Bill Amendment: IL SB2234 | 2023-2024 | 103rd General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: BUSINESS TRUTH IN LENDING ACT
Status: 2024-05-31 - Rule 19(a) / Re-referred to Rules Committee [SB2234 Detail]
Download: Illinois-2023-SB2234-Senate_Amendment_002.html
Bill Title: BUSINESS TRUTH IN LENDING ACT
Status: 2024-05-31 - Rule 19(a) / Re-referred to Rules Committee [SB2234 Detail]
Download: Illinois-2023-SB2234-Senate_Amendment_002.html
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1 | AMENDMENT TO SENATE BILL 2234 | ||||||
2 | AMENDMENT NO. ______. Amend Senate Bill 2234 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 1. Short title. This Act may be cited as the | ||||||
5 | Consumer Protections for Small Business Act.
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6 | Section 2. Purpose and construction. The purpose of this | ||||||
7 | Act is to protect business owners. This Act shall be liberally | ||||||
8 | construed to effectuate its purpose.
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9 | Section 5. Definitions. As used in this Act: | ||||||
10 | "Applicant" means a person who has submitted an | ||||||
11 | application for a license under this Act. | ||||||
12 | "Closed-end financing" means a closed-end extension of | ||||||
13 | credit, secured or unsecured, recourse or nonrecourse, | ||||||
14 | including equipment financing that does not meet the | ||||||
15 | definition of a lease under Section 2A-103 of the Uniform |
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1 | Commercial Code, that the recipient does not intend to use for | ||||||
2 | personal, family, or household purposes. "Closed-end | ||||||
3 | financing" includes financing with an established principal | ||||||
4 | amount and duration. | ||||||
5 | "Commercial financing database" means a reporting database | ||||||
6 | certified by the Department as effective in receiving a report | ||||||
7 | of commercial financing made under this Act. | ||||||
8 | "Commercial financing database provider" means an entity | ||||||
9 | that provides a reporting database certified by the Department | ||||||
10 | under this Act. | ||||||
11 | "Commercial financing" means open-end financing, | ||||||
12 | closed-end financing, sales-based financing, factoring | ||||||
13 | transaction, or other form of financing, the proceeds of which | ||||||
14 | the recipient does not intend to use primarily for personal, | ||||||
15 | family, or household purposes. For purposes of determining | ||||||
16 | whether a financing is a commercial financing, the provider | ||||||
17 | may rely on any statement of intended purposes by the | ||||||
18 | recipient. The statement may be a separate statement signed by | ||||||
19 | the recipient; may be contained in the financing application, | ||||||
20 | financing agreement, or other document signed or consented to | ||||||
21 | by the recipient; or may be provided orally by the recipient so | ||||||
22 | long as it is documented in the recipient's application file | ||||||
23 | by the provider. Electronic signatures and consents are valid | ||||||
24 | for purposes of the foregoing sentence. The provider shall not | ||||||
25 | be required to ascertain that the proceeds of a commercial | ||||||
26 | financing are used in accordance with the recipient's |
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1 | statement of intended purposes. | ||||||
2 | "Department" means the Department of Financial and | ||||||
3 | Professional Regulation. | ||||||
4 | "Division of Financial Institutions" or "Division" means | ||||||
5 | the Division of Financial Institutions of the Department of | ||||||
6 | Financial and Professional Regulation. | ||||||
7 | "Factoring transaction" means an accounts receivable | ||||||
8 | purchase transaction that includes an agreement to purchase, | ||||||
9 | transfer, or sell a legally enforceable claim for payment held | ||||||
10 | by a recipient for goods the recipient has supplied or | ||||||
11 | services the recipient has rendered that have been ordered but | ||||||
12 | for which payment has not yet been made. | ||||||
13 | "Finance charge" means the cost of financing as a dollar | ||||||
14 | amount. "Finance charge" includes any charge payable directly | ||||||
15 | or indirectly by the recipient and imposed directly or | ||||||
16 | indirectly by the provider as an incident to or a condition of | ||||||
17 | the extension of financing. "Finance charge" includes any | ||||||
18 | charges as determined by the Secretary. For the purposes of an | ||||||
19 | open-end financing, "finance charge" means the maximum amount | ||||||
20 | of credit available to the recipient, in each case, that is | ||||||
21 | drawn and held for the duration of the term or draw period. For | ||||||
22 | the purposes of a factoring transaction, "finance charge" | ||||||
23 | includes the discount taken on the face value of the accounts | ||||||
24 | receivable. In addition, the finance charge shall include any | ||||||
25 | charges determined by the Secretary. | ||||||
26 | "Open-end financing" means an agreement for one or more |
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1 | extensions of open-end credit, secured or unsecured, that the | ||||||
2 | recipient does not intend to use the proceeds of primarily for | ||||||
3 | personal, family, or household purposes. "Open-end financing" | ||||||
4 | includes credit extended by a provider under a plan in which: | ||||||
5 | (i) the provider reasonably contemplates repeated | ||||||
6 | transactions; (ii) the provider may impose a finance charge | ||||||
7 | from time to time on an outstanding unpaid balance; and (iii) | ||||||
8 | the amount of credit that may be extended to the recipient | ||||||
9 | during the term of the plan is generally made available to the | ||||||
10 | extent that any outstanding balance is repaid. | ||||||
11 | "Person" means an individual, entity, corporation, | ||||||
12 | partnership, limited liability company, joint venture, | ||||||
13 | association, joint stock company, trust, or unincorporated | ||||||
14 | organization, including, but not limited to, a sole | ||||||
15 | proprietorship. | ||||||
16 | "Provider" means a person who extends a specific offer of | ||||||
17 | commercial financing to a recipient. "Provider", unless | ||||||
18 | otherwise exempt, includes a person who solicits and presents | ||||||
19 | specific offers of commercial financing on behalf of a third | ||||||
20 | party. The mere extension of a specific offer or provision of | ||||||
21 | disclosures for a commercial financing, is not sufficient to | ||||||
22 | conclude that a provider is originating, making, funding, or | ||||||
23 | providing commercial financing. "Provider" does not include: | ||||||
24 | (1) a bank, trust company, or industrial loan company, | ||||||
25 | or any subsidiary or affiliate thereof, doing business | ||||||
26 | under the authority of, or in accordance with, a license, |
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1 | certificate or charter issued by the United States, this | ||||||
2 | State, or any other state, district, territory, or | ||||||
3 | commonwealth of the United States that is authorized to | ||||||
4 | transact business in this State; | ||||||
5 | (2) a federally chartered savings and loan | ||||||
6 | association, federal savings bank, or federal credit | ||||||
7 | union, or any subsidiary or affiliate thereof, that is | ||||||
8 | authorized to transact business in this State; | ||||||
9 | (3) a savings and loan association, savings bank, or | ||||||
10 | credit union, or any subsidiary or affiliate thereof, | ||||||
11 | organized under the laws of this State or any other state | ||||||
12 | that is authorized to transact business in this State; | ||||||
13 | (4) a lender regulated under the federal Farm Credit | ||||||
14 | Act; and | ||||||
15 | (5) a person acting as a technology services provider | ||||||
16 | to an entity described by sub-paragraphs (1), (2), or (3) | ||||||
17 | for use as part of that entity's commercial financing | ||||||
18 | program, provided the person has no interest, or | ||||||
19 | arrangement, or agreement to purchase any interest in the | ||||||
20 | commercial financing extended by the entity in connection | ||||||
21 | with the program. | ||||||
22 | "Recipient" means a person who applies for commercial | ||||||
23 | financing and is made a specific offer of commercial financing | ||||||
24 | by a provider. "Recipient" includes an authorized | ||||||
25 | representative of a person who applies for commercial | ||||||
26 | financing and is made a specific offer of commercial financing |
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1 | by a provider. "Recipient" does not include a person acting as | ||||||
2 | a broker is not a recipient in a transaction they broker. | ||||||
3 | "Sales-based financing" means a transaction that is repaid | ||||||
4 | by the recipient to the provider, over time, as a percentage of | ||||||
5 | sales or revenue, in which the payment amount may increase or | ||||||
6 | decrease according to the volume of sales made or revenue | ||||||
7 | received by the recipient or a transaction that includes a | ||||||
8 | true-up mechanism where the financing is repaid as a fixed | ||||||
9 | payment but provides for a reconciliation process that adjusts | ||||||
10 | the payment to an amount that is a percentage of sales or | ||||||
11 | revenue. | ||||||
12 | "Secretary" means the Secretary of Financial and | ||||||
13 | Professional Regulation or a person authorized by the | ||||||
14 | Secretary to perform the Secretary's responsibilities under | ||||||
15 | this Act. | ||||||
16 | "Specific offer" means the specific terms of commercial | ||||||
17 | financing, including price or amount, that is quoted to a | ||||||
18 | recipient based on information obtained from or about the | ||||||
19 | recipient that, if accepted by a recipient, shall be binding | ||||||
20 | on the provider, as applicable, subject to any specific | ||||||
21 | requirements stated in the specific terms.
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22 | Section 10. Applicability. | ||||||
23 | (a) Except as otherwise provided in this Section, this Act | ||||||
24 | applies to any person that offers or provides commercial | ||||||
25 | financing in Illinois or is otherwise a provider. |
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1 | (b) The provisions of this Act apply to any person that | ||||||
2 | seeks to evade its applicability by any device, subterfuge, or | ||||||
3 | pretense whatsoever. | ||||||
4 | (c) The provisions of this Act apply to any person that | ||||||
5 | aids or facilitates a violation of this Act. | ||||||
6 | (d) The provisions of this Act do not apply to: | ||||||
7 | (1) a bank, trust company, or industrial loan company | ||||||
8 | doing business under the authority of, or in accordance | ||||||
9 | with, a license, certificate or charter issued by the | ||||||
10 | United States, this State, or any other state, district, | ||||||
11 | territory, or commonwealth of the United States that is | ||||||
12 | authorized to transact business in this State; | ||||||
13 | (2) a federally chartered savings and loan | ||||||
14 | association, federal savings bank, or federal credit union | ||||||
15 | that is authorized to transact business in this State; | ||||||
16 | (3) a savings and loan association, savings bank, or | ||||||
17 | credit union organized under the laws of this State or any | ||||||
18 | other state that is authorized to transact business in | ||||||
19 | this State; | ||||||
20 | (4) a lender regulated under the federal Farm Credit | ||||||
21 | Act; and | ||||||
22 | (5) a person acting in the person's capacity as a | ||||||
23 | technology services provider to an entity described by | ||||||
24 | sub-paragraphs (1), (2), or (3) for use as part of that | ||||||
25 | entity's commercial financing program, provided the person | ||||||
26 | has no interest, or arrangement, or agreement to purchase |
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1 | any interest in the commercial financing extended by the | ||||||
2 | entity in connection with the program.
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3 | Section 15. Division of Financial Institutions. This Act | ||||||
4 | shall be administered by the Division on behalf of the | ||||||
5 | Secretary.
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6 | Section 20. Licensure requirement. No person shall engage | ||||||
7 | in the conduct regulated by this Act without licensure under | ||||||
8 | this Act. Any Person who provides commercial financing without | ||||||
9 | the license required by this Act is guilty of a Class 4 felony. | ||||||
10 | The Secretary shall be empowered to investigate any person | ||||||
11 | they believe may require licensure under this Act including, | ||||||
12 | but not limited to, compelling production of testimony, books, | ||||||
13 | records, or any other information necessary for the Secretary | ||||||
14 | to determine whether the Person requires licensure.
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15 | Section 25. Licensee name. No person providing commercial | ||||||
16 | financing may operate the business under a name other than the | ||||||
17 | real names of the entity and individuals conducting the | ||||||
18 | business. The business may operate under an assumed corporate | ||||||
19 | name under the Business Corporation Act of 1983, an assumed | ||||||
20 | limited liability company name under the Limited Liability | ||||||
21 | Company Act, or an assumed business name under the Assumed | ||||||
22 | Business Name Act with written authorization from the | ||||||
23 | Secretary. Each licensee shall update its name with the |
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1 | Department within 10 days after the change of name.
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2 | Section 30. Application process; investigation; fees. | ||||||
3 | (a) The Secretary may issue a license to a person after the | ||||||
4 | person completes all of the following: | ||||||
5 | (1) the filing of an application for license with the | ||||||
6 | Secretary or a multistate licensing system as approved by | ||||||
7 | the Secretary; | ||||||
8 | (2) the filing with the Secretary or a multistate | ||||||
9 | licensing system as approved by the Secretary of a listing | ||||||
10 | of judgments entered against, and bankruptcy petitions by, | ||||||
11 | the applicant for the preceding 10 years; | ||||||
12 | (3) the payment, in certified funds, of investigation | ||||||
13 | and application fees, the total of which shall be in an | ||||||
14 | amount equal to $2,500; and | ||||||
15 | (4) the filing of an audited balance sheet, including | ||||||
16 | all footnotes prepared by a certified public accountant in | ||||||
17 | accordance with generally accepted accounting principles | ||||||
18 | and generally accepted auditing standards; notwithstanding | ||||||
19 | the requirements of this paragraph, an applicant that is a | ||||||
20 | subsidiary may submit audited consolidated financial | ||||||
21 | statements of its parent, intermediary parent, or ultimate | ||||||
22 | parent as long as the consolidated statements are | ||||||
23 | supported by consolidating statements that include the | ||||||
24 | applicant's financial statement; if the consolidating | ||||||
25 | statements are unaudited, the applicant's chief financial |
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1 | officer shall attest to the applicant's financial | ||||||
2 | statements disclosed in the consolidating statements. | ||||||
3 | (b) The Secretary may, for good cause shown, waive or | ||||||
4 | modify the requirements of subsection (a). | ||||||
5 | (c) Upon receipt of the license, a licensee is authorized | ||||||
6 | to engage in conduct regulated by this Act. The license shall | ||||||
7 | remain in full force and effect until it expires, is | ||||||
8 | surrendered by the licensee, or is revoked or suspended as | ||||||
9 | provided in this Act. | ||||||
10 | (d) The Secretary may impose conditions on a license if | ||||||
11 | the Secretary determines that those conditions are necessary | ||||||
12 | or appropriate. These conditions shall be imposed in writing | ||||||
13 | and shall continue in effect for the period prescribed by the | ||||||
14 | Secretary.
