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Public Act 098-0357
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| HB0101 Enrolled | LRB098 04899 MGM 34927 b |
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Pawnbroker Regulation Act is amended by |
changing Sections 0.05 and 4 as follows:
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(205 ILCS 510/0.05)
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Sec. 0.05. Administration of Act.
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(a) This Act shall be administered by the
Secretary of |
Financial and Professional Regulation, and, beginning on July |
28, 2010 (the effective date of Public Act 96-1365), all |
references in this Act to the Commissioner of Banks and Real |
Estate are deemed, in appropriate contexts, to be references to |
the Secretary of Financial and Professional Regulation, who |
shall have all of the following
powers and duties in |
administering this Act:
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(1) To promulgate reasonable rules for the purpose of |
administering the
provisions of this Act.
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(2) To issue orders for the purpose of administering |
the provisions of
this
Act and any rule promulgated in |
accordance with this Act.
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(2.5) To order restitution to consumers suffering |
damages resulting from violations of this Act, rules |
promulgated in accordance with this Act, or other laws or |
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regulations related to the operation of a pawnshop.
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(3) To appoint hearing officers and to hire employees |
or to contract with
appropriate persons to execute any of |
the powers granted to
the Secretary under this Section for |
the purpose of administering this
Act and any rule |
promulgated in accordance with this Act.
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(4) To subpoena witnesses, to compel their attendance, |
to administer an
oath, to examine any person under oath, |
and to require the production of any
relevant books, |
papers, accounts, and documents in the course of and |
pursuant
to any investigation being conducted, or any |
action being taken, by the
Secretary in respect of any |
matter relating to the duties imposed upon, or
the powers |
vested in, the Secretary under the provisions of this Act |
or any
rule promulgated in accordance with this Act.
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(5) To conduct hearings.
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(6) To impose civil penalties graduated up to $10,000 |
$1,000 against any person
for each day that person violates
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violation of any provision of this Act, any rule |
promulgated in
accordance
with this Act, any State or |
federal law affecting pawnbrokers, or any order of the |
Secretary
based upon the seriousness of the violation.
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(6.5) To initiate, through the Attorney General, |
injunction proceedings
whenever it appears to the |
Secretary that any person, whether licensed under
this Act |
or not, is engaged or about to engage in an act or practice |
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that
constitutes or will constitute a violation of this Act |
or any rule prescribed
under the authority of this Act. The |
Secretary may, in his or her
discretion, through the |
Attorney General, apply for an injunction, and upon a
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proper showing, any circuit court may enter a permanent or |
preliminary
injunction or a temporary restraining order |
without bond to enforce this Act in
addition to the |
penalties and other remedies provided for in this Act.
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(7) To issue a cease and desist order and, for |
violations of
this Act, any order issued by the Secretary |
pursuant to this Act, any
rule promulgated in accordance |
with this Act,
or any other applicable law in connection |
with the operation of a pawnshop,
to suspend a license |
issued under this Act for up to 30 days.
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(8) To determine
compliance with applicable law and |
rules related to the operation of pawnshops
and to verify |
the accuracy of reports filed with the Secretary, the
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Secretary, not more than one time every 2 years, may, but |
is not required
to, conduct a routine examination of a |
pawnshop, and in
addition, the Secretary may examine the |
affairs of any pawnshop at any time if the Secretary
has
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reasonable cause to believe that unlawful or fraudulent |
activity is occurring,
or has occurred, therein.
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(9) In response to a complaint, to address any |
inquiries to any pawnshop
in relation to its affairs, and |
it shall be the duty of the pawnshop to
promptly reply in |
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writing to such inquiries. The Secretary may also require
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reports or information from any pawnshop at any time the |
Secretary may deem
desirable.
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(10) To revoke a license issued under this Act if the |
Secretary
determines that (a) a licensee has been convicted |
of a felony in connection
with the operations of a |
pawnshop; (b) a licensee knowingly, recklessly, or
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continuously violated this Act or State or federal law or |
regulation, a rule promulgated in
accordance with this Act, |
or any order of the Secretary; (c) a fact or
condition |
exists that, if it had existed or had been known at the |
time of the
original application, would have justified |
license refusal; (d) the licensee
knowingly submits |
materially false or misleading documents with the intent to
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deceive the Secretary or any other party; or (e) the |
licensee is unable or ceases to continue to operate the |
pawnshop.
