Sen. Christopher Belt

Filed: 4/8/2024

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2234

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

 

 

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1definition of a lease under Section 2A-103 of the Uniform
2Commercial Code, that the recipient does not intend to use for
3personal, family, or household purposes. "Closed-end
4financing" includes financing with an established principal
5amount and duration.
6    "Commercial financing database" means a reporting database
7certified by the Department as effective in receiving a report
8of commercial financing made under this Act.
9    "Commercial financing database provider" means an entity
10that provides a reporting database certified by the Department
11under this Act.
12    "Commercial financing" means open-end financing,
13closed-end financing, sales-based financing, factoring
14transaction, or other form of financing, the proceeds of which
15the recipient does not intend to use primarily for personal,
16family, or household purposes. For purposes of determining
17whether a financing is a commercial financing, the provider
18may rely on any statement of intended purposes by the
19recipient. The statement may be a separate statement signed by
20the recipient; may be contained in the financing application,
21financing agreement, or other document signed or consented to
22by the recipient; or may be provided orally by the recipient so
23long as it is documented in the recipient's application file
24by the provider. Electronic signatures and consents are valid
25for purposes of the foregoing sentence. The provider shall not
26be required to ascertain that the proceeds of a commercial

 

 

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

 

 

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

 

 

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

 

 

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1Illinois, a provider may rely upon (i) any written
2representation by the recipient as to whether it is located in
3Illinois; or (ii) the business address provided by the
4recipient in the application for commercial financing showing
5that the recipient is located in Illinois. "Recipient"
6includes an authorized representative of a person who applies
7for commercial financing and is made a specific offer of
8commercial financing by a provider. "Recipient" does not
9include a person acting as a broker is not a recipient in a
10transaction they broker.
11    "Sales-based financing" means a transaction that is repaid
12by the recipient to the provider, over time, as a percentage of
13sales or revenue, in which the payment amount may increase or
14decrease according to the volume of sales made or revenue
15received by the recipient or a transaction that includes a
16true-up mechanism where the financing is repaid as a fixed
17payment but provides for a reconciliation process that adjusts
18the payment to an amount that is a percentage of sales or
19revenue.
20    "Secretary" means the Secretary of Financial and
21Professional Regulation or a person authorized by the
22Secretary to perform the Secretary's responsibilities under
23this Act.
24    "Specific offer" means the specific terms of commercial
25financing, including price or amount, that is quoted to a
26recipient based on information obtained from or about the

 

 

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1recipient that, if accepted by a recipient, shall be binding
2on the provider, as applicable, subject to any specific
3requirements stated in the specific terms.
4    "True-up mechanism" means, with respect to sales-based
5financing, a contractual arrangement with all the following
6elements:
7        (1) The financer receives periodic payments based upon
8    a pre-set amount stated in the contract.
9        (2) The contract allows the recipient to request, or
10    the financer to initiate, adjustments to the payment
11    amount, credits to the recipient, or charges to the
12    recipient after execution of the contract, so that the
13    total amount paid by the recipient more closely reflects a
14    split rate listed in the contract.
 
15    Section 10. Applicability.
16    (a) Except as otherwise provided in this Section, this Act
17applies to any person that offers or provides commercial
18financing in Illinois or is otherwise a provider.
19    (b) The provisions of this Act apply to any person that
20seeks to evade its applicability by any device, subterfuge, or
21pretense whatsoever.
22    (c) The provisions of this Act apply to any person that
23aids or facilitates a violation of this Act.
24    (d) The provisions of this Act do not apply to:
25        (1) a bank, trust company, or industrial loan company

 

 

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1    doing business under the authority of, or in accordance
2    with, a license, certificate or charter issued by the
3    United States, this State, or any other state, district,
4    territory, or commonwealth of the United States that is
5    authorized to transact business in this State;
6        (2) a federally chartered savings and loan
7    association, federal savings bank, or federal credit union
8    that is authorized to transact business in this State;
9        (3) a savings and loan association, savings bank, or
10    credit union organized under the laws of this State or any
11    other state that is authorized to transact business in
12    this State;
13        (4) a lender regulated under the federal Farm Credit
14    Act; and
15        (5) a person acting in the person's capacity as a
16    technology services provider to an entity described by
17    sub-paragraphs (1), (2), or (3) for use as part of that
18    entity's commercial financing program, provided the person
19    has no interest, or arrangement, or agreement to purchase
20    any interest in the commercial financing extended by the
21    entity in connection with the program.
 
22    Section 15. Division of Financial Institutions. This Act
23shall be administered by the Division on behalf of the
24Secretary.
 

 

 

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1    Section 20. Registration requirement.
2    (a) It is unlawful for a person to engage in the conduct
3regulated by this Act unless the person: (i) registers with
4the Secretary in accordance with this Section; and (ii)
5maintains a valid registration. An officer or employee of a
6person required to register under this Section is not required
7to register if the person for whom the individual is an officer
8or employee is registered.
9    (b) Application for registration and renewal of
10registration shall be made in accordance with this Act and
11with the requirements of the multistate licensing system, if
12required by the Secretary. The application shall be in
13writing, under oath, and on a form obtained from and
14prescribed by the Secretary. The Secretary may change or
15update the form to carry out the purposes of this Act. The
16Secretary may require part or all of the application to be
17submitted electronically, with attestation, to the multistate
18licensing system.
19    (c) Registrants shall apply to renew their registration
20every calendar year. Registrants may submit properly completed
21renewal application forms and filing fees 60 days before the
22registration expiration date, and the same shall be received
23by the Secretary at least 30 days before the registration
24expiration date. Absent a written extension from the
25Department, a registration shall expire on December 31 of each
26year if a registrant fails to timely submit a properly

 

 

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1completed renewal application and fees.
2    (d) Upon receipt of the registration, a registrant is
3authorized to engage in conduct regulated by this Act. The
4registration shall remain in full force and effect until it
5expires, is withdrawn by the registrant, or is revoked or
6suspended as provided in this Act.
7    (e) To register under this Section, an applicant shall:
8        (1) pay a registration fee of $2,500 to the
9    Department; and
10        (2) submit a registration statement containing the
11    information described in subsection (g).
12    (f) To renew a registration under this Section, a person
13shall:
14        (1) pay the annual fee of $2,500 to the Department;
15    and
16        (2) submit a renewal statement containing the
17    information described in subsection (g).
18    (g) A registration or renewal statement must be submitted
19to the Secretary or to a multistate licensing system as
20approved by the Secretary. The registration or renewal
21statement shall include:
22        (1) the name of the person;
23        (2) the name in which the business will be transacted
24    if different from that required in paragraph (1), which
25    must be properly registered as an assumed corporate name
26    under the Business Corporation Act of 1983, an assumed

 

 

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1    limited liability company name under the Limited Liability
2    Company Act, or an assumed business name under the Assumed
3    Business Name Act;
4        (3) the address of the person's principal business
5    office;
6        (4) the address of each office in this State at which
7    the person engages in commercial financing transactions;
8        (5) if the person engages in commercial financing
9    transactions in this State but does not maintain an office
10    in this State, a brief description of the manner in which
11    the business is conducted;
12        (6) if the person conducts business through an agent
13    located in this State, the name and address in this State
14    of the person's agent properly registered with the
15    Secretary of State;
16        (7) for a registration application, whether the
17    person, an officer, director, manager, operator, or
18    principal of the person, or an employee of the person
19    engaged in the business of commercial financing has been
20    convicted of a crime involving an act of fraud,
21    dishonesty, breach of trust, or money laundering; if the
22    applicant answers yes to this paragraph, then the
23    applicant shall report the names, titles or relationship
24    to the applicant or registrant, and the nature of the
25    covered crime;
26        (8) for a renewal application, whether, in the past

 

 

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1    year, the person, an officer, director, manager, operator,
2    or principal of the person, or an employee of the person
3    engaged in the business of commercial financing has been
4    convicted of a crime involving an act of fraud,
5    dishonesty, breach of trust, or money laundering; if the
6    registrant answers yes to this paragraph, then the
7    registrant shall report the names, titles or relationship
8    to the applicant or registrant, and the nature of the
9    covered crime;
10        (9) a statement of the person's commitment to abide by
11    the requirements of registering persons under this Act,
12    including providing the required financing disclosures in
13    commercial financing offers as required under Sections 45,
14    50, 55, 60, 65, and 70 of this Act;
15        (10) a copy of the commercial financing disclosure
16    form to be used for each type of commercial financing that
17    the person offers or intends to offer, and a description
18    of when the disclosure will be provided to the recipient;
19        (11) information on financing offers presented by
20    registrant in Illinois in the previous calendar year,
21    including the number of financing offers made, the number
22    of financing offers made in which the disclosures as
23    required by Sections 45, 50, 55, 60, 65, and 70 were
24    offered, and the number of financing offers accepted by
25    recipients; and
26        (12) any other information deemed necessary by the

 

 

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1    Secretary.
2    (h) The Secretary may refuse to accept or renew a
3registration if:
4        (1) the Secretary determines that the person has not
5    complied with the provisions of this Act, its implementing
6    rules, or other laws that apply to the person; or
7        (2) the Secretary determines that there is substantial
8    continuity between the person and any violator of this
9    Act, its implementing rules, or other laws that apply to
10    the person or related violator.
11    (i) The Department shall adopt and amend such rules as may
12be required for the proper administration and enforcement of
13this Section, including rules providing for the form, content,
14and filing of a registration and renewal statement.
 
15    Section 25. Additional registration information.
16    (a) In order to fulfill the purposes of this Act, the
17Secretary may establish relationships or contracts with a
18multistate licensing system or other persons to collect and
19maintain records and process fees related to registrants or
20other persons subject to this Act.
21    (b) For the purposes of this Section, and to reduce the
22points of contact that the Secretary may have to maintain, the
23Secretary may use a multistate licensing system as a
24channeling agent for requesting and distributing information
25to and from any source.

