the daily report to the sheriff

 

 

HB0779 Enrolled- 24 -LRB103 04371 RPS 49377 b

1    only if the pawnshop is located in an unincorporated area
2    of the county. Pawnbrokers located in cities or towns in
3    such counties must deliver such reports to the
4    superintendent of police or the chief police officer of
5    the city or town.
6    (c) Report to the Secretary. The Secretary, as often as
7the Secretary shall deem necessary or proper, may require a
8pawnshop to submit a full and detailed report of its
9operations including, but not limited to, the number of pawns
10made, the amount advanced on pawn transactions, the number and
11amount of pawns surrendered to law enforcement, and any
12information required for purposes of reporting pursuant to
13Section 10-60. The Secretary shall prescribe the form of the
14report and establish the date by which the report must be
15filed.
 
16    Section 10-30. Suspension; revocation of licenses; fines.
17    (a) Upon written notice to a licensee, the Secretary may
18suspend or revoke any license issued pursuant to this Act if,
19in the notice, he or she makes a finding of one or more of the
20following:
21        (1) that through separate acts or an act or a course of
22    conduct, the licensee has violated any provisions of this
23    Act, any rule adopted by the Department, or any other law,
24    rule, or regulation of this State or the United States;
25        (2) that any fact or condition exists that, if it had

 

 

HB0779 Enrolled- 25 -LRB103 04371 RPS 49377 b

1    existed at the time of the original application for the
2    license, would have warranted the Secretary in refusing
3    originally to issue the license; or
4        (3) that if a licensee is not an individual, any
5    ultimate equitable owner, officer, director, or member of
6    the licensed partnership, association, corporation, or
7    other entity has acted or failed to act in a way that would
8    be cause for suspending or revoking a license to that
9    party as an individual.
10    (b) No license shall be suspended or revoked, except as
11provided in this Section, nor shall any licensee be fined
12without notice of his or her right to a hearing as provided in
13Section 10-75.
14    (c) The Secretary, on good cause shown that an emergency
15exists, may suspend any license for a period not exceeding 180
16days, pending investigation.
17    (d) The provisions of subsection (d) of Section 5-35 shall
18not affect a licensee's civil or criminal liability for acts
19committed before surrender of a license.
20    (e) No revocation, suspension, or surrender of any license
21shall impair or affect the obligation of any preexisting
22lawful contract between the licensee and any person.
23    (f) Every license issued under this Act shall remain in
24force and effect until the license expires without renewal, is
25surrendered, is revoked, or is suspended in accordance with
26the provisions of this Act, but the Secretary shall have

 

 

HB0779 Enrolled- 26 -LRB103 04371 RPS 49377 b

1authority to reinstate a suspended license or to issue a new
2license to a licensee whose license has been revoked if no fact
3or condition then exists which would have warranted the
4Secretary in refusing originally to issue that license under
5this Act.
6    (g) Whenever the Secretary revokes or suspends a license
7issued pursuant to this Act or fines a licensee under this Act,
8he or she shall execute a written order to that effect. The
9Secretary shall post notice of the order on an agency website
10maintained by the Secretary or on the Nationwide Multistate
11Licensing System and Registry and shall serve a copy of the
12order upon the licensee. Any such order may be reviewed in the
13manner provided by Section 10-75.
14    (h) If the Secretary finds any person in violation of the
15grounds set forth in subsection (i), he or she may enter an
16order imposing one or more of the following penalties:
17        (1) revocation of license;
18        (2) suspension of a license subject to reinstatement
19    upon satisfying all reasonable conditions the Secretary
20    may specify;
21        (3) placement of the licensee or applicant on
22    probation for a period of time and subject to all
23    reasonable conditions as the Secretary may specify;
24        (4) issuance of a reprimand;
25        (5) imposition of a fine not to exceed $25,000 for
26    each count of separate offense; except that a fine may be

 

 

HB0779 Enrolled- 27 -LRB103 04371 RPS 49377 b

1    imposed not to exceed $75,000 for each separate count of
2    offense of paragraph (2) of subsection (i); or
3        (6) denial of a license.
4    (i) The following acts shall constitute grounds for which
5the disciplinary actions specified in subsection (h) may be
6taken:
7        (1) being convicted or found guilty, regardless of
8    pendency of an appeal, of a crime in any jurisdiction that
9    involves fraud, dishonest dealing, or any other act of
10    moral turpitude;
11        (2) fraud, misrepresentation, deceit, or negligence in
12    any pawn transaction;
13        (3) a material or intentional misstatement of fact on
14    an initial or renewal application;
15        (4) insolvency or filing under any provision of the
16    federal Bankruptcy Code as a debtor;
17        (5) failure to account or deliver to any person any
18    property, such as any money, fund, deposit, check, draft,
19    or other document or thing of value, that has come into his
20    or her hands and that is not his or her property or that he
21    or she is not in law or equity entitled to retain, under
22    the circumstances and at the time which has been agreed
23    upon or is required by law or, in the absence of a fixed
24    time, upon demand of the person entitled to such
25    accounting and delivery;
26        (6) failure to disburse funds in accordance with

 

 

HB0779 Enrolled- 28 -LRB103 04371 RPS 49377 b

1    agreements;
2        (7) having a license, or the equivalent, to practice
3    any profession or occupation revoked, suspended, or
4    otherwise acted against, including the denial of licensure
5    by a licensing authority of this State or another state,
6    territory, or country for fraud, dishonest dealing, or any
7    other act of moral turpitude;
8        (8) failure to comply with an order of the Secretary
9    or rule made or issued under the provisions of this Act;
10        (9) engaging in activities regulated by this Act
11    without a current, active license unless specifically
12    exempted by this Act;
13        (10) failure to pay in a timely manner any fee,
14    charge, or fine under this Act;
15        (11) failure to maintain, preserve, and keep available
16    for examination all books, accounts, or other documents
17    required by the provisions of this Act and the rules of the
18    Secretary;
19        (12) refusing, obstructing, evading, or unreasonably
20    delaying an investigation, information request, or
21    examination authorized under this Act, or refusing,
22    obstructing, evading, or unreasonably delaying compliance
23    with the Secretary's subpoena or subpoena duces tecum; and
24        (13) failure to comply with or a violation of any
25    provision of this Act.
26    (j) A licensee shall be subject to the disciplinary

 

 

HB0779 Enrolled- 29 -LRB103 04371 RPS 49377 b

1actions specified in this Act for violations of subsection (i)
2by any officer, director, shareholder, joint venture, partner,
3ultimate equitable owner, or employee of the licensee.
4    (k) A licensee shall be subject to suspension or
5revocation for unauthorized employee actions only if there is
6a pattern of repeated violations by employees or the licensee
7has knowledge of the violations or there is substantial harm
8to a consumer.
9    (l) Procedures for surrender of a license include the
10following:
11        (1) The Secretary may, after 10 days' notice by
12    certified mail to the licensee at the address set forth on
13    the license, stating the contemplated action and in
14    general the grounds for the contemplated action and the
15    date, time, and place of a hearing thereon, and after
16    providing the licensee with a reasonable opportunity to be
17    heard at the hearing before the action, fine such licensee
18    an amount not exceeding $25,000 per violation, or revoke
19    or suspend any license issued under this Act if he or she
20    finds that:
21            (A) the licensee has failed to comply with any
22        provision of this Act or any order, decision, finding,
23        rule, regulation, or direction of the Department or
24        Secretary lawfully made pursuant to the authority of
25        this Act; or
26            (B) any fact or condition exists that, if it had

 

 

HB0779 Enrolled- 30 -LRB103 04371 RPS 49377 b

1        existed at the time of the original application for
2        the license, clearly would have warranted the
3        Secretary in refusing to issue the license.
4        (2) Any licensee may submit an application to
5    surrender a license, but, upon the Secretary approving the
6    surrender, it shall not affect the licensee's civil or
7    criminal liability for acts committed before surrender or
8    entitle the licensee to a return of any part of the license
9    fee.
 
