HB1016ham001 99TH GENERAL ASSEMBLY

Rep. Kathleen Willis

Filed: 5/11/2016

09900HB1016ham001 LRB099 04847 RLC 47955 a

AMENDMENT TO HOUSE BILL 1016

AMENDMENT NO. ______. Amend House Bill 1016 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Gun Dealer Licensing Act.

Section 5. Definitions. As used in this Act:

"Address of record" means the designated address recorded by the Department in the applicant's, dealer's or dealership agent's application file or license file as maintained by the Department's licensure maintenance unit. It is the duty of the applicant or dealer to inform the Department of any change of address, and those changes must be made either through the Department's website or by contacting the Department's licensure maintenance unit.

"Applicant" means any person who applies for a dealer license or a dealership agent card, or the renewal of the dealer license or a dealership agent card under this Act.

"Board" means the Gun Dealer Licensing Board.

"Confidential or security information" means information which identifies the purchasers or other transferees of firearms from a dealer or dealership.

"Dealer" means any person engaged in the business of selling, leasing, or otherwise transferring firearms.

"Dealership" means a person, firm, corporation, or other legal entity that engages in the business of selling, leasing, or otherwise transferring firearms and employs, in addition to the gun dealer licensee-in-charge, at least one other dealership agent.

"Dealership agent" means an owner, officer, paid or unpaid agent, volunteer or employee of a licensed dealership who has access to or control of firearms in the inventory of the dealership or confidential or security information of the dealership.

"Dealership licensee-in-charge" or "licensee-in-charge" means a dealer who has been designated by a dealership to be the licensee-in-charge of the dealership, who is a full-time management employee or owner who assumes sole responsibility for maintaining all records required by this Act, and who assumes sole responsibility for assuring the dealership's compliance with its responsibilities as stated in this Act. The Department shall adopt rules mandating licensee-in-charge participation in dealership affairs.

"Department" means the Department of Financial and Professional Regulation.

"Engage in the business of selling, leasing, or otherwise transferring firearms" means to:

(1) conduct a business selling, leasing, or transferring firearms;

(2) hold himself or herself out as engaged in the business of selling, leasing or otherwise transferring firearms; or

(3) sell, lease, or transfer firearms in quantity, in series, or in any other manner indicative of trade.

"Firearm" has the same meaning as "firearm" in Section 1.1 of the Firearm Owners Identification Card Act.

"Licensee" means a dealer or a dealership licensed under this Act. Anyone who holds himself or herself out as a licensee or who is accused of unlicensed business is considered a licensee for purposes of enforcement, investigation, hearings, and the Illinois Administrative Procedure Act.

"Person" means a natural person.

"Secretary" means the Secretary of Financial and Professional Regulation.

Section 10. License requirement.

(a) It is unlawful for a person to engage in the business of selling, leasing, or otherwise transferring firearms without a license under this Act. A dealership agent other than a dealer licensee-in-charge may act on behalf of the licensed dealership under Section 75 without being licensed as a dealer under this Act.

(b) It is unlawful for a person, firm, corporation, group of individuals, or other legal entity to act as a dealership licensed under this Act, to advertise, or to assume to act as a licensed dealership or to use a title implying that the person, firm, or other entity is engaged in business as a dealership without a license under this Act. An individual or sole proprietor licensed as a dealer who operates without any dealership agents may act as a dealership without having to obtain a dealership license, provided the dealer notifies the Department that he or she is operating in this manner and provides the information required under Section 65, as determined to be applicable to the dealer by the Department. The dealer may operate under a "doing business as" or assumed name certification so long as the assumed name is first registered with the Department.

(c) No dealership shall operate a branch office without first applying for and receiving a branch office license for each location. The term "branch office" does not include a location at which the dealership conducts business temporarily, such as at a gun show.

(d) It is unlawful to obtain or attempt to obtain any license or authorization issued under this Act by fraudulent misrepresentation.

(e) A person who violates any provision of this Section is guilty of a Class A misdemeanor for a first violation, and a Class 4 felony for a second or subsequent violation.

(f) In addition to any other penalty provided by law, any person or entity who violates any provision of this Section shall, pay a civil penalty to the Department in an amount not to exceed $10,000 for each offense as determined by the Department. The civil penalty shall be assessed by the Department after a hearing is held in accordance with the provisions set forth in this Act regarding the provision of a hearing for the discipline of a licensee.

(g) The Department has the authority and power to investigate any and all unlicensed activity.

(h) The civil penalty shall be paid within 60 days after the effective date of the order imposing the civil penalty. The order shall constitute a judgment and may be filed and execution had thereon in the same manner as any judgment from any court of record.

Section 15. Exemptions. The provisions of this Act related to the licensure of dealers and dealerships do not apply to a person or other entity that engages in the following activities:

(1) transfers of less than 8 firearms within each calendar year;

(2) temporary transfers of firearms solely for use at the location or on the premises where the transfer takes place, such as transfers at a shooting range for use at that location;

(3) temporary transfers of firearms solely for use while in the presence of the transferor, such as transfers for the purposes of firearm safety training by a training instructor; or

(4) transfers of firearms among immediate family or household members, as "immediate family or household member" is defined in Section 3-2.7-10 of the Unified Code of Corrections.

