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92_HB2539enr HB2539 Enrolled LRB9201092JSpcA 1 AN ACT concerning pawnbrokers. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Pawnbroker Regulation Act is amended by 5 changing Sections 0.05, 5, 6, and 11 as follows: 6 (205 ILCS 510/0.05) 7 Sec. 0.05. Administration of Act. 8 (a) This Act shall be administered by the Commissioner 9 of Banks and Real Estate who shall have all of the following 10 powers and duties in administering this Act: 11 (1) To promulgate reasonable rules for the purpose 12 of administering the provisions of this Act. 13 (2) To issue orders for the purpose of 14 administering the provisions of this Act and any rule 15 promulgated in accordance with this Act. 16 (3) To appoint hearing officers and to hire 17 employees or to contract with appropriate persons to 18 execute any of the powers granted to the Commissioner 19 under this Section for the purpose of administering this 20 Act and any rule promulgated in accordance with this Act. 21 (4) To subpoena witnesses, to compel their 22 attendance, to administer an oath, to examine any person 23 under oath, and to require the production of any relevant 24 books, papers, accounts, and documents in the course of 25 and pursuant to any investigation being conducted, or any 26 action being taken, by the Commissioner in respect of any 27 matter relating to the duties imposed upon, or the powers 28 vested in, the Commissioner under the provisions of this 29 Act or any rule promulgated in accordance with this Act. 30 (5) To conduct hearings. 31 (6) To impose civil penalties graduated up to HB2539 Enrolled -2- LRB9201092JSpcA 1 $1,000 against any person for each violation of any 2 provision of this Act, any rule promulgated in accordance 3 with this Act, or any order of the Commissioner based 4 upon the seriousness of the violation. 5 (6.5) To initiate, through the Attorney General, 6 injunction proceedings whenever it appears to the 7 Commissioner that any person, whether licensed under this 8 Act or not, is engaged or about to engage in an act or 9 practice that constitutes or will constitute a violation 10 of this Act or any rule prescribed under the authority of 11 this Act. The Commissioner may, in his or her 12 discretion, through the Attorney General, apply for an 13 injunction, and upon a proper showing, any circuit court 14 may enter a permanent or preliminary injunction or a 15 temporary restraining order without bond to enforce this 16 Act in addition to the penalties and other remedies 17 provided for in this Act. 18 (7) To issue a cease and desist order and, for 19 violations of this Act, any order issued by the 20 Commissioner pursuant to this Act, any rule promulgated 21 in accordance with this Act, or any other applicable law 22 in connection with the operation of a pawnshop, to 23 suspend a license issued under this Act for up to 30 24 days. 25 (8) To determine compliance with applicable law and 26 rules related to the operation of pawnshops and to verify 27 the accuracy of reports filed with the Commissioner, the 28 Commissioner, not more than one time every 2 years, may, 29 but is not required to, conduct a routine examination of 30 a pawnshop, and in addition, the Commissioner mayTo31 examine the affairs of any pawnshop at any time if the 32 Commissioner has reasonable cause to believe that 33 unlawful or fraudulent activity is occurring, or has 34 occurred, therein. HB2539 Enrolled -3- LRB9201092JSpcA 1 (9) In response to a complaint, to address any 2 inquiries to any pawnshop in relation to its affairs, and 3 it shall be the duty of the pawnshop to promptly reply in 4 writing to such inquiries. The Commissioner may also 5 require reports or information from any pawnshop at any 6 time the Commissioner may deem desirable. 7 (10) To revoke a license issued under this Act if 8 the Commissioner determines that (a) a licensee has been 9 convicted of a felony in connection with the operations 10 of a pawnshop; (b) a licensee knowingly, recklessly, or 11 continuously violated this Act, a rule promulgated in 12 accordance with this Act, or any order of the 13 Commissioner; (c) a fact or condition exists that, if it 14 had existed or had been known at the time of the original 15 application, would have justified license refusal; or (d) 16 the licensee knowingly submits materially false or 17 misleading documents with the intent to deceive the 18 Commissioner or any other party. 19 (11) Following license revocation, to take 20 possession and control of a pawnshop for the purpose of 21 examination, reorganization, or liquidation through 22 receivership and to appoint a receiver, which may be the 23 Commissioner, a pawnshop, or another suitable person. 