10    Section 10-35. Investigation of complaints. The Secretary
11shall maintain staff and facilities adequate to receive,
12record, and investigate complaints and inquiries made by any
13person concerning this Act and any licensees under this Act.
14Each licensee shall open its books, records, documents, and
15offices wherever situated to the Secretary or his or her
16appointees as needed to facilitate such investigations.
 
17    Section 10-40. Additional investigation and examination
18authority. In addition to any authority allowed under this
19Act, the Secretary shall have the authority to conduct
20investigations and examinations as follows:
21        (1) For purposes of initial licensing, license
22    renewal, license discipline, license conditioning, license
23    revocation or termination, or general or specific inquiry
24    or investigation to determine compliance with this Act,

 

 

HB0779 Enrolled- 31 -LRB103 04371 RPS 49377 b

1    the Secretary shall have the authority to access, receive,
2    and use any books, accounts, records, files, documents,
3    information, or evidence, including, but not limited to,
4    the following:
5            (A) criminal, civil, and administrative history
6        information, including nonconviction data as specified
7        in the Criminal Code of 2012;
8            (B) personal history and experience information,
9        including independent credit reports obtained from a
10        consumer reporting agency described in Section 603(p)
11        of the federal Fair Credit Reporting Act; and
12            (C) any other documents, information, or evidence
13        the Secretary deems relevant to the inquiry or
14        investigation, regardless of the location, possession,
15        control, or custody of the documents, information, or
16        evidence.
17        (2) For the purposes of investigating violations or
18    complaints arising under this Act or for the purposes of
19    examination, the Secretary may review, investigate, or
20    examine any licensee, individual, or person subject to
21    this Act as often as necessary in order to carry out the
22    purposes of this Act. The Secretary may direct, subpoena,
23    or order the attendance of and examine under oath or
24    affirmation all persons whose testimony may be required
25    about the pawn transactions or the business or subject
26    matter of any such examination or investigation, and may

 

 

HB0779 Enrolled- 32 -LRB103 04371 RPS 49377 b

1    direct, subpoena, or order the person to produce books,
2    accounts, records, files, and any other documents the
3    Secretary deems relevant to the inquiry.
4        (3) Each licensee, individual, or person subject to
5    this Act shall make available to the Secretary upon
6    request the books and records relating to the operations
7    of the licensee, individual, or person subject to this
8    Act. The Secretary shall have access to those books and
9    records and interview the officers, principals, employees,
10    independent contractors, agents, and customers of the
11    licensee, individual, or person subject to this Act
12    concerning their business.
13        (4) Each licensee, individual, or person subject to
14    this Act shall make or compile reports or prepare other
15    information as directed by the Secretary in order to carry
16    out the purposes of this Section, including, but not
17    limited to:
18            (A) accounting compilations;
19            (B) information lists and data concerning pawn
20        transactions in a format prescribed by the Secretary;
21        or
22            (C) other information deemed necessary to carry
23        out the purposes of this Section.
24        (5) In making any examination or investigation
25    authorized by this Act, the Secretary may control access
26    to any documents and records of the licensee or person

 

 

HB0779 Enrolled- 33 -LRB103 04371 RPS 49377 b

1    under examination or investigation. The Secretary may take
2    possession of the documents and records or place a person
3    in exclusive charge of the documents and records in the
4    place where they are usually kept. During the period of
5    control, no person shall remove or attempt to remove any
6    of the documents or records, except pursuant to a court
7    order or with the consent of the Secretary. Unless the
8    Secretary has reasonable grounds to believe the documents
9    or records of the licensee have been, or are at risk of
10    being altered or destroyed for purposes of concealing a
11    violation of this Act, the licensee or owner of the
12    documents and records shall have access to the documents
13    or records as necessary to conduct its ordinary business
14    affairs.
15        (6) In order to carry out the purposes of this
16    Section, the Secretary may:
17            (A) retain attorneys, accountants, or other
18        professionals and specialists as examiners, auditors,
19        or investigators to conduct or assist in the conduct
20        of examinations or investigations;
21            (B) enter into agreements or relationships with
22        other government officials or regulatory associations
23        in order to improve efficiencies and reduce regulatory
24        burden by sharing resources, standardized or uniform
25        methods or procedures, and documents, records,
26        information, or evidence obtained under this Section;

 

 

HB0779 Enrolled- 34 -LRB103 04371 RPS 49377 b

1            (C) use, hire, contract, or employ public or
2        privately available analytical systems, methods, or
3        software to examine or investigate the licensee,
4        individual, or person subject to this Act;
5            (D) accept and rely on examination or
6        investigation reports made by other government
7        officials, within or outside this State; or
8            (E) accept audit reports made by an independent
9        certified public accountant for the licensee,
10        individual, or person subject to this Act in the
11        course of that part of the examination covering the
12        same general subject matter as the audit and may
13        incorporate the audit report in the report of the
14        examination, report of investigation, or other writing
15        of the Secretary.
16        (7) The authority of this Section shall remain in
17    effect, whether such a licensee, individual, or person
18    subject to this Act acts or claims to act under any
19    licensing or registration law of this State or claims to
20    act without the authority.
21        (8) No licensee, individual, or person subject to
22    investigation or examination under this Section may
23    knowingly withhold, abstract, remove, mutilate, destroy,
24    or secrete any books, records, computer records, or other
25    information.
 

 

 

HB0779 Enrolled- 35 -LRB103 04371 RPS 49377 b

1    Section 10-45. Confidential information. In hearings
2conducted under this Act, information presented into evidence
3that was acquired by the licensee when serving any individual
4in connection with a pawn transaction, including all financial
5information of the individual, shall be deemed strictly
6confidential and shall be made available only as part of the
7record of a hearing under this Act or otherwise (i) when the
8record is required, in its entirety, for purposes of judicial
9review or (ii) upon the express written consent of the
10individual served, or in the case of his or her death or
11disability, the consent of his or her personal representative.
 
12    Section 10-50. Confidentiality.
13    (a) In order to promote more effective regulation and
14reduce regulatory burden through supervisory information
15sharing, except as otherwise provided in 12 U.S.C. Section
165111, the requirements under any federal law or State law
17regarding the privacy or confidentiality of any information or
18material provided to the Nationwide Multistate Licensing
19System and Registry, and any privilege arising under federal
20or State law, including the rules of any federal or State
21court, with respect to such information or material, shall
22continue to apply to information or material after the
23information or material has been disclosed to the Nationwide
24Multistate Licensing System and Registry. The information and
25material may be shared with all State and federal regulatory

 

 

HB0779 Enrolled- 36 -LRB103 04371 RPS 49377 b

1officials with pawnbroker industry oversight authority without
2the loss of privilege or the loss of confidentiality
3protections provided by federal law or State law.
4    (b) In order to promote more effective regulation and
5reduce regulatory burden through supervisory information
6sharing, the Secretary is authorized to enter agreements or
7sharing into arrangements with other governmental agencies,
8the Conference of State Bank Supervisors or other associations
9representing governmental agencies as established by rule,
10regulation, or order of the Secretary. The sharing of
11confidential supervisory information or any information or
12material described in subsection (a) pursuant to an agreement
13or sharing arrangement shall not result in the loss of
14privilege or the loss of confidentiality protections provided
15by federal law or State law.
16    (c) In order to promote more effective regulation and
17reduce regulatory burden through supervisory information
18sharing, information or material that is subject to a
19privilege or confidentiality under subsection (a) shall not be
20subject to the following:
21        (1) disclosure under any State law governing the
22    disclosure to the public of information held by an officer
23    or an agency of the State; or
24        (2) subpoena, discovery, or admission into evidence,
25    in any private civil action or administrative process,
26    unless with respect to any privilege held by the

 

 

HB0779 Enrolled- 37 -LRB103 04371 RPS 49377 b

1    Nationwide Multistate Licensing System and Registry with
2    respect to the information or material, the person to whom
3    such information or material pertains waives, in whole or
4    in part, in the discretion of that person, that privilege.
5    (d) In order to promote more effective regulation and
6reduce regulatory burden through supervisory information
7sharing, any other law relating to the disclosure of
8confidential supervisory information or any information or
9material described in subsection (a) that is inconsistent with
10subsection (a) shall be superseded by the requirements of this
11Section to the extent the other law provides less
12confidentiality or a weaker privilege.
 
