HB0779 Enrolled LRB103 04371 RPS 49377 b
1		AN ACT concerning State government.
2		Be it enacted by the People of the State of Illinois,
3		represented in the General Assembly:
4		Article 1. General Provisions
5		Section 1-1. Short title. This Act may be cited as the
6		Pawnbroker Regulation Act of 2023.
7		Section 1-5. Definitions.
8		As used in this Act:
9		"Applicant" means a person applying for a license pursuant
10		to this Act.
11		"Department" means the Department of Financial and
12		Professional Regulation.
13		"Licensee" means a person licensed pursuant to this Act.
14		"Pawn" means the advance of money on the deposit or pledge
15		of physically delivered personal property, other than property
16		the ownership of which is subject to a legal dispute or other
17		exempt property or instruments.
18		"Pawnbroker" means every individual or business entity
19		that:
20		(1) advances money on the pledge of tangible personal
21		property, other than securities, printed evidence of
22		indebtedness, or printed evidence of ownership of the

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1		personal property; or
2		(2) deals in the purchase of personal property on the
3		condition of selling the property back again at a
4		stipulated price.
5		"Pawn customer" means a person who pawns or pledges and
6		physically delivers personal property in exchange for money.
7		"Secretary" means the Secretary of Financial and
8		Professional Regulation, or his or her designee, including the
9		Director of the Division of Banking of the Department of
10		Financial and Professional Regulation.
11		Article 5. Licensure
12		Section 5-1. Scope; number of pawnbroker licenses.
13		(a) It is unlawful for any person to operate as a
14		pawnbroker in Illinois except as authorized by this Act and
15		without first having obtained a license in accordance with
16		this Act.
17		(b) The business of a pawnbroker does not include advances
18		of money secured by a deposit or pledge of title to personal
19		property or motor vehicles.
20		(c) There shall not be more than 250 active pawnbroker
21		licenses at any one time within the State of Illinois. There
22		shall not be more than 150 active pawnbroker licenses issued
23		for the counties of Cook, DuPage, Kane, Lake, McHenry, and
24		Will at any one time.

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1		Section 5-5. Licensee name.
2		(a) No person, partnership, association, corporation,
3		limited liability company, or other entity engaged in the
4		business regulated by this Act shall operate the business
5		under a name other than the real names of the entity and
6		individuals conducting the business. The business may in
7		addition operate under an assumed corporate name pursuant to
8		the Business Corporation Act of 1983, an assumed limited
9		liability company name pursuant to the Limited Liability
10		Company Act, or an assumed business name pursuant to the
11		Assumed Business Name Act.
12		(b) It is unlawful for an individual or business entity to
13		conduct business in this State using the word "pawn",
14		"pawnshop", or "pawnbroker" in connection with the business or
15		to transact business in this State in a manner that has a
16		substantial likelihood of misleading the public by implying
17		that the business is a pawnshop, without first obtaining a
18		license from the Secretary.
19		Section 5-10. Application process; investigation; fees.
20		(a) The Secretary shall issue a license upon completion of
21		all of the following:
22		(1) The filing of an application for license with the
23		Secretary or the Nationwide Multistate Licensing System
24		and Registry as approved by the Secretary.

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1		(2) The filing with the Secretary of a listing of
2		judgments entered against, and bankruptcy petitions by,
3		the license applicant for the preceding 10 years.
4		(3) The payment, in certified funds, of the following
5		investigation and application fees:
6		(A) the fees for licensure shall be a $2,000
7		application fee and an additional $800 fee for
8		investigation. These fees are nonrefundable; and
9		(B) the fee for an application renewal shall be
10		$2,000. The fee is nonrefundable.
11		(4) An investigation of the application, which
12		investigation must allow the Secretary to issue positive
13		findings stating that the financial responsibility,
14		experience, character, and general fitness of the license
15		applicant and of the members thereof if the license
16		applicant is a partnership or association, of the officers
17		and directors thereof if the license applicant is a
18		corporation, and of the managers and members that retain
19		any authority or responsibility under the operating
20		agreement if the license applicant is a limited liability
21		company, are such as to command the confidence of the
22		community and to warrant belief that the business will be
23		operated honestly, fairly, and efficiently within the
24		purpose of this Act; if the Secretary does not so find, he
25		or she shall not issue the license, and he or she shall
26		notify the license applicant of the denial.

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1		The Secretary may impose conditions on a license if the
2		Secretary determines that those conditions are necessary or
3		appropriate. These conditions shall be imposed in writing and
4		shall continue in effect for the period prescribed by the
5		Secretary.
6		(b) All licenses shall be issued to the license applicant.
7		Upon issuance of the license, a pawnbroker licensee shall be
8		authorized to engage in the business regulated by this Act.
9		The license shall remain in full force and effect until it
10		expires without renewal, is surrendered by the licensee, or
11		revoked or suspended.
12		Section 5-15. Application form.
13		(a) Application for a pawnbroker license must be made in
14		accordance with Section 5-20 and, if applicable, in accordance
15		with requirements of the Nationwide Multistate Licensing
16		System and Registry. The application shall be in writing,
17		under oath or affirmation, and on a form obtained from and
18		prescribed by the Secretary, or may be submitted
19		electronically, with attestation, to the Nationwide Multistate
20		Licensing System and Registry.
21		(b) The application shall contain the name, complete
22		business, and residential address or addresses of the license
23		applicant. If the license applicant is a partnership,
24		association, corporation, or other form of business
25		organization, the application shall contain the names and

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1		complete business and residential addresses of each member,
2		director, and principal officer thereof. The application shall
3		also include a description of the activities of the license
4		applicant in such detail and for such periods as the Secretary
5		may require, including all of the following:
6		(1) an affirmation of financial solvency noting such
7		capitalization requirements as may be required by the
8		Secretary and access to such credit as may be required by
9		the Secretary;
10		(2) an affirmation that the license applicant or its
11		members, directors, or principals, as may be appropriate,
12		are at least 18 years of age;
13		(3) information as to the character, fitness,
14		financial and business responsibility, background,
15		experience, and criminal record of any:
16		(A) person, entity, or ultimate equitable owner
17		that owns or controls, directly or indirectly, 10% or
18		more of any class of stock of the license applicant;
19		(B) person, entity, or ultimate equitable owner
20		that is not a depository institution, as defined in
21		Section 1007.50 of the Savings Bank Act, that lends,
22		provides, or infuses, directly or indirectly, in any
23		way, funds to or into a license applicant in an amount
24		equal to or more than 10% of the license applicant's
25		net worth;
26		(C) person, entity, or ultimate equitable owner

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1		that controls, directly or indirectly, the election of
2		25% or more of the members of the board of directors of
3		a license applicant; or
4		(D) person, entity, or ultimate equitable owner
5		that the Secretary finds influences management of the
6		license applicant; the provisions of this subsection
7		shall not apply to a public official serving on the
8		board of directors of a State guaranty agency;
9		(4) upon written request by the licensee and
10		notwithstanding the provisions of paragraphs (1) and (2)
11		of this subsection, the Secretary may permit the licensee
12		to omit all or part of the information required by those
13		paragraphs if, instead of the omitted information, the
14		licensee submits an affidavit stating that the information
15		submitted on the licensee's previous renewal application
16		is still true and accurate; then the Secretary may adopt
17		rules prescribing the form and content of the affidavit
18		that are necessary to accomplish the purposes of this
19		Section; and
20		(5) such other information as required by rules of the
21		Secretary.
22		Section 5-20. Pawnbroker license application and issuance.
23		(a) Applicants for a license shall apply in a form
24		prescribed by the Secretary. Each form shall contain content
25		as set forth by rule, regulation, instruction, or procedure of

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1		the Department or Secretary and may be changed or updated as
2		necessary by the Department or Secretary in order to carry out
3		the purposes of this Act.
4		(b) In order to fulfill the purposes of this Act, the
5		Secretary is authorized to establish relationships or
6		contracts with the Nationwide Multistate Licensing System and
7		Registry or other entities designated by the Nationwide
8		Multistate Licensing System and Registry to collect and
9		maintain records and process transaction fees or other fees
10		related to licensees or other persons subject to this Act.
11		(c) In connection with an application for licensing, the
12		applicant may be required, at a minimum, to furnish to the
13		Nationwide Multistate Licensing System and Registry
14		information concerning the applicant's identity, including:
15		(1) fingerprints for submission to the Federal Bureau
16		of Investigation or any governmental agency or entity
17		authorized to receive such information for a State,
18		national, and international criminal history background
19		check; and
20		(2) personal history and experience in a form
21		prescribed by the Nationwide Multistate Licensing System
22		and Registry, including the submission of authorization
23		for the Nationwide Multistate Licensing System and
24		Registry and the Secretary to obtain:
25		(A) an independent credit report obtained from a
26		consumer reporting agency described in Section 603(p)

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1		of the Fair Credit Reporting Act, 15 U.S.C. 1681a(p);
2		and
3		(B) information related to any administrative,
4		civil, or criminal findings by any governmental
5		jurisdiction.
6		(d) For the purposes of this Section, and in order to
7		reduce the points of contact that the Federal Bureau of
8		Investigation may have to maintain for purposes of subsection
9		(c), the Secretary may use the Nationwide Multistate Licensing
10		System and Registry as a channeling agent for requesting
11		information from and distributing information to the federal
12		Department of Justice or any governmental agency.
13		(e) For the purposes of this Section, and in order to
14		reduce the points of contact that the Secretary may have to
15		maintain for purposes of paragraph (2) of subsection (c), the
16		Secretary may use the Nationwide Multistate Licensing System
17		and Registry as a channeling agent for requesting and
18		distributing information to and from any source as directed by
19		the Secretary.
20		Section 5-25. Prohibited acts and practices for licensees.
21		(a) It is a violation of this Act for a licensee subject to
22		this Act to:
23		(1) fail to file with the Secretary or Nationwide
24		Multistate Licensing System and Registry, as applicable,
25		when due, any report or reports that it is required to file

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1		under any of the provisions of this Act;
2		(2) commit a crime against the law of this State, any
3		other state, or of the United States involving moral
4		turpitude or fraudulent or dishonest dealing, and that no
5		final judgment has been entered against it in a civil
6		action upon grounds of fraud, misrepresentation, or deceit
7		that has not been previously reported to the Secretary;
8		(3) engage in any conduct that would be cause for
9		denial of a license;
10		(4) become insolvent;
11		(5) submit an application for a license under this Act
12		that contains a material misstatement;
13		(6) demonstrate by course of conduct, negligence, or
14		incompetence in performing any act for which it is
15		required to hold a license under this Act;
16		(7) fail to advise the Secretary in writing or the
17		Nationwide Multistate Licensing System and Registry, as
18		applicable, of any changes to the information submitted on
19		the most recent application for license or averments of
20		record within 30 days after the change; the written notice
21		must be signed in the same form as the application for the
22		license being amended;
23		(8) fail to comply with the provisions of this Act and
24		with any lawful order, rule, or regulation made or issued
25		under the provisions of this Act;
26		(9) fail to submit to periodic examination by the

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1		Secretary as required by this Act; and
2		(10) fail to advise the Secretary in writing of
3		judgments entered against and bankruptcy petitions by the
4		license applicant within 5 days after the occurrence.
5		(b) A licensee who fails to comply with this Section or
6		otherwise violates any of the provisions of this Section shall
7		be subject to the penalties in Section 30-30.
8		Section 5-30. Refusal to issue license. The Secretary
9		shall refuse to issue or renew a license if:
10		(1) it is determined that the applicant is not in
11		compliance with any provisions of this Act;
12		(2) there is substantial continuity between the
13		applicant and any violator of this Act; or
14		(3) the Secretary cannot make the findings specified
15		in subsection (a) of Section 5-10.
16		Section 5-35. License issuance and renewal; fees.
17		(a) Licenses shall be renewed every year using the common
18		renewal date of the Nationwide Multistate Licensing System and
19		Registry, as adopted by the Secretary. Properly completed
20		renewal application forms and filing fees may be received by
21		the Secretary 60 days before the license expiration date, but,
22		to be deemed timely, the completed renewal application forms
23		and filing fees must be received by the Secretary no later than
24		30 days before the license expiration date.

