Public Act 096-1038
Public Act 1038 96TH GENERAL ASSEMBLY
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Public Act 096-1038
| | HB4854 Enrolled | LRB096 16446 MJR 31714 b |
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| AN ACT concerning financial regulation.
| Be it enacted by the People of the State of Illinois,
| represented in the General Assembly:
| Section 5. The Pawnbroker Regulation Act is amended by | changing Sections 0.05, 5, 6, and 7.5 and by adding Section 15 | as follows:
| (205 ILCS 510/0.05)
| Sec. 0.05. Administration of Act.
| (a) This Act shall be administered by the
Secretary of | Financial and Professional Regulation Commissioner of Banks | and Real Estate who shall have all of the following
powers and | duties in administering this Act:
| (1) To promulgate reasonable rules for the purpose of | administering the
provisions of this Act.
| (2) To issue orders for the purpose of administering | the provisions of
this
Act and any rule promulgated in | accordance with this Act.
| (3) To appoint hearing officers and to hire employees | or to contract with
appropriate persons to execute any of | the powers granted to
the Secretary Commissioner under this | Section for the purpose of administering this
Act and any | rule promulgated in accordance with this Act.
| (4) To subpoena witnesses, to compel their attendance, |
| to administer an
oath, to examine any person under oath, | and to require the production of any
relevant books, | papers, accounts, and documents in the course of and | pursuant
to any investigation being conducted, or any | action being taken, by the
Secretary Commissioner in | respect of any matter relating to the duties imposed upon, | or
the powers vested in, the Secretary Commissioner under | the provisions of this Act or any
rule promulgated in | accordance with this Act.
| (5) To conduct hearings.
| (6) To impose civil penalties graduated up to $1,000 | against any person
for each
violation of any provision of | this Act, any rule promulgated in
accordance
with this Act, | or any order of the Secretary Commissioner
based upon the | seriousness of the violation.
| (6.5) To initiate, through the Attorney General, | injunction proceedings
whenever it appears to the | Secretary Commissioner that any person, whether licensed | under
this Act or not, is engaged or about to engage in an | act or practice that
constitutes or will constitute a | violation of this Act or any rule prescribed
under the | authority of this Act. The Secretary Commissioner may, in | his or her
discretion, through the Attorney General, apply | for an injunction, and upon a
proper showing, any circuit | court may enter a permanent or preliminary
injunction or a | temporary restraining order without bond to enforce this |
| Act in
addition to the penalties and other remedies | provided for in this Act.
| (7) To issue a cease and desist order and, for | violations of
this Act, any order issued by the Secretary | Commissioner pursuant to this Act, any
rule promulgated in | accordance with this Act,
or any other applicable law in | connection with the operation of a pawnshop,
to suspend a | license issued under this Act for up to 30 days.
| (8) To determine
compliance with applicable law and | rules related to the operation of pawnshops
and to verify | the accuracy of reports filed with the Secretary | Commissioner, the Secretary
Commissioner, not more than | one time every 2 years, may, but is not required
to, | conduct a routine examination of a pawnshop, and in
| addition, the Secretary Commissioner may examine the | affairs of any pawnshop at any time if the Secretary | Commissioner
has
reasonable cause to believe that unlawful | or fraudulent activity is occurring,
or has occurred, | therein.
| (9) In response to a complaint, to address any | inquiries to any pawnshop
in relation to its affairs, and | it shall be the duty of the pawnshop to
promptly reply in | writing to such inquiries. The Secretary Commissioner may | also require
reports or information from any pawnshop at | any time the Secretary Commissioner may deem
desirable.
| (10) To revoke a license issued under this Act if the |
| Secretary Commissioner
determines that (a) a licensee has | been convicted of a felony in connection
with the | operations of a pawnshop; (b) a licensee knowingly, | recklessly, or
continuously violated this Act, a rule | promulgated in
accordance with this Act, or any order of | the Secretary Commissioner; (c) a fact or
condition exists | that, if it had existed or had been known at the time of | the
original application, would have justified license | refusal; or (d) the licensee
knowingly submits materially | false or misleading documents with the intent to
deceive | the Secretary Commissioner or any other party.
| (11) Following license revocation, to take possession | and control of a
pawnshop for the purpose of examination, | reorganization, or liquidation through
receivership and to | appoint a receiver, which may be the Secretary | Commissioner, a
pawnshop, or
another suitable person.
| (b) After consultation with local law enforcement | officers, the Attorney
General, and the industry, the Secretary | Commissioner may by rule require that
pawnbrokers
operate video | camera surveillance systems to record photographic
| representations of customers and retain the tapes produced for | up to 30 days.
| (c) Pursuant to rule, the Secretary Commissioner shall | issue licenses on an annual or
multi-year basis for operating a
| pawnshop. Any person currently operating or
who has operated a | pawnshop in this State during the 2 years preceding the
|
| effective date of this amendatory Act of 1997 shall be issued a | license upon
payment of the fee required under this Act. New | applicants shall meet
standards for a license as established by | the Secretary Commissioner.