13    Section 10-55. Reports of violations. Any person licensed
14under this Act or any other person may report to the Secretary
15any information to show that a person subject to this Act is or
16may be in violation of this Act. A licensee who files a report
17with the Department that another licensee is engaged in one or
18more violations pursuant to this Act shall not be the subject
19of disciplinary action by the Department, unless the
20Department determines, by a preponderance of the evidence
21available to the Department, that the reporting person
22knowingly or recklessly participated in the violation that was
23reported.
 
24    Section 10-60. Pawnbroker annual report.

 

 

HB0779 Enrolled- 38 -LRB103 04371 RPS 49377 b

1    (a) The Department shall, in conjunction with advice from
2a professional association that represents 50 or more
3licensees, issue an annual report, via an Internet-based
4program, of aggregate pawnbroker activity within 180 days
5after the beginning of the calendar year. The report shall
6contain at a minimum:
7        (1) The number of licensed pawnbrokers.
8        (2) The total dollar amount financed.
9        (3) The total number of pawns for each value threshold
10    set forth in subsection (c) of Section 15-10.
11        (4) The total dollar amount of extensions.
12        (5) The total number of extensions for each value
13    threshold set forth in subsection (c) of Section 15-10.
14        (6) The average pawn dollar amount for each value
15    threshold set forth in subsection (c) of Section 15-10.
16        (7) The average monthly finance charge for each value
17    threshold set forth in subsection (c) of Section 15-10.
18        (8) The percentage of pawns surrendered to law
19    enforcement.
20        (9) The percentage of total pawns surrendered to law
21    enforcement by dollar amount.
22        (10) The percentage of pawns redeemed.
23        (11) The percentage of pawns extended.
24        (12) The total number of pawnbroker employees.
25        (13) The total number of licensees reporting.
26        (14) The total number of complaints received and

 

 

HB0779 Enrolled- 39 -LRB103 04371 RPS 49377 b

1    resolved by the Department.
2        (15) The total number of defaulted pawn transactions
3    reported to a credit bureau.
4        (16) The total number of defaulted pawn transactions
5    sent to a collection agency.
6        (17) The total number of defaulted pawn transactions
7    resulting in wage garnishment or legal action to collect.
8        (18) The total number of pawn transactions reported to
9    law enforcement.
10    (b) The Secretary may retain qualified persons to prepare
11and report findings (1) identifying pawns and small dollar
12loans that are available to Illinois consumers, (2) collecting
13and analyzing pawns and loan-level data for small dollar
14loans, and (3) compiling aggregate data and trends for pawns
15and small dollar loans used by Illinois consumers. The
16Secretary shall make the report available to the Governor, the
17General Assembly, and the public.
18    In this subsection, "pawns and small dollar loans" means
19pawns and lending products with a value of $2,500 or less,
20including, but not limited to, pawns, consumer installment
21loans, and other extensions of credit, whether or not offered
22by entities chartered or licensed in Illinois.
 
23    Section 10-65. Responsible pawnbroker training; pawnbroker
24managers and employees.
25    (a) A person who manages or is an employee of a pawnbroker

 

 

HB0779 Enrolled- 40 -LRB103 04371 RPS 49377 b

1that provides pawnbroker services and related functions shall
2complete, within 90 days after commencing employment, a
3minimum of 4 hours of training, which may be provided in a
4classroom or seminar setting or via Internet-based online
5learning programs, such training shall be provided at the
6employer's expense and shall be provided by qualified vendor
7approved by the Secretary. The training subjects shall be
8established by rule, and may include the following:
9        (1) federal, State, and local laws, administrative
10    rules, and regulations that pertain to the business of
11    being a licensed pawnbroker under this Act;
12        (2) procedures for identifying possible fraudulent
13    transactions;
14        (3) anti-money laundering;
15        (4) store operations, maintenance of records,
16    inventory management, recording and reporting of serial
17    numbers;
18        (5) general product knowledge, including, but not
19    limited to, jewelry and firearms;
20        (6) identification, verification, and weighing of
21    precious metals;
22        (7) inspections by State and local licensing and law
23    enforcement authorities, including hold order procedures;
24        (8) the federal Military Lending Act;
25        (9) pawn forfeits; and
26        (10) security, risk, and crisis management.

 

 

HB0779 Enrolled- 41 -LRB103 04371 RPS 49377 b

1    (b) The training may be provided in a classroom or seminar
2setting or via Internet-based online learning programs, as
3established by rule. The substance of the training shall be
4related to the work performed by the registered employee.
5    (c) In addition to the training provided for in
6subsections (a), registered employees of a pawnbroker shall
7complete an additional 4 hours of refresher training on
8subjects to be determined by the employer each calendar year
9commencing with the calendar year following the employee's
10first employment anniversary date, which refresher training
11may be site-specific and may be conducted on the job.
12    (d) It is the responsibility of the pawnbroker or the
13Secretary-approved qualified vendor to certify, on a form
14prescribed by the Secretary, that the employee has
15successfully completed the basic and refresher training. The
16original form or a copy shall be a permanent record of training
17completed by the employee and shall be placed in the
18employee's file with the employer for the period the employee
19remains with the employer. The original form or a copy shall be
20given to the employee when his or her employment is
21terminated. Failure to return the original form or a copy to
22the employee is grounds for disciplinary action. The employee
23shall not be required to repeat the required training once the
24employee has been issued the form. An employer may provide or
25require additional training.
26    (e) It shall be the responsibility of the pawnbroker and

 

 

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1the Secretary-approved qualified training vendor to keep and
2maintain a personal log of all training hours earned along
3with sufficient documentation necessary for the Secretary to
4verify the annual training completed for at least 5 years. The
5personal training log and documentation shall be provided to
6the Secretary in the same manner as other documentation and
7records required under this Act.
8    (f) Notwithstanding any other professional license a
9pawnbroker holds under this Act, no more than 8 hours of annual
10training shall be required for any one year.
11    (g) The license of a pawnbroker whose managers or
12employees fail to comply with this Section may be suspended or
13revoked or may face other disciplinary action.
14    (h) The regulation of pawnbroker employee training is an
15exclusive power and function of the State. A home rule unit may
16not regulate pawnbroker employee training or require a
17pawnbroker that is licensed by the State under this Act, or its
18employees, to maintain licenses in addition to licensure under
19the Act, to operate. This subsection is a denial and
20limitation of home rule powers and functions under subsection
21(h) of Section 6 of Article VII of the Illinois Constitution.
22    (i) Persons seeking the Secretary's approval to offer the
23training required by subsection (a) may apply for such
24approval between August 1 and August 31 every 4 years in a
25manner prescribed by the Secretary.
26    (j) Persons seeking the Secretary's approval to offer the

 

 

HB0779 Enrolled- 43 -LRB103 04371 RPS 49377 b

1training required by subsection (a) shall submit a
2nonrefundable application fee of $2,000 or a fee set by rule,
3to be deposited into the Pawnbroker Regulation Fund. Any
4changes made to the training module shall be approved by the
5Secretary.
6    (k) The Secretary shall not unreasonably deny approval of
7a training module, whether in-person or online, that meets all
8the requirements of subsection (a). A denial of approval shall
9include a detailed description of the reasons for the denial.
10    (l) A person approved to provide the training required by
11subsection (a) shall submit an application for re-approval
12between August 1 and August 31 of each even-numbered year and
13include a nonrefundable application fee of $2,000 or a fee set
14by rule, to be deposited into the Pawnbroker Regulation Fund.
 