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1		(b) It shall be the responsibility of each licensee to
2		accomplish renewal of its license. Failure by a licensee to
3		submit a properly completed renewal application form and fees
4		in a timely fashion, absent a written extension from the
5		Secretary, shall result in the license becoming inactive.
6		(c) No activity regulated by this Act shall be conducted
7		by the licensee when a license becomes inactive. An inactive
8		license may be reactivated by the Secretary upon payment of
9		the renewal fee and payment of a reactivation fee equal to the
10		renewal fee.
11		(d) A licensee ceasing an activity regulated by this Act
12		and desiring to no longer be licensed shall so inform the
13		Secretary in writing and, at the same time, convey any license
14		issued and all other symbols or indicia of licensure. The
15		licensee shall include a plan for the withdrawal from
16		regulated business, including a timetable for the disposition
17		of the business, and comply with the surrender guidelines or
18		requirements of the Secretary. Upon receipt of such written
19		notice, the Secretary shall post the cancellation or issue a
20		certified statement canceling the license.
21		(e) The expenses of administering this Act, including
22		investigations and examinations provided for in this Act,
23		shall be borne by and assessed against entities regulated by
24		this Act. Subject to the limitations set forth in Section
25		5-10, the Department shall establish fees by rule in at least
26		the following categories:

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1		(1) investigation of licensees and license
2		applicant fees;
3		(2) examination fees;
4		(3) contingent fees; and
5		(4) such other categories as may be required to
6		administer this Act.
7		Article 10. Supervision
8		Section 10-5. Functions; powers; duties.
9		The functions, powers, and duties of the Secretary shall
10		include the following:
11		(1) to issue or refuse to issue any license as
12		provided by this Act;
13		(2) to revoke or suspend for cause any license issued
14		under this Act;
15		(3) to keep records of all licenses issued under this
16		Act;
17		(4) to receive, consider, investigate, and act upon
18		complaints made by any person in connection with any
19		pawnbroker licensee in this State;
20		(5) to prescribe the forms of and receive:
21		(A) applications for licenses; and
22		(B) all reports and all books and records required
23		to be made by any licensee under this Act;
24		(6) to adopt rules necessary and proper for the

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1		administration of this Act;
2		(7) to subpoena documents and witnesses and compel
3		their attendance and production, to administer oaths and
4		affirmations, and to require the production of any books,
5		papers, or other materials relevant to any inquiry
6		authorized by this Act;
7		(8) to issue orders against any person, including, but
8		not limited to, any officer, director, employee,
9		prospective employee, or agent of the licensee, if the
10		Secretary has reasonable cause to believe that an unsafe,
11		unsound, or unlawful practice has occurred, is occurring,
12		or is about to occur; if any person has violated, is
13		violating, or is about to violate any law, rule, or
14		written agreement with the Secretary; or for the purpose
15		of administering the provisions of this Act and any rule
16		adopted in accordance with this Act;
17		(9) to address any inquiries to any licensee, or the
18		officers thereof, in relation to its activities and
19		conditions, or any other matter connected with its
20		affairs, and it shall be the duty of any licensee or person
21		so addressed to promptly reply in writing to those
22		inquiries; the Secretary may also require reports from any
23		licensee at any time the Secretary may deem desirable;
24		(10) to examine the books and records of every
25		licensee under this Act;
26		(11) to enforce provisions of this Act;

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1		(12) to levy fees, fines, and charges for services
2		performed in administering this Act; the aggregate of all
3		fees collected by the Secretary on and after the effective
4		date of this Act shall be paid promptly after receipt,
5		accompanied by a detailed statement thereof, into the
6		Pawnbroker Regulation Fund under Section 10-10; the
7		amounts deposited into that Fund shall be used for the
8		ordinary and contingent expenses of the Department;
9		nothing in this Act shall prevent the continuation of the
10		practice of paying expenses involving salaries,
11		retirement, social security, and State-paid insurance of
12		State officers by appropriation from the General Revenue
13		Fund;
14		(13) to appoint examiners, supervisors, experts, and
15		special assistants as needed to effectively and
16		efficiently administer this Act;
17		(14) to conduct hearings for the purpose of:
18		(A) appeals of orders of the Secretary;
19		(B) suspensions or revocations of licenses, or
20		fining of licensees;
21		(C) investigating complaints against licensees;
22		and
23		(D) carrying out the purposes of this Act;
24		(15) to exercise exclusive visitorial power over a
25		licensee unless otherwise authorized by this Act or as
26		vested in the courts;

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1		(16) to assign on an emergency basis an examiner or
2		examiners to monitor the affairs of a licensee with
3		whatever frequency the Secretary determines appropriate
4		and to charge the licensee for reasonable and necessary
5		expenses of the Secretary, if in the opinion of the
6		Secretary an emergency exists or appears likely to occur;
7		(17) to impose civil penalties of up to $50 per day
8		against a licensee for failing to respond to a regulatory
9		request or reporting requirement;
10		(18) to enter into agreements in connection with the
11		Nationwide Multistate Licensing System and Registry; and
12		(19) to perform any other lawful acts necessary or
13		desirable to carry out the purposes and provisions of this
14		Act.
15		Section 10-10. Pawnbroker Regulation Fund. The Pawnbroker
16		Regulation Fund, which was established by Public Act 90-477,
17		shall continue to be a special fund in the State treasury. All
18		moneys received by the Secretary under this Act in conjunction
19		with the provisions relating to pawnbrokers shall be deposited
20		into the Pawnbroker Regulation Fund and used for the
21		administration of this Act. Moneys in the Pawnbroker
22		Regulation Fund may be transferred to the Professions Indirect
23		Cost Fund, as authorized under Section 2105-300 of the
24		Department of Professional Regulation Law of the Civil
25		Administrative Code of Illinois.

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1		Section 10-15. Examination; prohibited activities.
2		(a) The business affairs of a licensee under this Act
3		shall be examined for compliance with this Act as often as the
4		Secretary deems necessary and proper. The Department may adopt
5		rules with respect to the frequency and manner of examination.
6		The Secretary shall appoint a suitable person to perform such
7		examination. The Secretary and his or her appointees may
8		examine the entire books, records, documents, and operations
9		of each licensee and its subsidiary, affiliate, or agent, and
10		may examine any of the licensee's or its subsidiary's,
11		affiliate's, or agent's officers, directors, employees, and
12		agents under oath or affirmation.
13		(b) The Secretary shall prepare a sufficiently detailed
14		report of each licensee's examination, shall issue a copy of
15		the report to each licensee's principals, officers, or
16		directors, and shall take appropriate steps to ensure
17		correction of violations of this Act.
18		(c) Affiliates of a licensee shall be subject to
19		examination by the Secretary on the same terms as the
20		licensee, but only if reports from or examination of a
21		licensee provides for documented evidence of unlawful activity
22		between a licensee and affiliate benefiting, affecting, or
23		deriving from the activities regulated by this Act.
24		(d) The expenses of any examination of the licensee and
25		affiliates shall be borne by the licensee and assessed by the

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1		Secretary as may be established by rule.
2		(e) Upon completion of the examination, the Secretary
3		shall issue a report to the licensee. All confidential
4		supervisory information, including the examination report and
5		the work papers of the report, shall belong to the Secretary's
6		office and may not be disclosed to anyone other than the
7		licensee, law enforcement officials or other regulatory
8		agencies that have an appropriate regulatory interest as
9		determined by the Secretary, or to a party presenting a lawful
10		subpoena to the Department. The Secretary may, through the
11		Attorney General, immediately appeal to the court of
12		jurisdiction the disclosure of such confidential supervisory
13		information and seek a stay of the subpoena pending the
14		outcome of the appeal. Reports required of licensees by the
15		Secretary under this Act and results of examinations performed
16		by the Secretary under this Act shall be the property of only
17		the Secretary, but may be shared with the licensee. Access
18		under this Act to the books and records of each licensee shall
19		be limited to the Secretary and his or her agents as provided
20		in this Act and to the licensee and its authorized agents and
21		designees. No other person shall have access to the books and
22		records of a licensee under this Act. Any person upon whom a
23		demand for production of confidential supervisory information
24		is made, whether by subpoena, order, or other judicial or
25		administrative process, must withhold production of the
26		confidential supervisory information and must notify the

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1		Secretary of the demand, at which time the Secretary is
2		authorized to intervene for the purpose of enforcing the
3		limitations of this Section or seeking the withdrawal or
4		termination of the attempt to compel production of the
5		confidential supervisory information. The Secretary may impose
6		any conditions and limitations on the disclosure of
7		confidential supervisory information that are necessary to
8		protect the confidentiality of that information. Except as
9		authorized by the Secretary, no person obtaining access to
10		confidential supervisory information may make a copy of the
11		confidential supervisory information. The Secretary may
12		condition a decision to disclose confidential supervisory
13		information on entry of a protective order by the court or
14		administrative tribunal presiding in the particular case or on
15		a written agreement of confidentiality. In a case in which a
16		protective order or agreement has already been entered between
17		parties other than the Secretary, the Secretary may
18		nevertheless condition approval for release of confidential
19		supervisory information upon the inclusion of additional or
20		amended provisions in the protective order. The Secretary may
21		authorize a party who obtained the records for use in one case
22		to provide them to another party in another case, subject to
23		any conditions that the Secretary may impose on either or both
24		parties. The requester shall promptly notify other parties to
25		a case of the release of confidential supervisory information
26		obtained and, upon entry of a protective order, shall provide