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15 | Section 35. Application form. | ||||||
16 | (a) Application for a license shall be made in accordance | ||||||
17 | with this Act, and in accordance with requirements of the | ||||||
18 | multistate licensing system, if required by the Secretary. The | ||||||
19 | application shall be in writing, under oath, and on a form | ||||||
20 | obtained from and prescribed by the Secretary. The Secretary | ||||||
21 | may change or update the form to carry out the purposes of this | ||||||
22 | Act. The Secretary may require part or all of the application | ||||||
23 | to be submitted electronically, with attestation, to the | ||||||
24 | multistate licensing system. | ||||||
25 | (b) The application shall contain the name and complete |
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1 | business and residential address or addresses of the | ||||||
2 | applicant. The application shall also include a description of | ||||||
3 | the activities of the applicant in detail and for the periods | ||||||
4 | as the Secretary may require, including all of the following: | ||||||
5 | (1) an affirmation that the applicant and its members, | ||||||
6 | directors, or principals, as may be appropriate, are at | ||||||
7 | least 18 years of age; | ||||||
8 | (2) information as to the name, complete business | ||||||
9 | address, complete residential address, character, fitness, | ||||||
10 | financial and business responsibility, background, | ||||||
11 | experience, and criminal record of any: | ||||||
12 | (i) person, including an ultimate equitable owner, | ||||||
13 | that directly or indirectly owns or controls 10% or | ||||||
14 | more of any class of stock of the applicant; | ||||||
15 | (ii) person, including an ultimate equitable owner | ||||||
16 | that is not a depository institution, as defined in | ||||||
17 | the Savings Bank Act, that lends, provides, or | ||||||
18 | infuses, directly or indirectly, in any way, funds to | ||||||
19 | or into an applicant in an amount equal to or more than | ||||||
20 | 10% of the applicant's net worth; | ||||||
21 | (iii) person, including an ultimate equitable | ||||||
22 | owner that controls, directly or indirectly, the | ||||||
23 | election of 25% or more of the members of the board of | ||||||
24 | directors of an applicant; | ||||||
25 | (iv) person, including an ultimate equitable owner | ||||||
26 | that the Secretary finds influences the management of |
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1 | the applicant; | ||||||
2 | (v) director or directors of an applicant; and | ||||||
3 | (vi) principal officers of an applicant; and | ||||||
4 | (3) other information as required by the Secretary to | ||||||
5 | assess whether the applicant and its owners, officers, and | ||||||
6 | directors have the financial responsibility, financial | ||||||
7 | condition, business experience, character, and general | ||||||
8 | fitness to justify the confidence of the public and that | ||||||
9 | the applicant and its owners, officers, and directors are | ||||||
10 | fit, willing, and able to carry on the proposed business | ||||||
11 | in a lawful and fair manner.
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12 | Section 40. Additional license application information. | ||||||
13 | (a) In order to fulfill the purposes of this Act, the | ||||||
14 | Secretary may establish relationships or contracts with a | ||||||
15 | multistate licensing system or other persons to collect and | ||||||
16 | maintain records and process fees related to licensees or | ||||||
17 | other persons subject to this Act. | ||||||
18 | (b) In connection with an application for licensing, the | ||||||
19 | applicant, owners, officers, and directors of an applicant may | ||||||
20 | be required, at a minimum, to furnish to the Secretary or | ||||||
21 | multistate licensing system information concerning the | ||||||
22 | applicant's, owners', officers' and directors' identity, | ||||||
23 | including personal history and experience in a form prescribed | ||||||
24 | by the Secretary or multistate licensing system, including, | ||||||
25 | but not limited to: |
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1 | (1) a complete and accurate copy of an independent | ||||||
2 | credit report obtained from a consumer reporting agency | ||||||
3 | described in Section 603(p) of the Fair Credit Reporting | ||||||
4 | Act (15 U.S.C. 1681a(p)); and | ||||||
5 | (2) information related to any administrative, civil, | ||||||
6 | or criminal findings by any governmental jurisdiction. | ||||||
7 | (c) For the purposes of this Section, and to reduce the | ||||||
8 | points of contact that the Secretary may have to maintain, the | ||||||
9 | Secretary may use a multistate licensing system as a | ||||||
10 | channeling agent for requesting and distributing information | ||||||
11 | to and from any source. | ||||||
12 | (d) Each application shall be accompanied by averments as | ||||||
13 | determined by the Secretary to fulfill the purposes of this | ||||||
14 | Act. | ||||||
15 | (e) Each applicant shall furnish to the Secretary or | ||||||
16 | multistate licensing system an updated business address within | ||||||
17 | 10 days after any change of business address.
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18 | Section 45. Refusal to issue or renew license. The | ||||||
19 | Secretary may refuse to issue or renew a license if: | ||||||
20 | (1) the Secretary determines that the applicant has | ||||||
21 | not complied with a provision of this Act, its | ||||||
22 | implementing rules, or other laws that apply to the | ||||||
23 | applicant; | ||||||
24 | (2) the Secretary determines that there is substantial | ||||||
25 | continuity between the applicant and any violator of this |
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1 | Act, its implementing rules, or other laws that apply to | ||||||
2 | the applicant or related violator; or | ||||||
3 | (3) the Secretary determines that the applicant or its | ||||||
4 | owners, officers, or directors do not have the financial | ||||||
5 | responsibility, financial condition, business experience, | ||||||
6 | character, and general fitness of to justify the | ||||||
7 | confidence of the public and that the license applicant | ||||||
8 | and its owners, officers, and directors are fit, willing, | ||||||
9 | and able to carry on the proposed business in a lawful and | ||||||
10 | fair manner.
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11 | Section 50. License issuance and renewal. | ||||||
12 | (a) Licensees shall apply to renew their license every | ||||||
13 | calendar year. Licensees may submit properly completed renewal | ||||||
14 | application forms and filing fees 60 days before the license | ||||||
15 | expiration date and the same shall be received by the | ||||||
16 | Secretary at least 30 days before the license expiration date. | ||||||
17 | (b) Each licensee shall timely renew its license. Absent a | ||||||
18 | written extension from the Department, a license shall expire | ||||||
19 | on December 31 if a licensee fails to timely submit a properly | ||||||
20 | completed renewal application form and fees. | ||||||
21 | (c) No activity regulated by this Act shall be conducted | ||||||
22 | by a licensee whose license has expired. The Secretary may, | ||||||
23 | within the Secretary's discretion, reinstate an expired | ||||||
24 | license upon payment of the renewal fee, payment of a | ||||||
25 | reactivation fee equal to 5 times the renewal fee, submission |
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1 | of a completed renewal application, and an affidavit of good | ||||||
2 | cause for late renewal.
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3 | Section 55. Fees. | ||||||
4 | (a) The persons regulated by this Act shall bear the | ||||||
5 | expenses of administering this Act, including investigations | ||||||
6 | and examinations provided for in this Act. The Secretary may | ||||||
7 | establish fees by rule or modify fees in at least the following | ||||||
8 | categories: | ||||||
9 | (1) application and renewal fees; | ||||||
10 | (2) examination and investigation fees; | ||||||
11 | (3) change fees; | ||||||
12 | (4) contingent fees; and | ||||||
13 | (5) other fees as may be required to administer this | ||||||
14 | Act. | ||||||
15 | (b) The Secretary may modify any fees established by this | ||||||
16 | Act by rule one year after the effective date of this Act.
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17 | Section 60. Functions; powers; duties. The functions, | ||||||
18 | powers, and duties of the Secretary include, but are not | ||||||
19 | limited to, the following: | ||||||
20 | (1) to issue or refuse to issue any license or | ||||||
21 | renewal; | ||||||
22 | (2) to revoke or suspend for cause any license issued | ||||||
23 | under this Act; | ||||||
24 | (3) to keep records of all licenses issued under this |
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1 | Act; | ||||||
2 | (4) to receive, consider, investigate, and act upon | ||||||
3 | complaints made by any person in connection with any | ||||||
4 | licensee in this State or unlicensed commercial financing | ||||||
5 | activity of any person; | ||||||
6 | (5) to prescribe the forms of and receive: | ||||||
7 | (A) applications for licenses and renewals; and | ||||||
8 | (B) all reports and all books and records required | ||||||
9 | to be made by any licensee under this Act, including | ||||||
10 | annual audited financial statements if required by the | ||||||
11 | Secretary and annual reports of commercial financing | ||||||
12 | activity; | ||||||
13 | (6) to adopt rules necessary and proper for the | ||||||
14 | administration of this Act, to protect consumers, and | ||||||
15 | promote fair competition or otherwise authorized by this | ||||||
16 | Act; | ||||||
17 | (7) to subpoena documents and witnesses and compel | ||||||
18 | their attendance and production, to administer oaths, and | ||||||
19 | to require the production of any books, papers, or other | ||||||
20 | materials relevant to any inquiry authorized by this Act | ||||||
21 | or its implementing rules; | ||||||
22 | (8) to issue orders against any person if the | ||||||
23 | Secretary has reasonable cause to believe that an unsafe, | ||||||
24 | unsound, or unlawful practice has occurred, is occurring, | ||||||
25 | or is about to occur; if any person is violating, or is | ||||||
26 | about to violate any law, rule, or written agreement with |
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1 | the Secretary; or for the purpose of administering the | ||||||
2 | provisions of this Act and any rule adopted in accordance | ||||||
3 | with this Act; | ||||||
4 | (9) to address any inquiries to any licensee, or the | ||||||
5 | owners, officers, or directors thereof, in relation to its | ||||||
6 | activities and conditions, or any other matter connected | ||||||
7 | with its affairs, and any licensee or person so addressed | ||||||
8 | shall promptly reply in writing to those inquiries. The | ||||||
9 | Secretary may also require reports from any licensee at | ||||||
10 | any time the Secretary deems desirable; | ||||||
11 | (10) to examine the books and records of every | ||||||
12 | licensee under this Act or any person requiring a license | ||||||
13 | or who the Secretary reasonably believes may require a | ||||||
14 | license; | ||||||
15 | (11) to enforce provisions of this Act and its | ||||||
16 | implementing rules; | ||||||
17 | (12) to levy fees including, but not limited to, | ||||||
18 | assessments, examination fees, and licensing fees, civil | ||||||
19 | penalties, and charges for services performed in | ||||||
20 | administering this Act. The aggregate of all fees | ||||||
21 | collected by the Secretary under this Act shall be paid | ||||||
22 | promptly after receipt into the Financial Institution | ||||||
23 | Fund. The amounts deposited into the Financial Institution | ||||||
24 | Fund shall be used for the ordinary and contingent | ||||||
25 | expenses of the Department. Nothing in this Act prevents | ||||||
26 | paying expenses including salaries, retirement, social |
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1 | security, and State-paid insurance of State employees, or | ||||||
2 | any other expenses incurred under this Act by | ||||||
3 | appropriation from the General Revenue Fund or any other | ||||||
4 | fund; | ||||||
5 | (13) to issue refunds to licensees of any overpayment | ||||||
6 | for good cause shown; | ||||||
7 | (14) to appoint examiners, supervisors, experts, and | ||||||
8 | special assistants as needed to effectively and | ||||||
9 | efficiently administer this Act; | ||||||
10 | (15) to conduct hearings for the purpose of | ||||||
11 | suspensions, denials, or revocations of licenses, fining, | ||||||
12 | or other discipline of licensees or unlicensed persons or | ||||||
13 | entities; | ||||||
14 | (16) to exercise visitorial power over a licensee; | ||||||
15 | (17) to enter into cooperative agreements with state | ||||||
16 | regulatory authorities of other states to provide for | ||||||
17 | examination of corporate offices or branches of those | ||||||
18 | states, participate in joint examinations with other | ||||||
19 | regulators, and to accept reports of the examinations; | ||||||
20 | (18) to assign an examiner or examiners to monitor the | ||||||
21 | affairs of a licensee with whatever frequency the | ||||||
22 | Secretary determines appropriate and to charge the | ||||||
23 | licensee for reasonable and necessary expenses of the | ||||||
24 | Secretary if in the opinion of the Secretary an emergency | ||||||
25 | exists or appears likely to occur; | ||||||
26 | (19) to impose civil penalties of up to $200 per day |
| |||||||
| |||||||
1 | against a licensee for failing to respond to a regulatory | ||||||
2 | request or reporting requirement; and | ||||||
3 | (20) to enter into agreements in connection with a | ||||||
4 | multistate licensing system.
| ||||||
5 | Section 65. Examination; prohibited activities. | ||||||
6 | (a) The Secretary shall examine the business affairs of a | ||||||
7 | licensee under this Act as often as the Secretary deems | ||||||
8 | necessary and proper. The Secretary may adopt rules with | ||||||
9 | respect to the frequency and manner of examination. The | ||||||
10 | Secretary shall appoint a suitable person to perform the | ||||||
11 | examination. The Secretary and the Secretary's appointees may | ||||||
12 | examine the entire books, records, documents, and operations | ||||||
13 | of each licensee and its subsidiary, affiliate, or agent, and | ||||||
14 | may examine any of the licensee's or its subsidiaries', | ||||||
15 | owners, affiliates', or agents' officers, directors, | ||||||
16 | employees, and agents under oath. | ||||||
17 | (b) Affiliates of a licensee shall be subject to | ||||||
18 | examination by the Secretary on the same terms as the | ||||||
19 | licensee, but only when reports from or examination of a | ||||||
20 | licensee provides for documented evidence of unlawful activity | ||||||
21 | between a licensee and affiliate benefiting, affecting, or | ||||||
22 | deriving from the activities regulated by this Act. | ||||||
23 | (c) The expenses of any examination of the licensee or its | ||||||
24 | affiliates shall be borne by the licensee and assessed by the | ||||||
25 | Secretary as may be established by rule. |
| |||||||
| |||||||
1 | (d) All confidential supervisory information, including | ||||||
2 | the examination report and the work papers of the report, | ||||||
3 | shall belong to the Secretary's office and may not be | ||||||
4 | disclosed to anyone other than the licensee, law enforcement | ||||||
5 | officials, or other regulatory agencies that have an | ||||||
6 | appropriate regulatory interest as determined by the Secretary | ||||||
7 | or to a party presenting a lawful subpoena to the Department. | ||||||
8 | The Secretary may, through the Attorney General, immediately | ||||||
9 | appeal to the court of jurisdiction the disclosure of the | ||||||
10 | confidential supervisory information and seek a stay of the | ||||||
11 | subpoena pending the outcome of the appeal. Reports required | ||||||
12 | of licensees by the Secretary under this Act and results of | ||||||
13 | examinations performed by the Secretary under this Act shall | ||||||
14 | be the property of only the Secretary, but may be shared with | ||||||
15 | the licensee. Any person demanded to produce the Department's | ||||||
16 | confidential supervisory information, whether by subpoena, | ||||||
17 | order, or other judicial or administrative process, shall | ||||||
18 | withhold production of the confidential supervisory | ||||||
19 | information and shall notify the Secretary of the demand. The | ||||||
20 | Secretary is authorized to intervene for the purpose of | ||||||
21 | enforcing the limitations of this Section or seeking the | ||||||
22 | withdrawal or termination of the attempt to compel production | ||||||
23 | of the confidential supervisory information. The Secretary may | ||||||
24 | impose any conditions and limitations on the disclosure of | ||||||
25 | confidential supervisory information that are necessary to | ||||||
26 | protect the confidentiality of that information. The Secretary |
| |||||||
| |||||||
1 | may condition a decision to disclose confidential supervisory | ||||||
2 | information on entry of a protective order by the court or | ||||||
3 | administrative tribunal presiding in the particular case or on | ||||||
4 | a written agreement of confidentiality. If a protective order | ||||||
5 | or agreement has already been entered between parties other | ||||||
6 | than the Secretary, then the Secretary may nevertheless | ||||||
7 | condition approval for release of confidential supervisory | ||||||
8 | information upon the inclusion of additional or amended | ||||||
9 | provisions in the protective order. The Secretary may | ||||||
10 | authorize a party who obtained the records for use in one case | ||||||
11 | to provide them to another party in another case, subject to | ||||||
12 | any conditions that the Secretary may impose on either or both | ||||||
13 | parties. The requester shall promptly notify other parties to | ||||||
14 | a case of the release of confidential supervisory information | ||||||
15 | obtained and, upon entry of a protective order, shall provide | ||||||
16 | copies of confidential supervisory information to the other | ||||||
17 | parties.
