Illinois General Assembly - Full Text of HB4746
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Full Text of HB4746  100th General Assembly




State of Illinois
2017 and 2018


Introduced , by Rep. Keith P. Sommer


205 ILCS 670/8  from Ch. 17, par. 5408
815 ILCS 122/3-5

    Amends the Consumer Installment Loan Act. Provides that the date of renewal for a license is December 1st (rather than December 15th). Amends the Payday Loan Reform Act. Provides that the date of renewal for a license is December 1 (rather than December 31). Effective immediately.

LRB100 16050 SMS 31169 b






HB4746LRB100 16050 SMS 31169 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Consumer Installment Loan Act is amended by
5changing Section 8 as follows:
6    (205 ILCS 670/8)  (from Ch. 17, par. 5408)
7    Sec. 8. Annual license fee - Expenses. Before the 1st 15th
8day of each December, a licensee must pay to the Director, and
9the Department must receive, the annual license fee required by
10Section 2 for the next succeeding calendar year. The license
11shall expire on the first of January unless the license fee has
12been paid prior thereto.
13    In addition to such license fee, the reasonable expense of
14any examination, investigation or custody by the Director under
15any provisions of this Act shall be borne by the licensee.
16    If a licensee fails to renew his or her license by the 31st
17day of December, it shall automatically expire and the licensee
18is not entitled to a hearing; however, the Director, in his or
19her discretion, may reinstate an expired license upon payment
20of the annual renewal fee and proof of good cause for failure
21to renew.
22(Source: P.A. 92-398, eff. 1-1-02.)



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1    Section 10. The Payday Loan Reform Act is amended by
2changing Section 3-5 as follows:
3    (815 ILCS 122/3-5)
4    Sec. 3-5. Licensure.
5    (a) A license to make a payday loan shall state the
6address, including city and state, at which the business is to
7be conducted and shall state fully the name of the licensee.
8The license shall be conspicuously posted in the place of
9business of the licensee and shall not be transferable or
11    (b) An application for a license shall be in writing and in
12a form prescribed by the Secretary. The Secretary may not issue
13a payday loan license unless and until the following findings
14are made:
15        (1) that the financial responsibility, experience,
16    character, and general fitness of the applicant are such as
17    to command the confidence of the public and to warrant the
18    belief that the business will be operated lawfully and
19    fairly and within the provisions and purposes of this Act;
20    and
21        (2) that the applicant has submitted such other
22    information as the Secretary may deem necessary.
23    (c) A license shall be issued for no longer than one year,
24and no renewal of a license may be provided if a licensee has
25substantially violated this Act and has not cured the violation



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1to the satisfaction of the Department.
2    (d) A licensee shall appoint, in writing, the Secretary as
3attorney-in-fact upon whom all lawful process against the
4licensee may be served with the same legal force and validity
5as if served on the licensee. A copy of the written
6appointment, duly certified, shall be filed in the office of
7the Secretary, and a copy thereof certified by the Secretary
8shall be sufficient evidence to subject a licensee to
9jurisdiction in a court of law. This appointment shall remain
10in effect while any liability remains outstanding in this State
11against the licensee. When summons is served upon the Secretary
12as attorney-in-fact for a licensee, the Secretary shall
13immediately notify the licensee by registered mail, enclosing
14the summons and specifying the hour and day of service.
15    (e) A licensee must pay an annual fee of $1,000. In
16addition to the license fee, the reasonable expense of any
17examination or hearing by the Secretary under any provisions of
18this Act shall be borne by the licensee. If a licensee fails to
19renew its license by December 1 31, its license shall
20automatically expire; however, the Secretary, in his or her
21discretion, may reinstate an expired license upon:
22        (1) payment of the annual fee within 30 days of the
23    date of expiration; and
24        (2) proof of good cause for failure to renew.
25    (f) Not more than one place of business shall be maintained
26under the same license, but the Secretary may issue more than



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1one license to the same licensee upon compliance with all the
2provisions of this Act governing issuance of a single license.
3The location, except those locations already in existence as of
4June 1, 2005, may not be within one mile of a horse race track
5subject to the Illinois Horse Racing Act of 1975, within one
6mile of a facility at which gambling is conducted under the
7Riverboat Gambling Act, within one mile of the location at
8which a riverboat subject to the Riverboat Gambling Act docks,
9or within one mile of any State of Illinois or United States
10military base or naval installation.
11    (g) No licensee shall conduct the business of making loans
12under this Act within any office, suite, room, or place of
13business in which (1) any loans are offered or made under the
14Consumer Installment Loan Act other than title secured loans as
15defined in subsection (a) of Section 15 of the Consumer
16Installment Loan Act and governed by Title 38, Section 110.330
17of the Illinois Administrative Code or (2) any other business
18is solicited or engaged in unless the other business is
19licensed by the Department or, in the opinion of the Secretary,
20the other business would not be contrary to the best interests
21of consumers and is authorized by the Secretary in writing.
22    (g-5) Notwithstanding subsection (g) of this Section, a
23licensee may obtain a license under the Consumer Installment
24Loan Act (CILA) for the exclusive purpose and use of making
25title secured loans, as defined in subsection (a) of Section 15
26of CILA and governed by Title 38, Section 110.300 of the



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1Illinois Administrative Code. A licensee may continue to
2service Consumer Installment Loan Act loans that were
3outstanding as of the effective date of this amendatory Act of
4the 96th General Assembly.
5    (h) The Secretary shall maintain a list of licensees that
6shall be available to interested consumers and lenders and the
7public. The Secretary shall maintain a toll-free number whereby
8consumers may obtain information about licensees. The
9Secretary shall also establish a complaint process under which
10an aggrieved consumer may file a complaint against a licensee
11or non-licensee who violates any provision of this Act.
12(Source: P.A. 96-936, eff. 3-21-11.)
13    Section 99. Effective date. This Act takes effect upon
14becoming law.