Sen. Christopher Belt

Filed: 3/8/2024

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2234

2    AMENDMENT NO. ______. Amend Senate Bill 2234 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. Short title. This Act may be cited as the
5Consumer Protections for Small Business Act.
 
6    Section 2. Purpose and construction. The purpose of this
7Act is to protect business owners. This Act shall be liberally
8construed to effectuate its purpose.
 
9    Section 5. Definitions. As used in this Act:
10    "Applicant" means a person who has submitted an
11application for a license under this Act.
12    "Closed-end financing" means a closed-end extension of
13credit, secured or unsecured, recourse or nonrecourse,
14including equipment financing that does not meet the
15definition of a lease under Section 2A-103 of the Uniform

 

 

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1Commercial Code, that the recipient does not intend to use for
2personal, family, or household purposes. "Closed-end
3financing" includes financing with an established principal
4amount and duration.
5    "Commercial financing database" means a reporting database
6certified by the Department as effective in receiving a report
7of commercial financing made under this Act.
8    "Commercial financing database provider" means an entity
9that provides a reporting database certified by the Department
10under this Act.
11    "Commercial financing" means open-end financing,
12closed-end financing, sales-based financing, factoring
13transaction, or other form of financing, the proceeds of which
14the recipient does not intend to use primarily for personal,
15family, or household purposes. For purposes of determining
16whether a financing is a commercial financing, the provider
17may rely on any statement of intended purposes by the
18recipient. The statement may be a separate statement signed by
19the recipient; may be contained in the financing application,
20financing agreement, or other document signed or consented to
21by the recipient; or may be provided orally by the recipient so
22long as it is documented in the recipient's application file
23by the provider. Electronic signatures and consents are valid
24for purposes of the foregoing sentence. The provider shall not
25be required to ascertain that the proceeds of a commercial
26financing are used in accordance with the recipient's

 

 

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1statement of intended purposes.
2    "Department" means the Department of Financial and
3Professional Regulation.
4    "Division of Financial Institutions" or "Division" means
5the Division of Financial Institutions of the Department of
6Financial and Professional Regulation.
7    "Factoring transaction" means an accounts receivable
8purchase transaction that includes an agreement to purchase,
9transfer, or sell a legally enforceable claim for payment held
10by a recipient for goods the recipient has supplied or
11services the recipient has rendered that have been ordered but
12for which payment has not yet been made.
13    "Finance charge" means the cost of financing as a dollar
14amount. "Finance charge" includes any charge payable directly
15or indirectly by the recipient and imposed directly or
16indirectly by the provider as an incident to or a condition of
17the extension of financing. "Finance charge" includes any
18charges as determined by the Secretary. For the purposes of an
19open-end financing, "finance charge" means the maximum amount
20of credit available to the recipient, in each case, that is
21drawn and held for the duration of the term or draw period. For
22the purposes of a factoring transaction, "finance charge"
23includes the discount taken on the face value of the accounts
24receivable. In addition, the finance charge shall include any
25charges determined by the Secretary.
26    "Open-end financing" means an agreement for one or more

 

 

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1extensions of open-end credit, secured or unsecured, that the
2recipient does not intend to use the proceeds of primarily for
3personal, family, or household purposes. "Open-end financing"
4includes credit extended by a provider under a plan in which:
5(i) the provider reasonably contemplates repeated
6transactions; (ii) the provider may impose a finance charge
7from time to time on an outstanding unpaid balance; and (iii)
8the amount of credit that may be extended to the recipient
9during the term of the plan is generally made available to the
10extent that any outstanding balance is repaid.
11    "Person" means an individual, entity, corporation,
12partnership, limited liability company, joint venture,
13association, joint stock company, trust, or unincorporated
14organization, including, but not limited to, a sole
15proprietorship.
16    "Provider" means a person who extends a specific offer of
17commercial financing to a recipient. "Provider", unless
18otherwise exempt, includes a person who solicits and presents
19specific offers of commercial financing on behalf of a third
20party. The mere extension of a specific offer or provision of
21disclosures for a commercial financing, is not sufficient to
22conclude that a provider is originating, making, funding, or
23providing commercial financing. "Provider" does not include:
24        (1) a bank, trust company, or industrial loan company,
25    or any subsidiary or affiliate thereof, doing business
26    under the authority of, or in accordance with, a license,

 

 

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1    certificate or charter issued by the United States, this
2    State, or any other state, district, territory, or
3    commonwealth of the United States that is authorized to
4    transact business in this State;
5        (2) a federally chartered savings and loan
6    association, federal savings bank, or federal credit
7    union, or any subsidiary or affiliate thereof, that is
8    authorized to transact business in this State;
9        (3) a savings and loan association, savings bank, or
10    credit union, or any subsidiary or affiliate thereof,
11    organized under the laws of this State or any other state
12    that is authorized to transact business in this State;
13        (4) a lender regulated under the federal Farm Credit
14    Act; and
15        (5) a person acting as a technology services provider
16    to an entity described by sub-paragraphs (1), (2), or (3)
17    for use as part of that entity's commercial financing
18    program, provided the person has no interest, or
19    arrangement, or agreement to purchase any interest in the
20    commercial financing extended by the entity in connection
21    with the program.
22    "Recipient" means a person who applies for commercial
23financing and is made a specific offer of commercial financing
24by a provider. "Recipient" includes an authorized
25representative of a person who applies for commercial
26financing and is made a specific offer of commercial financing

 

 

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1by a provider. "Recipient" does not include a person acting as
2a broker is not a recipient in a transaction they broker.
3    "Sales-based financing" means a transaction that is repaid
4by the recipient to the provider, over time, as a percentage of
5sales or revenue, in which the payment amount may increase or
6decrease according to the volume of sales made or revenue
7received by the recipient or a transaction that includes a
8true-up mechanism where the financing is repaid as a fixed
9payment but provides for a reconciliation process that adjusts
10the payment to an amount that is a percentage of sales or
11revenue.
12    "Secretary" means the Secretary of Financial and
13Professional Regulation or a person authorized by the
14Secretary to perform the Secretary's responsibilities under
15this Act.
16    "Specific offer" means the specific terms of commercial
17financing, including price or amount, that is quoted to a
18recipient based on information obtained from or about the
19recipient that, if accepted by a recipient, shall be binding
20on the provider, as applicable, subject to any specific
21requirements stated in the specific terms.
 
22    Section 10. Applicability.
23    (a) Except as otherwise provided in this Section, this Act
24applies to any person that offers or provides commercial
25financing in Illinois or is otherwise a provider.

 

 

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1    (b) The provisions of this Act apply to any person that
2seeks to evade its applicability by any device, subterfuge, or
3pretense whatsoever.
4    (c) The provisions of this Act apply to any person that
5aids or facilitates a violation of this Act.
6    (d) The provisions of this Act do not apply to:
7        (1) a bank, trust company, or industrial loan company
8    doing business under the authority of, or in accordance
9    with, a license, certificate or charter issued by the
10    United States, this State, or any other state, district,
11    territory, or commonwealth of the United States that is
12    authorized to transact business in this State;
13        (2) a federally chartered savings and loan
14    association, federal savings bank, or federal credit union
15    that is authorized to transact business in this State;
16        (3) a savings and loan association, savings bank, or
17    credit union organized under the laws of this State or any
18    other state that is authorized to transact business in
19    this State;
20        (4) a lender regulated under the federal Farm Credit
21    Act; and
22        (5) a person acting in the person's capacity as a
23    technology services provider to an entity described by
24    sub-paragraphs (1), (2), or (3) for use as part of that
25    entity's commercial financing program, provided the person
26    has no interest, or arrangement, or agreement to purchase

 

 

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1    any interest in the commercial financing extended by the
2    entity in connection with the program.
 
3    Section 15. Division of Financial Institutions. This Act
4shall be administered by the Division on behalf of the
5Secretary.
 
6    Section 20. Licensure requirement. No person shall engage
7in the conduct regulated by this Act without licensure under
8this Act. Any Person who provides commercial financing without
9the license required by this Act is guilty of a Class 4 felony.
10The Secretary shall be empowered to investigate any person
11they believe may require licensure under this Act including,
12but not limited to, compelling production of testimony, books,
13records, or any other information necessary for the Secretary
14to determine whether the Person requires licensure.
 
15    Section 25. Licensee name. No person providing commercial
16financing may operate the business under a name other than the
17real names of the entity and individuals conducting the
18business. The business may operate under an assumed corporate
19name under the Business Corporation Act of 1983, an assumed
20limited liability company name under the Limited Liability
21Company Act, or an assumed business name under the Assumed
22Business Name Act with written authorization from the
23Secretary. Each licensee shall update its name with the

 

 

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1Department within 10 days after the change of name.
 
2    Section 30. Application process; investigation; fees.
3    (a) The Secretary may issue a license to a person after the
4person completes all of the following:
5        (1) the filing of an application for license with the
6    Secretary or a multistate licensing system as approved by
7    the Secretary;
8        (2) the filing with the Secretary or a multistate
9    licensing system as approved by the Secretary of a listing
10    of judgments entered against, and bankruptcy petitions by,
11    the applicant for the preceding 10 years;
12        (3) the payment, in certified funds, of investigation
13    and application fees, the total of which shall be in an
14    amount equal to $2,500; and
15        (4) the filing of an audited balance sheet, including
16    all footnotes prepared by a certified public accountant in
17    accordance with generally accepted accounting principles
18    and generally accepted auditing standards; notwithstanding
19    the requirements of this paragraph, an applicant that is a
20    subsidiary may submit audited consolidated financial
21    statements of its parent, intermediary parent, or ultimate
22    parent as long as the consolidated statements are
23    supported by consolidating statements that include the
24    applicant's financial statement; if the consolidating
25    statements are unaudited, the applicant's chief financial

 

 

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1    officer shall attest to the applicant's financial
2    statements disclosed in the consolidating statements.
3    (b) The Secretary may, for good cause shown, waive or
4modify the requirements of subsection (a).
5    (c) Upon receipt of the license, a licensee is authorized
6to engage in conduct regulated by this Act. The license shall
7remain in full force and effect until it expires, is
8surrendered by the licensee, or is revoked or suspended as
9provided in this Act.
10    (d) The Secretary may impose conditions on a license if
11the Secretary determines that those conditions are necessary
12or appropriate. These conditions shall be imposed in writing
13and shall continue in effect for the period prescribed by the
14Secretary.
 