15    Section 10-70. Rules and regulations.
16    (a) In addition to such powers as may be prescribed by this
17Act, the Department is hereby authorized and empowered to
18adopt rules consistent with the purposes of this Act,
19including, but not limited to:
20        (1) rules in connection with the activities of
21    licensees as may be necessary and appropriate for the
22    protection of consumers in this State;
23        (2) rules as may be necessary and appropriate to
24    define improper or fraudulent business practices in
25    connection with the activities of licensees in operating

 

 

HB0779 Enrolled- 44 -LRB103 04371 RPS 49377 b

1    as a pawnbroker;
2        (3) rules that define the terms used in this Act and as
3    may be necessary and appropriate to interpret and
4    implement the provisions of this Act; and
5        (4) rules as may be necessary for the enforcement of
6    this Act.
7    (b) The Secretary is hereby authorized and empowered to
8make specific rulings, demands, and findings that he or she
9deems necessary for the proper conduct of the pawnbroker
10industry.
11    (c) A person or entity may make a written application to
12the Department for a written interpretation of this Act. The
13Department may then, in its sole discretion, choose to issue a
14written interpretation. To be valid, a written interpretation
15must be signed by the Secretary, or his or her designee, and
16the Department's general counsel or his or her designee. A
17written interpretation expires 2 years after the date that it
18was issued.
19    (d) No provision in this Act that imposes liability or
20establishes violations shall apply to any act taken by a
21person or entity in conformity with a written interpretation
22of this Act that is in effect at the time the act is taken,
23notwithstanding whether the written interpretation is later
24amended, rescinded, or determined by judicial or other
25authority to be invalid for any reason.
 

 

 

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1    Section 10-75. Appeal and review.
2    (a) Any person or entity affected by a decision of the
3Secretary under any provision of this Act may obtain review of
4that decision within the Department.
5    (b) The Department may, in accordance with the Illinois
6Administrative Procedure Act, adopt rules to provide for
7review within the Department of the Secretary's decisions
8affecting the rights of entities under this Act. The review
9shall provide for, at a minimum:
10        (1) appointment of a hearing officer other than a
11    regular employee of the Division of Banking;
12        (2) appropriate procedural rules, specific deadlines
13    for filings, and standards of evidence and of proof; and
14        (3) provision for apportioning costs among parties to
15    the appeal.
16    (c) All final agency determinations of appeals to
17decisions of the Secretary may be reviewed in accordance with
18and under the provisions of the Administrative Review Law.
19Appeals from all final orders and judgments entered by a court
20in review of any final administrative decision of the
21Secretary or of any final agency review of a decision of the
22Secretary may be taken as in other civil cases.
 
23    Section 10-80. Violations of this Act; Secretary's orders.
24    (a) If the Secretary finds, as the result of examination,
25investigation, or review of reports submitted by a licensee,

 

 

HB0779 Enrolled- 46 -LRB103 04371 RPS 49377 b

1that the business and affairs of a licensee are not being
2conducted in accordance with this Act, the Secretary shall
3notify the licensee of the correction necessary. If a licensee
4fails to correct such violations, the Secretary shall issue an
5order requiring immediate correction and compliance with this
6Act, specifying a reasonable date for performance.
7    (b) The Department may adopt rules to provide for an
8orderly and timely appeal of all orders within the Department.
9The rules may include provision for assessment of fees and
10costs.
 
11    Section 10-85. Collection of compensation. Unless exempt
12from licensure under this Act, no person engaged in or
13offering to engage in any act or service for which a license
14under this Act is required may bring or maintain any action in
15any court of this State to collect compensation for the
16performance of the licensable services without alleging and
17proving that he or she was the holder of a valid pawnbroker
18license under this Act at all times during the performance of
19those services.
 
20    Section 10-90. Injunction. The Secretary, through the
21Attorney General, may maintain an action in the name of the
22People of the State of Illinois and may apply for an injunction
23in the circuit court to enjoin a person from engaging in
24unlicensed pawnbroker activity, to restrain any person from

 

 

HB0779 Enrolled- 47 -LRB103 04371 RPS 49377 b

1violating or continuing to violate any of the provisions of
2this Act, or to file a complaint to take possession and control
3of a pawnshop for the purpose of examination, reorganization,
4or liquidation through receivership and to appoint a receiver,
5which may be the Secretary, a pawnshop, or another suitable
6person
 
7
Article 15. Pawn Customer Bill of Rights

 
8    Section 15-5. General provisions.
9    (a) It is unlawful for an individual or business entity to
10conduct business in this State using the word "pawn",
11"pawnshop", or "pawnbroker" in connection with the business or
12to transact business in this State in a manner that has a
13substantial likelihood of misleading the public by implying
14that the business is a pawnshop, without first obtaining a
15license from the Secretary. It shall be unlawful for any
16business to advertise in a pawnbroker category, digitally or
17in print without including that business's pawnbroker and
18Nationwide Multistate Licensing System and Registry license
19number.
20    (b) It is unlawful for an entity licensed under this Act to
21do any of the following:
22        (1) Engage, have engaged, or propose to engage in any
23    unlawful, unfair, deceptive, or abusive act or practice
24    with respect to financial products or services.

 

 

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1        (2) Offer or provide to a consumer any financial
2    product or service not in conformity with this Act or
3    otherwise commit any act or omission in violation of a
4    financial law.
5        (3) Fail or refuse, as required by this Act or any rule
6    or order issued by the Department hereunder, to do any of
7    the following:
8            (A) Permit the Department to access or copy
9        records.
10            (B) Establish or maintain records.
11            (C) Make reports or provide information to the
12        Department.
 
