Full Text of HB1323 98th General Assembly
HB1323ham001 98TH GENERAL ASSEMBLY | Rep. Maria Antonia Berrios Filed: 4/12/2013
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| 1 | | AMENDMENT TO HOUSE BILL 1323
| 2 | | AMENDMENT NO. ______. Amend House Bill 1323 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Payday Loan Reform Act is amended by | 5 | | changing Section 4-10 as follows: | 6 | | (815 ILCS 122/4-10)
| 7 | | Sec. 4-10. Enforcement and remedies. | 8 | | (a) The remedies provided in this Act are cumulative and | 9 | | apply to persons
or entities subject to this Act.
| 10 | | (b) Any material violation of this Act, including the | 11 | | commission of an act prohibited under Section 4-5, constitutes | 12 | | a violation of the Consumer Fraud
and Deceptive Business | 13 | | Practices Act.
| 14 | | (c) If any provision of the written agreement described in | 15 | | subsection (b) of
Section 2-20 violates this Act, then that | 16 | | provision is unenforceable against the consumer. |
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| 1 | | (d) Subject to the Illinois Administrative Procedure Act, | 2 | | the Secretary may hold hearings, make findings of fact, | 3 | | conclusions of law, issue cease
and desist orders, have the | 4 | | power to issue fines of up to $10,000 per violation, refer the | 5 | | matter to the appropriate law enforcement agency
for | 6 | | prosecution under this Act, and suspend or revoke a license | 7 | | granted
under this Act. All proceedings shall be open to the | 8 | | public. | 9 | | (e) The Secretary may issue a cease and desist order to any | 10 | | licensee or other person doing business without the required | 11 | | license, when in the opinion of the Secretary the licensee or | 12 | | other person is violating or is about to violate any provision | 13 | | of this Act or any rule or requirement imposed in writing by | 14 | | the Department as a condition of granting any authorization | 15 | | permitted by this Act. The cease and desist order permitted by | 16 | | this subsection (e) may be issued prior to a hearing. | 17 | | The Secretary shall serve notice of his or her action, | 18 | | including, but not limited to, a statement of the reasons for | 19 | | the action, either personally or by certified mail, return | 20 | | receipt requested. Service by certified mail shall be deemed | 21 | | completed when the notice is deposited in the U.S. Mail. | 22 | | Within 10 days of service of the cease and desist order, | 23 | | the licensee or other person may request a hearing in writing.
| 24 | | The Secretary shall schedule a hearing within 30 days after the | 25 | | request for a hearing unless otherwise agreed to by the | 26 | | parties. |
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| 1 | | If it is determined that the Secretary had the authority to | 2 | | issue the cease and desist order, he or she may issue such | 3 | | orders as may be reasonably necessary to correct, eliminate, or | 4 | | remedy the conduct. | 5 | | The powers vested in the Secretary by this subsection (e) | 6 | | are additional to any and all other powers and remedies vested | 7 | | in the Secretary by law, and nothing in this subsection (e) | 8 | | shall be construed as requiring that the Secretary shall employ | 9 | | the power conferred in this subsection instead of or as a | 10 | | condition precedent to the exercise of any other power or | 11 | | remedy vested in the Secretary. | 12 | | (f) The Secretary may, after 10 days notice by registered | 13 | | mail to the licensee at the address set forth in the license | 14 | | stating the contemplated action and in general the grounds | 15 | | therefore, fine the licensee an amount not exceeding $10,000 | 16 | | per violation, or revoke or suspend any license issued | 17 | | hereunder if he or she finds that: | 18 | | (1) the licensee has failed to comply with any | 19 | | provision of this Act or any order, decision, finding, | 20 | | rule, regulation, or direction of the Secretary lawfully | 21 | | made pursuant to the authority of this Act; or | 22 | | (2) any fact or condition exists which, if it had | 23 | | existed at the time of the original application for the | 24 | | license, clearly would have warranted the Secretary in | 25 | | refusing to issue the license. | 26 | | The Secretary may fine, suspend, or revoke only the |
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| 1 | | particular license with respect to which grounds for the fine, | 2 | | revocation, or suspension occur or exist, but if the Secretary | 3 | | finds that grounds for revocation are of general application to | 4 | | all offices or to more than one office of the licensee, the | 5 | | Secretary shall fine, suspend, or revoke every license to which | 6 | | the grounds apply. | 7 | | The Department shall establish by rule and publish a | 8 | | schedule of fines that are reasonably tailored to ensure | 9 | | compliance with the provisions of this Act and which include | 10 | | remedial measures intended to improve licensee compliance. | 11 | | Such rules shall set forth the standards and procedures to be | 12 | | used in imposing any such fines and remedies. | 13 | | No revocation, suspension, or surrender of any license | 14 | | shall impair or affect the obligation of any pre-existing | 15 | | lawful contract between the licensee and any obligor. | 16 | | The Secretary may issue a new license to a licensee whose | 17 | | license has been revoked when facts or conditions which clearly | 18 | | would have warranted the Secretary in refusing originally to | 19 | | issue the license no longer exist. | 20 | | In every case in which a license is suspended or revoked or | 21 | | an application for a license or renewal of a license is denied, | 22 | | the Secretary shall serve the licensee with notice of his or | 23 | | her action, including a statement of the reasons for his or her | 24 | | actions, either personally, or by certified mail, return | 25 | | receipt requested. Service by certified mail shall be deemed | 26 | | completed when the notice is deposited in the U.S. Mail. |
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| 1 | | An order assessing a fine, an order revoking or suspending | 2 | | a license, or an order denying renewal of a license shall take | 3 | | effect upon service of the order unless the licensee requests a | 4 | | hearing, in writing, within 10 days after the date of service. | 5 | | In the event a hearing is requested, the order shall be stayed | 6 | | until a final administrative order is entered. | 7 | | If the licensee requests a hearing, the Secretary shall | 8 | | schedule a hearing within 30 days after the request for a | 9 | | hearing unless otherwise agreed to by the parties. | 10 | | The hearing shall be held at the time and place designated | 11 | | by the Secretary. The Secretary and any administrative law | 12 | | judge designated by him or her shall have the power to | 13 | | administer oaths and affirmations, subpoena witnesses and | 14 | | compel their attendance, take evidence, and require the | 15 | | production of books, papers, correspondence, and other records | 16 | | or information that he or she considers relevant or material to | 17 | | the inquiry. | 18 | | (g) The costs of administrative hearings conducted | 19 | | pursuant to this Section shall be paid by the licensee.
