Bill Text: IL SB2234 | 2023-2024 | 103rd General Assembly | Engrossed
Bill Title: Creates the Small Business Financing Transparency Act. Sets forth provisions concerning registration requirements for persons providing commercial financing; additional registration information; registration expiration; functions, power, and duties; subpoena power of the Secretary of Financial and Professional Regulation; disclosure requirements; commercial financing disclosure forms approved for use in other states; violation of disclosure requirements; notification; suspension of registrations, civil penalties, and other discipline; investigation of complaints; confidentiality; appeal and review; registration fees; cease and desist orders; injunctions; exemptions; complaint disclosure; rules; violations; limitations on liability; beginning of registration; beginning of disclosure requirements; severability; and a commercial financing database. Amends the Freedom of Information Act and the Consumer Fraud and Deceptive Business Practices Act to make conforming changes. Effective immediately.
Spectrum: Partisan Bill (Democrat 29-0)
Status: (Engrossed) 2024-05-31 - Rule 19(a) / Re-referred to Rules Committee [SB2234 Detail]
Download: Illinois-2023-SB2234-Engrossed.html
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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois, | ||||||
3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the Small | ||||||
5 | Business Financing Transparency 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 registration 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 | ||||||
16 | Commercial Code, that the recipient does not intend to use for | ||||||
17 | personal, family, or household purposes. "Closed-end | ||||||
18 | financing" includes financing with an established principal | ||||||
19 | amount and duration. | ||||||
20 | "Commercial financing database" means a reporting database | ||||||
21 | certified by the Department as effective in receiving a report | ||||||
22 | of commercial financing made under this Act. |
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1 | "Commercial financing database provider" means an entity | ||||||
2 | that provides a reporting database certified by the Department | ||||||
3 | under this Act. | ||||||
4 | "Commercial financing" means open-end financing, | ||||||
5 | closed-end financing, sales-based financing, factoring | ||||||
6 | transaction, or other form of financing, the proceeds of which | ||||||
7 | the recipient does not intend to use primarily for personal, | ||||||
8 | family, or household purposes. For purposes of determining | ||||||
9 | whether a financing is a commercial financing, the provider | ||||||
10 | may rely on any statement of intended purposes by the | ||||||
11 | recipient. The statement may be a separate statement signed by | ||||||
12 | the recipient; may be contained in the financing application, | ||||||
13 | financing agreement, or other document signed or consented to | ||||||
14 | by the recipient; or may be provided orally by the recipient so | ||||||
15 | long as it is documented in the recipient's application file | ||||||
16 | by the provider. Electronic signatures and consents are valid | ||||||
17 | for purposes of the foregoing sentence. The provider shall not | ||||||
18 | be required to ascertain that the proceeds of a commercial | ||||||
19 | financing are used in accordance with the recipient's | ||||||
20 | statement of intended purposes. | ||||||
21 | "Department" means the Department of Financial and | ||||||
22 | Professional Regulation. | ||||||
23 | "Division of Financial Institutions" or "Division" means | ||||||
24 | the Division of Financial Institutions of the Department of | ||||||
25 | Financial and Professional Regulation. | ||||||
26 | "Factoring transaction" means an accounts receivable |
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1 | purchase transaction that includes an agreement to purchase, | ||||||
2 | transfer, or sell a legally enforceable claim for payment held | ||||||
3 | by a recipient for goods the recipient has supplied or | ||||||
4 | services the recipient has rendered that have been ordered but | ||||||
5 | for which payment has not yet been made. | ||||||
6 | "Finance charge" means the cost of financing as a dollar | ||||||
7 | amount. "Finance charge" includes any charge payable directly | ||||||
8 | or indirectly by the recipient and imposed directly or | ||||||
9 | indirectly by the provider as an incident to or a condition of | ||||||
10 | the extension of financing. "Finance charge" includes any | ||||||
11 | charges as determined by the Secretary. For the purposes of an | ||||||
12 | open-end financing, "finance charge" means the maximum amount | ||||||
13 | of credit available to the recipient, in each case, that is | ||||||
14 | drawn and held for the duration of the term or draw period. For | ||||||
15 | the purposes of a factoring transaction, "finance charge" | ||||||
16 | includes the discount taken on the face value of the accounts | ||||||
17 | receivable. In addition, the finance charge shall include any | ||||||