 

 

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1    (c) Each registrant shall furnish to the Secretary or
2multistate licensing system an updated business address within
310 days after any change of business address.
 
4    Section 30. Registration expiration. No activity regulated
5by this Act shall be conducted by a registrant whose
6registration has expired. The Secretary may, within the
7Secretary's discretion, reinstate an expired registration upon
8payment of the renewal fee, payment of a reactivation fee
9equal to 5 times the renewal fee, submission of a completed
10renewal application, and an affidavit of good cause for late
11renewal.
 
12    Section 35. Functions; powers; duties. The functions,
13powers, and duties of the Secretary include, but are not
14limited to, the following:
15        (1) to issue or refuse to issue any registration or
16    renewal;
17        (2) to revoke or suspend for cause any registration
18    issued under this Act;
19        (3) to keep records of all registrations issued under
20    this Act;
21        (4) to receive, consider, investigate, and act upon
22    complaints made by any person in connection with any
23    registration in this State or unregistered commercial
24    financing activity of any person;

 

 

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1        (5) to adopt rules necessary and proper for the
2    administration of this Act, to protect consumers and
3    financing recipients, to promote fair competition, and as
4    otherwise authorized by this Act;
5        (6) to subpoena documents and witnesses and compel
6    their attendance and production, to administer oaths, and
7    to require the production of any books, papers, or other
8    materials relevant to any inquiry authorized by this Act
9    or its implementing rules;
10        (7) to issue orders against any person if the
11    Secretary has reasonable cause to believe that an unsafe,
12    unsound, or unlawful practice has occurred, is occurring,
13    or is about to occur; if any person is violating, or is
14    about to violate any law, rule, or written agreement with
15    the Secretary; or for the purpose of administering the
16    provisions of this Act and any rule adopted in accordance
17    with this Act;
18        (8) to address any inquiries to any registrant, or the
19    owners, officers, or directors thereof, in relation to its
20    activities and conditions, or any other matter connected
21    with its affairs, and any registrant or person so
22    addressed shall promptly reply in writing to those
23    inquiries. The Secretary may also require reports from any
24    registrant at any time the Secretary deems desirable;
25        (9) to enforce provisions of this Act and its
26    implementing rules;

 

 

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1        (10) to levy fees, including, but not limited to,
2    assessments, registration fees, civil penalties, and
3    charges for services performed in administering this Act.
4    The Secretary may establish and modify fees by rule. The
5    aggregate of all fees collected by the Secretary under
6    this Act shall be paid promptly after receipt into the
7    Financial Institution Fund. The amounts deposited into the
8    Financial Institution Fund shall be used for the ordinary
9    and contingent expenses of the Department. Nothing in this
10    Act prevents paying expenses including salaries,
11    retirement, social security, and State-paid insurance of
12    State employees, or any other expenses incurred under this
13    Act by appropriation from the General Revenue Fund or any
14    other fund;
15        (11) to issue refunds to registrants of any
16    overpayment for good cause shown;
17        (12) to appoint experts and special assistants as
18    needed to effectively and efficiently administer this Act;
19        (13) to conduct hearings for the purpose of
20    suspensions, denials, or revocations of registrations,
21    fining, or other discipline of registrants or unregistered
22    persons or entities;
23        (14) to exercise visitorial power over a registrant:
24    (A) if the Secretary has reasonable cause to believe that
25    an unsafe, unsound, or unlawful practice has occurred, is
26    occurring, or is about to occur; or (B) if a person is

 

 

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1    violating or is about to violate any law, rule, or written
2    agreement with the Secretary; and
3        (15) to enter into cooperative agreements with state
4    regulatory authorities of other states to provide for
5    examination of corporate offices or branches of those
6    states, participate in joint examinations with other
7    regulators, and to accept reports of the examinations: (A)
8    if the Secretary has reasonable cause to believe that an
9    unsafe, unsound, or unlawful practice has occurred, is
10    occurring, or is about to occur; or (B) if a person is
11    violating or is about to violate any law, rule, or written
12    agreement with the Secretary;
13        (16) to impose civil penalties of up to $200 per day
14    against a registrant for failing to respond to a
15    regulatory request or reporting requirement; and
16        (17) to enter into agreements in connection with a
17    multistate licensing system.
 
18    Section 40. 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 investigation. The
23Secretary, or the Secretary's duly authorized representative,
24may administer oaths and affirmations to any person.
25    (b) If a person does not comply with the Secretary's

 

 

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

 

 

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1a suitable amount of bond or payment pursuant to which the
2person named be freed, having a due regard to the nature of the
3case.
4    (d) In addition, the Secretary may, through the Attorney
5General, seek a writ of attachment or an equivalent order from
6the circuit court having jurisdiction over the person who has
7refused to obey a subpoena, who has refused to give testimony,
8or who has refused to produce the matters described in the
9subpoena duces tecum.
 
10    Section 45. Sales-based financing disclosure requirements.
11A provider subject to this Act shall provide the following
12disclosures to a recipient, in a manner prescribed by the
13Secretary, if any, at the time of extending a specific offer of
14sales-based financing:
15        (1) The total amount of the commercial financing, and,
16    if different from the financing amount, the disbursement
17    amount after any amount deducted or withheld at
18    disbursement.
19        (2) The finance charge.
20        (3) The estimated annual percentage rate, using the
21    words annual percentage rate or the abbreviation
22    "Estimated APR", expressed as a yearly rate, inclusive of
23    any fees and finance charges, based on the estimated term
24    of repayment and the projected periodic payment amounts.
25    The estimated term of repayment and the projected periodic

 

 

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1    payment amounts shall be calculated based on the
2    projection of the recipient's sales, which may be referred
3    to as the projected sales volume. The projected sales
4    volume may be calculated using the historical method or
5    the underwriting method. The provider shall provide notice
6    to the Secretary on which method the provider intends to
7    use across all instances of sales-based financing offered
8    in calculating the estimated annual percentage rate under
9    this Section, according to the following:
10            (A) A provider using the historical method shall
11        use an average historical volume of sales or revenue
12        by which the financing's payment amounts are based and
13        the estimated annual percentage rate is calculated.
14        The provider shall fix the historical time period used
15        to calculate the average historical volume and use the
16        period for all disclosure purposes for all sales-based
17        financing products offered. The fixed historical time
18        period shall either be the preceding time period from
19        the specific offer or, alternatively, the provider may
20        use average sales for the same number of months with
21        the highest sales volume within the previous 12
22        months. The fixed historical time period shall be no
23        less than one month and shall not exceed 12 months.
24            (B) A provider using the underwriting method shall
25        determine the estimated annual percentage rate, the
26        estimated term, and the projected payments, using a

 

 

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1        projected sales volume that the provider elects for
2        each disclosure, if they participate in a review
3        process prescribed by the Secretary. A provider shall,
4        on an annual basis, report data to the Secretary of
5        estimated annual percentage rates disclosed to the
6        recipient and actual retrospective annual percentage
7        rates of completed transactions. The report shall
8        contain the information as the Department may adopt by
9        rule as necessary or appropriate for the purpose of
10        making a determination of whether the deviation
11        between the estimated annual percentage rate and
12        actual retrospective annual percentage rates of
13        completed transactions was reasonable. The Secretary
14        shall establish the method of reporting and may, upon
15        a finding that the use of projected sales volume by the
16        provider has resulted in an unacceptable deviation
17        between estimated and actual annual percentage rate,
18        require the provider to use the historical method. The
19        Secretary may consider unusual and extraordinary
20        circumstances impacting the provider's deviation
21        between estimated and actual annual percentage rate in
22        the determination of the finding.
23        (4) The total repayment amount, which is the
24    disbursement amount plus the finance charge.
25        (5) The estimated term, which is the period of time
26    required for the periodic payments, based on the projected

 

 

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1    sales volume, to equal the total amount required to be
2    repaid.
3        (6) The payment amounts, based on the projected sales
4    volume:
5            (A) for payment amounts that are fixed, the
6        payment amounts and frequency, such as, daily, weekly,
7        monthly, and, if the payment frequency is other than
8        monthly, the amount of the average projected payments
9        per month; or
10            (B) for payment amounts that are variable, a
11        payment schedule or a description of the method used
12        to calculate the amounts and frequency of payments and
13        the amount of the average projected payments per
14        month.
15        (7) A description of all other potential fees and
16    charges not included in the finance charge, including, but
17    not limited to, draw fees, late payment fees, and returned
18    payment fees.
19        (8) If the recipient elects to pay off or refinance
20    the commercial financing before full repayment, the
21    provider shall disclose:
22            (A) whether the recipient would be required to pay
23        any finance charges other than interest accrued since
24        their last payment; if so, disclosure of the
25        percentage of any unpaid portion of the finance charge
26        and maximum dollar amount the recipient could be

 

 

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1        required to pay; and
2            (B) whether the recipient would be required to pay
3        any additional fees not already included in the
4        finance charge.
5        (9) A description of collateral requirements or
6    security interests, if any.
 