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1		copies of confidential supervisory information to the other
2		parties.
3		(f) The Secretary and employees of the Department shall be
4		subject to the restrictions provided in Section 2.5 of the
5		Division of Banking Act, including, without limitation, the
6		restrictions on:
7		(1) owning shares of stock or holding any other equity
8		interest in an entity regulated under this Act or in any
9		corporation or company that owns or controls an entity
10		regulated under this Act;
11		(2) being an officer, director, employee, or agent of
12		an entity regulated under this Act; and
13		(3) obtaining a pawn or accepting a gratuity from an
14		entity regulated under this Act.
15		Section 10-20. Subpoena power of the Secretary.
16		(a) The Secretary shall have the power to issue and to
17		serve subpoenas and subpoenas duces tecum to compel the
18		attendance of witnesses and the production of all books,
19		accounts, records, and other documents and materials relevant
20		to an examination or investigation. The Secretary, or his or
21		her duly authorized representative, shall have power to
22		administer oaths and affirmations to any person.
23		(b) In the event of noncompliance with a subpoena or
24		subpoena duces tecum issued or caused to be issued by the
25		Secretary, the Secretary may, through the Attorney General,

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

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1		requiring sufficient bond conditioned on compliance with the
2		subpoena or subpoena duces tecum. The court shall cause to be
3		endorsed on the order a suitable amount of bond or payment
4		pursuant to which the person named in the order shall be freed,
5		having a due regard to the nature of the case.
6		(d) In addition, the Secretary may, through the Attorney
7		General, seek a writ of attachment or an equivalent order from
8		the circuit court having jurisdiction over the person who has
9		refused to obey a subpoena, who has refused to give testimony,
10		or who has refused to produce the matters described in the
11		subpoena duces tecum.
12		Section 10-25. Inspection of records and reports required
13		of licensee.
14		(a) Inspection of records.
15		(1) The book or computer records, as well as every
16		article or other thing of value so pawned or pledged,
17		shall at all times be open to the inspection of the
18		Secretary, the sheriff of the county, his deputies, or any
19		members of the police force of any city in the county in
20		which such pawnbroker does business. In addition, the
21		Secretary shall be authorized to inspect the books or
22		records of any business he or she has reasonable cause to
23		believe is conducting pawn transactions and should be
24		licensed under this Act.
25		(2) The book or computer records, pawn tickets, or any

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1		other records required by the Secretary under this Act or
2		any rule adopted in accordance with this Act shall be
3		maintained for a period of 3 years after the date on which
4		the record or ticket was prepared. These records and
5		tickets shall be open to inspection of the Secretary at
6		all times during the 3-year period.
7		(b) Daily report.
8		(1) Except as provided in paragraph (2) of this
9		subsection, it shall be the duty of every pawnbroker to
10		make out and deliver to the sheriff of the county in which
11		such pawnbroker does business, on each day before noon, a
12		legible and exact copy from the standard record book, as
13		required in subsection (a) of Section 15-25, that lists
14		all personal property and any other valuable thing
15		received on deposit or purchased during the preceding day,
16		including the exact time when received or purchased, and a
17		description of the person or person by whom left in
18		pledge, or from whom the same were purchased; however, in
19		cities or towns having 25,000 or more inhabitants, a copy
20		of the report shall at the same time also be delivered to
21		the superintendent of police or the chief police officer
22		of such city or town. The report may be made by computer
23		printout or input memory device if the format has been
24		approved by the local law enforcement agency.
25		(2) In counties with more than 3,000,000 inhabitants,
26		a pawnbroker must provide the daily report to the sheriff

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1		only if the pawnshop is located in an unincorporated area
2		of the county. Pawnbrokers located in cities or towns in
3		such counties must deliver such reports to the
4		superintendent of police or the chief police officer of
5		the city or town.
6		(c) Report to the Secretary. The Secretary, as often as
7		the Secretary shall deem necessary or proper, may require a
8		pawnshop to submit a full and detailed report of its
9		operations including, but not limited to, the number of pawns
10		made, the amount advanced on pawn transactions, the number and
11		amount of pawns surrendered to law enforcement, and any
12		information required for purposes of reporting pursuant to
13		Section 10-60. The Secretary shall prescribe the form of the
14		report and establish the date by which the report must be
15		filed.
16		Section 10-30. Suspension; revocation of licenses; fines.
17		(a) Upon written notice to a licensee, the Secretary may
18		suspend or revoke any license issued pursuant to this Act if,
19		in the notice, he or she makes a finding of one or more of the
20		following:
21		(1) that through separate acts or an act or a course of
22		conduct, the licensee has violated any provisions of this
23		Act, any rule adopted by the Department, or any other law,
24		rule, or regulation of this State or the United States;
25		(2) that any fact or condition exists that, if it had

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1		existed at the time of the original application for the
2		license, would have warranted the Secretary in refusing
3		originally to issue the license; or
4		(3) that if a licensee is not an individual, any
5		ultimate equitable owner, officer, director, or member of
6		the licensed partnership, association, corporation, or
7		other entity has acted or failed to act in a way that would
8		be cause for suspending or revoking a license to that
9		party as an individual.
10		(b) No license shall be suspended or revoked, except as
11		provided in this Section, nor shall any licensee be fined
12		without notice of his or her right to a hearing as provided in
13		Section 10-75.
14		(c) The Secretary, on good cause shown that an emergency
15		exists, may suspend any license for a period not exceeding 180
16		days, pending investigation.
17		(d) The provisions of subsection (d) of Section 5-35 shall
18		not affect a licensee's civil or criminal liability for acts
19		committed before surrender of a license.
20		(e) No revocation, suspension, or surrender of any license
21		shall impair or affect the obligation of any preexisting
22		lawful contract between the licensee and any person.
23		(f) Every license issued under this Act shall remain in
24		force and effect until the license expires without renewal, is
25		surrendered, is revoked, or is suspended in accordance with
26		the provisions of this Act, but the Secretary shall have

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1		authority to reinstate a suspended license or to issue a new
2		license to a licensee whose license has been revoked if no fact
3		or condition then exists which would have warranted the
4		Secretary in refusing originally to issue that license under
5		this Act.
6		(g) Whenever the Secretary revokes or suspends a license
7		issued pursuant to this Act or fines a licensee under this Act,
8		he or she shall execute a written order to that effect. The
9		Secretary shall post notice of the order on an agency website
10		maintained by the Secretary or on the Nationwide Multistate
11		Licensing System and Registry and shall serve a copy of the
12		order upon the licensee. Any such order may be reviewed in the
13		manner provided by Section 10-75.
14		(h) If the Secretary finds any person in violation of the
15		grounds set forth in subsection (i), he or she may enter an
16		order imposing one or more of the following penalties:
17		(1) revocation of license;
18		(2) suspension of a license subject to reinstatement
19		upon satisfying all reasonable conditions the Secretary
20		may specify;
21		(3) placement of the licensee or applicant on
22		probation for a period of time and subject to all
23		reasonable conditions as the Secretary may specify;
24		(4) issuance of a reprimand;
25		(5) imposition of a fine not to exceed $25,000 for
26		each count of separate offense; except that a fine may be

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1		imposed not to exceed $75,000 for each separate count of
2		offense of paragraph (2) of subsection (i); or
3		(6) denial of a license.
4		(i) The following acts shall constitute grounds for which
5		the disciplinary actions specified in subsection (h) may be
6		taken:
7		(1) being convicted or found guilty, regardless of
8		pendency of an appeal, of a crime in any jurisdiction that
9		involves fraud, dishonest dealing, or any other act of
10		moral turpitude;
11		(2) fraud, misrepresentation, deceit, or negligence in
12		any pawn transaction;
13		(3) a material or intentional misstatement of fact on
14		an initial or renewal application;
15		(4) insolvency or filing under any provision of the
16		federal Bankruptcy Code as a debtor;
17		(5) failure to account or deliver to any person any
18		property, such as any money, fund, deposit, check, draft,
19		or other document or thing of value, that has come into his
20		or her hands and that is not his or her property or that he
21		or she is not in law or equity entitled to retain, under
22		the circumstances and at the time which has been agreed
23		upon or is required by law or, in the absence of a fixed
24		time, upon demand of the person entitled to such
25		accounting and delivery;
26		(6) failure to disburse funds in accordance with

HB0779 Enrolled - 28 - LRB103 04371 RPS 49377 b
1		agreements;
2		(7) having a license, or the equivalent, to practice
3		any profession or occupation revoked, suspended, or
4		otherwise acted against, including the denial of licensure
5		by a licensing authority of this State or another state,
6		territory, or country for fraud, dishonest dealing, or any
7		other act of moral turpitude;
8		(8) failure to comply with an order of the Secretary
9		or rule made or issued under the provisions of this Act;
10		(9) engaging in activities regulated by this Act
11		without a current, active license unless specifically
12		exempted by this Act;
13		(10) failure to pay in a timely manner any fee,
14		charge, or fine under this Act;
15		(11) failure to maintain, preserve, and keep available
16		for examination all books, accounts, or other documents
17		required by the provisions of this Act and the rules of the
18		Secretary;
19		(12) refusing, obstructing, evading, or unreasonably
20		delaying an investigation, information request, or
21		examination authorized under this Act, or refusing,
22		obstructing, evading, or unreasonably delaying compliance
23		with the Secretary's subpoena or subpoena duces tecum; and
24		(13) failure to comply with or a violation of any
25		provision of this Act.
26		(j) A licensee shall be subject to the disciplinary

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1		actions specified in this Act for violations of subsection (i)
2		by any officer, director, shareholder, joint venture, partner,
3		ultimate equitable owner, or employee of the licensee.
4		(k) A licensee shall be subject to suspension or
5		revocation for unauthorized employee actions only if there is
6		a pattern of repeated violations by employees or the licensee
7		has knowledge of the violations or there is substantial harm
8		to a consumer.
9		(l) Procedures for surrender of a license include the
10		following:
11		(1) The Secretary may, after 10 days' notice by
12		certified mail to the licensee at the address set forth on
13		the license, stating the contemplated action and in
14		general the grounds for the contemplated action and the
15		date, time, and place of a hearing thereon, and after
16		providing the licensee with a reasonable opportunity to be
17		heard at the hearing before the action, fine such licensee
18		an amount not exceeding $25,000 per violation, or revoke
19		or suspend any license issued under this Act if he or she
20		finds that:
21		(A) the licensee has failed to comply with any
22		provision of this Act or any order, decision, finding,
23		rule, regulation, or direction of the Department or
24		Secretary lawfully made pursuant to the authority of
25		this Act; or
26		(B) any fact or condition exists that, if it had