18 | charges determined by the Secretary. | ||||||
19 | "Open-end financing" means an agreement for one or more | ||||||
20 | extensions of open-end credit, secured or unsecured, that the | ||||||
21 | recipient does not intend to use the proceeds of primarily for | ||||||
22 | personal, family, or household purposes. "Open-end financing" | ||||||
23 | includes credit extended by a provider under a plan in which: | ||||||
24 | (i) the provider reasonably contemplates repeated | ||||||
25 | transactions; (ii) the provider may impose a finance charge | ||||||
26 | from time to time on an outstanding unpaid balance; and (iii) |
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1 | the amount of credit that may be extended to the recipient | ||||||
2 | during the term of the plan is generally made available to the | ||||||
3 | extent that any outstanding balance is repaid. | ||||||
4 | "Person" means an individual, entity, corporation, | ||||||
5 | partnership, limited liability company, joint venture, | ||||||
6 | association, joint stock company, trust, or unincorporated | ||||||
7 | organization, including, but not limited to, a sole | ||||||
8 | proprietorship. | ||||||
9 | "Provider" means a person who extends a specific offer of | ||||||
10 | commercial financing to a recipient. "Provider", unless | ||||||
11 | otherwise exempt, includes a person who solicits and presents | ||||||
12 | specific offers of commercial financing on behalf of a third | ||||||
13 | party. The mere extension of a specific offer or provision of | ||||||
14 | disclosures for a commercial financing, is not sufficient to | ||||||
15 | conclude that a provider is originating, making, funding, or | ||||||
16 | providing commercial financing. "Provider" does not include: | ||||||
17 | (1) a bank, trust company, or industrial loan company, | ||||||
18 | or any subsidiary or affiliate thereof, doing business | ||||||
19 | under the authority of, or in accordance with, a license, | ||||||
20 | certificate or charter issued by the United States, this | ||||||
21 | State, or any other state, district, territory, or | ||||||
22 | commonwealth of the United States that is authorized to | ||||||
23 | transact business in this State; | ||||||
24 | (2) a federally chartered savings and loan | ||||||
25 | association, federal savings bank, or federal credit | ||||||
26 | union, or any subsidiary or affiliate thereof, that is |
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1 | authorized to transact business in this State; | ||||||
2 | (3) a savings and loan association, savings bank, or | ||||||
3 | credit union, or any subsidiary or affiliate thereof, | ||||||
4 | organized under the laws of this State or any other state | ||||||
5 | that is authorized to transact business in this State; | ||||||
6 | (4) a lender regulated under the federal Farm Credit | ||||||
7 | Act; and | ||||||
8 | (5) a person acting as a technology services provider | ||||||
9 | to an entity described by sub-paragraphs (1), (2), or (3) | ||||||
10 | for use as part of that entity's commercial financing | ||||||
11 | program, provided the person has no interest, or | ||||||
12 | arrangement, or agreement to purchase any interest in the | ||||||
13 | commercial financing extended by the entity in connection | ||||||
14 | with the program. | ||||||
15 | "Recipient" means a person located in the State of | ||||||
16 | Illinois who applies for commercial financing and is made a | ||||||
17 | specific offer of commercial financing by a provider. For the | ||||||
18 | purpose of determining whether a recipient is located in | ||||||
19 | Illinois, a provider may rely upon (i) any written | ||||||
20 | representation by the recipient as to whether it is located in | ||||||
21 | Illinois; or (ii) the business address provided by the | ||||||
22 | recipient in the application for commercial financing showing | ||||||
23 | that the recipient is located in Illinois. "Recipient" | ||||||
24 | includes an authorized representative of a person who applies | ||||||
25 | for commercial financing and is made a specific offer of | ||||||
26 | commercial financing by a provider. "Recipient" does not |
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1 | include a person acting as a broker is not a recipient in a | ||||||
2 | 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. | ||||||
22 | "True-up mechanism" means, with respect to sales-based | ||||||
23 | financing, a contractual arrangement with all the following | ||||||
24 | elements: | ||||||
25 | (1) The financer receives periodic payments based upon | ||||||
26 | a pre-set amount stated in the contract. |
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1 | (2) The contract allows the recipient to request, or | ||||||
2 | the financer to initiate, adjustments to the payment | ||||||
3 | amount, credits to the recipient, or charges to the | ||||||
4 | recipient after execution of the contract, so that the | ||||||
5 | total amount paid by the recipient more closely reflects a | ||||||
6 | split rate listed in the contract.