Section 20. Powers and duties of the Department. Subject to the provisions of this Act, the Department may exercise the following powers and duties:

(1) Prescribe forms to be issued for the administration and enforcement of this Act.

(2) Prescribe and publish rules for a method of examination of candidates for gun dealer licenses and for issuance of licenses authorizing candidates upon passing examination to engage in the business of selling, leasing, or otherwise transferring firearms.

(3) Review application to ascertain the qualifications of applicants for licenses.

(4) Authorize examinations to ascertain the qualifications and fitness of applicants for licensing as a dealer and pass upon the qualifications of applicants for licensure.

(5) Examine the records of licensees or investigate any other aspect of the business of selling, leasing, or otherwise transferring firearms.

(6) Conduct hearings on proceedings to refuse to issue or renew licenses or to revoke, suspend, place on probation, reprimand, or take any other disciplinary or non-disciplinary action against licenses issued under this Act.

(7) Formulate rules required for the administration of this Act. Notice of proposed rulemaking shall be transmitted to the Board, and the Department shall review the Board's response and any recommendations made in the response.

(8) Solicit the advice and expert knowledge of the Board on any matter relating to the administration and enforcement of this Act.

(9) Maintain rosters of the names and addresses of all licensees and all persons whose licenses have been suspended, revoked, denied renewal, or otherwise disciplined within the previous calendar year. These rosters shall be available upon written request and payment of the required fee as established by rule.

(10) Exercise the powers and duties prescribed by the Civil Administrative Code of Illinois for the administration of licensing Acts.

Section 25. The Gun Dealer Licensing Board.

(a) The Gun Dealer Licensing Board shall consist of 5 members to be appointed by the Secretary. Each member shall have a reasonable knowledge of the federal and State laws regarding firearms. Each member shall either be a resident of this State or shall certify that he or she will become a resident of this State before taking office. The Board shall consist of:

(1) one member with at least 5 years of service as a county sheriff or chief of police of a municipal police department within this State;

(2) one representative of the Department State Police with at least 5 years investigative experience or duties related to criminal justice;

(3) one member with at least 5 years of experience as a federally licensed firearms dealer in good standing within this State;

(4) one member who is a representative of an advocacy group for public safety; and

(5) one member shall be a lawyer licensed to practice law in this State. The membership shall reasonably reflect the different geographic areas in this State.

(b) Members shall serve 4 year terms and may serve until their successors are appointed and qualified. Partial terms of over 2 years in length shall be considered full terms. No member shall serve for more than 2 successive terms. Appointments to fill vacancies shall be made in the same manner as the original appointments for the unexpired portion of the vacated term.

(c) The Secretary has the authority to remove any member of the Board for cause at any time before the expiration of his or her term. The Secretary shall be the sole arbiter of cause. A member subject to formal disciplinary proceedings shall disqualify himself or herself from all Board business until the charge is resolved. A member also shall disqualify himself or herself from any matter on which the member cannot act objectively.

(d) The Board shall annually elect one of its members as chairperson and one of its members as vice-chair.

(e) Members shall receive compensation as set by law. Each member shall receive reimbursement as set by the Governor's Travel Control Board for expenses incurred in carrying out the duties as a Board member.

(f) A majority of Board members constitutes a quorum. A majority vote of the quorum is required for a decision. A vacancy in the membership of the Board shall not impair the right of a quorum to exercise all of the rights and perform all of the duties of the Board.

(g) The Board may recommend policies, procedures, and rules relevant to the administration and enforcement of this Act.

Section 30. Application for license; forms.

(a) Each license application shall be on forms provided by the Department.

(b) Every application for an original dealer license shall include the applicant's social security number, which shall be retained in the dealership's records pertaining to the license. As soon as practical, the Department shall assign a customer's identification number to each applicant for a license.

Every application for a renewal or restored license shall require the applicant's customer identification number.

Section 35. Issuance of license; renewal; fees.

(a) The Department shall, upon the applicant's satisfactory completion of the requirements set forth in this Act and upon receipt of the fee, issue the license indicating the name and business location of the licensee and the date of expiration.

(b) The expiration date, renewal period, and conditions for renewal and restoration of each license or dealership agent card shall be set by rule. The holder may renew the license or dealership agent card during the 30 days preceding its expiration by paying the required fee and by meeting conditions that the Department may specify. As a condition of renewal of a dealership agent card, the dealership shall verify the continued validity of a dealership agent's Firearm Owner's Identification Card through the Department of State Police in a manner prescribed by rule by the Department of State Police. As a condition of renewal of a dealer's license, the Department shall verify the validity of the applicant's Firearm Owner's Identification Card through the Department of State Police in a manner prescribed by rule by the Department of State Police. A dealership or dealer operating on an expired license is considered to be practicing without a license.

(c) A dealership that has permitted a license to expire may have it restored by submitting an application to the Department, successfully completing an inspection by the Department, and by paying the required restoration fee and all lapsed renewal fees.

(d) A dealer that has permitted a license to expire may have it restored by submitting an application to the Department, paying the required restoration fee and all lapsed renewal fees and by providing evidence of competence to resume practice satisfactory to the Department and the Board, which shall include verification of the continued validity of the license holder's Firearm Owner's Identification Card through the Department of State Police in a manner prescribed by rule by the Department of State Police, and may include passing a written examination.

