Illinois General Assembly - Full Text of SB1099
Illinois General Assembly

Previous General Assemblies

Full Text of SB1099  102nd General Assembly

SB1099eng 102ND GENERAL ASSEMBLY



 


 
SB1099 EngrossedLRB102 04923 BMS 14942 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 1. Short title. This Act may be cited as the
5Consumer Legal Funding Act.
 
6    Section 5. Definitions.
7    "Advertise" means publishing or disseminating any written,
8electronic, or printed communication, or any communication by
9means of recorded telephone messages or transmitted on radio,
10television, the Internet, or similar communications media,
11including film strips, motion pictures, and videos, published,
12disseminated, circulated, or placed before the public,
13directly or indirectly, for the purpose of inducing a consumer
14to enter into a consumer legal funding.
15    "Charges" means the fees, as set forth in Section 25, to be
16paid to the consumer legal funding company by or on behalf of
17the consumer above the funded amount provided by or on behalf
18of the company to an Illinois consumer pursuant to this Act.
19    "Consumer legal funding" or "funding" means a nonrecourse
20transaction in an amount that does not exceed $500,000 in
21which a company purchases and a consumer transfers to the
22company an unvested, contingent future interest in the
23potential net proceeds of a settlement or judgment obtained

 

 

SB1099 Engrossed- 2 -LRB102 04923 BMS 14942 b

1from the consumer's legal claim; if no proceeds are obtained
2from the consumer's legal claim, the consumer is not required
3to repay the company the consumer legal funding amount or
4charges.
5    "Consumer legal funding company" or "company" means a
6person or entity that enters into a consumer legal funding
7transaction with an Illinois consumer. "Consumer legal funding
8company" does not include:
9        (1) an immediate family member of the consumer;
10        (2) a bank, lender, financing entity, or other special
11    purpose entity:
12            (A) that provides financing to a consumer legal
13        funding company; or
14            (B) to which a consumer legal funding company
15        grants a security interest or transfers any rights or
16        interest in a consumer legal funding; or
17        (3) an attorney or accountant who provides services to
18    a consumer.
19    "Consumer" means a natural person who has a pending legal
20claim and who resides or is domiciled in Illinois.
21    "Director" means the Director of Financial Institutions.
22    "Division" means the Division of Financial Institutions of
23the Department of Financial and Professional Regulation.
24    "Funded amount" means the amount of moneys provided to, or
25on behalf of, the consumer in the consumer legal funding.
26"Funded amount" does not include charges.

 

 

SB1099 Engrossed- 3 -LRB102 04923 BMS 14942 b

1    "Funding date" means the date on which the funded amount
2is transferred to the consumer by the consumer legal funding
3company either by personal delivery; via wire, ACH, or other
4electronic means; or mailed by insured, certified, or
5registered United States mail.
6    "Immediate family member" means a parent; sibling; child
7by blood, adoption, or marriage; spouse; grandparent; or
8grandchild.
9    "Legal claim" means a bona fide civil claim or cause of
10action.
11    "Resolution amount" means the funded amount plus the
12agreed-upon charges that are delivered to the consumer legal
13funding company on the resolution date.
14    "Resolution date" means the date the resolution amount is
15delivered to the consumer legal funding company.
 
16    Section 10. Contract requirements; right of rescission.
17    (a) All consumer legal fundings shall meet the following
18requirements:
19        (1) the contract shall be completely filled in when
20    presented to the consumer for signature;
21        (2) the contract shall contain, in bold and boxed
22    type, a right of rescission, allowing the consumer to
23    cancel the contract without penalty or further obligation
24    if, within 14 business days after the funding date, the
25    consumer either:

 

 

