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| [ Introduced ] | [ Enrolled ] | [ Senate Amendment 001 ] |
92_SB0575eng SB575 Engrossed LRB9206482ARgc 1 AN ACT concerning business transactions. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Securities Law of 1953 is 5 amended by changing Sections 2.1, 8, 11, and 14 as follows: 6 (815 ILCS 5/2.1) (from Ch. 121 1/2, par. 137.2-1) 7 Sec. 2.1. Security. "Security" means any note, stock, 8 treasury stock, bond, debenture, evidence of indebtedness, 9 certificate of interest or participation in any 10 profit-sharing agreement, collateral-trust certificate, 11 preorganization certificate or subscription, transferable 12 share, investment contract, investment fund share, 13 face-amount certificate, voting-trust certificate, 14 certificate of deposit, certificate of deposit for a 15 security, fractional undivided interest in oil, gas or other 16 mineral lease, right or royalty, any put, call, straddle, 17 option, or privilege on any security, certificate of deposit, 18 or group or index of securities (including any interest 19 therein or based on the value thereof), or any put, call, 20 straddle, option, or privilege entered into,on a national21securities exchangerelating to foreign currency, or, in 22 general, any interest or instrument commonly known as a 23 "security", or any certificate of interest or participation 24 in, temporary or interim certificate for, receipt for, 25 guarantee of, or warrant or right to subscribe to or 26 purchase, any of the foregoing. "Security" does not mean a 27 mineral investment contract or a mineral deferred delivery 28 contract; provided, however, the Department shall have the 29 authority to regulate these contracts as hereinafter 30 provided. 31 (Source: P.A. 87-463.) SB575 Engrossed -2- LRB9206482ARgc 1 (815 ILCS 5/8) (from Ch. 121 1/2, par. 137.8) 2 Sec. 8. Registration of dealers, limited Canadian 3 dealers, salespersons, investment advisers, and investment 4 adviser representatives. 5 A. Except as otherwise provided in this subsection A, 6 every dealer, limited Canadian dealer, salesperson, 7 investment adviser, and investment adviser representative 8 shall be registered as such with the Secretary of State. No 9 dealer or salesperson need be registered as such when 10 offering or selling securities in transactionsbelieved in11good faith to beexempted by subsection A, B, C, D, E, G, H, 12 I, J, K, M, O, P, Q, R or S of Section 4 of this Act, 13 provided that such dealer or salesperson is not regularly 14 engaged in the business of offering or selling securities in 15 reliance upon the exemption set forth in subsection G or M of 16 Section 4 of this Act. No dealer, issuer or controlling 17 person shall employ a salesperson unless such salesperson is 18 registered as such with the Secretary of State or is employed 19 for the purpose of offering or selling securities solely in 20 transactionsbelieved in good faith to beexempted by 21 subsection A, B, C, D, E, G, H, I, J, K, L, M, O, P, Q, R or 22 S of Section 4 of this Act; provided that such salesperson 23 need not be registered when effecting transactions in this 24 State limited to those transactions described in Section 25 15(h)(2) of the Federal 1934 Act or engaging in the offer or 26 sale of securities in respect of which he or she has 27 beneficial ownership and is a controlling person. The 28 Secretary of State may, by rule, regulation or order and 29 subject to such terms, conditions, andasfees as may be 30 prescribed in such rule, regulation or order, exempt from the 31 registration requirements of this Section 8 any investment 32 adviser, if the Secretary of State shall find that such 33 registration is not necessary in the public interest by 34 reason of the small number of clients or otherwise limited SB575 Engrossed -3- LRB9206482ARgc 1 character of operation of such investment adviser. 2 B. An application for registration as a dealer or 3 limited Canadian dealer, executed, verified, or authenticated 4 by or on behalf of the applicant, shall be filed with the 5 Secretary of State, in such form as the Secretary of State 6 may by rule, regulation or order prescribe, setting forth or 7 accompanied by: 8 (1) The name and address of the applicant, the 9 location of its principal business office and all branch 10 offices, if any, and the date of its organization; 11 (2) A statement of any other Federal or state 12 licenses or registrations which have been granted the 13 applicant and whether any such licenses or registrations 14 have ever been refused, cancelled, suspended, revoked or 15 withdrawn; 16 (3) The assets and all liabilities, including 17 contingent liabilities of the applicant, as of a date not 18 more than 60 days prior to the filing of the application; 19 (4) (a) A brief description of any civil or 20 criminal proceeding of which fraud is an essential 21 element pending against the applicant and whether the 22 applicant has ever been convicted of a felony, or of any 23 misdemeanor of which fraud is an essential element; 24 (b) A list setting forth the name, residence and 25 business address and a 10 year occupational statement of 26 each principal of the applicant and a statement 27 describing briefly any civil or criminal proceedings of 28 which fraud is an essential element pending against any 29 such principal and the facts concerning any conviction of 30 any such principal of a felony, or of any misdemeanor of 31 which fraud is an essential element; 32 (5) If the applicant is a corporation: a list of 33 its officers and directors setting forth the residence 34 and business address of each; a 10-year occupational SB575 Engrossed -4- LRB9206482ARgc 1 statement of each such officer or director; and a 2 statement describing briefly any civil or criminal 3 proceedings of which fraud is an essential element 4 pending against each such officer or director and the 5 facts concerning any conviction of any officer or 6 director of a felony, or of any misdemeanor of which 7 fraud is an essential element; 8 (6) If the applicant is a sole proprietorship, a 9 partnership, limited liability company, an unincorporated 10 association or any similar form of business organization: 11 the name, residence and business address of the 12 proprietor or of each partner, member, officer, director, 13 trustee or manager; the limitations, if any, of the 14 liability of each such individual; a 10-year occupational 15 statement of each such individual; a statement describing 16 briefly any civil or criminal proceedings of which fraud 17 is an essential element pending against each such 18 individual and the facts concerning any conviction of any 19 such individual of a felony, or of any misdemeanor of 20 which fraud is an essential element; 21 (7) Such additional information as the Secretary of 22 State may by rule or regulation prescribe as necessary to 23 determine the applicant's financial responsibility, 24 business repute and qualification to act as a dealer. 25 (8) (a) No applicant shall be registered or 26 re-registered as a dealer or limited Canadian dealer 27 under this Section unless and until each principal of the 28 dealer has passed an examination conducted by the 29 Secretary of State or a self-regulatory organization of 30 securities dealers or similar person, which examination 31 has been designated by the Secretary of State by rule, 32 regulation or order to be satisfactory for purposes of 33 determining whether the applicant has sufficient 34 knowledge of the securities business and laws relating SB575 Engrossed -5- LRB9206482ARgc 1 thereto to act as a registered dealer. Any dealer who was 2 registered on September 30, 1963, and has continued to be 3 so registered; and any principal of any registered 4 dealer, who was acting in such capacity on and 5 continuously since September 30, 1963; and any individual 6 who has previously passed a securities dealer examination 7 administered by the Secretary of State or any examination 8 designated by the Secretary of State to be satisfactory 9 for purposes of determining whether the applicant has 10 sufficient knowledge of the securities business and laws 11 relating thereto to act as a registered dealer by rule, 12 regulation or order, shall not be required to pass an 13 examination in order to continue to act in such capacity. 14 The Secretary of State may by order waive the examination 15 requirement for any principal of an applicant for 16 registration under this subsection B who has had such 17 experience or education relating to the securities 18 business as may be determined by the Secretary of State 19 to be the equivalent of such examination. Any request 20 for such a waiver shall be filed with the Secretary of 21 State in such form as may be prescribed by rule or 22 regulation. 23 (b) Unless an applicant is a member of the body 24 corporate known as the Securities Investor Protection 25 Corporation established pursuant to the Act of Congress 26 of the United States known as the Securities Investor 27 Protection Act of 1970, as amended, a member of an 28 association of dealers registered as a national 29 securities association pursuant to Section 15A of the 30 Federal 1934 Act, or a member of a self-regulatory 31 organization or stock exchange in Canada which the 32 Secretary of State has designated by rule or order, an 33 applicant shall not be registered or re-registered unless 34 and until there is filed with the Secretary of State SB575 Engrossed -6- LRB9206482ARgc 1 evidence that such applicant has in effect insurance or 2 other equivalent protection for each client's cash or 3 securities held by such applicant, and an undertaking 4 that such applicant will continually maintain such 5 insurance or other protection during the period of 6 registration or re-registration. Such insurance or other 7 protection shall be in a form and amount reasonably 8 prescribed by the Secretary of State by rule or 9 regulation. 10 (9) The application for the registration of a 11 dealer or limited Canadian dealer shall be accompanied 12 by a filing fee and a fee for each branch office in this 13 State, in each case in the amount established pursuant to 14 Section 11a of this Act, which fees shall not be 15 returnable in any event. 16 (10) The Secretary of State shall notify the dealer 17 or limited Canadian dealer by written notice (which may 18 be by electronic or facsimile transmission) of the 19 effectiveness of the registration as a dealer in this 20 State. 21 (11) Any change which renders no longer accurate 22 any information contained in any application for 23 registration or re-registration of a dealer or limited 24 Canadian dealer shall be reported to the Secretary of 25 State within 10 business days after the occurrence of 26 such change; but in respect to assets and liabilities 27 only materially adverse changes need be reported. 28 C. Any registered dealer, limited Canadian dealer, 29 issuer, or controlling person desiring to register a 30 salesperson shall file an application with the Secretary of 31 State, in such form as the Secretary of State may by rule or 32 regulation prescribe, which the salesperson is required by 33 this Section to provide to the dealer, issuer, or controlling 34 person, executed, verified, or authenticated by the SB575 Engrossed -7- LRB9206482ARgc 1 salesperson setting forth or accompanied by: 2 (1) the name, residence and business address of the 3 salesperson; 4 (2) whether any federal or State license or 5 registration as dealer, limited Canadian dealer, or 6 salesperson has ever been refused the salesperson or 7 cancelled, suspended, revoked,orwithdrawn, barred, 8 limited, or otherwise adversely affected in a similar 9 manner or whether the salesperson has ever been censured 10 or expelled; 11 (3) the nature of employment with, and names and 12 addresses of, employers of the salesperson for the 10 13 years immediately preceding the date of application; 14 (4) a brief description of any civil or criminal 15 proceedings of which fraud is an essential element 16 pending against the salesperson, and whether the 17 salesperson has ever been convicted of a felony, or of 18 any misdemeanor of which fraud is an essential element; 19 (5) such additional information as the Secretary of 20 State may by rule, regulation or order prescribe as 21 necessary to determine the salesperson's business repute 22 and qualification to act as a salesperson; and 23 (6) no individual shall be registered or 24 re-registered as a salesperson under this Section unless 25 and until such individual has passed an examination 26 conducted by the Secretary of State or a self-regulatory 27 organization of securities dealers or similar person, 28 which examination has been designated by the Secretary of 29 State by rule, regulation or order to be satisfactory for 30 purposes of determining whether the applicant has 31 sufficient knowledge of the securities business and laws 32 relating thereto to act as a registered salesperson. 33 Any salesperson who was registered prior to 34 September 30, 1963, and has continued to be so SB575 Engrossed -8- LRB9206482ARgc 1 registered, and any individual who has passed a 2 securities salesperson examination administered by the 3 Secretary of State or an examination designated by the 4 Secretary of State by rule, regulation or order to be 5 satisfactory for purposes of determining whether the 6 applicant has sufficient knowledge of the securities 7 business and laws relating thereto to act as a registered 8 salesperson, shall not be required to pass an examination 9 in order to continue to act as a salesperson. The 10 Secretary of State may by order waive the examination 11 requirement for any applicant for registration under this 12 subsection C who has had such experience or education 13 relating to the securities business as may be determined 14 by the Secretary of State to be the equivalent of such 15 examination. Any request for such a waiver shall be 16 filed with the Secretary of State in such form as may be 17 prescribed by rule, regulation or order. 18 (7) The application for registration of a 19 salesperson shall be accompanied by a filing fee and a 20 Securities Audit and Enforcement Fund fee, each in the 21 amount established pursuant to Section 11a of this Act, 22 which shall not be returnable in any event. 23 (8) Any change which renders no longer accurate any 24 information contained in any application for registration 25 or re-registration as a salesperson shall be reported to 26 the Secretary of State within 10 business days after the 27 occurrence of such change. If the activities are 28 terminated which rendered an individual a salesperson for 29 the dealer, issuer or controlling person, the dealer, 30 issuer or controlling person, as the case may be, shall 31 notify the Secretary of State, in writing, within 30 days 32 of the salesperson's cessation of activities, using the 33 appropriate termination notice form. 34 (9) A registered salesperson may transfer his or SB575 Engrossed -9- LRB9206482ARgc 1 her registration under this Section 8 for the unexpired 2 term thereof from one registered dealer or limited 3 Canadian dealer to another by the giving of notice of the 4 transfer by the new registered dealer or limited Canadian 5 dealer to the Secretary of State in such form and subject 6 to such conditions as the Secretary of State shall by 7 rule or regulation prescribe. The new registered dealer 8 or limited Canadian dealer shall promptly file an 9 application for registration of such salesperson as 10 provided in this subsection C, accompanied by the filing 11 fee prescribed by paragraph (7) of this subsection C. 12 C-5. Except with respect to federal covered investment 13 advisers whose only clients are investment companies as 14 defined in the Federal 1940 Act, other investment advisers, 15 federal covered investment advisers, or any similar person 16 which the Secretary of State may prescribe by rule or order, 17 a federal covered investment adviser shall file with the 18 Secretary of State, prior to acting as a federal covered 19 investment adviser in this State, such documents as have been 20 filed with the Securities and Exchange Commission as the 21 Secretary of State by rule or order may prescribe. The 22 notification of a federal covered investment adviser shall be 23 accompanied by a notification filing fee established pursuant 24 to Section 11a of this Act, which shall not be returnable in 25 any event. Every person acting as a federal covered 26 investment adviser in this State shall file a notification 27 filing and pay an annual notification filing fee established 28 pursuant to Section 11a of this Act, which is not returnable 29 in any event. The failure to file any such notification 30 shall constitute a violation of subsection D of Section 12 of 31 this Act, subject to the penalties enumerated in Section 14 32 of this Act. Until October 10, 1999 or other date as may be 33 legally permissible, a federal covered investment adviser who 34 fails to file the notification or refuses to pay the fees as SB575 Engrossed -10- LRB9206482ARgc 1 required by this subsection shall register as an investment 2 adviser with the Secretary of State under Section 8 of this 3 Act. The civil remedies provided for in subsection A of 4 Section 13 of this Act and the civil remedies of rescission 5 and appointment of receiver, conservator, ancillary receiver, 6 or ancillary conservator provided for in subsection F of 7 Section 13 of this Act shall not be available against any 8 person by reason of the failure to file any such notification 9 or to pay the notification fee or on account of the contents 10 of any such notification. 