7    Section 50. Commercial closed-end financing disclosure
8requirements.
9    (a) A provider subject to this Act shall provide the
10following disclosures to a recipient, in a manner prescribed
11by the Secretary, if any, at the time of extending a specific
12offer for closed-end financing:
13        (1) The total amount of the commercial financing, and,
14    if different from the financing amount, the disbursement
15    amount after any amount deducted or withheld at
16    disbursement.
17        (2) The finance charge.
18        (3) The annual percentage rate, using only the words
19    annual percentage rate or the abbreviation "APR",
20    expressed as a yearly rate, inclusive of any fees and
21    finance charges that cannot be avoided by a recipient.
22        (4) The total repayment amount, which is the
23    disbursement amount plus the finance charge.
24        (5) The term of the financing.
25        (6) The payment amounts:

 

 

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1            (A) for payment amounts that are fixed, the
2        payment amounts and frequency, such as daily, weekly,
3        monthly, and, if the term is longer than one month, the
4        average monthly payment amount; or
5            (B) for payment amounts that are variable, a full
6        payment schedule or a description of the method used
7        to calculate the amounts and frequency of payments,
8        and, if the term is longer than one month, the
9        estimated average monthly payment amount.
10        (7) A description of all other potential fees and
11    charges that can be avoided by the recipient, including,
12    but not limited to, late payment fees and returned payment
13    fees.
14        (8) If the recipient elects to pay off or refinance
15    the commercial financing before full repayment, the
16    provider shall disclose:
17            (A) whether the recipient would be required to pay
18        any finance charges other than interest accrued since
19        their last payment; if so, disclosure of the
20        percentage of any unpaid portion of the finance charge
21        and maximum dollar amount the recipient could be
22        required to pay; and
23            (B) whether the recipient would be required to pay
24        any additional fees not already included in the
25        finance charge.
26        (9) A description of collateral requirements or

 

 

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1    security interests, if any.
2    (b) If an advance requires repayment in periodic
3installments over time and does not qualify as sales-based
4financing, then the advance qualifies as close-end financing
5and shall satisfy the disclosure requirements of this Section.
 
6    Section 55. Open-end commercial financing disclosure
7requirements. A provider subject to this Act shall provide the
8following disclosures to a recipient, in a manner prescribed
9by the Secretary, if any, at the time of extending a specific
10offer for open-end financing:
11        (1) The maximum amount of credit available to the
12    recipient, such as the credit line amount, and the amount
13    scheduled to be drawn by the recipient at the time the
14    offer is extended, if any, less any amount deducted or
15    withheld at disbursement.
16        (2) The finance charge.
17        (3) The annual percentage rate, using only the words
18    annual percentage rate or the abbreviation "APR",
19    expressed as a nominal yearly rate, inclusive of any fees
20    and finance charges that cannot be avoided by a recipient,
21    and based on the maximum amount of credit available to the
22    recipient and the term resulting from making the minimum
23    required payments term as disclosed.
24        (4) The total repayment amount, which is the draw
25    amount, less any fees deducted or withheld at

 

 

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1    disbursement, plus the finance charge. The total repayment
2    amount shall assume a draw amount equal to the maximum
3    amount of credit available to the recipient if drawn and
4    held for the duration of the term or draw period.
5        (5) The term of the plan, if applicable, or the period
6    over which a draw is amortized.
7        (6) The payment frequency and amounts, based on the
8    assumptions used in the calculation of the annual
9    percentage rate, including a description of payment amount
10    requirements such as a minimum payment amount, and if the
11    payment frequency is other than monthly, the amount of the
12    average projected payments per month. For payment amounts
13    that are variable, the provider should include a payment
14    schedule or a description of the method used to calculate
15    the amounts and frequency of payments and the estimated
16    average monthly payment amount.
17        (7) A description of all other potential fees and
18    charges that can be avoided by the recipient, including,
19    but not limited to, draw fees, late payment fees, and
20    returned payment fees.
21        (8) Were the recipient to elect to pay off or
22    refinance the commercial financing before full repayment,
23    the provider shall disclose:
24            (A) whether the recipient would be required to pay
25        any finance charges other than interest accrued since
26        their last payment; if so, disclosure of the

 

 

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1        percentage of any unpaid portion of the finance charge
2        and maximum dollar amount the recipient could be
3        required to pay; and
4            (B) whether the recipient would be required to pay
5        any additional fees not already included in the
6        finance charge.
7        (9) A description of collateral requirements or
8    security interests, if any.
 
9    Section 60. Factoring transaction disclosure requirements.
10A provider subject to this Act shall provide the following
11disclosures to a recipient, in a manner prescribed by the
12Secretary, if any, at the time of extending a specific offer
13for a factoring transaction:
14        (1) The amount of the receivables purchase price paid
15    to the recipient, and, if different from the purchase
16    price, the disbursement amount after any amount deducted
17    or withheld at disbursement.
18        (2) The finance charge.
19        (3) The estimated annual percentage rate, using that
20    term. To calculate the estimated annual percentage rate,
21    the purchase amount is considered the financing amount,
22    the purchase amount minus the finance charge is considered
23    the payment amount, and the term is established by the
24    payment due date of the receivables. As an alternate
25    method of establishing the term, the provider may estimate

 

 

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1    the term for a factoring transaction as the average
2    payment period based on its historical data over a period
3    not to exceed the previous 12 months, concerning payment
4    invoices paid by the party or parties owing the accounts
5    receivable in question.
6        (4) The total payment amount, which is the purchase
7    amount plus the finance charge.
8        (5) A description of all other potential fees and
9    charges that can be avoided by the recipient.
10        (6) A description of the receivables purchased and any
11    additional collateral requirements or security interests.
 
12    Section 65. Other forms of financing disclosure
13requirements. The Secretary may require disclosure by a
14provider extending a specific offer of commercial financing
15which is not an open-end financing, closed-end financing,
16sales-based financing, or factoring transaction but otherwise
17meets the definition of commercial financing. Subject to rules
18adopted by the Secretary, a provider subject to this Act shall
19provide the following disclosures to a recipient, in a manner
20prescribed by the Secretary, if any, at the time of extending a
21specific offer of other forms of financing:
22        (1) The total amount of the commercial financing, and,
23    if different from the financing amount, the disbursement
24    amount after any fees deducted or withheld at
25    disbursement.

 

 

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1        (2) The finance charge.
2        (3) The annual percentage rate, using only the words
3    annual percentage rate or the abbreviation "APR",
4    expressed as a yearly rate, inclusive of any fees and
5    finance charges.
6        (4) The total repayment amount which is the
7    disbursement amount plus the finance charge.
8        (5) The term of the financing.
9        (6) The payment amounts:
10            (A) for payment amounts that are fixed, the
11        payment amounts and frequency, such as daily, weekly,
12        monthly, and the average monthly payment amount; or
13            (B) for payment amounts that are variable, a
14        payment schedule or a description of the method used
15        to calculate the amounts and frequency of payments,
16        and the estimated average monthly payment amount.
17        (7) A description of all other potential fees and
18    charges that can be avoided by the recipient, including,
19    but not limited to, late payment fees and returned payment
20    fees.
21        (8) If the recipient elects to pay off or refinance
22    the commercial financing before full repayment, the
23    provider shall disclose:
24            (A) whether the recipient would be required to pay
25        any finance charges other than interest accrued since
26        their last payment; if so, disclosure of the

 

 

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1        percentage of any unpaid portion of the finance charge
2        and maximum dollar amount the recipient could be
3        required to pay; and
4            (B) whether the recipient would be required to pay
5        any additional fees not already included in the
6        finance charge.
7        (9) A description of collateral requirements or
8    security interests, if any.
 
9    Section 70. Disclosure requirements for renewal financing.
10If, as a condition of obtaining the commercial financing, the
11provider requires the recipient to pay off the balance of an
12existing commercial financing from the same provider, the
13provider shall disclose:
14        (1) The amount of the new commercial financing that is
15    used to pay off the portion of the existing commercial
16    financing that consists of prepayment charges required to
17    be paid and any unpaid interest expense that was not
18    forgiven at the time of renewal. For financing for which
19    the total repayment amount is calculated as a fixed
20    amount, the prepayment charge is equal to the original
21    finance charge multiplied by the amount of the renewal
22    used to pay off existing financing as a percentage of the
23    total repayment amount, minus any portion of the total
24    repayment amount forgiven by the provider at the time of
25    prepayment. If the amount is more than zero, the amount

 

 

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1    shall be the answer to the following question: "Does the
2    renewal financing include any amount that is used to pay
3    unpaid finance charges or fees, also known as double
4    dipping? Yes, {enter amount}. If the amount is zero, the
5    answer would be no."
6        (2) If the disbursement amount will be reduced to pay
7    down any unpaid portion of the outstanding balance, the
8    actual dollar amount by which the disbursement amount will
9    be reduced.
 
10    Section 75. Additional information. Nothing in this Act
11shall prevent a provider from providing or disclosing
12additional information on a commercial financing being offered
13to a recipient, provided however, that the additional
14information shall not be disclosed as part of the disclosure
15required by this Act. If other metrics of financing cost are
16disclosed or used in the application process of a commercial
17financing, these metrics shall not be presented as a "rate" if
18they are not the annual interest rate or the annual percentage
19rate. The term "interest", when used to describe a percentage
20rate, shall only be used to describe annualized percentage
21rates, such as the annual interest rate. When a provider
22states a rate of finance charge or a financing amount to a
23recipient during an application process for commercial
24financing, the provider shall also state the rate as an
25"annual percentage rate", using that term or the abbreviation

 

 

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1"APR".
 
2    Section 80. Commercial financing disclosure forms approved
3for use in the other states. The Secretary may approve the use
4of commercial financing disclosure forms approved for use in
5other states with commercial financing disclosure requirements
6that are substantially similar to or exceed the requirements
7set forth in this Act, including the disclosure requirements
8in Sections 45, 50, 55, 60, 65, and 70 of this Act.
 
9    Section 85. Violation of disclosure requirements. If the
10Secretary finds that a provider who is required to register
11with the Department according to this Act has violated any
12disclosure requirements outlined in Sections 45, 50, 55, 60,
1365, 70, and 75, that shall be considered a violation of this
14Act separate from any other violation that may result from
15operating without a registration as outlined in Section 95.
 