15    Section 35. Application form.
16    (a) Application for a license shall be made in accordance
17with this Act, and in accordance with requirements of the
18multistate licensing system, if required by the Secretary. The
19application shall be in writing, under oath, and on a form
20obtained from and prescribed by the Secretary. The Secretary
21may change or update the form to carry out the purposes of this
22Act. The Secretary may require part or all of the application
23to be submitted electronically, with attestation, to the
24multistate licensing system.
25    (b) The application shall contain the name and complete

 

 

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1business and residential address or addresses of the
2applicant. The application shall also include a description of
3the activities of the applicant in detail and for the periods
4as the Secretary may require, including all of the following:
5        (1) an affirmation that the applicant and its members,
6    directors, or principals, as may be appropriate, are at
7    least 18 years of age;
8        (2) information as to the name, complete business
9    address, complete residential address, character, fitness,
10    financial and business responsibility, background,
11    experience, and criminal record of any:
12            (i) person, including an ultimate equitable owner,
13        that directly or indirectly owns or controls 10% or
14        more of any class of stock of the applicant;
15            (ii) person, including an ultimate equitable owner
16        that is not a depository institution, as defined in
17        the Savings Bank Act, that lends, provides, or
18        infuses, directly or indirectly, in any way, funds to
19        or into an applicant in an amount equal to or more than
20        10% of the applicant's net worth;
21            (iii) person, including an ultimate equitable
22        owner that controls, directly or indirectly, the
23        election of 25% or more of the members of the board of
24        directors of an applicant;
25            (iv) person, including an ultimate equitable owner
26        that the Secretary finds influences the management of

 

 

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1        the applicant;
2            (v) director or directors of an applicant; and
3            (vi) principal officers of an applicant; and
4        (3) other information as required by the Secretary to
5    assess whether the applicant and its owners, officers, and
6    directors have the financial responsibility, financial
7    condition, business experience, character, and general
8    fitness to justify the confidence of the public and that
9    the applicant and its owners, officers, and directors are
10    fit, willing, and able to carry on the proposed business
11    in a lawful and fair manner.
 
12    Section 40. Additional license application information.
13    (a) In order to fulfill the purposes of this Act, the
14Secretary may establish relationships or contracts with a
15multistate licensing system or other persons to collect and
16maintain records and process fees related to licensees or
17other persons subject to this Act.
18    (b) In connection with an application for licensing, the
19applicant, owners, officers, and directors of an applicant may
20be required, at a minimum, to furnish to the Secretary or
21multistate licensing system information concerning the
22applicant's, owners', officers' and directors' identity,
23including personal history and experience in a form prescribed
24by the Secretary or multistate licensing system, including,
25but not limited to:

 

 

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1        (1) a complete and accurate copy of an independent
2    credit report obtained from a consumer reporting agency
3    described in Section 603(p) of the Fair Credit Reporting
4    Act (15 U.S.C. 1681a(p)); and
5        (2) information related to any administrative, civil,
6    or criminal findings by any governmental jurisdiction.
7    (c) For the purposes of this Section, and to reduce the
8points of contact that the Secretary may have to maintain, the
9Secretary may use a multistate licensing system as a
10channeling agent for requesting and distributing information
11to and from any source.
12    (d) Each application shall be accompanied by averments as
13determined by the Secretary to fulfill the purposes of this
14Act.
15    (e) Each applicant shall furnish to the Secretary or
16multistate licensing system an updated business address within
1710 days after any change of business address.
 
18    Section 45. Refusal to issue or renew license. The
19Secretary may refuse to issue or renew a license if:
20        (1) the Secretary determines that the applicant has
21    not complied with a provision of this Act, its
22    implementing rules, or other laws that apply to the
23    applicant;
24        (2) the Secretary determines that there is substantial
25    continuity between the applicant and any violator of this

 

 

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1    Act, its implementing rules, or other laws that apply to
2    the applicant or related violator; or
3        (3) the Secretary determines that the applicant or its
4    owners, officers, or directors do not have the financial
5    responsibility, financial condition, business experience,
6    character, and general fitness of to justify the
7    confidence of the public and that the license applicant
8    and its owners, officers, and directors are fit, willing,
9    and able to carry on the proposed business in a lawful and
10    fair manner.
 
11    Section 50. License issuance and renewal.
12    (a) Licensees shall apply to renew their license every
13calendar year. Licensees may submit properly completed renewal
14application forms and filing fees 60 days before the license
15expiration date and the same shall be received by the
16Secretary at least 30 days before the license expiration date.
17    (b) Each licensee shall timely renew its license. Absent a
18written extension from the Department, a license shall expire
19on December 31 if a licensee fails to timely submit a properly
20completed renewal application form and fees.
21    (c) No activity regulated by this Act shall be conducted
22by a licensee whose license has expired. The Secretary may,
23within the Secretary's discretion, reinstate an expired
24license upon payment of the renewal fee, payment of a
25reactivation fee equal to 5 times the renewal fee, submission

 

 

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1of a completed renewal application, and an affidavit of good
2cause for late renewal.
 
3    Section 55. Fees.
4    (a) The persons regulated by this Act shall bear the
5expenses of administering this Act, including investigations
6and examinations provided for in this Act. The Secretary may
7establish fees by rule or modify fees in at least the following
8categories:
9        (1) application and renewal fees;
10        (2) examination and investigation fees;
11        (3) change fees;
12        (4) contingent fees; and
13        (5) other fees as may be required to administer this
14    Act.
15    (b) The Secretary may modify any fees established by this
16Act by rule one year after the effective date of this Act.
 
17    Section 60. Functions; powers; duties. The functions,
18powers, and duties of the Secretary include, but are not
19limited to, the following:
20        (1) to issue or refuse to issue any license or
21    renewal;
22        (2) to revoke or suspend for cause any license issued
23    under this Act;
24        (3) to keep records of all licenses issued under this

 

 

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1    Act;
2        (4) to receive, consider, investigate, and act upon
3    complaints made by any person in connection with any
4    licensee in this State or unlicensed commercial financing
5    activity of any person;
6        (5) to prescribe the forms of and receive:
7            (A) applications for licenses and renewals; and
8            (B) all reports and all books and records required
9        to be made by any licensee under this Act, including
10        annual audited financial statements if required by the
11        Secretary and annual reports of commercial financing
12        activity;
13        (6) to adopt rules necessary and proper for the
14    administration of this Act, to protect consumers, and
15    promote fair competition or otherwise authorized by this
16    Act;
17        (7) to subpoena documents and witnesses and compel
18    their attendance and production, to administer oaths, and
19    to require the production of any books, papers, or other
20    materials relevant to any inquiry authorized by this Act
21    or its implementing rules;
22        (8) to issue orders against any person if the
23    Secretary has reasonable cause to believe that an unsafe,
24    unsound, or unlawful practice has occurred, is occurring,
25    or is about to occur; if any person is violating, or is
26    about to violate any law, rule, or written agreement with

 

 

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1    the Secretary; or for the purpose of administering the
2    provisions of this Act and any rule adopted in accordance
3    with this Act;
4        (9) to address any inquiries to any licensee, or the
5    owners, officers, or directors thereof, in relation to its
6    activities and conditions, or any other matter connected
7    with its affairs, and any licensee or person so addressed
8    shall promptly reply in writing to those inquiries. The
9    Secretary may also require reports from any licensee at
10    any time the Secretary deems desirable;
11        (10) to examine the books and records of every
12    licensee under this Act or any person requiring a license
13    or who the Secretary reasonably believes may require a
14    license;
15        (11) to enforce provisions of this Act and its
16    implementing rules;
17        (12) to levy fees including, but not limited to,
18    assessments, examination fees, and licensing fees, civil
19    penalties, and charges for services performed in
20    administering this Act. The aggregate of all fees
21    collected by the Secretary under this Act shall be paid
22    promptly after receipt into the Financial Institution
23    Fund. The amounts deposited into the Financial Institution
24    Fund shall be used for the ordinary and contingent
25    expenses of the Department. Nothing in this Act prevents
26    paying expenses including salaries, retirement, social

 

 

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1    security, and State-paid insurance of State employees, or
2    any other expenses incurred under this Act by
3    appropriation from the General Revenue Fund or any other
4    fund;
5        (13) to issue refunds to licensees of any overpayment
6    for good cause shown;
7        (14) to appoint examiners, supervisors, experts, and
8    special assistants as needed to effectively and
9    efficiently administer this Act;
10        (15) to conduct hearings for the purpose of
11    suspensions, denials, or revocations of licenses, fining,
12    or other discipline of licensees or unlicensed persons or
13    entities;
14        (16) to exercise visitorial power over a licensee;
15        (17) to enter into cooperative agreements with state
16    regulatory authorities of other states to provide for
17    examination of corporate offices or branches of those
18    states, participate in joint examinations with other
19    regulators, and to accept reports of the examinations;
20        (18) to assign an examiner or examiners to monitor the
21    affairs of a licensee with whatever frequency the
22    Secretary determines appropriate and to charge the
23    licensee for reasonable and necessary expenses of the
24    Secretary if in the opinion of the Secretary an emergency
25    exists or appears likely to occur;
26        (19) to impose civil penalties of up to $200 per day

 

 

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1    against a licensee for failing to respond to a regulatory
2    request or reporting requirement; and
3        (20) to enter into agreements in connection with a
4    multistate licensing system.
 
5    Section 65. Examination; prohibited activities.
6    (a) The Secretary shall examine the business affairs of a
7licensee under this Act as often as the Secretary deems
8necessary and proper. The Secretary may adopt rules with
9respect to the frequency and manner of examination. The
10Secretary shall appoint a suitable person to perform the
11examination. The Secretary and the Secretary's appointees may
12examine the entire books, records, documents, and operations
13of each licensee and its subsidiary, affiliate, or agent, and
14may examine any of the licensee's or its subsidiaries',
15owners, affiliates', or agents' officers, directors,
16employees, and agents under oath.
17    (b) Affiliates of a licensee shall be subject to
18examination by the Secretary on the same terms as the
19licensee, but only when reports from or examination of a
20licensee provides for documented evidence of unlawful activity
21between a licensee and affiliate benefiting, affecting, or
22deriving from the activities regulated by this Act.
23    (c) The expenses of any examination of the licensee or its
24affiliates shall be borne by the licensee and assessed by the
25Secretary as may be established by rule.

 

 

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1    (d) All confidential supervisory information, including
2the examination report and the work papers of the report,
3shall belong to the Secretary's office and may not be
4disclosed to anyone other than the licensee, law enforcement
5officials, or other regulatory agencies that have an
6appropriate regulatory interest as determined by the Secretary
7or to a party presenting a lawful subpoena to the Department.
8The Secretary may, through the Attorney General, immediately
9appeal to the court of jurisdiction the disclosure of the
10confidential supervisory information and seek a stay of the
11subpoena pending the outcome of the appeal. Reports required
12of licensees by the Secretary under this Act and results of
13examinations performed by the Secretary under this Act shall
14be the property of only the Secretary, but may be shared with
15the licensee. Any person demanded to produce the Department's
16confidential supervisory information, whether by subpoena,
17order, or other judicial or administrative process, shall
18withhold production of the confidential supervisory
19information and shall notify the Secretary of the demand. The
20Secretary is authorized to intervene for the purpose of
21enforcing the limitations of this Section or seeking the
22withdrawal or termination of the attempt to compel production
23of the confidential supervisory information. The Secretary may
24impose any conditions and limitations on the disclosure of
25confidential supervisory information that are necessary to
26protect the confidentiality of that information. The Secretary

 

 

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1may condition a decision to disclose confidential supervisory
2information on entry of a protective order by the court or
3administrative tribunal presiding in the particular case or on
4a written agreement of confidentiality. If a protective order
5or agreement has already been entered between parties other
6than the Secretary, then the Secretary may nevertheless
7condition approval for release of confidential supervisory
8information upon the inclusion of additional or amended
9provisions in the protective order. The Secretary may
10authorize a party who obtained the records for use in one case
11to provide them to another party in another case, subject to
12any conditions that the Secretary may impose on either or both
13parties. The requester shall promptly notify other parties to
14a case of the release of confidential supervisory information
15obtained and, upon entry of a protective order, shall provide
16copies of confidential supervisory information to the other
17parties.
 