(e) A dealership agent that has permitted a dealership agent card to expire may have it restored by submitting an application to the Department, paying the lapsed renewal fees and verification of the agent's Firearm Owner's Identification Card by the dealership through the Department of State Police in a manner prescribed by rule by the Department of State Police.

(f) Any dealer or dealership agent whose license or dealership agent card has expired while he or she has been engaged (1) in the federal service in active duty with the Army of the United States, the United States Navy, the Marine Corps, the Air Force, the Coast Guard, or the State Militia called into the service or training of the United States of America, or (2) in training or education under the supervision of the United States preliminary to induction into the military service, may have his or her license restored without paying any lapsed renewal fees or restoration fee, if within 2 years after termination of that service, training or education, other than by dishonorable discharge, he or she furnishes the Department with an affidavit to the effect that he or she has been so engaged and that his or her service, training or education has been so terminated.

(g) Any person seeking renewal or restoration under this Section shall be subject to the continuing education requirements established under Section 45 of this Act.

(h) A license or dealership agent card shall not be denied any applicant because of the race, religion, creed, national origin, political beliefs or activities, age, sex, sexual orientation, or physical disability that does not affect a person's ability to practice with reasonable judgment, skill, or safety.

Section 40. Continuing education. The Department may adopt rules of continuing education for persons licensed under this Act. The Department shall consider the recommendations of the Board in establishing guidelines for the continuing education requirements.

Section 45. Examination of applicants; forfeiture of fee.

(a) Applicants for licensure as a dealer shall be examined as provided by this Section if they are qualified to be examined under this Act. All applicants taking the examination shall be evaluated using the same standards as others who are examined for the respective license.

(b) Examinations for licensure shall be held at such time and place as the Department may determine, but shall be held at least twice a year.

(c) Examinations shall test the amount of knowledge and skill needed to perform the duties set forth in this Act and comply with other provisions of federal and State law applicable to the sale and transfer of firearms. The Department may contract with a testing service for the preparation and conduct of the examination.

(d) If an applicant neglects, fails, or refuses to take an examination within one year after filing an application, the fee shall be forfeited. However, an applicant may, after the one-year period, make a new application for examination, accompanied by the required fee. If an applicant fails to pass the examination within 3 years after filing an application, the application shall be denied. An applicant may make a new application after the 3-year period.

(e) This Section does not apply to an applicant who was properly licensed as a firearms dealer under Section 923 of the federal Gun Control Act of 1968 (18 U.S.C. 923) on February 10, 2016 in operation in this State.

Section 50. Qualifications for licensure as a dealer.

(a) A person is qualified for licensure as a dealer if he or she meets all of the following requirements:

(1) is at least 21 years of age;

(2) has a currently valid Firearm Owner's Identification Card. The Department shall verify the validity of the applicant's Firearm Owner's Identification Card through the Department of State Police in a manner prescribed by rule by the Department of State Police. The Department of State Police shall provide the Department with an approval number if the Firearm Owner's Identification Card is currently valid;

(3) has not had a license or permit to sell, lease, transfer, purchase, or possess firearms from the federal government or the government of any state or subdivision of any state revoked or suspended for good cause within the preceding 3 years, or been terminated from employment with a licensee or former licensee for good cause within the preceding 3 years;

(4) has a minimum of one year of experience, with a minimum of 100 hours per year, during the 5 years immediately preceding the application: (i) as a dealership agent under this Act; or (ii) as a federal firearms dealer licensed under Section 923 of the federal Gun Control Act of 1968 (18 U.S.C. 923) or an employee of the business who had access to firearms;

(5) has passed an examination authorized by the Department; and

(6) has paid the fees required by this Act.

(b) The Department may request a personal interview of an applicant before the Board to further evaluate his or her qualifications for a license.

Section 55. Qualifications for licensure as a dealership.

(a) Upon receipt of the required fee and the information listed in subsection (b) of this Section, the Department shall issue a license as a dealership to any of the following:

(1) An individual who submits an application and is a licensed dealer under this Act.

(2) A firm that submits an application and all of the members of the firm are licensed dealers under this Act.

(3) A corporation or limited liability company doing business in this State that is authorized by its articles of incorporation or organization to engage in the business of conducting a dealership if at least one executive employee is licensed as a dealer under this Act.

(b) The Department shall require all of the following information from each applicant for licensure as a dealership under this Act:

(1) The name, full business address, and telephone number of the dealership. The business address for the dealership shall be the complete street address where firearms in the inventory of the dealership are regularly stored, shall be located within the State, and may not be a P.O. Box. The applicant shall submit proof that the business location is or will be used to conduct the dealership's business.

(2) All trade or business names used by the licensee.

(3) The type of ownership or operation, such as a partnership, corporation, or sole proprietorship.

(4) The name of the owner or operator of the dealership, including:

(A) if a person, then the name and address of record of the person;

(B) if a partnership, then the name and address of record of each partner and the name of the partnership;

(C) if a corporation, then the name, address of record, and title of each corporate officer and director, the corporate names, and the name of the state of incorporation; and

(D) if a sole proprietorship, then the full name and address of record of the sole proprietor and the name of the business entity.