13    Section 15-10. Fees.
14    (a) It is unlawful for any pawnbroker to charge or collect
15a greater benefit or percentage upon money advanced, and for
16the use and forbearance thereof, than the amount specified in
17subsection (c). Nothing in this Section shall be construed to
18conflict with the law pertaining to usury and the person
19receiving money so advanced may hold the moneys to pay any fees
20in addition to interest.
21    (b) Each pawnbroker, when making a pawn under this
22Section, must disclose in printed form on the pawn contract
23the following information to the persons receiving the pawn:
24        (1) the amount of money advanced, which must be
25    designated as the amount pawned;

 

 

HB0779 Enrolled- 49 -LRB103 04371 RPS 49377 b

1        (2) the maturity date of the pawn, which must be at
2    least 30 days after the originating date of the pawn;
3        (3) the total pawn interest and service charge payable
4    on the maturity date, which must be designated as the
5    finance charge;
6        (4) the total of payments that must be paid to redeem
7    the pledged goods on the maturity date, which must be
8    designated as the total of payments; and
9        (5) the annual percentage rate, computed according to
10    the regulations adopted by the Consumer Financial
11    Protection Bureau under the federal Truth in Lending Act.
12    (c) Each pawnbroker may contract for and receive a monthly
13finance charge, including interest and fees not to exceed
14one-fifth of the pawn amount for pawns under $500; one-sixth
15of the pawn amount for pawns at or above $500 and less than
16$1,500; one-eighth of the pawn amount for pawns at or above
17$1,500 and less than $5,000; and one-twentieth of the pawn
18amount for pawns at or above $5,000, pursuant to Section
1915-30, for appraising, investigating title, storing, insuring
20the pledged property, making daily reports to local law
21enforcement including enhanced computerized reporting, and
22complying with regulatory requirements. Such fees, when made
23and collected, shall not be deemed interest for any purpose of
24law. A pawnbroker shall not require a customer to pay such fees
25by means of an electronic fund transfer, as that term is
26defined in Section 10 of the Electronic Fund Transfer Act,

 

 

HB0779 Enrolled- 50 -LRB103 04371 RPS 49377 b

1including through the use of an automated clearinghouse
2system.
3    (d) Notwithstanding any inconsistent provision of law, a
4pawn transaction made pursuant to this Act shall be exempt
5from the provisions of the Predatory Loan Prevention Act.
 
6    Section 15-15. Display of fee provision. Every pawnbroker
7shall at all times have and keep Section 15-10 printed in the
8English and Spanish languages and framed and posted in a
9prominent and conspicuous position in its place of business,
10so that the same shall be plainly legible and visible to all
11persons depositing or pledging property with such pawnbroker.
 
12    Section 15-20. Disclosure of article description and pawn
13terms.
14    (a) Every pawnbroker shall, at the time of making any
15advancement or pawn, deliver to the person pawning or pledging
16any property, a memorandum, contract, or note signed by the
17person pawning the property containing an accurate account and
18description, in the English language, of the following:
19        (1) All the goods, articles or other things pawned or
20    pledged.
21        (2) The amount of money and the time of pledging the
22    same.
23        (3) The rate of interest to be paid on the pawn.
24        (4) The name and residence of the person making the

 

 

HB0779 Enrolled- 51 -LRB103 04371 RPS 49377 b

1    pawn or pledge.
2        (5) The dollar amount of any fees as specified in
3    Section 15-10.
4        (6) A disclosure that by extending the pawn, the fees
5    may exceed the value of the item pawned.
6    (b) The Secretary may adopt rules prescribing the form and
7content of the disclosures required by subsection (a).
 
8    Section 15-25. Record requirements.
9    (a) Except in municipalities located in counties having
103,000,000 or more inhabitants, every pawnbroker shall keep a
11standard record book that has been approved by the sheriff of
12the county in which the pawnbroker does business. In
13municipalities in counties with 3,000,000 or more inhabitants,
14the record book shall be approved by the police department of
15the municipality in which the pawnbroker does business. At the
16time of each and every pawn or purchase, an accurate account
17and description, in the English language, of each of the items
18listed in subsection (a) of Section 15-20 shall be printed,
19typed, or written in ink in the record book. Such entry shall
20include the serial number or identification number of items
21received that bear such number. Except for items purchased
22from dealers possessing a federal employee identification
23number who have provided a receipt to the pawnbroker, every
24pawnbroker shall also record in his book, an accurate account
25and description, in the English language, of all goods,

 

 

HB0779 Enrolled- 52 -LRB103 04371 RPS 49377 b

1articles, and other things purchased or received for the
2purpose of resale or items pawned by the pawnbroker from any
3source, including other pawnshop locations owned by the same
4pawnbroker, not in the course of a pledge or pawn, the time of
5such purchase or receipt and the name and address of the person
6or business which sold or delivered such goods, articles, or
7other things to the pawnbroker. No entry in such book shall be
8erased, mutilated, or changed.
9    (b) Every pawnbroker shall require identification to be
10shown by each person selling or pawning any goods, articles,
11or other things to the pawnbroker. If the identification shown
12is a driver's license, State identification card, or consular
13identification card and contains a photograph of the person
14being identified, only one form of identification must be
15shown. If the identification shown is not a driver's license,
16State identification card, or consular identification card or
17does not contain a photograph, 2 forms of identification must
18be shown, and one of the 2 forms of identification must include
19the person's residence address. These forms of identification
20shall include, but not be limited to, any of the following:
21passport, driver's license, social security card, utility
22bill, employee or student identification card, credit card, or
23a civic, union, or professional association membership card.
24In addition, in a municipality with a population of 1,000,000
25or more inhabitants, if the customer does not have an
26identification issued by a governmental entity containing a

 

 

HB0779 Enrolled- 53 -LRB103 04371 RPS 49377 b

1photograph of the person being identified, the pawnbroker
2shall photograph the customer in color and record the
3customer's name, residence address, date of birth, gender,
4height, and weight along with the photograph.
5    (c) A county or municipality, including a home rule unit,
6may regulate a pawnbroker's identification requirements for
7persons pledging or pawning goods, articles, or other things
8to the pawnbroker in a manner that is not less restrictive than
9the regulation by this State of a pawnbroker's identification
10requirements for persons pledging or pawning goods, articles,
11or other things. A home rule unit may not regulate a
12pawnbroker's identification requirements for persons pledging
13or pawning goods, articles, or other things to the pawnbroker
14in a manner less restrictive than the regulation by this State
15of a pawnbroker's identification requirements for persons
16selling or pawning goods, articles, or other things. This
17Section is a limitation under subsection (i) of Section 6 of
18Article VII of the Illinois Constitution on the concurrent
19exercise by home rule units of the powers and functions
20exercised by this State.
21    (d) A pawnbroker may maintain the records required by
22subsection (a) in computer form if the computer form has been
23approved by the Secretary or his or her designee, the sheriff
24of the county in which the shop is located, and the police
25department of the municipality in which the shop is located.
26    (e) Records, including reports to the Secretary or his or

 

 

HB0779 Enrolled- 54 -LRB103 04371 RPS 49377 b

1her designee, maintained by pawnbrokers shall be confidential,
2and no disclosure of pawnbroker records shall be made, except
3disclosures authorized by this Act or ordered by a court of
4competent jurisdiction. No record transferred to a
5governmental official shall be improperly disclosed, however,
6use of those records as evidence of a felony or misdemeanor
7shall be a proper purpose.
8    (f) Pawnbrokers and their associations may lawfully give
9appropriate governmental agencies computer equipment for the
10purpose of transferring information pursuant to this Act.
 
11    Section 15-30. Replacement of articles or property;
12insurance.
13    (a) If any articles or property pledged are lost or
14rendered inoperable, the pawnbroker shall replace the articles
15or property with identical articles or property, except that
16if the pawnbroker cannot reasonably obtain identical articles
17or property, the pawnbroker shall replace the articles or
18property with like articles or property.
19    (b) No pawnbroker shall conduct business in this State,
20unless the pawnbroker maintains insurance coverage covering
21all hazards equal to at least 2 times the aggregate value of
22the outstanding pawns for items held in pawn. Such insurance
23shall be obtained from an insurance company authorized to do
24business in Illinois.
25    (c) The pawnbroker shall file a copy of proof of insurance

 

 

HB0779 Enrolled- 55 -LRB103 04371 RPS 49377 b

1coverage with the Secretary. A pawnbroker or an insurance
2company shall not cancel the insurance coverage, except upon
3notice to the Secretary by certified mail, return receipt
4requested. The cancellation is not effective until 30 days
5after the Secretary receives the notice.
 