| ||||||
18 | Section 70. Subpoena power of the Secretary. | ||||||
19 | (a) The Secretary may issue and serve subpoenas and | ||||||
20 | subpoenas duces tecum to compel the attendance of witnesses | ||||||
21 | and the production of all books, accounts, records, and other | ||||||
22 | documents and materials relevant to an examination or | ||||||
23 | investigation. The Secretary, or the Secretary's duly | ||||||
24 | authorized representative, may administer oaths and | ||||||
25 | affirmations to any person. |
| |||||||
| |||||||
1 | (b) If a person does not comply with the Secretary's | ||||||
2 | subpoena or subpoena duces tecum, the Secretary may, through | ||||||
3 | the Attorney General, petition the circuit court of the county | ||||||
4 | in which the subpoenaed person resides or has its principal | ||||||
5 | place of business for an order requiring the subpoenaed person | ||||||
6 | to testify and to comply with the subpoena duces tecum. The | ||||||
7 | court may grant injunctive relief restraining the person from | ||||||
8 | engaging in activity regulated by this Act. The court may | ||||||
9 | grant other relief, including, but not limited to, the | ||||||
10 | restraint, by injunction or appointment of a receiver, of any | ||||||
11 | transfer, pledge, assignment, or other disposition of the | ||||||
12 | person's assets, concealment, destruction, or other | ||||||
13 | disposition of books, accounts, records, or other documents | ||||||
14 | and materials, as the court deems appropriate, until the | ||||||
15 | person has fully complied with the subpoena or subpoena duces | ||||||
16 | tecum and the Secretary has completed an investigation or | ||||||
17 | 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 under this Section is essential to an | ||||||
21 | investigation or examination, the Secretary, in addition to | ||||||
22 | the other remedies provided for in this Act, may, through the | ||||||
23 | Attorney General, apply for relief to the circuit court of the | ||||||
24 | 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 |
| |||||||
| |||||||
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 be freed, having a due | ||||||
5 | 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 75. Reports required. | ||||||
13 | (a) Every licensee shall produce to the Department reports | ||||||
14 | the Secretary requests within 90 days after the Secretary's | ||||||
15 | request unless exigent circumstances require production in a | ||||||
16 | shorter timeframe. | ||||||
17 | (b) Every provider shall produce to the Department a | ||||||
18 | report of its commercial financing activity upon the request | ||||||
19 | of the Secretary. Every provider shall produce its report to | ||||||
20 | the Department within 90 days after the Secretary's request. | ||||||
21 | The Department may require reports under this subsection | ||||||
22 | before a provider shall become licensed under this Act.
| ||||||
23 | Section 76. Sales-based financing disclosure requirements. | ||||||
24 | A provider subject to this Act shall provide the following |
| |||||||
| |||||||
1 | disclosures to a recipient, in a manner prescribed by the | ||||||
2 | Secretary, if any, at the time of extending a specific offer of | ||||||
3 | sales-based financing: | ||||||
4 | (1) The total amount of the commercial financing, and, | ||||||
5 | if different from the financing amount, the disbursement | ||||||
6 | amount after any amount deducted or withheld at | ||||||
7 | disbursement. | ||||||
8 | (2) The finance charge. | ||||||
9 | (3) The estimated annual percentage rate, using the | ||||||
10 | words annual percentage rate or the abbreviation | ||||||
11 | "Estimated APR", expressed as a yearly rate, inclusive of | ||||||
12 | any fees and finance charges, based on the estimated term | ||||||
13 | of repayment and the projected periodic payment amounts. | ||||||
14 | The estimated term of repayment and the projected periodic | ||||||
15 | payment amounts shall be calculated based on the | ||||||
16 | projection of the recipient's sales, which may be referred | ||||||
17 | to as the projected sales volume. The projected sales | ||||||
18 | volume may be calculated using the historical method or | ||||||
19 | the underwriting method. The provider shall provide notice | ||||||
20 | to the Secretary on which method the provider intends to | ||||||
21 | use across all instances of sales-based financing offered | ||||||
22 | in calculating the estimated annual percentage rate under | ||||||
23 | this Section, according to the following: | ||||||
24 | (A) A provider using the historical method shall | ||||||
25 | use an average historical volume of sales or revenue | ||||||
26 | by which the financing's payment amounts are based and |
| |||||||
| |||||||
1 | the estimated annual percentage rate is calculated. | ||||||
2 | The provider shall fix the historical time period used | ||||||
3 | to calculate the average historical volume and use the | ||||||
4 | period for all disclosure purposes for all sales-based | ||||||
5 | financing products offered. The fixed historical time | ||||||
6 | period shall either be the preceding time period from | ||||||
7 | the specific offer or, alternatively, the provider may | ||||||
8 | use average sales for the same number of months with | ||||||
9 | the highest sales volume within the previous 12 | ||||||
10 | months. The fixed historical time period shall be no | ||||||
11 | less than one month and shall not exceed 12 months. | ||||||
12 | (B) A provider using the underwriting method shall | ||||||
13 | determine the estimated annual percentage rate, the | ||||||
14 | estimated term, and the projected payments, using a | ||||||
15 | projected sales volume that the provider elects for | ||||||
16 | each disclosure, if they participate in a review | ||||||
17 | process prescribed by the Secretary. A provider shall, | ||||||
18 | on an annual basis, report data to the Secretary of | ||||||
19 | estimated annual percentage rates disclosed to the | ||||||
20 | recipient and actual retrospective annual percentage | ||||||
21 | rates of completed transactions. The report shall | ||||||
22 | contain the information as the Department may adopt by | ||||||
23 | rule as necessary or appropriate for the purpose of | ||||||
24 | making a determination of whether the deviation | ||||||
25 | between the estimated annual percentage rate and | ||||||
26 | actual retrospective annual percentage rates of |
| |||||||
| |||||||
1 | completed transactions was reasonable. The Secretary | ||||||
2 | shall establish the method of reporting and may, upon | ||||||
3 | a finding that the use of projected sales volume by the | ||||||
4 | provider has resulted in an unacceptable deviation | ||||||
5 | between estimated and actual annual percentage rate, | ||||||
6 | require the provider to use the historical method. The | ||||||
7 | Secretary may consider unusual and extraordinary | ||||||
8 | circumstances impacting the provider's deviation | ||||||
9 | between estimated and actual annual percentage rate in | ||||||
10 | the determination of the finding. | ||||||
11 | (4) The total repayment amount, which is the | ||||||
12 | disbursement amount plus the finance charge. | ||||||
13 | (5) The estimated term, which is the period of time | ||||||
14 | required for the periodic payments, based on the projected | ||||||
15 | sales volume, to equal the total amount required to be | ||||||
16 | repaid. | ||||||
17 | (6) The payment amounts, based on the projected sales | ||||||
18 | volume: | ||||||
19 | (A) for payment amounts that are fixed, the | ||||||
20 | payment amounts and frequency, such as, daily, weekly, | ||||||
21 | monthly, and, if the payment frequency is other than | ||||||
22 | monthly, the amount of the average projected payments | ||||||
23 | per month; or | ||||||
24 | (B) for payment amounts that are variable, a | ||||||
25 | payment schedule or a description of the method used | ||||||
26 | to calculate the amounts and frequency of payments and |
| |||||||
| |||||||
1 | the amount of the average projected payments per | ||||||
2 | month. | ||||||
3 | (7) A description of all other potential fees and | ||||||
4 | charges not included in the finance charge, including, but | ||||||
5 | not limited to, draw fees, late payment fees, and returned | ||||||
6 | payment fees. | ||||||
7 | (8) If the recipient elects to pay off or refinance | ||||||
8 | the commercial financing before full repayment, the | ||||||
9 | provider shall disclose: | ||||||
10 | (A) whether the recipient would be required to pay | ||||||
11 | any finance charges other than interest accrued since | ||||||
12 | their last payment; if so, disclosure of the | ||||||
13 | percentage of any unpaid portion of the finance charge | ||||||
14 | and maximum dollar amount the recipient could be | ||||||
15 | required to pay; and | ||||||
16 | (B) whether the recipient would be required to pay | ||||||
17 | any additional fees not already included in the | ||||||
18 | finance charge. | ||||||
19 | (9) A description of collateral requirements or | ||||||
20 | security interests, if any.
| ||||||
21 | Section 77. Closed-end commercial financing disclosure | ||||||
22 | requirements. A provider subject to this Act shall provide the | ||||||
23 | following disclosures to a recipient, in a manner prescribed | ||||||
24 | by the Secretary, if any, at the time of extending a specific | ||||||
25 | offer for closed-end financing: |
| |||||||
| |||||||
1 | (1) The total amount of the commercial financing, and, | ||||||
2 | if different from the financing amount, the disbursement | ||||||
3 | amount after any amount deducted or withheld at | ||||||
4 | disbursement. | ||||||
5 | (2) The finance charge. | ||||||
6 | (3) The annual percentage rate, using only the words | ||||||
7 | annual percentage rate or the abbreviation "APR", | ||||||
8 | expressed as a yearly rate, inclusive of any fees and | ||||||
9 | finance charges that cannot be avoided by a recipient. | ||||||
10 | (4) The total repayment amount, which is the | ||||||
11 | disbursement amount plus the finance charge. | ||||||
12 | (5) The term of the financing. | ||||||
13 | (6) The payment amounts: | ||||||
14 | (A) for payment amounts that are fixed, the | ||||||
15 | payment amounts and frequency, such as daily, weekly, | ||||||
16 | monthly, and, if the term is longer than one month, the | ||||||
17 | average monthly payment amount; or | ||||||
18 | (B) for payment amounts that are variable, a full | ||||||
19 | payment schedule or a description of the method used | ||||||
20 | to calculate the amounts and frequency of payments, | ||||||
21 | and, if the term is longer than one month, the | ||||||
22 | estimated average monthly payment amount. | ||||||
23 | (7) A description of all other potential fees and | ||||||
24 | charges that can be avoided by the recipient, including, | ||||||
25 | but not limited to, late payment fees and returned payment | ||||||
26 | fees. |
| |||||||
| |||||||
1 | (8) If the recipient elects to pay off or refinance | ||||||
2 | the commercial financing before full repayment, the | ||||||
3 | provider shall disclose: | ||||||
4 | (A) whether the recipient would be required to pay | ||||||
5 | any finance charges other than interest accrued since | ||||||
6 | their last payment; if so, disclosure of the | ||||||
7 | percentage of any unpaid portion of the finance charge | ||||||
8 | and maximum dollar amount the recipient could be | ||||||
9 | required to pay; and | ||||||
10 | (B) whether the recipient would be required to pay | ||||||
11 | any additional fees not already included in the | ||||||
12 | finance charge. | ||||||
13 | (9) A description of collateral requirements or | ||||||
14 | security interests, if any.
| ||||||
15 | Section 78. Open-end commercial financing disclosure | ||||||
16 | requirements. A provider subject to this Act shall provide the | ||||||
17 | following disclosures to a recipient, in a manner prescribed | ||||||
18 | by the Secretary, if any, at the time of extending a specific | ||||||
19 | offer for open-end financing: | ||||||
20 | (1) The maximum amount of credit available to the | ||||||
21 | recipient, such as the credit line amount, and the amount | ||||||
22 | scheduled to be drawn by the recipient at the time the | ||||||
23 | offer is extended, if any, less any amount deducted or | ||||||
24 | withheld at disbursement. | ||||||
25 | (2) The finance charge. |
| |||||||
| |||||||
1 | (3) The annual percentage rate, using only the words | ||||||
2 | annual percentage rate or the abbreviation "APR", | ||||||
3 | expressed as a nominal yearly rate, inclusive of any fees | ||||||
4 | and finance charges that cannot be avoided by a recipient, | ||||||
5 | and based on the maximum amount of credit available to the | ||||||
6 | recipient and the term resulting from making the minimum | ||||||
7 | required payments term as disclosed. | ||||||
8 | (4) The total repayment amount, which is the draw | ||||||
9 | amount, less any fees deducted or withheld at | ||||||
10 | disbursement, plus the finance charge. The total repayment | ||||||
11 | amount shall assume a draw amount equal to the maximum | ||||||
12 | amount of credit available to the recipient if drawn and | ||||||
13 | held for the duration of the term or draw period. | ||||||
14 | (5) The term of the plan, if applicable, or the period | ||||||
15 | over which a draw is amortized. | ||||||
16 | (6) The payment frequency and amounts, based on the | ||||||
17 | assumptions used in the calculation of the annual | ||||||
18 | percentage rate, including a description of payment amount | ||||||
19 | requirements such as a minimum payment amount, and if the | ||||||
20 | payment frequency is other than monthly, the amount of the | ||||||
21 | average projected payments per month. For payment amounts | ||||||
22 | that are variable, the provider should include a payment | ||||||
23 | schedule or a description of the method used to calculate | ||||||
24 | the amounts and frequency of payments and the estimated | ||||||
25 | average monthly payment amount. | ||||||
26 | (7) A description of all other potential fees and |
| |||||||
| |||||||
1 | charges that can be avoided by the recipient, including, | ||||||
2 | but not limited to, draw fees, late payment fees, and | ||||||
3 | returned payment fees. | ||||||
4 | (8) Were the recipient to elect to pay off or | ||||||
5 | refinance the commercial financing before full repayment, | ||||||
6 | the provider shall disclose: | ||||||
7 | (A) whether the recipient would be required to pay | ||||||
8 | any finance charges other than interest accrued since | ||||||
9 | their last payment; if so, disclosure of the | ||||||
10 | percentage of any unpaid portion of the finance charge | ||||||
11 | and maximum dollar amount the recipient could be | ||||||
12 | required to pay; and | ||||||
13 | (B) whether the recipient would be required to pay | ||||||
14 | any additional fees not already included in the | ||||||
15 | finance charge. | ||||||
16 | (9) A description of collateral requirements or | ||||||
17 | security interests, if any.