SB1099 Engrossed- 4 -LRB102 04923 BMS 14942 b

1            (A) returns to the consumer legal funding company
2        the full amount of the disbursed funds by delivering
3        the company's uncashed check to the company's office
4        in person; or
5            (B) mails, by insured, certified, or registered
6        United States mail, to the address specified in the
7        contract, a notice of cancellation and includes in the
8        mailing a return of the full amount of disbursed funds
9        in the form of the company's uncashed check or a
10        registered or certified check or money order; and
11        (3) the contract shall contain the initials of the
12    consumer on each page.
13    (b) The contract shall contain a written acknowledgment by
14the attorney retained by the consumer in the legal claim that
15attests to the following:
16        (1) to the best of the attorney's knowledge, all the
17    costs and charges relating to the consumer legal funding
18    have been disclosed to the consumer;
19        (2) the attorney is being paid on a contingency basis
20    pursuant to a written fee agreement;
21        (3) all proceeds of the legal claim will be disbursed
22    via either the trust account of the attorney or a
23    settlement fund established to receive the proceeds of the
24    legal claim on behalf of the consumer;
25        (4) the attorney is following the written instructions
26    of the consumer with regard to the consumer legal funding;

 

 

SB1099 Engrossed- 5 -LRB102 04923 BMS 14942 b

1    and
2        (5) the attorney has not received a referral fee or
3    other consideration from the consumer legal funding
4    company in connection with the consumer legal funding, nor
5    will the attorney receive such fee or other consideration
6    in the future.
7    (c) If the acknowledgment required in subsection (b) is
8not completed by the attorney retained by the consumer in the
9legal claim, the contract shall be null and void. The contract
10remains valid and enforceable if the consumer terminates the
11initial attorney or retains a new attorney with respect to the
12legal claim.
 
13    Section 15. Consumer legal funding company prohibitions. A
14consumer legal funding company shall not:
15        (1) pay or offer to pay commissions, referral fees, or
16    other forms of consideration to any attorney, law firm,
17    medical provider, chiropractic physician, or physical
18    therapist or any of their employees for referring a
19    consumer to the company;
20        (2) accept any commissions, referral fees, rebates, or
21    other forms of consideration from an attorney, law firm,
22    medical provider, chiropractor, or physical therapist or
23    any of their employees;
24        (3) intentionally advertise materially false or
25    misleading information regarding its products or services;

 

 

SB1099 Engrossed- 6 -LRB102 04923 BMS 14942 b

1        (4) refer, in furtherance of an initial consumer legal
2    funding, a customer or potential customer to a specific
3    attorney, law firm, medical provider, chiropractor, or
4    physical therapist or any of their employees; however, if
5    a customer needs legal representation, the company may
6    refer the customer to a local or State bar association
7    referral service;
8        (5) fail to supply a copy of the executed contract to
9    the attorney for the consumer;
10        (6) knowingly provide funding to a consumer who has
11    previously assigned or sold a portion of the consumer's
12    right to proceeds from his or her legal claim without
13    first making payment to or purchasing a prior unsatisfied
14    consumer legal funding company's entire funded amount and
15    contracted charges, unless a lesser amount is otherwise
16    agreed to in writing by the consumer legal funding
17    companies, except that multiple companies may agree to
18    contemporaneously provide funding to a consumer if the
19    consumer and the consumer's attorney consent to the
20    arrangement in writing;
21        (7) receive any right to nor make any decisions with
22    respect to the conduct of the underlying legal claim or
23    any settlement or resolution of the legal claim; the right
24    to make such decisions shall remain solely with the
25    consumer and the attorney in the legal claim; or
26        (8) knowingly pay or offer to pay for court costs,

 

 

SB1099 Engrossed- 7 -LRB102 04923 BMS 14942 b

1    filing fees, or attorney's fees either during or after the
2    resolution of the legal claim using funds from the
3    consumer legal funding transaction.
 
4    Section 20. Satisfaction of the contract. A consumer legal
5funding company shall require the resolution amount to be set
6as a predetermined amount, based upon intervals of time from
7the date of origination of the funding through the date of
8resolution of the legal claim, and not be determined as a
9percentage of the recovery from the legal claim.
 