Except with the prior written | consent of the Secretary Commissioner, no individual,
either a | new applicant or a person currently operating a pawnshop, may | be
issued a license to operate a pawnshop if the individual has | been convicted
of a felony or of any criminal offense relating | to dishonesty or breach of
trust in connection with the | operations of a pawnshop.
The Secretary Commissioner shall
| establish license fees. The fees shall not exceed the amount | reasonably
required for administration of this Act. It shall be | unlawful to operate a
pawnshop without a license issued by the | Secretary Commissioner.
| (d) In addition to license fees, the Secretary Commissioner | may, by rule, establish
fees in connection with a review, | approval, or provision of a service, and levy
a reasonable | charge to recover the cost of the review, approval, or service
| (such as a change in control, change in location, or renewal of | a license).
The Secretary Commissioner may also levy a | reasonable charge to recover the cost of an
examination if the | Secretary Commissioner determines that unlawful or fraudulent | activity
has occurred. The Secretary Commissioner may require | payment of the fees and charges
provided in this Act by | certified check, money order, an electronic transfer of
funds, | or an automatic debit of an account.
|
| (e) The Pawnbroker Regulation Fund is established as a | special
fund in the State treasury. Moneys collected under this | Act shall be deposited
into the Fund and used for the | administration of this Act.
In the event that General Revenue | Funds are appropriated to the Department of Financial and | Professional Regulation Office of the
Commissioner of Banks and | Real Estate for the initial implementation of this
Act, the | Governor may direct the repayment from the Pawnbroker | Regulation
Fund to the General Revenue Fund of such advance in | an amount not to exceed
$30,000. The Governor may direct this | interfund transfer at such time as he
deems appropriate by | giving appropriate written notice. Moneys in the Pawnbroker | Regulation Fund may be transferred to the Professions Indirect | Cost Fund, as authorized under Section 2105-300 of the | Department of Professional Regulation Law of the Civil | Administrative Code of Illinois.
| (f) The Secretary Commissioner may, by rule, require all | pawnshops to provide for
the expenses that would arise from the | administration of the receivership of a
pawnshop under this Act | through the assessment of fees, the requirement to
pledge | surety bonds, or such other methods as determined by the | Secretary Commissioner.
| (g) All final administrative decisions of the Secretary | Commissioner under
this Act shall be subject to judicial review | pursuant to the provisions of the
Administrative Review Law. | For matters involving administrative review, venue
shall be in
|
| either Sangamon County or Cook County.
| (Source: P.A. 94-91, eff. 7-1-05.)
| (205 ILCS 510/5) (from Ch. 17, par. 4655)
| Sec. 5. Record requirements.
| (a) Except in municipalities located in counties having | 3,000,000 or more
inhabitants, every pawn and loan broker shall | keep a standard record book
that has been approved by the | sheriff of the county in which the pawnbroker
does business. In | municipalities in counties with
3,000,000 or more inhabitants, | the record book shall be approved by the police
department of | the municipality in which the pawn or loan broker does | business.
At the time of each and every loan or taking of a | pledge,
an accurate account and description, in the English | language, of all the
goods, articles and other things pawned or | pledged, the amount of money,
value or thing loaned thereon, | the time of pledging the same, the rate of
interest to be paid | on such loan, and the name and residence of the person
making | such pawn or pledge shall be printed, typed, or written in ink | in
the record book. Such entry shall include the serial number | or
identification number of items received which bear such
| number. Except for items purchased from dealers possessing a | federal employee
identification number who have provided a | receipt to the pawnbroker, every
pawnbroker shall also record | in his book, an accurate account and description,
in the | English language, of all goods, articles and other things |
| purchased or
received for the purpose of resale or loan | collateral by the pawnbroker from
any source, not in the course | of a pledge or loan, the time of such purchase
or receipt and | the name and address of the person or business which sold or
| delivered such goods, articles, or other things to the | pawnbroker. No entry
in such book shall be erased, mutilated or | changed.
| (b) Every pawnbroker shall require identification to be
| shown him by each person pledging or pawning any goods, | articles or other
things to the pawnbroker. If the | identification shown is a driver's license
or a State | identification card issued by the Secretary of State and | contains a
photograph of the person being identified,
only one | form of identification must be shown. If the identification | shown
is not a driver's license or a State identification card | issued by the
Secretary
of State and does not contain a | photograph, 2 forms of identification must be
shown, and one of | the 2 forms of
identification must
include his or her residence | address. These forms of identification shall
include, but not | be limited to, any of the following: driver's license,
social | security card, utility bill, employee or student | identification card,
credit card, or a civic, union or | professional association membership card.