(5) The name and license number of the licensee-in-charge for the dealership.

(6) Proof that the applicant has applied for or received a certificate of registration under the Retailers' Occupation Tax Act.

(7) Written confirmation from the sheriff of the county in which the business address is located, stating that, to the best of the sheriff's knowledge, the applicant is in compliance with applicable federal, State, and local laws. A municipality or county may impose additional requirements for the operation of gun dealers and dealerships beyond the requirements of this Act and consistent with the United States Constitution and the Constitution of the State of Illinois, including local license requirements. It shall be the duty of local authorities to investigate and enforce any failure of a dealer or dealership to meet these requirements and to notify the Department of these investigations and enforcement actions. This paragraph (7) supersedes Section 13.1 of the Firearm Owners Identification Card Act and Section 90 of the Firearm Concealed Carry Act as applied to the local regulation of dealers and dealerships.

(8) Proof that the dealership is properly licensed as a firearms dealer under federal law.

(9) A final inspection report demonstrating that the Department has determined upon inspection that the proposed business premises comply with Section 70.

(c) No dealer may be the licensee-in-charge for more than one dealership. Upon written request by a representative of a dealership, within 10 days after the loss of a licensee-in-charge of a dealership because of the death of that individual or because of the termination of the employment of that individual, the Department shall issue a temporary certificate of authority allowing the continuing operation of the licensed dealership. No temporary certificate of authority shall be valid for more than 90 days. An extension of an additional 90 days may be granted upon written request by the representative of the dealership. Not more than 2 extensions may be granted to any dealership. No temporary permit shall be issued for loss of the licensee-in-charge because of disciplinary action by the Department related to his or her conduct on behalf of the dealership.

(d) The Department may request a personal interview of a gun dealership licensee-in-charge to evaluate the dealership's qualifications for a license.

Section 60. Training of dealership agents. The Department shall adopt rules requiring dealership agents to undergo training regarding legal requirements and responsible business practices as applicable to the sale or transfer of firearms. Before a dealership agent has unsupervised access to or control over firearms in the dealership's inventory or confidential or security information, the dealership shall ensure that the dealership agent receives the training that the Department may require.

Section 65. Display of license. Each licensee shall prominently display his or her individual, agency, or branch office license at each place where business is being conducted, as required under this Act. A licensee-in-charge is required to post his or her license only at the dealership office.

Section 70. Requirements; prohibitions.

(a) The Department of Financial and Professional Regulation shall implement the provisions of this Section by rule.

(b) A licensee shall maintain operating documents which shall include procedures for the oversight of the licensee and procedures to ensure accurate recordkeeping.

(c) By January 1, 2018, a licensee shall implement appropriate security measures, as provided by rule, to deter and prevent the theft of firearms and unauthorized entrance into areas containing firearms. The rules may provide for:

(1) the manner of securing firearms when the location is both open and closed for business;

(2) alarm systems for licensees; and

(3) other reasonable requirements to deter illegal sales and reduce the risk of burglaries and other crimes or accidents at licensees' business establishments.

(d) The licensed business location shall be equipped with a video surveillance system sufficient to monitor the critical areas of the business premises, including, but not limited to, all places where firearms are stored, handled, sold, transferred, or carried. The video surveillance system shall operate without interruption, whenever the licensee is open for business. Whenever the licensee is not open for business, the system shall be triggered by a motion detector and begin recording immediately upon detection of any motion within the monitored area. In addition, every sale or transfer of a firearm, including sales and transfers that take place at locations other than the business premises, shall be recorded by the video surveillance system in a way that the facial features of the purchaser or transferee are clearly visible. The stored images shall be maintained on the business premises of the licensee for a period of not less than one year from the date of recordation and shall only be available for inspection on the premises by the licensee, the licensee's dealership agents, the Department and federal, State, and local law enforcement upon request, and neither the stored images nor copies, records, or reproductions of the stored images shall leave the custody of the licensee except under a court order, subpoena, or search warrant. The licensee shall post a sign in a conspicuous place at each entrance to the premises that states in block letters not less than one inch in height:

THESE PREMISES ARE UNDER VIDEO SURVEILLANCE. YOUR IMAGE MAY BE RECORDED.

(e) The area where the licensee stores firearms that are inventory of the licensee shall only be accessed by dealership agents, Department of Financial and Professional Regulation staff performing inspections, law enforcement or other emergency personnel, and contractors working on jobs unrelated to firearms, such as installing or maintaining security devices or performing electrical wiring.

(f) A licensee shall operate its business and conduct all sales and transfers of firearms or in compliance with all federal and State laws, and maintain all records as required by federal and State laws.

(g) A licensee shall not allow any person to handle firearms while intoxicated.

(h) A licensee shall post in a conspicuous position on the premises where the licensee conducts business a sign that contains the following warning in block letters not less than one inch in height:

"With few exceptions, it is unlawful for you to:

(1) store or leave an unsecured firearm in a place where a child can obtain access to it,

(2) sell or transfer your firearm to someone else without receiving approval for the transfer from the Department of State Police, or

(3) fail to report the loss or theft of your firearm to local law enforcement within 72 hours."