16    Section 90. Notification.
17    (a) A registrant must advise the Secretary in writing of
18any changes to the information submitted on its most recent
19registration or renewal of registration within 30 days after
20the change.
21    (b) A registrant must advise the Secretary in writing that
22the registrant has been disciplined, including denial of
23licensure, by a licensing authority of this State or another

 

 

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1state within 10 days after entry of the discipline.
 
2    Section 95. Disciplinary actions.
3    (a) The Secretary may enter an order imposing one or more
4of the following penalties:
5        (1) revocation of registration;
6        (2) suspension of a registration subject to
7    reinstatement upon satisfying all reasonable conditions
8    the Secretary may specify;
9        (3) placement of the registrant or applicant on
10    probation for a period of time and subject to all
11    reasonable conditions as the Secretary may specify;
12        (4) imposition of civil monetary penalties not to
13    exceed $10,000 for each separate offense, but civil
14    penalties may not to exceed $50,000 for all violations
15    arising from the use of the same single transaction,
16    including for financing offers that are not consummated;
17        (5) restitution, refunds, or any other relief
18    necessary to protect recipients; and
19        (6) denial of a registration.
20    (b) Grounds for penalties include:
21        (1) if a registrant has violated or aided another to
22    violate any provision of this Act, any rule adopted by the
23    Secretary, or any other law, rule, or regulation of this
24    State, any other state, or the United States;
25        (2) if a person has violated or aided another to

 

 

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1    violate any provision of this Act or any rule adopted by
2    the Secretary pursuant to this Act;
3        (3) if a fact or condition exists that, if it had
4    existed at the time of the original application for
5    registration, would have warranted the Secretary in
6    refusing issue the original registration;
7        (4) that a registrant 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 registration to an individual;
10        (5) that a person engaged in unsafe, unsound, unfair,
11    deceptive, or abusive business practices related to the
12    activity covered by this Act;
13        (6) that a registrant or an officer, director,
14    manager, operator, or principal of the registrant, or an
15    employee of the registrant engaged in the business of
16    commercial financing has been adjudicated guilty of a
17    crime against the law of this State, any other state, or of
18    the United States involving moral turpitude, abusive,
19    deceptive, fraudulent, or dishonest dealing;
20        (7) that a final judgment has been entered against
21    registrant or an officer, director, manager, operator, or
22    principal of the registrant, or an employee of the
23    registrant engaged in the business of commercial financing
24    in a civil action upon grounds of abusive conduct,
25    conversion, fraud, misrepresentation, or deceit;
26        (8) that an applicant made a material misstatement in

 

 

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1    the applicant's application for registration or any other
2    communication to the Secretary;
3        (9) that a person has demonstrated, by course of
4    conduct, negligence or incompetence in performing any act
5    for which it is required to hold a registration under this
6    Act;
7        (10) that a person has failed to advise the Secretary
8    in writing of any changes to the information submitted on
9    the person's most recent registration or renewal of
10    registration within 30 days after the change;
11        (11) that a registrant had a license, registration, or
12    the equivalent, to practice any profession, occupation,
13    other industry or activity requiring licensure revoked,
14    suspended, disciplined, or otherwise acted against,
15    including the denial of licensure by a licensing authority
16    of this State or another state, territory, or country for
17    fraud, dishonest dealing, misrepresentations,
18    incompetence, conversion, any act of moral turpitude or
19    any other grounds that would constitute grounds for
20    discipline under this Act;
21        (12) that a person registered under this Act failed to
22    timely notify the Secretary that the person has been
23    disciplined, including denial of licensure, by a licensing
24    authority of this State or another state as required under
25    subsection (b) of Section 90;
26        (13) that a person engaged in activities regulated by

 

 

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1    this Act without a current, active registration unless
2    specifically exempted by this Act;
3        (14) that a person failed to timely pay any fee,
4    charge, or civil penalty assessed under this Act; and
5        (15) that a person refused, obstructed, evaded, or
6    unreasonably delayed an investigation or information
7    request authorized under this Act, or refused, obstructed,
8    evaded, or unreasonably delayed compliance with the
9    Secretary's subpoena or subpoena duces tecum.
10    (c) No registration shall be suspended or revoked, except
11as provided in this Section, nor shall any person be assessed a
12civil penalty without notice of his or her right to a hearing.
13    (d) The Secretary may suspend any registration for a
14period not exceeding 180 days pending investigation for good
15cause shown that an emergency exists.
16    (e) No revocation, suspension, or surrender of any
17registration shall impair or affect the obligation of any
18preexisting lawful contract between the registrant and any
19person. The Secretary's approval of a registrant's application
20to surrender its registration shall not affect the
21registrant's civil or criminal liability for acts committed
22prior to surrender. Surrender of a registration does not
23entitle the registrant to a return of any part of the
24registration fee.
25    (f) Every registration issued under this Act shall remain
26in force and effect until the registration expires, is

 

 

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1surrendered, is revoked, or is suspended in accordance with
2the provisions of this Act. The Secretary shall have authority
3to reinstate a suspended registration or to issue a new
4registration to a registrant whose registration has been
5revoked or surrendered if no fact or condition then exists
6which would have warranted the Secretary in refusing
7originally to issue that registration under this Act.
8    (g) Whenever the Secretary imposes discipline authorized
9by this Section, the Secretary shall execute a written order
10to that effect. The Secretary shall serve a copy of the order
11upon the person. The Secretary shall serve the person with
12notice of the order, including a statement of the reasons for
13the order personally or by certified mail. Service by
14certified mail shall be deemed completed when the notice is
15deposited in the U.S. Mail.
16    (h) An order assessing a civil penalty, an order revoking
17or suspending a registration, or an order denying renewal of a
18registration shall take effect upon service of the order
19unless the registrant serves the Department with a written
20request for a hearing in the manner required by the order
21within 10 days after the date of service of the order. If a
22person requests a hearing, the order shall be stayed from its
23date of service until the Department enters a final
24administrative order. Hearings shall be conducted as follows:
25        (1) If the registrant requests a hearing, then the
26    Secretary shall schedule a hearing within 90 days after

 

 

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1    the request for a hearing unless otherwise agreed to by
2    the parties.
3        (2) The hearing shall be held at the time and place
4    designated by the Secretary. The Secretary and any
5    administrative law judge designated by the Secretary shall
6    have the power to administer oaths and affirmations,
7    subpoena witnesses and compel their attendance, take
8    evidence, and require the production of books, papers,
9    correspondence, and other records or information that they
10    consider relevant or material to the inquiry.
11    (i) The costs of administrative hearings conducted under
12this Section shall be paid by the registrant or other person
13subject to the hearing.
14    (j) Registrants and other persons subject to this Act
15shall be subject to the disciplinary actions specified in this
16Act for any violations conducted by any officer, director,
17shareholder, joint venture, partner, owner, including, but not
18limited to, ultimate equitable owner.
 
19    Section 100. Investigation of complaints. The Secretary
20may investigate any complaints and inquiries made concerning
21this Act and any registrants or persons the Secretary believes
22may be required to register under this Act. Each registrant or
23person the Secretary believes may be required to register
24under this Act shall open the registrant's or person's books,
25records, documents, and offices wherever situated to the

 

 

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1Secretary as needed to facilitate the investigations.
 
2    Section 105. Additional investigation authority. In
3addition to any authority allowed under this Act, the
4Secretary may conduct investigations as follows:
5        (1) For purposes of initial registration, registration
6    renewal, registration suspension, registration
7    conditioning, registration probation, registration
8    revocation or termination, or general or specific inquiry
9    or investigation to determine compliance with this Act,
10    the Secretary may access, receive, and use any books,
11    accounts, records, files, documents, information, or
12    evidence, including, but not limited to, the following:
13            (A) criminal, civil, registration, and
14        administrative history information, including
15        nonconviction data as specified in the Criminal Code
16        of 2012; (B) personal history and experience
17        information, including independent credit reports
18        obtained from a consumer reporting agency described in
19        Section 603(p) of the federal Fair Credit Reporting
20        Act; and (C) any other documents, information, or
21        evidence the Secretary deems relevant to the inquiry
22        or investigation, regardless of the location,
23        possession, control, or custody of the documents,
24        information, or evidence.
25        (2) For the purposes of investigating violations or

 

 

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1    complaints arising under this Act, the Secretary may
2    review or investigate any registrant or person subject to
3    this Act as necessary in order to carry out the purposes of
4    this Act. The Secretary may direct, subpoena, or order the
5    attendance of, and examine under oath all persons and
6    order any person to produce records, files, and any other
7    documents the Secretary deems relevant to an inquiry.
8        (3) Each person subject to this Act shall make
9    available to the Secretary upon request the books and
10    records relating to the operations of the person subject
11    to this Act. The Secretary shall have access to those
12    books and records and may interview the owners, officers,
13    principals, employees, independent contractors, agents,
14    vendors, and customers of any registrant or person subject
15    to this Act.
16        (4) In making any investigation authorized by this
17    Act, the Secretary may control access to any documents and
18    records of the registrant or person under investigation.
19    The Secretary may take possession of the documents and
20    records or otherwise take constructive control of the
21    documents. During the period of control, no person shall
22    remove or alter any of the documents or records, except
23    pursuant to a court order or with the consent of the
24    Secretary. Unless the Secretary has reasonable grounds to
25    believe the documents or records of the registrant have
26    been or are at risk of being altered or destroyed for

 

 

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

 

 

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1        this Act and may incorporate the audit report in the
2        report of the investigation or other writing of the
3        Secretary.
4        (6) The authority of this Section shall remain in
5    effect, whether the person subject to this Act acts or
6    claims to act under any licensing or registration law of
7    this State or claims to act without the authority.
8        (7) No registrant or person subject to investigation
9    or under this Section may knowingly withhold, alter,
10    abstract, remove, mutilate, destroy, hide, or conceal any
11    books, records, computer records, or other information or
12    take actions designed to delay or complicate review of
13    records.
 