11 D. An application for registration as an investment 12 adviser, executed, verified, or authenticated by or on behalf 13 of the applicant, shall be filed with the Secretary of State, 14 in such form as the Secretary of State may by rule or 15 regulation prescribe, setting forth or accompanied by: 16 (1) The name and form of organization under which 17 the investment adviser engages or intends to engage in 18 business; the state or country and date of its 19 organization; the location of the adviser's principal 20 business office and branch offices, if any; the names and 21 addresses of the adviser's principal, partners, officers, 22 directors, and persons performing similar functions or, 23 if the investment adviser is an individual, of the 24 individual; and the number of the adviser's employees who 25 perform investment advisory functions; 26 (2) The education, the business affiliations for 27 the past 10 years, and the present business affiliations 28 of the investment adviser and of the adviser's principal, 29 partners, officers, directors, and persons performing 30 similar functions and of any person controlling the 31 investment adviser; 32 (3) The nature of the business of the investment 33 adviser, including the manner of giving advice and 34 rendering analyses or reports; SB575 Engrossed -11- LRB9206482ARgc 1 (4) The nature and scope of the authority of the 2 investment adviser with respect to clients' funds and 3 accounts; 4 (5) The basis or bases upon which the investment 5 adviser is compensated; 6 (6) Whether the investment adviser or any 7 principal, partner, officer, director, person performing 8 similar functions or person controlling the investment 9 adviser (i) within 10 years of the filing of the 10 application has been convicted of a felony, or of any 11 misdemeanor of which fraud is an essential element, or 12 (ii) is permanently or temporarily enjoined by order or 13 judgment from acting as an investment adviser, 14 underwriter, dealer, principal or salesperson, or from 15 engaging in or continuing any conduct or practice in 16 connection with any such activity or in connection with 17 the purchase or sale of any security, and in each case 18 the facts relating to the conviction, order or judgment; 19 (7) (a) A statement as to whether the investment 20 adviser is engaged or is to engage primarily in the 21 business of rendering investment supervisory services; 22 and 23 (b) A statement that the investment adviser will 24 furnish his, her, or its clients with such information as 25 the Secretary of State deems necessary in the form 26 prescribed by the Secretary of State by rule or 27 regulation; 28 (8) Such additional information as the Secretary of 29 State may, by rule, regulation or order prescribe as 30 necessary to determine the applicant's financial 31 responsibility, business repute and qualification to act 32 as an investment adviser. 33 (9) No applicant shall be registered or 34 re-registered as an investment adviser under this Section SB575 Engrossed -12- LRB9206482ARgc 1 unless and until each principal of the applicant who is 2 actively engaged in the conduct and management of the 3 applicant's advisory business in this State has passed an 4 examination or completed an educational program conducted 5 by the Secretary of State or an association of investment 6 advisers or similar person, which examination or 7 educational program has been designated by the Secretary 8 of State by rule, regulation or order to be satisfactory 9 for purposes of determining whether the applicant has 10 sufficient knowledge of the securities business and laws 11 relating thereto to conduct the business of a registered 12 investment adviser. 13 Any person who was a registered investment adviser 14 prior to September 30, 1963, and has continued to be so 15 registered, and any individual who has passed an 16 investment adviser examination administered by the 17 Secretary of State, or passed an examination or completed 18 an educational program designated by the Secretary of 19 State by rule, regulation or order to be satisfactory for 20 purposes of determining whether the applicant has 21 sufficient knowledge of the securities business and laws 22 relating thereto to conduct the business of a registered 23 investment adviser, shall not be required to pass an 24 examination or complete an educational program in order 25 to continue to act as an investment adviser. The 26 Secretary of State may by order waive the examination or 27 educational program requirement for any applicant for 28 registration under this subsection D if the principal of 29 the applicant who is actively engaged in the conduct and 30 management of the applicant's advisory business in this 31 State has had such experience or education relating to 32 the securities business as may be determined by the 33 Secretary of State to be the equivalent of the 34 examination or educational program. Any request for a SB575 Engrossed -13- LRB9206482ARgc 1 waiver shall be filed with the Secretary of State in such 2 form as may be prescribed by rule or regulation. 3 (10) No applicant shall be registered or 4 re-registered as an investment adviser under this Section 5 8 unless the application for registration or 6 re-registration is accompanied by an application for 7 registration or re-registration for each person acting as 8 an investment adviser representative on behalf of the 9 adviser and a Securities Audit and Enforcement Fund fee 10 that shall not be returnable in any event is paid with 11 respect to each investment adviser representative. 12 (11) The application for registration of an 13 investment adviser shall be accompanied by a filing fee 14 and a fee for each branch office in this State, in each 15 case in the amount established pursuant to Section 11a of 16 this Act, which fees shall not be returnable in any 17 event. 18 (12) The Secretary of State shall notify the 19 investment adviser by written notice (which may be by 20 electronic or facsimile transmission) of the 21 effectiveness of the registration as an investment 22 adviser in this State. 23 (13) Any change which renders no longer accurate 24 any information contained in any application for 25 registration or re-registration of an investment adviser 26 shall be reported to the Secretary of State within 10 27 business days after the occurrence of the change. In 28 respect to assets and liabilities of an investment 29 adviser that retains custody of clients' cash or 30 securities or accepts pre-payment of fees in excess of 31 $500 per client and 6 or more months in advance only 32 materially adverse changes need be reported by written 33 notice (which may be by electronic or facsimile 34 transmission) no later than the close of business on the SB575 Engrossed -14- LRB9206482ARgc 1 second business day following the discovery thereof. 2 (14) Each application for registration as an 3 investment adviser shall become effective automatically 4 on the 45th day following the filing of the application, 5 required documents or information, and payment of the 6 required fee unless (i) the Secretary of State has 7 registered the investment adviser prior to that date or 8 (ii) an action with respect to the applicant is pending 9 under Section 11 of this Act. 10 D-5. A registered investment adviser or federal covered 11 investment adviser desiring to register an investment 12 adviser representative shall file an application with the 13 Secretary of State, in the form as the Secretary of State may 14 by rule or order prescribe, which the investment adviser 15 representative is required by this Section to provide to the 16 investment adviser, executed, verified, or authenticated by 17 the investment adviser representative and setting forth or 18 accompanied by: 19 (1) The name, residence, and business address of 20 the investment adviser representative; 21 (2) A statement whether any federal or state 22 license or registration as a dealer, salesperson, 23 investment adviser, or investment adviser representative 24 has ever been refused, canceled, suspended, revoked or 25 withdrawn; 26 (3) The nature of employment with, and names and 27 addresses of, employers of the investment adviser 28 representative for the 10 years immediately preceding the 29 date of application; 30 (4) A brief description of any civil or criminal 31 proceedings, of which fraud is an essential element, 32 pending against the investment adviser representative and 33 whether the investment adviser representative has ever 34 been convicted of a felony or of any misdemeanor of which SB575 Engrossed -15- LRB9206482ARgc 1 fraud is an essential element; 2 (5) Such additional information as the Secretary of 3 State may by rule or order prescribe as necessary to 4 determine the investment adviser representative's 5 business repute or qualification to act as an investment 6 adviser representative; 7 (6) Documentation that the individual has passed an 8 examination conducted by the Secretary of State, an 9 organization of investment advisers, or similar person, 10 which examination has been designated by the Secretary of 11 State by rule or order to be satisfactory for purposes of 12 determining whether the applicant has sufficient 13 knowledge of the investment advisory or securities 14 business and laws relating to that business to act as a 15 registered investment adviser representative; and 16 (7) A Securities Audit and Enforcement Fund fee 17 established under Section 11a of this Act, which shall 18 not be returnable in any event. 19 The Secretary of State may by order waive the examination 20 requirement for an applicant for registration under this 21 subsection D-5 who has had the experience or education 22 relating to the investment advisory or securities business as 23 may be determined by the Secretary of State to be the 24 equivalent of the examination. A request for a waiver shall 25 be filed with the Secretary of State in the form as may be 26 prescribed by rule or order. 27 A change that renders no longer accurate any information 28 contained in any application for registration or 29 re-registration as an investment adviser representative must 30 be reported to the Secretary of State within 10 business days 31 after the occurrence of the change. If the activities that 32 rendered an individual an investment adviser representative 33 for the investment adviser are terminated, the investment 34 adviser shall notify the Secretary of State in writing (which SB575 Engrossed -16- LRB9206482ARgc 1 may be by electronic or facsimile transmission), within 30 2 days of the investment adviser representative's termination, 3 using the appropriate termination notice form as the 4 Secretary of State may prescribe by rule or order. 5 A registered investment adviser representative may 6 transfer his or her registration under this Section 8 for the 7 unexpired term of the registration from one registered 8 investment adviser to another by the giving of notice of the 9 transfer by the new investment adviser to the Secretary of 10 State in the form and subject to the conditions as the 11 Secretary of State shall prescribe. The new registered 12 investment adviser shall promptly file an application for 13 registration of the investment adviser representative as 14 provided in this subsection, accompanied by the Securities 15 Audit and Enforcement Fund fee prescribed by paragraph (7) of 16 this subsection D-5. 17 E. (1) Subject to the provisions of subsection F of 18 Section 11 of this Act, the registration of a dealer, limited 19 Canadian dealer, salesperson, investment adviser, or 20 investment adviser representative may be denied, suspended or 21 revoked if the Secretary of State finds that the dealer, 22 limited Canadian dealer, salesperson, investment adviser, or 23 investment adviser representative or any principal officer, 24 director, partner, member, trustee, manager or any person who 25 performs a similar function of the dealer, limited Canadian 26 dealer, or investment adviser: 27 (a) has been convicted of any felony during the 10 28 year period preceding the date of filing of any 29 application for registration or at any time thereafter, 30 or of any misdemeanor of which fraud is an essential 31 element; 32 (b) has engaged in any unethical practice in the 33 offer or sale of securities or in any fraudulent business 34 practice; SB575 Engrossed -17- LRB9206482ARgc 1 (c) has failed to account for any money or 2 property, or has failed to deliver any security, to any 3 person entitled thereto when due or within a reasonable 4 time thereafter; 5 (d) in the case of a dealer, limited Canadian 6 dealer, or investment adviser, is insolvent; 7 (e) in the case of a dealer, limited Canadian 8 dealer, salesperson, or registered principal of a dealer 9 or limited Canadian dealer (i) has failed reasonably to 10 supervise the securities activities of any of its 11 salespersons and the failure has permitted or facilitated 12 a violation of Section 12 of this Act or (ii) is offering 13 or selling or has offered or sold securities in this 14 State through a salesperson other than a registered 15 salesperson, or, in the case of a salesperson, is selling 16 or has sold securities in this State for a dealer, 17 limited Canadian dealer, issuer or controlling person 18 with knowledge that the dealer, limited Canadian dealer, 19 issuer or controlling person has not complied with the 20 provisions of this Act or (iii) has failed reasonably to 21 supervise the implementation of compliance measures 22 following notice by the Secretary of State of 23 noncompliance with the Act or with the regulations 24 promulgated thereunder or both or (iv) has failed to 25 maintain and enforce written procedures to supervise the 26 types of business in which it engages and to supervise 27 the activities of its salespersons that are reasonably 28 designed to achieve compliance with applicable securities 29 laws and regulations; 30 (f) in the case of an investment adviser, has 31 failed reasonably to supervise the advisory activities of 32 any of its investment adviser representatives or 33 employees and the failure has permitted or facilitated a 34 violation of Section 12 of this Act; SB575 Engrossed -18- LRB9206482ARgc 1 (g) has violated any of the provisions of this Act; 2 (h) has made any material misrepresentation to the 3 Secretary of State in connection with any information 4 deemed necessary by the Secretary of State to determine a 5 dealer's, limited Canadian dealer's, or investment 6 adviser's financial responsibility or a dealer's, limited 7 Canadian dealer's, investment adviser's, salesperson's, 8 or investment adviser representative's business repute or 9 qualifications, or has refused to furnish any such 10 information requested by the Secretary of State; 11 (i) has had a license or registration under any 12 Federal or State law regulating the offer or sale of 13 securities or commodity futures contracts, refused, 14 cancelled, suspended,orwithdrawn, revoked, or otherwise 15 adversely affected in a similar manner; 16 (j) hasbeen suspended or expelled from or refused17 had membership in or association withor limited in any18capacity byany self-regulatory organization registered 19 under the Federal 1934 Act or the Federal 1974 Act 20 suspended, revoked, refused, expelled, cancelled, barred, 21 limited in any capacity, or otherwise adversely affected 22 in a similar manner arising from any fraudulent or 23 deceptive act or a practice in violation of any rule, 24 regulation or standard duly promulgated by the 25 self-regulatory organization; 26 (k) has had any order entered against it after 27 notice and opportunity for hearing by a securities agency 28 of any state, any foreign government or agency thereof, 29 the Securities and Exchange Commission, or the Federal 30 Commodities Futures Trading Commission arising from any 31 fraudulent or deceptive act or a practice in violation of 32 any statute, rule or regulation administered or 33 promulgated by the agency or commission; 34 (l) in the case of a dealer or limited Canadian SB575 Engrossed -19- LRB9206482ARgc 1 dealer, fails to maintain a minimum net capital in an 2 amount which the Secretary of State may by rule or 3 regulation require; 4 (m) has conducted a continuing course of dealing of 5 such nature as to demonstrate an inability to properly 6 conduct the business of the dealer, limited Canadian 7 dealer, salesperson, investment adviser, or investment 8 adviser representative; 9 (n) has had, after notice and opportunity for 10 hearing, any injunction or order entered against it or 11 license or registration refused, cancelled, suspended, 12 revoked, withdrawn,orlimited, or otherwise adversely 13 affected in a similar manner by any state or federal 14 body, agency or commission regulating banking, insurance, 15 finance or small loan companies, real estate or mortgage 16 brokers or companies, if the action resulted from any act 17 found by the body, agency or commission to be a 18 fraudulent or deceptive act or practice in violation of 19 any statute, rule or regulation administered or 20 promulgated by the body, agency or commission; 21 (o) has failed to file a return, or to pay the tax, 22 penalty or interest shown in a filed return, or to pay 23 any final assessment of tax, penalty or interest, as 24 required by any tax Act administered by the Illinois 25 Department of Revenue, until such time as the 26 requirements of that tax Act are satisfied; 27 (p) in the case of a natural person who is a 28 dealer, limited Canadian dealer, salesperson, investment 29 adviser, or investment adviser representative, has 30 defaulted on an educational loan guaranteed by the 31 Illinois Student Assistance Commission, until the natural 32 person has established a satisfactory repayment record as 33 determined by the Illinois Student Assistance Commission; 34 (q) has failed to maintain the books and records SB575 Engrossed -20- LRB9206482ARgc 1 required under this Act or rules or regulations 2 promulgated under this Act within a reasonable time after 3 receiving notice of any deficiency; 4 (r) has refused to allow or otherwise impeded 5 designees of the Secretary of State from conducting an 6 audit, examination, inspection, or investigation provided 7 for under Section 8 or 11 of this Act; 8 (s) has failed to maintain any minimum net capital 9 or bond requirement set forth in this Act or any rule or 10 regulation promulgated under this Act; 11 (t) has refused the Secretary of State or his or 12 her designee access to any office or location within an 13 office to conduct an investigation, audit, examination, 14 or inspection; 15 (u) has advised or caused a public pension fund or 16 retirement system established under the Illinois Pension 17 Code to make an investment or engage in a transaction not 18 authorized by that Code;.19 (v) if a corporation, limited liability company, or 20 limited liability partnership has been suspended, 21 canceled, revoked, or has failed to register as a foreign 22 corporation, limited liability company, or limited 23 liability partnership with the Secretary of State; 24 (w) is permanently or temporarily enjoined by any 25 court of competent jurisdiction, including any state, 26 federal, or foreign government, from engaging in or 27 continuing any conduct or practice involving any aspect 28 of the securities or commodities business or in any other 29 business where the conduct or practice enjoined involved 30 investments, franchises, insurance, banking, or finance; 31 (2) If the Secretary of State finds that any registrant 32 or applicant for registration is no longer in existence or 33 has ceased to do business as a dealer, limited Canadian 34 dealer, salesperson, investment adviser, or investment SB575 Engrossed -21- LRB9206482ARgc 1 adviser representative, or is subject to an adjudication as a 2 person under legal disability or to the control of a 3 guardian, or cannot be located after reasonable search, or 4 has failed after written notice to pay to the Secretary of 5 State any additional fee prescribed by this Section or 6 specified by rule or regulation, or if a natural person, has 7 defaulted on an educational loan guaranteed by the Illinois 8 Student Assistance Commission, the Secretary of State may by 9 order cancel the registration or application. 