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7 | Section 10. Applicability. | ||||||
8 | (a) Except as otherwise provided in this Section, this Act | ||||||
9 | applies to any person that offers or provides commercial | ||||||
10 | financing in Illinois or is otherwise a provider. | ||||||
11 | (b) The provisions of this Act apply to any person that | ||||||
12 | seeks to evade its applicability by any device, subterfuge, or | ||||||
13 | pretense whatsoever. | ||||||
14 | (c) The provisions of this Act apply to any person that | ||||||
15 | aids or facilitates a violation of this Act. | ||||||
16 | (d) The provisions of this Act do not apply to: | ||||||
17 | (1) a bank, trust company, or industrial loan company | ||||||
18 | doing business under the authority of, or in accordance | ||||||
19 | with, a license, certificate or charter issued by the | ||||||
20 | United States, this State, or any other state, district, | ||||||
21 | territory, or commonwealth of the United States that is | ||||||
22 | authorized to transact business in this State; | ||||||
23 | (2) a federally chartered savings and loan | ||||||
24 | association, federal savings bank, or federal credit union | ||||||
25 | that is authorized to transact business in this State; |
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1 | (3) a savings and loan association, savings bank, or | ||||||
2 | credit union organized under the laws of this State or any | ||||||
3 | other state that is authorized to transact business in | ||||||
4 | this State; | ||||||
5 | (4) a lender regulated under the federal Farm Credit | ||||||
6 | Act; and | ||||||
7 | (5) a person acting in the person's capacity as a | ||||||
8 | technology services provider to an entity described by | ||||||
9 | sub-paragraphs (1), (2), or (3) for use as part of that | ||||||
10 | entity's commercial financing program, provided the person | ||||||
11 | has no interest, or arrangement, or agreement to purchase | ||||||
12 | any interest in the commercial financing extended by the | ||||||
13 | entity in connection with the program.
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14 | Section 15. Division of Financial Institutions. This Act | ||||||
15 | shall be administered by the Division on behalf of the | ||||||
16 | Secretary.
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17 | Section 20. Registration requirement. | ||||||
18 | (a) It is unlawful for a person to engage in the conduct | ||||||
19 | regulated by this Act unless the person: (i) registers with | ||||||
20 | the Secretary in accordance with this Section; and (ii) | ||||||
21 | maintains a valid registration. An officer or employee of a | ||||||
22 | person required to register under this Section is not required | ||||||
23 | to register if the person for whom the individual is an officer | ||||||
24 | or employee is registered. |
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1 | (b) Application for registration and renewal of | ||||||
2 | registration shall be made in accordance with this Act and | ||||||
3 | with the requirements of the multistate licensing system, if | ||||||
4 | required by the Secretary. The application shall be in | ||||||
5 | writing, under oath, and on a form obtained from and | ||||||
6 | prescribed by the Secretary. The Secretary may change or | ||||||
7 | update the form to carry out the purposes of this Act. The | ||||||
8 | Secretary may require part or all of the application to be | ||||||
9 | submitted electronically, with attestation, to the multistate | ||||||
10 | licensing system. | ||||||
11 | (c) Registrants shall apply to renew their registration | ||||||
12 | every calendar year. Registrants may submit properly completed | ||||||
13 | renewal application forms and filing fees 60 days before the | ||||||
14 | registration expiration date, and the same shall be received | ||||||
15 | by the Secretary at least 30 days before the registration | ||||||
16 | expiration date. Absent a written extension from the | ||||||
17 | Department, a registration shall expire on December 31 of each | ||||||
18 | year if a registrant fails to timely submit a properly | ||||||
19 | completed renewal application and fees. | ||||||
20 | (d) Upon receipt of the registration, a registrant is | ||||||
21 | authorized to engage in conduct regulated by this Act. The | ||||||
22 | registration shall remain in full force and effect until it | ||||||
23 | expires, is withdrawn by the registrant, or is revoked or | ||||||
24 | suspended as provided in this Act. | ||||||
25 | (e) To register under this Section, an applicant shall: | ||||||
26 | (1) pay a registration fee of $2,500 to the |
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1 | Department; and | ||||||
2 | (2) submit a registration statement containing the | ||||||
3 | information described in subsection (g). | ||||||
4 | (f) To renew a registration under this Section, a person | ||||||
5 | shall: | ||||||