18    Section 70. Subpoena power of the Secretary.
19    (a) The Secretary may issue and serve subpoenas and
20subpoenas duces tecum to compel the attendance of witnesses
21and the production of all books, accounts, records, and other
22documents and materials relevant to an examination or
23investigation. The Secretary, or the Secretary's duly
24authorized representative, may administer oaths and
25affirmations to any person.

 

 

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1    (b) If a person does not comply with the Secretary's
2subpoena or subpoena duces tecum, the Secretary may, through
3the Attorney General, petition the circuit court of the county
4in which the subpoenaed person resides or has its principal
5place of business for an order requiring the subpoenaed person
6to testify and to comply with the subpoena duces tecum. The
7court may grant injunctive relief restraining the person from
8engaging in activity regulated by this Act. The court may
9grant other relief, including, but not limited to, the
10restraint, by injunction or appointment of a receiver, of any
11transfer, pledge, assignment, or other disposition of the
12person's assets, concealment, destruction, or other
13disposition of books, accounts, records, or other documents
14and materials, as the court deems appropriate, until the
15person has fully complied with the subpoena or subpoena duces
16tecum and the Secretary has completed an investigation or
17examination.
18    (c) If it appears to the Secretary that the compliance
19with a subpoena or subpoena duces tecum issued or caused to be
20issued by the Secretary under this Section is essential to an
21investigation or examination, the Secretary, in addition to
22the other remedies provided for in this Act, may, through the
23Attorney General, apply for relief to the circuit court of the
24county in which the subpoenaed person resides or has its
25principal place of business. The court shall thereupon direct
26the issuance of an order against the subpoenaed person

 

 

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1requiring sufficient bond conditioned on compliance with the
2subpoena or subpoena duces tecum. The court shall cause to be
3endorsed on the order a suitable amount of bond or payment
4pursuant to which the person named be freed, having a due
5regard to the nature of the case.
6    (d) In addition, the Secretary may, through the Attorney
7General, seek a writ of attachment or an equivalent order from
8the circuit court having jurisdiction over the person who has
9refused to obey a subpoena, who has refused to give testimony,
10or who has refused to produce the matters described in the
11subpoena duces tecum.
 
12    Section 75. Reports required.
13    (a) Every licensee shall produce to the Department reports
14the Secretary requests within 90 days after the Secretary's
15request unless exigent circumstances require production in a
16shorter timeframe.
17    (b) Every provider shall produce to the Department a
18report of its commercial financing activity upon the request
19of the Secretary. Every provider shall produce its report to
20the Department within 90 days after the Secretary's request.
21The Department may require reports under this subsection
22before a provider shall become licensed under this Act.
 
23    Section 76. Sales-based financing disclosure requirements.
24A provider subject to this Act shall provide the following

 

 

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1disclosures to a recipient, in a manner prescribed by the
2Secretary, if any, at the time of extending a specific offer of
3sales-based financing:
4        (1) The total amount of the commercial financing, and,
5    if different from the financing amount, the disbursement
6    amount after any amount deducted or withheld at
7    disbursement.
8        (2) The finance charge.
9        (3) The estimated annual percentage rate, using the
10    words annual percentage rate or the abbreviation
11    "Estimated APR", expressed as a yearly rate, inclusive of
12    any fees and finance charges, based on the estimated term
13    of repayment and the projected periodic payment amounts.
14    The estimated term of repayment and the projected periodic
15    payment amounts shall be calculated based on the
16    projection of the recipient's sales, which may be referred
17    to as the projected sales volume. The projected sales
18    volume may be calculated using the historical method or
19    the underwriting method. The provider shall provide notice
20    to the Secretary on which method the provider intends to
21    use across all instances of sales-based financing offered
22    in calculating the estimated annual percentage rate under
23    this Section, according to the following:
24            (A) A provider using the historical method shall
25        use an average historical volume of sales or revenue
26        by which the financing's payment amounts are based and

 

 

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1        the estimated annual percentage rate is calculated.
2        The provider shall fix the historical time period used
3        to calculate the average historical volume and use the
4        period for all disclosure purposes for all sales-based
5        financing products offered. The fixed historical time
6        period shall either be the preceding time period from
7        the specific offer or, alternatively, the provider may
8        use average sales for the same number of months with
9        the highest sales volume within the previous 12
10        months. The fixed historical time period shall be no
11        less than one month and shall not exceed 12 months.
12            (B) A provider using the underwriting method shall
13        determine the estimated annual percentage rate, the
14        estimated term, and the projected payments, using a
15        projected sales volume that the provider elects for
16        each disclosure, if they participate in a review
17        process prescribed by the Secretary. A provider shall,
18        on an annual basis, report data to the Secretary of
19        estimated annual percentage rates disclosed to the
20        recipient and actual retrospective annual percentage
21        rates of completed transactions. The report shall
22        contain the information as the Department may adopt by
23        rule as necessary or appropriate for the purpose of
24        making a determination of whether the deviation
25        between the estimated annual percentage rate and
26        actual retrospective annual percentage rates of

 

 

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1        completed transactions was reasonable. The Secretary
2        shall establish the method of reporting and may, upon
3        a finding that the use of projected sales volume by the
4        provider has resulted in an unacceptable deviation
5        between estimated and actual annual percentage rate,
6        require the provider to use the historical method. The
7        Secretary may consider unusual and extraordinary
8        circumstances impacting the provider's deviation
9        between estimated and actual annual percentage rate in
10        the determination of the finding.
11        (4) The total repayment amount, which is the
12    disbursement amount plus the finance charge.
13        (5) The estimated term, which is the period of time
14    required for the periodic payments, based on the projected
15    sales volume, to equal the total amount required to be
16    repaid.
17        (6) The payment amounts, based on the projected sales
18    volume:
19            (A) for payment amounts that are fixed, the
20        payment amounts and frequency, such as, daily, weekly,
21        monthly, and, if the payment frequency is other than
22        monthly, the amount of the average projected payments
23        per month; or
24            (B) for payment amounts that are variable, a
25        payment schedule or a description of the method used
26        to calculate the amounts and frequency of payments and

 

 

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1        the amount of the average projected payments per
2        month.
3        (7) A description of all other potential fees and
4    charges not included in the finance charge, including, but
5    not limited to, draw fees, late payment fees, and returned
6    payment fees.
7        (8) If the recipient elects to pay off or refinance
8    the commercial financing before full repayment, the
9    provider shall disclose:
10            (A) whether the recipient would be required to pay
11        any finance charges other than interest accrued since
12        their last payment; if so, disclosure of the
13        percentage of any unpaid portion of the finance charge
14        and maximum dollar amount the recipient could be
15        required to pay; and
16            (B) whether the recipient would be required to pay
17        any additional fees not already included in the
18        finance charge.
19        (9) A description of collateral requirements or
20    security interests, if any.
 
21    Section 77. Closed-end commercial financing disclosure
22requirements. A provider subject to this Act shall provide the
23following disclosures to a recipient, in a manner prescribed
24by the Secretary, if any, at the time of extending a specific
25offer for closed-end financing:

 

 

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1        (1) The total amount of the commercial financing, and,
2    if different from the financing amount, the disbursement
3    amount after any amount deducted or withheld at
4    disbursement.
5        (2) The finance charge.
6        (3) The annual percentage rate, using only the words
7    annual percentage rate or the abbreviation "APR",
8    expressed as a yearly rate, inclusive of any fees and
9    finance charges that cannot be avoided by a recipient.
10        (4) The total repayment amount, which is the
11    disbursement amount plus the finance charge.
12        (5) The term of the financing.
13        (6) The payment amounts:
14            (A) for payment amounts that are fixed, the
15        payment amounts and frequency, such as daily, weekly,
16        monthly, and, if the term is longer than one month, the
17        average monthly payment amount; or
18            (B) for payment amounts that are variable, a full
19        payment schedule or a description of the method used
20        to calculate the amounts and frequency of payments,
21        and, if the term is longer than one month, the
22        estimated average monthly payment amount.
23        (7) A description of all other potential fees and
24    charges that can be avoided by the recipient, including,
25    but not limited to, late payment fees and returned payment
26    fees.

 

 

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1        (8) If the recipient elects to pay off or refinance
2    the commercial financing before full repayment, the
3    provider shall disclose:
4            (A) whether the recipient would be required to pay
5        any finance charges other than interest accrued since
6        their last payment; if so, disclosure of the
7        percentage of any unpaid portion of the finance charge
8        and maximum dollar amount the recipient could be
9        required to pay; and
10            (B) whether the recipient would be required to pay
11        any additional fees not already included in the
12        finance charge.
13        (9) A description of collateral requirements or
14    security interests, if any.
 
15    Section 78. Open-end commercial financing disclosure
16requirements. A provider subject to this Act shall provide the
17following disclosures to a recipient, in a manner prescribed
18by the Secretary, if any, at the time of extending a specific
19offer for open-end financing:
20        (1) The maximum amount of credit available to the
21    recipient, such as the credit line amount, and the amount
22    scheduled to be drawn by the recipient at the time the
23    offer is extended, if any, less any amount deducted or
24    withheld at disbursement.
25        (2) The finance charge.