10 (3) Withdrawal of an application for registration or 11 withdrawal from registration as a dealer, limited Canadian 12 dealer, salesperson, investment adviser, or investment 13 adviser representative becomes effective 30 days after 14 receipt of an application to withdraw or within such shorter 15 period of time as the Secretary of State may determine, 16 unless any proceeding is pending under Section 11 of this Act 17 when the application is filed or a proceeding is instituted 18 within 30 days after the application is filed. If a 19 proceeding is pending or instituted, withdrawal becomes 20 effective at such time and upon such conditions as the 21 Secretary of State by order determines. If no proceeding is 22 pending or instituted and withdrawal automatically becomes 23 effective, the Secretary of State may nevertheless institute 24 a revocation or suspension proceeding within 2 years after 25 withdrawal became effective and enter a revocation or 26 suspension order as of the last date on which registration 27 was effective. 28 F. The Secretary of State shall make available upon 29 request the date that each dealer, investment adviser, 30 salesperson, or investment adviser representative was granted 31 registration, together with the name and address of the 32 dealer, limited Canadian dealer, or issuer on whose behalf 33 the salesperson is registered, and all orders of the 34 Secretary of State denying or abandoning an application, or SB575 Engrossed -22- LRB9206482ARgc 1 suspending or revoking registration, or censuring the 2 persons. The Secretary of State may designate by rule, 3 regulation or order the statements, information or reports 4 submitted to or filed with him or her pursuant to this 5 Section 8 which the Secretary of State determines are of a 6 sensitive nature and therefore should be exempt from public 7 disclosure. Any such statement, information or report shall 8 be deemed confidential and shall not be disclosed to the 9 public except upon the consent of the person filing or 10 submitting the statement, information or report or by order 11 of court or in court proceedings. 12 G. The registration or re-registration of a dealer or 13 limited Canadian dealer and of all salespersons registered 14 upon application of the dealer or limited Canadian dealer 15 shall expire on the next succeeding anniversary date of the 16 registration or re-registration of the dealer; and the 17 registration or re-registration of an investment adviser and 18 of all investment adviser representatives registered upon 19 application of the investment adviser shall expire on the 20 next succeeding anniversary date of the registration of the 21 investment adviser; provided, that the Secretary of State may 22 by rule or regulation prescribe an alternate date which any 23 dealer registered under the Federal 1934 Act or a member of 24 any self-regulatory association approved pursuant thereto, a 25 member of a self-regulatory organization or stock exchange in 26 Canada, or any investment adviser may elect as the expiration 27 date of its dealer or limited Canadian dealer and salesperson 28 registrations, or the expiration date of its investment 29 adviser registration, as the case may be. A registration of 30 a salesperson registered upon application of an issuer or 31 controlling person shall expire on the next succeeding 32 anniversary date of the registration, or upon termination or 33 expiration of the registration of the securities, if any, 34 designated in the application for his or her registration or SB575 Engrossed -23- LRB9206482ARgc 1 the alternative date as the Secretary may prescribe by rule 2 or regulation. Subject to paragraph (9) of subsection C of 3 this Section 8, a salesperson's registration also shall 4 terminate upon cessation of his or her employment, or 5 termination of his or her appointment or authorization, in 6 each case by the person who applied for the salesperson's 7 registration, provided that the Secretary of State may by 8 rule or regulation prescribe an alternate date for the 9 expiration of the registration. 10 H. Applications for re-registration of dealers, limited 11 Canadian dealers, salespersons, investment advisers, and 12 investment adviser representatives shall be filed with the 13 Secretary of State prior to the expiration of the then 14 current registration and shall contain such information as 15 may be required by the Secretary of State upon initial 16 application with such omission therefrom or addition thereto 17 as the Secretary of State may authorize or prescribe. Each 18 application for re-registration of a dealer, limited Canadian 19 dealer, or investment adviser shall be accompanied by a 20 filing fee, each application for re-registration as a 21 salesperson shall be accompanied by a filing fee and a 22 Securities Audit and Enforcement Fund fee established 23 pursuant to Section 11a of this Act, and each application for 24 re-registration as an investment adviser representative shall 25 be accompanied by a Securities Audit and Enforcement Fund fee 26 established under Section 11a of this Act, which shall not be 27 returnable in any event. Notwithstanding the foregoing, 28 applications for re-registration of dealers, limited Canadian 29 dealers, and investment advisers may be filed within 30 days 30 following the expiration of the registration provided that 31 the applicant pays the annual registration fee together with 32 an additional amount equal to the annual registration fee and 33 files any other information or documents that the Secretary 34 of State may prescribe by rule or regulation or order. Any SB575 Engrossed -24- LRB9206482ARgc 1 application filed within 30 days following the expiration of 2 the registration shall be automatically effective as of the 3 time of the earlier expiration provided that the proper fee 4 has been paid to the Secretary of State. 5 Each registered dealer, limited Canadian dealer, or 6 investment adviser shall continue to be registered if the 7 registrant changes his, her, or its form of organization 8 provided that the dealer or investment adviser files an 9 amendment to his, her, or its application not later than 30 10 days following the occurrence of the change and pays the 11 Secretary of State a fee in the amount established under 12 Section 11a of this Act. 13 I. (1) Every registered dealer, limited Canadian dealer, 14 and investment adviser shall make and keep for such periods, 15 such accounts, correspondence, memoranda, papers, books and 16 records as the Secretary of State may by rule or regulation 17 prescribe. All records so required shall be preserved for 3 18 years unless the Secretary of State by rule, regulation or 19 order prescribes otherwise for particular types of records. 20 (2) Every registered dealer, limited Canadian dealer, 21 and investment adviser shall file such financial reports as 22 the Secretary of State may by rule or regulation prescribe. 23 (3) All the books and records referred to in paragraph 24 (1) of this subsection I are subject at any time or from time 25 to time to such reasonable periodic, special or other audits, 26 examinations, or inspections by representatives of the 27 Secretary of State, within or without this State, as the 28 Secretary of State deems necessary or appropriate in the 29 public interest or for the protection of investors. 30 (4) At the time of an audit, examination, or inspection, 31 the Secretary of State, by his or her designees, may conduct 32 an interview of any person employed or appointed by or 33 affiliated with a registered dealer, limited Canadian dealer, 34 or investment advisor, provided that the dealer, limited SB575 Engrossed -25- LRB9206482ARgc 1 Canadian dealer, or investment advisor shall be given 2 reasonable notice of the time and place for the interview. 3 At the option of the dealer, limited Canadian dealer, or 4 investment advisor, a representative of the dealer or 5 investment advisor with supervisory responsibility over the 6 individual being interviewed may be present at the interview. 7 J. The Secretary of State may require by rule or 8 regulation the payment of an additional fee for the filing of 9 information or documents required to be filed by this Section 10 which have not been filed in a timely manner. The Secretary 11 of State may also require by rule or regulation the payment 12 of an examination fee for administering any examination which 13 it may conduct pursuant to subsection B, C, D, or D-5 of this 14 Section 8. 15 K. The Secretary of State may declare any application 16 for registration or limited registration under this Section 8 17 abandoned by order if the applicant fails to pay any fee or 18 file any information or document required under this Section 19 8 or by rule or regulation for more than 30 days after the 20 required payment or filing date. The applicant may petition 21 the Secretary of State for a hearing within 15 days after the 22 applicant's receipt of the order of abandonment, provided 23 that the petition sets forth the grounds upon which the 24 applicant seeks a hearing. 25 L. Any document being filed pursuant to this Section 8 26 shall be deemed filed, and any fee being paid pursuant to 27 this Section 8 shall be deemed paid, upon the date of actual 28 receipt thereof by the Secretary of State or his or her 29 designee. 30 M. The Secretary of State shall provide to the Illinois 31 Student Assistance Commission annually or at mutually agreed 32 periodic intervals the names and social security numbers of SB575 Engrossed -26- LRB9206482ARgc 1 natural persons registered under subsections B, C, D, and D-5 2 of this Section. The Illinois Student Assistance Commission 3 shall determine if any student loan defaulter is registered 4 as a dealer, limited Canadian dealer, salesperson, or 5 investment adviser under this Act and report its 6 determination to the Secretary of State or his or her 7 designee. 8 (Source: P.A. 90-70, eff. 7-8-97; 90-507, eff. 8-22-97; 9 90-655, eff. 7-30-98; 91-809, eff. 1-1-01.) 10 (815 ILCS 5/11) (from Ch. 121 1/2, par. 137.11) 11 Sec. 11. Duties and powers of the Secretary of State. 12 A. (1) The administration of this Act is vested in the 13 Secretary of State, who may from time to time make, amend and 14 rescind such rules and regulations as may be necessary to 15 carry out this Act, including rules and regulations governing 16 procedures of registration, statements, applications and 17 reports for various classes of securities, persons and 18 matters within his or her jurisdiction and defining any 19 terms, whether or not used in this Act, insofar as the 20 definitions are not inconsistent with this Act. The rules 21 and regulations adopted by the Secretary of State under this 22 Act shall be effective in the manner provided for in the 23 Illinois Administrative Procedure Act. 24 (2) Among other things, the Secretary of State shall 25 have authority, for the purposes of this Act, to prescribe 26 the form or forms in which required information shall be set 27 forth, accounting practices, the items or details to be shown 28 in balance sheets and earning statements, and the methods to 29 be followed in the preparation of accounts, in the appraisal 30 or valuation of assets and liabilities, in the determination 31 of depreciation and depletion, in the differentiation of 32 recurring and non-recurring income, in the differentiation of 33 investment and operating income, and in the preparation of SB575 Engrossed -27- LRB9206482ARgc 1 consolidated balance sheets or income accounts of any person, 2 directly or indirectly, controlling or controlled by the 3 issuer, or any person under direct or indirect common control 4 with the issuer. 5 (3) No provision of this Act imposing any liability 6 shall apply to any act done or omitted in good faith in 7 conformity with any rule or regulation of the Secretary of 8 State under this Act, notwithstanding that the rule or 9 regulation may, after the act or omission, be amended or 10 rescinded or be determined by judicial or other authority to 11 be invalid for any reason. 12 (4) The Securities Department of the Office of the 13 Secretary of State shall be deemed a criminal justice agency 14 for purposes of all federal and state laws and regulations 15 and, in that capacity, shall be entitled to access to any 16 information available to criminal justice agencies. 17 (5) The Secretary of State, by rule, may conditionally 18 or unconditionally exempt any person, security, or 19 transaction, or any class or classes of persons, securities, 20 or transactions from any provision of Section 5, 6, 7, 8, 8a, 21 or 9 of this Act or of any rule promulgated under these 22 Sections, to the extent that such exemption is necessary or 23 appropriate in the public interest, and is consistent with 24 the protection of investors. 25 B. The Secretary of State may, anything in this Act to 26 the contrary notwithstanding, require financial statements 27 and reports of the issuer, dealer, salesperson, or investment 28 adviser as often as circumstances may warrant. In addition, 29 the Secretary of State may secure information or books and 30 records from or through others and may make or cause to be 31 made investigations respecting the business, affairs, and 32 property of the issuer of securities, any person involved in 33 the sale or offer for sale, purchase or offer to purchase of 34 any mineral investment contract, mineral deferred delivery SB575 Engrossed -28- LRB9206482ARgc 1 contract, or security and of dealers, salespersons, and 2 investment advisers that are registered or are the subject of 3 an application for registration under this Act. The costs of 4 an investigation shall be borne by the registrant or the 5 applicant, provided that the registrant or applicant shall 6 not be obligated to pay the costs without his, her or its 7 consent in advance. 8 C. Whenever it shall appear to the Secretary of State, 9 either upon complaint or otherwise, that this Act, or any 10 rule or regulation prescribed under authority thereof, has 11 been or is about to be violated, he or she may, in his or her 12 discretion, do one or both of the following: 13 (1) require or permit the person to file with the 14 Secretary of State a statement in writing under oath, or 15 otherwise, as to all the facts and circumstances 16 concerning the subject matter which the Secretary of 17 State believes to be in the public interest to 18 investigate, audit, examine, or inspect; and 19 (2) conduct an investigation, audit, examination, 20 or inspection as necessary or advisable for the 21 protection of the interests of the public. 22 D. (1) For the purpose of all investigations, audits, 23 examinations, or inspections which in the opinion of the 24 Secretary of State are necessary and proper for the 25 enforcement of this Act, the Secretary of State or a person 26 designated by him or her is empowered to administer oaths and 27 affirmations, subpoena witnesses, take evidence, and require, 28 by subpoena or other lawful means provided by this Act or the 29 rules adopted by the Secretary of State, the production of 30 any books and records, papers, or other documents which the 31 Secretary of State or a person designated by him or her deems 32 relevant or material to the inquiry. 33 (2) The Secretary of State or a person designated by him 34 or her is further empowered to administer oaths and SB575 Engrossed -29- LRB9206482ARgc 1 affirmations, subpoena witnesses, take evidence, and require 2 the production of any books and records, papers, or other 3 documents in this State at the request of a securities agency 4 of another state, if the activities constituting the alleged 5 violation for which the information is sought would be in 6 violation of Section 12 of this Act if the activities had 7 occurred in this State. 8 (3) The Circuit Court of any County of this State, upon 9 application of the Secretary of State or a person designated 10 by him or her may order the attendance of witnesses, the 11 production of books and records, papers, accounts and 12 documents and the giving of testimony before the Secretary of 13 State or a person designated by him or her; and any failure 14 to obey the order may be punished by the Circuit Court as a 15 contempt thereof. 16 (4) The fees of subpoenaed witnesses under this Act for 17 attendance and travel shall be the same as fees of witnesses 18 before the Circuit Courts of this State, to be paid when the 19 witness is excused from further attendance, provided, the 20 witness is subpoenaed at the instance of the Secretary of 21 State; and payment of the fees shall be made and audited in 22 the same manner as other expenses of the Secretary of State. 