6    Section 15-35. Minors. No pawnbroker shall purchase, take,
7or receive any pawn, any property of any kind from any minor
8who is under 18 years of age, or the ownership of which is in,
9or which is claimed by, any such minor, or which may be in the
10possession or under the control of any such minor.
 
11    Section 15-40. Intoxicated persons; persons convicted of
12theft. No pawnbroker shall knowingly or recklessly purchase or
13take any article in pawn or purchase from any person appearing
14to be intoxicated, nor from any person known to have been
15convicted of theft. A law enforcement officer may provide such
16criminal conviction information to a pawnbroker. Such
17information must be provided in writing.
 
18    Section 15-45. Altered property; serial number and
19manufacturer's identification number.
20    (a) No pawnbroker shall receive or purchase any article if
21the manufacturer's make, model, or serial number, personal
22identification number, or identifying marks engraved or etched
23upon an item of personal property has been removed, altered,

 

 

HB0779 Enrolled- 56 -LRB103 04371 RPS 49377 b

1or obliterated.
2    (b) The prohibition in subsection (a) does not apply if
3the article's manufacturer's make, model, or serial number,
4personal identification number, or identifying marks have been
5worn in the ordinary course of use. However, no article
6described in this subsection (b) shall be sold or transferred
7to another pawnshop location of such pawnbroker for a period
8of 15 days after the delivery of the copy and statement
9required by subsection (b) of Section 10-25 required to be
10delivered to the officer or officers named therein.
 
11    Section 15-50. Sale of property.
12    (a) No personal property pledged or received on deposit by
13any pawnbroker shall be permitted to be redeemed from such
14pawnbroker for a period of 48 hours after the delivery of the
15copy and statement required by subsection (b) of Section 10-25
16to be delivered to the officer or officers named therein.
17    (b) No personal property purchased by any pawnbroker shall
18be sold or removed from the place of business or transferred to
19another pawnshop location of such pawnbroker for a period of
2010 days after the delivery of the copy and statement required
21by subsection (b) of Section 10-25 to be delivered to the
22officer or officers named therein.
23    (c) If the pawner fails to repay or extend the pawn during
24the period specified on the pawn ticket, the pawnbroker shall
25automatically extend a grace period of 30 days after the

 

 

HB0779 Enrolled- 57 -LRB103 04371 RPS 49377 b

1default date on the pawn during which the pawnbroker shall not
2dispose of or sell the personal property pawned. The parties
3may agree to extend or renew a pawn upon terms agreed upon by
4the parties, if the terms comply with the requirements of this
5Act. Title to the pledged property transfers to the pawnbroker
6after the default date grace period expires or upon expiration
7of an agreed extension.
8    (d) A county or municipality, including a home rule unit,
9may regulate holding periods in a manner that is more
10restrictive than the regulation provided in this Section.
11    (e) A home rule unit may not regulate the holding periods
12in this Section in a manner less restrictive than the
13regulation by this State. This Section is a limitation under
14subsection (i) of Section 6 of Article VII of the Illinois
15Constitution on the concurrent exercise by home rule units of
16the powers and functions exercised by this State.
 
17    Section 15-55. Hold order.
18    (a) For the purposes of this Section, "hold order" means a
19written legal instrument issued to a pawnbroker by a law
20enforcement officer commissioned by the law enforcement agency
21of the municipality or county that licenses and regulates the
22pawnbroker, evidencing a criminal law enforcement
23investigation, and ordering the pawnbroker to retain physical
24possession of pawned goods in the possession of the pawnbroker
25or property purchased by and in the possession of the

 

 

HB0779 Enrolled- 58 -LRB103 04371 RPS 49377 b

1pawnbroker and to not return, sell, or otherwise dispose of
2such property as such property is believed to be
3misappropriated goods.
4    (b) Upon written notice from a law enforcement officer
5indicating that property in the possession of a pawnbroker and
6subject to a hold order is needed for the purpose of furthering
7a criminal investigation and prosecution, the pawnbroker shall
8release the property subject to the hold order to the custody
9of the law enforcement officer for such purpose and the law
10enforcement officer shall provide a written acknowledgment
11that the property has been released to the officer. The
12release of the property to the custody of the law enforcement
13officer shall not be considered a waiver or release of the
14pawnbroker's property rights or interest in the property. Upon
15completion of the criminal investigation, the property shall
16be returned to the pawnbroker who consented to its release;
17except that:
18        (1) if the criminal investigation took place within a
19    county or counties with a population of less than 300,000
20    and that investigation:
21            (A) has determined that the property is stolen
22        property,
23            (B) has determined that the fair market value of
24        the stolen property is $500 or less,
25            (C) has identified the rightful owner of the
26        stolen property, and

 

 

HB0779 Enrolled- 59 -LRB103 04371 RPS 49377 b

1            (D) contains a court-admissible sworn statement by
2        the rightful owner that they are the true owners of the
3        stolen property, then law enforcement shall return the
4        property to that owner without the payment of the
5        money advanced by the pawnbroker or any costs or
6        charges of any kind that the pawnbroker may have
7        placed upon the same; or
8        (2) if the criminal investigation took place within a
9    county or counties with a population of more than 300,000
10    and that investigation:
11            (A) has determined that the property is stolen
12        property,
13            (B) has determined that the then-fair market value
14        of the stolen property is $1,000 or less,
15            (C) has identified the rightful owner of the
16        stolen property, and
17            (D) contains a court-admissible sworn statement by
18        the rightful owner that they are the true owners of the
19        stolen property, then law enforcement shall return the
20        property to that owner without the payment of the
21        money advanced by the pawnbroker or any costs or
22        charges of any kind that the pawnbroker may have
23        placed upon the same.
24    (c) After the return of said property, the pawnbroker
25shall not be liable to any private person or government entity
26for any further claims on the returned property. Law

 

 

HB0779 Enrolled- 60 -LRB103 04371 RPS 49377 b

1enforcement shall provide all information related to such
2persons involved in the investigation to the pawnbroker,
3including the investigative report, without the need for a
4subpoena, court order, or further legal action of government
5filing. The hold order shall expire on the 120th day after it
6is issued, at which time the pawnbroker may exercise its
7rights under any applicable pawn ticket or extension. If the
8law enforcement officer has not completed the criminal
9investigation within 120 days after the issuance of the hold
10order, the officer shall immediately return any property in
11law enforcement custody to the pawnbroker or obtain and
12furnish to the pawnbroker a warrant for a maximum 120-day hold
13order extension and, as applicable, continued law enforcement
14custody of the property.
15    The pawnbroker shall not release or dispose of the
16property, except pursuant to a court order or the expiration
17of the holding period of the hold order, including all
18extensions.
19    In cases where criminal charges have been filed and the
20property may be needed as evidence, the prosecuting attorney
21shall notify the pawnbroker in writing. The notice shall
22contain the case number, the style of the case, and a
23description of the property. The pawnbroker shall hold the
24property until receiving notice of the disposition of the case
25from the prosecuting attorney. The prosecuting attorney shall
26notify the pawnbroker and claimant in writing within 15 days

 

 

HB0779 Enrolled- 61 -LRB103 04371 RPS 49377 b

1after the disposition of the case.
2    (d) A hold order, and a foregoing notice of criminal
3charges, must specify:
4        (1) the name and address of the pawnbroker;
5        (2) the law enforcement investigation number, the
6    name, title, and identification number of the law
7    enforcement officer placing the hold order or the court
8    placing the hold order;
9        (3) a complete description of the property to be held,
10    including model number and serial number if available, to
11    law enforcement;
12        (4) the name of the alleged owner or person reporting
13    the alleged misappropriated property, unless otherwise
14    prohibited by law;
15        (5) the mailing address of the pawnbroker where the
16    property is held; and
17        (6) the issuance and expiration date of the holding
18    period.
19    (e) The pawnbroker or the pawnbroker's representative must
20sign and date a copy of the hold order as evidence of receipt
21of the hold order and the beginning of the 120-day holding
22period.
 
