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1 | AN ACT concerning financial regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Pawnbroker Regulation Act is amended by | ||||||
5 | changing Sections 0.05, 5, 6, and 7.5 and by adding Section 15 | ||||||
6 | as follows:
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7 | (205 ILCS 510/0.05)
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8 | Sec. 0.05. Administration of Act.
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9 | (a) This Act shall be administered by the
Secretary of | ||||||
10 | Financial and Professional Regulation Commissioner of Banks | ||||||
11 | and Real Estate who shall have all of the following
powers and | ||||||
12 | duties in administering this Act:
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13 | (1) To promulgate reasonable rules for the purpose of | ||||||
14 | administering the
provisions of this Act.
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15 | (2) To issue orders for the purpose of administering | ||||||
16 | the provisions of
this
Act and any rule promulgated in | ||||||
17 | accordance with this Act.
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18 | (3) To appoint hearing officers and to hire employees | ||||||
19 | or to contract with
appropriate persons to execute any of | ||||||
20 | the powers granted to
the Secretary Commissioner under this | ||||||
21 | Section for the purpose of administering this
Act and any | ||||||
22 | rule promulgated in accordance with this Act.
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23 | (4) To subpoena witnesses, to compel their attendance, |
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1 | to administer an
oath, to examine any person under oath, | ||||||
2 | and to require the production of any
relevant books, | ||||||
3 | papers, accounts, and documents in the course of and | ||||||
4 | pursuant
to any investigation being conducted, or any | ||||||
5 | action being taken, by the
Secretary Commissioner in | ||||||
6 | respect of any matter relating to the duties imposed upon, | ||||||
7 | or
the powers vested in, the Secretary Commissioner under | ||||||
8 | the provisions of this Act or any
rule promulgated in | ||||||
9 | accordance with this Act.
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10 | (5) To conduct hearings.
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11 | (6) To impose civil penalties graduated up to $1,000 | ||||||
12 | against any person
for each
violation of any provision of | ||||||
13 | this Act, any rule promulgated in
accordance
with this Act, | ||||||
14 | or any order of the Secretary Commissioner
based upon the | ||||||
15 | seriousness of the violation.
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16 | (6.5) To initiate, through the Attorney General, | ||||||
17 | injunction proceedings
whenever it appears to the | ||||||
18 | Secretary Commissioner that any person, whether licensed | ||||||
19 | under
this Act or not, is engaged or about to engage in an | ||||||
20 | act or practice that
constitutes or will constitute a | ||||||
21 | violation of this Act or any rule prescribed
under the | ||||||
22 | authority of this Act. The Secretary Commissioner may, in | ||||||
23 | his or her
discretion, through the Attorney General, apply | ||||||
24 | for an injunction, and upon a
proper showing, any circuit | ||||||
25 | court may enter a permanent or preliminary
injunction or a | ||||||
26 | temporary restraining order without bond to enforce this |
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1 | Act in
addition to the penalties and other remedies | ||||||
2 | provided for in this Act.
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3 | (7) To issue a cease and desist order and, for | ||||||
4 | violations of
this Act, any order issued by the Secretary | ||||||
5 | Commissioner pursuant to this Act, any
rule promulgated in | ||||||
6 | accordance with this Act,
or any other applicable law in | ||||||
7 | connection with the operation of a pawnshop,
to suspend a | ||||||
8 | license issued under this Act for up to 30 days.
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9 | (8) To determine
compliance with applicable law and | ||||||
10 | rules related to the operation of pawnshops
and to verify | ||||||
11 | the accuracy of reports filed with the Secretary | ||||||
12 | Commissioner , the Secretary
Commissioner , not more than | ||||||
13 | one time every 2 years, may, but is not required
to, | ||||||
14 | conduct a routine examination of a pawnshop, and in
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15 | addition, the Secretary Commissioner may examine the | ||||||
16 | affairs of any pawnshop at any time if the Secretary | ||||||
17 | Commissioner
has
reasonable cause to believe that unlawful | ||||||
18 | or fraudulent activity is occurring,
or has occurred, | ||||||
19 | therein.