23 (5) Whenever a subpoena is issued at the request of a 24 complainant or respondent as the case may be, the Secretary 25 of State may require that the cost of service and the fee of 26 the witness shall be borne by the party at whose instance the 27 witness is summoned. 28 (6) The Secretary of State shall have power at his or 29 her discretion, to require a deposit to cover the cost of the 30 service and witness fees and the payment of the legal witness 31 fee and mileage to the witness served with subpoena. 32 (7) A subpoena issued under this Act shall be served in 33 the same manner as a subpoena issued out of a circuit court. 34 (8) The Secretary of State may in any investigation, SB575 Engrossed -30- LRB9206482ARgc 1 audits, examinations, or inspections cause the taking of 2 depositions of persons residing within or without this State 3 in the manner provided in civil actions under the laws of 4 this State. 5 E. Anything in this Act to the contrary notwithstanding: 6 (1) If the Secretary of State shall find that the 7 offer or sale or proposed offer or sale or method of 8 offer or sale of any securities by any person, whether 9 exempt or not, in this State, is fraudulent, or would 10 work or tend to work a fraud or deceit, or is being 11 offered or sold in violation of Section 12, or there has 12 been a failure or refusal to submit any notification 13 filing or fee required under this Act, the Secretary of 14 State may by written order prohibit or suspend the offer 15 or sale of securities by that person or deny or revoke 16 the registration of the securities or the exemption from 17 registration for the securities. 18 (2) If the Secretary of State shall find that any 19 person has violated subsection C, D, E, F, G, H, I, J, or 20 K of Section 12 of this Act, the Secretary of State may 21 by written order temporarily or permanently prohibit or 22 suspend the person from offering or selling any 23 securities, any mineral investment contract, or any 24 mineral deferred delivery contract in this State, 25 provided that any person who is the subject of an order 26 of permanent prohibition may petition the Secretary of 27 State for a hearing to present evidence of rehabilitation 28 or change in circumstances justifying the amendment or 29 termination of the order of permanent prohibition. 30 (3) If the Secretary of State shall find that any 31 person is engaging or has engaged in the business of 32 selling or offering for sale securities as a dealer or 33 salesperson or is acting or has acted as an investment 34 adviser, investment adviser representative, or federal SB575 Engrossed -31- LRB9206482ARgc 1 covered investment adviser, without prior thereto and at 2 the time thereof having complied with the registration or 3 notice filing requirements of this Act, the Secretary of 4 State may by written order prohibit or suspend the person 5 from engaging in the business of selling or offering for 6 sale securities, or acting as an investment adviser, 7 investment adviser representative, or federal covered 8 investment adviser, in this State. 9 (4) In addition to any other sanction or remedy 10 contained in this subsection E, the Secretary of State, 11 after finding that any provision of this Act has been 12 violated, may impose a fine as provided by rule, 13 regulation or order not to exceed $10,000 for each 14 violation of this Act,andmay issue an order of public 15 censure against the violator, and may charge as costs of 16 investigation all reasonable expenses, including 17 attorney's fees and witness fees. 18 F. (1) The Secretary of State shall not deny, suspend or 19 revoke the registration of securities, suspend or revoke the 20 registration of a dealer, salesperson or investment adviser, 21 prohibit or suspend the offer or sale of any securities, 22 prohibit or suspend any person from offering or selling any 23 securities in this State, prohibit or suspend a dealer or 24 salesperson from engaging in the business of selling or 25 offering for sale securities, prohibit or suspend a person 26 from acting as an investment adviser or federal covered 27 investment adviser, impose any fine for violation of this 28 Act, issue an order of public censure, or enter into an 29 agreed settlement except after an opportunity for hearing 30 upon not less than 10 days notice given by personal service 31 or registered mail or certified mail, return receipt 32 requested, to the person or persons concerned. Such notice 33 shall state the date and time and place of the hearing and 34 shall contain a brief statement of the proposed action of the SB575 Engrossed -32- LRB9206482ARgc 1 Secretary of State and the grounds for the proposed action. 2 A failure to appear at the hearing or otherwise respond to 3 the allegations set forth in the notice of hearing shall 4 constitute an admission of any facts alleged therein and 5 shall constitute sufficient basis to enter an order. 6 (2) Anything herein contained to the contrary 7 notwithstanding, the Secretary of State may temporarily 8 prohibit or suspend, for a maximum period of 90 days, by an 9 order effective immediately, the offer or sale or 10 registration of securities, the registration of a dealer, 11 salesperson, investment adviser, or investment adviser 12 representative, or the offer or sale of securities by any 13 person, or the business of rendering investment advice, 14 without the notice and prior hearing in this subsection 15 prescribed, if the Secretary of State shall in his or her 16 opinion, based on credible evidence, deem it necessary to 17 prevent an imminent violation of this Act or to prevent 18 losses to investors which the Secretary of State reasonably 19 believes will occur as a result of a prior violation of this 20 Act. Immediately after taking action without such notice and 21 hearing, the Secretary of State shall deliver a copy of the 22 temporary order to the respondent named therein by personal 23 service or registered mail or certified mail, return receipt 24 requested. The temporary order shall set forth the grounds 25 for the action and shall advise that the respondent may 26 request a hearingas soon as reasonably practicable, that the 27 request for a hearing will not stop the effectiveness of the 28 temporary order and that respondent's failure to request a 29 hearing within 30 days after the date of the entry of the 30 temporary order shall constitute an admission of any facts 31 alleged therein and shall constitute sufficient basis to make 32 the temporary order final. Any provision of this paragraph 33 (2) to the contrary notwithstanding, the Secretary of State 34 may not pursuant to the provisions of this paragraph (2) SB575 Engrossed -33- LRB9206482ARgc 1 suspend the registration of a dealer, limited Canadian 2 dealer, salesperson, investment adviser, or investment 3 adviser representative based upon sub-paragraph (n) of 4 paragraph (l) of subsection E of Section 8 of this Act or 5 revoke the registration of securities or revoke the 6 registration of any dealer, salesperson, investment adviser 7 representative, or investment adviser. 8 (3) The Secretary of State may issue a temporary order 9 suspending or delaying the effectiveness of any registration 10 of securities under subsection A or B of Section 5, 6 or 7 of 11 this Act subsequent to and upon the basis of the issuance of 12 any stop, suspension or similar order by the Securities and 13 Exchange Commission with respect to the securities which are 14 the subject of the registration under subsection A or B of 15 Section 5, 6 or 7 of this Act, and the order shall become 16 effective as of the date and time of effectiveness of the 17 Securities and Exchange Commission order and shall be vacated 18 automatically at such time as the order of the Securities and 19 Exchange Commission is no longer in effect. 20 (4) When the Secretary of State finds that an 21 application for registration as a dealer, salesperson or 22 investment adviser should be denied, the Secretary of State 23 may enter an order denying the registration. Immediately 24 after taking such action, the Secretary of State shall 25 deliver a copy of the order to the respondent named therein 26 by personal service or registered mail or certified mail, 27 return receipt requested. The order shall state the grounds 28 for the action and that the matter will be set for hearing 29 upon written request filed with the Secretary of State within 30 30 days after the receipt of the request by the respondent. 31 The respondent's failure to request a hearing within 30 days 32 after receipt of the order shall constitute an admission of 33 any facts alleged therein and shall make the order final. If 34 a hearing is held, the Secretary of State shall affirm, SB575 Engrossed -34- LRB9206482ARgc 1 vacate, or modify the order. 2 (5) The findings and decision of the Secretary of State 3 upon the conclusion of each final hearing held pursuant to 4 this subsection shall be set forth in a written order signed 5 on behalf of the Secretary of State by his or her designee 6 and shall be filed as a public record. All hearings shall be 7 held before a person designated by the Secretary of State, 8 and appropriate records thereof shall be kept. 9 (6) Notwithstanding the foregoing, the Secretary of 10 State, after notice and opportunity for hearing, may at his 11 or her discretion enter into an agreed settlement, 12 stipulation or consent order with a respondent in accordance 13 with the provisions of the Illinois Administrative Procedure 14 Act. The provisions of the agreed settlement, stipulation or 15 consent order shall have the full force and effect of an 16 order issued by the Secretary of State. 17 (7) Anything in this Act to the contrary 18 notwithstanding, whenever the Secretary of State finds that a 19 person is currently expelled from, refused membership in or 20 association with, or limited in any material capacity by a 21 self-regulatory organization registered under the Federal 22 1934 Act or the Federal 1974 Act because of a fraudulent or 23 deceptive act or a practice in violation of a rule, 24 regulation, or standard duly promulgated by the 25 self-regulatory organization, the Secretary of State may, at 26 his or her discretion, enter a Summary Order of Prohibition, 27 which shall prohibit the offer or sale of any securities, 28 mineral investment contract, or mineral deferred delivery 29 contract by the person in this State. The order shall take 30 effect immediately upon its entry. Immediately after taking 31 the action the Secretary of State shall deliver a copy of the 32 order to the named Respondent by personal service or 33 registered mail or certified mail, return receipt requested. 34 A person who is the subject of an Order of Prohibition may SB575 Engrossed -35- LRB9206482ARgc 1 petition the Secretary of State for a hearing to present 2 evidence of rehabilitation or change in circumstances 3 justifying the amendment or termination of the Order of 4 Prohibition. 5 G. No administrative action shall be brought by the 6 Secretary of State for relief under this Act or upon or 7 because of any of the matters for which relief is granted by 8 this Act after the earlier to occur of (i) 3 years from the 9 date upon which the Secretary of State had notice of facts 10 which in the exercise of reasonable diligence would lead to 11 actual knowledge of the alleged violation of the Act, or (ii) 12 5 years from the date on which the alleged violation 13 occurred. 14 H. The action of the Secretary of State in denying, 15 suspending, or revoking the registration of a dealer, limited 16 Canadian dealer, salesperson, investment adviser, or 17 investment adviser representative, in prohibiting any person 18 from engaging in the business of offering or selling 19 securities as a dealer, limited Canadian dealer, or 20 salesperson, in prohibiting or suspending the offer or sale 21 of securities by any person, in prohibiting a person from 22 acting as an investment adviser, federal covered investment 23 adviser, or investment adviser representative, in denying, 24 suspending, or revoking the registration of securities, in 25 prohibiting or suspending the offer or sale or proposed offer 26 or sale of securities, in imposing any fine for violation of 27 this Act, or in issuing any order shall be subject to 28 judicial review in the Circuit CourtsCourtof Cook or 29 SangamonanyCountiescountyin this State. The 30 Administrative Review Law shall apply to and govern every 31 action for the judicial review of final actions or decisions 32 of the Secretary of State under this Act. 33 I. Notwithstanding any other provisions of this Act to 34 the contrary, whenever it shall appear to the Secretary of SB575 Engrossed -36- LRB9206482ARgc 1 State that any person is engaged or about to engage in any 2 acts or practices which constitute or will constitute a 3 violation of this Act or of any rule or regulation prescribed 4 under authority of this Act, the Secretary of State may at 5 his or her discretion, through the Attorney General: 6 (1) file a complaint and apply for a temporary 7 restraining order without notice, and upon a proper 8 showing the court may enter a temporary restraining order 9 without bond, to enforce this Act; and 10 (2) file a complaint and apply for a preliminary or 11 permanent injunction, and, after notice and a hearing and 12 upon a proper showing, the court may grant a preliminary 13 or permanent injunction and may order the defendant to 14 make an offer of rescission with respect to any sales or 15 purchases of securities, mineral investment contracts, or 16 mineral deferred delivery contracts determined by the 17 court to be unlawful under this Act. 18 The court shall further have jurisdiction and authority, 19 in addition to the penalties and other remedies in this Act 20 provided, to enter an order for the appointment of the court 21 or a person as a receiver, conservator, ancillary receiver or 22 ancillary conservator for the defendant or the defendant's 23 assets located in this State, or to require restitution, 24 damages or disgorgement of profits on behalf of the person or 25 persons injured by the act or practice constituting the 26 subject matter of the action, and may assess costs against 27 the defendant for the use of the State; provided, however, 28 that the civil remedies of rescission and appointment of a 29 receiver, conservator, ancillary receiver or ancillary 30 conservator shall not be available against any person by 31 reason of the failure to file with the Secretary of State, or 32 on account of the contents of, any report of sale provided 33 for in subsection G or P of Section 4, paragraph (2) of 34 subsection D of Sections 5 and 6, or paragraph (2) of SB575 Engrossed -37- LRB9206482ARgc 1 subsection F of Section 7 of this Act. Appeals may be taken 2 as in other civil cases. 3 J. In no case shall the Secretary of State, or any of 4 his or her employees or agents, in the administration of this 5 Act, incur any official or personal liability by instituting 6 an injunction or other proceeding or by denying, suspending 7 or revoking the registration of a dealer or salesperson, or 8 by denying, suspending or revoking the registration of 9 securities or prohibiting the offer or sale of securities, or 10 by suspending or prohibiting any person from acting as a 11 dealer, limited Canadian dealer, salesperson, investment 12 adviser, or investment adviser representative or from 13 offering or selling securities. 14 K. No provision of this Act shall be construed to 15 require or to authorize the Secretary of State to require any 16 investment adviser or federal covered investment adviser 17 engaged in rendering investment supervisory services to 18 disclose the identity, investments, or affairs of any client 19 of the investment adviser or federal covered investment 20 adviser, except insofar as the disclosure may be necessary or 21 appropriate in a particular proceeding or investigation 22 having as its object the enforcement of this Act. 23 L. Whenever, after an examination, investigation or 24 hearing, the Secretary of State deems it of public interest 25 or advantage, he or she may certify a record to the State's 26 Attorney of the county in which the act complained of, 27 examined or investigated occurred. The State's Attorney of 28 that county within 90 days after receipt of the record shall 29 file a written statement at the Office of the Secretary of 30 State, which statement shall set forth the action taken upon 31 the record, or if no action has been taken upon the record 32 that fact, together with the reasons therefor, shall be 33 stated. 34 M. The Secretary of State may initiate, take, pursue, or SB575 Engrossed -38- LRB9206482ARgc 1 prosecute any action authorized or permitted under Section 6d 2 of the Federal 1974 Act. 3 N. (1) Notwithstanding any provision of this Act to the 4 contrary, to encourage uniform interpretation, 5 administration, and enforcement of the provisions of this 6 Act, the Secretary of State may cooperate with the securities 7 agencies or administrators of one or more states, Canadian 8 provinces or territories, or another country, the Securities 9 and Exchange Commission, the Commodity Futures Trading 10 Commission, the Securities Investor Protection Corporation, 11 any self-regulatory organization, and any governmental law 12 enforcement or regulatory agency. 13 (2) The cooperation authorized by paragraph (1) of this 14 subsection includes, but is not limited to, the following: 15 (a) establishing or participating in a central 16 depository or depositories for registration under this 17 Act and for documents or records required under this Act; 18 (b) making a joint audit, inspection, examination, 19 or investigation; 20 (c) holding a joint administrative hearing; 21 (d) filing and prosecuting a joint civil or 22 criminal proceeding; 23 (e) sharing and exchanging personnel; 24 (f) sharing and exchanging information and 25 documents; or 26 (g) issuing any joint statement or policy. 27 (Source: P.A. 90-70, eff. 7-8-97; 91-809, eff. 1-1-01.) 28 (815 ILCS 5/14) (from Ch. 121 1/2, par. 137.14) 29 Sec. 14. Sentence. 