10    Section 25. Fees.
11    (a) The fee charged by a consumer legal funding company to
12the consumer shall be calculated as not more than 18% of the
13funded amount, assessed on the outset of every 6 months.
14    (b) In addition, a consumer legal funding company may
15charge a document preparation fee not to exceed $75, which may
16be deducted from the funded amount. This fee is to be used to
17defray the ordinary cost of opening, administering, and
18terminating a consumer legal funding.
19    (c) A consumer legal funding company shall not collect any
20additional fees unless otherwise specified in this Act.
21    (d) No fees shall extend past 42 months after the funding
22date.
 
23    Section 30. Disclosures. All consumer legal funding

 

 

SB1099 Engrossed- 8 -LRB102 04923 BMS 14942 b

1contracts shall contain the disclosures specified in this
2Section, which shall constitute material terms of the
3contract. Unless otherwise specified, the disclosures shall be
4typed in at least 12-point bold-type font and be placed
5clearly and conspicuously within the contract as follows:
6        (1) On the front page under appropriate headings,
7    language specifying:
8            (A) the funded amount to be paid to the consumer by
9        the consumer legal funding company;
10            (B) an itemization of one-time charges;
11            (C) the total amount to be paid by the consumer to
12        the company, including the funded amount and all
13        charges; and
14            (D) a payment schedule to include the resolution
15        amount, listing dates, and the amount due at the end of
16        each 6-month period from the funding date, until the
17        date the maximum amount due to the company by the
18        consumer to satisfy the amount due pursuant to the
19        contract.
20        (2) Pursuant to the provisions set forth in paragraph
21    (2) of subsection (a) of Section 10, within the body of the
22    contract: "Consumer's Right to Cancellation: You may
23    cancel this contract without penalty or further obligation
24    within 14 business days after the funding date if you
25    either:
26            (A) return to the consumer legal funding company

 

 

SB1099 Engrossed- 9 -LRB102 04923 BMS 14942 b

1        the full amount of the disbursed funds by delivering
2        the company's uncashed check to the company's office
3        in person; or
4            (B) mail by insured, certified, or registered
5        United States mail, to the company at the address
6        specified in the contract, a notice of cancellation
7        and include in such mailing a return of the full amount
8        of disbursed funds in the form of the company's
9        uncashed check or a registered or certified check or
10        money order."
11        (3) Within the body of the contract: "The consumer
12    legal funding company shall have no role in deciding
13    whether, when, and how much the legal claim is settled
14    for, however, the consumer and consumer's attorney must
15    notify the company of the outcome of the legal claim by
16    settlement or adjudication before the resolution date. The
17    company may seek updated information about the status of
18    the legal claim but in no event shall the company
19    interfere with the independent professional judgment of
20    the attorney in the handling of the legal claim or any
21    settlement thereof."
22        (4) Within the body of the contract, in all capital
23    letters in at least 12-point bold-type font contained
24    within a box: "THE FUNDED AMOUNT AND AGREED-UPON CHARGES
25    SHALL BE PAID ONLY FROM THE PROCEEDS OF YOUR LEGAL CLAIM,
26    AND SHALL BE PAID ONLY TO THE EXTENT THAT THERE ARE

 

 

SB1099 Engrossed- 10 -LRB102 04923 BMS 14942 b

1    AVAILABLE PROCEEDS FROM YOUR LEGAL CLAIM. YOU WILL NOT OWE
2    [INSERT NAME OF THE CONSUMER LEGAL FUNDING COMPANY]
3    ANYTHING IF THERE ARE NO PROCEEDS FROM YOUR LEGAL CLAIM,
4    UNLESS YOU OR YOUR ATTORNEY HAVE VIOLATED ANY MATERIAL
5    TERM OF THIS CONTRACT OR YOU HAVE COMMITTED FRAUD AGAINST
6    THE CONSUMER LEGAL FUNDING COMPANY."
7        (5) Located immediately above the place on the
8    contract where the consumer's signature is required, in
9    12-point font: "Do not sign this contract before you read
10    it completely or if it contains any blank spaces. You are
11    entitled to a completely filled-in copy of the contract.
12    Before you sign this contract, you should obtain the
13    advice of an attorney. Depending on the circumstances, you
14    may want to consult a tax, public or private benefits
15    planning, or financial professional. You acknowledge that
16    your attorney in the legal claim has provided no tax,
17    public or private benefit planning, or financial advice
18    regarding this transaction."
19        (6) The consumer legal funding company shall provide
20    the consumer with information on accessing a financial
21    coaching program no later than the funding date.
 