6 | (1) pay the annual fee of $2,500 to the Department; | ||||||
7 | and | ||||||
8 | (2) submit a renewal statement containing the | ||||||
9 | information described in subsection (g). | ||||||
10 | (g) A registration or renewal statement must be submitted | ||||||
11 | to the Secretary or to a multistate licensing system as | ||||||
12 | approved by the Secretary. The registration or renewal | ||||||
13 | statement shall include: | ||||||
14 | (1) the name of the person; | ||||||
15 | (2) the name in which the business will be transacted | ||||||
16 | if different from that required in paragraph (1), which | ||||||
17 | must be properly registered as an assumed corporate name | ||||||
18 | under the Business Corporation Act of 1983, an assumed | ||||||
19 | limited liability company name under the Limited Liability | ||||||
20 | Company Act, or an assumed business name under the Assumed | ||||||
21 | Business Name Act; | ||||||
22 | (3) the address of the person's principal business | ||||||
23 | office; | ||||||
24 | (4) the address of each office in this State at which | ||||||
25 | the person engages in commercial financing transactions; | ||||||
26 | (5) if the person engages in commercial financing |
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1 | transactions in this State but does not maintain an office | ||||||
2 | in this State, a brief description of the manner in which | ||||||
3 | the business is conducted; | ||||||
4 | (6) if the person conducts business through an agent | ||||||
5 | located in this State, the name and address in this State | ||||||
6 | of the person's agent properly registered with the | ||||||
7 | Secretary of State; | ||||||
8 | (7) for a registration application, whether the | ||||||
9 | person, an officer, director, manager, operator, or | ||||||
10 | principal of the person, or an employee of the person | ||||||
11 | engaged in the business of commercial financing has been | ||||||
12 | convicted of a crime involving an act of fraud, | ||||||
13 | dishonesty, breach of trust, or money laundering; if the | ||||||
14 | applicant answers yes to this paragraph, then the | ||||||
15 | applicant shall report the names, titles or relationship | ||||||
16 | to the applicant or registrant, and the nature of the | ||||||
17 | covered crime; | ||||||
18 | (8) for a renewal application, whether, in the past | ||||||
19 | year, the person, an officer, director, manager, operator, | ||||||
20 | or principal of the person, or an employee of the person | ||||||
21 | engaged in the business of commercial financing has been | ||||||
22 | convicted of a crime involving an act of fraud, | ||||||
23 | dishonesty, breach of trust, or money laundering; if the | ||||||
24 | registrant answers yes to this paragraph, then the | ||||||
25 | registrant shall report the names, titles or relationship | ||||||
26 | to the applicant or registrant, and the nature of the |
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1 | covered crime; | ||||||
2 | (9) a statement of the person's commitment to abide by | ||||||
3 | the requirements of registering persons under this Act, | ||||||
4 | including providing the required financing disclosures in | ||||||
5 | commercial financing offers as required under Sections 45, | ||||||
6 | 50, 55, 60, 65, and 70 of this Act; | ||||||
7 | (10) a copy of the commercial financing disclosure | ||||||
8 | form to be used for each type of commercial financing that | ||||||
9 | the person offers or intends to offer, and a description | ||||||
10 | of when the disclosure will be provided to the recipient; | ||||||
11 | (11) information on financing offers presented by | ||||||
12 | registrant in Illinois in the previous calendar year, | ||||||
13 | including the number of financing offers made, the number | ||||||
14 | of financing offers made in which the disclosures as | ||||||
15 | required by Sections 45, 50, 55, 60, 65, and 70 were | ||||||
16 | offered, and the number of financing offers accepted by | ||||||
17 | recipients; and | ||||||
18 | (12) any other information deemed necessary by the | ||||||
19 | Secretary. | ||||||
20 | (h) The Secretary may refuse to accept or renew a | ||||||
21 | registration if: | ||||||
22 | (1) the Secretary determines that the person has not | ||||||
23 | complied with the provisions of this Act, its implementing | ||||||
24 | rules, or other laws that apply to the person; or | ||||||
25 | (2) the Secretary determines that there is substantial | ||||||
26 | continuity between the person and any violator of this |
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1 | Act, its implementing rules, or other laws that apply to | ||||||
2 | the person or related violator. | ||||||
3 | (i) The Department shall adopt and amend such rules as may | ||||||
4 | be required for the proper administration and enforcement of | ||||||
5 | this Section, including rules providing for the form, content, | ||||||
6 | and filing of a registration and renewal statement.