 

 

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1        (3) The annual percentage rate, using only the words
2    annual percentage rate or the abbreviation "APR",
3    expressed as a nominal yearly rate, inclusive of any fees
4    and finance charges that cannot be avoided by a recipient,
5    and based on the maximum amount of credit available to the
6    recipient and the term resulting from making the minimum
7    required payments term as disclosed.
8        (4) The total repayment amount, which is the draw
9    amount, less any fees deducted or withheld at
10    disbursement, plus the finance charge. The total repayment
11    amount shall assume a draw amount equal to the maximum
12    amount of credit available to the recipient if drawn and
13    held for the duration of the term or draw period.
14        (5) The term of the plan, if applicable, or the period
15    over which a draw is amortized.
16        (6) The payment frequency and amounts, based on the
17    assumptions used in the calculation of the annual
18    percentage rate, including a description of payment amount
19    requirements such as a minimum payment amount, and if the
20    payment frequency is other than monthly, the amount of the
21    average projected payments per month. For payment amounts
22    that are variable, the provider should include a payment
23    schedule or a description of the method used to calculate
24    the amounts and frequency of payments and the estimated
25    average monthly payment amount.
26        (7) A description of all other potential fees and

 

 

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1    charges that can be avoided by the recipient, including,
2    but not limited to, draw fees, late payment fees, and
3    returned payment fees.
4        (8) Were the recipient to elect to pay off or
5    refinance the commercial financing before full repayment,
6    the provider shall disclose:
7            (A) whether the recipient would be required to pay
8        any finance charges other than interest accrued since
9        their last payment; if so, disclosure of the
10        percentage of any unpaid portion of the finance charge
11        and maximum dollar amount the recipient could be
12        required to pay; and
13            (B) whether the recipient would be required to pay
14        any additional fees not already included in the
15        finance charge.
16        (9) A description of collateral requirements or
17    security interests, if any.
 
18    Section 79. Factoring transaction disclosure requirements.
19A provider subject to this Act shall provide the following
20disclosures to a recipient, in a manner prescribed by the
21Secretary, if any, at the time of extending a specific offer
22for a factoring transaction:
23        (1) The amount of the receivables purchase price paid
24    to the recipient, and, if different from the purchase
25    price, the disbursement amount after any amount deducted

 

 

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1    or withheld at disbursement.
2        (2) The finance charge.
3        (3) The estimated annual percentage rate, using that
4    term. To calculate the estimated annual percentage rate,
5    the purchase amount is considered the financing amount,
6    the purchase amount minus the finance charge is considered
7    the payment amount, and the term is established by the
8    payment due date of the receivables. As an alternate
9    method of establishing the term, the provider may estimate
10    the term for a factoring transaction as the average
11    payment period based on its historical data over a period
12    not to exceed the previous 12 months, concerning payment
13    invoices paid by the party or parties owing the accounts
14    receivable in question.
15        (4) The total payment amount, which is the purchase
16    amount plus the finance charge.
17        (5) A description of all other potential fees and
18    charges that can be avoided by the recipient.
19        (6) A description of the receivables purchased and any
20    additional collateral requirements or security interests.
 
21    Section 80. Other forms of financing disclosure
22requirements. The Secretary may require disclosure by a
23provider extending a specific offer of commercial financing
24which is not an open-end financing, closed-end financing,
25sales-based financing, or factoring transaction but otherwise

 

 

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1meets the definition of commercial financing. Subject to rules
2adopted by the Secretary, a provider subject to this Act shall
3provide the following disclosures to a recipient, in a manner
4prescribed by the Secretary, if any, at the time of extending a
5specific offer of other forms of financing:
6        (1) The total amount of the commercial financing, and,
7    if different from the financing amount, the disbursement
8    amount after any fees deducted or withheld at
9    disbursement.
10        (2) The finance charge.
11        (3) The annual percentage rate, using only the words
12    annual percentage rate or the abbreviation "APR",
13    expressed as a yearly rate, inclusive of any fees and
14    finance charges.
15        (4) The total repayment amount which is the
16    disbursement amount plus the finance charge.
17        (5) The term of the financing.
18        (6) The payment amounts:
19            (A) for payment amounts that are fixed, the
20        payment amounts and frequency, such as daily, weekly,
21        monthly, and the average monthly payment amount; or
22            (B) for payment amounts that are variable, a
23        payment schedule or a description of the method used
24        to calculate the amounts and frequency of payments,
25        and the estimated average monthly payment amount.
26        (7) A description of all other potential fees and

 

 

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1    charges that can be avoided by the recipient, including,
2    but not limited to, late payment fees and returned payment
3    fees.
4        (8) If the recipient elects to pay off or refinance
5    the commercial financing before full repayment, the
6    provider shall disclose:
7            (A) whether the recipient would be required to pay
8        any finance charges other than interest accrued since
9        their last payment; if so, disclosure of the
10        percentage of any unpaid portion of the finance charge
11        and maximum dollar amount the recipient could be
12        required to pay; and
13            (B) whether the recipient would be required to pay
14        any additional fees not already included in the
15        finance charge.
16        (9) A description of collateral requirements or
17    security interests, if any.
 
18    Section 81. Disclosure requirements for renewal financing.
19If, as a condition of obtaining the commercial financing, the
20provider requires the recipient to pay off the balance of an
21existing commercial financing from the same provider, the
22provider shall disclose:
23        (1) The amount of the new commercial financing that is
24    used to pay off the portion of the existing commercial
25    financing that consists of prepayment charges required to

 

 

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1    be paid and any unpaid interest expense that was not
2    forgiven at the time of renewal. For financing for which
3    the total repayment amount is calculated as a fixed
4    amount, the prepayment charge is equal to the original
5    finance charge multiplied by the amount of the renewal
6    used to pay off existing financing as a percentage of the
7    total repayment amount, minus any portion of the total
8    repayment amount forgiven by the provider at the time of
9    prepayment. If the amount is more than zero, the amount
10    shall be the answer to the following question: "Does the
11    renewal financing include any amount that is used to pay
12    unpaid finance charges or fees, also known as double
13    dipping? Yes, {enter amount}. If the amount is zero, the
14    answer would be no."
15        (2) If the disbursement amount will be reduced to pay
16    down any unpaid portion of the outstanding balance, the
17    actual dollar amount by which the disbursement amount will
18    be reduced.
 
19    Section 82. Additional information. Nothing in this Act
20shall prevent a provider from providing or disclosing
21additional information on a commercial financing being offered
22to a recipient, provided however, that the additional
23information shall not be disclosed as part of the disclosure
24required by this Act. If other metrics of financing cost are
25disclosed or used in the application process of a commercial

 

 

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1financing, these metrics shall not be presented as a "rate" if
2they are not the annual interest rate or the annual percentage
3rate. The term "interest", when used to describe a percentage
4rate, shall only be used to describe annualized percentage
5rates, such as the annual interest rate. When a provider
6states a rate of finance charge or a financing amount to a
7recipient during an application process for commercial
8financing, the provider shall also state the rate as an
9"annual percentage rate", using that term or the abbreviation
10"APR".
 
11    Section 83. Violation of disclosure requirements. If the
12Secretary finds that a provider who is required to obtain a
13license according to this Act has violated any disclosure
14requirements outlined in Sections 76 through 82, that shall be
15considered a violation of this Act separate from any other
16violation that may result from operating without a license as
17outlined in Section 20.
 
18    Section 84. Suspension; revocation of licenses; civil
19penalties and other discipline.
20    (a) The Secretary may enter an order imposing one or more
21of the following penalties:
22        (1) revocation of license;
23        (2) suspension of a license subject to reinstatement
24    upon satisfying all reasonable conditions the Secretary

 

 

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1    may specify;
2        (3) placement of the licensee or applicant on
3    probation for a period of time and subject to all
4    reasonable conditions as the Secretary may specify;
5        (4) issuance of a reprimand;
6        (5) imposition of civil monetary penalties as follows:
7            (A) a civil penalty not to exceed $10,000 for each
8        separate offense, but civil penalties may not to
9        exceed $50,000 for all violations arising from the use
10        of the same transaction documents or materials,
11        including for financing offers that are not
12        consummated; and
13            (B) if a person violates this Act after receiving
14        written notice of a prior violation, a civil penalty
15        may be imposed not to exceed $10,000 for each count of
16        separate offense, but the civil penalties are not to
17        exceed $100,000 for all violations arising from the
18        use of the same transaction documents or materials,
19        including for financing offers that are not
20        consummated;
21        (6) restitution, refunds, or any other relief
22    necessary to protect consumers; and
23        (7) denial of a license.
24    (b) Grounds for penalties include:
25        (1) if a person has violated or aided another to
26    violate, any provisions of this Act, any rule adopted by

 

 

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1    the Secretary, or any other law, rule, or regulation of
2    this State, any other state, or the United States;
3        (2) if a fact or condition exists that, if it had
4    existed at the time of the original application for the
5    license, would have warranted the Secretary in refusing
6    issue the original license;
7        (3) that a licensee that is not an individual has
8    acted or failed to act in a way that would be cause for
9    suspending or revoking a license to an individual;
10        (4) that a person engaged in unsafe, unsound, unfair,
11    deceptive, or abusive business practices related to the
12    activity covered by this Act;
13        (5) that a person has been adjudicated guilty of a
14    crime against the law of this State, any other state, or of
15    the United States involving moral turpitude, abusive,
16    deceptive, fraudulent, or dishonest dealing;
17        (6) that a final judgment has been entered against a
18    person in a civil action upon grounds of abusive conduct,
19    conversion, fraud, misrepresentation, or deceit;
20        (7) that a person made a material misstatement in its
21    application for licensure or any other communication to
22    the Secretary;
23        (8) that a person has demonstrated, by course of
24    conduct, negligence or incompetence in performing any act
25    for which it is required to hold a license under this Act;
26        (9) that a person has failed to advise the Secretary

 

 

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1    in writing of any changes to the information submitted on
2    their most recent application for license within 30 days
3    after the change;
4        (10) that a licensee failed to submit to periodic
5    examination by the Secretary as required by this Act or
6    failed to maintain, preserve, and keep available for
7    examination all books, accounts, or other documents
8    required by the provisions of this Act and rules of the
9    Secretary;
10        (11) that a person failed to account or deliver to any
11    person any property, such as any money, fund, deposit,
12    check, draft, or other document or thing of value, that
13    has come into its hands and that is not its property or
14    that it is not in law or equity entitled to retain, under
15    the circumstances and at the time which has been agreed
16    upon or is required by law or, in the absence of a fixed
17    time, upon demand of the person for the accounting and
18    delivery;
19        (12) that a person failed to disburse funds in
20    accordance with agreements or law;
21        (13) that a person had a license, or the equivalent,
22    to practice any profession, occupation, other industry or
23    activity requiring licensure revoked, suspended,
24    disciplined, or otherwise acted against, including the
25    denial of licensure by a licensing authority of this State
26    or another state, territory, or country for fraud,

 

 

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1    dishonest dealing, misrepresentations, incompetence,
2    conversion, any act of moral turpitude or any other
3    grounds that would constitute grounds for discipline under
4    this Act;
5        (14) that a person licensed under this Act failed to
6    timely notify the Department that the person has been
7    disciplined, including denial of licensure, by a licensing
8    authority of this State or another state. Timely
9    notification shall be notification to the Department
10    within 10 days after entry of discipline;
11        (15) that a person engaged in activities regulated by
12    this Act without a current, active license unless
13    specifically exempted by this Act;
14        (16) that a person failed to timely pay any fee,
15    charge, or civil penalty assessed under this Act; and
16        (17) that a person refused, obstructed, evaded, or
17    unreasonably delayed an investigation, information
18    request, or examination authorized under this Act, or
19    refused, obstructed, evaded, or unreasonably delayed
20    compliance with the Secretary's subpoena or subpoena duces
21    tecum.
22    (c) No license shall be suspended or revoked, except as
23provided in this Section, nor shall any licensee be assessed a
24civil penalty without notice of his or her right to a hearing.
25    (d) The Secretary may suspend any license for a period not
26exceeding 180 days pending investigation for good cause shown