| ||||||
18 | Section 79. Factoring transaction disclosure requirements. | ||||||
19 | A provider subject to this Act shall provide the following | ||||||
20 | disclosures to a recipient, in a manner prescribed by the | ||||||
21 | Secretary, if any, at the time of extending a specific offer | ||||||
22 | for a factoring transaction: | ||||||
23 | (1) The amount of the receivables purchase price paid | ||||||
24 | to the recipient, and, if different from the purchase | ||||||
25 | price, the disbursement amount after any amount deducted |
| |||||||
| |||||||
1 | or withheld at disbursement. | ||||||
2 | (2) The finance charge. | ||||||
3 | (3) The estimated annual percentage rate, using that | ||||||
4 | term. To calculate the estimated annual percentage rate, | ||||||
5 | the purchase amount is considered the financing amount, | ||||||
6 | the purchase amount minus the finance charge is considered | ||||||
7 | the payment amount, and the term is established by the | ||||||
8 | payment due date of the receivables. As an alternate | ||||||
9 | method of establishing the term, the provider may estimate | ||||||
10 | the term for a factoring transaction as the average | ||||||
11 | payment period based on its historical data over a period | ||||||
12 | not to exceed the previous 12 months, concerning payment | ||||||
13 | invoices paid by the party or parties owing the accounts | ||||||
14 | receivable in question. | ||||||
15 | (4) The total payment amount, which is the purchase | ||||||
16 | amount plus the finance charge. | ||||||
17 | (5) A description of all other potential fees and | ||||||
18 | charges that can be avoided by the recipient. | ||||||
19 | (6) A description of the receivables purchased and any | ||||||
20 | additional collateral requirements or security interests.
| ||||||
21 | Section 80. Other forms of financing disclosure | ||||||
22 | requirements. The Secretary may require disclosure by a | ||||||
23 | provider extending a specific offer of commercial financing | ||||||
24 | which is not an open-end financing, closed-end financing, | ||||||
25 | sales-based financing, or factoring transaction but otherwise |
| |||||||
| |||||||
1 | meets the definition of commercial financing. Subject to rules | ||||||
2 | adopted by the Secretary, a provider subject to this Act shall | ||||||
3 | provide the following disclosures to a recipient, in a manner | ||||||
4 | prescribed by the Secretary, if any, at the time of extending a | ||||||
5 | specific offer of other forms of financing: | ||||||
6 | (1) The total amount of the commercial financing, and, | ||||||
7 | if different from the financing amount, the disbursement | ||||||
8 | amount after any fees deducted or withheld at | ||||||
9 | disbursement. | ||||||
10 | (2) The finance charge. | ||||||
11 | (3) The annual percentage rate, using only the words | ||||||
12 | annual percentage rate or the abbreviation "APR", | ||||||
13 | expressed as a yearly rate, inclusive of any fees and | ||||||
14 | finance charges. | ||||||
15 | (4) The total repayment amount which is the | ||||||
16 | disbursement amount plus the finance charge. | ||||||
17 | (5) The term of the financing. | ||||||
18 | (6) The payment amounts: | ||||||
19 | (A) for payment amounts that are fixed, the | ||||||
20 | payment amounts and frequency, such as daily, weekly, | ||||||
21 | monthly, and the average monthly payment amount; or | ||||||
22 | (B) for payment amounts that are variable, a | ||||||
23 | payment schedule or a description of the method used | ||||||
24 | to calculate the amounts and frequency of payments, | ||||||
25 | and the estimated average monthly payment amount. | ||||||
26 | (7) A description of all other potential fees and |
| |||||||
| |||||||
1 | charges that can be avoided by the recipient, including, | ||||||
2 | but not limited to, late payment fees and returned payment | ||||||
3 | fees. | ||||||
4 | (8) If the recipient elects to pay off or refinance | ||||||
5 | the commercial financing before full repayment, the | ||||||
6 | provider shall disclose: | ||||||
7 | (A) whether the recipient would be required to pay | ||||||
8 | any finance charges other than interest accrued since | ||||||
9 | their last payment; if so, disclosure of the | ||||||
10 | percentage of any unpaid portion of the finance charge | ||||||
11 | and maximum dollar amount the recipient could be | ||||||
12 | required to pay; and | ||||||
13 | (B) whether the recipient would be required to pay | ||||||
14 | any additional fees not already included in the | ||||||
15 | finance charge. | ||||||
16 | (9) A description of collateral requirements or | ||||||
17 | security interests, if any.
| ||||||
18 | Section 81. Disclosure requirements for renewal financing. | ||||||
19 | If, as a condition of obtaining the commercial financing, the | ||||||
20 | provider requires the recipient to pay off the balance of an | ||||||
21 | existing commercial financing from the same provider, the | ||||||
22 | provider shall disclose: | ||||||
23 | (1) The amount of the new commercial financing that is | ||||||
24 | used to pay off the portion of the existing commercial | ||||||
25 | financing that consists of prepayment charges required to |
| |||||||
| |||||||
1 | be paid and any unpaid interest expense that was not | ||||||
2 | forgiven at the time of renewal. For financing for which | ||||||
3 | the total repayment amount is calculated as a fixed | ||||||
4 | amount, the prepayment charge is equal to the original | ||||||
5 | finance charge multiplied by the amount of the renewal | ||||||
6 | used to pay off existing financing as a percentage of the | ||||||
7 | total repayment amount, minus any portion of the total | ||||||
8 | repayment amount forgiven by the provider at the time of | ||||||
9 | prepayment. If the amount is more than zero, the amount | ||||||
10 | shall be the answer to the following question: "Does the | ||||||
11 | renewal financing include any amount that is used to pay | ||||||
12 | unpaid finance charges or fees, also known as double | ||||||
13 | dipping? Yes, {enter amount}. If the amount is zero, the | ||||||
14 | answer would be no." | ||||||
15 | (2) If the disbursement amount will be reduced to pay | ||||||
16 | down any unpaid portion of the outstanding balance, the | ||||||
17 | actual dollar amount by which the disbursement amount will | ||||||
18 | be reduced.
| ||||||
19 | Section 82. Additional information. Nothing in this Act | ||||||
20 | shall prevent a provider from providing or disclosing | ||||||
21 | additional information on a commercial financing being offered | ||||||
22 | to a recipient, provided however, that the additional | ||||||
23 | information shall not be disclosed as part of the disclosure | ||||||
24 | required by this Act. If other metrics of financing cost are | ||||||
25 | disclosed or used in the application process of a commercial |
| |||||||
| |||||||
1 | financing, these metrics shall not be presented as a "rate" if | ||||||
2 | they are not the annual interest rate or the annual percentage | ||||||
3 | rate. The term "interest", when used to describe a percentage | ||||||
4 | rate, shall only be used to describe annualized percentage | ||||||
5 | rates, such as the annual interest rate. When a provider | ||||||
6 | states a rate of finance charge or a financing amount to a | ||||||
7 | recipient during an application process for commercial | ||||||
8 | financing, the provider shall also state the rate as an | ||||||
9 | "annual percentage rate", using that term or the abbreviation | ||||||
10 | "APR".
| ||||||
11 | Section 83. Violation of disclosure requirements. If the | ||||||
12 | Secretary finds that a provider who is required to obtain a | ||||||
13 | license according to this Act has violated any disclosure | ||||||
14 | requirements outlined in Sections 76 through 82, that shall be | ||||||
15 | considered a violation of this Act separate from any other | ||||||
16 | violation that may result from operating without a license as | ||||||
17 | outlined in Section 20.
| ||||||
18 | Section 84. Suspension; revocation of licenses; civil | ||||||
19 | penalties and other discipline. | ||||||
20 | (a) The Secretary may enter an order imposing one or more | ||||||
21 | of the following penalties: | ||||||
22 | (1) revocation of license; | ||||||
23 | (2) suspension of a license subject to reinstatement | ||||||
24 | upon satisfying all reasonable conditions the Secretary |
| |||||||
| |||||||
1 | may specify; | ||||||
2 | (3) placement of the licensee or applicant on | ||||||
3 | probation for a period of time and subject to all | ||||||
4 | reasonable conditions as the Secretary may specify; | ||||||
5 | (4) issuance of a reprimand; | ||||||
6 | (5) imposition of civil monetary penalties as follows: | ||||||
7 | (A) a civil penalty not to exceed $10,000 for each | ||||||
8 | separate offense, but civil penalties may not to | ||||||
9 | exceed $50,000 for all violations arising from the use | ||||||
10 | of the same transaction documents or materials, | ||||||
11 | including for financing offers that are not | ||||||
12 | consummated; and | ||||||
13 | (B) if a person violates this Act after receiving | ||||||
14 | written notice of a prior violation, a civil penalty | ||||||
15 | may be imposed not to exceed $10,000 for each count of | ||||||
16 | separate offense, but the civil penalties are not to | ||||||
17 | exceed $100,000 for all violations arising from the | ||||||
18 | use of the same transaction documents or materials, | ||||||
19 | including for financing offers that are not | ||||||
20 | consummated; | ||||||
21 | (6) restitution, refunds, or any other relief | ||||||
22 | necessary to protect consumers; and | ||||||
23 | (7) denial of a license. | ||||||
24 | (b) Grounds for penalties include: | ||||||
25 | (1) if a person has violated or aided another to | ||||||
26 | violate, any provisions of this Act, any rule adopted by |
| |||||||
| |||||||
1 | the Secretary, or any other law, rule, or regulation of | ||||||
2 | this State, any other state, or the United States; | ||||||
3 | (2) if a fact or condition exists that, if it had | ||||||
4 | existed at the time of the original application for the | ||||||
5 | license, would have warranted the Secretary in refusing | ||||||
6 | issue the original license; | ||||||
7 | (3) that a licensee that is not an individual has | ||||||
8 | acted or failed to act in a way that would be cause for | ||||||
9 | suspending or revoking a license to an individual; | ||||||
10 | (4) that a person engaged in unsafe, unsound, unfair, | ||||||
11 | deceptive, or abusive business practices related to the | ||||||
12 | activity covered by this Act; | ||||||
13 | (5) that a person has been adjudicated guilty of a | ||||||
14 | crime against the law of this State, any other state, or of | ||||||
15 | the United States involving moral turpitude, abusive, | ||||||
16 | deceptive, fraudulent, or dishonest dealing; | ||||||
17 | (6) that a final judgment has been entered against a | ||||||
18 | person in a civil action upon grounds of abusive conduct, | ||||||
19 | conversion, fraud, misrepresentation, or deceit; | ||||||
20 | (7) that a person made a material misstatement in its | ||||||
21 | application for licensure or any other communication to | ||||||
22 | the Secretary; | ||||||
23 | (8) that a person has demonstrated, by course of | ||||||
24 | conduct, negligence or incompetence in performing any act | ||||||
25 | for which it is required to hold a license under this Act; | ||||||
26 | (9) that a person has failed to advise the Secretary |
| |||||||
| |||||||
1 | in writing of any changes to the information submitted on | ||||||
2 | their most recent application for license within 30 days | ||||||
3 | after the change; | ||||||
4 | (10) that a licensee failed to submit to periodic | ||||||
5 | examination by the Secretary as required by this Act or | ||||||
6 | failed to maintain, preserve, and keep available for | ||||||
7 | examination all books, accounts, or other documents | ||||||
8 | required by the provisions of this Act and rules of the | ||||||
9 | Secretary; | ||||||
10 | (11) that a person failed to account or deliver to any | ||||||
11 | person any property, such as any money, fund, deposit, | ||||||
12 | check, draft, or other document or thing of value, that | ||||||
13 | has come into its hands and that is not its property or | ||||||
14 | that it is not in law or equity entitled to retain, under | ||||||
15 | the circumstances and at the time which has been agreed | ||||||
16 | upon or is required by law or, in the absence of a fixed | ||||||
17 | time, upon demand of the person for the accounting and | ||||||
18 | delivery; | ||||||
19 | (12) that a person failed to disburse funds in | ||||||
20 | accordance with agreements or law; | ||||||
21 | (13) that a person had a license, or the equivalent, | ||||||
22 | to practice any profession, occupation, other industry or | ||||||
23 | activity requiring licensure revoked, suspended, | ||||||
24 | disciplined, or otherwise acted against, including the | ||||||
25 | denial of licensure by a licensing authority of this State | ||||||
26 | or another state, territory, or country for fraud, |
| |||||||
| |||||||
1 | dishonest dealing, misrepresentations, incompetence, | ||||||
2 | conversion, any act of moral turpitude or any other | ||||||
3 | grounds that would constitute grounds for discipline under | ||||||
4 | this Act; | ||||||
5 | (14) that a person licensed under this Act failed to | ||||||
6 | timely notify the Department that the person has been | ||||||
7 | disciplined, including denial of licensure, by a licensing | ||||||
8 | authority of this State or another state. Timely | ||||||
9 | notification shall be notification to the Department | ||||||
10 | within 10 days after entry of discipline; | ||||||
11 | (15) that a person engaged in activities regulated by | ||||||
12 | this Act without a current, active license unless | ||||||
13 | specifically exempted by this Act; | ||||||
14 | (16) that a person failed to timely pay any fee, | ||||||
15 | charge, or civil penalty assessed under this Act; and | ||||||
16 | (17) that a person refused, obstructed, evaded, or | ||||||
17 | unreasonably delayed an investigation, information | ||||||
18 | request, or examination authorized under this Act, or | ||||||
19 | refused, obstructed, evaded, or unreasonably delayed | ||||||
20 | compliance with the Secretary's subpoena or subpoena duces | ||||||
21 | tecum. | ||||||
22 | (c) No license shall be suspended or revoked, except as | ||||||
23 | provided in this Section, nor shall any licensee be assessed a | ||||||
24 | civil penalty without notice of his or her right to a hearing. | ||||||
25 | (d) The Secretary may suspend any license for a period not | ||||||
26 | exceeding 180 days pending investigation for good cause shown |
| |||||||
| |||||||
1 | that an emergency exists. | ||||||
2 | (e) No revocation, suspension, or surrender of any license | ||||||