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7 | Section 25. Additional registration information. | ||||||
8 | (a) In order to fulfill the purposes of this Act, the | ||||||
9 | Secretary may establish relationships or contracts with a | ||||||
10 | multistate licensing system or other persons to collect and | ||||||
11 | maintain records and process fees related to registrants or | ||||||
12 | other persons subject to this Act. | ||||||
13 | (b) For the purposes of this Section, and to reduce the | ||||||
14 | points of contact that the Secretary may have to maintain, the | ||||||
15 | Secretary may use a multistate licensing system as a | ||||||
16 | channeling agent for requesting and distributing information | ||||||
17 | to and from any source. | ||||||
18 | (c) Each registrant shall furnish to the Secretary or | ||||||
19 | multistate licensing system an updated business address within | ||||||
20 | 10 days after any change of business address.
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21 | Section 30. Registration expiration. No activity regulated | ||||||
22 | by this Act shall be conducted by a registrant whose | ||||||
23 | registration has expired. The Secretary may, within the | ||||||
24 | Secretary's discretion, reinstate an expired registration upon |
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1 | payment of the renewal fee, payment of a reactivation fee | ||||||
2 | equal to 5 times the renewal fee, submission of a completed | ||||||
3 | renewal application, and an affidavit of good cause for late | ||||||
4 | renewal.
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5 | Section 35. Functions; powers; duties. The functions, | ||||||
6 | powers, and duties of the Secretary include, but are not | ||||||
7 | limited to, the following: | ||||||
8 | (1) to issue or refuse to issue any registration or | ||||||
9 | renewal; | ||||||
10 | (2) to revoke or suspend for cause any registration | ||||||
11 | issued under this Act; | ||||||
12 | (3) to keep records of all registrations issued under | ||||||
13 | this Act; | ||||||
14 | (4) to receive, consider, investigate, and act upon | ||||||
15 | complaints made by any person in connection with any | ||||||
16 | registration in this State or unregistered commercial | ||||||
17 | financing activity of any person; | ||||||
18 | (5) to adopt rules necessary and proper for the | ||||||
19 | administration of this Act, to protect consumers and | ||||||
20 | financing recipients, to promote fair competition, and as | ||||||
21 | otherwise authorized by this Act; | ||||||
22 | (6) to subpoena documents and witnesses and compel | ||||||
23 | their attendance and production, to administer oaths, and | ||||||
24 | to require the production of any books, papers, or other | ||||||
25 | materials relevant to any inquiry authorized by this Act |
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1 | or its implementing rules; | ||||||
2 | (7) to issue orders against any person if the | ||||||
3 | Secretary has reasonable cause to believe that an unsafe, | ||||||
4 | unsound, or unlawful practice has occurred, is occurring, | ||||||
5 | or is about to occur; if any person is violating, or is | ||||||
6 | about to violate any law, rule, or written agreement with | ||||||
7 | the Secretary; or for the purpose of administering the | ||||||
8 | provisions of this Act and any rule adopted in accordance | ||||||
9 | with this Act; | ||||||
10 | (8) to address any inquiries to any registrant, or the | ||||||
11 | owners, officers, or directors thereof, in relation to its | ||||||
12 | activities and conditions, or any other matter connected | ||||||
13 | with its affairs, and any registrant or person so | ||||||
14 | addressed shall promptly reply in writing to those | ||||||
15 | inquiries. The Secretary may also require reports from any | ||||||
16 | registrant at any time the Secretary deems desirable; | ||||||
17 | (9) to enforce provisions of this Act and its | ||||||
18 | implementing rules; | ||||||
19 | (10) to levy fees, including, but not limited to, | ||||||
20 | assessments, registration fees, civil penalties, and | ||||||
21 | charges for services performed in administering this Act. | ||||||
22 | The Secretary may establish and modify fees by rule. The | ||||||
23 | aggregate of all fees collected by the Secretary under | ||||||