 

 

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1that an emergency exists.
2    (e) No revocation, suspension, or surrender of any license
3shall impair or affect the obligation of any preexisting
4lawful contract between the licensee and any person. The
5Secretary's approval of a licensee's application to surrender
6its license shall not affect the licensee's civil or criminal
7liability for acts committed prior to surrender. Surrender of
8a license does not entitle the licensee to a return of any part
9of the license fee.
10    (f) Every license issued under this Act shall remain in
11force and effect until the license expires, is surrendered, is
12revoked, or is suspended in accordance with the provisions of
13this Act. The Secretary shall have authority to reinstate a
14suspended license or to issue a new license to a licensee whose
15license has been revoked or surrendered if no fact or
16condition then exists which would have warranted the Secretary
17in refusing originally to issue that license under this Act.
18    (g) Whenever the Secretary imposes discipline authorized
19by this Section, the Secretary shall execute a written order
20to that effect. The Secretary shall serve a copy of the order
21upon the person. The Secretary shall serve the person with
22notice of the order, including a statement of the reasons for
23the order personally or by certified mail. Service by
24certified mail shall be deemed completed when the notice is
25deposited in the U.S. Mail.
26    (h) An order assessing a civil penalty, an order revoking

 

 

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1or suspending a license, or an order denying renewal of a
2license shall take effect upon service of the order unless the
3licensee serves the Department with a written request for a
4hearing in the manner required by the order within 10 days
5after the date of service of the order. If a person requests a
6hearing, the order shall be stayed from its date of service
7until the Department enters a final administrative order.
8Hearings shall be conducted as follows:
9        (1) If the licensee requests a hearing, then the
10    Secretary shall schedule a hearing within 90 days after
11    the request for a hearing unless otherwise agreed to by
12    the parties.
13        (2) The hearing shall be held at the time and place
14    designated by the Secretary. The Secretary and any
15    administrative law judge designated by the Secretary shall
16    have the power to administer oaths and affirmations,
17    subpoena witnesses and compel their attendance, take
18    evidence, and require the production of books, papers,
19    correspondence, and other records or information that they
20    consider relevant or material to the inquiry.
21    (i) The costs of administrative hearings conducted under
22this Section shall be paid by the licensee or other person
23subject to the hearing.
24    (j) A licensee and other persons subject to this Act shall
25be subject to the disciplinary actions specified in this Act
26for any violations conducted by any officer, director,

 

 

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1shareholder, joint venture, partner, owner, including, but not
2limited to, ultimate equitable owner.
 
3    Section 85. Investigation of complaints. The Secretary may
4investigate any complaints and inquiries made concerning this
5Act and any licensees or persons the Secretary believes may
6require a license under this Act. Each licensee or person the
7Secretary believes may require a license under this Act shall
8open the licensee's or person's books, records, documents, and
9offices wherever situated to the Secretary as needed to
10facilitate the investigations.
 
11    Section 90. Additional investigation and examination
12authority. In addition to any authority allowed under this
13Act, the Secretary may conduct investigations and examinations
14as follows:
15        (1) For purposes of initial licensing, license
16    renewal, license suspension, license conditioning, license
17    probation, license revocation or termination, or general
18    or specific inquiry or investigation to determine
19    compliance with this Act, the Secretary may access,
20    receive, and use any books, accounts, records, files,
21    documents, information, or evidence, including, but not
22    limited to, the following:
23            (A) criminal, civil, licensure, and administrative
24        history information, including nonconviction data as

 

 

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1        specified in the Criminal Code of 2012; (B) personal
2        history and experience information, including
3        independent credit reports obtained from a consumer
4        reporting agency described in Section 603(p) of the
5        federal Fair Credit Reporting Act; and (C) any other
6        documents, information, or evidence the Secretary
7        deems relevant to the inquiry or investigation,
8        regardless of the location, possession, control, or
9        custody of the documents, information, or evidence.
10        (2) For the purposes of investigating violations or
11    complaints arising under this Act or for the purposes of
12    examination, the Secretary may review, investigate, or
13    examine any licensee, individual, or person subject to
14    this Act as often as necessary in order to carry out the
15    purposes of this Act. The Secretary may direct, subpoena,
16    or order the attendance of, and examine under oath all
17    persons and order any person to produce records, files,
18    and any other documents the Secretary deems relevant to an
19    inquiry.
20        (3) Each person subject to this Act shall make
21    available to the Secretary upon request the books and
22    records relating to the operations of the person subject
23    to this Act. The Secretary shall have access to those
24    books and records and may interview the owners, officers,
25    principals, employees, independent contractors, agents,
26    vendors, and customers of any licensee or person subject

 

 

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1    to this Act.
2        (4) Each person subject to this Act shall make or
3    compile reports or prepare other information as directed
4    by the Secretary to carry out the purposes of this
5    Section, including, but not limited to:
6            (A) accounting compilations;
7            (B) information lists and data concerning
8        transactions in a format prescribed by the Secretary;
9        or
10            (C) other information deemed necessary to carry
11        out the purposes of this Section.
12        (5) In making any examination or investigation
13    authorized by this Act, the Secretary may control access
14    to any documents and records of the licensee or person
15    under examination or investigation. The Secretary may take
16    possession of the documents and records or otherwise take
17    constructive control of the documents. During the period
18    of control, no person shall remove or alter any of the
19    documents or records, except pursuant to a court order or
20    with the consent of the Secretary. Unless the Secretary
21    has reasonable grounds to believe the documents or records
22    of the licensee have been or are at risk of being altered
23    or destroyed for purposes of concealing a violation of
24    this Act, the licensee or owner of the documents and
25    records shall have access to the documents or records as
26    necessary to conduct its ordinary business affairs.

 

 

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1        (6) In order to carry out the purposes of this
2    Section, the Secretary may:
3            (A) retain attorneys, accountants, or other
4        professionals and specialists as examiners, auditors,
5        or investigators to conduct or assist in the conduct
6        of examinations or investigations;
7            (B) enter into agreements or relationships with
8        other government officials or regulatory associations
9        to protect consumers, improve efficiencies, and reduce
10        regulatory burden by sharing resources, standardized
11        or uniform methods or procedures, and documents,
12        records, information, or evidence obtained under this
13        Section;
14            (C) use, hire, contract, or employ publicly or
15        privately available analytical systems, methods, or
16        software to examine or investigate the licensee,
17        individual, or person subject to this Act;
18            (D) accept and rely on examination or
19        investigation reports made by other government
20        officials, within or outside this State; or
21            (E) accept audit reports made by an independent
22        certified public accountant for the person subject to
23        this Act and may incorporate the audit report in the
24        report of the examination, report of investigation, or
25        other writing of the Secretary.
26        (7) The authority of this Section shall remain in

 

 

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1    effect, whether the person subject to this Act acts or
2    claims to act under any licensing or registration law of
3    this State or claims to act without the authority.
4        (8) No licensee or person subject to investigation or
5    examination under this Section may knowingly withhold,
6    alter, abstract, remove, mutilate, destroy, hide, or
7    conceal any books, records, computer records, or other
8    information or take actions designed to delay or
9    complicate review of records.
 
10    Section 95. Confidentiality. To promote more effective
11regulation, protect consumers, and reduce regulatory burden
12through inter-regulatory sharing of confidential supervisory
13information:
14        (1) The privacy or confidentiality of any information
15    or material provided to a multistate licensing system,
16    including all privileges arising under federal or state
17    court rules and law, shall continue to apply to the
18    information or material after the information or material
19    has been disclosed to the multistate licensing system.
20    Information and material may be shared with a multistate
21    licensing system, federal and state regulatory officials
22    with relevant oversight authority, and law enforcement
23    without the loss of privilege or the loss of
24    confidentiality protections.
25        (2) The Secretary is authorized to enter into

 

 

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1    agreements or sharing arrangements with other governmental
2    agencies, the Conference of State Bank Supervisors, and
3    other associations representing governmental agencies.
4        (3) Information or material that is privileged or
5    confidential under this Act as determined by the Secretary
6    is not subject to the following:
7            (A) disclosure under any State law governing the
8        disclosure to the public of information held by an
9        officer or an agency of the State; or
10            (B) subpoena, discovery, or admission into
11        evidence, in any private civil action or
12        administrative process except as authorized by the
13        Secretary.
14        (4) Any other law relating to the disclosure of
15    confidential supervisory information that is inconsistent
16    with this Act shall be superseded by the requirements of
17    this Section to the extent the other law provides less
18    confidentiality or a weaker privilege for information that
19    is privileged or confidential under this Act.
20        (5) Confidential or privileged information received
21    from a multistate licensing system, another licensing
22    body, federal and state regulatory officials, or law
23    enforcement shall be protected to the same extent as the
24    Secretary's confidential and privileged information is
25    protected under this Act. The Secretary may also protect
26    from disclosure confidential or privileged information

 

 

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1    that would be exempt from disclosure to the extent it is
2    held directly by the multistate licensing system, another
3    licensing body, federal and state regulatory officials, or
4    law enforcement.
 
5    Section 100. Appeal and review.
6    (a) The Secretary may, in accordance with the Illinois
7Administrative Procedure Act, adopt rules to provide for
8review within the Department of their decisions affecting the
9rights of persons under this Act. The review shall provide
10for, at a minimum:
11        (1) appointment of a hearing officer;
12        (2) appropriate procedural rules, specific deadlines
13    for filings, and standards of evidence and of proof; and
14        (3) provisions for apportioning costs among parties to
15    the appeal.
16    (b) All final agency determinations of appeals to
17decisions of the Secretary may be reviewed in accordance with
18and under the provisions of the Administrative Review Law.
19Appeals from all final orders and judgments entered by a court
20in review of any final administrative decision of the
21Secretary or of any final agency review of a decision of the
22Secretary may be taken as in other civil cases.
 
23    Section 105. Licensure fees.
24    (a) The fee for initial licensure is $2,500. The fee is

 

 

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1nonrefundable.
2    (b) The fee for annual application renewal is $2,500. The
3fee is nonrefundable.
4    (c) The Department shall impose a contingent fee
5sufficient to cover its operating expenses in administering
6this Act not otherwise covered by all other revenue collected
7under this Act. Each licensee shall pay to the Division its pro
8rata share, based on number or volume of transactions or
9revenue, of the cost for administration of this Act that
10exceeds other fees listed in this Section, as estimated by the
11Division, for the current year and any deficit actually
12incurred in the administration of this Act in prior years.
 