22    Section 35. Violations.
23    (a) Nothing in this Act shall be construed to restrict the
24exercise of powers or the performance of the duties of the
25Illinois Attorney General that he or she is authorized to

 

 

SB1099 Engrossed- 11 -LRB102 04923 BMS 14942 b

1exercise or perform by law.
2    (b) If a court of competent jurisdiction determines that a
3consumer legal funding company has intentionally violated the
4provisions of this Act with regard to a specific consumer
5legal funding, the consumer legal funding company shall only
6be entitled to recover the funded amount provided to the
7consumer in that specific consumer legal funding and shall not
8be entitled to any additional charges.
 
9    Section 40. Assignability; liens.
10    (a) The contingent right to receive an amount of the
11potential proceeds of a legal claim is assignable by a
12consumer.
13    (b) Only liens related to the legal claim, including
14attorney's liens, Medicare, or other statutory liens, shall
15take priority over any lien of the consumer legal funding
16company. All other liens shall take priority by normal
17operation of law.
18    (c) A consumer legal funding transaction does not
19constitute an assignment of a personal injury claim or chose
20in action.
21    (d) A consumer legal funding transaction does not
22constitute the assignment of any present right; the
23transaction constitutes the transfer of an unvested,
24contingent future interest in an amount of the potential
25proceeds of a legal claim or cause of action.
 

 

 

SB1099 Engrossed- 12 -LRB102 04923 BMS 14942 b

1    Section 45. Attorney prohibitions. An attorney or law firm
2retained by the consumer in the legal claim shall not have a
3financial interest in the consumer legal funding company
4offering consumer legal funding to that consumer.
5Additionally, any attorney who has referred the consumer to
6his or her retained attorney shall not have a financial
7interest in the consumer legal funding company offering
8consumer legal funding to that consumer.
 
9    Section 50. Effect of communication on privileges. No
10communication between the consumer's attorney in the legal
11claim and the consumer legal funding company as it pertains to
12the consumer legal funding shall limit, waive, or abrogate the
13scope or nature of any statutory or common law privilege,
14including the work product doctrine and the attorney-client
15privilege.
 
16    Section 55. Application; fees; positive net worth; new
17funding application.
18    (a) An application for a consumer legal funding license
19shall be in writing and in the form prescribed by the Director.
20An applicant at the time of making such application shall pay
21to the Director the sum of $300 as an application fee and the
22additional sum of $450 as an annual license fee, for a period
23terminating on the last day of the current calendar year; if

 

 

SB1099 Engrossed- 13 -LRB102 04923 BMS 14942 b

1the application is filed after June 30 in any year, the license
2fee shall be one-half of the annual license fee for such year.
3    (b) Before the consumer legal funding license is granted,
4an applicant shall prove in a form satisfactory to the
5Director that the applicant has and will maintain a positive
6net worth of a minimum of $30,000. Every applicant and
7licensee shall maintain a surety bond in the principal sum of
8$25,000 issued by a bonding company authorized to do business
9in this State and that shall be approved by the Director. The
10surety bond shall run to the Director and shall be for the
11benefit of any consumer who incurs damages as a result of any
12violation of this Act or rules adopted pursuant to this Act by
13a licensee. If the Director finds at any time that a bond is of
14insufficient size, is insecure, is exhausted, or is otherwise
15doubtful, an additional bond in such amount as determined by
16the Director shall be filed by the licensee within 30 days
17after written demand therefor by the Director. As used in this
18subsection, "net worth" means total assets minus total
19liabilities.
20    (c) A company may not engage in the business of consumer
21legal funding in this State until it has received a consumer
22legal funding license from the Division pursuant to this Act,
23except any company that has a license in good standing under
24the Consumer Installment Loan Act as of the effective date of
25this Act shall be entitled to engage in consumer legal
26fundings under the terms of this Act so long as that company