In addition, in a | municipality with a population of 1,000,000 or more
| inhabitants, if the customer does not have an identification | issued by a
governmental entity containing a photograph of the |
| person being identified, the
pawnbroker shall photograph the | customer in color and record the customer's
name, residence | address, date of birth, social security number, gender, height,
| and weight on the reverse side of the photograph. If the | customer has no
social security number,
the pawnbroker shall | record this fact.
| A county or municipality, including a home rule unit, may | regulate a
pawnbroker's identification requirements for | persons pledging or pawning goods,
articles, or other things to | the pawnbroker in a manner that is not less
restrictive than | the regulation by the State of a pawnbroker's identification
| requirements for persons pledging or pawning goods, articles, | or other things.
A home rule unit
may not regulate a | pawnbroker's identification requirements for persons
pledging
| or pawning goods, articles, or other things to the pawnbroker | in a manner less
restrictive than the regulation by the State | of a pawnbroker's identification
requirements for persons | pledging or pawning goods, articles, or other things.
This | Section is a limitation under subsection (i) of Section 6 of | Article VII
of the Illinois Constitution on the concurrent | exercise by home rule units of
the powers and functions | exercised by the State.
| (c) A pawnbroker may maintain the records required by | subsection (a) in
computer form if the computer form has been | approved by the Commissioner, the
sheriff of the county in | which the shop is located, and the police department
of the |
| municipality in which the shop is located.
| (d) Records, including reports to the Secretary | Commissioner, maintained by
pawnbrokers shall be confidential, | and no disclosure of pawnbroker records
shall be made except | disclosures authorized by this Act or ordered by a court
of | competent jurisdiction. No record transferred to a | governmental official
shall be improperly disclosed, provided | that use of those records as evidence
of a felony or | misdemeanor shall be a proper purpose.
| (e) Pawnbrokers and their associations may lawfully give | appropriate
governmental agencies computer equipment for the | purpose of transferring
information pursuant to this Act.
| (Source: P.A. 91-608, eff. 8-19-99; 92-215, eff. 8-2-01.)
| (205 ILCS 510/6) (from Ch. 17, par. 4656)
| Sec. 6. Inspection of records.
| (a) The book or computer
records, as well as every article | or other thing of value so
pawned or pledged, shall at all | times be open to the inspection of the Secretary
Commissioner, | the sheriff of the county, his deputies, or any members
of the
| police force of
any city in the county in which such pawnbroker | does business.
In addition, the Secretary Commissioner shall be | authorized to inspect the books or
records of any business he | or she has reasonable cause to believe is conducting
pawn | transactions and should be licensed under this Act.
| (b) The book or computer records, pawn tickets, or any |
| other records
required by the Secretary Commissioner under this | Act or any rule promulgated in
accordance with this Act shall | be maintained for a period of 3 years after the
date on which | the record or ticket was prepared. These records and tickets
| shall be open
to inspection of the Secretary Commissioner at | all times during the 3-year period.
| (Source: P.A. 92-215, eff. 8-2-01.)
| (205 ILCS 510/7.5)
| Sec. 7.5. Report to the Secretary Commissioner.
The | Secretary Commissioner, as often as the Secretary Commissioner | shall deem necessary or
proper, may require a pawnshop to | submit a full and detailed report of its
operations including, | but not limited to, the number of pawns made, the amount
| financed on pawn transactions, and the number and amount of | pawns surrendered
to law enforcement.
| The Secretary Commissioner shall
prescribe the form of the | report and establish the date by which the report
must be | filed.
| (Source: P.A. 90-477, eff. 7-1-98; 90-602, eff. 7-1-98.)
| (205 ILCS 510/15 new) | Sec. 15. Temporary buying locations; unregistered buyers. | (a) For purposes of this Section: | "Temporary buying location" means a location used by an | unregistered buyer, including, but not limited to, hotels and |
| motels. | "Unregistered buyer" means an individual business, or an | agent of an individual business, engaged in the business of | purchasing from the public, scrap precious metals, including, | but not limited to, jewelry, precious stones, semi-precious | stones, coins, silver, gold, and platinum, that conducts | transactions at a temporary buying location but is not | registered under this Act. | (b) An unregistered buyer that seeks to conduct business at | a temporary buying location in this State must comply with all | of the following: | (1) An unregistered buyer must register with the | sheriff of the county at least 30 days prior to its | intention to conduct transactions in that county. | (2) An unregistered buyer must submit by 6 a.m. each | day to the sheriff of the county in which he or she is | located detailed transaction records for the previous day, | which must include purchaser, seller, and inventory | information pursuant to subsection (b) of Section 5 of this | Act. | (3) An unregistered buyer must pay a registration fee | to the sheriff of the county in which it seeks to conduct | business. This fee shall be used to defray the cost of | reviewing the records required under this Section and may | be apportioned as the sheriff sees fit. | (c) The Department of Financial and Professional |
| Regulation may adopt rules necessary for administration of this | Section, which must include a fee schedule for counties to | follow.
| Section 99. Effective date. This Act takes effect upon | becoming law.
|
Effective Date: 7/14/2010
|
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