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20 | (9) In response to a complaint, to address any | ||||||
21 | inquiries to any pawnshop
in relation to its affairs, and | ||||||
22 | it shall be the duty of the pawnshop to
promptly reply in | ||||||
23 | writing to such inquiries. The Secretary Commissioner may | ||||||
24 | also require
reports or information from any pawnshop at | ||||||
25 | any time the Secretary Commissioner may deem
desirable.
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26 | (10) To revoke a license issued under this Act if the |
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1 | Secretary Commissioner
determines that (a) a licensee has | ||||||
2 | been convicted of a felony in connection
with the | ||||||
3 | operations of a pawnshop; (b) a licensee knowingly, | ||||||
4 | recklessly, or
continuously violated this Act, a rule | ||||||
5 | promulgated in
accordance with this Act, or any order of | ||||||
6 | the Secretary Commissioner ; (c) a fact or
condition exists | ||||||
7 | that, if it had existed or had been known at the time of | ||||||
8 | the
original application, would have justified license | ||||||
9 | refusal; or (d) the licensee
knowingly submits materially | ||||||
10 | false or misleading documents with the intent to
deceive | ||||||
11 | the Secretary Commissioner or any other party.
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12 | (11) Following license revocation, to take possession | ||||||
13 | and control of a
pawnshop for the purpose of examination, | ||||||
14 | reorganization, or liquidation through
receivership and to | ||||||
15 | appoint a receiver, which may be the Secretary | ||||||
16 | Commissioner , a
pawnshop, or
another suitable person.
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17 | (b) After consultation with local law enforcement | ||||||
18 | officers, the Attorney
General, and the industry, the Secretary | ||||||
19 | Commissioner may by rule require that
pawnbrokers
operate video | ||||||
20 | camera surveillance systems to record photographic
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21 | representations of customers and retain the tapes produced for | ||||||
22 | up to 30 days.
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23 | (c) Pursuant to rule, the Secretary Commissioner shall | ||||||
24 | issue licenses on an annual or
multi-year basis for operating a
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25 | pawnshop. Any person currently operating or
who has operated a | ||||||
26 | pawnshop in this State during the 2 years preceding the
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1 | effective date of this amendatory Act of 1997 shall be issued a | ||||||
2 | license upon
payment of the fee required under this Act. New | ||||||
3 | applicants shall meet
standards for a license as established by | ||||||
4 | the Secretary Commissioner .
Except with the prior written | ||||||
5 | consent of the Secretary Commissioner , no individual,
either a | ||||||
6 | new applicant or a person currently operating a pawnshop, may | ||||||
7 | be
issued a license to operate a pawnshop if the individual has | ||||||
8 | been convicted
of a felony or of any criminal offense relating | ||||||
9 | to dishonesty or breach of
trust in connection with the | ||||||
10 | operations of a pawnshop.
The Secretary Commissioner shall
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11 | establish license fees. The fees shall not exceed the amount | ||||||
12 | reasonably
required for administration of this Act. It shall be | ||||||
13 | unlawful to operate a
pawnshop without a license issued by the | ||||||
14 | Secretary Commissioner .
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15 | (d) In addition to license fees, the Secretary Commissioner | ||||||
16 | may, by rule, establish
fees in connection with a review, | ||||||
17 | approval, or provision of a service, and levy
a reasonable | ||||||
18 | charge to recover the cost of the review, approval, or service
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19 | (such as a change in control, change in location, or renewal of | ||||||
20 | a license).
The Secretary Commissioner may also levy a | ||||||
21 | reasonable charge to recover the cost of an
examination if the | ||||||
22 | Secretary Commissioner determines that unlawful or fraudulent | ||||||
23 | activity
has occurred. The Secretary Commissioner may require | ||||||
24 | payment of the fees and charges
provided in this Act by | ||||||
25 | certified check, money order, an electronic transfer of
funds, | ||||||
26 | or an automatic debit of an account.