13    Section 110. Cease and desist order.
14    (a) The Secretary may issue a cease and desist order to any
15licensee or person doing business without the required
16license, when in the opinion of the Secretary the licensee or
17other person has violated, is violating, or is about to
18violate any provision of this Act or any rule adopted by the
19Department under this Act or any requirement imposed in
20writing by the Department as a condition of granting any
21authorization permitted by this Act. The cease and desist
22order authorized by this Section may be issued prior to a
23hearing.
24    (b) The Secretary shall serve notice of the cease and
25desist order, either personally or by certified mail. Service

 

 

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1by certified mail shall be deemed completed when the notice is
2deposited in the U.S. Mail. The Secretary's notice shall
3include a statement of the reasons for the action.
4    (c) Within 10 days after service of the cease and desist
5order, the person subject to the cease and desist order may
6request a hearing in writing. The Secretary shall schedule a
7preliminary hearing within 60 days after the request for a
8hearing unless the parties agree to a later date.
9    (d) If it is determined that the Secretary had the
10authority to issue the cease and desist order, the Secretary
11may issue the orders as may be reasonably necessary to
12correct, eliminate, deter, or remedy the conduct described in
13the order and resulting harms.
14    (e) The powers vested in the Secretary by this Section are
15additional to all other powers and remedies vested in the
16Secretary by any law. Nothing in this Section shall be
17construed as requiring that the Secretary shall employ the
18power conferred in this Section instead of or as a condition
19precedent to the exercise of any other power or remedy vested
20in the Secretary.
 
21    Section 115. Injunctions. The Secretary may maintain an
22action in the name of the people of the State of Illinois and
23may apply for an injunction in the circuit court to enjoin a
24person from violating this Act or its implementing rules
25through the Attorney General.
 

 

 

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1    Section 120. Exemptions. This Act does not apply to, and
2does not place any additional requirements or obligations
3upon, any of the following:
4        (1) any person or entity is not a provider;
5        (2) a commercial financing transaction secured by real
6    property;
7        (3) a lease as defined in Section 2-A-103 of the
8    Uniform Commercial Code, not including finance leases as
9    defined in paragraph (g) of subsection (1) of Section
10    2A-103 of the Uniform Commercial Code; or
11        (4) any person or Provider who makes no more than 5
12    commercial financing transactions in this State in a
13    12-month period;
14        (5) a single, discrete commercial financing
15    transaction in an amount over $2,500,000; or
16        (6) a commercial financing transaction in which the
17    recipient is a vehicle dealer subject to Section 5-101 or
18    5-102 of the Illinois Vehicle Code, an affiliate of a
19    dealer, a rental vehicle company as defined in Section 10
20    of the Renter's Financial Responsibility and Protection
21    Act, or an affiliate of a company under a commercial
22    financing agreement or commercial open-end credit plan of
23    at least $50,000, including any commercial loan made under
24    a commercial financing transaction.
 

 

 

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1    Section 125. Complaint disclosure. All commercial
2financing shall include a clear and conspicuous notice on how
3to file a complaint with the Department.
 
4    Section 130. Rules. The Secretary may adopt rules to enact
5and enforce this Act, including, but not limited to:
6        (1) rules defining the terms used in this Act and as
7    may be necessary and appropriate to interpret and
8    implement the provisions of this Act;
9        (2) rules for the enforcement and administration of
10    this Act;
11        (3) rules for the protection of consumers and
12    recipients in this State;
13        (4) rules defining improper or fraudulent business
14    practices in connection with commercial financing;
15        (5) rules charging and collecting fees necessary to
16    cover the costs of administering this Act, including, but
17    not limited to registration, investigation, and
18    examination fees; and
19        (6) rules to implement Section 155.
 
20    Section 135. Violations.
21    (a) Nothing in this Act shall be construed to restrict the
22exercise of powers or the performance of the duties that the
23Attorney General is authorized to exercise or perform by law.
24    (b) Any violation of this Act constitutes an unlawful

 

 

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1practice in violation of the Consumer Fraud and Deceptive
2Business Practices Act. The Attorney General may enforce a
3violation of this Act as an unlawful practice under the
4Consumer Fraud and Deceptive Business Practices Act.
 
5    Section 140. Beginning of licensure. No person shall be
6required to apply for or obtain a license under this Act before
7the date established by the Department by rule. The date shall
8not be before January 1, 2025.
 
9    Section 145. Beginning of disclosure requirements. No
10person shall be required to comply with the disclosure
11requirements set forth in Section 155 before the date
12established by the Department by rule. The date shall not be
13before January 1, 2025.
 
14    Section 155. Commercial financing database.
15    (a) A commercial financing database program is established
16within the Department. The program shall be administered in
17accordance with this Section. None of the duties, obligations,
18contingencies, or consequences of or from the program shall be
19imposed until 6 months after the Department certifies a
20commercial financing database under subsection (b). The
21program shall apply to all commercial financings that are
22governed by this Act and that are made or taken on or after the
23inception of the program.

 

 

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1    (b) The Department shall certify that a commercial
2financing database is a commercially reasonable method of
3reporting. Upon certifying that a commercial financing
4database is a commercially reasonable method of reporting, the
5Department shall:
6        (1) provide reasonable notice to all licensees
7    identifying the commercially reasonable method of
8    reporting that is available; and
9        (2) immediately upon certification, require each
10    licensee to use a commercially reasonable method of
11    reporting as a means of complying with subsection (d) of
12    this Section.
13    (c) The database created under this program shall be
14maintained and administered by the Department. The database
15shall be designed to allow providers to submit information to
16the database online. The database shall not be designed to
17allow providers to retrieve information from the database,
18except as otherwise provided in this Act.
19    (d) Within 30 days after providing funds to a recipient,
20the provider shall submit to the commercial financing database
21the information delineated in this subsection, if applicable
22to the financing. If at the time funds are provided to a
23recipient, certain information delineated in this subsection
24is not known, the provider shall submit the information to the
25commercial financing database within 30 days after the
26information becoming ascertainable:

 

 

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1        (1) FEIN for the recipient;
2        (2) zip code of the recipient;
3        (3) origination date of the commercial financing;
4        (4) description of collateral, if any, securing
5    commercial financing;
6        (5) term, if any, of the commercial financing at the
7    time of origination;
8        (6) in the case of commercial financing without a
9    specific term at the time of origination, the actual term
10    of the commercial financing when known;
11        (7) financing amount, if applicable;
12        (8) maximum amount of credit made available to
13    recipient, if applicable;
14        (9) the amount of the receivables purchase price paid
15    to the recipient and, if different from the purchase
16    price, the amount disbursed to the recipient after any
17    amount deducted or withheld at disbursement, if
18    applicable;
19        (10) the amount scheduled to be drawn by the recipient
20    at the time the offer is extended, if applicable;
21        (11) all fees charged to the recipient at or before
22    the origination date of the commercial financing;
23        (12) all fees, charges, and interest scheduled to be
24    charged over the term of the commercial financing, if
25    applicable;
26        (13) all fees, charges, and interest scheduled to be

 

 

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1    charged during any month in which the recipient has a
2    balance on an open-end commercial financing, if
3    applicable; and
4        (14) the APR or Estimated APR, if required by the
5    Department; and
6        (15) all other information requested by the
7    Department.
8    (e) All personally identifiable information and
9information identifying the identity of a recipient obtained
10by way of the commercial financing database is strictly
11confidential and shall be exempt from disclosure under the
12Freedom of Information Act and any other law or regulation
13pertaining to the disclosure of information or documents. The
14Department may, by rule, identify any additional categories of
15information the disclosure of which would be contrary to the
16public interest. Any request for production of information
17from the commercial financing database, whether by subpoena,
18notice, or any other source, shall be referred to the
19Department. Any recipient may authorize in writing the release
20of database information. The Department may use the
21information in the database without the consent of the
22recipient or the licensee:
23        (1) for the purposes of administering and enforcing
24    the program;
25        (2) to prepare industry-level reports;
26        (3) to provide information to the appropriate law

 

 

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1    enforcement agency or the applicable administrative or
2    regulatory agency with a legitimate interest in the
3    information as determined by the Secretary;
4        (4) as required to comply with applicable law; or
5        (5) in any other manner that the Secretary deems is
6    not contrary to the public interest.
7    (f) A licensee who submits information to a certified
8database provider in accordance with this Section shall not be
9liable to any person for any subsequent release or disclosure
10of that information by the certified database provider, the
11Department, or any other person acquiring possession of the
12information, regardless of whether the subsequent release or
13disclosure was lawful, authorized, or intentional.
14    (g) In certifying a commercially reasonable method of
15reporting, the Department shall ensure that the commercial
16financing database:
17        (1) provides real-time access through an Internet
18    connection;
19        (2) is accessible to the Department and to licensees
20    in order to ensure compliance with this Act and in order to
21    provide any other information that the Department deems
22    necessary;
23        (3) requires licensees to input whatever information
24    is required by the Department;
25        (4) maintains a real-time copy of the required
26    reporting information that is available to the Department

 

 

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1    at all times and is the property of the Department; and
2        (5) contains safeguards to ensure that all information
3    contained in the database regarding consumers is kept
4    strictly confidential.
5    (h) The certified commercial financing database may charge
6a fee to a licensee not to exceed $1 for each financing entered
7into the database. The certified commercial financing database
8shall not charge any additional fees or charges.
9    (i) The certified commercial financing database provider
10shall produce an annual report for the Department using the
11data submitted by licensees to the database. The Department
12may publish this report to the public.
 
13    Section 160. Severability. The provisions of this Act are
14severable under Section 1.31 of the Statute on Statutes.
 