23
Article 20. Consumer Fraud Protections

 
24    Section 20-5. Enforcement; Consumer Fraud and Deceptive

 

 

HB0779 Enrolled- 62 -LRB103 04371 RPS 49377 b

1Business Practices Act. The Attorney General may enforce a
2violation of Article 15 of this Act as an unlawful practice
3under the Consumer Fraud and Deceptive Business Practices Act.
 
4
Article 25. Transition provisions

 
5    Section 25-5. Savings provisions.
6    (a) This Act is intended to replace the Pawnbroker
7Regulation Act in all respects.
8    (b) Beginning on the effective date of this Act, the
9rights, powers, and duties exercised by the Department of
10Financial and Professional Regulation under the Pawnbroker
11Regulation Act shall continue to be vested in, to be the
12obligation of, and to be exercised by the Department of
13Financial and Professional Regulation under the provisions of
14this Act.
15    (c) This Act does not affect any act done, ratified, or
16cancelled, any right occurring or established, or any action
17or proceeding commenced in an administrative, civil, or
18criminal cause before the effective date of this Act by the
19Department of Financial and Professional Regulation under the
20Pawnbroker Regulation Act. Those actions or proceedings may be
21prosecuted and continued by the Department of Financial and
22Professional Regulation under this Act.
23    (d) This Act does not affect any license, certificate,
24permit, or other form of licensure issued by the Department of

 

 

HB0779 Enrolled- 63 -LRB103 04371 RPS 49377 b

1Financial and Professional Regulation under the Pawnbroker
2Regulation Act. All such licenses, certificates, permits, or
3other form of licensure shall continue to be valid under the
4terms and conditions of this Act.
5    (e) The rules adopted by the Department of Financial and
6Professional Regulation relating to the Pawnbroker Regulation
7Act, unless inconsistent with the provisions of this Act, are
8not affected by this Act, and on the effective date of this
9Act, those rules become rules under this Act.
10    (f) This Act does not affect any discipline, suspension,
11or termination that has occurred under the Pawnbroker
12Regulation Act or other predecessor Act. Any action for
13discipline, suspension, or termination instituted under the
14Pawnbroker Regulation Act shall be continued under this Act.
 
15
Article 90. Amendatory Provisions

 
16    Section 90-5. The Division of Banking Act is amended by
17changing Sections 2.5 and 5 as follows:
 
18    (20 ILCS 3205/2.5)
19    Sec. 2.5. Prohibited activities.
20    (a) For the purposes of this Section, "regulated entity"
21means any person, business, company, corporation, institution,
22or other entity who is subject to regulation by the Office of
23Banks and Real Estate under Sections 3 and 46 of the Illinois

 

 

HB0779 Enrolled- 64 -LRB103 04371 RPS 49377 b

1Banking Act, Section 1-5 of the Illinois Savings and Loan Act
2of 1985, Section 1004 of the Savings Bank Act, Section 1-3 of
3the Residential Mortgage License Act of 1987, Section 2-4 of
4the Corporate Fiduciary Act, Section 3.02 of the Illinois Bank
5Holding Company Act of 1957, the Savings and Loan Share and
6Account Act, Section 1.5 of the Pawnbroker Regulation Act of
72023, Section 3 of the Foreign Banking Office Act, or Section
830 of the Electronic Fund Transfer Act.
9    (b) The Commissioner and the deputy commissioners shall
10not be an officer, director, employee, or agent of a regulated
11entity or of a corporation or company that owns or controls a
12regulated entity.
13    The Commissioner and the deputy commissioners shall not
14own shares of stock or hold any other equity interest in a
15regulated entity or in a corporation or company that owns or
16controls a regulated entity. If the Commissioner or a deputy
17commissioner owns shares of stock or holds an equity interest
18in a regulated entity at the time of appointment, he or she
19shall dispose of such shares or other equity interest within
20120 days from the date of appointment.
21    The Commissioner and the deputy commissioners shall not
22directly or indirectly obtain a loan from a regulated entity
23or accept a gratuity from a regulated entity that is intended
24to influence the performance of official duties.
25    (c) Employees of the Office of Banks and Real Estate shall
26not be officers, directors, employees, or agents of a

 

 

HB0779 Enrolled- 65 -LRB103 04371 RPS 49377 b

1regulated entity or of a corporation or company that owns or
2controls a regulated entity.
3    Except as provided by standards which the Office of Banks
4and Real Estate may establish, employees of the Office of
5Banks and Real Estate shall not own shares of stock or hold any
6other equity interest in a regulated entity or in a
7corporation or company that owns or controls a regulated
8entity, or directly or indirectly obtain a loan from a
9regulated entity, or accept a gratuity from a regulated entity
10that is intended to influence the performance of official
11duties. However, in no case shall an employee of the Office of
12Banks and Real Estate participate in any manner in the
13examination or direct regulation of a regulated entity in
14which the employee owns shares of stock or holds any other
15equity interest, or which is servicing a loan to which the
16employee is an obligor.
17    (d) If the Commissioner, a deputy commissioner, or any
18employee of the Office of Banks and Real Estate properly
19obtains a loan or extension of credit from an entity that is
20not a regulated entity, and the loan or extension of credit is
21subsequently acquired by a regulated entity or the entity
22converts to become a regulated entity after the loan is made,
23such purchase by or conversion to a regulated entity shall not
24cause the loan or extension of credit to be deemed a violation
25of this Section.
26    Nothing in this Section shall be deemed to prevent the

 

 

HB0779 Enrolled- 66 -LRB103 04371 RPS 49377 b

1ownership of a checking account, a savings deposit account, a
2money market account, a certificate of deposit, a credit or
3debit card account, or shares in open-end investment companies
4registered with the Securities and Exchange Commission
5pursuant to the federal Investment Company Act of 1940 and the
6Securities Act of 1933 (commonly referred to as mutual or
7money market funds).
8    (e) No Commissioner, deputy commissioner, employee, or
9agent of the Office of Banks and Real Estate shall, either
10during or after the holding of his or her term of office or
11employment, disclose confidential information concerning any
12regulated entity or person except as authorized by law or
13prescribed by rule. "Confidential information", as used in
14this Section, means any information that the person or officer
15obtained during his or her term of office or employment that is
16not available from the Office of Banks and Real Estate
17pursuant to a request under the Freedom of Information Act.
18(Source: P.A. 97-492, eff. 1-1-12.)
 
19    (20 ILCS 3205/5)  (from Ch. 17, par. 455)
20    Sec. 5. Powers. In addition to all the other powers and
21duties provided by law, the Commissioner shall have the
22following powers:
23    (a) To exercise the rights, powers and duties formerly
24vested by law in the Director of Financial Institutions under
25the Illinois Banking Act.