24 | this Act shall be paid promptly after receipt into the | ||||||
25 | Financial Institution Fund. The amounts deposited into the | ||||||
26 | Financial Institution Fund shall be used for the ordinary |
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1 | and contingent expenses of the Department. Nothing in this | ||||||
2 | Act prevents paying expenses including salaries, | ||||||
3 | retirement, social security, and State-paid insurance of | ||||||
4 | State employees, or any other expenses incurred under this | ||||||
5 | Act by appropriation from the General Revenue Fund or any | ||||||
6 | other fund; | ||||||
7 | (11) to issue refunds to registrants of any | ||||||
8 | overpayment for good cause shown; | ||||||
9 | (12) to appoint experts and special assistants as | ||||||
10 | needed to effectively and efficiently administer this Act; | ||||||
11 | (13) to conduct hearings for the purpose of | ||||||
12 | suspensions, denials, or revocations of registrations, | ||||||
13 | fining, or other discipline of registrants or unregistered | ||||||
14 | persons or entities; | ||||||
15 | (14) to exercise visitorial power over a registrant: | ||||||
16 | (A) if the Secretary has reasonable cause to believe that | ||||||
17 | an unsafe, unsound, or unlawful practice has occurred, is | ||||||
18 | occurring, or is about to occur; or (B) if a person is | ||||||
19 | violating or is about to violate any law, rule, or written | ||||||
20 | agreement with the Secretary; and | ||||||
21 | (15) to enter into cooperative agreements with state | ||||||
22 | regulatory authorities of other states to provide for | ||||||
23 | examination of corporate offices or branches of those | ||||||
24 | states, participate in joint examinations with other | ||||||
25 | regulators, and to accept reports of the examinations: (A) | ||||||
26 | if the Secretary has reasonable cause to believe that an |
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1 | unsafe, unsound, or unlawful practice has occurred, is | ||||||
2 | occurring, or is about to occur; or (B) if a person is | ||||||
3 | violating or is about to violate any law, rule, or written | ||||||
4 | agreement with the Secretary; | ||||||
5 | (16) to impose civil penalties of up to $200 per day | ||||||
6 | against a registrant for failing to respond to a | ||||||
7 | regulatory request or reporting requirement; and | ||||||
8 | (17) to enter into agreements in connection with a | ||||||
9 | multistate licensing system.
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10 | Section 40. Subpoena power of the Secretary. | ||||||
11 | (a) The Secretary may issue and serve subpoenas and | ||||||
12 | subpoenas duces tecum to compel the attendance of witnesses | ||||||
13 | and the production of all books, accounts, records, and other | ||||||
14 | documents and materials relevant to an investigation. The | ||||||
15 | Secretary, or the Secretary's duly authorized representative, | ||||||
16 | may administer oaths and affirmations to any person. | ||||||
17 | (b) If a person does not comply with the Secretary's | ||||||
18 | subpoena or subpoena duces tecum, the Secretary may, through | ||||||
19 | the Attorney General, petition the circuit court of the county | ||||||
20 | in which the subpoenaed person resides or has its principal | ||||||
21 | place of business for an order requiring the subpoenaed person | ||||||
22 | to testify and to comply with the subpoena duces tecum. The | ||||||
23 | court may grant injunctive relief restraining the person from | ||||||
24 | engaging in activity regulated by this Act. The court may | ||||||
25 | grant other relief, including, but not limited to, the |
| |||||||
| |||||||
1 | restraint, by injunction or appointment of a receiver, of any | ||||||
2 | transfer, pledge, assignment, or other disposition of the | ||||||
3 | person's assets, concealment, destruction, or other | ||||||
4 | disposition of books, accounts, records, or other documents | ||||||
5 | and materials, as the court deems appropriate, until the | ||||||
6 | person has fully complied with the subpoena or subpoena duces | ||||||
7 | tecum and the Secretary has completed an investigation. | ||||||
8 | (c) If it appears to the Secretary that the compliance | ||||||
9 | with a subpoena or subpoena duces tecum issued or caused to be | ||||||
10 | issued by the Secretary under this Section is essential to an | ||||||