3 | shall impair or affect the obligation of any preexisting | ||||||
4 | lawful contract between the licensee and any person. The | ||||||
5 | Secretary's approval of a licensee's application to surrender | ||||||
6 | its license shall not affect the licensee's civil or criminal | ||||||
7 | liability for acts committed prior to surrender. Surrender of | ||||||
8 | a license does not entitle the licensee to a return of any part | ||||||
9 | of the license fee. | ||||||
10 | (f) Every license issued under this Act shall remain in | ||||||
11 | force and effect until the license expires, is surrendered, is | ||||||
12 | revoked, or is suspended in accordance with the provisions of | ||||||
13 | this Act. The Secretary shall have authority to reinstate a | ||||||
14 | suspended license or to issue a new license to a licensee whose | ||||||
15 | license has been revoked or surrendered if no fact or | ||||||
16 | condition then exists which would have warranted the Secretary | ||||||
17 | in refusing originally to issue that license under this Act. | ||||||
18 | (g) Whenever the Secretary imposes discipline authorized | ||||||
19 | by this Section, the Secretary shall execute a written order | ||||||
20 | to that effect. The Secretary shall serve a copy of the order | ||||||
21 | upon the person. The Secretary shall serve the person with | ||||||
22 | notice of the order, including a statement of the reasons for | ||||||
23 | the order personally or by certified mail. Service by | ||||||
24 | certified mail shall be deemed completed when the notice is | ||||||
25 | deposited in the U.S. Mail. | ||||||
26 | (h) An order assessing a civil penalty, an order revoking |
| |||||||
| |||||||
1 | or suspending a license, or an order denying renewal of a | ||||||
2 | license shall take effect upon service of the order unless the | ||||||
3 | licensee serves the Department with a written request for a | ||||||
4 | hearing in the manner required by the order within 10 days | ||||||
5 | after the date of service of the order. If a person requests a | ||||||
6 | hearing, the order shall be stayed from its date of service | ||||||
7 | until the Department enters a final administrative order. | ||||||
8 | Hearings shall be conducted as follows: | ||||||
9 | (1) If the licensee requests a hearing, then the | ||||||
10 | Secretary shall schedule a hearing within 90 days after | ||||||
11 | the request for a hearing unless otherwise agreed to by | ||||||
12 | the parties. | ||||||
13 | (2) The hearing shall be held at the time and place | ||||||
14 | designated by the Secretary. The Secretary and any | ||||||
15 | administrative law judge designated by the Secretary shall | ||||||
16 | have the power to administer oaths and affirmations, | ||||||
17 | subpoena witnesses and compel their attendance, take | ||||||
18 | evidence, and require the production of books, papers, | ||||||
19 | correspondence, and other records or information that they | ||||||
20 | consider relevant or material to the inquiry. | ||||||
21 | (i) The costs of administrative hearings conducted under | ||||||
22 | this Section shall be paid by the licensee or other person | ||||||
23 | subject to the hearing. | ||||||
24 | (j) A licensee and other persons subject to this Act shall | ||||||
25 | be subject to the disciplinary actions specified in this Act | ||||||
26 | for any violations conducted by any officer, director, |
| |||||||
| |||||||
1 | shareholder, joint venture, partner, owner, including, but not | ||||||
2 | limited to, ultimate equitable owner.
| ||||||
3 | Section 85. Investigation of complaints. The Secretary may | ||||||
4 | investigate any complaints and inquiries made concerning this | ||||||
5 | Act and any licensees or persons the Secretary believes may | ||||||
6 | require a license under this Act. Each licensee or person the | ||||||
7 | Secretary believes may require a license under this Act shall | ||||||
8 | open the licensee's or person's books, records, documents, and | ||||||
9 | offices wherever situated to the Secretary as needed to | ||||||
10 | facilitate the investigations.
| ||||||
11 | Section 90. Additional investigation and examination | ||||||
12 | authority. In addition to any authority allowed under this | ||||||
13 | Act, the Secretary may conduct investigations and examinations | ||||||
14 | as follows: | ||||||
15 | (1) For purposes of initial licensing, license | ||||||
16 | renewal, license suspension, license conditioning, license | ||||||
17 | probation, license revocation or termination, or general | ||||||
18 | or specific inquiry or investigation to determine | ||||||
19 | compliance with this Act, the Secretary may access, | ||||||
20 | receive, and use any books, accounts, records, files, | ||||||
21 | documents, information, or evidence, including, but not | ||||||
22 | limited to, the following: | ||||||
23 | (A) criminal, civil, licensure, and administrative | ||||||
24 | history information, including nonconviction data as |
| |||||||
| |||||||
1 | specified in the Criminal Code of 2012; (B) personal | ||||||
2 | history and experience information, including | ||||||
3 | independent credit reports obtained from a consumer | ||||||
4 | reporting agency described in Section 603(p) of the | ||||||
5 | federal Fair Credit Reporting Act; and (C) any other | ||||||
6 | documents, information, or evidence the Secretary | ||||||
7 | deems relevant to the inquiry or investigation, | ||||||
8 | regardless of the location, possession, control, or | ||||||
9 | custody of the documents, information, or evidence. | ||||||
10 | (2) For the purposes of investigating violations or | ||||||
11 | complaints arising under this Act or for the purposes of | ||||||
12 | examination, the Secretary may review, investigate, or | ||||||
13 | examine any licensee, individual, or person subject to | ||||||
14 | this Act as often as necessary in order to carry out the | ||||||
15 | purposes of this Act. The Secretary may direct, subpoena, | ||||||
16 | or order the attendance of, and examine under oath all | ||||||
17 | persons and order any person to produce records, files, | ||||||
18 | and any other documents the Secretary deems relevant to an | ||||||
19 | inquiry. | ||||||
20 | (3) Each person subject to this Act shall make | ||||||
21 | available to the Secretary upon request the books and | ||||||
22 | records relating to the operations of the person subject | ||||||
23 | to this Act. The Secretary shall have access to those | ||||||
24 | books and records and may interview the owners, officers, | ||||||
25 | principals, employees, independent contractors, agents, | ||||||
26 | vendors, and customers of any licensee or person subject |
| |||||||
| |||||||
1 | to this Act. | ||||||
2 | (4) Each person subject to this Act shall make or | ||||||
3 | compile reports or prepare other information as directed | ||||||
4 | by the Secretary to carry out the purposes of this | ||||||
5 | Section, including, but not limited to: | ||||||
6 | (A) accounting compilations; | ||||||
7 | (B) information lists and data concerning | ||||||
8 | transactions in a format prescribed by the Secretary; | ||||||
9 | or | ||||||
10 | (C) other information deemed necessary to carry | ||||||
11 | out the purposes of this Section. | ||||||
12 | (5) In making any examination or investigation | ||||||
13 | authorized by this Act, the Secretary may control access | ||||||
14 | to any documents and records of the licensee or person | ||||||
15 | under examination or investigation. The Secretary may take | ||||||
16 | possession of the documents and records or otherwise take | ||||||
17 | constructive control of the documents. During the period | ||||||
18 | of control, no person shall remove or alter any of the | ||||||
19 | documents or records, except pursuant to a court order or | ||||||
20 | with the consent of the Secretary. Unless the Secretary | ||||||
21 | has reasonable grounds to believe the documents or records | ||||||
22 | of the licensee have been or are at risk of being altered | ||||||
23 | or destroyed for purposes of concealing a violation of | ||||||
24 | this Act, the licensee or owner of the documents and | ||||||
25 | records shall have access to the documents or records as | ||||||
26 | necessary to conduct its ordinary business affairs. |
| |||||||
| |||||||
1 | (6) In order to carry out the purposes of this | ||||||
2 | Section, the Secretary may: | ||||||
3 | (A) retain attorneys, accountants, or other | ||||||
4 | professionals and specialists as examiners, auditors, | ||||||
5 | or investigators to conduct or assist in the conduct | ||||||
6 | of examinations or investigations; | ||||||
7 | (B) enter into agreements or relationships with | ||||||
8 | other government officials or regulatory associations | ||||||
9 | to protect consumers, improve efficiencies, and reduce | ||||||
10 | regulatory burden by sharing resources, standardized | ||||||
11 | or uniform methods or procedures, and documents, | ||||||
12 | records, information, or evidence obtained under this | ||||||
13 | Section; | ||||||
14 | (C) use, hire, contract, or employ publicly or | ||||||
15 | privately available analytical systems, methods, or | ||||||
16 | software to examine or investigate the licensee, | ||||||
17 | individual, or person subject to this Act; | ||||||
18 | (D) accept and rely on examination or | ||||||
19 | investigation reports made by other government | ||||||
20 | officials, within or outside this State; or | ||||||
21 | (E) accept audit reports made by an independent | ||||||
22 | certified public accountant for the person subject to | ||||||
23 | this Act and may incorporate the audit report in the | ||||||
24 | report of the examination, report of investigation, or | ||||||
25 | other writing of the Secretary. | ||||||
26 | (7) The authority of this Section shall remain in |
| |||||||
| |||||||
1 | effect, whether the person subject to this Act acts or | ||||||
2 | claims to act under any licensing or registration law of | ||||||
3 | this State or claims to act without the authority. | ||||||
4 | (8) No licensee or person subject to investigation or | ||||||
5 | examination under this Section may knowingly withhold, | ||||||
6 | alter, abstract, remove, mutilate, destroy, hide, or | ||||||
7 | conceal any books, records, computer records, or other | ||||||
8 | information or take actions designed to delay or | ||||||
9 | complicate review of records.
| ||||||
10 | Section 95. Confidentiality. To promote more effective | ||||||
11 | regulation, protect consumers, and reduce regulatory burden | ||||||
12 | through inter-regulatory sharing of confidential supervisory | ||||||
13 | information: | ||||||
14 | (1) The privacy or confidentiality of any information | ||||||
15 | or material provided to a multistate licensing system, | ||||||
16 | including all privileges arising under federal or state | ||||||
17 | court rules and law, shall continue to apply to the | ||||||
18 | information or material after the information or material | ||||||
19 | has been disclosed to the multistate licensing system. | ||||||
20 | Information and material may be shared with a multistate | ||||||
21 | licensing system, federal and state regulatory officials | ||||||
22 | with relevant oversight authority, and law enforcement | ||||||
23 | without the loss of privilege or the loss of | ||||||
24 | confidentiality protections. | ||||||
25 | (2) The Secretary is authorized to enter into |
| |||||||
| |||||||
1 | agreements or sharing arrangements with other governmental | ||||||
2 | agencies, the Conference of State Bank Supervisors, and | ||||||
3 | other associations representing governmental agencies. | ||||||
4 | (3) Information or material that is privileged or | ||||||
5 | confidential under this Act as determined by the Secretary | ||||||
6 | is not subject to the following: | ||||||
7 | (A) disclosure under any State law governing the | ||||||
8 | disclosure to the public of information held by an | ||||||
9 | officer or an agency of the State; or | ||||||
10 | (B) subpoena, discovery, or admission into | ||||||
11 | evidence, in any private civil action or | ||||||
12 | administrative process except as authorized by the | ||||||
13 | Secretary. | ||||||
14 | (4) Any other law relating to the disclosure of | ||||||
15 | confidential supervisory information that is inconsistent | ||||||
16 | with this Act shall be superseded by the requirements of | ||||||
17 | this Section to the extent the other law provides less | ||||||
18 | confidentiality or a weaker privilege for information that | ||||||
19 | is privileged or confidential under this Act. | ||||||
20 | (5) Confidential or privileged information received | ||||||
21 | from a multistate licensing system, another licensing | ||||||
22 | body, federal and state regulatory officials, or law | ||||||
23 | enforcement shall be protected to the same extent as the | ||||||
24 | Secretary's confidential and privileged information is | ||||||
25 | protected under this Act. The Secretary may also protect | ||||||
26 | from disclosure confidential or privileged information |
| |||||||
| |||||||
1 | that would be exempt from disclosure to the extent it is | ||||||
2 | held directly by the multistate licensing system, another | ||||||
3 | licensing body, federal and state regulatory officials, or | ||||||
4 | law enforcement.
| ||||||
5 | Section 100. Appeal and review. | ||||||
6 | (a) The Secretary may, in accordance with the Illinois | ||||||
7 | Administrative Procedure Act, adopt rules to provide for | ||||||
8 | review within the Department of their decisions affecting the | ||||||
9 | rights of persons under this Act. The review shall provide | ||||||
10 | for, at a minimum: | ||||||
11 | (1) appointment of a hearing officer; | ||||||
12 | (2) appropriate procedural rules, specific deadlines | ||||||
13 | for filings, and standards of evidence and of proof; and | ||||||
14 | (3) provisions for apportioning costs among parties to | ||||||
15 | the appeal. | ||||||
16 | (b) 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 105. Licensure fees. | ||||||
24 | (a) The fee for initial licensure is $2,500. The fee is |
| |||||||
| |||||||
1 | nonrefundable. | ||||||
2 | (b) The fee for annual application renewal is $2,500. The | ||||||
3 | fee is nonrefundable. | ||||||
4 | (c) The Department shall impose a contingent fee | ||||||
5 | sufficient to cover its operating expenses in administering | ||||||
6 | this Act not otherwise covered by all other revenue collected | ||||||
7 | under this Act. Each licensee shall pay to the Division its pro | ||||||
8 | rata share, based on number or volume of transactions or | ||||||
9 | revenue, of the cost for administration of this Act that | ||||||
10 | exceeds other fees listed in this Section, as estimated by the | ||||||
11 | Division, for the current year and any deficit actually | ||||||
12 | incurred in the administration of this Act in prior years.