15    Section 900. The Freedom of Information Act is amended by
16changing Section 7.5 as follows:
 
17    (5 ILCS 140/7.5)
18    (Text of Section before amendment by P.A. 103-472)
19    Sec. 7.5. Statutory exemptions. To the extent provided for
20by the statutes referenced below, the following shall be
21exempt from inspection and copying:
22        (a) All information determined to be confidential
23    under Section 4002 of the Technology Advancement and

 

 

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1    Development Act.
2        (b) Library circulation and order records identifying
3    library users with specific materials under the Library
4    Records Confidentiality Act.
5        (c) Applications, related documents, and medical
6    records received by the Experimental Organ Transplantation
7    Procedures Board and any and all documents or other
8    records prepared by the Experimental Organ Transplantation
9    Procedures Board or its staff relating to applications it
10    has received.
11        (d) Information and records held by the Department of
12    Public Health and its authorized representatives relating
13    to known or suspected cases of sexually transmissible
14    disease or any information the disclosure of which is
15    restricted under the Illinois Sexually Transmissible
16    Disease Control Act.
17        (e) Information the disclosure of which is exempted
18    under Section 30 of the Radon Industry Licensing Act.
19        (f) Firm performance evaluations under Section 55 of
20    the Architectural, Engineering, and Land Surveying
21    Qualifications Based Selection Act.
22        (g) Information the disclosure of which is restricted
23    and exempted under Section 50 of the Illinois Prepaid
24    Tuition Act.
25        (h) Information the disclosure of which is exempted
26    under the State Officials and Employees Ethics Act, and

 

 

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1    records of any lawfully created State or local inspector
2    general's office that would be exempt if created or
3    obtained by an Executive Inspector General's office under
4    that Act.
5        (i) Information contained in a local emergency energy
6    plan submitted to a municipality in accordance with a
7    local emergency energy plan ordinance that is adopted
8    under Section 11-21.5-5 of the Illinois Municipal Code.
9        (j) Information and data concerning the distribution
10    of surcharge moneys collected and remitted by carriers
11    under the Emergency Telephone System Act.
12        (k) Law enforcement officer identification information
13    or driver identification information compiled by a law
14    enforcement agency or the Department of Transportation
15    under Section 11-212 of the Illinois Vehicle Code.
16        (l) Records and information provided to a residential
17    health care facility resident sexual assault and death
18    review team or the Executive Council under the Abuse
19    Prevention Review Team Act.
20        (m) Information provided to the predatory lending
21    database created pursuant to Article 3 of the Residential
22    Real Property Disclosure Act, except to the extent
23    authorized under that Article.
24        (n) Defense budgets and petitions for certification of
25    compensation and expenses for court appointed trial
26    counsel as provided under Sections 10 and 15 of the

 

 

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1    Capital Crimes Litigation Act (repealed). This subsection
2    (n) shall apply until the conclusion of the trial of the
3    case, even if the prosecution chooses not to pursue the
4    death penalty prior to trial or sentencing.
5        (o) Information that is prohibited from being
6    disclosed under Section 4 of the Illinois Health and
7    Hazardous Substances Registry Act.
8        (p) Security portions of system safety program plans,
9    investigation reports, surveys, schedules, lists, data, or
10    information compiled, collected, or prepared by or for the
11    Department of Transportation under Sections 2705-300 and
12    2705-616 of the Department of Transportation Law of the
13    Civil Administrative Code of Illinois, the Regional
14    Transportation Authority under Section 2.11 of the
15    Regional Transportation Authority Act, or the St. Clair
16    County Transit District under the Bi-State Transit Safety
17    Act (repealed).
18        (q) Information prohibited from being disclosed by the
19    Personnel Record Review Act.
20        (r) Information prohibited from being disclosed by the
21    Illinois School Student Records Act.
22        (s) Information the disclosure of which is restricted
23    under Section 5-108 of the Public Utilities Act.
24        (t) (Blank).
25        (u) Records and information provided to an independent
26    team of experts under the Developmental Disability and

 

 

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1    Mental Health Safety Act (also known as Brian's Law).
2        (v) Names and information of people who have applied
3    for or received Firearm Owner's Identification Cards under
4    the Firearm Owners Identification Card Act or applied for
5    or received a concealed carry license under the Firearm
6    Concealed Carry Act, unless otherwise authorized by the
7    Firearm Concealed Carry Act; and databases under the
8    Firearm Concealed Carry Act, records of the Concealed
9    Carry Licensing Review Board under the Firearm Concealed
10    Carry Act, and law enforcement agency objections under the
11    Firearm Concealed Carry Act.
12        (v-5) Records of the Firearm Owner's Identification
13    Card Review Board that are exempted from disclosure under
14    Section 10 of the Firearm Owners Identification Card Act.
15        (w) Personally identifiable information which is
16    exempted from disclosure under subsection (g) of Section
17    19.1 of the Toll Highway Act.
18        (x) Information which is exempted from disclosure
19    under Section 5-1014.3 of the Counties Code or Section
20    8-11-21 of the Illinois Municipal Code.
21        (y) Confidential information under the Adult
22    Protective Services Act and its predecessor enabling
23    statute, the Elder Abuse and Neglect Act, including
24    information about the identity and administrative finding
25    against any caregiver of a verified and substantiated
26    decision of abuse, neglect, or financial exploitation of

 

 

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1    an eligible adult maintained in the Registry established
2    under Section 7.5 of the Adult Protective Services Act.
3        (z) Records and information provided to a fatality
4    review team or the Illinois Fatality Review Team Advisory
5    Council under Section 15 of the Adult Protective Services
6    Act.
7        (aa) Information which is exempted from disclosure
8    under Section 2.37 of the Wildlife Code.
9        (bb) Information which is or was prohibited from
10    disclosure by the Juvenile Court Act of 1987.
11        (cc) Recordings made under the Law Enforcement
12    Officer-Worn Body Camera Act, except to the extent
13    authorized under that Act.
14        (dd) Information that is prohibited from being
15    disclosed under Section 45 of the Condominium and Common
16    Interest Community Ombudsperson Act.
17        (ee) Information that is exempted from disclosure
18    under Section 30.1 of the Pharmacy Practice Act.
19        (ff) Information that is exempted from disclosure
20    under the Revised Uniform Unclaimed Property Act.
21        (gg) Information that is prohibited from being
22    disclosed under Section 7-603.5 of the Illinois Vehicle
23    Code.
24        (hh) Records that are exempt from disclosure under
25    Section 1A-16.7 of the Election Code.
26        (ii) Information which is exempted from disclosure

 

 

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1    under Section 2505-800 of the Department of Revenue Law of
2    the Civil Administrative Code of Illinois.
3        (jj) Information and reports that are required to be
4    submitted to the Department of Labor by registering day
5    and temporary labor service agencies but are exempt from
6    disclosure under subsection (a-1) of Section 45 of the Day
7    and Temporary Labor Services Act.
8        (kk) Information prohibited from disclosure under the
9    Seizure and Forfeiture Reporting Act.
10        (ll) Information the disclosure of which is restricted
11    and exempted under Section 5-30.8 of the Illinois Public
12    Aid Code.
13        (mm) Records that are exempt from disclosure under
14    Section 4.2 of the Crime Victims Compensation Act.
15        (nn) Information that is exempt from disclosure under
16    Section 70 of the Higher Education Student Assistance Act.
17        (oo) Communications, notes, records, and reports
18    arising out of a peer support counseling session
19    prohibited from disclosure under the First Responders
20    Suicide Prevention Act.
21        (pp) Names and all identifying information relating to
22    an employee of an emergency services provider or law
23    enforcement agency under the First Responders Suicide
24    Prevention Act.
25        (qq) Information and records held by the Department of
26    Public Health and its authorized representatives collected

 

 

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1    under the Reproductive Health Act.
2        (rr) Information that is exempt from disclosure under
3    the Cannabis Regulation and Tax Act.
4        (ss) Data reported by an employer to the Department of
5    Human Rights pursuant to Section 2-108 of the Illinois
6    Human Rights Act.
7        (tt) Recordings made under the Children's Advocacy
8    Center Act, except to the extent authorized under that
9    Act.
10        (uu) Information that is exempt from disclosure under
11    Section 50 of the Sexual Assault Evidence Submission Act.
12        (vv) Information that is exempt from disclosure under
13    subsections (f) and (j) of Section 5-36 of the Illinois
14    Public Aid Code.
15        (ww) Information that is exempt from disclosure under
16    Section 16.8 of the State Treasurer Act.
17        (xx) Information that is exempt from disclosure or
18    information that shall not be made public under the
19    Illinois Insurance Code.
20        (yy) Information prohibited from being disclosed under
21    the Illinois Educational Labor Relations Act.
22        (zz) Information prohibited from being disclosed under
23    the Illinois Public Labor Relations Act.
24        (aaa) Information prohibited from being disclosed
25    under Section 1-167 of the Illinois Pension Code.
26        (bbb) Information that is prohibited from disclosure

 

 

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1    by the Illinois Police Training Act and the Illinois State
2    Police Act.
3        (ccc) Records exempt from disclosure under Section
4    2605-304 of the Illinois State Police Law of the Civil
5    Administrative Code of Illinois.
6        (ddd) Information prohibited from being disclosed
7    under Section 35 of the Address Confidentiality for
8    Victims of Domestic Violence, Sexual Assault, Human
9    Trafficking, or Stalking Act.
10        (eee) Information prohibited from being disclosed
11    under subsection (b) of Section 75 of the Domestic
12    Violence Fatality Review Act.
13        (fff) Images from cameras under the Expressway Camera
14    Act. This subsection (fff) is inoperative on and after
15    July 1, 2025.
16        (ggg) Information prohibited from disclosure under
17    paragraph (3) of subsection (a) of Section 14 of the Nurse
18    Agency Licensing Act.
19        (hhh) Information submitted to the Illinois State
20    Police in an affidavit or application for an assault
21    weapon endorsement, assault weapon attachment endorsement,
22    .50 caliber rifle endorsement, or .50 caliber cartridge
23    endorsement under the Firearm Owners Identification Card
24    Act.
25        (iii) Data exempt from disclosure under Section 50 of
26    the School Safety Drill Act.

 

 

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1        (jjj) (hhh) Information exempt from disclosure under
2    Section 30 of the Insurance Data Security Law.
3        (kkk) (iii) Confidential business information
4    prohibited from disclosure under Section 45 of the Paint
5    Stewardship Act.
6        (lll) (Reserved).
7        (mmm) (iii) Information prohibited from being
8    disclosed under subsection (e) of Section 1-129 of the
9    Illinois Power Agency Act.
10        (nnn) Information exempt from disclosure under Section
11    155 of the Consumer Protections for Small Business Act.
12(Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22;
13102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.
148-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;
15102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.
166-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,
17eff. 1-1-24; 103-508, eff. 8-4-23; 103-580, eff. 12-8-23;
18revised 1-2-24.)
 
19    (Text of Section after amendment by P.A. 103-472)
20    Sec. 7.5. Statutory exemptions. To the extent provided for
21by the statutes referenced below, the following shall be
22exempt from inspection and copying:
23        (a) All information determined to be confidential
24    under Section 4002 of the Technology Advancement and
25    Development Act.