 

 

SB1099 Engrossed- 14 -LRB102 04923 BMS 14942 b

1files an application for a consumer legal funding license
2within 60 days after the Division issuing forms for the filing
3of such an application until the Division fully rules on the
4application and either approves or denies the application for
5a funding license.
 
6    Section 60. Appointment of attorney-in-fact for service of
7process. Every consumer legal funding licensee shall appoint,
8in writing, the Director and his or her successors in office or
9any official who shall be charged with the administration of
10this Act as attorney-in-fact upon whom all lawful process
11against the licensee may be served with the same legal force
12and validity as if served on such licensee. A copy of such
13written appointment, duly certified, shall be filed in the
14office of the Director, and a copy of the written appointment
15certified by him or her shall be sufficient evidence. This
16appointment shall remain in effect while any liability remains
17outstanding in this State against the licensee. When summons
18is served upon the Director as attorney-in-fact for such
19licensee, the Director shall immediately notify the licensee
20by registered mail, enclosing the summons and specifying the
21hour and day of service.
 
22    Section 65. Investigation to determine whether to issue a
23consumer legal funding license. Upon the filing of an
24application and the payment of the fee, the Director shall

 

 

SB1099 Engrossed- 15 -LRB102 04923 BMS 14942 b

1investigate to determine:
2        (1) that the reputation of the applicant, including
3    the reputation of the managers of a limited liability
4    company, partners, owners, officers, or directors of the
5    applicant, is such as to warrant belief that the business
6    will be operated honestly and fairly within the purposes
7    of this Act; and
8        (2) that the applicant meets the positive net worth
9    requirement set forth in Section 55.
10    Unless the Director finds that the applicant meets these
11requirements, he or she shall not issue a consumer legal
12funding license and shall notify the applicant of the denial
13and return to the applicant the sum paid by the applicant as a
14license fee, but shall retain the $300 application fee. The
15Director shall approve or deny every application for a license
16within 60 days from the filing of the application with the fee.
 
17    Section 70. License. The license shall state the address,
18including city and State, at which the business is to be
19conducted and shall state fully the name of the licensee. The
20license shall be conspicuously posted in the place of business
21of the licensee and shall not be transferable or assignable.
 
22    Section 75. More than one license to same licensee;
23changing place of business.
24    (a) Not more than one place of business shall be

 

 

SB1099 Engrossed- 16 -LRB102 04923 BMS 14942 b

1maintained under the same license, but the Director may issue
2more than one license to the same licensee upon compliance
3with all the provisions of this Act governing an original
4issuance of a license.
5    (b) Whenever a licensee changes his or her place of
6business to a location other than that set forth in his or her
7license, he or she shall give written notice of the change of
8place of business to the Director at least 10 days before the
9relocation. However, if the new location is in excess of 15
10miles from the previous location, the licensee shall obtain
11written approval from the Director before the relocation.
 
12    Section 80. Annual license fee; expenses; license
13expiration and reinstatement.
14    (a) Before December 1 of each year, a licensee shall pay to
15the Director and the Division must receive the annual license
16fee required under Section 55 for the next succeeding calendar
17year. The license shall expire on January 1 of the following
18year unless the license fee has been paid before that date.
19    (b) In addition to the annual license fee, the reasonable
20expense of any examination, investigation, or custody by the
21Director under any provision of this Act shall be borne by the
22licensee.
23    (c) If a licensee fails to renew his or her license by
24December 31, it shall automatically expire and the licensee is
25not entitled to a hearing; however, the Director, in his or her

 

 

SB1099 Engrossed- 17 -LRB102 04923 BMS 14942 b

1discretion, may reinstate an expired license upon payment of
2the annual renewal fee and proof of good cause for failure to
3renew.
 