HB0779 Enrolled - 30 - LRB103 04371 RPS 49377 b
1		existed at the time of the original application for
2		the license, clearly would have warranted the
3		Secretary in refusing to issue the license.
4		(2) Any licensee may submit an application to
5		surrender a license, but, upon the Secretary approving the
6		surrender, it shall not affect the licensee's civil or
7		criminal liability for acts committed before surrender or
8		entitle the licensee to a return of any part of the license
9		fee.
10		Section 10-35. Investigation of complaints. The Secretary
11		shall maintain staff and facilities adequate to receive,
12		record, and investigate complaints and inquiries made by any
13		person concerning this Act and any licensees under this Act.
14		Each licensee shall open its books, records, documents, and
15		offices wherever situated to the Secretary or his or her
16		appointees as needed to facilitate such investigations.
17		Section 10-40. Additional investigation and examination
18		authority. In addition to any authority allowed under this
19		Act, the Secretary shall have the authority to conduct
20		investigations and examinations as follows:
21		(1) For purposes of initial licensing, license
22		renewal, license discipline, license conditioning, license
23		revocation or termination, or general or specific inquiry
24		or investigation to determine compliance with this Act,

HB0779 Enrolled - 31 - LRB103 04371 RPS 49377 b
1		the Secretary shall have the authority to access, receive,
2		and use any books, accounts, records, files, documents,
3		information, or evidence, including, but not limited to,
4		the following:
5		(A) criminal, civil, and administrative history
6		information, including nonconviction data as specified
7		in the Criminal Code of 2012;
8		(B) personal history and experience information,
9		including independent credit reports obtained from a
10		consumer reporting agency described in Section 603(p)
11		of the federal Fair Credit Reporting Act; and
12		(C) any other documents, information, or evidence
13		the Secretary deems relevant to the inquiry or
14		investigation, regardless of the location, possession,
15		control, or custody of the documents, information, or
16		evidence.
17		(2) For the purposes of investigating violations or
18		complaints arising under this Act or for the purposes of
19		examination, the Secretary may review, investigate, or
20		examine any licensee, individual, or person subject to
21		this Act as often as necessary in order to carry out the
22		purposes of this Act. The Secretary may direct, subpoena,
23		or order the attendance of and examine under oath or
24		affirmation all persons whose testimony may be required
25		about the pawn transactions or the business or subject
26		matter of any such examination or investigation, and may

HB0779 Enrolled - 32 - LRB103 04371 RPS 49377 b
1		direct, subpoena, or order the person to produce books,
2		accounts, records, files, and any other documents the
3		Secretary deems relevant to the inquiry.
4		(3) Each licensee, individual, or person subject to
5		this Act shall make available to the Secretary upon
6		request the books and records relating to the operations
7		of the licensee, individual, or person subject to this
8		Act. The Secretary shall have access to those books and
9		records and interview the officers, principals, employees,
10		independent contractors, agents, and customers of the
11		licensee, individual, or person subject to this Act
12		concerning their business.
13		(4) Each licensee, individual, or person subject to
14		this Act shall make or compile reports or prepare other
15		information as directed by the Secretary in order to carry
16		out the purposes of this Section, including, but not
17		limited to:
18		(A) accounting compilations;
19		(B) information lists and data concerning pawn
20		transactions in a format prescribed by the Secretary;
21		or
22		(C) other information deemed necessary to carry
23		out the purposes of this Section.
24		(5) In making any examination or investigation
25		authorized by this Act, the Secretary may control access
26		to any documents and records of the licensee or person

HB0779 Enrolled - 33 - LRB103 04371 RPS 49377 b
1		under examination or investigation. The Secretary may take
2		possession of the documents and records or place a person
3		in exclusive charge of the documents and records in the
4		place where they are usually kept. During the period of
5		control, no person shall remove or attempt to remove any
6		of the documents or records, except pursuant to a court
7		order or with the consent of the Secretary. Unless the
8		Secretary has reasonable grounds to believe the documents
9		or records of the licensee have been, or are at risk of
10		being altered or destroyed for purposes of concealing a
11		violation of this Act, the licensee or owner of the
12		documents and records shall have access to the documents
13		or records as necessary to conduct its ordinary business
14		affairs.
15		(6) In order to carry out the purposes of this
16		Section, the Secretary may:
17		(A) retain attorneys, accountants, or other
18		professionals and specialists as examiners, auditors,
19		or investigators to conduct or assist in the conduct
20		of examinations or investigations;
21		(B) enter into agreements or relationships with
22		other government officials or regulatory associations
23		in order to improve efficiencies and reduce regulatory
24		burden by sharing resources, standardized or uniform
25		methods or procedures, and documents, records,
26		information, or evidence obtained under this Section;

HB0779 Enrolled - 34 - LRB103 04371 RPS 49377 b
1		(C) use, hire, contract, or employ public or
2		privately available analytical systems, methods, or
3		software to examine or investigate the licensee,
4		individual, or person subject to this Act;
5		(D) accept and rely on examination or
6		investigation reports made by other government
7		officials, within or outside this State; or
8		(E) accept audit reports made by an independent
9		certified public accountant for the licensee,
10		individual, or person subject to this Act in the
11		course of that part of the examination covering the
12		same general subject matter as the audit and may
13		incorporate the audit report in the report of the
14		examination, report of investigation, or other writing
15		of the Secretary.
16		(7) The authority of this Section shall remain in
17		effect, whether such a licensee, individual, or person
18		subject to this Act acts or claims to act under any
19		licensing or registration law of this State or claims to
20		act without the authority.
21		(8) No licensee, individual, or person subject to
22		investigation or examination under this Section may
23		knowingly withhold, abstract, remove, mutilate, destroy,
24		or secrete any books, records, computer records, or other
25		information.

HB0779 Enrolled - 35 - LRB103 04371 RPS 49377 b
1		Section 10-45. Confidential information. In hearings
2		conducted under this Act, information presented into evidence
3		that was acquired by the licensee when serving any individual
4		in connection with a pawn transaction, including all financial
5		information of the individual, shall be deemed strictly
6		confidential and shall be made available only as part of the
7		record of a hearing under this Act or otherwise (i) when the
8		record is required, in its entirety, for purposes of judicial
9		review or (ii) upon the express written consent of the
10		individual served, or in the case of his or her death or
11		disability, the consent of his or her personal representative.
12		Section 10-50. Confidentiality.
13		(a) In order to promote more effective regulation and
14		reduce regulatory burden through supervisory information
15		sharing, except as otherwise provided in 12 U.S.C. Section
16		5111, the requirements under any federal law or State law
17		regarding the privacy or confidentiality of any information or
18		material provided to the Nationwide Multistate Licensing
19		System and Registry, and any privilege arising under federal
20		or State law, including the rules of any federal or State
21		court, with respect to such information or material, shall
22		continue to apply to information or material after the
23		information or material has been disclosed to the Nationwide
24		Multistate Licensing System and Registry. The information and
25		material may be shared with all State and federal regulatory

HB0779 Enrolled - 36 - LRB103 04371 RPS 49377 b
1		officials with pawnbroker industry oversight authority without
2		the loss of privilege or the loss of confidentiality
3		protections provided by federal law or State law.
4		(b) In order to promote more effective regulation and
5		reduce regulatory burden through supervisory information
6		sharing, the Secretary is authorized to enter agreements or
7		sharing into arrangements with other governmental agencies,
8		the Conference of State Bank Supervisors or other associations
9		representing governmental agencies as established by rule,
10		regulation, or order of the Secretary. The sharing of
11		confidential supervisory information or any information or
12		material described in subsection (a) pursuant to an agreement
13		or sharing arrangement shall not result in the loss of
14		privilege or the loss of confidentiality protections provided
15		by federal law or State law.
16		(c) In order to promote more effective regulation and
17		reduce regulatory burden through supervisory information
18		sharing, information or material that is subject to a
19		privilege or confidentiality under subsection (a) shall not be
20		subject to the following:
21		(1) disclosure under any State law governing the
22		disclosure to the public of information held by an officer
23		or an agency of the State; or
24		(2) subpoena, discovery, or admission into evidence,
25		in any private civil action or administrative process,
26		unless with respect to any privilege held by the

HB0779 Enrolled - 37 - LRB103 04371 RPS 49377 b
1		Nationwide Multistate Licensing System and Registry with
2		respect to the information or material, the person to whom
3		such information or material pertains waives, in whole or
4		in part, in the discretion of that person, that privilege.
5		(d) In order to promote more effective regulation and
6		reduce regulatory burden through supervisory information
7		sharing, any other law relating to the disclosure of
8		confidential supervisory information or any information or
9		material described in subsection (a) that is inconsistent with
10		subsection (a) shall be superseded by the requirements of this
11		Section to the extent the other law provides less
12		confidentiality or a weaker privilege.
13		Section 10-55. Reports of violations. Any person licensed
14		under this Act or any other person may report to the Secretary
15		any information to show that a person subject to this Act is or
16		may be in violation of this Act. A licensee who files a report
17		with the Department that another licensee is engaged in one or
18		more violations pursuant to this Act shall not be the subject
19		of disciplinary action by the Department, unless the
20		Department determines, by a preponderance of the evidence
21		available to the Department, that the reporting person
22		knowingly or recklessly participated in the violation that was
23		reported.
24		Section 10-60. Pawnbroker annual report.