| ||||||
13 | Section 110. Cease and desist order. | ||||||
14 | (a) The Secretary may issue a cease and desist order to any | ||||||
15 | licensee or person doing business without the required | ||||||
16 | license, when in the opinion of the Secretary the licensee or | ||||||
17 | other person has violated, is violating, or is about to | ||||||
18 | violate any provision of this Act or any rule adopted by the | ||||||
19 | Department under this Act or any requirement imposed in | ||||||
20 | writing by the Department as a condition of granting any | ||||||
21 | authorization permitted by this Act. The cease and desist | ||||||
22 | order authorized by this Section may be issued prior to a | ||||||
23 | hearing. | ||||||
24 | (b) The Secretary shall serve notice of the cease and | ||||||
25 | desist order, either personally or by certified mail. Service |
| |||||||
| |||||||
1 | by certified mail shall be deemed completed when the notice is | ||||||
2 | deposited in the U.S. Mail. The Secretary's notice shall | ||||||
3 | include a statement of the reasons for the action. | ||||||
4 | (c) Within 10 days after service of the cease and desist | ||||||
5 | order, the person subject to the cease and desist order may | ||||||
6 | request a hearing in writing. The Secretary shall schedule a | ||||||
7 | preliminary hearing within 60 days after the request for a | ||||||
8 | hearing unless the parties agree to a later date. | ||||||
9 | (d) If it is determined that the Secretary had the | ||||||
10 | authority to issue the cease and desist order, the Secretary | ||||||
11 | may issue the orders as may be reasonably necessary to | ||||||
12 | correct, eliminate, deter, or remedy the conduct described in | ||||||
13 | the order and resulting harms. | ||||||
14 | (e) The powers vested in the Secretary by this Section are | ||||||
15 | additional to all other powers and remedies vested in the | ||||||
16 | Secretary by any law. Nothing in this Section shall be | ||||||
17 | construed as requiring that the Secretary shall employ the | ||||||
18 | power conferred in this Section instead of or as a condition | ||||||
19 | precedent to the exercise of any other power or remedy vested | ||||||
20 | in the Secretary.
| ||||||
21 | Section 115. Injunctions. The Secretary may maintain an | ||||||
22 | action in the name of the people of the State of Illinois and | ||||||
23 | may apply for an injunction in the circuit court to enjoin a | ||||||
24 | person from violating this Act or its implementing rules | ||||||
25 | through the Attorney General.
|
| |||||||
| |||||||
1 | Section 120. Exemptions. This Act does not apply to, and | ||||||
2 | does not place any additional requirements or obligations | ||||||
3 | upon, any of the following: | ||||||
4 | (1) any person or entity is not a provider; | ||||||
5 | (2) a commercial financing transaction secured by real | ||||||
6 | property; | ||||||
7 | (3) a lease as defined in Section 2-A-103 of the | ||||||
8 | Uniform Commercial Code, not including finance leases as | ||||||
9 | defined in paragraph (g) of subsection (1) of Section | ||||||
10 | 2A-103 of the Uniform Commercial Code; or | ||||||
11 | (4) any person or Provider who makes no more than 5 | ||||||
12 | commercial financing transactions in this State in a | ||||||
13 | 12-month period; | ||||||
14 | (5) a single, discrete commercial financing | ||||||
15 | transaction in an amount over $2,500,000; or | ||||||
16 | (6) a commercial financing transaction in which the | ||||||
17 | recipient is a vehicle dealer subject to Section 5-101 or | ||||||
18 | 5-102 of the Illinois Vehicle Code, an affiliate of a | ||||||
19 | dealer, a rental vehicle company as defined in Section 10 | ||||||
20 | of the Renter's Financial Responsibility and Protection | ||||||
21 | Act, or an affiliate of a company under a commercial | ||||||
22 | financing agreement or commercial open-end credit plan of | ||||||
23 | at least $50,000, including any commercial loan made under | ||||||
24 | a commercial financing transaction.
|
| |||||||
| |||||||
1 | Section 125. Complaint disclosure. All commercial | ||||||
2 | financing shall include a clear and conspicuous notice on how | ||||||
3 | to file a complaint with the Department.
| ||||||
4 | Section 130. Rules. The Secretary may adopt rules to enact | ||||||
5 | and enforce this Act, including, but not limited to: | ||||||
6 | (1) rules defining the terms used in this Act and as | ||||||
7 | may be necessary and appropriate to interpret and | ||||||
8 | implement the provisions of this Act; | ||||||
9 | (2) rules for the enforcement and administration of | ||||||
10 | this Act; | ||||||
11 | (3) rules for the protection of consumers and | ||||||
12 | recipients in this State; | ||||||
13 | (4) rules defining improper or fraudulent business | ||||||
14 | practices in connection with commercial financing; | ||||||
15 | (5) rules charging and collecting fees necessary to | ||||||
16 | cover the costs of administering this Act, including, but | ||||||
17 | not limited to registration, investigation, and | ||||||
18 | examination fees; and | ||||||
19 | (6) rules to implement Section 155.
| ||||||
20 | Section 135. Violations. | ||||||
21 | (a) Nothing in this Act shall be construed to restrict the | ||||||
22 | exercise of powers or the performance of the duties that the | ||||||
23 | Attorney General is authorized to exercise or perform by law. | ||||||
24 | (b) Any violation of this Act constitutes an unlawful |
| |||||||
| |||||||
1 | practice in violation of the Consumer Fraud and Deceptive | ||||||
2 | Business Practices Act. The Attorney General may enforce a | ||||||
3 | violation of this Act as an unlawful practice under the | ||||||
4 | Consumer Fraud and Deceptive Business Practices Act.
| ||||||
5 | Section 140. Beginning of licensure. No person shall be | ||||||
6 | required to apply for or obtain a license under this Act before | ||||||
7 | the date established by the Department by rule. The date shall | ||||||
8 | not be before January 1, 2025.
| ||||||
9 | Section 145. Beginning of disclosure requirements. No | ||||||
10 | person shall be required to comply with the disclosure | ||||||
11 | requirements set forth in Section 155 before the date | ||||||
12 | established by the Department by rule. The date shall not be | ||||||
13 | before January 1, 2025.
| ||||||
14 | Section 155. Commercial financing database. | ||||||
15 | (a) A commercial financing database program is established | ||||||
16 | within the Department. The program shall be administered in | ||||||
17 | accordance with this Section. None of the duties, obligations, | ||||||
18 | contingencies, or consequences of or from the program shall be | ||||||
19 | imposed until 6 months after the Department certifies a | ||||||
20 | commercial financing database under subsection (b). The | ||||||
21 | program shall apply to all commercial financings that are | ||||||
22 | governed by this Act and that are made or taken on or after the | ||||||
23 | inception of the program. |
| |||||||
| |||||||
1 | (b) The Department shall certify that a commercial | ||||||
2 | financing database is a commercially reasonable method of | ||||||
3 | reporting. Upon certifying that a commercial financing | ||||||
4 | database is a commercially reasonable method of reporting, the | ||||||
5 | Department shall: | ||||||
6 | (1) provide reasonable notice to all licensees | ||||||
7 | identifying the commercially reasonable method of | ||||||
8 | reporting that is available; and | ||||||
9 | (2) immediately upon certification, require each | ||||||
10 | licensee to use a commercially reasonable method of | ||||||
11 | reporting as a means of complying with subsection (d) of | ||||||
12 | this Section. | ||||||
13 | (c) The database created under this program shall be | ||||||
14 | maintained and administered by the Department. The database | ||||||
15 | shall be designed to allow providers to submit information to | ||||||
16 | the database online. The database shall not be designed to | ||||||
17 | allow providers to retrieve information from the database, | ||||||
18 | except as otherwise provided in this Act. | ||||||
19 | (d) Within 30 days after providing funds to a recipient, | ||||||
20 | the provider shall submit to the commercial financing database | ||||||
21 | the information delineated in this subsection, if applicable | ||||||
22 | to the financing. If at the time funds are provided to a | ||||||
23 | recipient, certain information delineated in this subsection | ||||||
24 | is not known, the provider shall submit the information to the | ||||||
25 | commercial financing database within 30 days after the | ||||||
26 | information becoming ascertainable: |
| |||||||
| |||||||
1 | (1) FEIN for the recipient; | ||||||
2 | (2) zip code of the recipient; | ||||||
3 | (3) origination date of the commercial financing; | ||||||
4 | (4) description of collateral, if any, securing | ||||||
5 | commercial financing; | ||||||
6 | (5) term, if any, of the commercial financing at the | ||||||
7 | time of origination; | ||||||
8 | (6) in the case of commercial financing without a | ||||||
9 | specific term at the time of origination, the actual term | ||||||
10 | of the commercial financing when known; | ||||||
11 | (7) financing amount, if applicable; | ||||||
12 | (8) maximum amount of credit made available to | ||||||
13 | recipient, if applicable; | ||||||
14 | (9) the amount of the receivables purchase price paid | ||||||
15 | to the recipient and, if different from the purchase | ||||||
16 | price, the amount disbursed to the recipient after any | ||||||
17 | amount deducted or withheld at disbursement, if | ||||||
18 | applicable; | ||||||
19 | (10) the amount scheduled to be drawn by the recipient | ||||||
20 | at the time the offer is extended, if applicable; | ||||||
21 | (11) all fees charged to the recipient at or before | ||||||
22 | the origination date of the commercial financing; | ||||||
23 | (12) all fees, charges, and interest scheduled to be | ||||||
24 | charged over the term of the commercial financing, if | ||||||
25 | applicable; | ||||||
26 | (13) all fees, charges, and interest scheduled to be |
| |||||||
| |||||||
1 | charged during any month in which the recipient has a | ||||||
2 | balance on an open-end commercial financing, if | ||||||
3 | applicable; and | ||||||
4 | (14) the APR or Estimated APR, if required by the | ||||||
5 | Department; and | ||||||
6 | (15) all other information requested by the | ||||||
7 | Department. | ||||||
8 | (e) All personally identifiable information and | ||||||
9 | information identifying the identity of a recipient obtained | ||||||
10 | by way of the commercial financing database is strictly | ||||||
11 | confidential and shall be exempt from disclosure under the | ||||||
12 | Freedom of Information Act and any other law or regulation | ||||||
13 | pertaining to the disclosure of information or documents. The | ||||||
14 | Department may, by rule, identify any additional categories of | ||||||
15 | information the disclosure of which would be contrary to the | ||||||
16 | public interest. Any request for production of information | ||||||
17 | from the commercial financing database, whether by subpoena, | ||||||
18 | notice, or any other source, shall be referred to the | ||||||
19 | Department. Any recipient may authorize in writing the release | ||||||
20 | of database information. The Department may use the | ||||||
21 | information in the database without the consent of the | ||||||
22 | recipient or the licensee: | ||||||
23 | (1) for the purposes of administering and enforcing | ||||||
24 | the program; | ||||||
25 | (2) to prepare industry-level reports; | ||||||
26 | (3) to provide information to the appropriate law |
| |||||||
| |||||||
1 | enforcement agency or the applicable administrative or | ||||||
2 | regulatory agency with a legitimate interest in the | ||||||
3 | information as determined by the Secretary; | ||||||
4 | (4) as required to comply with applicable law; or | ||||||
5 | (5) in any other manner that the Secretary deems is | ||||||
6 | not contrary to the public interest. | ||||||
7 | (f) A licensee who submits information to a certified | ||||||
8 | database provider in accordance with this Section shall not be | ||||||
9 | liable to any person for any subsequent release or disclosure | ||||||
10 | of that information by the certified database provider, the | ||||||
11 | Department, or any other person acquiring possession of the | ||||||
12 | information, regardless of whether the subsequent release or | ||||||
13 | disclosure was lawful, authorized, or intentional. | ||||||
14 | (g) In certifying a commercially reasonable method of | ||||||
15 | reporting, the Department shall ensure that the commercial | ||||||
16 | financing database: | ||||||
17 | (1) provides real-time access through an Internet | ||||||
18 | connection; | ||||||
19 | (2) is accessible to the Department and to licensees | ||||||
20 | in order to ensure compliance with this Act and in order to | ||||||
21 | provide any other information that the Department deems | ||||||
22 | necessary; | ||||||
23 | (3) requires licensees to input whatever information | ||||||
24 | is required by the Department; | ||||||
25 | (4) maintains a real-time copy of the required | ||||||
26 | reporting information that is available to the Department |
| |||||||
| |||||||
1 | at all times and is the property of the Department; and | ||||||
2 | (5) contains safeguards to ensure that all information | ||||||
3 | contained in the database regarding consumers is kept | ||||||
4 | strictly confidential. | ||||||
5 | (h) The certified commercial financing database may charge | ||||||
6 | a fee to a licensee not to exceed $1 for each financing entered | ||||||
7 | into the database. The certified commercial financing database | ||||||
8 | shall not charge any additional fees or charges. | ||||||
9 | (i) The certified commercial financing database provider | ||||||
10 | shall produce an annual report for the Department using the | ||||||
11 | data submitted by licensees to the database. The Department | ||||||
12 | may publish this report to the public.
| ||||||
13 | Section 160. Severability. The provisions of this Act are | ||||||
14 | severable under Section 1.31 of the Statute on Statutes.