30 A. Any person who violates any of the provisions of 31 subsection A, B, C, or D of Section 12 or paragraph (3) of 32 subsection K of Section 12 of this Act shall be guilty of a 33 Class 4 felony.A misdemeanor; provided that if such personSB575 Engrossed -39- LRB9206482ARgc 1commits such offense with knowledge of the existence, meaning2or application of the respective subsection as provided in3Section 4-3(c) of the Criminal Code of 1961, or, in the case4of a failure to comply with the terms of any order of the5Secretary of State as provided under subsection D of Section612 of this Act, with knowledge of the existence of such7order, such person shall be guilty of a Class 4 felony.8 B. Any person who violates any of the provisions of 9 subsection E, F, G, H, I, or J, or paragraph (1) or (2) of 10 subsection K of Section 12 of this Act shall be guilty of a 11 Class 3 felony. 12 B-5. A person who violates a provision of subsection E, 13 F, G, H, I, or J or paragraph (1) or (2) of subsection K of 14 Section 12 of this Act by use of a plan, program, or campaign 15 that is conducted using one or more telephones for the 16 purpose of inducing the purchase or sale of securities is 17 guilty of a Class 2 felony. 18 B-10. A person who in the course of violating a 19 provision of subsection E, F, G, H, I, or J or paragraph (1) 20 or (2) of subsection K of Section 12 of this Act induces a 21 person 60 years of age or older to purchase or sell 22 securities is guilty of a Class 2 felony. 23 C. No prosecution for violation of any provision of this 24 Act shall bar or be barred by any prosecution for the 25 violation of any other provision of this Act or of any other 26 statute; but all prosecutions under this Act or based upon 27 any provision of this Act must be commenced within 3 years 28 after the violation upon which such prosecution is based; 29 provided however, that if the accused has intentionally 30 concealed evidence of a violation of subsection E, F, G, H, 31 I, J, or K of Section 12 of this Act, the period of 32 limitation prescribed herein shall be extended up to an 33 additional 2 years after the proper prosecuting officer 34 becomes aware of the offense but in no such event shall the SB575 Engrossed -40- LRB9206482ARgc 1 period of limitation so extended be more than 2 years beyond 2 the expiration of the period otherwise applicable. 3 D. For the purposes of this Act all persons who shall 4 sell or offer for sale, or who shall purchase or offer to 5 purchase, securities in violation of the provisions of this 6 Act, or who shall in any manner knowingly authorize, aid or 7 assist in any unlawful sale or offering for sale or unlawful 8 purchase or offer to purchase shall be deemed equally guilty, 9 and may be tried and punished in the county in which said 10 unlawful sale or offering for sale or unlawful purchase or 11 offer to purchase was made, or in the county in which the 12 securities so sold or offered for sale or so purchased or 13 offered to be purchased were delivered or proposed to be 14 delivered to the purchaser thereof or by the seller thereof, 15 as the case may be. 16 E. Any person who shall be convicted of a second or any 17 subsequent offense specified in subsection A, B, C, D, or 18 paragraph (3) of subsection K of Section 12 of this Act shall 19 be guilty of a Class 3 felony, and any person who shall be 20 convicted of a second or any subsequent offense specified in 21 subsection E, F, G, H, I, J, or paragraph (1) or (2) of 22 subsection K of Section 12 of this Act shall be guilty of a 23 Class 2 felony. 24 F. If any person referred to in this Section is not a 25 natural person, it may upon conviction of a first offense be 26 fined up to $25,000, and if convicted of a second and 27 subsequent offense, may be fined up to $50,000, in addition 28 to any other sentence authorized by law. 29 G. This Act shall not be construed to repeal or affect 30 any law now in force relating to the organization of 31 corporations in this State or the admission of any foreign 32 corporation to do business in this State. 33 H. For the purposes of this Act, all persons who sell or 34 offer for sale, or who purchase or offer to purchase any SB575 Engrossed -41- LRB9206482ARgc 1 mineral investment contract or mineral deferred delivery 2 contract in violation of the provisions of this Act or who, 3 in any manner, knowingly authorize, aid, or assist in any 4 unlawful sale or offer for sale or unlawful purchase or offer 5 to purchase any mineral investment contract or mineral 6 deferred delivery contract shall be deemed equally guilty and 7 may be tried and punished in the county in which the unlawful 8 sale or offer for sale or unlawful purchase or offer to 9 purchase any mineral investment contract or mineral deferred 10 delivery contract was made or in the county in which the 11 mineral investment contract or mineral deferred delivery 12 contract so sold or offered for sale or so purchased or 13 offered to be purchased was delivered or proposed to be 14 delivered to the purchaser thereof or by the seller thereof, 15 as the case may be, or in Sangamon County. 16 (Source: P.A. 90-667, eff. 7-30-98.) 17 Section 10. The Illinois Loan Brokers Act of 1995 is 18 amended by changing Sections 15-5.15, 15-5.20, 15-20, 15-25, 19 15-45, 15-50, 15-85 and by adding Section 15-95 as follows: 20 (815 ILCS 175/15-5.15) 21 Sec. 15-5.15. Loan broker. 22 (a) "Loan Broker" means any person who, in return for a 23 fee, commission, or other compensation from any person, 24 promises to procure a loan for any person or assist any 25 person in procuring a loan from any third party, or who 26 promises to consider whether or not to make a loan to any 27 person. 28 (b) Loan broker does not include any of the following: 29 (1) Any bank, savings bank, trust company, savings 30 and loan association, credit union or any other financial 31 institution regulated by any agency of the United States 32 or authorized to do business in this State. SB575 Engrossed -42- LRB9206482ARgc 1 (2) Any person authorized to sell and service loans 2 for the federal National Mortgage Association or the 3 federal Home Loan Mortgage Corporation, issue securities 4 backed by the Government National Mortgage Association, 5 make loans insured by the federal Department of Housing 6 and Urban Development, make loans guaranteed by the 7 federal Veterans Administration, or act as a 8 correspondent of loans insured by the federal Department 9 of Housing and Urban Development or guaranteed by the 10 federal Veterans Administration. 11 (3) Any insurance producer or company authorized to 12 do business in this State. 13 (4) Any person arranging financing for the sale of 14 the person's product. 15 (5) Any person authorized to conduct business under 16 the Residential Mortgage License Act of 1987. 17 (6) Any person authorized to do business in this 18 State and regulated by the Department of Financial 19 Institutions or the Office of Banks and Real Estate. 20 (Source: P.A. 89-209, eff. 1-1-96; 89-508, eff. 7-3-96.) 21 (815 ILCS 175/15-5.20) 22 Sec. 15-5.20. Person. "Person" means an individual, a 23 corporation, trust, limited liability company, partnership, a 24 joint stock company, limited liability partnership, 25 incorporated or unincorporated association, or any other 26 entity. 27 (Source: P.A. 89-209, eff. 1-1-96.) 28 (815 ILCS 175/15-20) 29 Sec. 15-20. Renewal of registration. 30 (a) A loan broker may not continue engaging in the 31 business of loan brokering unless the broker's registration 32 is renewed annually. A loan broker shall renew the SB575 Engrossed -43- LRB9206482ARgc 1 registration by filing with the Secretary of State, at least 2 30 days before the expiration of the registration, an 3 application containing any information the Secretary of State 4 may require by rule or regulation or order to indicate any 5 material change from the information contained in the 6 applicant's original application or any previous application. 7 (b) An application for renewal must be accompanied by a 8 filing fee in the amount specified in subsection (a) of 9 Section 15-25 of this Act. The application and fee is not 10 returnable in any event. 11 (c) Notwithstanding the foregoing, applications for 12 renewal of registration of loan brokers may be filed within 13 30 days following the expiration of the registration 14 provided that the applicant pays the annual registration fee 15 together with an additional amount equal to the annual 16 registration fee and files any other information or 17 documents that the Secretary of State may prescribe by 18 rule or order. Any application filed within 30 days 19 following the expiration of the registration shall be 20 automatically effective as of the time of the earlier 21 expiration provided that the proper fee has been paid to the 22 Secretary of State. 23 (Source: P.A. 89-209, eff. 1-1-96.) 24 (815 ILCS 175/15-25) 25 Sec. 15-25. Fees and funds; accounting and deposit in 26 Securities Audit and Enforcement Fund. 27 (a) the Secretary of State shall by rule or regulation 28 impose and shall collect fees necessary for the 29 administration of this Act including, but not limited to, 30 fees for the following purposes: 31 (1) filing an application pursuant to Section 15-15 32 of this Act; 33 (2) examining an application pursuant to Section SB575 Engrossed -44- LRB9206482ARgc 1 15-15 or Section 15-20 of this Act; 2 (3) registering a loan broker pursuant to Section 3 15-15 of this Act; 4 (4) renewing registration of a loan broker pursuant 5 to Section 15-20 of this Act;or6 (5) failure to file or file timely any document or 7 information required under this Act;.8 (6) acceptance of service of process pursuant to 9 Section 15-95; 10 (7) issuance of certification pursuant to Section 11 15-50; or 12 (8) late registration fee pursuant to Section 13 15-20(c). 14 (b) The Secretary of State may, by rule or regulation, 15 raise or lower any fee imposed by this Act, and which he or 16 she is authorized by law to collect under this Act. 17 (c) All fees and funds accruing for the administration 18 of this Act shall be accounted for by the Secretary of State 19 and shall be deposited with the State Treasurer who shall 20 deposit them in the Securities Audit and Enforcement Fund. 21 (Source: P.A. 89-209, eff. 1-1-96.) 22 (815 ILCS 175/15-45) 23 Sec. 15-45. Powers of Secretary of State; privilege 24 against self-incrimination; admissibility into evidence. 25 (a) The Secretary of State may do the following: 26 (1) Adopt rules and regulations to implement this 27 Act. 28 (2) Make investigations and examinations: 29 (A) in connection with any application for 30 registration of any loan broker or any registration 31 already granted; or 32 (B) whenever it appears to the Secretary of 33 State, upon the basis of a complaint or information, SB575 Engrossed -45- LRB9206482ARgc 1 that reasonable grounds exist for the belief that an 2 investigation or examination is necessary or 3 advisable for the more complete protection of the 4 interests of the public. 5 (3) Charge as costs of investigation or examination 6 all reasonable expenses, including a per diem prorated 7 upon the salary of any employee and actual traveling and 8 hotel expenses. All reasonable expenses are to be paid 9 by the party or parties under investigation or 10 examination. 11 (4) Issue notices and orders, including cease and 12 desist notices and orders, after making an investigation 13 or examination under item (2) of subsection (a) of this 14 Section. The Secretary of State may also bring an action 15 to prohibit a person from violating this Act. The 16 Secretary of State shall notify the person that an order 17 or notice has been issued, the reasons for it and that a 18 hearing will be set in accordance with the provisions of 19 the Illinois Administrative Procedure Act after the 20 Secretary of State receives a written request from the 21 person requesting a hearing. 22 (5) Sign all orders, official certifications, 23 documents or papers issued under this Act or delegate the 24 authority to sign any of those items to his or her 25 designee. 26 (6) Hold and conduct hearings. 27 (7) Hear evidence. 28 (8) Conduct inquiries with or without hearings. 29 Inquiries shall include oral and written requests for 30 information. A failure to respond to a written request 31 for information may be deemed a violation of this Act 32 and the Secretary of State may issue notices and orders, 33 including cease and desist notices and orders, against 34 the violators. SB575 Engrossed -46- LRB9206482ARgc 1 (9) Receive reports of investigators or other 2 officers or employees of the State of Illinois or any 3 municipal corporation or governmental subdivision within 4 the State. 5 (10) (Blank).Administer oaths or cause them to be6administered.7 (11) (Blank).Subpoena witnesses and compel them to8attend and testify.9 (12) (Blank).Compel the production of books,10records and other documents.11 (13) Order depositions to be taken of any witness 12 residing within or without the State. The depositions 13 shall be taken in the manner prescribed by law for 14 depositions in civil actions and made returnable to the 15 Secretary of State. 16 (14) For the purpose of all investigations, audits, 17 examinations, or inspections that, in the opinion of the 18 Secretary of State are necessary and proper for the 19 enforcement of this Act, the Secretary of State or a 20 person designated by him or her is empowered to 21 administer oaths and affirmations, subpoena witnesses, 22 take evidence, and require by subpoena or other lawful 23 means provided by this Act or the rules adopted by the 24 Secretary of State the production of any books and 25 records, papers, or other documents that the Secretary 26 of State or a person designated by him or her deems 27 relevant or material to the inquiry. 28 (b) If any person refuses to obey a subpoena issued 29 under this Act, the Secretary of State may make application 30 to any court of competent jurisdiction to order the person to 31 appear before the Secretary of State and produce documentary 32 evidence or give evidence as directed in the subpoena. The 33 failure to obey the order of the court shall be subject to 34 punishment by the court as contempt of court. SB575 Engrossed -47- LRB9206482ARgc 1 (c) No person shall be excused from complying with a 2 subpoena on the ground that the testimony or evidence 3 required may tend to incriminate the person or subject the 4 person to a penalty or forfeiture. No individual may be 5 prosecuted or subject to any penalty or forfeiture for or on 6 account of any transaction, matter or thing which the 7 individual is compelled to testify or produce evidence, after 8 claiming the privilege against self-incrimination. However, 9 the individual so testifying shall not be exempt from 10 prosecution and punishment for perjury committed in so 11 testifying. 12 (d) In any prosecution, action, suit or proceeding based 13 upon or arising out of this Act, the Secretary of State may 14 sign a certificate showing compliance or non-compliance with 15 this Act by any loan broker. This shall constitute prima 16 facie evidence of compliance or non-compliance with this Act 17 and shall be admissible in evidence in any court. 18 (e) Whenever it shall appear to the Secretary of State 19 that any person is engaged or about to engage in any acts or 20 practices which constitute or will constitute a violation of 21 this Act, or of any rule or regulation prescribed under 22 authority of this Act, the Secretary of State may at his or 23 her discretion, through the Attorney General: 24 (1) File a complaint and apply for a temporary 25 restraining order without notice, and upon a proper 26 showing the court may enter a temporary restraining order 27 without a bond, to enforce this Act. 28 (2) File a complaint and apply for a preliminary or 29 permanent injunction, and, after notice and hearing and 30 upon a proper showing, the court may grant a preliminary 31 or permanent injunction and may order the defendant to 32 make an offer of rescission with respect to any contract 33 for loan brokerage services determined by the court to be 34 unlawful under this Act. SB575 Engrossed -48- LRB9206482ARgc 1 (f) The court shall further have jurisdiction and 2 authority, in addition to the penalties and other remedies in 3 this Act provided, to enter an order for the appointment of 4 the court or a person as a receiver, conservator, ancillary 5 receiver or ancillary conservator for the defendant or the 6 defendant's assets located in this State, or to require 7 restitution, damages or disgorgement of profits on behalf of 8 the person or persons injured by the act or practice 9 constituting the subject matter of the action, and may assess 10 costs and attorneys fees against the defendant for the use of 11 the State. 12 (Source: P.A. 90-70, eff. 7-8-97; 91-357, eff. 7-29-99.) 13 (815 ILCS 175/15-50) 14 Sec. 15-50. Evidentiary matters. 15 (a) Certified copies of documents or records admissible 16 in actions or proceedings under this Act. Copies of any 17 statement or document filed with the Secretary of State, and 18 copies of any records of the Secretary of State, certified to 19 by the Secretary of State are admissible in any prosecution, 20 action, suit or proceeding based upon, or arising out of or 21 under, the provisions of this Act to the same effect as the 22 original of the statement, document or record would be if 23 actually produced. 24 (b) In any action, administrative, civil, or criminal, a 25 certificate under the seal of the State of Illinois, signed 26 by the Secretary of State, attesting to the filing of 27 or the absence of the filing of any document or record with 28 the Secretary of State under this Act, shall constitute 29 prima facie evidence of the filing or of the absence of the 30 filing, and shall be admissible in evidence in any 31 administrative, criminal, or civil action. 32 (c) Any certificate pursuant to subsection (a) or (b) of 33 this Section shall be furnished by the Secretary of State SB575 Engrossed -49- LRB9206482ARgc 1 upon application therefor in the form and in the manner 2 prescribed by the Secretary of State by rule, and shall be 3 accompanied by payment of a non-refundable certification 4 fee in the amount specified by rule or order of the 5 Secretary of State. 6 (Source: P.A. 89-209, eff. 1-1-96.) 7 (815 ILCS 175/15-85) 8 Sec. 15-85. Fraudulent and prohibited acts. 9 (a) A loan broker shall not, in connection with a 10 contract for the services of a loan broker, either directly 11 or indirectly, do any of the following: 12 (1)(a)Employ any device, scheme or article to 13 defraud. 