Public Act 096-1038
 
HB4854 EnrolledLRB096 16446 MJR 31714 b

    AN ACT concerning financial regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    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:
 
    (205 ILCS 510/0.05)
    Sec. 0.05. Administration of Act.
    (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:
        (1) To promulgate reasonable rules for the purpose of
    administering the provisions of this Act.
        (2) To issue orders for the purpose of administering
    the provisions of this Act and any rule promulgated in
    accordance with this Act.
        (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.
        (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 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.
        (5) To conduct hearings.
        (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.
        (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
    Act in addition to the penalties and other remedies
    provided for in this Act.
        (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.
        (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
    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.
        (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.
        (10) To revoke a license issued under this Act if the
    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.
        (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.
    (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
representations of customers and retain the tapes produced for
up to 30 days.
    (c) Pursuant to rule, the Secretary Commissioner 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 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
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.
    (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
(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.
    (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.
    (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.
    (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
either Sangamon County or Cook County.
(Source: P.A. 94-91, eff. 7-1-05.)
 
    (205 ILCS 510/5)  (from Ch. 17, par. 4655)
    Sec. 5. Record requirements.
    (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
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
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
delivered such goods, articles, or other things to the
pawnbroker. No entry in such book shall be erased, mutilated or
changed.
    (b) Every pawnbroker shall require identification to be
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
inhabitants, if the customer does not have an identification
issued by a governmental entity containing a photograph of the
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,
and weight on the reverse side of the photograph. If the
customer has no social security number, the pawnbroker shall
record this fact.
    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
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
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.
    (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
municipality in which the shop is located.
    (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.
    (e) Pawnbrokers and their associations may lawfully give
appropriate governmental agencies computer equipment for the
purpose of transferring information pursuant to this Act.
(Source: P.A. 91-608, eff. 8-19-99; 92-215, eff. 8-2-01.)
 
    (205 ILCS 510/6)  (from Ch. 17, par. 4656)
    Sec. 6. Inspection of records.
    (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
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.
    (b) The book or computer records, pawn tickets, or any
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
shall be open to inspection of the Secretary Commissioner at
all times during the 3-year period.
(Source: P.A. 92-215, eff. 8-2-01.)
 
    (205 ILCS 510/7.5)
    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
financed on pawn transactions, and the number and amount of
pawns surrendered to law enforcement.
    The Secretary Commissioner shall prescribe the form of the
report and establish the date by which the report must be
filed.
(Source: P.A. 90-477, eff. 7-1-98; 90-602, eff. 7-1-98.)
 
    (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
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
Regulation may adopt rules necessary for administration of this
Section, which must include a fee schedule for counties to
follow.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.