| 20 | | (h) Notwithstanding any other provision of this Section, if | 21 | | a lender who does not have a license issued under this Act | 22 | | makes a loan pursuant to this Act to an Illinois consumer, then | 23 | | the loan shall be null and void and the lender who made the | 24 | | loan shall have no right to collect, receive, or retain any | 25 | | principal, interest, or charges related to the loan. | 26 | | (Source: P.A. 97-1039, eff. 1-1-13.) |
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| 1 | | Section 10. The Consumer Installment Loan Act is amended by | 2 | | changing Section 9 as follows:
| 3 | | (205 ILCS 670/9) (from Ch. 17, par. 5409)
| 4 | | Sec. 9. Fines, Suspension or Revocation of license.
| 5 | | (a) The Director may, after 10 days notice by registered | 6 | | mail to the
licensee at the address set forth in the license, | 7 | | stating the contemplated
action and in general the grounds | 8 | | therefor, fine such licensee an
amount not exceeding $10,000 | 9 | | per violation, or revoke or suspend any
license issued | 10 | | hereunder if he or she finds that:
| 11 | | (1) The licensee has failed to comply with any | 12 | | provision of this Act or
any order, decision, finding, | 13 | | rule, regulation or direction of the
Director lawfully made | 14 | | pursuant to the authority of this Act; or
| 15 | | (2) Any fact or condition exists which, if it had | 16 | | existed at the time of
the original application for the | 17 | | license, clearly would have warranted the
Director in | 18 | | refusing to issue the license.
| 19 | | (b) The Director may fine, suspend, or revoke only the | 20 | | particular
license with respect to which grounds for the fine, | 21 | | revocation or
suspension occur or exist, but if the Director | 22 | | shall find that grounds for
revocation are of general | 23 | | application to all offices or to more than one
office of the | 24 | | licensee, the Director shall fine, suspend, or revoke every
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| 1 | | license to which such grounds apply.
| 2 | | (c) (Blank).
| 3 | | (d) No revocation, suspension, or surrender of any license | 4 | | shall
impair or affect the obligation of any pre-existing | 5 | | lawful contract between
the licensee and any obligor.
| 6 | | (e) The Director may issue a new license to a licensee | 7 | | whose license
has been revoked when facts or conditions which | 8 | | clearly would have warranted
the Director in refusing | 9 | | originally to issue the license no longer exist.
| 10 | | (f) (Blank).
| 11 | | (g) In every case in which a license is suspended or | 12 | | revoked or an
application for a license or renewal of a license | 13 | | is denied, the Director shall
serve the licensee with notice of | 14 | | his or her action, including a statement of
the reasons for his | 15 | | or her actions, either personally, or by certified mail,
return | 16 | | receipt requested. Service by certified mail shall be deemed | 17 | | completed
when the notice is deposited in the U.S. Mail.
| 18 | | (h) An order assessing a fine, an order revoking or | 19 | | suspending a license or,
an order denying renewal of a license | 20 | | shall take effect upon service of the
order unless the licensee | 21 | | requests, in writing, within 10 days after the date
of service, | 22 | | a hearing. In the event a hearing is requested, the order shall | 23 | | be
stayed until a final administrative order is entered.
| 24 | | (i) If the licensee requests a hearing, the Director shall | 25 | | schedule a
hearing within 30 days after the request for a | 26 | | hearing unless otherwise agreed
to by the parties.
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| 1 | | (j) The hearing shall be held at the time and place | 2 | | designated by the
Director. The Director and any administrative | 3 | | law judge designated by him or
her shall have the power to | 4 | | administer oaths and affirmations, subpoena
witnesses
and | 5 | | compel their attendance, take evidence, and require the | 6 | | production of
books, papers, correspondence, and other records | 7 | | or information that he or she
considers relevant or material to | 8 | | the inquiry.
| 9 | | (k) The costs for the administrative hearing shall be set | 10 | | by rule.
| 11 | | (l) The Director shall have the authority to prescribe | 12 | | rules for the
administration of this Section.
| 13 | | (m) The Department shall establish by rule and publish a | 14 | | schedule of fines that are reasonably tailored to ensure | 15 | | compliance with the provisions of this Act and which include | 16 | | remedial measures intended to improve licensee compliance. | 17 | | Such rules shall set forth the standards and procedures to be | 18 | | used in imposing any such fines and remedies. | 19 | | (Source: P.A. 90-437, eff. 1-1-98.)".
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