HB0779 Enrolled - 38 - LRB103 04371 RPS 49377 b
1		(a) The Department shall, in conjunction with advice from
2		a professional association that represents 50 or more
3		licensees, issue an annual report, via an Internet-based
4		program, of aggregate pawnbroker activity within 180 days
5		after the beginning of the calendar year. The report shall
6		contain at a minimum:
7		(1) The number of licensed pawnbrokers.
8		(2) The total dollar amount financed.
9		(3) The total number of pawns for each value threshold
10		set forth in subsection (c) of Section 15-10.
11		(4) The total dollar amount of extensions.
12		(5) The total number of extensions for each value
13		threshold set forth in subsection (c) of Section 15-10.
14		(6) The average pawn dollar amount for each value
15		threshold set forth in subsection (c) of Section 15-10.
16		(7) The average monthly finance charge for each value
17		threshold set forth in subsection (c) of Section 15-10.
18		(8) The percentage of pawns surrendered to law
19		enforcement.
20		(9) The percentage of total pawns surrendered to law
21		enforcement by dollar amount.
22		(10) The percentage of pawns redeemed.
23		(11) The percentage of pawns extended.
24		(12) The total number of pawnbroker employees.
25		(13) The total number of licensees reporting.
26		(14) The total number of complaints received and

HB0779 Enrolled - 39 - LRB103 04371 RPS 49377 b
1		resolved by the Department.
2		(15) The total number of defaulted pawn transactions
3		reported to a credit bureau.
4		(16) The total number of defaulted pawn transactions
5		sent to a collection agency.
6		(17) The total number of defaulted pawn transactions
7		resulting in wage garnishment or legal action to collect.
8		(18) The total number of pawn transactions reported to
9		law enforcement.
10		(b) The Secretary may retain qualified persons to prepare
11		and report findings (1) identifying pawns and small dollar
12		loans that are available to Illinois consumers, (2) collecting
13		and analyzing pawns and loan-level data for small dollar
14		loans, and (3) compiling aggregate data and trends for pawns
15		and small dollar loans used by Illinois consumers. The
16		Secretary shall make the report available to the Governor, the
17		General Assembly, and the public.
18		In this subsection, "pawns and small dollar loans" means
19		pawns and lending products with a value of $2,500 or less,
20		including, but not limited to, pawns, consumer installment
21		loans, and other extensions of credit, whether or not offered
22		by entities chartered or licensed in Illinois.
23		Section 10-65. Responsible pawnbroker training; pawnbroker
24		managers and employees.
25		(a) A person who manages or is an employee of a pawnbroker

HB0779 Enrolled - 40 - LRB103 04371 RPS 49377 b
1		that provides pawnbroker services and related functions shall
2		complete, within 90 days after commencing employment, a
3		minimum of 4 hours of training, which may be provided in a
4		classroom or seminar setting or via Internet-based online
5		learning programs, such training shall be provided at the
6		employer's expense and shall be provided by qualified vendor
7		approved by the Secretary. The training subjects shall be
8		established by rule, and may include the following:
9		(1) federal, State, and local laws, administrative
10		rules, and regulations that pertain to the business of
11		being a licensed pawnbroker under this Act;
12		(2) procedures for identifying possible fraudulent
13		transactions;
14		(3) anti-money laundering;
15		(4) store operations, maintenance of records,
16		inventory management, recording and reporting of serial
17		numbers;
18		(5) general product knowledge, including, but not
19		limited to, jewelry and firearms;
20		(6) identification, verification, and weighing of
21		precious metals;
22		(7) inspections by State and local licensing and law
23		enforcement authorities, including hold order procedures;
24		(8) the federal Military Lending Act;
25		(9) pawn forfeits; and
26		(10) security, risk, and crisis management.

HB0779 Enrolled - 41 - LRB103 04371 RPS 49377 b
1		(b) The training may be provided in a classroom or seminar
2		setting or via Internet-based online learning programs, as
3		established by rule. The substance of the training shall be
4		related to the work performed by the registered employee.
5		(c) In addition to the training provided for in
6		subsections (a), registered employees of a pawnbroker shall
7		complete an additional 4 hours of refresher training on
8		subjects to be determined by the employer each calendar year
9		commencing with the calendar year following the employee's
10		first employment anniversary date, which refresher training
11		may be site-specific and may be conducted on the job.
12		(d) It is the responsibility of the pawnbroker or the
13		Secretary-approved qualified vendor to certify, on a form
14		prescribed by the Secretary, that the employee has
15		successfully completed the basic and refresher training. The
16		original form or a copy shall be a permanent record of training
17		completed by the employee and shall be placed in the
18		employee's file with the employer for the period the employee
19		remains with the employer. The original form or a copy shall be
20		given to the employee when his or her employment is
21		terminated. Failure to return the original form or a copy to
22		the employee is grounds for disciplinary action. The employee
23		shall not be required to repeat the required training once the
24		employee has been issued the form. An employer may provide or
25		require additional training.
26		(e) It shall be the responsibility of the pawnbroker and

HB0779 Enrolled - 42 - LRB103 04371 RPS 49377 b
1		the Secretary-approved qualified training vendor to keep and
2		maintain a personal log of all training hours earned along
3		with sufficient documentation necessary for the Secretary to
4		verify the annual training completed for at least 5 years. The
5		personal training log and documentation shall be provided to
6		the Secretary in the same manner as other documentation and
7		records required under this Act.
8		(f) Notwithstanding any other professional license a
9		pawnbroker holds under this Act, no more than 8 hours of annual
10		training shall be required for any one year.
11		(g) The license of a pawnbroker whose managers or
12		employees fail to comply with this Section may be suspended or
13		revoked or may face other disciplinary action.
14		(h) The regulation of pawnbroker employee training is an
15		exclusive power and function of the State. A home rule unit may
16		not regulate pawnbroker employee training or require a
17		pawnbroker that is licensed by the State under this Act, or its
18		employees, to maintain licenses in addition to licensure under
19		the Act, to operate. This subsection is a denial and
20		limitation of home rule powers and functions under subsection
21		(h) of Section 6 of Article VII of the Illinois Constitution.
22		(i) Persons seeking the Secretary's approval to offer the
23		training required by subsection (a) may apply for such
24		approval between August 1 and August 31 every 4 years in a
25		manner prescribed by the Secretary.
26		(j) Persons seeking the Secretary's approval to offer the

HB0779 Enrolled - 43 - LRB103 04371 RPS 49377 b
1		training required by subsection (a) shall submit a
2		nonrefundable application fee of $2,000 or a fee set by rule,
3		to be deposited into the Pawnbroker Regulation Fund. Any
4		changes made to the training module shall be approved by the
5		Secretary.
6		(k) The Secretary shall not unreasonably deny approval of
7		a training module, whether in-person or online, that meets all
8		the requirements of subsection (a). A denial of approval shall
9		include a detailed description of the reasons for the denial.
10		(l) A person approved to provide the training required by
11		subsection (a) shall submit an application for re-approval
12		between August 1 and August 31 of each even-numbered year and
13		include a nonrefundable application fee of $2,000 or a fee set
14		by rule, to be deposited into the Pawnbroker Regulation Fund.
15		Section 10-70. Rules and regulations.
16		(a) In addition to such powers as may be prescribed by this
17		Act, the Department is hereby authorized and empowered to
18		adopt rules consistent with the purposes of this Act,
19		including, but not limited to:
20		(1) rules in connection with the activities of
21		licensees as may be necessary and appropriate for the
22		protection of consumers in this State;
23		(2) rules as may be necessary and appropriate to
24		define improper or fraudulent business practices in
25		connection with the activities of licensees in operating

HB0779 Enrolled - 44 - LRB103 04371 RPS 49377 b
1		as a pawnbroker;
2		(3) rules that define the terms used in this Act and as
3		may be necessary and appropriate to interpret and
4		implement the provisions of this Act; and
5		(4) rules as may be necessary for the enforcement of
6		this Act.
7		(b) The Secretary is hereby authorized and empowered to
8		make specific rulings, demands, and findings that he or she
9		deems necessary for the proper conduct of the pawnbroker
10		industry.
11		(c) A person or entity may make a written application to
12		the Department for a written interpretation of this Act. The
13		Department may then, in its sole discretion, choose to issue a
14		written interpretation. To be valid, a written interpretation
15		must be signed by the Secretary, or his or her designee, and
16		the Department's general counsel or his or her designee. A
17		written interpretation expires 2 years after the date that it
18		was issued.
19		(d) No provision in this Act that imposes liability or
20		establishes violations shall apply to any act taken by a
21		person or entity in conformity with a written interpretation
22		of this Act that is in effect at the time the act is taken,
23		notwithstanding whether the written interpretation is later
24		amended, rescinded, or determined by judicial or other
25		authority to be invalid for any reason.

HB0779 Enrolled - 45 - LRB103 04371 RPS 49377 b
1		Section 10-75. Appeal and review.
2		(a) Any person or entity affected by a decision of the
3		Secretary under any provision of this Act may obtain review of
4		that decision within the Department.
5		(b) The Department may, in accordance with the Illinois
6		Administrative Procedure Act, adopt rules to provide for
7		review within the Department of the Secretary's decisions
8		affecting the rights of entities under this Act. The review
9		shall provide for, at a minimum:
10		(1) appointment of a hearing officer other than a
11		regular employee of the Division of Banking;
12		(2) appropriate procedural rules, specific deadlines
13		for filings, and standards of evidence and of proof; and
14		(3) provision for apportioning costs among parties to
15		the appeal.
16		(c) All final agency determinations of appeals to
17		decisions of the Secretary may be reviewed in accordance with
18		and under the provisions of the Administrative Review Law.
19		Appeals from all final orders and judgments entered by a court
20		in review of any final administrative decision of the
21		Secretary or of any final agency review of a decision of the
22		Secretary may be taken as in other civil cases.
23		Section 10-80. Violations of this Act; Secretary's orders.
24		(a) If the Secretary finds, as the result of examination,
25		investigation, or review of reports submitted by a licensee,

HB0779 Enrolled - 46 - LRB103 04371 RPS 49377 b
1		that the business and affairs of a licensee are not being
2		conducted in accordance with this Act, the Secretary shall
3		notify the licensee of the correction necessary. If a licensee
4		fails to correct such violations, the Secretary shall issue an
5		order requiring immediate correction and compliance with this
6		Act, specifying a reasonable date for performance.
7		(b) The Department may adopt rules to provide for an
8		orderly and timely appeal of all orders within the Department.
9		The rules may include provision for assessment of fees and
10		costs.
11		Section 10-85. Collection of compensation. Unless exempt
12		from licensure under this Act, no person engaged in or
13		offering to engage in any act or service for which a license
14		under this Act is required may bring or maintain any action in
15		any court of this State to collect compensation for the
16		performance of the licensable services without alleging and
17		proving that he or she was the holder of a valid pawnbroker
18		license under this Act at all times during the performance of
19		those services.
20		Section 10-90. Injunction. The Secretary, through the
21		Attorney General, may maintain an action in the name of the
22		People of the State of Illinois and may apply for an injunction
23		in the circuit court to enjoin a person from engaging in
24		unlicensed pawnbroker activity, to restrain any person from

HB0779 Enrolled - 47 - LRB103 04371 RPS 49377 b
1		violating or continuing to violate any of the provisions of
2		this Act, or to file a complaint to take possession and control
3		of a pawnshop for the purpose of examination, reorganization,
4		or liquidation through receivership and to appoint a receiver,
5		which may be the Secretary, a pawnshop, or another suitable
6		person
7		Article 15. Pawn Customer Bill of Rights
8		Section 15-5. General provisions.
9		(a) It is unlawful for an individual or business entity to
10		conduct business in this State using the word "pawn",
11		"pawnshop", or "pawnbroker" in connection with the business or
12		to transact business in this State in a manner that has a
13		substantial likelihood of misleading the public by implying
14		that the business is a pawnshop, without first obtaining a
15		license from the Secretary. It shall be unlawful for any
16		business to advertise in a pawnbroker category, digitally or
17		in print without including that business's pawnbroker and
18		Nationwide Multistate Licensing System and Registry license
19		number.
20		(b) It is unlawful for an entity licensed under this Act to
21		do any of the following:
22		(1) Engage, have engaged, or propose to engage in any
23		unlawful, unfair, deceptive, or abusive act or practice
24		with respect to financial products or services.