14    Section 110. Confidentiality. To promote more effective
15regulation, protect consumers and financing recipients, and
16reduce regulatory burden through inter-regulatory sharing of
17confidential supervisory information:
18        (1) The privacy or confidentiality of any information
19    or material provided to a multistate licensing system,
20    including all privileges arising under federal or state
21    court rules and law, shall continue to apply to the
22    information or material after the information or material
23    has been disclosed to the multistate licensing system.
24    Information and material may be shared with a multistate
25    licensing system, federal and state regulatory officials

 

 

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1    with relevant oversight authority, and law enforcement
2    without the loss of privilege or the loss of
3    confidentiality protections.
4        (2) The Secretary is authorized to enter into
5    agreements or sharing arrangements with other governmental
6    agencies, the Conference of State Bank Supervisors, and
7    other associations representing governmental agencies.
8        (3) Information or material that is privileged or
9    confidential under this Act as determined by the Secretary
10    is not subject to the following:
11            (A) disclosure under any State law governing the
12        disclosure to the public of information held by an
13        officer or an agency of the State; or
14            (B) subpoena, discovery, or admission into
15        evidence, in any private civil action or
16        administrative process except as authorized by the
17        Secretary.
18        (4) Any other law relating to the disclosure of
19    confidential supervisory information that is inconsistent
20    with this Act shall be superseded by the requirements of
21    this Section to the extent the other law provides less
22    confidentiality or a weaker privilege for information that
23    is privileged or confidential under this Act.
24        (5) Confidential or privileged information received
25    from a multistate licensing system, another licensing
26    body, federal and state regulatory officials, or law

 

 

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1    enforcement shall be protected to the same extent as the
2    Secretary's confidential and privileged information is
3    protected under this Act. The Secretary may also protect
4    from disclosure confidential or privileged information
5    that would be exempt from disclosure to the extent it is
6    held directly by the multistate licensing system, another
7    licensing body, federal and state regulatory officials, or
8    law enforcement.
 
9    Section 115. Appeal and review.
10    (a) The Secretary may, in accordance with the Illinois
11Administrative Procedure Act, adopt rules to provide for
12review within the Department of their decisions affecting the
13rights of persons under this Act. The review shall provide
14for, at a minimum:
15        (1) appointment of a hearing officer;
16        (2) appropriate procedural rules, specific deadlines
17    for filings, and standards of evidence and of proof; and
18        (3) provisions for apportioning costs among parties to
19    the appeal.
20    (b) All final agency determinations of appeals to
21decisions of the Secretary may be reviewed in accordance with
22and under the provisions of the Administrative Review Law.
23Appeals from all final orders and judgments entered by a court
24in review of any final administrative decision of the
25Secretary or of any final agency review of a decision of the

 

 

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1Secretary may be taken as in other civil cases.
 
2    Section 120. Registration fees.
3    (a) The fee for initial registration is $2,500. The fee is
4nonrefundable.
5    (b) The fee for annual application renewal is $2,500. The
6fee is nonrefundable.
7    (c) The Department shall impose a contingent fee
8sufficient to cover its operating expenses in administering
9this Act not otherwise covered by all other revenue collected
10under this Act. Each registrant shall pay to the Division its
11pro rata share, based on number or volume of transactions or
12revenue, of the cost for administration of this Act that
13exceeds other fees listed in this Section, as estimated by the
14Division, for the current year and any deficit actually
15incurred in the administration of this Act in prior years.
 
16    Section 125. Cease and desist order.
17    (a) The Secretary may issue a cease and desist order to any
18registrant or person doing business without the required
19registration when, in the opinion of the Secretary, the
20registrant or other person has violated, is violating, or is
21about to violate any provision of this Act or any rule adopted
22by the Department under this Act or any requirement imposed in
23writing by the Department as a condition of granting any
24authorization permitted by this Act. The cease and desist

 

 

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1order authorized by this Section may be issued prior to a
2hearing.
3    (b) The Secretary shall serve notice of the cease and
4desist order, either personally or by certified mail. Service
5by certified mail shall be deemed completed when the notice is
6deposited in the U.S. Mail. The Secretary's notice shall
7include a statement of the reasons for the action.
8    (c) Within 10 days after service of the cease and desist
9order, the person subject to the cease and desist order may
10request a hearing in writing. The Secretary shall schedule a
11preliminary hearing within 60 days after the request for a
12hearing unless the parties agree to a later date.
13    (d) If it is determined that the Secretary had the
14authority to issue the cease and desist order, the Secretary
15may issue the orders as may be reasonably necessary to
16correct, eliminate, deter, or remedy the conduct described in
17the order and resulting harms.
18    (e) The powers vested in the Secretary by this Section are
19additional to all other powers and remedies vested in the
20Secretary by any law. Nothing in this Section shall be
21construed as requiring that the Secretary shall employ the
22power conferred in this Section instead of or as a condition
23precedent to the exercise of any other power or remedy vested
24in the Secretary.
 
25    Section 130. Injunctions. The Secretary may maintain an

 

 

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1action in the name of the people of this State and may apply
2for an injunction in the circuit court to enjoin a person from
3violating this Act or its implementing rules through the
4Attorney General.
 
5    Section 135. Exemptions. This Act does not apply to, and
6does not place any additional requirements or obligations
7upon, any of the following:
8        (1) any person or entity that is not a provider;
9        (2) a commercial financing transaction secured by real
10    property;
11        (3) a lease as defined in Section 2-A-103 of the
12    Uniform Commercial Code, not including finance leases as
13    defined in paragraph (g) of subsection (1) of Section
14    2A-103 of the Uniform Commercial Code; or
15        (4) a company primarily in the business of
16    manufacturing equipment, or any subsidiary or affiliate of
17    such a company, when offering a commercial financing
18    transaction for which the majority of the proceeds are
19    used to finance nonfinancial products manufactured by the
20    company, or any subsidiary or affiliate of such a company,
21    or the maintenance of or other services on such products;
22        (5) any person or provider who makes no more than 5
23    commercial financing transactions in this State in a
24    12-month period;
25        (6) a single, discrete commercial financing

 

 

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1    transaction in an amount over $2,500,000; or
2        (7) a commercial financing transaction in which the
3    recipient is a vehicle dealer subject to Section 5-101 or
4    5-102 of the Illinois Vehicle Code, an affiliate of a
5    dealer, a rental vehicle company as defined in Section 10
6    of the Renter's Financial Responsibility and Protection
7    Act, or an affiliate of a company under a commercial
8    financing agreement or commercial open-end credit plan of
9    at least $50,000, including any commercial loan made under
10    a commercial financing transaction.
 
11    Section 140. Complaint disclosure. All commercial
12financing shall include a clear and conspicuous notice on how
13to file a complaint with the Department.
 
14    Section 145. Rules. The Secretary may adopt rules to enact
15and enforce this Act, including, but not limited to:
16        (1) rules defining the terms used in this Act and as
17    may be necessary and appropriate to interpret and
18    implement the provisions of this Act;
19        (2) rules for the enforcement and administration of
20    this Act;
21        (3) rules for the protection of consumers and
22    recipients in this State;
23        (4) rules defining improper or fraudulent business
24    practices in connection with commercial financing; and

 

 

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1        (5) rules to implement Section 165.
 
2    Section 150. Violations.
3    (a) Nothing in this Act shall be construed to restrict the
4exercise of powers or the performance of the duties that the
5Attorney General is authorized to exercise or perform by law.
6    (b) Any violation of this Act constitutes an unlawful
7practice in violation of the Consumer Fraud and Deceptive
8Business Practices Act. The Attorney General may enforce a
9violation of this Act as an unlawful practice under the
10Consumer Fraud and Deceptive Business Practices Act.
 
11    Section 155. Beginning of registration. No person shall be
12required to register under this Act before the date
13established by the Department by rule. The date shall not be
14before January 1, 2025.
 
15    Section 160. Beginning of disclosure requirements. No
16person shall be required to comply with the disclosure
17requirements set forth in Sections 45, 50, 55, 60, 65, 70, and
18165 before the date established by the Department by rule. The
19date shall not be before January 1, 2025.
 
20    Section 165. Commercial financing database.
21    (a) A commercial financing database program is established
22within the Department. The program shall be administered in

 

 

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1accordance with this Section. None of the duties, obligations,
2contingencies, or consequences of or from the program shall be
3imposed until 6 months after the Department certifies a
4commercial financing database under subsection (b). The
5program shall apply to all sales-based financings and
6commercial closed-end financings for which interest charges
7that accrue on the outstanding balance represent a minority of
8the finance charge that are governed by this Act and that are
9made or taken on or after the inception of the program.
10    (b) The Department shall certify that a commercial
11financing database is a commercially reasonable method of
12reporting. Upon certifying that a commercial financing
13database is a commercially reasonable method of reporting, the
14Department shall:
15        (1) provide reasonable notice to all registrants
16    identifying the commercially reasonable method of
17    reporting that is available; and
18        (2) no earlier than 6 months after certification,
19    require each registrant offering sales-based financing or
20    commercial closed-end financings for which interest
21    charges that accrue on the outstanding balance represent a
22    minority of the finance charge to use a commercially
23    reasonable method of reporting as a means of complying
24    with subsection (d) of this Section.
25    (c) The database created under this program shall be
26maintained and administered by the Department. The database

 

 