11 | investigation, the Secretary, in addition to the other | ||||||
12 | remedies provided for in this Act, may, through the Attorney | ||||||
13 | General, apply for relief to the circuit court of the county in | ||||||
14 | which the subpoenaed person resides or has its principal place | ||||||
15 | of business. The court shall thereupon direct the issuance of | ||||||
16 | an order against the subpoenaed person requiring sufficient | ||||||
17 | bond conditioned on compliance with the subpoena or subpoena | ||||||
18 | duces tecum. The court shall cause to be endorsed on the order | ||||||
19 | a suitable amount of bond or payment pursuant to which the | ||||||
20 | person named be freed, having a due regard to the nature of the | ||||||
21 | case. | ||||||
22 | (d) In addition, the Secretary may, through the Attorney | ||||||
23 | General, seek a writ of attachment or an equivalent order from | ||||||
24 | the circuit court having jurisdiction over the person who has | ||||||
25 | refused to obey a subpoena, who has refused to give testimony, | ||||||
26 | or who has refused to produce the matters described in the |
| |||||||
| |||||||
1 | subpoena duces tecum.
| ||||||
2 | Section 45. Sales-based financing disclosure requirements. | ||||||
3 | A provider subject to this Act shall provide the following | ||||||
4 | disclosures to a recipient, in a manner prescribed by the | ||||||
5 | Secretary, if any, at the time of extending a specific offer of | ||||||
6 | sales-based financing: | ||||||
7 | (1) The total amount of the commercial financing, and, | ||||||
8 | if different from the financing amount, the disbursement | ||||||
9 | amount after any amount deducted or withheld at | ||||||
10 | disbursement. | ||||||
11 | (2) The finance charge. | ||||||
12 | (3) The estimated annual percentage rate, using the | ||||||
13 | words annual percentage rate or the abbreviation | ||||||
14 | "Estimated APR", expressed as a yearly rate, inclusive of | ||||||
15 | any fees and finance charges, based on the estimated term | ||||||
16 | of repayment and the projected periodic payment amounts. | ||||||
17 | The estimated term of repayment and the projected periodic | ||||||
18 | payment amounts shall be calculated based on the | ||||||
19 | projection of the recipient's sales, which may be referred | ||||||
20 | to as the projected sales volume. The projected sales | ||||||
21 | volume may be calculated using the historical method or | ||||||
22 | the underwriting method. The provider shall provide notice | ||||||
23 | to the Secretary on which method the provider intends to | ||||||
24 | use across all instances of sales-based financing offered | ||||||
25 | in calculating the estimated annual percentage rate under |
| |||||||
| |||||||
1 | this Section, according to the following: | ||||||
2 | (A) A provider using the historical method shall | ||||||
3 | use an average historical volume of sales or revenue | ||||||
4 | by which the financing's payment amounts are based and | ||||||
5 | the estimated annual percentage rate is calculated. | ||||||
6 | The provider shall fix the historical time period used | ||||||
7 | to calculate the average historical volume and use the | ||||||
8 | period for all disclosure purposes for all sales-based | ||||||
9 | financing products offered. The fixed historical time | ||||||
10 | period shall either be the preceding time period from | ||||||
11 | the specific offer or, alternatively, the provider may | ||||||
12 | use average sales for the same number of months with | ||||||
13 | the highest sales volume within the previous 12 | ||||||
14 | months. The fixed historical time period shall be no | ||||||
15 | less than one month and shall not exceed 12 months. | ||||||
16 | (B) A provider using the underwriting method shall | ||||||
17 | determine the estimated annual percentage rate, the | ||||||
18 | estimated term, and the projected payments, using a | ||||||
19 | projected sales volume that the provider elects for | ||||||
20 | each disclosure, if they participate in a review | ||||||
21 | process prescribed by the Secretary. A provider shall, | ||||||
22 | on an annual basis, report data to the Secretary of | ||||||
23 | estimated annual percentage rates disclosed to the | ||||||
24 | recipient and actual retrospective annual percentage | ||||||