 

 

HB0779 Enrolled- 67 -LRB103 04371 RPS 49377 b

1    (b) To exercise the rights, powers and duties formerly
2vested by law in the Department of Financial Institutions
3under "An act to provide for and regulate the administration
4of trusts by trust companies", approved June 15, 1887, as
5amended.
6    (c) To exercise the rights, powers and duties formerly
7vested by law in the Director of Financial Institutions under
8"An act authorizing foreign corporations, including banks and
9national banking associations domiciled in other states, to
10act in a fiduciary capacity in this state upon certain
11conditions herein set forth", approved July 13, 1953, as
12amended.
13    (c-5) To exercise all of the rights, powers, and duties
14granted to the Director or Secretary under the Illinois
15Banking Act, the Corporate Fiduciary Act, the Electronic Fund
16Transfer Act, the Illinois Bank Holding Company Act of 1957,
17the Savings Bank Act, the Illinois Savings and Loan Act of
181985, the Savings and Loan Share and Account Act, the
19Residential Mortgage License Act of 1987, and the Pawnbroker
20Regulation Act of 2023.
21    (c-15) To enter into cooperative agreements with
22appropriate federal and out-of-state state regulatory agencies
23to conduct and otherwise perform any examination of a
24regulated entity as authorized under the Illinois Banking Act,
25the Corporate Fiduciary Act, the Electronic Fund Transfer Act,
26the Illinois Bank Holding Company Act of 1957, the Savings

 

 

HB0779 Enrolled- 68 -LRB103 04371 RPS 49377 b

1Bank Act, the Illinois Savings and Loan Act of 1985, the
2Residential Mortgage License Act of 1987, and the Pawnbroker
3Regulation Act of 2023.
4    (d) Whenever the Commissioner is authorized or required by
5law to consider or to make findings regarding the character of
6incorporators, directors, management personnel, or other
7relevant individuals under the Illinois Banking Act, the
8Corporate Fiduciary Act, the Pawnbroker Regulation Act of
92023, or at other times as the Commissioner deems necessary
10for the purpose of carrying out the Commissioner's statutory
11powers and responsibilities, the Commissioner shall consider
12criminal history record information, including nonconviction
13information, pursuant to the Criminal Identification Act. The
14Commissioner shall, in the form and manner required by the
15Illinois State Police and the Federal Bureau of Investigation,
16cause to be conducted a criminal history record investigation
17to obtain information currently contained in the files of the
18Illinois State Police or the Federal Bureau of Investigation,
19provided that the Commissioner need not cause additional
20criminal history record investigations to be conducted on
21individuals for whom the Commissioner, a federal bank
22regulatory agency, or any other government agency has caused
23such investigations to have been conducted previously unless
24such additional investigations are otherwise required by law
25or unless the Commissioner deems such additional
26investigations to be necessary for the purposes of carrying

 

 

HB0779 Enrolled- 69 -LRB103 04371 RPS 49377 b

1out the Commissioner's statutory powers and responsibilities.
2The Illinois State Police shall provide, on the Commissioner's
3request, information concerning criminal charges and their
4disposition currently on file with respect to a relevant
5individual. Information obtained as a result of an
6investigation under this Section shall be used in determining
7eligibility to be an incorporator, director, management
8personnel, or other relevant individual in relation to a
9financial institution or other entity supervised by the
10Commissioner. Upon request and payment of fees in conformance
11with the requirements of Section 2605-400 of the Illinois
12State Police Law, the Illinois State Police is authorized to
13furnish, pursuant to positive identification, such information
14contained in State files as is necessary to fulfill the
15request.
16    (e) When issuing charters, permits, licenses, or other
17authorizations, the Commissioner may impose such terms and
18conditions on the issuance as he deems necessary or
19appropriate. Failure to abide by those terms and conditions
20may result in the revocation of the issuance, the imposition
21of corrective orders, or the imposition of civil money
22penalties.
23    (f) If the Commissioner has reasonable cause to believe
24that any entity that has not submitted an application for
25authorization or licensure is conducting any activity that
26would otherwise require authorization or licensure by the

 

 

HB0779 Enrolled- 70 -LRB103 04371 RPS 49377 b

1Commissioner, the Commissioner shall have the power to
2subpoena witnesses, to compel their attendance, to require the
3production of any relevant books, papers, accounts, and
4documents, and to conduct an examination of the entity in
5order to determine whether the entity is subject to
6authorization or licensure by the Commissioner or the
7Division. If the Secretary determines that the entity is
8subject to authorization or licensure by the Secretary, then
9the Secretary shall have the power to issue orders against or
10take any other action, including initiating a receivership
11against the unauthorized or unlicensed entity.
12    (g) The Commissioner may, through the Attorney General,
13request the circuit court of any county to issue an injunction
14to restrain any person from violating the provisions of any
15Act administered by the Commissioner.
16    (h) Whenever the Commissioner is authorized to take any
17action or required by law to consider or make findings, the
18Commissioner may delegate or appoint, in writing, an officer
19or employee of the Division to take that action or make that
20finding.
21    (i) Whenever the Secretary determines that it is in the
22public's interest, he or she may publish any cease and desist
23order or other enforcement action issued by the Division.
24(Source: P.A. 102-538, eff. 8-20-21.)
 
25    (205 ILCS 510/Act rep.)

 

 

HB0779 Enrolled- 71 -LRB103 04371 RPS 49377 b

1    Section 90-10. The Pawnbroker Regulation Act is repealed.
 
2    Section 90-15. The Uniform Commercial Code is amended by
3changing Section 9-201 as follows:
 
4    (810 ILCS 5/9-201)  (from Ch. 26, par. 9-201)
5    Sec. 9-201. General effectiveness of security agreement.
6    (a) General effectiveness. Except as otherwise provided in
7the Uniform Commercial Code, a security agreement is effective
8according to its terms between the parties, against purchasers
9of the collateral, and against creditors.
10    (b) Applicable consumer laws and other law. A transaction
11subject to this Article is subject to any applicable rule of
12law, statute, or regulation which establishes a different rule
13for consumers, including:
14        (1) the Retail Installment Sales Act;
15        (2) the Motor Vehicle Retail Installment Sales Act;
16        (3) Article II of Chapter 3 of the Illinois Vehicle
17    Code;
18        (4) Article IIIB of the Boat Registration and Safety
19    Act;
20        (5) the Pawnbroker Regulation Act of 2023;
21        (6) the Motor Vehicle Leasing Act;
22        (7) the Consumer Installment Loan Act; and
23        (8) the Consumer Deposit Security Act of 1987.
24    (c) Other applicable law controls. In case of conflict

 

 

HB0779 Enrolled- 72 -LRB103 04371 RPS 49377 b

1between this Article and a rule of law, statute, or regulation
2described in subsection (b), the rule of law, statute, or
3regulation controls. Failure to comply with a rule of law,
4statute, or regulation described in subsection (b) has only
5the effect such rule of law, statute, or regulation specifies.
6    (d) Further deference to other applicable law. This
7Article does not:
8        (1) validate any rate, charge, agreement, or practice
9    that violates a rule of law, statute, or regulation
10    described in subsection (b); or
11        (2) extend the application of the rule of law,
12    statute, or regulation to a transaction not otherwise
13    subject to it.
14(Source: P.A. 91-893, eff. 7-1-01.)
 
15    Section 90-20. The Consumer Fraud and Deceptive Business
16Practices Act is amended by adding Section 2BBBB as follows:
 
17    (815 ILCS 505/2BBBB new)
18    Sec. 2BBBB. Violations of the Pawnbroker Regulation Act of
192023. Any person who violates Article 15 of the Pawnbroker
20Regulation Act of 2023 commits an unlawful practice within the
21meaning of this Act.
 
22
Article 99. Severability; Effective Date

 

 

 

HB0779 Enrolled- 73 -LRB103 04371 RPS 49377 b

1    Section 99-97. Severability. The provisions of this Act
2are severable under Section 1.31 of the Statute on Statutes.
 
3    Section 99-99. Effective date. This Act takes effect upon
4becoming law.