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(10.2) To remove or prohibit the employment of any |
officer, director, employee, or agent of the pawnshop who |
engages in or has engaged in unlawful activities that |
relate to the operation of a pawnshop. |
(10.7) To prohibit the hiring of employees who have |
been convicted of a financial crime or any crime involving |
breach of trust who do not meet exceptions as established |
by rule of the Secretary.
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(11) Following license revocation, to take possession |
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and control of a
pawnshop for the purpose of examination, |
reorganization, or liquidation through
receivership and to |
appoint a receiver, which may be the Secretary, a
pawnshop, |
or
another suitable person.
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(b) After consultation with local law enforcement |
officers, the Attorney
General, and the industry, the Secretary |
may by rule require that
pawnbrokers
operate video camera |
surveillance systems to record photographic
representations of |
customers and retain the tapes produced for up to 30 days.
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(c) Pursuant to rule, the Secretary shall issue licenses on |
an annual or
multi-year basis for operating a
pawnshop. Any |
person currently operating or
who has operated a pawnshop in |
this State during the 2 years preceding the
effective date of |
this amendatory Act of 1997 shall be issued a license upon
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payment of the fee required under this Act. New applicants |
shall meet
standards for a license as established by the |
Secretary.
Except with the prior written consent of the |
Secretary, no individual,
either a new applicant or a person |
currently operating a pawnshop, may be
issued a license to |
operate a pawnshop if the individual has been convicted
of a |
felony or of any criminal offense relating to dishonesty or |
breach of
trust in connection with the operations of a |
pawnshop.
The Secretary shall
establish license fees. The fees |
shall not exceed the amount reasonably
required for |
administration of this Act. It shall be unlawful to operate a
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pawnshop without a license issued by the Secretary.
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(d) In addition to license fees, the Secretary may, by |
rule, establish
fees in connection with a review, approval, or |
provision of a service, and levy
a reasonable charge to recover |
the cost of the review, approval, or service
(such as a change |
in control, change in location, or renewal of a license).
The |
Secretary may also levy a reasonable charge to recover the cost |
of an
examination if the Secretary determines that unlawful or |
fraudulent activity
has occurred. The Secretary may require |
payment of the fees and charges
provided in this Act by |
certified check, money order, an electronic transfer of
funds, |
or an automatic debit of an account.
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(e) The Pawnbroker Regulation Fund is established as a |
special
fund in the State treasury. Moneys collected under this |
Act shall be deposited
into the Fund and used for the |
administration of this Act.
In the event that General Revenue |
Funds are appropriated to the Department of Financial and |
Professional Regulation for the initial implementation of this
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Act, the Governor may direct the repayment from the Pawnbroker |
Regulation
Fund to the General Revenue Fund of such advance in |
an amount not to exceed
$30,000. The Governor may direct this |
interfund transfer at such time as he
deems appropriate by |
giving appropriate written notice. Moneys in the Pawnbroker |
Regulation Fund may be transferred to the Professions Indirect |
Cost Fund, as authorized under Section 2105-300 of the |
Department of Professional Regulation Law of the Civil |
Administrative Code of Illinois.
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(f) The Secretary may, by rule, require all pawnshops to |
provide for
the expenses that would arise from the |
administration of the receivership of a
pawnshop under this Act |
through the assessment of fees, the requirement to
pledge |
surety bonds, or such other methods as determined by the |
Secretary.
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(g) All final administrative decisions of the Secretary |
under
this Act shall be subject to judicial review pursuant to |
the provisions of the
Administrative Review Law. For matters |
involving administrative review, venue
shall be in
either |
Sangamon County or Cook County.
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(Source: P.A. 96-1038, eff. 7-14-10; 96-1365, eff. 7-28-10; |
97-333, eff. 8-12-11.)
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(205 ILCS 510/4) (from Ch. 17, par. 4654)
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Sec. 4.
Every pawnbroker shall, at the time of making any |
advancement
or loan, deliver to the person pawning or pledging |
any property, a
memorandum, contract, or note signed by him or |
her containing an accurate
account and description, in the |
English language, of all the goods,
articles or other things |
pawned or pledged, the amount of money,
value of things loaned |
thereon, the time of pledging the same, the
rate of interest to |
be paid on the loan, the name and residence of
the person |
making the pawn or pledge, and the amount of any fees
as |
specified in Section 2 of this Act.
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(Source: P.A. 87-802.)
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