4    Section 85. Fines; suspension or revocation of license.
5    (a) The Director may, after 10 days' notice by registered
6mail to the licensee at the address set forth in the license
7stating the contemplated action and in general the grounds
8therefor, fine such licensee an amount not exceeding $10,000
9per violation or revoke or suspend any license issued under
10this Act if he or she finds that:
11        (1) the licensee has failed to comply with any
12    provision of this Act or any order, decision, finding,
13    rule, regulation, or direction of the Director lawfully
14    made pursuant to the authority of this Act; or
15        (2) any fact or condition exists that, if it had
16    existed at the time of the original application for the
17    license, clearly would have warranted the Director in
18    refusing to issue the license.
19    (b) The Director may fine, suspend, or revoke only the
20particular license with respect to which grounds for the fine,
21revocation, or suspension occur or exist, but if the Director
22finds that grounds for revocation are of general application
23to all offices or to more than one office of the licensee, the
24Director shall fine, suspend, or revoke every license to which
25such grounds apply.

 

 

SB1099 Engrossed- 18 -LRB102 04923 BMS 14942 b

1    (c) No revocation, suspension, or surrender of any license
2shall impair or affect the obligation of any preexisting
3lawful contract between the licensee and any obligor.
4    (d) The Director may issue a new license to a licensee
5whose license has been revoked when facts or conditions that
6clearly would have warranted the Director in refusing
7originally to issue the license no longer exist.
8    (e) In every case in which a license is suspended or
9revoked or an application for a license or renewal of a license
10is denied, the Director shall serve the licensee with notice
11of his or her action, including a statement of the reasons for
12his or her actions, either personally or by certified mail,
13return receipt requested. Service by certified mail shall be
14deemed completed when the notice is deposited in the United
15States mail.
16    (f) An order assessing a fine, an order revoking or
17suspending a license, or an order denying renewal of a license
18shall take effect upon service of the order unless the
19licensee requests a hearing in writing within 10 days after
20the date of service. If a hearing is requested, the order shall
21be stayed until a final administrative order is entered.
22    (g) If the licensee requests a hearing, the Director shall
23schedule a hearing within 30 days after the request for a
24hearing unless otherwise agreed to by the parties.
25    (h) The hearing shall be held at the time and place
26designated by the Director. The Director and any

 

 

SB1099 Engrossed- 19 -LRB102 04923 BMS 14942 b

1administrative law judge designated by him or her shall have
2the power to administer oaths and affirmations, subpoena
3witnesses and compel their attendance, take evidence, and
4require the production of books, papers, correspondence, and
5other records or information that he or she considers relevant
6or material to the inquiry.
7    (i) The costs for the administrative hearing shall be set
8by rule.
9    (j) The Division shall have the authority to adopt rules
10for the administration of this Section.
11    (k) The Division shall establish by rule and publish a
12schedule of fines that are reasonably tailored to ensure
13compliance with the provisions of this Act and which include
14remedial measures intended to improve licensee compliance. The
15Division shall also set forth the standards and procedures to
16be used in imposing any such fines and remedies by rule.
 
17    Section 90. Closing of business; surrender of license. At
18least 10 days before a licensee ceases operations, closes
19business, or files for bankruptcy:
20        (1) The licensee shall notify the Division of its
21    action in writing.
22        (2) With the exception of filing for bankruptcy, the
23    licensee shall surrender its license to the Director for
24    cancellation; the surrender of the license shall not
25    affect the licensee's civil or criminal liability for acts

 

 

SB1099 Engrossed- 20 -LRB102 04923 BMS 14942 b

1    committed before surrender or entitle the licensee to a
2    return of any part of the annual license fee.
3        (3) The licensee shall notify the Division of the
4    location where the books, accounts, contracts, and records
5    will be maintained and the procedure to ensure prompt
6    return of contracts, titles, and releases to the
7    customers.
8        (4) The accounts, books, records, and contracts shall
9    be maintained and serviced by the licensee or another
10    licensee under this Act or an entity exempt from licensure
11    under this Act.
12        (5) The Division shall have the authority to conduct
13    examinations of the books, records, and funding documents
14    at any time after surrender of the license, filing of
15    bankruptcy, or the cessation of operations.
 