| ||||||
15 | Section 900. The Freedom of Information Act is amended by | ||||||
16 | changing Section 7.5 as follows:
| ||||||
17 | (5 ILCS 140/7.5) | ||||||
18 | (Text of Section before amendment by P.A. 103-472 ) | ||||||
19 | Sec. 7.5. Statutory exemptions. To the extent provided for | ||||||
20 | by the statutes referenced below, the following shall be | ||||||
21 | exempt from inspection and copying: | ||||||
22 | (a) All information determined to be confidential | ||||||
23 | under Section 4002 of the Technology Advancement and |
| |||||||
| |||||||
1 | Development Act. | ||||||
2 | (b) Library circulation and order records identifying | ||||||
3 | library users with specific materials under the Library | ||||||
4 | Records Confidentiality Act. | ||||||
5 | (c) Applications, related documents, and medical | ||||||
6 | records received by the Experimental Organ Transplantation | ||||||
7 | Procedures Board and any and all documents or other | ||||||
8 | records prepared by the Experimental Organ Transplantation | ||||||
9 | Procedures Board or its staff relating to applications it | ||||||
10 | has received. | ||||||
11 | (d) Information and records held by the Department of | ||||||
12 | Public Health and its authorized representatives relating | ||||||
13 | to known or suspected cases of sexually transmissible | ||||||
14 | disease or any information the disclosure of which is | ||||||
15 | restricted under the Illinois Sexually Transmissible | ||||||
16 | Disease Control Act. | ||||||
17 | (e) Information the disclosure of which is exempted | ||||||
18 | under Section 30 of the Radon Industry Licensing Act. | ||||||
19 | (f) Firm performance evaluations under Section 55 of | ||||||
20 | the Architectural, Engineering, and Land Surveying | ||||||
21 | Qualifications Based Selection Act. | ||||||
22 | (g) Information the disclosure of which is restricted | ||||||
23 | and exempted under Section 50 of the Illinois Prepaid | ||||||
24 | Tuition Act. | ||||||
25 | (h) Information the disclosure of which is exempted | ||||||
26 | under the State Officials and Employees Ethics Act, and |
| |||||||
| |||||||
1 | records of any lawfully created State or local inspector | ||||||
2 | general's office that would be exempt if created or | ||||||
3 | obtained by an Executive Inspector General's office under | ||||||
4 | that Act. | ||||||
5 | (i) Information contained in a local emergency energy | ||||||
6 | plan submitted to a municipality in accordance with a | ||||||
7 | local emergency energy plan ordinance that is adopted | ||||||
8 | under Section 11-21.5-5 of the Illinois Municipal Code. | ||||||
9 | (j) Information and data concerning the distribution | ||||||
10 | of surcharge moneys collected and remitted by carriers | ||||||
11 | under the Emergency Telephone System Act. | ||||||
12 | (k) Law enforcement officer identification information | ||||||
13 | or driver identification information compiled by a law | ||||||
14 | enforcement agency or the Department of Transportation | ||||||
15 | under Section 11-212 of the Illinois Vehicle Code. | ||||||
16 | (l) Records and information provided to a residential | ||||||
17 | health care facility resident sexual assault and death | ||||||
18 | review team or the Executive Council under the Abuse | ||||||
19 | Prevention Review Team Act. | ||||||
20 | (m) Information provided to the predatory lending | ||||||
21 | database created pursuant to Article 3 of the Residential | ||||||
22 | Real Property Disclosure Act, except to the extent | ||||||
23 | authorized under that Article. | ||||||
24 | (n) Defense budgets and petitions for certification of | ||||||
25 | compensation and expenses for court appointed trial | ||||||
26 | counsel as provided under Sections 10 and 15 of the |
| |||||||
| |||||||
1 | Capital Crimes Litigation Act (repealed) . This subsection | ||||||
2 | (n) shall apply until the conclusion of the trial of the | ||||||
3 | case, even if the prosecution chooses not to pursue the | ||||||
4 | death penalty prior to trial or sentencing. | ||||||
5 | (o) Information that is prohibited from being | ||||||
6 | disclosed under Section 4 of the Illinois Health and | ||||||
7 | Hazardous Substances Registry Act. | ||||||
8 | (p) Security portions of system safety program plans, | ||||||
9 | investigation reports, surveys, schedules, lists, data, or | ||||||
10 | information compiled, collected, or prepared by or for the | ||||||
11 | Department of Transportation under Sections 2705-300 and | ||||||
12 | 2705-616 of the Department of Transportation Law of the | ||||||
13 | Civil Administrative Code of Illinois, the Regional | ||||||
14 | Transportation Authority under Section 2.11 of the | ||||||
15 | Regional Transportation Authority Act, or the St. Clair | ||||||
16 | County Transit District under the Bi-State Transit Safety | ||||||
17 | Act (repealed) . | ||||||
18 | (q) Information prohibited from being disclosed by the | ||||||
19 | Personnel Record Review Act. | ||||||
20 | (r) Information prohibited from being disclosed by the | ||||||
21 | Illinois School Student Records Act. | ||||||
22 | (s) Information the disclosure of which is restricted | ||||||
23 | under Section 5-108 of the Public Utilities Act. | ||||||
24 | (t) (Blank). | ||||||
25 | (u) Records and information provided to an independent | ||||||
26 | team of experts under the Developmental Disability and |
| |||||||
| |||||||
1 | Mental Health Safety Act (also known as Brian's Law). | ||||||
2 | (v) Names and information of people who have applied | ||||||
3 | for or received Firearm Owner's Identification Cards under | ||||||
4 | the Firearm Owners Identification Card Act or applied for | ||||||
5 | or received a concealed carry license under the Firearm | ||||||
6 | Concealed Carry Act, unless otherwise authorized by the | ||||||
7 | Firearm Concealed Carry Act; and databases under the | ||||||
8 | Firearm Concealed Carry Act, records of the Concealed | ||||||
9 | Carry Licensing Review Board under the Firearm Concealed | ||||||
10 | Carry Act, and law enforcement agency objections under the | ||||||
11 | Firearm Concealed Carry Act. | ||||||
12 | (v-5) Records of the Firearm Owner's Identification | ||||||
13 | Card Review Board that are exempted from disclosure under | ||||||
14 | Section 10 of the Firearm Owners Identification Card Act. | ||||||
15 | (w) Personally identifiable information which is | ||||||
16 | exempted from disclosure under subsection (g) of Section | ||||||
17 | 19.1 of the Toll Highway Act. | ||||||
18 | (x) Information which is exempted from disclosure | ||||||
19 | under Section 5-1014.3 of the Counties Code or Section | ||||||
20 | 8-11-21 of the Illinois Municipal Code. | ||||||
21 | (y) Confidential information under the Adult | ||||||
22 | Protective Services Act and its predecessor enabling | ||||||
23 | statute, the Elder Abuse and Neglect Act, including | ||||||
24 | information about the identity and administrative finding | ||||||
25 | against any caregiver of a verified and substantiated | ||||||
26 | decision of abuse, neglect, or financial exploitation of |
| |||||||
| |||||||
1 | an eligible adult maintained in the Registry established | ||||||
2 | under Section 7.5 of the Adult Protective Services Act. | ||||||
3 | (z) Records and information provided to a fatality | ||||||
4 | review team or the Illinois Fatality Review Team Advisory | ||||||
5 | Council under Section 15 of the Adult Protective Services | ||||||
6 | Act. | ||||||
7 | (aa) Information which is exempted from disclosure | ||||||
8 | under Section 2.37 of the Wildlife Code. | ||||||
9 | (bb) Information which is or was prohibited from | ||||||
10 | disclosure by the Juvenile Court Act of 1987. | ||||||
11 | (cc) Recordings made under the Law Enforcement | ||||||
12 | Officer-Worn Body Camera Act, except to the extent | ||||||
13 | authorized under that Act. | ||||||
14 | (dd) Information that is prohibited from being | ||||||
15 | disclosed under Section 45 of the Condominium and Common | ||||||
16 | Interest Community Ombudsperson Act. | ||||||
17 | (ee) Information that is exempted from disclosure | ||||||
18 | under Section 30.1 of the Pharmacy Practice Act. | ||||||
19 | (ff) Information that is exempted from disclosure | ||||||
20 | under the Revised Uniform Unclaimed Property Act. | ||||||
21 | (gg) Information that is prohibited from being | ||||||
22 | disclosed under Section 7-603.5 of the Illinois Vehicle | ||||||
23 | Code. | ||||||
24 | (hh) Records that are exempt from disclosure under | ||||||
25 | Section 1A-16.7 of the Election Code. | ||||||
26 | (ii) Information which is exempted from disclosure |
| |||||||
| |||||||
1 | under Section 2505-800 of the Department of Revenue Law of | ||||||
2 | the Civil Administrative Code of Illinois. | ||||||
3 | (jj) Information and reports that are required to be | ||||||
4 | submitted to the Department of Labor by registering day | ||||||
5 | and temporary labor service agencies but are exempt from | ||||||
6 | disclosure under subsection (a-1) of Section 45 of the Day | ||||||
7 | and Temporary Labor Services Act. | ||||||
8 | (kk) Information prohibited from disclosure under the | ||||||
9 | Seizure and Forfeiture Reporting Act. | ||||||
10 | (ll) Information the disclosure of which is restricted | ||||||
11 | and exempted under Section 5-30.8 of the Illinois Public | ||||||
12 | Aid Code. | ||||||
13 | (mm) Records that are exempt from disclosure under | ||||||
14 | Section 4.2 of the Crime Victims Compensation Act. | ||||||
15 | (nn) Information that is exempt from disclosure under | ||||||
16 | Section 70 of the Higher Education Student Assistance Act. | ||||||
17 | (oo) Communications, notes, records, and reports | ||||||
18 | arising out of a peer support counseling session | ||||||
19 | prohibited from disclosure under the First Responders | ||||||
20 | Suicide Prevention Act. | ||||||
21 | (pp) Names and all identifying information relating to | ||||||
22 | an employee of an emergency services provider or law | ||||||
23 | enforcement agency under the First Responders Suicide | ||||||
24 | Prevention Act. | ||||||
25 | (qq) Information and records held by the Department of | ||||||
26 | Public Health and its authorized representatives collected |
| |||||||
| |||||||
1 | under the Reproductive Health Act. | ||||||
2 | (rr) Information that is exempt from disclosure under | ||||||
3 | the Cannabis Regulation and Tax Act. | ||||||
4 | (ss) Data reported by an employer to the Department of | ||||||
5 | Human Rights pursuant to Section 2-108 of the Illinois | ||||||
6 | Human Rights Act. | ||||||
7 | (tt) Recordings made under the Children's Advocacy | ||||||
8 | Center Act, except to the extent authorized under that | ||||||
9 | Act. | ||||||
10 | (uu) Information that is exempt from disclosure under | ||||||
11 | Section 50 of the Sexual Assault Evidence Submission Act. | ||||||
12 | (vv) Information that is exempt from disclosure under | ||||||
13 | subsections (f) and (j) of Section 5-36 of the Illinois | ||||||
14 | Public Aid Code. | ||||||
15 | (ww) Information that is exempt from disclosure under | ||||||
16 | Section 16.8 of the State Treasurer Act. | ||||||
17 | (xx) Information that is exempt from disclosure or | ||||||
18 | information that shall not be made public under the | ||||||
19 | Illinois Insurance Code. | ||||||
20 | (yy) Information prohibited from being disclosed under | ||||||
21 | the Illinois Educational Labor Relations Act. | ||||||
22 | (zz) Information prohibited from being disclosed under | ||||||
23 | the Illinois Public Labor Relations Act. | ||||||
24 | (aaa) Information prohibited from being disclosed | ||||||
25 | under Section 1-167 of the Illinois Pension Code. | ||||||
26 | (bbb) Information that is prohibited from disclosure |
| |||||||
| |||||||
1 | by the Illinois Police Training Act and the Illinois State | ||||||
2 | Police Act. | ||||||
3 | (ccc) Records exempt from disclosure under Section | ||||||
4 | 2605-304 of the Illinois State Police Law of the Civil | ||||||
5 | Administrative Code of Illinois. | ||||||
6 | (ddd) Information prohibited from being disclosed | ||||||
7 | under Section 35 of the Address Confidentiality for | ||||||
8 | Victims of Domestic Violence, Sexual Assault, Human | ||||||
9 | Trafficking, or Stalking Act. | ||||||
10 | (eee) Information prohibited from being disclosed | ||||||
11 | under subsection (b) of Section 75 of the Domestic | ||||||
12 | Violence Fatality Review Act. | ||||||
13 | (fff) Images from cameras under the Expressway Camera | ||||||
14 | Act. This subsection (fff) is inoperative on and after | ||||||
15 | July 1, 2025. | ||||||
16 | (ggg) Information prohibited from disclosure under | ||||||
17 | paragraph (3) of subsection (a) of Section 14 of the Nurse | ||||||
18 | Agency Licensing Act. | ||||||
19 | (hhh) Information submitted to the Illinois State | ||||||
20 | Police in an affidavit or application for an assault | ||||||
21 | weapon endorsement, assault weapon attachment endorsement, | ||||||
22 | .50 caliber rifle endorsement, or .50 caliber cartridge | ||||||
23 | endorsement under the Firearm Owners Identification Card | ||||||
24 | Act. | ||||||
25 | (iii) Data exempt from disclosure under Section 50 of | ||||||
26 | the School Safety Drill Act. |
| |||||||
| |||||||
1 | (jjj) (hhh) Information exempt from disclosure under | ||||||
2 | Section 30 of the Insurance Data Security Law. | ||||||
3 | (kkk) (iii) Confidential business information | ||||||
4 | prohibited from disclosure under Section 45 of the Paint | ||||||
5 | Stewardship Act. | ||||||
6 | (lll) (Reserved). | ||||||
7 | (mmm) (iii) Information prohibited from being | ||||||
8 | disclosed under subsection (e) of Section 1-129 of the | ||||||
9 | Illinois Power Agency Act. | ||||||
10 | (nnn) Information exempt from disclosure under Section | ||||||
11 | 155 of the Consumer Protections for Small Business Act. | ||||||
12 | (Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22; | ||||||
13 | 102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff. | ||||||
14 | 8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22; | ||||||
15 | 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff. | ||||||
16 | 6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372, | ||||||
17 | eff. 1-1-24; 103-508, eff. 8-4-23; 103-580, eff. 12-8-23; | ||||||
18 | revised 1-2-24.)