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1 | (e) The Pawnbroker Regulation Fund is established as a | ||||||
2 | special
fund in the State treasury. Moneys collected under this | ||||||
3 | Act shall be deposited
into the Fund and used for the | ||||||
4 | administration of this Act.
In the event that General Revenue | ||||||
5 | Funds are appropriated to the Department of Financial and | ||||||
6 | Professional Regulation Office of the
Commissioner of Banks and | ||||||
7 | Real Estate for the initial implementation of this
Act, the | ||||||
8 | Governor may direct the repayment from the Pawnbroker | ||||||
9 | Regulation
Fund to the General Revenue Fund of such advance in | ||||||
10 | an amount not to exceed
$30,000. The Governor may direct this | ||||||
11 | interfund transfer at such time as he
deems appropriate by | ||||||
12 | giving appropriate written notice. Moneys in the Pawnbroker | ||||||
13 | Regulation Fund may be transferred to the Professions Indirect | ||||||
14 | Cost Fund, as authorized under Section 2105-300 of the | ||||||
15 | Department of Professional Regulation Law of the Civil | ||||||
16 | Administrative Code of Illinois.
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17 | (f) The Secretary Commissioner may, by rule, require all | ||||||
18 | pawnshops to provide for
the expenses that would arise from the | ||||||
19 | administration of the receivership of a
pawnshop under this Act | ||||||
20 | through the assessment of fees, the requirement to
pledge | ||||||
21 | surety bonds, or such other methods as determined by the | ||||||
22 | Secretary Commissioner .
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23 | (g) All final administrative decisions of the Secretary | ||||||
24 | Commissioner under
this Act shall be subject to judicial review | ||||||
25 | pursuant to the provisions of the
Administrative Review Law. | ||||||
26 | For matters involving administrative review, venue
shall be in
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1 | either Sangamon County or Cook County.
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2 | (Source: P.A. 94-91, eff. 7-1-05.)
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3 | (205 ILCS 510/5) (from Ch. 17, par. 4655)
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4 | Sec. 5. Record requirements.
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5 | (a) Except in municipalities located in counties having | ||||||
6 | 3,000,000 or more
inhabitants, every pawn and loan broker shall | ||||||
7 | keep a standard record book
that has been approved by the | ||||||
8 | sheriff of the county in which the pawnbroker
does business. In | ||||||
9 | municipalities in counties with
3,000,000 or more inhabitants, | ||||||
10 | the record book shall be approved by the police
department of | ||||||
11 | the municipality in which the pawn or loan broker does | ||||||
12 | business.
At the time of each and every loan or taking of a | ||||||
13 | pledge,
an accurate account and description, in the English | ||||||
14 | language, of all the
goods, articles and other things pawned or | ||||||
15 | pledged, the amount of money,
value or thing loaned thereon, | ||||||
16 | the time of pledging the same, the rate of
interest to be paid | ||||||
17 | on such loan, and the name and residence of the person
making | ||||||
18 | such pawn or pledge shall be printed, typed, or written in ink | ||||||
19 | in
the record book. Such entry shall include the serial number | ||||||
20 | or
identification number of items received which bear such
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21 | number. Except for items purchased from dealers possessing a | ||||||
22 | federal employee
identification number who have provided a | ||||||
23 | receipt to the pawnbroker, every
pawnbroker shall also record | ||||||
24 | in his book, an accurate account and description,
in the | ||||||
25 | English language, of all goods, articles and other things |
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1 | purchased or
received for the purpose of resale or loan | ||||||
2 | collateral by the pawnbroker from
any source, not in the course | ||||||
3 | of a pledge or loan, the time of such purchase
or receipt and | ||||||
4 | the name and address of the person or business which sold or
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5 | delivered such goods, articles, or other things to the | ||||||
6 | pawnbroker. No entry
in such book shall be erased, mutilated or | ||||||
7 | changed.