16    Section 95. Investigation of conduct of business. For the
17purpose of discovering violations of this Act or securing
18information lawfully required by it, the Director may at any
19time investigate the fundings and business and examine the
20books, accounts, records, and files used therein, of every
21licensee and of every person, partnership, association,
22limited liability company, and corporation engaged in the
23business described in Section 5, whether such person,
24partnership, association, limited liability company, or
25corporation shall act or claim to act as principal or agent or

 

 

SB1099 Engrossed- 21 -LRB102 04923 BMS 14942 b

1within or without the authority of this Act. For such purpose
2the Director shall have free access to the offices and places
3of business, books, accounts, papers, records, files, safes,
4and vaults of such persons, partnerships, associations,
5limited liability companies, and corporations. The Director
6may require the attendance of and examine under oath all
7persons whose testimony he or she may require relative to such
8fundings or such business, and in such cases the Director
9shall have power to administer oaths to all persons called as
10witnesses, and the Director may conduct such examinations.
11    The Director shall make an examination of the affairs,
12business, office, and records of each licensee at least once
13each year. The Division shall by rule and regulation set the
14fee to be charged for each examination day, including travel
15expenses for out-of-state licensed locations. The fee shall
16reasonably reflect actual costs. The Director shall also have
17authority to examine the books and records of any business
18made by a former licensee which is being liquidated, as the
19Director deems necessary, and may charge the examination fees
20otherwise required for licensees.
 
21    Section 100. Books and records; reports.
22    (a) Every licensee shall retain and use in his or her
23business or at another location approved by the Director such
24records as are required by the Director to enable the Director
25to determine whether the licensee is complying with the

 

 

SB1099 Engrossed- 22 -LRB102 04923 BMS 14942 b

1provisions of this Act and the rules adopted pursuant to this
2Act. Every licensee shall preserve the records of any funding
3for at least 2 years after making the final entry for such
4funding. Accounting systems maintained in whole or in part by
5mechanical or electronic data processing methods that provide
6information equivalent to that otherwise required and that
7follow generally accepted accounting principles are acceptable
8for that purpose if approved by the Director in writing.
9    (b) Each licensee shall annually, on or before March 1,
10file a report with the Director giving such relevant
11information as the Director may reasonably require concerning
12the business and operations during the preceding calendar year
13of each licensed place of business conducted by the licensee.
14The report must be received by the Division on or before March
151. The report shall be made under oath and in a form prescribed
16by the Director. Whenever a licensee operates 2 or more
17licensed offices or whenever 2 or more affiliated licensees
18operate licensed offices, a composite report of such group of
19licensed offices may be filed instead of individual reports.
20The Director may make and publish annually an analysis and
21recapitulation of such reports. The Director may fine each
22licensee $25 for each day beyond March 1 the report is filed.
 
23    Section 105. Other businesses.
24    (a) Upon application by the licensee, the Director may
25approve the conduct of other businesses not specifically

 

 

SB1099 Engrossed- 23 -LRB102 04923 BMS 14942 b

1permitted by this Act in the licensee's place of business,
2unless the Director finds that such conduct will conceal or
3facilitate evasion or violation of this Act. The Director's
4approval shall be in writing and shall describe the other
5businesses which may be conducted in the licensed office.
6    (b) A licensee may without notice to and approval of the
7Director, in addition to the business permitted by this Act,
8conduct the following business:
9        (1) The business of a sales finance agency as defined
10    in the Sales Finance Agency Act.
11        (2) The business of soliciting or selling any type of
12    insurance provided that all such insurance transactions
13    are conducted in accordance with and are regulated under
14    the Illinois Insurance Code.
15        (3) The business of financing premiums for insurance.
16        (4) Offering and extending credit under a revolving
17    credit plan pursuant to the Illinois Financial Services
18    Development Act.
19    The Division shall adopt and enforce such reasonable rules
20and regulations for the conduct of business under this Act in
21the same office with other businesses as may be necessary to
22prevent evasions or violations of this Act. The Director may
23investigate any business conducted in the licensed office to
24determine whether any evasion or violation of this Act has
25occurred.
 