HB0779 Enrolled - 48 - LRB103 04371 RPS 49377 b
1		(2) Offer or provide to a consumer any financial
2		product or service not in conformity with this Act or
3		otherwise commit any act or omission in violation of a
4		financial law.
5		(3) Fail or refuse, as required by this Act or any rule
6		or order issued by the Department hereunder, to do any of
7		the following:
8		(A) Permit the Department to access or copy
9		records.
10		(B) Establish or maintain records.
11		(C) Make reports or provide information to the
12		Department.
13		Section 15-10. Fees.
14		(a) It is unlawful for any pawnbroker to charge or collect
15		a greater benefit or percentage upon money advanced, and for
16		the use and forbearance thereof, than the amount specified in
17		subsection (c). Nothing in this Section shall be construed to
18		conflict with the law pertaining to usury and the person
19		receiving money so advanced may hold the moneys to pay any fees
20		in addition to interest.
21		(b) Each pawnbroker, when making a pawn under this
22		Section, must disclose in printed form on the pawn contract
23		the following information to the persons receiving the pawn:
24		(1) the amount of money advanced, which must be
25		designated as the amount pawned;

HB0779 Enrolled - 49 - LRB103 04371 RPS 49377 b
1		(2) the maturity date of the pawn, which must be at
2		least 30 days after the originating date of the pawn;
3		(3) the total pawn interest and service charge payable
4		on the maturity date, which must be designated as the
5		finance charge;
6		(4) the total of payments that must be paid to redeem
7		the pledged goods on the maturity date, which must be
8		designated as the total of payments; and
9		(5) the annual percentage rate, computed according to
10		the regulations adopted by the Consumer Financial
11		Protection Bureau under the federal Truth in Lending Act.
12		(c) Each pawnbroker may contract for and receive a monthly
13		finance charge, including interest and fees not to exceed
14		one-fifth of the pawn amount for pawns under $500; one-sixth
15		of the pawn amount for pawns at or above $500 and less than
16		$1,500; one-eighth of the pawn amount for pawns at or above
17		$1,500 and less than $5,000; and one-twentieth of the pawn
18		amount for pawns at or above $5,000, pursuant to Section
19		15-30, for appraising, investigating title, storing, insuring
20		the pledged property, making daily reports to local law
21		enforcement including enhanced computerized reporting, and
22		complying with regulatory requirements. Such fees, when made
23		and collected, shall not be deemed interest for any purpose of
24		law. A pawnbroker shall not require a customer to pay such fees
25		by means of an electronic fund transfer, as that term is
26		defined in Section 10 of the Electronic Fund Transfer Act,

HB0779 Enrolled - 50 - LRB103 04371 RPS 49377 b
1		including through the use of an automated clearinghouse
2		system.
3		(d) Notwithstanding any inconsistent provision of law, a
4		pawn transaction made pursuant to this Act shall be exempt
5		from the provisions of the Predatory Loan Prevention Act.
6		Section 15-15. Display of fee provision. Every pawnbroker
7		shall at all times have and keep Section 15-10 printed in the
8		English and Spanish languages and framed and posted in a
9		prominent and conspicuous position in its place of business,
10		so that the same shall be plainly legible and visible to all
11		persons depositing or pledging property with such pawnbroker.
12		Section 15-20. Disclosure of article description and pawn
13		terms.
14		(a) Every pawnbroker shall, at the time of making any
15		advancement or pawn, deliver to the person pawning or pledging
16		any property, a memorandum, contract, or note signed by the
17		person pawning the property containing an accurate account and
18		description, in the English language, of the following:
19		(1) All the goods, articles or other things pawned or
20		pledged.
21		(2) The amount of money and the time of pledging the
22		same.
23		(3) The rate of interest to be paid on the pawn.
24		(4) The name and residence of the person making the

HB0779 Enrolled - 51 - LRB103 04371 RPS 49377 b
1		pawn or pledge.
2		(5) The dollar amount of any fees as specified in
3		Section 15-10.
4		(6) A disclosure that by extending the pawn, the fees
5		may exceed the value of the item pawned.
6		(b) The Secretary may adopt rules prescribing the form and
7		content of the disclosures required by subsection (a).
8		Section 15-25. Record requirements.
9		(a) Except in municipalities located in counties having
10		3,000,000 or more inhabitants, every pawnbroker shall keep a
11		standard record book that has been approved by the sheriff of
12		the county in which the pawnbroker does business. In
13		municipalities in counties with 3,000,000 or more inhabitants,
14		the record book shall be approved by the police department of
15		the municipality in which the pawnbroker does business. At the
16		time of each and every pawn or purchase, an accurate account
17		and description, in the English language, of each of the items
18		listed in subsection (a) of Section 15-20 shall be printed,
19		typed, or written in ink in the record book. Such entry shall
20		include the serial number or identification number of items
21		received that bear such number. Except for items purchased
22		from dealers possessing a federal employee identification
23		number who have provided a receipt to the pawnbroker, every
24		pawnbroker shall also record in his book, an accurate account
25		and description, in the English language, of all goods,

HB0779 Enrolled - 52 - LRB103 04371 RPS 49377 b
1		articles, and other things purchased or received for the
2		purpose of resale or items pawned by the pawnbroker from any
3		source, including other pawnshop locations owned by the same
4		pawnbroker, not in the course of a pledge or pawn, the time of
5		such purchase or receipt and the name and address of the person
6		or business which sold or delivered such goods, articles, or
7		other things to the pawnbroker. No entry in such book shall be
8		erased, mutilated, or changed.
9		(b) Every pawnbroker shall require identification to be
10		shown by each person selling or pawning any goods, articles,
11		or other things to the pawnbroker. If the identification shown
12		is a driver's license, State identification card, or consular
13		identification card and contains a photograph of the person
14		being identified, only one form of identification must be
15		shown. If the identification shown is not a driver's license,
16		State identification card, or consular identification card or
17		does not contain a photograph, 2 forms of identification must
18		be shown, and one of the 2 forms of identification must include
19		the person's residence address. These forms of identification
20		shall include, but not be limited to, any of the following:
21		passport, driver's license, social security card, utility
22		bill, employee or student identification card, credit card, or
23		a civic, union, or professional association membership card.
24		In addition, in a municipality with a population of 1,000,000
25		or more inhabitants, if the customer does not have an
26		identification issued by a governmental entity containing a

HB0779 Enrolled - 53 - LRB103 04371 RPS 49377 b
1		photograph of the person being identified, the pawnbroker
2		shall photograph the customer in color and record the
3		customer's name, residence address, date of birth, gender,
4		height, and weight along with the photograph.
5		(c) A county or municipality, including a home rule unit,
6		may 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 than
9		the regulation by this State of a pawnbroker's identification
10		requirements for persons pledging or pawning goods, articles,
11		or other things. A home rule unit may not regulate a
12		pawnbroker's identification requirements for persons pledging
13		or pawning goods, articles, or other things to the pawnbroker
14		in a manner less restrictive than the regulation by this State
15		of a pawnbroker's identification requirements for persons
16		selling or pawning goods, articles, or other things. This
17		Section is a limitation under subsection (i) of Section 6 of
18		Article VII of the Illinois Constitution on the concurrent
19		exercise by home rule units of the powers and functions
20		exercised by this State.
21		(d) A pawnbroker may maintain the records required by
22		subsection (a) in computer form if the computer form has been
23		approved by the Secretary or his or her designee, the sheriff
24		of the county in which the shop is located, and the police
25		department of the municipality in which the shop is located.
26		(e) Records, including reports to the Secretary or his or

HB0779 Enrolled - 54 - LRB103 04371 RPS 49377 b
1		her designee, maintained by pawnbrokers shall be confidential,
2		and no disclosure of pawnbroker records shall be made, except
3		disclosures authorized by this Act or ordered by a court of
4		competent jurisdiction. No record transferred to a
5		governmental official shall be improperly disclosed, however,
6		use of those records as evidence of a felony or misdemeanor
7		shall be a proper purpose.
8		(f) Pawnbrokers and their associations may lawfully give
9		appropriate governmental agencies computer equipment for the
10		purpose of transferring information pursuant to this Act.
11		Section 15-30. Replacement of articles or property;
12		insurance.
13		(a) If any articles or property pledged are lost or
14		rendered inoperable, the pawnbroker shall replace the articles
15		or property with identical articles or property, except that
16		if the pawnbroker cannot reasonably obtain identical articles
17		or property, the pawnbroker shall replace the articles or
18		property with like articles or property.
19		(b) No pawnbroker shall conduct business in this State,
20		unless the pawnbroker maintains insurance coverage covering
21		all hazards equal to at least 2 times the aggregate value of
22		the outstanding pawns for items held in pawn. Such insurance
23		shall be obtained from an insurance company authorized to do
24		business in Illinois.
25		(c) The pawnbroker shall file a copy of proof of insurance

HB0779 Enrolled - 55 - LRB103 04371 RPS 49377 b
1		coverage with the Secretary. A pawnbroker or an insurance
2		company shall not cancel the insurance coverage, except upon
3		notice to the Secretary by certified mail, return receipt
4		requested. The cancellation is not effective until 30 days
5		after the Secretary receives the notice.
6		Section 15-35. Minors. No pawnbroker shall purchase, take,
7		or receive any pawn, any property of any kind from any minor
8		who is under 18 years of age, or the ownership of which is in,
9		or which is claimed by, any such minor, or which may be in the
10		possession or under the control of any such minor.
11		Section 15-40. Intoxicated persons; persons convicted of
12		theft. No pawnbroker shall knowingly or recklessly purchase or
13		take any article in pawn or purchase from any person appearing
14		to be intoxicated, nor from any person known to have been
15		convicted of theft. A law enforcement officer may provide such
16		criminal conviction information to a pawnbroker. Such
17		information must be provided in writing.
18		Section 15-45. Altered property; serial number and
19		manufacturer's identification number.
20		(a) No pawnbroker shall receive or purchase any article if
21		the manufacturer's make, model, or serial number, personal
22		identification number, or identifying marks engraved or etched
23		upon an item of personal property has been removed, altered,