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8 | (b) Every pawnbroker shall require identification to be
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9 | shown him by each person pledging or pawning any goods, | ||||||
10 | articles or other
things to the pawnbroker. If the | ||||||
11 | identification shown is a driver's license
or a State | ||||||
12 | identification card issued by the Secretary of State and | ||||||
13 | contains a
photograph of the person being identified,
only one | ||||||
14 | form of identification must be shown. If the identification | ||||||
15 | shown
is not a driver's license or a State identification card | ||||||
16 | issued by the
Secretary
of State and does not contain a | ||||||
17 | photograph, 2 forms of identification must be
shown, and one of | ||||||
18 | the 2 forms of
identification must
include his or her residence | ||||||
19 | address. These forms of identification shall
include, but not | ||||||
20 | be limited to, any of the following: driver's license,
social | ||||||
21 | security card, utility bill, employee or student | ||||||
22 | identification card,
credit card, or a civic, union or | ||||||
23 | professional association membership card.
In addition, in a | ||||||
24 | municipality with a population of 1,000,000 or more
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25 | inhabitants, if the customer does not have an identification | ||||||
26 | issued by a
governmental entity containing a photograph of the |
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1 | person being identified, the
pawnbroker shall photograph the | ||||||
2 | customer in color and record the customer's
name, residence | ||||||
3 | address, date of birth, social security number, gender, height,
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4 | and weight on the reverse side of the photograph. If the | ||||||
5 | customer has no
social security number,
the pawnbroker shall | ||||||
6 | record this fact.
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7 | A county or municipality, including a home rule unit, may | ||||||
8 | regulate a
pawnbroker's identification requirements for | ||||||
9 | persons pledging or pawning goods,
articles, or other things to | ||||||
10 | the pawnbroker in a manner that is not less
restrictive than | ||||||
11 | the regulation by the State of a pawnbroker's identification
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12 | requirements for persons pledging or pawning goods, articles, | ||||||
13 | or other things.
A home rule unit
may not regulate a | ||||||
14 | pawnbroker's identification requirements for persons
pledging
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15 | or pawning goods, articles, or other things to the pawnbroker | ||||||
16 | in a manner less
restrictive than the regulation by the State | ||||||
17 | of a pawnbroker's identification
requirements for persons | ||||||
18 | pledging or pawning goods, articles, or other things.
This | ||||||
19 | Section is a limitation under subsection (i) of Section 6 of | ||||||
20 | Article VII
of the Illinois Constitution on the concurrent | ||||||
21 | exercise by home rule units of
the powers and functions | ||||||
22 | exercised by the State.
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23 | (c) A pawnbroker may maintain the records required by | ||||||
24 | subsection (a) in
computer form if the computer form has been | ||||||
25 | approved by the Commissioner, the
sheriff of the county in | ||||||
26 | which the shop is located, and the police department
of the |
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1 | municipality in which the shop is located.
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2 | (d) Records, including reports to the Secretary | ||||||
3 | Commissioner , maintained by
pawnbrokers shall be confidential, | ||||||
4 | and no disclosure of pawnbroker records
shall be made except | ||||||
5 | disclosures authorized by this Act or ordered by a court
of | ||||||
6 | competent jurisdiction. No record transferred to a | ||||||
7 | governmental official
shall be improperly disclosed, provided | ||||||
8 | that use of those records as evidence
of a felony or | ||||||
9 | misdemeanor shall be a proper purpose.
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10 | (e) Pawnbrokers and their associations may lawfully give | ||||||
11 | appropriate
governmental agencies computer equipment for the | ||||||
12 | purpose of transferring
information pursuant to this Act.
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13 | (Source: P.A. 91-608, eff. 8-19-99; 92-215, eff. 8-2-01.)
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14 | (205 ILCS 510/6) (from Ch. 17, par. 4656)
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15 | Sec. 6. Inspection of records.