24 (b) After consultation with local law enforcement 25 officers, the Attorney General, and the industry, the 26 Commissioner may by rule require that pawnbrokers operate 27 video camera surveillance systems to record photographic 28 representations of customers and retain the tapes produced 29 for up to 30 days. 30 (c) Pursuant to rule, the Commissioner shall issue 31 licenses on an annual or multi-year basis for operating a 32 pawnshop. Any person currently operating or who has operated 33 a pawnshop in this State during the 2 years preceding the 34 effective date of this amendatory Act of 1997 shall be issued HB2539 Enrolled -4- LRB9201092JSpcA 1 a license upon payment of the fee required under this Act. 2 New applicants shall meet standards for a license as 3 established by the Commissioner. Except with the prior 4 written consent of the Commissioner, no individual, either a 5 new applicant or a person currently operating a pawnshop, may 6 be issued a license to operate a pawnshop if the individual 7 has been convicted of a felony or of any criminal offense 8 relating to dishonesty or breach of trust in connection with 9 the operations of a pawnshop. The Commissioner shall 10 establish license fees. The fees shall not exceed the amount 11 reasonably required for administration of this Act. It shall 12 be unlawful to operate a pawnshop without a license issued by 13 the Commissioner. 14 (d) In addition to license fees, the Commissioner may, 15 by rule, establish fees in connection with a review, 16 approval, or provision of a service, and levy a reasonable 17 charge to recover the cost of the review, approval, or 18 service (such as a change in control, change in location, or 19 renewal of a license). The Commissioner may also levy a 20 reasonable charge to recover the cost of an examination if 21 the Commissioner determines that unlawful or fraudulent 22 activity has occurred. The Commissioner may require payment 23 of the fees and charges provided in this Act by certified 24 check, money order, an electronic transfer of funds, or an 25 automatic debit of an account. 26 (e) The Pawnbroker Regulation Fund is established as a 27 special fund in the State treasury. Moneys collected under 28 this Act shall be deposited into the Fund and used for the 29 administration of this Act. In the event that General 30 Revenue Funds are appropriated to the Office of the 31 Commissioner of Banks and Real Estate for the initial 32 implementation of this Act, the Governor may direct the 33 repayment from the Pawnbroker Regulation Fund to the General 34 Revenue Fund of such advance in an amount not to exceed HB2539 Enrolled -5- LRB9201092JSpcA 1 $30,000. The Governor may direct this interfund transfer at 2 such time as he deems appropriate by giving appropriate 3 written notice. 4 (f) The Commissioner may, by rule, require all pawnshops 5 to provide for the expenses that would arise from the 6 administration of the receivership of a pawnshop under this 7 Act through the assessment of fees, the requirement to pledge 8 surety bonds, or such other methods as determined by the 9 Commissioner. 10 (g) All final administrative decisions of the 11 Commissioner under this Act shall be subject to judicial 12 review pursuant to the provisions of the Administrative 13 Review Law. For matters involving administrative review, 14 venue shall be in either Sangamon County or Cook County. 15 (Source: P.A. 90-477, eff. 7-1-98; 90-602, eff. 7-1-98.) 16 (205 ILCS 510/5) (from Ch. 17, par. 4655) 17 Sec. 5. Record requirements. 18 (a) Except in municipalities located in counties having 19 3,000,000 or more inhabitants, every pawn and loan broker 20 shall keep a standard record book that has been approved by 21 the sheriff of the county in which the pawnbroker does 22 business. In municipalities in counties with 3,000,000 or 23 more inhabitants, the record book shall be approved by the 24 police department of the municipality in which the pawn or 25 loan broker does business. At the time of each and every 26 loan or taking of a pledge, an accurate account and 27 description, in the English language, of all the goods, 28 articles and other things pawned or pledged, the amount of 29 money, value or thing loaned thereon, the time of pledging 30 the same, the rate of interest to be paid on such loan, and 31 the name and residence of the person making such pawn or 32 pledge shall be printed, typed, or written in ink in the 33 record book. Such entry shall include the serial number or HB2539 Enrolled -6- LRB9201092JSpcA 1 identification number of items received whichare required to2 bear such number. Except for items purchased from dealers 3 possessing a federal employee identification number who have 4 provided a receipt to the pawnbroker, every pawnbroker shall 5 also record in his book, an accurate account and description, 6 in the English language, of all goods, articles and other 7 things purchased or received for the purpose of resale or 8 loan collateral by the pawnbroker from any source, not in the 9 course of a pledge or loan, the time of such purchase or 10 receipt and the name and address of the person or business 11 which sold or delivered such goods, articles, or other things 12 to the pawnbroker. No entry in such book shall be erased, 13 mutilated or changed. 