A licensee shall post any additional warnings or provide any other information regarding firearms laws and the safe storage of firearms to consumers as required by the Department by rule.

(i) Before issuance, renewal, or restoration of a dealership license, the Department shall inspect the premises of the proposed business to ensure compliance with this Act. Licensees shall have their places of business open for inspection by the Department and law enforcement during all hours of operation. Licensees shall make all records, documents, and firearms accessible for inspection upon the request of law enforcement and the Department.

(j) The premises where the licensee conducts business shall not be located in any district or area that is within 1,000 feet of any school, pre-school, or day-care facility, except that the premises where a licensee conducts business may be located in an area that is between 500 and 1,000 feet of a school, pre-school, or day-care facility located in a municipality with more than 1,000,000 inhabitants. This subsection (j) does not apply to a licensee whose business existed in that location on the effective date of this Act, and does not limit the authority of a local government to impose and enforce additional limits on the location of a business regulated under this Act.

Section 75. Dealership agent requirements. All dealership agents shall apply for a dealership agent card. The holder of a dealership license issued under this Act, known in this Section as "employer", may employ in the conduct of his or her business dealership agents under the following provisions:

(a) No person shall be issued a dealership agent card who:

(1) is younger than 21 years of age;

(2) does not have a valid Firearm Owner's Identification Card; or

(3) has had a license or dealership agent card denied, suspended, or revoked under this Act: (i) within one year before the date the person's application for a dealership agent card is received by the Department; and (ii) that refusal, denial, suspension, or revocation was based on any provision of this Act.

(b) No person may act as a dealership agent under this Section until he or she has executed and furnished to the employer, on forms furnished by the Department, a verified statement to be known as "Dealership Agent's Statement" setting forth:

(1) The person's full name, age, and residence address.

(2) That the person has not had a license or dealership agent card denied, revoked, or suspended under this Act: (i) within one year before the date the person's application for dealership agent card is received by the Department; and (ii) that refusal, denial, suspension, or revocation was based on any provision of this Act.

(3) That the person will notify the dealership and the Department immediately if his or her Firearm Owner's Identification Card is revoked for any reason.

(4) That the person will not divert firearms in violation of the law.

(c) Each applicant for a dealership agent card shall have the validity of his or her Firearm Owner's Identification Card confirmed by the employer through the Department of State Police in a manner prescribed by rule by the Department of State Police. The Department of State Police shall provide the employer with an approval number if the Firearm Owner's Identification Card is currently valid.

(d) The Department shall issue a dealership agent card, in a form the Department prescribes, to all qualified applicants. The holder of a dealership agent card shall carry the card at all times while actually engaged in the performance of the duties of his or her employment. Expiration and requirements for renewal of dealership agent cards shall be established by rule of the Department.

(e) Each employer shall maintain a record of each dealership agent that is accessible to the Department. The record shall contain the following information:

(1) The Dealership Agent's Statement specified in subsection (b) of this Section.

(2) A copy of the dealership agent's Firearm Owner's Identification Card.

(3) A copy of the dealership agent's dealership agent card.

The Department may, by rule, prescribe further record requirements.

(f) Every employer shall maintain a separate roster of the names of all dealership agents and submit the roster to the Department on request.

(g) No dealership may employ any person to perform a licensed activity under this Act unless the person possesses a valid dealership agent card or a valid license under this Act, or is exempt under subsection (j) of this Section.

(h) Notwithstanding the provisions of subsection (g) of this Section, a dealership may employ a person in a temporary capacity if all of the following conditions are met:

(1) The dealership completes in its entirety and submits to the Department an application for a dealership agent card, including the required approval number from the Department of State Police.

(2) The dealership exercises due diligence to ensure that the person is qualified under the requirements of the Act to be issued a dealership agent card.

(3) The dealership maintains a separate roster of the names of all dealership agents whose applications are currently pending with the Department and submits the roster to the Department upon request. Rosters are to be maintained by the dealership for a period of at least 24 months.

(4) A dealership may allow a dealership agent applicant access to firearms if it either submitted a dealership agent application and all required forms and fees for that dealership agent applicant or it confirms with the Department that a dealership agent application and all required forms and fees have been submitted by another dealership, licensee or the dealership agent and all other requirements of this Section are met.

(5) A dealership may not employ a person as a dealership agent in a temporary capacity if it knows or reasonably should have known that the person does not have a valid Firearm Owner's Identification Card. The Department may adopt rules to implement this subsection (h).

(i) If information is discovered affecting the validity of the Firearm Owner's Identification Card or dealership agent card of a dealership agent or applicant for a dealership agent card, the Department shall so notify the dealership that submitted the application on behalf of that person.

(j) Peace officers shall be exempt from the requirements of this Section relating to dealership agent cards. The dealership shall remain responsible for any peace officer employed under this exemption, regardless of whether the peace officer is compensated as an employee or as an independent contractor and as further defined by rule.

(k) Persons who have no unsupervised access to firearms in the inventory of a dealership or confidential or security information are exempt from the requirements of a dealership agent.

Section 80. Employment requirement.

(a) The holder of a dealership agent card is prohibited from performing the activities of dealer or dealership without being employed by a dealership licensed under this Act.