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16 | (a) The book or computer
records, as well as every article | ||||||
17 | or other thing of value so
pawned or pledged, shall at all | ||||||
18 | times be open to the inspection of the Secretary
Commissioner , | ||||||
19 | the sheriff of the county, his deputies, or any members
of the
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20 | police force of
any city in the county in which such pawnbroker | ||||||
21 | does business.
In addition, the Secretary Commissioner shall be | ||||||
22 | authorized to inspect the books or
records of any business he | ||||||
23 | or she has reasonable cause to believe is conducting
pawn | ||||||
24 | transactions and should be licensed under this Act.
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25 | (b) The book or computer records, pawn tickets, or any |
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1 | other records
required by the Secretary Commissioner under this | ||||||
2 | Act or any rule promulgated in
accordance with this Act shall | ||||||
3 | be maintained for a period of 3 years after the
date on which | ||||||
4 | the record or ticket was prepared. These records and tickets
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5 | shall be open
to inspection of the Secretary Commissioner at | ||||||
6 | all times during the 3-year period.
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7 | (Source: P.A. 92-215, eff. 8-2-01.)
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8 | (205 ILCS 510/7.5)
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9 | Sec. 7.5. Report to the Secretary Commissioner .
The | ||||||
10 | Secretary Commissioner , as often as the Secretary Commissioner | ||||||
11 | shall deem necessary or
proper, may require a pawnshop to | ||||||
12 | submit a full and detailed report of its
operations including, | ||||||
13 | but not limited to, the number of pawns made, the amount
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14 | financed on pawn transactions, and the number and amount of | ||||||
15 | pawns surrendered
to law enforcement.
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16 | The Secretary Commissioner shall
prescribe the form of the | ||||||
17 | report and establish the date by which the report
must be | ||||||
18 | filed.
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19 | (Source: P.A. 90-477, eff. 7-1-98; 90-602, eff. 7-1-98.)
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20 | (205 ILCS 510/15 new) | ||||||
21 | Sec. 15. Temporary buying locations; unregistered buyers. | ||||||
22 | (a) For purposes of this Section: | ||||||
23 | "Temporary buying location" means a location used by an | ||||||
24 | unregistered buyer, including, but not limited to, hotels and |
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1 | motels. | ||||||
2 | "Unregistered buyer" means an individual business, or an | ||||||
3 | agent of an individual business, engaged in the business of | ||||||
4 | purchasing from the public, scrap precious metals, including, | ||||||
5 | but not limited to, jewelry, precious stones, semi-precious | ||||||
6 | stones, coins, silver, gold, and platinum, that conducts | ||||||
7 | transactions at a temporary buying location but is not | ||||||
8 | registered under this Act. | ||||||
9 | (b) An unregistered buyer that seeks to conduct business at | ||||||
10 | a temporary buying location in this State must comply with all | ||||||
11 | of the following: | ||||||
12 | (1) An unregistered buyer must register with the | ||||||
13 | sheriff of the county at least 30 days prior to its | ||||||
14 | intention to conduct transactions in that county. | ||||||
15 | (2) An unregistered buyer must submit by 6 a.m. each | ||||||
16 | day to the sheriff of the county in which he or she is | ||||||
17 | located detailed transaction records for the previous day, | ||||||
18 | which must include purchaser, seller, and inventory | ||||||
19 | information pursuant to subsection (b) of Section 5 of this | ||||||
20 | Act. | ||||||
21 | (3) An unregistered buyer must pay a registration fee | ||||||
22 | to the sheriff of the county in which it seeks to conduct | ||||||
23 | business. This fee shall be used to defray the cost of | ||||||
24 | reviewing the records required under this Section and may | ||||||
25 | be apportioned as the sheriff sees fit. | ||||||
26 | (c) The Department of Financial and Professional |
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1 | Regulation may adopt rules necessary for administration of this | ||||||
2 | Section, which must include a fee schedule for counties to | ||||||
3 | follow.
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4 | Section 99. Effective date. This Act takes effect upon | ||||||
5 | becoming law.
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