14 (b) Every pawnbroker shall require identification to be 15 shown him by each person pledging or pawning any goods, 16 articles or other things to the pawnbroker. If the 17 identification shown is a driver's license or a State 18 identification card issued by the Secretary of State and 19 contains a photograph of the person being identified, only 20 one form of identification must be shown. If the 21 identification shown is not a driver's license or a State 22 identification card issued by the Secretary of State and does 23 not contain a photograph, 2 forms of identification must be 24 shown, and one of the 2 forms of identification must include 25 his or her residence address. These forms of identification 26 shall include, but not be limited to, any of the following: 27 driver's license, social security card, utility bill, 28 employee or student identification card, credit card, or a 29 civic, union or professional association membership card. In 30 addition, in a municipality with a population of 1,000,000 or 31 more inhabitants, if the customer does not have an 32 identification issued by a governmental entity containing a 33 photograph of the person being identified, the pawnbroker 34 shall photograph the customer in color and record the HB2539 Enrolled -7- LRB9201092JSpcA 1 customer's name, residence address, date of birth, social 2 security number, gender, height, and weight on the reverse 3 side of the photograph. If the customer has no social 4 security number, the pawnbroker shall record this fact. 5 A county or municipality, including a home rule unit, may 6 regulate a pawnbroker's identification requirements for 7 persons pledging or pawning goods, articles, or other things 8 to the pawnbroker in a manner that is not less restrictive 9 than the regulation by the State of a pawnbroker's 10 identification requirements for persons pledging or pawning 11 goods, articles, or other things. A home rule unit may not 12 regulate a pawnbroker's identification requirements for 13 persons pledging or pawning goods, articles, or other things 14 to the pawnbroker in a manner less restrictive than the 15 regulation by the State of a pawnbroker's identification 16 requirements for persons pledging or pawning goods, articles, 17 or other things. This Section is a limitation under 18 subsection (i) of Section 6 of Article VII of the Illinois 19 Constitution on the concurrent exercise by home rule units of 20 the powers and functions exercised by the State. 21 (c) A pawnbroker may maintain the records required by 22 subsection (a) in computer form if the computer form has been 23 approved by the Commissioner, the sheriff of the county in 24 which the shop is located, and the police department of the 25 municipality in which the shop is located. 26 (d) Records, including reports to the Commissioner, 27 maintained by pawnbrokers shall be confidential, and no 28 disclosure of pawnbroker records shall be made except 29 disclosures authorized by this Act or ordered by a court of 30 competent jurisdiction. No record transferred to a 31 governmental official shall be improperly disclosed, provided 32 that use of those records as evidence of a felony or 33 misdemeanor shall be a proper purpose. 34 (e) Pawnbrokers and their associations may lawfully give HB2539 Enrolled -8- LRB9201092JSpcA 1 appropriate governmental agencies computer equipment for the 2 purpose of transferring information pursuant to this Act. 3 (Source: P.A. 90-56, eff. 7-3-97; 90-477, eff. 7-1-98; 4 90-655, eff. 7-30-98; 91-608, eff. 8-19-99.) 5 (205 ILCS 510/6) (from Ch. 17, par. 4656) 6 Sec. 6. Inspection of records. 7 (a) The book or computer records, as well as every 8 article or other thing of value so pawned or pledged, shall 9 at all times be open to the inspection of the Commissioner, 10 the sheriff of the county, his deputies, or any members of 11 the police force of any city in the county in which such 12 pawnbroker does business. In addition, the Commissioner shall 13 be authorized to inspect the books or records of any business 14 he or she has reasonable cause to believe is conducting pawn 15 transactions and should be licensed under this Act. 16 (b) The book or computer records, pawn tickets, or any 17 other records required by the Commissioner under this Act or 18 any rule promulgated in accordance with this Act shall be 19 maintained for a period of 3 years after the date on which 20 the record or ticket was prepared. These records and tickets 21 shall be open to inspection of the Commissioner at all times 22 during the 3-year period. 23 (Source: P.A. 90-477, eff. 7-1-98.) 24 (205 ILCS 510/11) (from Ch. 17, par. 4661) 25 Sec. 11. Violations. Every person who knowingly violates 26 the provisions of this Act shall, for the first offense, be 27 guilty of a Class C misdemeanor, and for each subsequent 28 offense shall be guilty of a Class A misdemeanor, except that 29 a person who knowingly violates this Act by operating a 30 pawnshop without a license shall be guilty of a Class B 31 misdemeanor for the first offense and shall be guilty of a 32 Class A misdemeanor for any subsequent offense.provided,HB2539 Enrolled -9- LRB9201092JSpcA 1thatThis Act shall not be construed as to, in any wise, 2 impair the power of cities or villages in this State to 3 license, tax, regulate except as to fee amounts, suppress, 4 and prohibit pawnbrokers as now provided by law. 5 (Source: P.A. 90-477, eff. 7-1-98.) 6 Section 99. Effective date. This Act takes effect upon 7 becoming law.