| ||||||
19 | (Text of Section after amendment by P.A. 103-472 ) | ||||||
20 | Sec. 7.5. Statutory exemptions. To the extent provided for | ||||||
21 | by the statutes referenced below, the following shall be | ||||||
22 | exempt from inspection and copying: | ||||||
23 | (a) All information determined to be confidential | ||||||
24 | under Section 4002 of the Technology Advancement and | ||||||
25 | Development Act. |
| |||||||
| |||||||
1 | (b) Library circulation and order records identifying | ||||||
2 | library users with specific materials under the Library | ||||||
3 | Records Confidentiality Act. | ||||||
4 | (c) Applications, related documents, and medical | ||||||
5 | records received by the Experimental Organ Transplantation | ||||||
6 | Procedures Board and any and all documents or other | ||||||
7 | records prepared by the Experimental Organ Transplantation | ||||||
8 | Procedures Board or its staff relating to applications it | ||||||
9 | has received. | ||||||
10 | (d) Information and records held by the Department of | ||||||
11 | Public Health and its authorized representatives relating | ||||||
12 | to known or suspected cases of sexually transmissible | ||||||
13 | disease or any information the disclosure of which is | ||||||
14 | restricted under the Illinois Sexually Transmissible | ||||||
15 | Disease Control Act. | ||||||
16 | (e) Information the disclosure of which is exempted | ||||||
17 | under Section 30 of the Radon Industry Licensing Act. | ||||||
18 | (f) Firm performance evaluations under Section 55 of | ||||||
19 | the Architectural, Engineering, and Land Surveying | ||||||
20 | Qualifications Based Selection Act. | ||||||
21 | (g) Information the disclosure of which is restricted | ||||||
22 | and exempted under Section 50 of the Illinois Prepaid | ||||||
23 | Tuition Act. | ||||||
24 | (h) Information the disclosure of which is exempted | ||||||
25 | under the State Officials and Employees Ethics Act, and | ||||||
26 | records of any lawfully created State or local inspector |
| |||||||
| |||||||
1 | general's office that would be exempt if created or | ||||||
2 | obtained by an Executive Inspector General's office under | ||||||
3 | that Act. | ||||||
4 | (i) Information contained in a local emergency energy | ||||||
5 | plan submitted to a municipality in accordance with a | ||||||
6 | local emergency energy plan ordinance that is adopted | ||||||
7 | under Section 11-21.5-5 of the Illinois Municipal Code. | ||||||
8 | (j) Information and data concerning the distribution | ||||||
9 | of surcharge moneys collected and remitted by carriers | ||||||
10 | under the Emergency Telephone System Act. | ||||||
11 | (k) Law enforcement officer identification information | ||||||
12 | or driver identification information compiled by a law | ||||||
13 | enforcement agency or the Department of Transportation | ||||||
14 | under Section 11-212 of the Illinois Vehicle Code. | ||||||
15 | (l) Records and information provided to a residential | ||||||
16 | health care facility resident sexual assault and death | ||||||
17 | review team or the Executive Council under the Abuse | ||||||
18 | Prevention Review Team Act. | ||||||
19 | (m) Information provided to the predatory lending | ||||||
20 | database created pursuant to Article 3 of the Residential | ||||||
21 | Real Property Disclosure Act, except to the extent | ||||||
22 | authorized under that Article. | ||||||
23 | (n) Defense budgets and petitions for certification of | ||||||
24 | compensation and expenses for court appointed trial | ||||||
25 | counsel as provided under Sections 10 and 15 of the | ||||||
26 | Capital Crimes Litigation Act (repealed) . This subsection |
| |||||||
| |||||||
1 | (n) shall apply until the conclusion of the trial of the | ||||||
2 | case, even if the prosecution chooses not to pursue the | ||||||
3 | death penalty prior to trial or sentencing. | ||||||
4 | (o) Information that is prohibited from being | ||||||
5 | disclosed under Section 4 of the Illinois Health and | ||||||
6 | Hazardous Substances Registry Act. | ||||||
7 | (p) Security portions of system safety program plans, | ||||||
8 | investigation reports, surveys, schedules, lists, data, or | ||||||
9 | information compiled, collected, or prepared by or for the | ||||||
10 | Department of Transportation under Sections 2705-300 and | ||||||
11 | 2705-616 of the Department of Transportation Law of the | ||||||
12 | Civil Administrative Code of Illinois, the Regional | ||||||
13 | Transportation Authority under Section 2.11 of the | ||||||
14 | Regional Transportation Authority Act, or the St. Clair | ||||||
15 | County Transit District under the Bi-State Transit Safety | ||||||
16 | Act (repealed) . | ||||||
17 | (q) Information prohibited from being disclosed by the | ||||||
18 | Personnel Record Review Act. | ||||||
19 | (r) Information prohibited from being disclosed by the | ||||||
20 | Illinois School Student Records Act. | ||||||
21 | (s) Information the disclosure of which is restricted | ||||||
22 | under Section 5-108 of the Public Utilities Act. | ||||||
23 | (t) (Blank). | ||||||
24 | (u) Records and information provided to an independent | ||||||
25 | team of experts under the Developmental Disability and | ||||||
26 | Mental Health Safety Act (also known as Brian's Law). |
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1 | (v) Names and information of people who have applied | ||||||
2 | for or received Firearm Owner's Identification Cards under | ||||||
3 | the Firearm Owners Identification Card Act or applied for | ||||||
4 | or received a concealed carry license under the Firearm | ||||||
5 | Concealed Carry Act, unless otherwise authorized by the | ||||||
6 | Firearm Concealed Carry Act; and databases under the | ||||||
7 | Firearm Concealed Carry Act, records of the Concealed | ||||||
8 | Carry Licensing Review Board under the Firearm Concealed | ||||||
9 | Carry Act, and law enforcement agency objections under the | ||||||
10 | Firearm Concealed Carry Act. | ||||||
11 | (v-5) Records of the Firearm Owner's Identification | ||||||
12 | Card Review Board that are exempted from disclosure under | ||||||
13 | Section 10 of the Firearm Owners Identification Card Act. | ||||||
14 | (w) Personally identifiable information which is | ||||||
15 | exempted from disclosure under subsection (g) of Section | ||||||
16 | 19.1 of the Toll Highway Act. | ||||||
17 | (x) Information which is exempted from disclosure | ||||||
18 | under Section 5-1014.3 of the Counties Code or Section | ||||||
19 | 8-11-21 of the Illinois Municipal Code. | ||||||
20 | (y) Confidential information under the Adult | ||||||
21 | Protective Services Act and its predecessor enabling | ||||||
22 | statute, the Elder Abuse and Neglect Act, including | ||||||
23 | information about the identity and administrative finding | ||||||
24 | against any caregiver of a verified and substantiated | ||||||
25 | decision of abuse, neglect, or financial exploitation of | ||||||
26 | an eligible adult maintained in the Registry established |
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1 | under Section 7.5 of the Adult Protective Services Act. | ||||||
2 | (z) Records and information provided to a fatality | ||||||
3 | review team or the Illinois Fatality Review Team Advisory | ||||||
4 | Council under Section 15 of the Adult Protective Services | ||||||
5 | Act. | ||||||
6 | (aa) Information which is exempted from disclosure | ||||||
7 | under Section 2.37 of the Wildlife Code. | ||||||
8 | (bb) Information which is or was prohibited from | ||||||
9 | disclosure by the Juvenile Court Act of 1987. | ||||||
10 | (cc) Recordings made under the Law Enforcement | ||||||
11 | Officer-Worn Body Camera Act, except to the extent | ||||||
12 | authorized under that Act. | ||||||
13 | (dd) Information that is prohibited from being | ||||||
14 | disclosed under Section 45 of the Condominium and Common | ||||||
15 | Interest Community Ombudsperson Act. | ||||||
16 | (ee) Information that is exempted from disclosure | ||||||
17 | under Section 30.1 of the Pharmacy Practice Act. | ||||||
18 | (ff) Information that is exempted from disclosure | ||||||
19 | under the Revised Uniform Unclaimed Property Act. | ||||||
20 | (gg) Information that is prohibited from being | ||||||
21 | disclosed under Section 7-603.5 of the Illinois Vehicle | ||||||
22 | Code. | ||||||
23 | (hh) Records that are exempt from disclosure under | ||||||
24 | Section 1A-16.7 of the Election Code. | ||||||
25 | (ii) Information which is exempted from disclosure | ||||||
26 | under Section 2505-800 of the Department of Revenue Law of |
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1 | the Civil Administrative Code of Illinois. | ||||||
2 | (jj) Information and reports that are required to be | ||||||
3 | submitted to the Department of Labor by registering day | ||||||
4 | and temporary labor service agencies but are exempt from | ||||||
5 | disclosure under subsection (a-1) of Section 45 of the Day | ||||||
6 | and Temporary Labor Services Act. | ||||||
7 | (kk) Information prohibited from disclosure under the | ||||||
8 | Seizure and Forfeiture Reporting Act. | ||||||
9 | (ll) Information the disclosure of which is restricted | ||||||
10 | and exempted under Section 5-30.8 of the Illinois Public | ||||||
11 | Aid Code. | ||||||
12 | (mm) Records that are exempt from disclosure under | ||||||
13 | Section 4.2 of the Crime Victims Compensation Act. | ||||||
14 | (nn) Information that is exempt from disclosure under | ||||||
15 | Section 70 of the Higher Education Student Assistance Act. | ||||||
16 | (oo) Communications, notes, records, and reports | ||||||
17 | arising out of a peer support counseling session | ||||||
18 | prohibited from disclosure under the First Responders | ||||||
19 | Suicide Prevention Act. | ||||||
20 | (pp) Names and all identifying information relating to | ||||||
21 | an employee of an emergency services provider or law | ||||||
22 | enforcement agency under the First Responders Suicide | ||||||
23 | Prevention Act. | ||||||
24 | (qq) Information and records held by the Department of | ||||||
25 | Public Health and its authorized representatives collected | ||||||
26 | under the Reproductive Health Act. |
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1 | (rr) Information that is exempt from disclosure under | ||||||
2 | the Cannabis Regulation and Tax Act. | ||||||
3 | (ss) Data reported by an employer to the Department of | ||||||
4 | Human Rights pursuant to Section 2-108 of the Illinois | ||||||
5 | Human Rights Act. | ||||||
6 | (tt) Recordings made under the Children's Advocacy | ||||||
7 | Center Act, except to the extent authorized under that | ||||||
8 | Act. | ||||||
9 | (uu) Information that is exempt from disclosure under | ||||||
10 | Section 50 of the Sexual Assault Evidence Submission Act. | ||||||
11 | (vv) Information that is exempt from disclosure under | ||||||
12 | subsections (f) and (j) of Section 5-36 of the Illinois | ||||||
13 | Public Aid Code. | ||||||
14 | (ww) Information that is exempt from disclosure under | ||||||
15 | Section 16.8 of the State Treasurer Act. | ||||||
16 | (xx) Information that is exempt from disclosure or | ||||||
17 | information that shall not be made public under the | ||||||
18 | Illinois Insurance Code. | ||||||
19 | (yy) Information prohibited from being disclosed under | ||||||
20 | the Illinois Educational Labor Relations Act. | ||||||
21 | (zz) Information prohibited from being disclosed under | ||||||
22 | the Illinois Public Labor Relations Act. | ||||||
23 | (aaa) Information prohibited from being disclosed | ||||||
24 | under Section 1-167 of the Illinois Pension Code. | ||||||
25 | (bbb) Information that is prohibited from disclosure | ||||||
26 | by the Illinois Police Training Act and the Illinois State |
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1 | Police Act. | ||||||
2 | (ccc) Records exempt from disclosure under Section | ||||||
3 | 2605-304 of the Illinois State Police Law of the Civil | ||||||
4 | Administrative Code of Illinois. | ||||||
5 | (ddd) Information prohibited from being disclosed | ||||||
6 | under Section 35 of the Address Confidentiality for | ||||||
7 | Victims of Domestic Violence, Sexual Assault, Human | ||||||
8 | Trafficking, or Stalking Act. | ||||||
9 | (eee) Information prohibited from being disclosed | ||||||
10 | under subsection (b) of Section 75 of the Domestic | ||||||
11 | Violence Fatality Review Act. | ||||||
12 | (fff) Images from cameras under the Expressway Camera | ||||||
13 | Act. This subsection (fff) is inoperative on and after | ||||||
14 | July 1, 2025. | ||||||
15 | (ggg) Information prohibited from disclosure under | ||||||
16 | paragraph (3) of subsection (a) of Section 14 of the Nurse | ||||||
17 | Agency Licensing Act. | ||||||
18 | (hhh) Information submitted to the Illinois State | ||||||
19 | Police in an affidavit or application for an assault | ||||||
20 | weapon endorsement, assault weapon attachment endorsement, | ||||||
21 | .50 caliber rifle endorsement, or .50 caliber cartridge | ||||||
22 | endorsement under the Firearm Owners Identification Card | ||||||
23 | Act. | ||||||
24 | (iii) Data exempt from disclosure under Section 50 of | ||||||
25 | the School Safety Drill Act. | ||||||
26 | (jjj) (hhh) Information exempt from disclosure under |
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1 | Section 30 of the Insurance Data Security Law. | ||||||
2 | (kkk) (iii) Confidential business information | ||||||
3 | prohibited from disclosure under Section 45 of the Paint | ||||||
4 | Stewardship Act. | ||||||
5 | (lll) (iii) Data exempt from disclosure under Section | ||||||
6 | 2-3.196 of the School Code. | ||||||
7 | (mmm) (iii) Information prohibited from being | ||||||
8 | disclosed under subsection (e) of Section 1-129 of the | ||||||
9 | Illinois Power Agency Act. | ||||||
10 | (nnn) Information exempt from disclosure under Section | ||||||
11 | 155 of the Consumer Protections for Small Business Act. | ||||||
12 | (Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22; | ||||||
13 | 102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff. | ||||||
14 | 8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22; | ||||||
15 | 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff. | ||||||
16 | 6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372, | ||||||
17 | eff. 1-1-24; 103-472, eff. 8-1-24; 103-508, eff. 8-4-23; | ||||||
18 | 103-580, eff. 12-8-23; revised 1-2-24.)
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19 | Section 905. The Consumer Fraud and Deceptive Business | ||||||
20 | Practices Act is amended by adding Section 2EEEE as follows:
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21 | (815 ILCS 505/2EEEE new) | ||||||
22 | Sec. 2EEEE. Violations of the Consumer Protections for | ||||||
23 | Small Business Act. Any person who violates the Consumer | ||||||
24 | Protections for Small Business Act commits an unlawful |
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1 | practice within the meaning of this Act.
| ||||||
2 | Section 995. No acceleration or delay. Where this Act | ||||||
3 | makes changes in a statute that is represented in this Act by | ||||||
4 | text that is not yet or no longer in effect (for example, a | ||||||
5 | Section represented by multiple versions), the use of that | ||||||
6 | text does not accelerate or delay the taking effect of (i) the | ||||||
7 | changes made by this Act or (ii) provisions derived from any | ||||||
8 | other Public Act.
|