HB0779 Enrolled - 56 - LRB103 04371 RPS 49377 b
1		or obliterated.
2		(b) The prohibition in subsection (a) does not apply if
3		the article's manufacturer's make, model, or serial number,
4		personal identification number, or identifying marks have been
5		worn in the ordinary course of use. However, no article
6		described in this subsection (b) shall be sold or transferred
7		to another pawnshop location of such pawnbroker for a period
8		of 15 days after the delivery of the copy and statement
9		required by subsection (b) of Section 10-25 required to be
10		delivered to the officer or officers named therein.
11		Section 15-50. Sale of property.
12		(a) No personal property pledged or received on deposit by
13		any pawnbroker shall be permitted to be redeemed from such
14		pawnbroker for a period of 48 hours after the delivery of the
15		copy and statement required by subsection (b) of Section 10-25
16		to be delivered to the officer or officers named therein.
17		(b) No personal property purchased by any pawnbroker shall
18		be sold or removed from the place of business or transferred to
19		another pawnshop location of such pawnbroker for a period of
20		10 days after the delivery of the copy and statement required
21		by subsection (b) of Section 10-25 to be delivered to the
22		officer or officers named therein.
23		(c) If the pawner fails to repay or extend the pawn during
24		the period specified on the pawn ticket, the pawnbroker shall
25		automatically extend a grace period of 30 days after the

HB0779 Enrolled - 57 - LRB103 04371 RPS 49377 b
1		default date on the pawn during which the pawnbroker shall not
2		dispose of or sell the personal property pawned. The parties
3		may agree to extend or renew a pawn upon terms agreed upon by
4		the parties, if the terms comply with the requirements of this
5		Act. Title to the pledged property transfers to the pawnbroker
6		after the default date grace period expires or upon expiration
7		of an agreed extension.
8		(d) A county or municipality, including a home rule unit,
9		may regulate holding periods in a manner that is more
10		restrictive than the regulation provided in this Section.
11		(e) A home rule unit may not regulate the holding periods
12		in this Section in a manner less restrictive than the
13		regulation by this State. This Section is a limitation under
14		subsection (i) of Section 6 of Article VII of the Illinois
15		Constitution on the concurrent exercise by home rule units of
16		the powers and functions exercised by this State.
17		Section 15-55. Hold order.
18		(a) For the purposes of this Section, "hold order" means a
19		written legal instrument issued to a pawnbroker by a law
20		enforcement officer commissioned by the law enforcement agency
21		of the municipality or county that licenses and regulates the
22		pawnbroker, evidencing a criminal law enforcement
23		investigation, and ordering the pawnbroker to retain physical
24		possession of pawned goods in the possession of the pawnbroker
25		or property purchased by and in the possession of the

HB0779 Enrolled - 58 - LRB103 04371 RPS 49377 b
1		pawnbroker and to not return, sell, or otherwise dispose of
2		such property as such property is believed to be
3		misappropriated goods.
4		(b) Upon written notice from a law enforcement officer
5		indicating that property in the possession of a pawnbroker and
6		subject to a hold order is needed for the purpose of furthering
7		a criminal investigation and prosecution, the pawnbroker shall
8		release the property subject to the hold order to the custody
9		of the law enforcement officer for such purpose and the law
10		enforcement officer shall provide a written acknowledgment
11		that the property has been released to the officer. The
12		release of the property to the custody of the law enforcement
13		officer shall not be considered a waiver or release of the
14		pawnbroker's property rights or interest in the property. Upon
15		completion of the criminal investigation, the property shall
16		be returned to the pawnbroker who consented to its release;
17		except that:
18		(1) if the criminal investigation took place within a
19		county or counties with a population of less than 300,000
20		and that investigation:
21		(A) has determined that the property is stolen
22		property,
23		(B) has determined that the fair market value of
24		the stolen property is $500 or less,
25		(C) has identified the rightful owner of the
26		stolen property, and

HB0779 Enrolled - 59 - LRB103 04371 RPS 49377 b
1		(D) contains a court-admissible sworn statement by
2		the rightful owner that they are the true owners of the
3		stolen property, then law enforcement shall return the
4		property to that owner without the payment of the
5		money advanced by the pawnbroker or any costs or
6		charges of any kind that the pawnbroker may have
7		placed upon the same; or
8		(2) if the criminal investigation took place within a
9		county or counties with a population of more than 300,000
10		and that investigation:
11		(A) has determined that the property is stolen
12		property,
13		(B) has determined that the then-fair market value
14		of the stolen property is $1,000 or less,
15		(C) has identified the rightful owner of the
16		stolen property, and
17		(D) contains a court-admissible sworn statement by
18		the rightful owner that they are the true owners of the
19		stolen property, then law enforcement shall return the
20		property to that owner without the payment of the
21		money advanced by the pawnbroker or any costs or
22		charges of any kind that the pawnbroker may have
23		placed upon the same.
24		(c) After the return of said property, the pawnbroker
25		shall not be liable to any private person or government entity
26		for any further claims on the returned property. Law

HB0779 Enrolled - 60 - LRB103 04371 RPS 49377 b
1		enforcement shall provide all information related to such
2		persons involved in the investigation to the pawnbroker,
3		including the investigative report, without the need for a
4		subpoena, court order, or further legal action of government
5		filing. The hold order shall expire on the 120th day after it
6		is issued, at which time the pawnbroker may exercise its
7		rights under any applicable pawn ticket or extension. If the
8		law enforcement officer has not completed the criminal
9		investigation within 120 days after the issuance of the hold
10		order, the officer shall immediately return any property in
11		law enforcement custody to the pawnbroker or obtain and
12		furnish to the pawnbroker a warrant for a maximum 120-day hold
13		order extension and, as applicable, continued law enforcement
14		custody of the property.
15		The pawnbroker shall not release or dispose of the
16		property, except pursuant to a court order or the expiration
17		of the holding period of the hold order, including all
18		extensions.
19		In cases where criminal charges have been filed and the
20		property may be needed as evidence, the prosecuting attorney
21		shall notify the pawnbroker in writing. The notice shall
22		contain the case number, the style of the case, and a
23		description of the property. The pawnbroker shall hold the
24		property until receiving notice of the disposition of the case
25		from the prosecuting attorney. The prosecuting attorney shall
26		notify the pawnbroker and claimant in writing within 15 days

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1		after the disposition of the case.
2		(d) A hold order, and a foregoing notice of criminal
3		charges, must specify:
4		(1) the name and address of the pawnbroker;
5		(2) the law enforcement investigation number, the
6		name, title, and identification number of the law
7		enforcement officer placing the hold order or the court
8		placing the hold order;
9		(3) a complete description of the property to be held,
10		including model number and serial number if available, to
11		law enforcement;
12		(4) the name of the alleged owner or person reporting
13		the alleged misappropriated property, unless otherwise
14		prohibited by law;
15		(5) the mailing address of the pawnbroker where the
16		property is held; and
17		(6) the issuance and expiration date of the holding
18		period.
19		(e) The pawnbroker or the pawnbroker's representative must
20		sign and date a copy of the hold order as evidence of receipt
21		of the hold order and the beginning of the 120-day holding
22		period.
23		Article 20. Consumer Fraud Protections
24		Section 20-5. Enforcement; Consumer Fraud and Deceptive

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1		Business Practices Act. The Attorney General may enforce a
2		violation of Article 15 of this Act as an unlawful practice
3		under the Consumer Fraud and Deceptive Business Practices Act.
4		Article 25. Transition provisions
5		Section 25-5. Savings provisions.
6		(a) This Act is intended to replace the Pawnbroker
7		Regulation Act in all respects.
8		(b) Beginning on the effective date of this Act, the
9		rights, powers, and duties exercised by the Department of
10		Financial and Professional Regulation under the Pawnbroker
11		Regulation Act shall continue to be vested in, to be the
12		obligation of, and to be exercised by the Department of
13		Financial and Professional Regulation under the provisions of
14		this Act.
15		(c) This Act does not affect any act done, ratified, or
16		cancelled, any right occurring or established, or any action
17		or proceeding commenced in an administrative, civil, or
18		criminal cause before the effective date of this Act by the
19		Department of Financial and Professional Regulation under the
20		Pawnbroker Regulation Act. Those actions or proceedings may be
21		prosecuted and continued by the Department of Financial and
22		Professional Regulation under this Act.
23		(d) This Act does not affect any license, certificate,
24		permit, or other form of licensure issued by the Department of

HB0779 Enrolled - 63 - LRB103 04371 RPS 49377 b
1		Financial and Professional Regulation under the Pawnbroker
2		Regulation Act. All such licenses, certificates, permits, or
3		other form of licensure shall continue to be valid under the
4		terms and conditions of this Act.
5		(e) The rules adopted by the Department of Financial and
6		Professional Regulation relating to the Pawnbroker Regulation
7		Act, unless inconsistent with the provisions of this Act, are
8		not affected by this Act, and on the effective date of this
9		Act, those rules become rules under this Act.
10		(f) This Act does not affect any discipline, suspension,
11		or termination that has occurred under the Pawnbroker
12		Regulation Act or other predecessor Act. Any action for
13		discipline, suspension, or termination instituted under the
14		Pawnbroker Regulation Act shall be continued under this Act.
15		Article 90. Amendatory Provisions
16		Section 90-5. The Division of Banking Act is amended by
17		changing Sections 2.5 and 5 as follows:
18		(20 ILCS 3205/2.5)
19		Sec. 2.5. Prohibited activities.
20		(a) For the purposes of this Section, "regulated entity"
21		means any person, business, company, corporation, institution,
22		or other entity who is subject to regulation by the Office of
23		Banks and Real Estate under Sections 3 and 46 of the Illinois

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1		Banking Act, Section 1-5 of the Illinois Savings and Loan Act
2		of 1985, Section 1004 of the Savings Bank Act, Section 1-3 of
3		the Residential Mortgage License Act of 1987, Section 2-4 of
4		the Corporate Fiduciary Act, Section 3.02 of the Illinois Bank
5		Holding Company Act of 1957, the Savings and Loan Share and
6		Account Act, Section 1.5 of the Pawnbroker Regulation Act of
7		2023, Section 3 of the Foreign Banking Office Act, or Section
8		30 of the Electronic Fund Transfer Act.
9		(b) The Commissioner and the deputy commissioners shall
10		not be an officer, director, employee, or agent of a regulated
11		entity or of a corporation or company that owns or controls a
12		regulated entity.
13		The Commissioner and the deputy commissioners shall not
14		own shares of stock or hold any other equity interest in a
15		regulated entity or in a corporation or company that owns or
16		controls a regulated entity. If the Commissioner or a deputy
17		commissioner owns shares of stock or holds an equity interest
18		in a regulated entity at the time of appointment, he or she
19		shall dispose of such shares or other equity interest within
20		120 days from the date of appointment.
21		The Commissioner and the deputy commissioners shall not
22		directly or indirectly obtain a loan from a regulated entity
23		or accept a gratuity from a regulated entity that is intended
24		to influence the performance of official duties.
25		(c) Employees of the Office of Banks and Real Estate shall
26		not be officers, directors, employees, or agents of a