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1shall be designed to allow providers to submit information to
2the database online. The database shall not be designed to
3allow providers to retrieve information from the database,
4except as otherwise provided in this Act.
5    (d) Within 30 days after providing funds to a recipient,
6the provider shall submit to the commercial financing database
7the information delineated in subsections (e) and (f). If at
8the time funds are provided to a recipient, certain
9information delineated in this subsection is not known, then
10the provider shall submit the information to the commercial
11financing database within 30 days after the information
12becoming ascertainable.
13    (e) For sales-based financings, the provider shall submit
14the following information to the commercial financing
15database:
16        (1) the FEIN for the recipient;
17        (2) the zip code of the recipient;
18        (3) the date on which the disclosure required under
19    Section 45 was provided;
20        (4) the origination date of the sales-based financing;
21        (5) the total amount of commercial financing;
22        (6) the disbursed amount after any amount deducted or
23    withheld at disbursement, if different than the financing
24    amount;
25        (7) the finance charge;
26        (8) the estimated annual percentage rate as disclosed

 

 

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1    to the recipient under paragraph (3) of Section 45;
2        (9) the total repayment amount;
3        (10) the estimated term, as disclosed to the recipient
4    under paragraph (5) of Section 45;
5        (11) the percentage of the recipient's sales upon
6    which the payment is calculated;
7        (12) the frequency of payment, and the total amount of
8    average projected payments per month, as disclosed to the
9    recipient under paragraph (6) of Section 45;
10        (13) whether the projected sales volume used to
11    determine the estimated annual percentage rate, estimated
12    term, and projected payments provided in the disclosure
13    under Section 45 were determined according to the
14    historical method described in subparagraph (A) of
15    paragraph (3) of Section 45 or according to the
16    underwriting method described in subparagraph (B) of
17    paragraph (3) of Section 45;
18        (14) the amount of any finance charge the recipient
19    would be required to pay if the recipient elects to pay off
20    or refinance the sales-based financing before full
21    repayment, as disclosed to the recipient;
22        (15) description of collateral, if any, securing the
23    sales-based financing, including any guarantee;
24        (16) the position of any lien taken;
25        (17) upon full repayment, if the sales-based financing
26    includes a true-up mechanism, the number of true-ups

 

 

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1    provided;
2        (18) upon full repayment, the actual term of the
3    commercial financing;
4        (19) upon full repayment, the actual annual percentage
5    rate calculated retrospectively based on the actual
6    payments collected; and
7        (20) all other information requested by the
8    Department.
9    (f) For closed-end financing for which interest charges
10that accrue on the outstanding balance represent a minority of
11the finance charge submit, the following information to the
12commercial financing database:
13        (1) the FEIN for the recipient;
14        (2) the zip code of the recipient;
15        (3) the date on which the disclosure required under
16    Section 50 was provided;
17        (4) the origination date;
18        (5) the total amount of commercial financing;
19        (6) the disbursed amount after any amount deducted or
20    withheld at disbursement, if different than the financing
21    amount;
22        (7) the finance charge;
23        (8) the annual percentage rate as disclosed to the
24    recipient under paragraph (3) of Section 50;
25        (9) the total repayment amount;
26        (10) the term of the financing;

 

 

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1        (11) the frequency of payment;
2        (12) the amount of the payment, and the total amount
3    of average projected payments per month, as disclosed to
4    the recipient under paragraph (6) of Section 50;
5        (13) the amount of any finance charge the recipient
6    would be required to pay if the recipient elects to pay off
7    or refinance the commercial financing before full
8    repayment, other than interest accrued since the last
9    payment, as disclosed to the recipient;
10        (14) whether the recipient would be required to pay
11    any additional fees not already included in the finance
12    charge if the recipient elects to pay off or refinance the
13    commercial financing before full repayment, as disclosed
14    to the recipient;
15        (15) description of collateral, if any, securing the
16    commercial financing, including any guarantee;
17        (16) the position of any lien taken; and
18        (17) all other information requested by the
19    Department.
20    (g) All personally identifiable information and
21information identifying the identity of a recipient obtained
22by way of the commercial financing database is strictly
23confidential and shall be exempt from disclosure under the
24Freedom of Information Act and any other law or regulation
25pertaining to the disclosure of information or documents. The
26Department may, by rule, identify any additional categories of

 

 

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1information the disclosure of which would be contrary to the
2public interest. Any request for production of information
3from the commercial financing database, whether by subpoena,
4notice, or any other source, shall be referred to the
5Department. Any recipient may authorize in writing the release
6of database information. The Department may use the
7information in the database without the consent of the
8recipient or the registrant:
9        (1) for the purposes of administering and enforcing
10    the program;
11        (2) to prepare industry-level reports;
12        (3) to provide information to the appropriate law
13    enforcement agency or the applicable administrative or
14    regulatory agency with a legitimate interest in the
15    information as determined by the Secretary;
16        (4) as required to comply with applicable law; or
17        (5) in any other manner that the Secretary deems is
18    not contrary to the public interest.
19    (h) A registrant who submits information to a certified
20database provider in accordance with this Section shall not be
21liable to any person for any subsequent release or disclosure
22of that information by the certified database provider, the
23Department, or any other person acquiring possession of the
24information, regardless of whether the subsequent release or
25disclosure was lawful, authorized, or intentional.
26    (i) In certifying a commercially reasonable method of

 

 

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1reporting, the Department shall ensure that the commercial
2financing database:
3        (1) provides real-time access through an Internet
4    connection;
5        (2) is accessible to the Department and to registrants
6    in order to ensure compliance with this Act and in order to
7    provide any other information that the Department deems
8    necessary;
9        (3) requires registrants to input whatever information
10    is required by the Department;
11        (4) maintains a real-time copy of the required
12    reporting information that is available to the Department
13    at all times and is the property of the Department; and
14        (5) contains safeguards to ensure that all information
15    contained in the database regarding consumers and
16    financing recipients is kept strictly confidential.
17    (j) The certified commercial financing database may charge
18a fee to a registrant not to exceed $1 for each financing
19entered into the database. The certified commercial financing
20database shall not charge any additional fees or charges.
21    (k) The certified commercial financing database provider
22shall produce an annual report for the Department using the
23data submitted by registrants to the database. The Department
24may publish this report to the public.
 
25    Section 170. Severability. The provisions of this Act are

 

 

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1severable under Section 1.31 of the Statute on Statutes.
 
2    Section 900. The Freedom of Information Act is amended by
3changing Section 7.5 as follows:
 
4    (5 ILCS 140/7.5)
5    (Text of Section before amendment by P.A. 103-472)
6    Sec. 7.5. Statutory exemptions. To the extent provided for
7by the statutes referenced below, the following shall be
8exempt from inspection and copying:
9        (a) All information determined to be confidential
10    under Section 4002 of the Technology Advancement and
11    Development Act.
12        (b) Library circulation and order records identifying
13    library users with specific materials under the Library
14    Records Confidentiality Act.
15        (c) Applications, related documents, and medical
16    records received by the Experimental Organ Transplantation
17    Procedures Board and any and all documents or other
18    records prepared by the Experimental Organ Transplantation
19    Procedures Board or its staff relating to applications it
20    has received.
21        (d) Information and records held by the Department of
22    Public Health and its authorized representatives relating
23    to known or suspected cases of sexually transmissible
24    disease or any information the disclosure of which is

 

 

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1    restricted under the Illinois Sexually Transmissible
2    Disease Control Act.
3        (e) Information the disclosure of which is exempted
4    under Section 30 of the Radon Industry Licensing Act.
5        (f) Firm performance evaluations under Section 55 of
6    the Architectural, Engineering, and Land Surveying
7    Qualifications Based Selection Act.
8        (g) Information the disclosure of which is restricted
9    and exempted under Section 50 of the Illinois Prepaid
10    Tuition Act.
11        (h) Information the disclosure of which is exempted
12    under the State Officials and Employees Ethics Act, and
13    records of any lawfully created State or local inspector
14    general's office that would be exempt if created or
15    obtained by an Executive Inspector General's office under
16    that Act.
17        (i) Information contained in a local emergency energy
18    plan submitted to a municipality in accordance with a
19    local emergency energy plan ordinance that is adopted
20    under Section 11-21.5-5 of the Illinois Municipal Code.
21        (j) Information and data concerning the distribution
22    of surcharge moneys collected and remitted by carriers
23    under the Emergency Telephone System Act.
24        (k) Law enforcement officer identification information
25    or driver identification information compiled by a law
26    enforcement agency or the Department of Transportation

 

 

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1    under Section 11-212 of the Illinois Vehicle Code.
2        (l) Records and information provided to a residential
3    health care facility resident sexual assault and death
4    review team or the Executive Council under the Abuse
5    Prevention Review Team Act.
6        (m) Information provided to the predatory lending
7    database created pursuant to Article 3 of the Residential
8    Real Property Disclosure Act, except to the extent
9    authorized under that Article.
10        (n) Defense budgets and petitions for certification of
11    compensation and expenses for court appointed trial
12    counsel as provided under Sections 10 and 15 of the
13    Capital Crimes Litigation Act (repealed). This subsection
14    (n) shall apply until the conclusion of the trial of the
15    case, even if the prosecution chooses not to pursue the
16    death penalty prior to trial or sentencing.
17        (o) Information that is prohibited from being
18    disclosed under Section 4 of the Illinois Health and
19    Hazardous Substances Registry Act.
20        (p) Security portions of system safety program plans,
21    investigation reports, surveys, schedules, lists, data, or
22    information compiled, collected, or prepared by or for the
23    Department of Transportation under Sections 2705-300 and
24    2705-616 of the Department of Transportation Law of the
25    Civil Administrative Code of Illinois, the Regional
26    Transportation Authority under Section 2.11 of the

 

 

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1    Regional Transportation Authority Act, or the St. Clair
2    County Transit District under the Bi-State Transit Safety
3    Act (repealed).
4        (q) Information prohibited from being disclosed by the
5    Personnel Record Review Act.
6        (r) Information prohibited from being disclosed by the
7    Illinois School Student Records Act.
8        (s) Information the disclosure of which is restricted
9    under Section 5-108 of the Public Utilities Act.
10        (t) (Blank).
11        (u) Records and information provided to an independent
12    team of experts under the Developmental Disability and
13    Mental Health Safety Act (also known as Brian's Law).
14        (v) Names and information of people who have applied
15    for or received Firearm Owner's Identification Cards under
16    the Firearm Owners Identification Card Act or applied for
17    or received a concealed carry license under the Firearm
18    Concealed Carry Act, unless otherwise authorized by the
19    Firearm Concealed Carry Act; and databases under the
20    Firearm Concealed Carry Act, records of the Concealed
21    Carry Licensing Review Board under the Firearm Concealed
22    Carry Act, and law enforcement agency objections under the
23    Firearm Concealed Carry Act.
24        (v-5) Records of the Firearm Owner's Identification
25    Card Review Board that are exempted from disclosure under
26    Section 10 of the Firearm Owners Identification Card Act.