(b) A dealership licensed under this Act is prohibited from evading or attempting to evade the requirements for dealership agent cards under this Act by engaging a contractor or independent contractor to perform the activities of a dealer or dealership agent, unless that person is licensed under this Act.

Section 85. Disciplinary sanctions.

(a) The Department may deny issuance, refuse to renew, or restore or may reprimand, place on probation, suspend, revoke, or take other disciplinary or non-disciplinary action against any license or dealership agent card, may impose a fine not to exceed $10,000 for each violation, and may assess costs as provided for under Section 135, for any of the following, consistent with the Protection of Lawful Commerce in Arms Act, 15 U.S.C. 7901 through 7903 or amendments thereto:

(1) Material misstatement in furnishing information to the Department or to any other State or federal agency.

(2) Violations of this Act, any of the rules adopted under this Act, or any law applicable to the sale or transfer of firearms.

(3) Making any misrepresentation for the purpose of obtaining licenses or cards.

(4) A pattern of practice or other behavior which demonstrates incapacity or incompetency to practice under this Act.

(5) Aiding or assisting another person in violating any provision of this Act or rules adopted under this Act.

(6) Failing, within 60 days, to provide information in response to a written request made by the Department.

(7) Conviction of or plea of guilty or plea of nolo contendere to any crime that disqualifies the person from obtaining a valid Firearm Owner's Identification Card.

(8) Continued practice, although the person has become unfit to practice due to any of the following:

(A) Physical illness, mental illness, or other impairment, including, but not limited to, deterioration through the aging process or loss of motor skills that results in the inability to serve the public with reasonable judgment, skill, or safety.

(B) Any circumstance that disqualifies the person from obtaining a valid Firearm Owner's Identification Card.

(C) Habitual or excessive use or abuse of drugs defined in law as controlled substances, alcohol, or any other substance that results in the inability to practice with reasonable judgment, skill, or safety.

(9) Receiving, directly or indirectly, compensation for any firearms sold or transferred illegally.

(10) Discipline by another United States jurisdiction, foreign nation, or governmental agency, if at least one of the grounds for the discipline is the same or substantially equivalent to those set forth in this Act.

(11) Giving differential treatment to a person that is to that person's detriment because of race, color, creed, sex, sexual orientation, religion, or national origin.

(12) Violation of any disciplinary order imposed on a licensee by the Department.

(13) Conducting a dealership without a valid license.

(14) Revealing confidential or security information, except as specifically authorized by law, including but not limited to information about purchasers and transferees of firearms, provided that a licensee or dealership agent may disclose this information under a court order, subpoena, or search warrant or to the Department or federal, State, or local law enforcement agencies upon request.

(15) Purporting to be a licensee-in-charge of an agency without active participation in the agency.

(16) A finding by the Department that the licensee, after having his or her license placed on probationary status, has violated the terms of probation.

(17) Failure to report in writing to the Department, within 60 days of an entry of a settlement or a verdict in excess of $10,000, any legal action in which the business of the dealer, dealership, or dealership agent was the subject of the legal action.

(b) All fines imposed under this Section shall be paid within 60 days after the effective date of the order imposing the fine.

Section 90. Suspension or revocation of dealership agent card.

(a) Dealership agents issued dealership agent cards under the provisions of Section 75 of this Act shall be subject to the disciplinary sanctions of this Act and shall otherwise comply with this Act and the rules adopted under it. Notwithstanding any other provision in this Act to the contrary, dealership agents shall not be responsible for compliance with any requirement that this Act assigns to the dealership or the licensee-in-charge regardless of the agent's job title, job duties, or position in the dealership. The procedures for disciplining a licensee shall also apply in taking action against a dealership agent.

(b) The revocation of a dealer's or dealership agent's Firearm Owner's Identification Card operates as an automatic suspension of the dealer license or dealership agent card. The suspension will end only upon the issuance by the Department of State Police of a new Firearm Owner's Identification Card to the dealer or dealership agent.

Section 95. Returned checks; fines. Any person who delivers a check or other payment to the Department that is returned to the Department unpaid by the financial institution upon which it is drawn shall pay to the Department, in addition to the amount already owed to the Department, a fine of $50. The fines imposed by this Section are in addition to any other discipline provided under this Act for unlicensed business or business on a nonrenewed license. The Department shall notify the person that payment of fees and fines shall be paid to the Department by certified check or money order within 30 calendar days of the notification. If, after the expiration of 30 days from the date of the notification, the person has failed to submit the necessary remittance, the Department shall automatically terminate the license or card or deny the application, without hearing. If, after termination or denial, the person seeks a license or card, he or she shall apply to the Department for restoration or issuance of the license or card and pay all fees and fines due to the Department. The Department may establish a fee for the processing of an application for restoration of a license or card to pay all expenses of processing this application. The Secretary may waive the fines due under this Section in individual cases if the Secretary finds that the fines would be unreasonable or unnecessarily burdensome.

Section 100. Statute of limitations. No action may be taken under this Act against a person or entity licensed under this Act unless the action is commenced within 5 years after the occurrence of the alleged violations. A continuing violation shall be deemed to have occurred on the date when the circumstances last existed that give rise to the alleged violation.

Section 105. Complaints; investigations; hearings.

(a) The Department may investigate the actions of any applicant or of any person or persons holding or claiming to hold a license or registration under this Act.