HB0779 Enrolled - 65 - LRB103 04371 RPS 49377 b
1		regulated entity or of a corporation or company that owns or
2		controls a regulated entity.
3		Except as provided by standards which the Office of Banks
4		and Real Estate may establish, employees of the Office of
5		Banks and Real Estate shall not own shares of stock or hold any
6		other equity interest in a regulated entity or in a
7		corporation or company that owns or controls a regulated
8		entity, or directly or indirectly obtain a loan from a
9		regulated entity, or accept a gratuity from a regulated entity
10		that is intended to influence the performance of official
11		duties. However, in no case shall an employee of the Office of
12		Banks and Real Estate participate in any manner in the
13		examination or direct regulation of a regulated entity in
14		which the employee owns shares of stock or holds any other
15		equity interest, or which is servicing a loan to which the
16		employee is an obligor.
17		(d) If the Commissioner, a deputy commissioner, or any
18		employee of the Office of Banks and Real Estate properly
19		obtains a loan or extension of credit from an entity that is
20		not a regulated entity, and the loan or extension of credit is
21		subsequently acquired by a regulated entity or the entity
22		converts to become a regulated entity after the loan is made,
23		such purchase by or conversion to a regulated entity shall not
24		cause the loan or extension of credit to be deemed a violation
25		of this Section.
26		Nothing in this Section shall be deemed to prevent the

HB0779 Enrolled - 66 - LRB103 04371 RPS 49377 b
1		ownership of a checking account, a savings deposit account, a
2		money market account, a certificate of deposit, a credit or
3		debit card account, or shares in open-end investment companies
4		registered with the Securities and Exchange Commission
5		pursuant to the federal Investment Company Act of 1940 and the
6		Securities Act of 1933 (commonly referred to as mutual or
7		money market funds).
8		(e) No Commissioner, deputy commissioner, employee, or
9		agent of the Office of Banks and Real Estate shall, either
10		during or after the holding of his or her term of office or
11		employment, disclose confidential information concerning any
12		regulated entity or person except as authorized by law or
13		prescribed by rule. "Confidential information", as used in
14		this Section, means any information that the person or officer
15		obtained during his or her term of office or employment that is
16		not available from the Office of Banks and Real Estate
17		pursuant to a request under the Freedom of Information Act.
18		(Source: P.A. 97-492, eff. 1-1-12.)
19		(20 ILCS 3205/5) (from Ch. 17, par. 455)
20		Sec. 5. Powers. In addition to all the other powers and
21		duties provided by law, the Commissioner shall have the
22		following powers:
23		(a) To exercise the rights, powers and duties formerly
24		vested by law in the Director of Financial Institutions under
25		the Illinois Banking Act.

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1		(b) To exercise the rights, powers and duties formerly
2		vested by law in the Department of Financial Institutions
3		under "An act to provide for and regulate the administration
4		of trusts by trust companies", approved June 15, 1887, as
5		amended.
6		(c) To exercise the rights, powers and duties formerly
7		vested by law in the Director of Financial Institutions under
8		"An act authorizing foreign corporations, including banks and
9		national banking associations domiciled in other states, to
10		act in a fiduciary capacity in this state upon certain
11		conditions herein set forth", approved July 13, 1953, as
12		amended.
13		(c-5) To exercise all of the rights, powers, and duties
14		granted to the Director or Secretary under the Illinois
15		Banking Act, the Corporate Fiduciary Act, the Electronic Fund
16		Transfer Act, the Illinois Bank Holding Company Act of 1957,
17		the Savings Bank Act, the Illinois Savings and Loan Act of
18		1985, the Savings and Loan Share and Account Act, the
19		Residential Mortgage License Act of 1987, and the Pawnbroker
20		Regulation Act of 2023.
21		(c-15) To enter into cooperative agreements with
22		appropriate federal and out-of-state state regulatory agencies
23		to conduct and otherwise perform any examination of a
24		regulated entity as authorized under the Illinois Banking Act,
25		the Corporate Fiduciary Act, the Electronic Fund Transfer Act,
26		the Illinois Bank Holding Company Act of 1957, the Savings

HB0779 Enrolled - 68 - LRB103 04371 RPS 49377 b
1		Bank Act, the Illinois Savings and Loan Act of 1985, the
2		Residential Mortgage License Act of 1987, and the Pawnbroker
3		Regulation Act of 2023.
4		(d) Whenever the Commissioner is authorized or required by
5		law to consider or to make findings regarding the character of
6		incorporators, directors, management personnel, or other
7		relevant individuals under the Illinois Banking Act, the
8		Corporate Fiduciary Act, the Pawnbroker Regulation Act of
9		2023, or at other times as the Commissioner deems necessary
10		for the purpose of carrying out the Commissioner's statutory
11		powers and responsibilities, the Commissioner shall consider
12		criminal history record information, including nonconviction
13		information, pursuant to the Criminal Identification Act. The
14		Commissioner shall, in the form and manner required by the
15		Illinois State Police and the Federal Bureau of Investigation,
16		cause to be conducted a criminal history record investigation
17		to obtain information currently contained in the files of the
18		Illinois State Police or the Federal Bureau of Investigation,
19		provided that the Commissioner need not cause additional
20		criminal history record investigations to be conducted on
21		individuals for whom the Commissioner, a federal bank
22		regulatory agency, or any other government agency has caused
23		such investigations to have been conducted previously unless
24		such additional investigations are otherwise required by law
25		or unless the Commissioner deems such additional
26		investigations to be necessary for the purposes of carrying

HB0779 Enrolled - 69 - LRB103 04371 RPS 49377 b
1		out the Commissioner's statutory powers and responsibilities.
2		The Illinois State Police shall provide, on the Commissioner's
3		request, information concerning criminal charges and their
4		disposition currently on file with respect to a relevant
5		individual. Information obtained as a result of an
6		investigation under this Section shall be used in determining
7		eligibility to be an incorporator, director, management
8		personnel, or other relevant individual in relation to a
9		financial institution or other entity supervised by the
10		Commissioner. Upon request and payment of fees in conformance
11		with the requirements of Section 2605-400 of the Illinois
12		State Police Law, the Illinois State Police is authorized to
13		furnish, pursuant to positive identification, such information
14		contained in State files as is necessary to fulfill the
15		request.
16		(e) When issuing charters, permits, licenses, or other
17		authorizations, the Commissioner may impose such terms and
18		conditions on the issuance as he deems necessary or
19		appropriate. Failure to abide by those terms and conditions
20		may result in the revocation of the issuance, the imposition
21		of corrective orders, or the imposition of civil money
22		penalties.
23		(f) If the Commissioner has reasonable cause to believe
24		that any entity that has not submitted an application for
25		authorization or licensure is conducting any activity that
26		would otherwise require authorization or licensure by the

HB0779 Enrolled - 70 - LRB103 04371 RPS 49377 b
1		Commissioner, the Commissioner shall have the power to
2		subpoena witnesses, to compel their attendance, to require the
3		production of any relevant books, papers, accounts, and
4		documents, and to conduct an examination of the entity in
5		order to determine whether the entity is subject to
6		authorization or licensure by the Commissioner or the
7		Division. If the Secretary determines that the entity is
8		subject to authorization or licensure by the Secretary, then
9		the Secretary shall have the power to issue orders against or
10		take any other action, including initiating a receivership
11		against the unauthorized or unlicensed entity.
12		(g) The Commissioner may, through the Attorney General,
13		request the circuit court of any county to issue an injunction
14		to restrain any person from violating the provisions of any
15		Act administered by the Commissioner.
16		(h) Whenever the Commissioner is authorized to take any
17		action or required by law to consider or make findings, the
18		Commissioner may delegate or appoint, in writing, an officer
19		or employee of the Division to take that action or make that
20		finding.
21		(i) Whenever the Secretary determines that it is in the
22		public's interest, he or she may publish any cease and desist
23		order or other enforcement action issued by the Division.
24		(Source: P.A. 102-538, eff. 8-20-21.)
25		(205 ILCS 510/Act rep.)

HB0779 Enrolled - 71 - LRB103 04371 RPS 49377 b
1		Section 90-10. The Pawnbroker Regulation Act is repealed.
2		Section 90-15. The Uniform Commercial Code is amended by
3		changing Section 9-201 as follows:
4		(810 ILCS 5/9-201) (from Ch. 26, par. 9-201)
5		Sec. 9-201. General effectiveness of security agreement.
6		(a) General effectiveness. Except as otherwise provided in
7		the Uniform Commercial Code, a security agreement is effective
8		according to its terms between the parties, against purchasers
9		of the collateral, and against creditors.
10		(b) Applicable consumer laws and other law. A transaction
11		subject to this Article is subject to any applicable rule of
12		law, statute, or regulation which establishes a different rule
13		for consumers, including:
14		(1) the Retail Installment Sales Act;
15		(2) the Motor Vehicle Retail Installment Sales Act;
16		(3) Article II of Chapter 3 of the Illinois Vehicle
17		Code;
18		(4) Article IIIB of the Boat Registration and Safety
19		Act;
20		(5) the Pawnbroker Regulation Act of 2023;
21		(6) the Motor Vehicle Leasing Act;
22		(7) the Consumer Installment Loan Act; and
23		(8) the Consumer Deposit Security Act of 1987.
24		(c) Other applicable law controls. In case of conflict

HB0779 Enrolled - 72 - LRB103 04371 RPS 49377 b
1		between this Article and a rule of law, statute, or regulation
2		described in subsection (b), the rule of law, statute, or
3		regulation controls. Failure to comply with a rule of law,
4		statute, or regulation described in subsection (b) has only
5		the effect such rule of law, statute, or regulation specifies.
6		(d) Further deference to other applicable law. This
7		Article does not:
8		(1) validate any rate, charge, agreement, or practice
9		that violates a rule of law, statute, or regulation
10		described in subsection (b); or
11		(2) extend the application of the rule of law,
12		statute, or regulation to a transaction not otherwise
13		subject to it.
14		(Source: P.A. 91-893, eff. 7-1-01.)
15		Section 90-20. The Consumer Fraud and Deceptive Business
16		Practices Act is amended by adding Section 2BBBB as follows:
17		(815 ILCS 505/2BBBB new)
18		Sec. 2BBBB. Violations of the Pawnbroker Regulation Act of
19		2023. Any person who violates Article 15 of the Pawnbroker
20		Regulation Act of 2023 commits an unlawful practice within the
21		meaning of this Act.
22		Article 99. Severability; Effective Date

HB0779 Enrolled - 73 - LRB103 04371 RPS 49377 b
1		Section 99-97. Severability. The provisions of this Act
2		are severable under Section 1.31 of the Statute on Statutes.