 

 

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1        (w) Personally identifiable information which is
2    exempted from disclosure under subsection (g) of Section
3    19.1 of the Toll Highway Act.
4        (x) Information which is exempted from disclosure
5    under Section 5-1014.3 of the Counties Code or Section
6    8-11-21 of the Illinois Municipal Code.
7        (y) Confidential information under the Adult
8    Protective Services Act and its predecessor enabling
9    statute, the Elder Abuse and Neglect Act, including
10    information about the identity and administrative finding
11    against any caregiver of a verified and substantiated
12    decision of abuse, neglect, or financial exploitation of
13    an eligible adult maintained in the Registry established
14    under Section 7.5 of the Adult Protective Services Act.
15        (z) Records and information provided to a fatality
16    review team or the Illinois Fatality Review Team Advisory
17    Council under Section 15 of the Adult Protective Services
18    Act.
19        (aa) Information which is exempted from disclosure
20    under Section 2.37 of the Wildlife Code.
21        (bb) Information which is or was prohibited from
22    disclosure by the Juvenile Court Act of 1987.
23        (cc) Recordings made under the Law Enforcement
24    Officer-Worn Body Camera Act, except to the extent
25    authorized under that Act.
26        (dd) Information that is prohibited from being

 

 

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1    disclosed under Section 45 of the Condominium and Common
2    Interest Community Ombudsperson Act.
3        (ee) Information that is exempted from disclosure
4    under Section 30.1 of the Pharmacy Practice Act.
5        (ff) Information that is exempted from disclosure
6    under the Revised Uniform Unclaimed Property Act.
7        (gg) Information that is prohibited from being
8    disclosed under Section 7-603.5 of the Illinois Vehicle
9    Code.
10        (hh) Records that are exempt from disclosure under
11    Section 1A-16.7 of the Election Code.
12        (ii) Information which is exempted from disclosure
13    under Section 2505-800 of the Department of Revenue Law of
14    the Civil Administrative Code of Illinois.
15        (jj) Information and reports that are required to be
16    submitted to the Department of Labor by registering day
17    and temporary labor service agencies but are exempt from
18    disclosure under subsection (a-1) of Section 45 of the Day
19    and Temporary Labor Services Act.
20        (kk) Information prohibited from disclosure under the
21    Seizure and Forfeiture Reporting Act.
22        (ll) Information the disclosure of which is restricted
23    and exempted under Section 5-30.8 of the Illinois Public
24    Aid Code.
25        (mm) Records that are exempt from disclosure under
26    Section 4.2 of the Crime Victims Compensation Act.

 

 

10300SB2234sam003- 63 -LRB103 28770 RTM 71808 a

1        (nn) Information that is exempt from disclosure under
2    Section 70 of the Higher Education Student Assistance Act.
3        (oo) Communications, notes, records, and reports
4    arising out of a peer support counseling session
5    prohibited from disclosure under the First Responders
6    Suicide Prevention Act.
7        (pp) Names and all identifying information relating to
8    an employee of an emergency services provider or law
9    enforcement agency under the First Responders Suicide
10    Prevention Act.
11        (qq) Information and records held by the Department of
12    Public Health and its authorized representatives collected
13    under the Reproductive Health Act.
14        (rr) Information that is exempt from disclosure under
15    the Cannabis Regulation and Tax Act.
16        (ss) Data reported by an employer to the Department of
17    Human Rights pursuant to Section 2-108 of the Illinois
18    Human Rights Act.
19        (tt) Recordings made under the Children's Advocacy
20    Center Act, except to the extent authorized under that
21    Act.
22        (uu) Information that is exempt from disclosure under
23    Section 50 of the Sexual Assault Evidence Submission Act.
24        (vv) Information that is exempt from disclosure under
25    subsections (f) and (j) of Section 5-36 of the Illinois
26    Public Aid Code.

 

 

10300SB2234sam003- 64 -LRB103 28770 RTM 71808 a

1        (ww) Information that is exempt from disclosure under
2    Section 16.8 of the State Treasurer Act.
3        (xx) Information that is exempt from disclosure or
4    information that shall not be made public under the
5    Illinois Insurance Code.
6        (yy) Information prohibited from being disclosed under
7    the Illinois Educational Labor Relations Act.
8        (zz) Information prohibited from being disclosed under
9    the Illinois Public Labor Relations Act.
10        (aaa) Information prohibited from being disclosed
11    under Section 1-167 of the Illinois Pension Code.
12        (bbb) Information that is prohibited from disclosure
13    by the Illinois Police Training Act and the Illinois State
14    Police Act.
15        (ccc) Records exempt from disclosure under Section
16    2605-304 of the Illinois State Police Law of the Civil
17    Administrative Code of Illinois.
18        (ddd) Information prohibited from being disclosed
19    under Section 35 of the Address Confidentiality for
20    Victims of Domestic Violence, Sexual Assault, Human
21    Trafficking, or Stalking Act.
22        (eee) Information prohibited from being disclosed
23    under subsection (b) of Section 75 of the Domestic
24    Violence Fatality Review Act.
25        (fff) Images from cameras under the Expressway Camera
26    Act. This subsection (fff) is inoperative on and after

 

 

10300SB2234sam003- 65 -LRB103 28770 RTM 71808 a

1    July 1, 2025.
2        (ggg) Information prohibited from disclosure under
3    paragraph (3) of subsection (a) of Section 14 of the Nurse
4    Agency Licensing Act.
5        (hhh) Information submitted to the Illinois State
6    Police in an affidavit or application for an assault
7    weapon endorsement, assault weapon attachment endorsement,
8    .50 caliber rifle endorsement, or .50 caliber cartridge
9    endorsement under the Firearm Owners Identification Card
10    Act.
11        (iii) Data exempt from disclosure under Section 50 of
12    the School Safety Drill Act.
13        (jjj) (hhh) Information exempt from disclosure under
14    Section 30 of the Insurance Data Security Law.
15        (kkk) (iii) Confidential business information
16    prohibited from disclosure under Section 45 of the Paint
17    Stewardship Act.
18        (lll) (Reserved).
19        (mmm) (iii) Information prohibited from being
20    disclosed under subsection (e) of Section 1-129 of the
21    Illinois Power Agency Act.
22        (nnn) Information exempt from disclosure under Section
23    165 of the Small Business Financing Transparency Act.
24(Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22;
25102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.
268-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;

 

 

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1102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.
26-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,
3eff. 1-1-24; 103-508, eff. 8-4-23; 103-580, eff. 12-8-23;
4revised 1-2-24.)
 
5    (Text of Section after amendment by P.A. 103-472)
6    Sec. 7.5. Statutory exemptions. To the extent provided for
7by the statutes referenced below, the following shall be
8exempt from inspection and copying:
9        (a) All information determined to be confidential
10    under Section 4002 of the Technology Advancement and
11    Development Act.
12        (b) Library circulation and order records identifying
13    library users with specific materials under the Library
14    Records Confidentiality Act.
15        (c) Applications, related documents, and medical
16    records received by the Experimental Organ Transplantation
17    Procedures Board and any and all documents or other
18    records prepared by the Experimental Organ Transplantation
19    Procedures Board or its staff relating to applications it
20    has received.
21        (d) Information and records held by the Department of
22    Public Health and its authorized representatives relating
23    to known or suspected cases of sexually transmissible
24    disease or any information the disclosure of which is
25    restricted under the Illinois Sexually Transmissible

 

 

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1    Disease Control Act.
2        (e) Information the disclosure of which is exempted
3    under Section 30 of the Radon Industry Licensing Act.
4        (f) Firm performance evaluations under Section 55 of
5    the Architectural, Engineering, and Land Surveying
6    Qualifications Based Selection Act.
7        (g) Information the disclosure of which is restricted
8    and exempted under Section 50 of the Illinois Prepaid
9    Tuition Act.
10        (h) Information the disclosure of which is exempted
11    under the State Officials and Employees Ethics Act, and
12    records of any lawfully created State or local inspector
13    general's office that would be exempt if created or
14    obtained by an Executive Inspector General's office under
15    that Act.
16        (i) Information contained in a local emergency energy
17    plan submitted to a municipality in accordance with a
18    local emergency energy plan ordinance that is adopted
19    under Section 11-21.5-5 of the Illinois Municipal Code.
20        (j) Information and data concerning the distribution
21    of surcharge moneys collected and remitted by carriers
22    under the Emergency Telephone System Act.
23        (k) Law enforcement officer identification information
24    or driver identification information compiled by a law
25    enforcement agency or the Department of Transportation
26    under Section 11-212 of the Illinois Vehicle Code.