(b) The Department shall, before disciplining a licensee under Section 115 or refusing to issue or license, at least 30 days before the date set for the hearing, (i) notify the accused in writing of the charges made and the time and place for the hearing on the charges, (ii) direct him or her to file a written answer to the charges under oath within 20 days after service, and (iii) inform the applicant or licensee that failure to answer will result in a default being entered against the applicant or licensee.

(c) At the time and place fixed in the notice, the Board or the hearing officer appointed by the Secretary shall proceed to hear the charges, and the parties or their counsel shall be accorded ample opportunity to present any pertinent statements, testimony, evidence, and arguments. The Board or hearing officer may continue the hearing from time to time. In case the person, after receiving the notice, fails to file an answer, his or her license may, in the discretion of the Secretary, having first received the recommendation of the Board, be suspended, revoked, or placed on probationary status, or be subject to whatever disciplinary action the Secretary considers proper, including limiting the scope, nature, or extent of the person's business or the imposition of a fine, without hearing, if the act or acts charged constitute sufficient grounds for that action under this Act.

(d) The written notice and any notice in the subsequent proceeding may be served by certified mail to the licensee's address of record.

(e) The Secretary has the authority to appoint any attorney licensed to practice law in this State to serve as the hearing officer in any action for refusal to issue, restore, or renew a license or to discipline a licensee. The hearing officer has full authority to conduct the hearing.

Section 110. Hearing; rehearing.

(a) The Board or the hearing officer authorized by the Department shall hear evidence in support of the formal charges and evidence produced by the licensee. At the conclusion of the hearing, the Board shall present to the Secretary a written report of its findings of fact, conclusions of law, and recommendations. The report shall contain a finding of whether the accused person violated this Act or failed to comply with the conditions required in this Act. The Board shall specify the nature of the violation or failure to comply and shall make its recommendation to the Secretary.

(b) At the conclusion of the hearing, a copy of the Board or hearing officer's report shall be served upon the applicant or licensee by the Department, either personally or as provided in this Act for the service of a notice of hearing. Within 20 calendar days after service, the applicant or licensee may present to the Department a motion in writing for a rehearing, which shall specify the particular grounds for rehearing. The Department may respond to the motion for rehearing within 20 calendar days after its service on the Department. If no motion for rehearing is filed, then upon the expiration of the time specified for filing such a motion, or upon denial of a motion for rehearing, the Secretary may enter an order in accordance with the recommendations of the Board or hearing officer. If the applicant or licensee orders from the reporting service and pays for a transcript of the record within the time for filing a motion for rehearing, the 20-day period within which a motion may be filed shall commence upon the delivery of the transcript to the applicant or licensee.

(c) If the Secretary disagrees in any regard with the report of the Board, the Secretary may issue an order contrary to the report. The finding is not admissible in evidence against the person in a criminal prosecution brought for the violation of this Act, but the hearing and findings are not a bar to a criminal prosecution for the violation of this Act.

(d) Whenever the Secretary is not satisfied that substantial justice has been done, the Secretary may order a rehearing by the same or another hearing officer.

(e) All proceedings under this Section are matters of public record and shall be preserved.

(f) Upon the suspension or revocation of a license, the licensee shall surrender the license to the Department and, upon failure to do so, the Department shall seize the same.

Section 115. Summary suspension of a license. The Secretary may summarily suspend a license without a hearing, simultaneously with the initiation of the procedure for a hearing provided for in this Act, if the Secretary finds that the public interest, safety, or welfare requires the emergency action. If the Secretary summarily suspends a license without a hearing, a hearing by the Department shall be held within 30 days after the suspension has occurred. The suspended licensee may seek a continuance of the hearing, during which time the suspension shall remain in effect. The proceeding shall be concluded without appreciable delay. If the Department does not hold a hearing within 30 days after the date of suspension and the suspended licensee did not seek a continuance, the licensee's license shall be automatically reinstated.

Section 120. Disposition by consent order. At any point in any investigation or disciplinary proceeding provided for in the Act, both parties may agree to a negotiated consent order. The consent order shall be final upon signature of the Secretary.

Section 125. Restoration of license after disciplinary proceedings. At any time after the successful completion of a term of indefinite probation, indefinite suspension, or revocation of a license, the Department may restore it to the licensee, unless, after an investigation and a hearing, the Secretary determines that restoration is not in the public interest. No person or entity whose license, card, or authority has been revoked as authorized in this Act may apply for restoration of that license, registration, or authority until such time as provided for in the Civil Administrative Code of Illinois.

Section 130. Injunction; cease and desist orders.

(a) Upon the filing of a verified petition in court, if satisfied by affidavit or otherwise that the person, firm, corporation, or other legal entity is or has been conducting activities in violation of this Act, the court may enter a temporary restraining order or preliminary injunction, without bond, enjoining the defendant from further activity. A copy of the verified complaint shall be served upon the defendant and the proceedings shall be conducted as in civil cases. If it is established the defendant has been or is conducting activities in violation of this Act, the court may enter a judgment enjoining the defendant from that activity. In case of violation of any injunctive order or judgment entered under this Section, the court may punish the offender for contempt of court. Injunctive proceedings shall be in addition to all other penalties under this Act.

