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Public Act 096-1038
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| HB4854 Enrolled | LRB096 16446 MJR 31714 b |
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AN ACT concerning financial 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, 5, 6, and 7.5 and by adding Section 15 |
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 Commissioner of Banks |
and Real Estate 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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(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 Commissioner 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, |
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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 Commissioner in |
respect of any matter relating to the duties imposed upon, |
or
the powers vested in, the Secretary Commissioner 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 $1,000 |
against any person
for each
violation of any provision of |
this Act, any rule promulgated in
accordance
with this Act, |
or any order of the Secretary Commissioner
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 Commissioner that any person, whether licensed |
under
this Act or not, is engaged or about to engage in an |
act or practice that
constitutes or will constitute a |
violation of this Act or any rule prescribed
under the |
authority of this Act. The Secretary Commissioner may, in |
his or her
discretion, through the Attorney General, apply |
for an injunction, and upon a
proper showing, any circuit |
court may enter a permanent or preliminary
injunction or a |
temporary restraining order without bond to enforce this |
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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 |
Commissioner 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 |
Commissioner, the Secretary
Commissioner, not more than |
one time every 2 years, may, but is not required
to, |
conduct a routine examination of a pawnshop, and in
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addition, the Secretary Commissioner may examine the |
affairs of any pawnshop at any time if the Secretary |
Commissioner
has
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 |
writing to such inquiries. The Secretary Commissioner may |
also require
reports or information from any pawnshop at |
any time the Secretary Commissioner may deem
desirable.
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(10) To revoke a license issued under this Act if the |
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Secretary Commissioner
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
continuously violated this Act, a rule |
promulgated in
accordance with this Act, or any order of |
the Secretary Commissioner; (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; or (d) the licensee
knowingly submits materially |
false or misleading documents with the intent to
deceive |
the Secretary Commissioner or any other party.
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(11) Following license revocation, to take possession |
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 |
Commissioner, 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 |
Commissioner may by rule require that
pawnbrokers
operate video |
camera surveillance systems to record photographic
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representations of customers and retain the tapes produced for |
up to 30 days.
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(c) Pursuant to rule, the Secretary Commissioner shall |
issue licenses on an annual or
multi-year basis for operating a
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pawnshop. Any person currently operating or
who has operated a |
pawnshop in this State during the 2 years preceding the
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effective date of this amendatory Act of 1997 shall be issued a |
license upon
payment of the fee required under this Act. New |
applicants shall meet
standards for a license as established by |
the Secretary Commissioner.
Except with the prior written |
consent of the Secretary Commissioner, 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 Commissioner shall
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establish license fees. The fees shall not exceed the amount |
reasonably
required for administration of this Act. It shall be |
unlawful to operate a
pawnshop without a license issued by the |
Secretary Commissioner.
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(d) In addition to license fees, the Secretary Commissioner |
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
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(such as a change in control, change in location, or renewal of |
a license).
The Secretary Commissioner may also levy a |
reasonable charge to recover the cost of an
examination if the |
Secretary Commissioner determines that unlawful or fraudulent |
activity
has occurred. The Secretary Commissioner 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 Office of the
Commissioner of Banks and |
Real Estate for the initial implementation of this
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 Commissioner 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 Commissioner.
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(g) All final administrative decisions of the Secretary |
Commissioner 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
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either Sangamon County or Cook County.
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(Source: P.A. 94-91, eff. 7-1-05.)
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(205 ILCS 510/5) (from Ch. 17, par. 4655)
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Sec. 5. Record requirements.
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(a) Except in municipalities located in counties having |
3,000,000 or more
inhabitants, every pawn and loan broker shall |
keep a standard record book
that has been approved by the |
sheriff of the county in which the pawnbroker
does business. In |
municipalities in counties with
3,000,000 or more inhabitants, |
the record book shall be approved by the police
department of |
the municipality in which the pawn or loan broker does |
business.
At the time of each and every loan or taking of a |
pledge,
an accurate account and description, in the English |
language, of all the
goods, articles and other things pawned or |
pledged, the amount of money,
value or thing loaned thereon, |
the time of pledging the same, the rate of
interest to be paid |
on such loan, and the name and residence of the person
making |
such pawn or pledge shall be printed, typed, or written in ink |
in
the record book. Such entry shall include the serial number |
or
identification number of items received which bear such
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number. Except for items purchased from dealers possessing a |
federal employee
identification number who have provided a |
receipt to the pawnbroker, every
pawnbroker shall also record |
in his book, an accurate account and description,
in the |
English language, of all goods, articles and other things |
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purchased or
received for the purpose of resale or loan |
collateral by the pawnbroker from
any source, not in the course |
of a pledge or loan, the time of such purchase
or receipt and |
the name and address of the person or business which sold or
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delivered such goods, articles, or other things to the |
pawnbroker. No entry
in such book shall be erased, mutilated or |
changed.
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(b) Every pawnbroker shall require identification to be
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shown him by each person pledging or pawning any goods, |
articles or other
things to the pawnbroker. If the |
identification shown is a driver's license
or a State |
identification card issued by the Secretary of State and |
contains a
photograph of the person being identified,
only one |
form of identification must be shown. If the identification |
shown
is not a driver's license or a State identification card |
issued by the
Secretary
of State and does not contain a |
photograph, 2 forms of identification must be
shown, and one of |
the 2 forms of
identification must
include his or her residence |
address. These forms of identification shall
include, but not |
be limited to, any of the following: driver's license,
social |
security card, utility bill, employee or student |
identification card,
credit card, or a civic, union or |
professional association membership card.