14 (2)(b)Make any untrue statements of a material 15 fact or omit to state a material fact necessary in order 16 to make the statements made, in the light of 17 circumstances under which they are made, not misleading. 18 (3)(c)Engage in any act, practice or course of 19 business that operates or would operate as a fraud or 20 deceit upon any person. 21 (b) A loan broker shall not either directly or 22 indirectly do any of the following: 23 (1) act as a loan broker without registration under 24 this Act unless exempt under the Act; 25 (2) fail to file with the Secretary of State any 26 application, report, document, or answer required to be 27 filed under the provisions of this Act or any rule made 28 by the Secretary of State pursuant to this Act, or fail 29 to comply with the terms of any order issued pursuant to 30 this Act or any rules made by the Secretary of State; 31 (3) fail to keep or maintain any records as required 32 under the provisions of this Act or any rule made by the 33 Secretary of State pursuant to this Act. SB575 Engrossed -50- LRB9206482ARgc 1 (Source: P.A. 89-209, eff. 1-1-96.) 2 (815 ILCS 175/15-95 new) 3 Sec. 15-95. Service of process. 4 (a) A person acting as a loan broker, unless exempt from 5 registration under this Act, shall constitute an appointment 6 of the Secretary of State, or his or her successors in 7 Office, by the person to be the true and lawful attorney for 8 the person upon whom may be served all lawful process in any 9 action or proceeding against the person, arising out of his 10 or her activities as a loan broker. 11 (b) Service of process under this Section shall be made 12 by serving a copy upon the Secretary of State or any employee 13 in his or her Office designated by the Secretary of State to 14 accept such service for him or her, provided notice and a 15 copy of the process are, within 10 days of receipt, sent by 16 registered mail or certified mail, return receipt requested, 17 by the plaintiff to the defendant, at the last known address 18 of the defendant. The filing fee for service of process 19 under this Section is non-refundable and is the amount 20 established in Section 15-25 of this Act. The Secretary of 21 State shall keep a record of all such processes that shall 22 show the day of the service. 23 Section 15. The Illinois Business Brokers Act of 1995 is 24 amended by changing Sections 10-5.20, 10-20, 10-25, 10-40, 25 10-45, 10-50, 10-55, 10-85 and by adding Section 10-125 as 26 follows: 27 (815 ILCS 307/10-5.20) 28 Sec. 10-5.20. Person. "Person" means an individual, a 29 corporation, a partnership, an association, a joint stock 30 company, a limited liability company, a limited liability 31 partnership, a trust,orany unincorporated organization, or SB575 Engrossed -51- LRB9206482ARgc 1 any other entity. 2 (Source: P.A. 89-209, eff. 1-1-96.) 3 (815 ILCS 307/10-20) 4 Sec. 10-20. Renewal of registration. 5 (a) A business broker may not continue engaging in the 6 business of business brokering unless the broker's 7 registration is renewed annually. A business broker shall 8 renew the registration by filing with the Secretary of State, 9 at least 30 days before the expiration of the registration, 10 an application containing any information the Secretary of 11 State may require to indicate any material change from the 12 information contained in the applicant's original application 13 or any previous application. 14 (b) An application for renewal must be accompanied by a 15 filing fee in the amount specified in subsection (a) of 16 Section 10-25 of this Act, and shall not be returnable in any 17 event. 18 (c) Notwithstanding the foregoing, applications for 19 renewal of registration of business brokers may be filed 20 within 30 days following the expiration of the 21 registration provided that the applicant pays the annual 22 registration fee together with an additional amount equal to 23 the annual registration fee and files any other 24 information or documents that the Secretary of State may 25 prescribe by rule or order. Any application filed within 26 30 days following the expiration of the registration shall 27 be automatically effective as of the time of the earlier 28 expiration provided that the proper fee has been paid to the 29 Secretary of State. 30 (Source: P.A. 89-209, eff. 1-1-96.) 31 (815 ILCS 307/10-25) 32 Sec. 10-25. Fees and funds. All fees and funds accruing SB575 Engrossed -52- LRB9206482ARgc 1 for the administration of this Act shall be accounted for by 2 the Secretary of State and shall be deposited with the State 3 Treasurer who shall deposit them in the Securities Audit and 4 Enforcement Fund. 5 (a) The Secretary of State shall, by rule or regulation, 6 impose and collect fees necessary for the administration of 7 this Act, including but not limited to, fees for the 8 following purposes: 9 (1) filing an application pursuant to Section 10-10 10 of this Act; 11 (2) examining an application pursuant to Sections 12 10-10 and 10-20 of this Act; 13 (3) registering a business broker under Section 14 10-10 of this Act; 15 (4) renewing registration of a business broker 16 pursuant to Section 10-20 of this Act; 17 (5) failure to file or file timely any document or 18 information required under this Act; 19 (6) (Blank);.20 (7) acceptance of service of process pursuant to 21 Section 10-125; 22 (8) issuance of certification pursuant to Section 23 10-50; and 24 (9) late registration fee pursuant to Section 25 10-20(c). 26 (b) The Secretary of State may, by rule or regulation, 27 raise or lower any fee imposed by, and which he or she is 28 authorized by law to collect under, this Act. 29 (Source: P.A. 90-70, eff. 7-8-97; 91-194, eff. 7-20-99; 30 91-534, eff. 1-1-00; 91-809, eff. 1-1-01.) 31 (815 ILCS 307/10-40) 32 Sec. 10-40. Denial, suspension or revocation of 33 registration; orders and hearing. SB575 Engrossed -53- LRB9206482ARgc 1 (a) The Secretary of State may deny, suspend or revoke 2 the registration of a business broker if the business broker: 3 (1) Is insolvent. 4 (2) Has violated any provision of this Act. 5 (3) Has filed with the Secretary of State any 6 document or statement containing any false representation 7 of a material fact or omitting to state a material fact. 8 (4) Has been convicted, within 10 years before the 9 date of the application, renewal or review, of any crime 10 involving fraud or deceit. 11 (5) Has been found by any court or agency, within 12 10 years before the date of the application, renewal, or 13 review, to have engaged in any activity involving fraud 14 or deceit. 15 (b) The Secretary of State may not enter a final order 16 denying, suspending, or revoking the registration of a 17 business broker without prior notice to all interested 18 parties, opportunity for a hearing and written findings of 19 fact and conclusions of law. The Secretary of State may by 20 summary order deny, suspend, or revoke a registration pending 21 final determination of any proceeding under this Section. 22 Upon the entry of a summary order, the Secretary of State 23 shall promptly notify all interested parties that it has been 24 entered, of the reasons for the summary order and, that upon 25 receipt by the Secretary of State of a written request from a 26 party, the matter will be set for hearing which shall be 27 conducted in accordance with the provisions of the Illinois 28 Administrative Procedure Act. If no hearing is requested 29 within 30 days of the date of entry of the order and none is 30 ordered by the Secretary of State, the respondent's failure 31 to request a hearing shall constitute an admission of any 32 facts alleged therein and shall constitute a sufficient basis 33 to make the order final and it shall remainremainsin effect 34 until it is modified or vacated by the Secretary of State. SB575 Engrossed -54- LRB9206482ARgc 1 If a hearing is requested or ordered, the Secretary of State, 2 after notice of the hearing has been given to all interested 3 persons and the hearing has been held, may modify or vacate 4 the order or extend it until final determination. 5 (Source: P.A. 89-209, eff. 1-1-96; 90-70, eff. 7-8-97.) 6 (815 ILCS 307/10-45) 7 Sec. 10-45. Powers of Secretary of State; privilege 8 against self-incrimination; admissibility into evidence. 9 (a) The Secretary of State may do the following: 10 (1) Adopt rules and regulations to implement this 11 Act. 12 (2) Conduct investigations and examinations: 13 (A) In connection with any application for 14 registration of any business broker or any 15 registration already granted; or 16 (B) Whenever it appears to the Secretary of 17 State, upon the basis of a complaint or information, 18 that reasonable grounds exist for the belief that an 19 investigation or examination is necessary or 20 advisable for the more complete protection of the 21 interests of the public. 22 (3) Charge as costs of investigation or examination 23 all reasonable expenses, including a per diem prorated 24 upon the salary of any employee and actual traveling and 25 hotel expenses. All reasonable expenses are to be paid 26 by the party or parties under investigation or 27 examination. 28 (4) Issue notices and orders, including cease and 29 desist notices and orders, after making an investigation 30 or examination under paragraph (2) of subsection (a) of 31 this Section. The Secretary of State may also bring an 32 action to prohibit a person from violating this Act. The 33 Secretary of State shall notify the person that an order SB575 Engrossed -55- LRB9206482ARgc 1 or notice has been issued, the reasons for it and that a 2 hearing will be set in accordance with the provisions of 3 the Illinois Administrative Procedure Act after the 4 Secretary of State receives a written request from the 5 person requesting a hearing. 6 (5) Sign all orders, official certifications, 7 documents or papers issued under this Act or delegate the 8 authority to sign any of those items to his or her 9 designee. 10 (6) Hold and conduct hearings. 11 (7) Hear evidence. 12 (8) Conduct inquiries with or without hearings. 13 (9) Receive reports of investigators or other 14 officers or employees of the State of Illinois or any 15 municipal corporation or governmental subdivision within 16 the State. 17 (10) (Blank).Administer oaths or cause them to be18administered.19 (11) (Blank).Subpoena witnesses and compel them to20attend and testify.21 (12) (Blank).Compel the production of books,22records and other documents.23 (13) Order depositions to be taken of any witness 24 residing within or without the State. The depositions 25 shall be taken in the manner prescribed by law for 26 depositions in civil actions and made returnable to the 27 Secretary of State. 28 (14) For the purposes of all investigations, 29 audits, examinations, or inspections which in the opinion 30 of the Secretary of State are necessary and proper for 31 the enforcement of this Act, the Secretary of State or a 32 person designated by him or her is empowered to 33 administer oaths and affirmations, subpoena witnesses, 34 take evidence, and require by subpoena or other lawful SB575 Engrossed -56- LRB9206482ARgc 1 means provided by this law or such rules and regulations 2 adopted by the Secretary of State the production of any 3 books and records, papers, or other documents that the 4 Secretary of State or a person designated by him or her 5 deems relevant or material to the injury. 6 (b) If any person refuses to obey a subpoena issued 7 under this Act, the Secretary of State may make application 8 to any court of competent jurisdiction to order the person to 9 appear before the Secretary of State and produce documentary 10 evidence or give evidence as directed in the subpoena. The 11 failure to obey the order of the court shall be subject to 12 punishment by the court as contempt of court. 13 (c) No person shall be excused from complying with a 14 subpoena on the ground that the testimony or evidence 15 required may tend to incriminate the person or subject the 16 person to a penalty or forfeiture. No individual may be 17 prosecuted or subject to any penalty or forfeiture for or on 18 account of any transaction, matter or thing which the 19 individual is compelled to testify or produce evidence, after 20 claiming the privilege against self-incrimination. However, 21 the individual so testifying shall not be exempt from 22 prosecution and punishment for perjury committed in so 23 testifying. 24 (d) In any prosecution, action, suit or proceeding based 25 upon or arising out of this Act, the Secretary of State may 26 sign a certificate showing compliance or non-compliance with 27 this Act by any business broker. This shall constitute prima 28 facie evidence of compliance or non-compliance with this Act 29 and shall be admissible in evidence in any court to enforce 30 this Act. 31 (e) Whenever it shall appear to the Secretary of State 32 that any person is engaged or about to engage in any acts or 33 practices which constitute or will constitute a violation of 34 this Act, or of any rule or regulation prescribed under SB575 Engrossed -57- LRB9206482ARgc 1 authority of this Act, the Secretary of State may at his or 2 her discretion, through the Attorney General: 3 (1) File a complaint and apply for a temporary 4 restraining order without notice, and upon a proper 5 showing the court may enter a temporary restraining order 6 without a bond, to enforce this Act. 7 (2) File a complaint and apply for a preliminary or 8 permanent injunction, and, after notice and hearing and 9 upon a proper showing, the court may grant a preliminary 10 or permanent injunction and may order the defendant to 11 make an offer of rescission with respect to any contract 12 for business brokerage services determined by the court 13 to be unlawful under this Act. 14 (f) The court shall further have jurisdiction and 15 authority, in addition to the penalties and other remedies in 16 this Act provided, to enter an order for the appointment of 17 the court or a person as a receiver, conservator, ancillary 18 receiver or ancillary conservator for the defendant or the 19 defendant's assets located in this State, or to require 20 restitution or damages on behalf of the person or persons 21 injured by the act or practice constituting the subject 22 matter of the action, and may assess costs against the 23 defendant for the use of the State. 24 (g) No provision of this Act imposing liability shall 25 apply to any act done or omitted in good faith in conformity 26 with any rule of the Secretary of State under this Act, 27 notwithstanding that such rule may, after such act or 28 omission, be amended or rescinded or be determined by 29 judicial or other authority to be invalid for any reason. 30 (Source: P.A. 89-209, eff. 1-1-96; 90-70, eff. 7-8-97.) 31 (815 ILCS 307/10-50) 32 Sec. 10-50. Certified copies of documents or records 33 admissible in actions or proceedings under this Act. SB575 Engrossed -58- LRB9206482ARgc 1 (a) Copies of any statement or document filed with the 2 Secretary of State, and copies of any records of the 3 Secretary of State, certified to by the Secretary of State 4 are admissible in any prosecution, action, suit or proceeding 5 based upon, or arising out of or under, the provisions of 6 this Act to the same effect as the original of the statement, 7 document or record would be if actually produced. 8 (b) In any action, administrative, civil, or criminal, a 9 certificate under the seal of the State of Illinois, signed 10 by the Secretary of State, attesting to the filing of or the 11 absence of any filing of any document or record with the 12 Secretary of State under this Act, shall constitute prima 13 facie evidence of such filing or of the absence of the 14 filing, and shall be admissible in evidence in any 15 administrative, criminal, or civil action. 16 (c) Any certificate pursuant to subsection (a) or (b) of 17 this Section shall be furnished by the Secretary of State 18 upon an application therefor in the form and manner 19 prescribed by the Secretary of State by rule, and shall be 20 accompanied by payment of a non-refundable certification fee 21 in the amount specified by rule or by order of the Secretary 22 of State. 23 (Source: P.A. 89-209, eff. 1-1-96.) 24 (815 ILCS 307/10-55) 25 Sec. 10-55. Violations; administrative fines; 26 enforcement. 27 (a) If the Secretary of State determines, after notice 28 and opportunity for a hearing, that a person has violated 29 this Act, the Secretary of State may in addition to all other 30 remedies, impose an administrative fine upon the person in an 31 amount not to exceed $10,000 for each violation. 32 (b) The Secretary of State may bring an action in the 33 circuit court of Sangamon or Cook county to enforce payment SB575 Engrossed -59- LRB9206482ARgc 1 of fines imposed under this Section. 2 (c) If the Secretary of State shall find that any person 3 has violated any provision of this Act, the Secretary of 4 State may, by written order temporarily or permanently 5 prohibit or suspend such person from acting as a business 6 broker. 7 (d) If the Secretary of State shall find, after notice 8 and opportunity for hearing, that any person is acting or has 9 acted as a business broker as defined in Section 10-5.10 of 10 this Act, without prior thereto or at the time thereof having 11 complied with the registration requirements of this Act, the 12 Secretary of State may by written order prohibit or suspend 13 such person from acting as a business broker in this State. 