 

 

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1        (b) Library circulation and order records identifying
2    library users with specific materials under the Library
3    Records Confidentiality Act.
4        (c) Applications, related documents, and medical
5    records received by the Experimental Organ Transplantation
6    Procedures Board and any and all documents or other
7    records prepared by the Experimental Organ Transplantation
8    Procedures Board or its staff relating to applications it
9    has received.
10        (d) Information and records held by the Department of
11    Public Health and its authorized representatives relating
12    to known or suspected cases of sexually transmissible
13    disease or any information the disclosure of which is
14    restricted under the Illinois Sexually Transmissible
15    Disease Control Act.
16        (e) Information the disclosure of which is exempted
17    under Section 30 of the Radon Industry Licensing Act.
18        (f) Firm performance evaluations under Section 55 of
19    the Architectural, Engineering, and Land Surveying
20    Qualifications Based Selection Act.
21        (g) Information the disclosure of which is restricted
22    and exempted under Section 50 of the Illinois Prepaid
23    Tuition Act.
24        (h) Information the disclosure of which is exempted
25    under the State Officials and Employees Ethics Act, and
26    records of any lawfully created State or local inspector

 

 

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1    general's office that would be exempt if created or
2    obtained by an Executive Inspector General's office under
3    that Act.
4        (i) Information contained in a local emergency energy
5    plan submitted to a municipality in accordance with a
6    local emergency energy plan ordinance that is adopted
7    under Section 11-21.5-5 of the Illinois Municipal Code.
8        (j) Information and data concerning the distribution
9    of surcharge moneys collected and remitted by carriers
10    under the Emergency Telephone System Act.
11        (k) Law enforcement officer identification information
12    or driver identification information compiled by a law
13    enforcement agency or the Department of Transportation
14    under Section 11-212 of the Illinois Vehicle Code.
15        (l) Records and information provided to a residential
16    health care facility resident sexual assault and death
17    review team or the Executive Council under the Abuse
18    Prevention Review Team Act.
19        (m) Information provided to the predatory lending
20    database created pursuant to Article 3 of the Residential
21    Real Property Disclosure Act, except to the extent
22    authorized under that Article.
23        (n) Defense budgets and petitions for certification of
24    compensation and expenses for court appointed trial
25    counsel as provided under Sections 10 and 15 of the
26    Capital Crimes Litigation Act (repealed). This subsection

 

 

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1    (n) shall apply until the conclusion of the trial of the
2    case, even if the prosecution chooses not to pursue the
3    death penalty prior to trial or sentencing.
4        (o) Information that is prohibited from being
5    disclosed under Section 4 of the Illinois Health and
6    Hazardous Substances Registry Act.
7        (p) Security portions of system safety program plans,
8    investigation reports, surveys, schedules, lists, data, or
9    information compiled, collected, or prepared by or for the
10    Department of Transportation under Sections 2705-300 and
11    2705-616 of the Department of Transportation Law of the
12    Civil Administrative Code of Illinois, the Regional
13    Transportation Authority under Section 2.11 of the
14    Regional Transportation Authority Act, or the St. Clair
15    County Transit District under the Bi-State Transit Safety
16    Act (repealed).
17        (q) Information prohibited from being disclosed by the
18    Personnel Record Review Act.
19        (r) Information prohibited from being disclosed by the
20    Illinois School Student Records Act.
21        (s) Information the disclosure of which is restricted
22    under Section 5-108 of the Public Utilities Act.
23        (t) (Blank).
24        (u) Records and information provided to an independent
25    team of experts under the Developmental Disability and
26    Mental Health Safety Act (also known as Brian's Law).

 

 

10300SB2234sam002- 72 -LRB103 28770 RTM 70664 a

1        (v) Names and information of people who have applied
2    for or received Firearm Owner's Identification Cards under
3    the Firearm Owners Identification Card Act or applied for
4    or received a concealed carry license under the Firearm
5    Concealed Carry Act, unless otherwise authorized by the
6    Firearm Concealed Carry Act; and databases under the
7    Firearm Concealed Carry Act, records of the Concealed
8    Carry Licensing Review Board under the Firearm Concealed
9    Carry Act, and law enforcement agency objections under the
10    Firearm Concealed Carry Act.
11        (v-5) Records of the Firearm Owner's Identification
12    Card Review Board that are exempted from disclosure under
13    Section 10 of the Firearm Owners Identification Card Act.
14        (w) Personally identifiable information which is
15    exempted from disclosure under subsection (g) of Section
16    19.1 of the Toll Highway Act.
17        (x) Information which is exempted from disclosure
18    under Section 5-1014.3 of the Counties Code or Section
19    8-11-21 of the Illinois Municipal Code.
20        (y) Confidential information under the Adult
21    Protective Services Act and its predecessor enabling
22    statute, the Elder Abuse and Neglect Act, including
23    information about the identity and administrative finding
24    against any caregiver of a verified and substantiated
25    decision of abuse, neglect, or financial exploitation of
26    an eligible adult maintained in the Registry established

 

 

10300SB2234sam002- 73 -LRB103 28770 RTM 70664 a

1    under Section 7.5 of the Adult Protective Services Act.
2        (z) Records and information provided to a fatality
3    review team or the Illinois Fatality Review Team Advisory
4    Council under Section 15 of the Adult Protective Services
5    Act.
6        (aa) Information which is exempted from disclosure
7    under Section 2.37 of the Wildlife Code.
8        (bb) Information which is or was prohibited from
9    disclosure by the Juvenile Court Act of 1987.
10        (cc) Recordings made under the Law Enforcement
11    Officer-Worn Body Camera Act, except to the extent
12    authorized under that Act.
13        (dd) Information that is prohibited from being
14    disclosed under Section 45 of the Condominium and Common
15    Interest Community Ombudsperson Act.
16        (ee) Information that is exempted from disclosure
17    under Section 30.1 of the Pharmacy Practice Act.
18        (ff) Information that is exempted from disclosure
19    under the Revised Uniform Unclaimed Property Act.
20        (gg) Information that is prohibited from being
21    disclosed under Section 7-603.5 of the Illinois Vehicle
22    Code.
23        (hh) Records that are exempt from disclosure under
24    Section 1A-16.7 of the Election Code.
25        (ii) Information which is exempted from disclosure
26    under Section 2505-800 of the Department of Revenue Law of

 

 

10300SB2234sam002- 74 -LRB103 28770 RTM 70664 a

1    the Civil Administrative Code of Illinois.
2        (jj) Information and reports that are required to be
3    submitted to the Department of Labor by registering day
4    and temporary labor service agencies but are exempt from
5    disclosure under subsection (a-1) of Section 45 of the Day
6    and Temporary Labor Services Act.
7        (kk) Information prohibited from disclosure under the
8    Seizure and Forfeiture Reporting Act.
9        (ll) Information the disclosure of which is restricted
10    and exempted under Section 5-30.8 of the Illinois Public
11    Aid Code.
12        (mm) Records that are exempt from disclosure under
13    Section 4.2 of the Crime Victims Compensation Act.
14        (nn) Information that is exempt from disclosure under
15    Section 70 of the Higher Education Student Assistance Act.
16        (oo) Communications, notes, records, and reports
17    arising out of a peer support counseling session
18    prohibited from disclosure under the First Responders
19    Suicide Prevention Act.
20        (pp) Names and all identifying information relating to
21    an employee of an emergency services provider or law
22    enforcement agency under the First Responders Suicide
23    Prevention Act.
24        (qq) Information and records held by the Department of
25    Public Health and its authorized representatives collected
26    under the Reproductive Health Act.

 

 

10300SB2234sam002- 75 -LRB103 28770 RTM 70664 a

1        (rr) Information that is exempt from disclosure under
2    the Cannabis Regulation and Tax Act.
3        (ss) Data reported by an employer to the Department of
4    Human Rights pursuant to Section 2-108 of the Illinois
5    Human Rights Act.
6        (tt) Recordings made under the Children's Advocacy
7    Center Act, except to the extent authorized under that
8    Act.
9        (uu) Information that is exempt from disclosure under
10    Section 50 of the Sexual Assault Evidence Submission Act.
11        (vv) Information that is exempt from disclosure under
12    subsections (f) and (j) of Section 5-36 of the Illinois
13    Public Aid Code.
14        (ww) Information that is exempt from disclosure under
15    Section 16.8 of the State Treasurer Act.
16        (xx) Information that is exempt from disclosure or
17    information that shall not be made public under the
18    Illinois Insurance Code.
19        (yy) Information prohibited from being disclosed under
20    the Illinois Educational Labor Relations Act.
21        (zz) Information prohibited from being disclosed under
22    the Illinois Public Labor Relations Act.
23        (aaa) Information prohibited from being disclosed
24    under Section 1-167 of the Illinois Pension Code.
25        (bbb) Information that is prohibited from disclosure
26    by the Illinois Police Training Act and the Illinois State

 

 

10300SB2234sam002- 76 -LRB103 28770 RTM 70664 a

1    Police Act.
2        (ccc) Records exempt from disclosure under Section
3    2605-304 of the Illinois State Police Law of the Civil
4    Administrative Code of Illinois.
5        (ddd) Information prohibited from being disclosed
6    under Section 35 of the Address Confidentiality for
7    Victims of Domestic Violence, Sexual Assault, Human
8    Trafficking, or Stalking Act.
9        (eee) Information prohibited from being disclosed
10    under subsection (b) of Section 75 of the Domestic
11    Violence Fatality Review Act.
12        (fff) Images from cameras under the Expressway Camera
13    Act. This subsection (fff) is inoperative on and after
14    July 1, 2025.
15        (ggg) Information prohibited from disclosure under
16    paragraph (3) of subsection (a) of Section 14 of the Nurse
17    Agency Licensing Act.
18        (hhh) Information submitted to the Illinois State
19    Police in an affidavit or application for an assault
20    weapon endorsement, assault weapon attachment endorsement,
21    .50 caliber rifle endorsement, or .50 caliber cartridge
22    endorsement under the Firearm Owners Identification Card
23    Act.
24        (iii) Data exempt from disclosure under Section 50 of
25    the School Safety Drill Act.
26        (jjj) (hhh) Information exempt from disclosure under

 

 

10300SB2234sam002- 77 -LRB103 28770 RTM 70664 a

1    Section 30 of the Insurance Data Security Law.
2        (kkk) (iii) Confidential business information
3    prohibited from disclosure under Section 45 of the Paint
4    Stewardship Act.
5        (lll) (iii) Data exempt from disclosure under Section
6    2-3.196 of the School Code.
7        (mmm) (iii) Information prohibited from being
8    disclosed under subsection (e) of Section 1-129 of the
9    Illinois Power Agency Act.
10        (nnn) Information exempt from disclosure under Section
11    155 of the Consumer Protections for Small Business Act.
12(Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22;
13102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.
148-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;
15102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.
166-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,
17eff. 1-1-24; 103-472, eff. 8-1-24; 103-508, eff. 8-4-23;
18103-580, eff. 12-8-23; revised 1-2-24.)
 
19    Section 905. The Consumer Fraud and Deceptive Business
20Practices Act is amended by adding Section 2EEEE as follows:
 
21    (815 ILCS 505/2EEEE new)
22    Sec. 2EEEE. Violations of the Consumer Protections for
23Small Business Act. Any person who violates the Consumer
24Protections for Small Business Act commits an unlawful

 

 

10300SB2234sam002- 78 -LRB103 28770 RTM 70664 a

1practice within the meaning of this Act.
 
2    Section 995. No acceleration or delay. Where this Act
3makes changes in a statute that is represented in this Act by
4text that is not yet or no longer in effect (for example, a
5Section represented by multiple versions), the use of that
6text does not accelerate or delay the taking effect of (i) the
7changes made by this Act or (ii) provisions derived from any
8other Public Act.
 
9    Section 999. Effective date. This Act takes effect upon
10becoming law.".