In addition, in a |
municipality with a population of 1,000,000 or more
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inhabitants, if the customer does not have an identification |
issued by a
governmental entity containing a photograph of the |
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person being identified, the
pawnbroker shall photograph the |
customer in color and record the customer's
name, residence |
address, date of birth, social security number, gender, height,
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and weight on the reverse side of the photograph. If the |
customer has no
social security number,
the pawnbroker shall |
record this fact.
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A county or municipality, including a home rule unit, may |
regulate a
pawnbroker's identification requirements for |
persons pledging or pawning goods,
articles, or other things to |
the pawnbroker in a manner that is not less
restrictive than |
the regulation by the State of a pawnbroker's identification
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requirements for persons pledging or pawning goods, articles, |
or other things.
A home rule unit
may not regulate a |
pawnbroker's identification requirements for persons
pledging
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or pawning goods, articles, or other things to the pawnbroker |
in a manner less
restrictive than the regulation by the State |
of a pawnbroker's identification
requirements for persons |
pledging or pawning goods, articles, or other things.
This |
Section is a limitation under subsection (i) of Section 6 of |
Article VII
of the Illinois Constitution on the concurrent |
exercise by home rule units of
the powers and functions |
exercised by the State.
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(c) A pawnbroker may maintain the records required by |
subsection (a) in
computer form if the computer form has been |
approved by the Commissioner, the
sheriff of the county in |
which the shop is located, and the police department
of the |
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municipality in which the shop is located.
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(d) Records, including reports to the Secretary |
Commissioner, maintained by
pawnbrokers shall be confidential, |
and no disclosure of pawnbroker records
shall be made except |
disclosures authorized by this Act or ordered by a court
of |
competent jurisdiction. No record transferred to a |
governmental official
shall be improperly disclosed, provided |
that use of those records as evidence
of a felony or |
misdemeanor shall be a proper purpose.
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(e) Pawnbrokers and their associations may lawfully give |
appropriate
governmental agencies computer equipment for the |
purpose of transferring
information pursuant to this Act.
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(Source: P.A. 91-608, eff. 8-19-99; 92-215, eff. 8-2-01.)
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(205 ILCS 510/6) (from Ch. 17, par. 4656)
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Sec. 6. Inspection of records.
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(a) The book or computer
records, as well as every article |
or other thing of value so
pawned or pledged, shall at all |
times be open to the inspection of the Secretary
Commissioner, |
the sheriff of the county, his deputies, or any members
of the
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police force of
any city in the county in which such pawnbroker |
does business.
In addition, the Secretary Commissioner shall be |
authorized to inspect the books or
records of any business he |
or she has reasonable cause to believe is conducting
pawn |
transactions and should be licensed under this Act.
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(b) The book or computer records, pawn tickets, or any |
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other records
required by the Secretary Commissioner under this |
Act or any rule promulgated in
accordance with this Act shall |
be maintained for a period of 3 years after the
date on which |
the record or ticket was prepared. These records and tickets
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shall be open
to inspection of the Secretary Commissioner at |
all times during the 3-year period.
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(Source: P.A. 92-215, eff. 8-2-01.)
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(205 ILCS 510/7.5)
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Sec. 7.5. Report to the Secretary Commissioner.
The |
Secretary Commissioner, as often as the Secretary Commissioner |
shall deem necessary or
proper, may require a pawnshop to |
submit a full and detailed report of its
operations including, |
but not limited to, the number of pawns made, the amount
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financed on pawn transactions, and the number and amount of |
pawns surrendered
to law enforcement.
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The Secretary Commissioner shall
prescribe the form of the |
report and establish the date by which the report
must be |
filed.
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(Source: P.A. 90-477, eff. 7-1-98; 90-602, eff. 7-1-98.)
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(205 ILCS 510/15 new) |
Sec. 15. Temporary buying locations; unregistered buyers. |
(a) For purposes of this Section: |
"Temporary buying location" means a location used by an |
unregistered buyer, including, but not limited to, hotels and |
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motels. |
"Unregistered buyer" means an individual business, or an |
agent of an individual business, engaged in the business of |
purchasing from the public, scrap precious metals, including, |
but not limited to, jewelry, precious stones, semi-precious |
stones, coins, silver, gold, and platinum, that conducts |
transactions at a temporary buying location but is not |
registered under this Act. |
(b) An unregistered buyer that seeks to conduct business at |
a temporary buying location in this State must comply with all |
of the following: |
(1) An unregistered buyer must register with the |
sheriff of the county at least 30 days prior to its |
intention to conduct transactions in that county. |
(2) An unregistered buyer must submit by 6 a.m. each |
day to the sheriff of the county in which he or she is |
located detailed transaction records for the previous day, |
which must include purchaser, seller, and inventory |
information pursuant to subsection (b) of Section 5 of this |
Act. |
(3) An unregistered buyer must pay a registration fee |
to the sheriff of the county in which it seeks to conduct |
business. This fee shall be used to defray the cost of |
reviewing the records required under this Section and may |
be apportioned as the sheriff sees fit. |
(c) The Department of Financial and Professional |