 

 

10300SB2234sam003- 68 -LRB103 28770 RTM 71808 a

1        (l) Records and information provided to a residential
2    health care facility resident sexual assault and death
3    review team or the Executive Council under the Abuse
4    Prevention Review Team Act.
5        (m) Information provided to the predatory lending
6    database created pursuant to Article 3 of the Residential
7    Real Property Disclosure Act, except to the extent
8    authorized under that Article.
9        (n) Defense budgets and petitions for certification of
10    compensation and expenses for court appointed trial
11    counsel as provided under Sections 10 and 15 of the
12    Capital Crimes Litigation Act (repealed). This subsection
13    (n) shall apply until the conclusion of the trial of the
14    case, even if the prosecution chooses not to pursue the
15    death penalty prior to trial or sentencing.
16        (o) Information that is prohibited from being
17    disclosed under Section 4 of the Illinois Health and
18    Hazardous Substances Registry Act.
19        (p) Security portions of system safety program plans,
20    investigation reports, surveys, schedules, lists, data, or
21    information compiled, collected, or prepared by or for the
22    Department of Transportation under Sections 2705-300 and
23    2705-616 of the Department of Transportation Law of the
24    Civil Administrative Code of Illinois, the Regional
25    Transportation Authority under Section 2.11 of the
26    Regional Transportation Authority Act, or the St. Clair

 

 

10300SB2234sam003- 69 -LRB103 28770 RTM 71808 a

1    County Transit District under the Bi-State Transit Safety
2    Act (repealed).
3        (q) Information prohibited from being disclosed by the
4    Personnel Record Review Act.
5        (r) Information prohibited from being disclosed by the
6    Illinois School Student Records Act.
7        (s) Information the disclosure of which is restricted
8    under Section 5-108 of the Public Utilities Act.
9        (t) (Blank).
10        (u) Records and information provided to an independent
11    team of experts under the Developmental Disability and
12    Mental Health Safety Act (also known as Brian's Law).
13        (v) Names and information of people who have applied
14    for or received Firearm Owner's Identification Cards under
15    the Firearm Owners Identification Card Act or applied for
16    or received a concealed carry license under the Firearm
17    Concealed Carry Act, unless otherwise authorized by the
18    Firearm Concealed Carry Act; and databases under the
19    Firearm Concealed Carry Act, records of the Concealed
20    Carry Licensing Review Board under the Firearm Concealed
21    Carry Act, and law enforcement agency objections under the
22    Firearm Concealed Carry Act.
23        (v-5) Records of the Firearm Owner's Identification
24    Card Review Board that are exempted from disclosure under
25    Section 10 of the Firearm Owners Identification Card Act.
26        (w) Personally identifiable information which is

 

 

10300SB2234sam003- 70 -LRB103 28770 RTM 71808 a

1    exempted from disclosure under subsection (g) of Section
2    19.1 of the Toll Highway Act.
3        (x) Information which is exempted from disclosure
4    under Section 5-1014.3 of the Counties Code or Section
5    8-11-21 of the Illinois Municipal Code.
6        (y) Confidential information under the Adult
7    Protective Services Act and its predecessor enabling
8    statute, the Elder Abuse and Neglect Act, including
9    information about the identity and administrative finding
10    against any caregiver of a verified and substantiated
11    decision of abuse, neglect, or financial exploitation of
12    an eligible adult maintained in the Registry established
13    under Section 7.5 of the Adult Protective Services Act.
14        (z) Records and information provided to a fatality
15    review team or the Illinois Fatality Review Team Advisory
16    Council under Section 15 of the Adult Protective Services
17    Act.
18        (aa) Information which is exempted from disclosure
19    under Section 2.37 of the Wildlife Code.
20        (bb) Information which is or was prohibited from
21    disclosure by the Juvenile Court Act of 1987.
22        (cc) Recordings made under the Law Enforcement
23    Officer-Worn Body Camera Act, except to the extent
24    authorized under that Act.
25        (dd) Information that is prohibited from being
26    disclosed under Section 45 of the Condominium and Common

 

 

10300SB2234sam003- 71 -LRB103 28770 RTM 71808 a

1    Interest Community Ombudsperson Act.
2        (ee) Information that is exempted from disclosure
3    under Section 30.1 of the Pharmacy Practice Act.
4        (ff) Information that is exempted from disclosure
5    under the Revised Uniform Unclaimed Property Act.
6        (gg) Information that is prohibited from being
7    disclosed under Section 7-603.5 of the Illinois Vehicle
8    Code.
9        (hh) Records that are exempt from disclosure under
10    Section 1A-16.7 of the Election Code.
11        (ii) Information which is exempted from disclosure
12    under Section 2505-800 of the Department of Revenue Law of
13    the Civil Administrative Code of Illinois.
14        (jj) Information and reports that are required to be
15    submitted to the Department of Labor by registering day
16    and temporary labor service agencies but are exempt from
17    disclosure under subsection (a-1) of Section 45 of the Day
18    and Temporary Labor Services Act.
19        (kk) Information prohibited from disclosure under the
20    Seizure and Forfeiture Reporting Act.
21        (ll) Information the disclosure of which is restricted
22    and exempted under Section 5-30.8 of the Illinois Public
23    Aid Code.
24        (mm) Records that are exempt from disclosure under
25    Section 4.2 of the Crime Victims Compensation Act.
26        (nn) Information that is exempt from disclosure under

 

 

10300SB2234sam003- 72 -LRB103 28770 RTM 71808 a

1    Section 70 of the Higher Education Student Assistance Act.
2        (oo) Communications, notes, records, and reports
3    arising out of a peer support counseling session
4    prohibited from disclosure under the First Responders
5    Suicide Prevention Act.
6        (pp) Names and all identifying information relating to
7    an employee of an emergency services provider or law
8    enforcement agency under the First Responders Suicide
9    Prevention Act.
10        (qq) Information and records held by the Department of
11    Public Health and its authorized representatives collected
12    under the Reproductive Health Act.
13        (rr) Information that is exempt from disclosure under
14    the Cannabis Regulation and Tax Act.
15        (ss) Data reported by an employer to the Department of
16    Human Rights pursuant to Section 2-108 of the Illinois
17    Human Rights Act.
18        (tt) Recordings made under the Children's Advocacy
19    Center Act, except to the extent authorized under that
20    Act.
21        (uu) Information that is exempt from disclosure under
22    Section 50 of the Sexual Assault Evidence Submission Act.
23        (vv) Information that is exempt from disclosure under
24    subsections (f) and (j) of Section 5-36 of the Illinois
25    Public Aid Code.
26        (ww) Information that is exempt from disclosure under

 

 

10300SB2234sam003- 73 -LRB103 28770 RTM 71808 a

1    Section 16.8 of the State Treasurer Act.
2        (xx) Information that is exempt from disclosure or
3    information that shall not be made public under the
4    Illinois Insurance Code.
5        (yy) Information prohibited from being disclosed under
6    the Illinois Educational Labor Relations Act.
7        (zz) Information prohibited from being disclosed under
8    the Illinois Public Labor Relations Act.
9        (aaa) Information prohibited from being disclosed
10    under Section 1-167 of the Illinois Pension Code.
11        (bbb) Information that is prohibited from disclosure
12    by the Illinois Police Training Act and the Illinois State
13    Police Act.
14        (ccc) Records exempt from disclosure under Section
15    2605-304 of the Illinois State Police Law of the Civil
16    Administrative Code of Illinois.
17        (ddd) Information prohibited from being disclosed
18    under Section 35 of the Address Confidentiality for
19    Victims of Domestic Violence, Sexual Assault, Human
20    Trafficking, or Stalking Act.
21        (eee) Information prohibited from being disclosed
22    under subsection (b) of Section 75 of the Domestic
23    Violence Fatality Review Act.
24        (fff) Images from cameras under the Expressway Camera
25    Act. This subsection (fff) is inoperative on and after
26    July 1, 2025.

 

 

10300SB2234sam003- 74 -LRB103 28770 RTM 71808 a

1        (ggg) Information prohibited from disclosure under
2    paragraph (3) of subsection (a) of Section 14 of the Nurse
3    Agency Licensing Act.
4        (hhh) Information submitted to the Illinois State
5    Police in an affidavit or application for an assault
6    weapon endorsement, assault weapon attachment endorsement,
7    .50 caliber rifle endorsement, or .50 caliber cartridge
8    endorsement under the Firearm Owners Identification Card
9    Act.
10        (iii) Data exempt from disclosure under Section 50 of
11    the School Safety Drill Act.
12        (jjj) (hhh) Information exempt from disclosure under
13    Section 30 of the Insurance Data Security Law.
14        (kkk) (iii) Confidential business information
15    prohibited from disclosure under Section 45 of the Paint
16    Stewardship Act.
17        (lll) (iii) Data exempt from disclosure under Section
18    2-3.196 of the School Code.
19        (mmm) (iii) Information prohibited from being
20    disclosed under subsection (e) of Section 1-129 of the
21    Illinois Power Agency Act.
22        (nnn) Information exempt from disclosure under Section
23    165 of the Small Business Financing Transparency Act.
24(Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22;
25102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.
268-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;

 

 

10300SB2234sam003- 75 -LRB103 28770 RTM 71808 a

1102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.
26-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,
3eff. 1-1-24; 103-472, eff. 8-1-24; 103-508, eff. 8-4-23;
4103-580, eff. 12-8-23; revised 1-2-24.)
 
5    Section 905. The Consumer Fraud and Deceptive Business
6Practices Act is amended by adding Section 2EEEE as follows:
 
7    (815 ILCS 505/2EEEE new)
8    Sec. 2EEEE. Violations of the Small Business Financing
9Transparency Act. Any person who violates the Small Business
10Financing Transparency Act commits an unlawful practice within
11the meaning of this Act.
 
12    Section 995. No acceleration or delay. Where this Act
13makes changes in a statute that is represented in this Act by
14text that is not yet or no longer in effect (for example, a
15Section represented by multiple versions), the use of that
16text does not accelerate or delay the taking effect of (i) the
17changes made by this Act or (ii) provisions derived from any
18other Public Act.
 
19    Section 999. Effective date. This Act takes effect upon
20becoming law.".