14 (e) Anything herein contained to the contrary 15 notwithstanding, the Secretary of State may temporarily 16 prohibit or suspend, for a maximum period of 90 days, by an 17 order effective immediately, the registration of a business 18 broker or the business of providing business brokerage 19 services, without notice and prior hearing, if the Secretary 20 of State shall in his or her opinion, based upon credible 21 evidence, deem it necessary to prevent an imminent violation 22 of this Act or to prevent losses to clients which the 23 Secretary of State reasonably believes will occur as a result 24 of a prior violation of this Act. Immediately after taking 25 action without such notice and hearing, the Secretary of 26 State shall deliver a copy of the temporary order to the 27 respondent named therein by personal service or registered 28 mail or certified mail, return receipt requested. The 29 temporary order shall set forth the grounds for the action 30 and shall advise that the respondent may request a hearingas31soon as reasonably practicable,that the request for a 32 hearing will not stop the effectiveness of the temporary 33 order and that respondent's failure to request a hearing 34 within 30 days after the date of the entry of the temporary SB575 Engrossed -60- LRB9206482ARgc 1 order, shall constitute an admission of any facts alleged 2 therein and shall make the temporary order final. A business 3 broker whose registration has been suspended pursuant to this 4 Section may request the Secretary of State permission to 5 continue to receive payment for any executory contracts at 6 the time of any suspension and to continue to perform its 7 obligation thereunder. The decision to grant or deny 8 permission to receive payment for any executory contracts or 9 perform any obligation thereunder shall be at the sole 10 discretion of the Secretary of State and shall not be subject 11 to review under the Administrative Review Law. 12 (f) The Secretary of State may issue a temporary order 13 suspending or delaying the effectiveness of any registration 14 of a business broker under this Act subsequent to and upon 15 the basis of the issuance of any stop, suspension or similar 16 order by any agency of the United States regulating business 17 brokers or any state or federal courts with respect to the 18 person who is the subject of the registration under this Act, 19 and such order shall become effective as of the date and time 20 of effectiveness of the agency or court order and shall be 21 vacated automatically at such time as the order of the agency 22 or court order is no longer in effect. 23 (Source: P.A. 89-209, eff. 1-1-96; 90-70, eff. 7-8-97.) 24 (815 ILCS 307/10-85) 25 Sec. 10-85. Fraudulent and prohibited acts. 26 (a) A business broker shall not, in connection with a 27 contract for the services of a business broker, either 28 directly or indirectly, do any of the following: 29 (1) Employ any device, scheme or article to 30 defraud. 31 (2) Make any untrue statements of a material fact 32 or omit to state a material fact necessary in order to 33 make the statements made, in the light of circumstances SB575 Engrossed -61- LRB9206482ARgc 1 under which they are made, not misleading, unless the 2 statement is made in reasonable reliance on information 3 provided by the client. 4 (3) Engage in any act, practice or course of 5 business that operates or would operate as a fraud or 6 deceit upon any person. 7 (b) A business broker shall not either directly or 8 indirectly do the following: 9 (1) Engage in the business of acting as a business 10 broker without registration under this Act unless exempt 11 under the Act. 12 (2) Fail to file with the Secretary of State any 13 application, report, document, or answer required to be 14 filed under the provisions of this Act or any rule made 15 by the Secretary of State pursuant to this Act or fail to 16 comply with the terms of any order issued pursuant to 17 this Act or rule or made by the Secretary of State. 18 (3) Fail to maintain any records as required under 19 the provisions of this Act or any rule made by Secretary 20 of State pursuant to this Act. 21 (Source: P.A. 89-209, eff. 1-1-96; 90-70, eff. 7-8-97.) 22 (815 ILCS 307/10-125 new) 23 Sec. 10-125. Service of process. 24 (a) Any person acting as a business broker, unless 25 exempt from registration under this Act, shall constitute an 26 appointment of the Secretary of State, or his or her 27 successors in Office, by the person to be the true and 28 lawful attorney for the person upon whom may be served all 29 lawful process in any action or proceeding against the 30 person, arising out of his or her activities as a business 31 broker. 32 (b) Service of process under this Section shall be made 33 by serving a copy upon the Secretary of State or any employee SB575 Engrossed -62- LRB9206482ARgc 1 in his or her Office designated by the Secretary of State to 2 accept such service for him or her, provided notice of such 3 and a copy of the process are, within 10 days of receipt, 4 sent by registered mail or certified mail, return receipt 5 requested, by the plaintiff to the defendant, at the last 6 known address of the defendant. The filing fee for service 7 of process under this Section is non-refundable and is the 8 amount established in Section 10-25 of this Act. The 9 Secretary of State shall keep a record of all such processes 10 that shall show the day of the service. 11 Section 20. The Business Opportunity Sales Law of 1995 12 is amended by changing Sections 5-5.05, 5-5.10, 5-5.15, 13 5-5.30, 5-20, 5-30, 5-35, 5-60, 5-65, 5-95, and by adding 14 Section 5-145 as follows: 15 (815 ILCS 602/5-5.05) 16 Sec. 5-5.05. Advertising. "Advertising" means any 17 circular, prospectus, advertisement or other material or any 18 electronic communication including, but not limited to,by19 radio, television, pictures or similar means used in 20 connection with an offer or sale of any business opportunity. 21 (Source: P.A. 89-209, eff. 1-1-96.) 22 (815 ILCS 602/5-5.10) 23 Sec. 5-5.10. Business opportunity. 24 (a) "Business opportunity" means a contract or 25 agreement, between a seller and purchaser, express or 26 implied, orally or in writing, wherein it is agreed that the 27 seller or a person recommended by the seller shall provide to 28 the purchaser any product, equipment, supplies or services 29 enabling the purchaser to start a business when the purchaser 30 is required to make a payment to the seller or a person 31 recommended by the seller and the seller represents directly SB575 Engrossed -63- LRB9206482ARgc 1 or indirectly, orally or in writing, any of the following, 2 that: 3 (1) the seller or a person recommended by the 4 seller will provide or assist the purchaser in finding 5 locations for the use or operation of vending machines, 6 racks, display cases or other similar devices, on 7 premises neither owned nor leased by the purchaser or 8 seller; 9 (2) the seller or a person recommended by the 10 seller will provide or assist the purchaser in finding 11 outlets or accounts for the purchaser's products or 12 services; 13 (3) the seller or a person specified by the seller 14 will purchase any or all products made, produced, 15 fabricated, grown, bred or modified by the purchaser; 16 (4) the seller guarantees that the purchaser will 17 derive income from the business which exceeds the price 18 paid to the seller; 19 (5) the seller will refund all or part of the price 20 paid to the seller, or repurchase any of the products, 21 equipment or supplies provided by the seller or a person 22 recommended by the seller, if the purchaser is 23 dissatisfied with the business; or 24 (6) the seller will provide a marketing plan, 25 provided that this Law shall not apply to the sale of a 26 marketing plan made in conjunction with the licensing of 27 a federally registered trademark or federally registered 28 service mark. 29 (b) "Business opportunity" does not include: 30 (1) any offer or sale of an ongoing business 31 operated by the seller and to be sold in its entirety; 32 (2) any offer or sale of a business opportunity to 33 an ongoing business where the seller will provide 34 products, equipment, supplies or services which are SB575 Engrossed -64- LRB9206482ARgc 1 substantially similar to the products, equipment, 2 supplies or services sold by the purchaser in connection 3 with the purchaser's ongoing business; 4 (3) any offer or sale of a business opportunity 5 which is a franchise as defined by the Franchise 6 Disclosure Act of 1987; 7 (4) any offer or sale of a business opportunity 8 which is registered pursuant to the Illinois Securities 9 Law of 1953; 10 (5) (blank); 11 (6) any offer or sale of a business opportunity by 12 an executor, administrator, sheriff, marshal, receiver, 13 trustee in bankruptcy, guardian or conservator or a 14 judicial offer or sale, of a business opportunity; or 15 (7) cash payments made by a purchaser not exceeding 16 $500 and the payment is made for the not-for-profit sale 17 of sales demonstration equipment, material or samples, or 18 the payment is made for product inventory sold to the 19 purchaser at a bona fide wholesale price. 20 (Source: P.A. 90-70, eff. 7-8-97; 91-357, eff. 7-29-99; 21 91-809, eff. 1-1-01.) 22 (815 ILCS 602/5-5.15) 23 Sec. 5-5.15. Marketing plan. "Marketing plan" means 24 advice or training, provided to the purchaser by the seller 25 or a person recommended by the seller, pertaining 26 specifically to the sale of any enterprise, product, 27 equipment, supplies or services and the advice or training 28 includes, without limitationbut is not limited to, preparing 29 or providing: 30 (1) Promotional literature, brochures, pamphlets, or 31 advertising materials; 32 (2) Training, regarding the promotion, operation or 33 management of the business opportunity; or SB575 Engrossed -65- LRB9206482ARgc 1 (3) Operational, managerial,technicalor financial 2 guidelines or assistance or continuing technical support. 3 (Source: P.A. 89-209, eff. 1-1-96.) 4 (815 ILCS 602/5-5.30) 5 Sec. 5-5.30. Person. "Person" means an individual, 6 corporation, trust, partnership, a joint stock company, 7 limited liability partnership, limited liability company, 8 incorporated or unincorporated association or any other 9 entity. 10 (Source: P.A. 89-209, eff. 1-1-96.) 11 (815 ILCS 602/5-20) 12 Sec. 5-20. Burden of proof and evidentiary matters. 13 (a) In any administrative, civil, or criminal proceeding 14 related to this Law, the burden of proving an exemption, an 15 exception from a definition or an exclusion from this Law is 16 upon the person claiming it. 17 (b) In any action, administrative, civil, or criminal, a 18 certificate under the seal of the State of Illinois, signed 19 by the Secretary of State, attesting to the filing of or the 20 absence of any filing of any document or record with the 21 Secretary of State under this Act, shall constitute prima 22 facie evidence of such filing or of the absence of the 23 filing, and shall be admissible in evidence in any 24 administrative, criminal, or civil action. 25 (c) In any administrative, civil, or criminal action, 26 the Secretary of State may issue a certificate under the 27 seal of the State of Illinois, signed by the Secretary of 28 State, showing that any document or record is a true and 29 exact copy, photocopy or otherwise, of the record or document 30 on file with the Secretary of State under this Act; and such 31 certified document or record shall be admissible in evidence 32 with the same effect as the original document or record would SB575 Engrossed -66- LRB9206482ARgc 1 have if actually produced. 2 (d) Any certificate pursuant to subsection (b) or (c) of 3 this Section shall be furnished by the Secretary of State 4 upon an application therefor in the form and manner 5 prescribed by the Secretary of State by rule, and shall be 6 accompanied by payment of a non-refundable certification fee 7 in the amount specified by rule or by order of the Secretary 8 of State. 9 (Source: P.A. 89-209, eff. 1-1-96.) 10 (815 ILCS 602/5-30) 11 Sec. 5-30. Registration. 12 (a) In order to register a business opportunity, the 13 seller shall file with the Secretary of State one of the 14 following disclosure documents with the appropriate cover 15 sheet as required by subsection (b) of Section 5-35 of this 16 Law, a consent to service of process as specified in 17 subsection (b) of this Section, and the appropriate fee as 18 required by subsection (c) of this Section which is not 19 returnable in any event: 20 (1) The Franchise Offering Circular which the 21 Secretary of State may prescribe by rule or regulation; 22 or 23 (2) A disclosure document prepared pursuant to the 24 Federal Trade Commission rule entitled Disclosure 25 Requirements and Prohibitions Concerning Franchising and 26 Business Opportunity Venture, 16 C.F.R. Sec. 436 (1979). 27 The Secretary of State may by rule or regulation adopt 28 any amendment to the disclosure document prepared 29 pursuant to 16 C.F.R. Sec. 436 (1979), that has been 30 adopted by the Federal Trade Commission; or 31 (3) A disclosure document prepared pursuant to 32 subsection (b) of Section 5-35 of this Law. 33 (b) Every seller shall file, in the form as the SB575 Engrossed -67- LRB9206482ARgc 1 Secretary of State may prescribe, an irrevocable consent 2 appointing the Secretary of State or the successor in office 3 to be the seller's attorney to receive service of any lawful 4 process in any noncriminal suit, action or proceeding against 5 the seller or the seller's successor, executor or 6 administrator which arises under this Law after the consent 7 has been filed, with the same force and validity as if served 8 personally on the person filing the consent. Service may be 9 made by delivering a copy of the process in the office of the 10 Secretary of State, but is not effective unless the 11 plaintiff or petitioner in a suit, action or proceeding, 12 forthwith sends notice of the service and a copy of the 13 process by registered or certified mail, return receipt 14 requested, to the defendant's or respondent's most current 15 address on file with the Secretary of State, and the 16 plaintiff's affidavit of compliance with this subsection is 17 filed in the case on or before the return date of the 18 process, if any, or within such further time as the court 19 allows. 20 (c)(1) The Secretary of State shall by rule or 21 regulation impose and shall collect fees necessary for 22 the administration of this Law including, but not limited 23 to, fees for the following purposes: 24 (A) filing a disclosure document and renewal 25 fee; 26 (B) interpretive opinion fee;.27 (C) acceptance of service of process pursuant 28 to subsection (b) of Section 5-145; 29 (D) issuance of certification pursuant to 30 Section 5-20; or 31 (E) late registration fee pursuant to Section 32 5-30(g). 33 (2) The Secretary of State may, by rule or 34 regulation, raise or lower any fee imposed by, and which SB575 Engrossed -68- LRB9206482ARgc 1 he or she is authorized by law to collect under this Law. 2 (d) A registration automatically becomes effective upon 3 the expiration of the 10th full business day after a complete 4 filing, provided that no order has been issued or proceeding 5 pending under Section 5-45 of this Law. The Secretary of 6 State may by order waive or reduce the time period prior to 7 effectiveness, provided that a complete filing has been made. 8 The Secretary of State may by order defer the effective date 9 until the expiration of the 10th full business day after the 10 filing of any amendment. 11 (e) The registration is effective for one year 12 commencing on the date of effectiveness and may be renewed 13 annually upon the filing of a current disclosure document 14 accompanied by any documents or information that the 15 Secretary of State may by rule or regulation or order 16 require. The annual renewal fee shall be in the same amount 17 as the initial registration fee as established under 18 subsection (c) of Section 5-30 of this Law which shall not be 19 returnable in any event. Failure to renew upon the close of 20 the one year period of effectiveness will result in 21 expiration of the registration. The Secretary of State may by 22 rule or regulation or order require the filing of a sales 23 report. 24 (f) The Secretary of State may by rule or regulation or 25 order require the filing of all proposed literature or 26 advertising prior to its use. 27 (g) Notwithstanding the foregoing, applications for 28 renewal of registration of business opportunities may be 29 filed within 30 days following the expiration of the 30 registration provided that the applicant pays the annual 31 registration fee together with an additional amount equal to 32 the annual registration fee and files any other information 33 or documents that the Secretary of State may prescribe by 34 rule or order. Any application filed within 30 days SB575 Engrossed -69- LRB9206482ARgc 1 following the expiration of the registration shall be 2 automatically effective as of the time of the earlier 3 expiration provided that the proper fee has been paid to the 4 Secretary of State. 5 (Source: P.A. 89-209, eff. 1-1-96.) 6 (815 ILCS 602/5-35) 7 Sec. 5-35. Disclosure requirements. 8 (a) It shall be unlawful for any person to offer or, 9 sell any business opportunity required to be registered under 10 this Law unless a written disclosure document as filed under 11 subsection (a) of Section 5-30 of this Law is delivered to 12 each purchaser at least 10 business days prior to the 13 execution by a purchaser of any contract or agreement 14 imposing a binding legal obligation on the purchaser or the 15 payment by a purchaser of any consideration in connection 16 with the offer or sale of the business opportunity. 17 (b) The disclosure document shall have a cover sheet 18 which is entitled, in at least 10-point bold type, 19 "DISCLOSURE REQUIRED BY THE STATE OF ILLINOIS." Under the 20 title shall appear the statement in at least 10-point bold 21 type that "THE REGISTRATION OF THIS BUSINESS OPPORTUNITY DOES 22 NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE 23 STATE OF ILLINOIS. THE INFORMATION CONTAINED IN THIS 24 DISCLOSURE DOCUMENT HAS NOT BEEN VERIFIED BY THIS STATE. IF 25 YOU HAVE ANY QUESTIONS OR CONCERNS ABOUT THIS INVESTMENT, 26 SEEK PROFESSIONAL ADVICE BEFORE YOU SIGN A CONTRACT OR MAKE 27 ANY PAYMENT. YOU ARE TO BE PROVIDED 10 BUSINESS DAYS TO 28 REVIEW THIS DOCUMENT BEFORE SIGNING ANY CONTRACT OR AGREEMENT 29 OR MAKING ANY PAYMENT TO THE SELLER OR THE SELLER'S 30 REPRESENTATIVE". The seller's name and principal business 31 address, along with the date of the disclosure document shall 32 also be provided on the cover sheet. No other information 33 shall appear on the cover sheet. The disclosure document SB575 Engrossed -70- LRB9206482ARgc 1 shall contain the following information unless the seller 2 uses a disclosure document as provided in paragraph (1) or 3 (2) of subsection (a) of Section 5-30 of this Law: 4 (1) The names and residential addresses of those 5 salespersons who will engage in the offer or sale of the 6 business opportunity in this State. 