(b) If any person has engaged in the business of selling, leasing, or otherwise transferring firearms without having a valid license under this Act, then any licensee, any interested party, or any person injured thereby may, in addition to the Secretary, petition for relief as provided in subsection (a) of this Section.

(c) Whenever the Department has reason to believe a person, firm, corporation, or other legal entity has violated any provision of this Act, the Department may issue a rule to show cause why an order to cease and desist should not be entered against that person, firm, corporation, or other legal entity. The rule shall clearly set forth the grounds relied upon by the Department and shall provide a period of 7 days from the date of the rule to file an answer to the satisfaction of the Department. Failure to answer to the satisfaction of the Department shall cause an order to cease and desist to be issued immediately.

Section 135. Administrative review. All final administrative decisions of the Department are subject to judicial review under Article III of the Code of Civil Procedure. The term "administrative decision" is defined as in Section 3-101 of the Code of Civil Procedure. The proceedings for judicial review shall be commenced in the circuit court of the county in which the party applying for review resides; but if the party is not a resident of this State, the venue shall be in Sangamon County. The Department shall not be required to certify any record to the court or file any answer in court or otherwise appear in any court in a judicial review proceeding, unless and until the Department has received from the plaintiff payment of the costs of furnishing and certifying the record, which costs shall be determined by the Department. Exhibits shall be certified without cost. Failure on the part of the applicant or licensee to file a receipt in court is grounds for dismissal of the action.

Section 140. Prima facie proof.

(a) An order or a certified copy thereof, over the seal of the Department and purporting to be signed by the Secretary, is prima facie proof that the signature is that of the Secretary, and the Secretary is qualified to act.

(b) A certified copy of a record of the Department shall, without further proof, be admitted into evidence in any legal proceeding, and shall be prima facie correct and prima facie evidence of the information contained therein.

Section 145. Subpoenas.

(a) The Department may subpoena and bring before it any person to take the oral or written testimony or compel the production of any books, papers, records, or any other documents that the Secretary or his or her designee deems relevant or material to any such investigation or hearing conducted by the Department with the same fees and in the same manner as prescribed in civil cases in the courts of this State.

(b) Any circuit court, upon the application of the applicant, licensee, or Department, may order the attendance and testimony of witnesses and the production of relevant documents, files, records, books, and papers in connection with any hearing or investigation. The circuit court may compel obedience to its order by proceedings for contempt.

(c) The Secretary, the hearing officer, any member of the Board, or a certified shorthand court reporter may administer oaths at any hearing the Department conducts. Notwithstanding any other statute or Department rule to the contrary, all requests for testimony, production of documents or records shall be in accordance with this Act.

Section 150. Stenographers. The Department, at its expense, shall preserve the record of all proceedings at a formal hearing of any case. The notice of hearing, complaint, all other documents in the nature of pleadings and written motions filed in the proceedings, the transcript of testimony, the report of the Board and orders of the Department shall be in the record of the proceedings.

Section 155. Fees; deposit of fees and fines. The Department shall by rule provide for fees for the administration and enforcement of this Act, and those fees are nonrefundable. Applicants for examination shall be required to pay a fee to either the Department or the designated testing service to cover the cost of providing the examination. If an applicant fails to appear for the examination on the scheduled date at the time and place specified by the Department or designated testing service, then the applicant's examination fee shall be forfeited. All of the fees, penalties, and fines collected under this Act shall be deposited into the General Professions Dedicated Fund and shall be appropriated to the Department for the ordinary and contingent expenses of the Department in the administration and enforcement of this Act.

Section 160. Illinois Administrative Procedure Act; application.

(a) All rules required under this Act shall be adopted in accordance with Article 5 of the Illinois Administrative Procedure Act.

(b) Article 10 of the Illinois Administrative Procedure Act is expressly adopted and incorporated in this Act as if all of the provisions of that Article were included in this Act, except that the provision of paragraph (d) of Section 10-65 of the Illinois Administrative Procedure Act, which provides that at hearings the registrant or licensee has the right to show compliance with all lawful requirements for retention or continuation or renewal of the license, is specifically excluded. For the purpose of this Act, the notice required under Section 10-25 of the Illinois Administrative Procedure Act is considered sufficient when mailed to the address of record of a party.

Section 165. Confidentiality. All information collected by the Department in the course of an examination or investigation of a licensee or applicant, including, but not limited to, any complaint against a licensee filed with the Department and information collected to investigate any such complaint, shall be maintained for the confidential use of the Department and shall not be disclosed. The Department shall not disclose the information to anyone other than law enforcement officials, regulatory agencies that have an appropriate regulatory interest as determined by the Secretary, or a party presenting a lawful subpoena to the Department. Information and documents disclosed to a federal, State, county, or local law enforcement agency shall not be disclosed by the agency for any purpose to any other agency or person. A formal complaint filed against a licensee by the Department or any order issued by the Department against a licensee or applicant shall be a public record, except as otherwise prohibited by law.

Section 900. The Regulatory Sunset Act is amended by adding Section 4.37 as follows:

(5 ILCS 80/4.37 new)

Sec. 4.37. Act repealed on January 1, 2027. The following Act is repealed on January 1, 2027:

The Gun Dealer Licensing Act.".