 

 

SB1099 Engrossed- 24 -LRB102 04923 BMS 14942 b

1    Section 110. Cease and desist.
2    (a) The Director may issue a cease and desist order to any
3licensee, or other person doing business without the required
4license, if in the opinion of the Director, the licensee or
5other person is violating or is about to violate any provision
6of this Act or any rule or requirement imposed in writing by
7the Division as a condition of granting any authorization
8permitted by this Act.
9    (b) The Director may issue a cease and desist order before
10a hearing.
11    (c) The Director shall serve notice of his or her action,
12designated as a cease and desist order made pursuant to this
13Section, including a statement of the reasons for the action,
14either personally or by certified mail, return receipt
15requested. Service by certified mail shall be deemed completed
16when the notice is deposited in the United States mail.
17    (d) Within 15 days after service of the cease and desist
18order, the licensee or other person may request, in writing, a
19hearing.
20    (e) The Director shall schedule a hearing within 30 days
21after the request for a hearing unless otherwise agreed to by
22the parties.
23    (f) The Division shall have the authority to prescribe
24rules for the administration of this Section.
25    (g) If it is determined that the Director had the
26authority to issue the cease and desist order, he or she may

 

 

SB1099 Engrossed- 25 -LRB102 04923 BMS 14942 b

1issue such orders as may be reasonably necessary to correct,
2eliminate, or remedy such conduct.
3    (h) The powers vested in the Director by this Section are
4additional to any and all other powers and remedies vested in
5the Director by law, and nothing in this Section shall be
6construed as requiring that the Director must employ the power
7conferred in this Section instead of or as a condition
8precedent to the exercise of any other power or remedy vested
9in the Director.
10    (i) The cost for the administrative hearing shall be set
11by rule.
 
12    Section 115. Rules and regulations. The Division may adopt
13and enforce such reasonable rules, regulations, directions,
14orders, decisions, and findings as the execution and
15enforcement of the provisions of this Act require, and as are
16not inconsistent therewith. In addition, the Division may
17adopt rules in connection with the activities of licensees
18that are necessary and appropriate for the protection of
19consumers in this State. All rules, regulations, and
20directions of a general character shall be sent electronically
21to all licensees.
 
22    Section 120. Judicial review. All final administrative
23decisions of the Division under this Act, all amendments and
24modifications of final administrative decisions, and any rules

 

 

SB1099 Engrossed- 26 -LRB102 04923 BMS 14942 b

1adopted by the Division pursuant to this Act shall be subject
2to judicial review pursuant to the provisions of the
3Administrative Review Law.
 
4    Section 125. Injunction; civil penalty; costs. If it
5appears to the Director that a person or any entity has
6committed or is about to commit a violation of this Act, a rule
7adopted under this Act, or an order of the Director, the
8Director may apply to the circuit court for an order enjoining
9the person or entity from violating or continuing to violate
10this Act, the rule, or order and for injunctive or other relief
11that the nature of the case may require and may, in addition,
12request the court to assess a civil penalty up to $1,000 along
13with costs and attorney's fees.
 
14    Section 130. Severability. If any clause, sentence,
15provision or part of this Act or its application to any person
16or circumstance is adjudged to be unconstitutional or invalid
17for any reason by any court of competent jurisdiction, that
18judgment shall not impair, affect, or invalidate other
19provisions or applications of this Act, which shall remain in
20full force and effect thereafter.
 
21    Section 999. Effective date. This Act takes effect upon
22becoming law.