7 (2) The name of the seller, whether the seller is 8 doing business as an individual, partnership or 9 corporation; the names under which the seller has 10 conducted, is conducting or intends to conduct business; 11 and the name of any parent or affiliated company that 12 will engage in business transactions with purchasers or 13 which will take responsibility for statements made by the 14 seller. 15 (3) The names, addresses and titles of the seller's 16 officers, directors, trustees, general managers, 17 principal executives, agents, and any other persons 18 charged with responsibility for the seller's business 19 activities relating to the sale of the business 20 opportunity. 21 (4) Prior business experience of the seller 22 relating to business opportunities including: 23 (A) The name, address, and a description of 24 any business opportunity previously offered by the 25 seller; 26 (B) The length of time the seller has offered 27 each such business opportunity; and 28 (C) The length of time the seller has 29 conducted the business opportunity currently being 30 offered to the purchaser. 31 (5) With respect to persons identified in item (3) 32 of this subsection: 33 (A) A description of the persons' business 34 experience for the 10 year period preceding the SB575 Engrossed -71- LRB9206482ARgc 1 filing date of this disclosure document. The 2 description of business experience shall list 3 principal occupations and employers; and 4 (B) A listing of the persons' educational and 5 professional backgrounds including, the names of 6 schools attended and degrees received, and any other 7 information that will demonstrate sufficient 8 knowledge and experience to perform the services 9 proposed. 10 (6) Whether the seller or any person identified in 11 item (3) of this subsection: 12 (A) Has been convicted of any felony, or 13 pleaded nolo contendere to a felony charge, or has 14 been the subject of any criminal, civil or 15 administrative proceedings alleging the violation of 16 any business opportunity law, securities law, 17 commodities law, franchise law, fraud or deceit, 18 embezzlement, fraudulent conversion, restraint of 19 trade, unfair or deceptive practices, 20 misappropriation of property or comparable 21 allegations; 22 (B) Has filed in bankruptcy, been adjudged 23 bankrupt, been reorganized due to insolvency, or was 24 an owner, principal officer or general partner or 25 any other person that has so filed or was so 26 adjudged or reorganized during or within the last 7 27 years. 28 (7) The name of the person identified in item (6) 29 of this subsection, nature of and parties to the action 30 or proceeding, court or other forum, date of the 31 institution of the action, docket references to the 32 action, current status of the action or proceeding, terms 33 and conditions or any order or decree, the penalties or 34 damages assessed and terms of settlement. SB575 Engrossed -72- LRB9206482ARgc 1 (8) The initial payment required, or when the exact 2 amount cannot be determined, a detailed estimate of the 3 amount of the initial payment to be made to the seller. 4 (9) A detailed description of the actual services 5 the seller agrees to perform for the purchaser. 6 (10) A detailed description of any training the 7 seller agrees to provide for the purchaser. 8 (11) A detailed description of services the seller 9 agrees to perform in connection with the placement of 10 equipment, products or supplies at a location, as well as 11 any agreement necessary in order to locate or operate 12 equipment, products or supplies on a premises neither 13 owned nor leased by the purchaser or seller. 14 (12) A detailed description of any license or 15 permit that will be necessary in order for the purchaser 16 to engage in or operate the business opportunity. 17 (13) The business opportunity seller that is 18 required to secure a bond under Section 5-50 of this Law, 19 shall state in the disclosure document "As required by 20 the State of Illinois, the seller has secured a bond 21 issued by (insert name and address of surety company), a 22 surety company, authorized to do business in this State. 23 Before signing a contract or agreement to purchase this 24 business opportunity, you should check with the surety 25 company to determine the bond's current status.". 26 (14) Any representations made by the seller to the 27 purchaser concerning sales or earnings that may be made 28 from this business opportunity, including, but not 29 limited to: 30 (A) The bases or assumptions for any actual, 31 average, projected or forecasted sales, profits, 32 income or earnings; 33 (B) The total number of purchasers who, within 34 a period of 3 years of the date of the disclosure SB575 Engrossed -73- LRB9206482ARgc 1 document, purchased a business opportunity involving 2 the product, equipment, supplies or services being 3 offered to the purchaser; and 4 (C) The total number of purchasers who, within 5 3 years of the date of the disclosure document, 6 purchased a business opportunity involving the 7 product, equipment, supplies or services being 8 offered to the purchaser who, to the seller's 9 knowledge, have actually received earnings in the 10 amount or range specified. 11 (15) Any seller who makes a guarantee to a 12 purchaser shall give a detailed description of the 13 elements of the guarantee. Such description shall 14 include, but shall not be limited to, the duration, 15 terms, scope, conditions and limitations of the 16 guarantee. 17 (16) A statement of: 18 (A) The total number of business opportunities 19 that are the same or similar in nature to those that 20 have been sold or organized by the seller; 21 (B) The names and addresses of purchasers who 22 have requested a refund or rescission from the 23 seller within the last 12 months and the number of 24 those who have received the refund or rescission; 25 and 26 (C) The total number of business opportunities 27 the seller intends to sell in this State within the 28 next 12 months. 29 (17) A statement describing any contractual 30 restrictions, prohibitions or limitations on the 31 purchaser's conduct. Attach a copy of all business 32 opportunity and other contracts or agreements proposed 33 for use or in use in this State including, without 34 limitation, all lease agreements, option agreements, and SB575 Engrossed -74- LRB9206482ARgc 1 purchase agreements. 2 (18) The rights and obligations of the seller and 3 the purchaser regarding termination of the business 4 opportunity contract or agreement. 5 (19) A statement accurately describing the grounds 6 upon which the purchaser may initiate legal action to 7 terminate the business opportunity contract or agreement. 8 (20) A copy of the most recent audited financial 9 statement of the seller, prepared within 13 months of the 10 first offer in this State, together with a statement of 11 any material changes in the financial condition of the 12 seller from that date. The Secretary of State may accept 13 the filing of a reviewed financial statement in lieu of 14 an audited financial statementallow the seller to submit15a limited review in order to satisfy the requirements of16this subsection. 17 (21) A list of the states in which this business 18 opportunity is registered. 19 (22) A list of the states in which this disclosure 20 document is on file. 21 (23) A list of the states which have denied, 22 suspended or revoked the registration of this business 23 opportunity. 24 (24) A section entitled "Risk Factors" containing a 25 series of short concise statements summarizing the 26 principal factors which make this business opportunity a 27 high risk or one of a speculative nature. Each statement 28 shall include a cross-reference to the page on which 29 further information regarding that risk factor can be 30 found in the disclosure document. 31 (25) Any additional information as the Secretary of 32 State may require by rule, regulation, or order. 33 (Source: P.A. 89-209, eff. 1-1-96; 90-70, eff. 7-8-97.) SB575 Engrossed -75- LRB9206482ARgc 1 (815 ILCS 602/5-60) 2 Sec. 5-60. Investigations and subpoenas. 3 (a) The Secretary of State: 4 (1) may make such public or private investigations 5 within or outside of this State as the Secretary of State 6 deems necessary to determine whether any person has 7 violated or is about to violate any provision of this Law 8 or any rule, regulation, or order under this Law, or to 9 aid in the enforcement of this Law or in the prescribing 10 of rules and forms under this Law; 11 (2) may require or permit any person to file a 12 statement, under oath or otherwise as the Secretary of 13 State determines, as to all the facts and circumstances 14 concerning the matter to be investigated; and 15 (3) may publish information concerning any 16 violation of this Law or any rule, regulation, or order 17 under this Law. 18 (b) For the purpose of any investigation or proceeding 19 under this Law, the Secretary of State or his or her designee 20 may administer oaths and affirmations, subpoena witnesses, 21 compel their attendance, take evidence and require, by 22 subpoena or other lawful means provided by this Act or the 23 rules adopted by the Secretary of State, the production of 24 any books, papers, correspondence, memoranda, agreements, or 25 other documents or records which the Secretary of State deems 26 relevant or material to the inquiry. 27 (c) In case of contumacy by, or refusal to obey a 28 subpoena issued to any person, through the Office of the 29 Attorney General may bring an appropriate action in any 30 circuit court of the State of Illinois for the purpose of 31 enforcing the subpoena. 32 (d) It shall be a violation of the provisions of this 33 Law for any person to fail to file with the Secretary of 34 State any report, document, or statement required to be filed SB575 Engrossed -76- LRB9206482ARgc 1 under the provisions of this Section or to fail to comply 2 with the terms of any order of the Secretary of State issued 3 pursuant to this Law. 4 (Source: P.A. 89-209, eff. 1-1-96; 90-70, eff. 7-8-97.) 5 (815 ILCS 602/5-65) 6 Sec. 5-65. Remedies. Whenever it appears to the Secretary 7 of State that any person has engaged in or is about to engage 8 in any act or practice constituting a violation of any 9 provision of this Law or any rule, regulation, or order under 10 this Law, the Secretary of State may: 11 (1) Issue an order, anything contained in this Law 12 to the contrary notwithstanding, directing the person to 13 cease and desist from continuing the act or practice. Any 14 person named in a cease and desist order issued by the 15 Secretary of State may, within 30 days after the date of 16 the entry of the order, file a written request for a 17 hearing with the Secretary of State. If the Secretary of 18 State does not receive a written request for a hearing 19 within the time specified, the cease and desist order 20 will be permanent and the person named in the order will 21 be deemed to have waived all rights to a hearing. If a 22 hearing is requested, the order will remain in force 23 until it is modified, vacated, rescinded or expunged by 24 the Secretary of State. 25 (1.5) Prohibit or suspend the offer or sale of any 26 business opportunity, prohibit or suspend any person 27 from offering or selling any business opportunities, 28 impose any fine for violation of this Law, issue an order 29 of public censure, or enter into an agreed settlement or 30 stipulation. No such order may be entered without 31 appropriate prior notice to all interested parties, 32 opportunity for hearing, and written findings of fact and 33 conclusions of law. SB575 Engrossed -77- LRB9206482ARgc 1 (2) Bring an action in the circuit court of any 2 county to enjoin the acts or practices and to enforce 3 compliance with this Law or any rule, regulation, or 4 order under this Law. Upon a proper showing a permanent 5 or temporary injunction, restraining order, or writ of 6 mandamus shall be granted and a receiver or conservator 7 may be appointed for the defendant or the defendant's 8 assets or the court may order rescission, which shall 9 include restitution plus the legal interest rate, for any 10 sales of business opportunities determined to be unlawful 11 under this Law or any rule, regulation, or order under 12 this Law. The court shall not require the Secretary of 13 State to post a bond. 14 (3) The Secretary of State may refer such evidence 15 as may be available concerning violations of this Law or 16 any rule, regulation, or order under this Law to the 17 Attorney General or the appropriate State's Attorney, who 18 may, with or without such a reference, institute the 19 appropriate proceedings under this Section. 20 (4) In addition to any other sanction or remedy 21 contained in this Section, the Secretary of State, after 22 finding that any provision of this Law has been violated, 23 may impose a fine as provided by rule or order against 24 the violator not to exceed $10,000 per violation,and25 may issue an order of public censure against the 26 violator, and charge as costs of the investigation all 27 reasonable expenses, including attorney's fees and 28 witness fees. 29 (5) Notwithstanding the foregoing, the Secretary of 30 State, after notice and opportunity for hearing, may at 31 his or her discretion enter into an agreed settlement, 32 stipulation, or consent order with a respondent in 33 accordance with the provisions of the Illinois 34 Administrative Procedure Act. The provisions of the SB575 Engrossed -78- LRB9206482ARgc 1 agreed settlement, stipulation, or consent order shall 2 have the full force and effect of an order issued by the 3 Secretary of State. 4 (6) The action of the Secretary of State in 5 denying, suspending, or revoking the registration of a 6 business opportunity, in prohibiting or suspending a 7 person from offering or selling business opportunities, 8 in prohibiting or suspending the offer or sale of 9 business opportunities, in imposing any fine for 10 violation of this Law, or in issuing any order shall be 11 subject to judicial review under the Administrative 12 Review Law which shall apply to and govern every action 13 for the judicial review of final actions or decisions of 14 the Secretary of State under this Law. 15 (Source: P.A. 89-209, eff. 1-1-96; 90-70, eff. 7-8-97.) 16 (815 ILCS 602/5-95) 17 Sec. 5-95. Fraudulent and prohibited practices. 18 (a) It is unlawful for any person, in connection with 19 the offer or sale of any business opportunity in this State 20 or any offer or sale pursuant to the exemptions granted under 21 subdivisions 5-10(a), (c), (d), or (h), directly or 22 indirectly: 23 (1) To employ any device, scheme or artifice to 24 defraud; 25 (2) To make any untrue statement of a material fact 26 or to omit to state a material fact necessary in order to 27 make the statements made, in the light of the 28 circumstances under which they are made, not misleading; 29 or 30 (3) To engage in any act, practice or course of 31 business which operates or would operate as a fraud or 32 deceit upon any person. 33 (b) No person shall, either directly or indirectly, do SB575 Engrossed -79- LRB9206482ARgc 1 any of the following: 2 (1) offer or sell any business opportunity without 3 registration under this Act unless the person offering or 4 selling the opportunity is exempt under the Act; 5 (2) fail to file with the Secretary of State any 6 application, report, document, or answer required to be 7 filed under the provisions of this Act or any rule made 8 by the Secretary of State pursuant to this Act or fail to 9 comply with the terms of any order issued pursuant to 10 this Act or any rules adopted by the Secretary of State; 11 or 12 (3) fail to keep or maintain any records as is 13 required under the provisions of this Act or any rule 14 adopted by the Secretary of State pursuant to this Act. 15 (Source: P.A. 89-209, eff. 1-1-96; 90-70, eff. 7-8-97.) 16 (815 ILCS 602/5-145 new) 17 Sec. 5-145. Service of process. 18 (a) The offer or sale of business opportunities in this 19 State by any person, unless exempt from registration under 20 this Act, shall constitute an appointment of the Secretary of 21 State, or his or her successors in office, by the person to 22 be the true and lawful attorney for the person upon whom may 23 be served all lawful process in any action or proceeding 24 against the person, arising out of the offer or sale of the 25 securities. 26 (b) Service of process under this Section shall be made 27 by serving a copy upon the Secretary of State or any employee 28 in his or her office designated by the Secretary of State to 29 accept such service for him or her, provided notice and a 30 copy of the process are, within 10 days after receiving the 31 notice and process, sent by registered mail or certified 32 mail, return receipt requested, by the plaintiff to the 33 defendant, at the last known address of the defendant. The SB575 Engrossed -80- LRB9206482ARgc 1 filing fee for service of process under this Section shall be 2 as established pursuant to Section 5-30 of this Act, and 3 shall not be returnable in any event. The Secretary of State 4 shall keep a record of all processes each of which shall show 5 the day of the service. SB575 Engrossed -81- LRB9206482ARgc 1 INDEX 2 Statutes amended in order of appearance 3 815 ILCS 5/2.1 from Ch. 121 1/2, par. 137.2-1 4 815 ILCS 5/8 from Ch. 121 1/2, par. 137.8 5 815 ILCS 5/11 from Ch. 121 1/2, par. 137.11 6 815 ILCS 5/14 from Ch. 121 1/2, par. 137.14 7 815 ILCS 175/15-5.15 8 815 ILCS 175/15-5.20 9 815 ILCS 175/15-20 10 815 ILCS 175/15-25 11 815 ILCS 175/15-45 12 815 ILCS 175/15-50 13 815 ILCS 175/15-85 14 815 ILCS 175/15-95 new 15 815 ILCS 307/10-5.20 16 815 ILCS 307/10-20 17 815 ILCS 307/10-25 18 815 ILCS 307/10-40 19 815 ILCS 307/10-45 20 815 ILCS 307/10-50 21 815 ILCS 307/10-55 22 815 ILCS 307/10-85 23 815 ILCS 307/10-125 new 24 815 ILCS 602/5-5.05 25 815 ILCS 602/5-5.10 26 815 ILCS 602/5-5.15 27 815 ILCS 602/5-5.30 28 815 ILCS 602/5-20 29 815 ILCS 602/5-30 30 815 ILCS 602/5-35 31 815 ILCS 602/5-60 32 815 ILCS 602/5-65 33 815 ILCS 602/5-95 34 815 ILCS 602/5-145 new