25 | rates of completed transactions. The report shall | ||||||
26 | contain the information as the Department may adopt by |
| |||||||
| |||||||
1 | rule as necessary or appropriate for the purpose of | ||||||
2 | making a determination of whether the deviation | ||||||
3 | between the estimated annual percentage rate and | ||||||
4 | actual retrospective annual percentage rates of | ||||||
5 | completed transactions was reasonable. The Secretary | ||||||
6 | shall establish the method of reporting and may, upon | ||||||
7 | a finding that the use of projected sales volume by the | ||||||
8 | provider has resulted in an unacceptable deviation | ||||||
9 | between estimated and actual annual percentage rate, | ||||||
10 | require the provider to use the historical method. The | ||||||
11 | Secretary may consider unusual and extraordinary | ||||||
12 | circumstances impacting the provider's deviation | ||||||
13 | between estimated and actual annual percentage rate in | ||||||
14 | the determination of the finding. | ||||||
15 | (4) The total repayment amount, which is the | ||||||
16 | disbursement amount plus the finance charge. | ||||||
17 | (5) The estimated term, which is the period of time | ||||||
18 | required for the periodic payments, based on the projected | ||||||
19 | sales volume, to equal the total amount required to be | ||||||
20 | repaid. | ||||||
21 | (6) The payment amounts, based on the projected sales | ||||||
22 | volume: | ||||||
23 | (A) for payment amounts that are fixed, the | ||||||
24 | payment amounts and frequency, such as, daily, weekly, | ||||||
25 | monthly, and, if the payment frequency is other than | ||||||
26 | monthly, the amount of the average projected payments |
| |||||||
| |||||||
1 | per month; or | ||||||
2 | (B) for payment amounts that are variable, a | ||||||
3 | payment schedule or a description of the method used | ||||||
4 | to calculate the amounts and frequency of payments and | ||||||
5 | the amount of the average projected payments per | ||||||
6 | month. | ||||||
7 | (7) A description of all other potential fees and | ||||||
8 | charges not included in the finance charge, including, but | ||||||
9 | not limited to, draw fees, late payment fees, and returned | ||||||
10 | payment fees. | ||||||
11 | (8) If the recipient elects to pay off or refinance | ||||||
12 | the commercial financing before full repayment, the | ||||||
13 | provider shall disclose: | ||||||
14 | (A) whether the recipient would be required to pay | ||||||
15 | any finance charges other than interest accrued since | ||||||
16 | their last payment; if so, disclosure of the | ||||||
17 | percentage of any unpaid portion of the finance charge | ||||||
18 | and maximum dollar amount the recipient could be | ||||||
19 | required to pay; and | ||||||
20 | (B) whether the recipient would be required to pay | ||||||
21 | any additional fees not already included in the | ||||||
22 | finance charge. | ||||||
23 | (9) A description of collateral requirements or | ||||||
24 | security interests, if any.
| ||||||
25 | Section 50. Commercial closed-end financing disclosure |
| |||||||
| |||||||
1 | requirements. | ||||||
2 | (a) A provider subject to this Act shall provide the | ||||||
3 | following disclosures to a recipient, in a manner prescribed | ||||||
4 | by the Secretary, if any, at the time of extending a specific | ||||||
5 | offer for closed-end financing: | ||||||
6 | (1) The total amount of the commercial financing, and, | ||||||
7 | if different from the financing amount, the disbursement | ||||||
8 | amount after any amount 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 that cannot be avoided by a recipient. | ||||||
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, if the term is longer than one month, the | ||||||
22 | average monthly payment amount; or | ||||||
23 | (B) for payment amounts that are variable, a full | ||||||
24 | payment schedule or a description of the method used | ||||||
25 | to calculate the amounts and frequency of payments, | ||||||
26 | and, if the term is longer than one month, the |
| |||||||
| |||||||
1 | estimated average monthly payment amount. | ||||||
2 | (7) A description of all other potential fees and | ||||||
3 | charges that can be avoided by the recipient, including, | ||||||
4 | but not limited to, late payment fees and returned payment | ||||||
5 | fees. | ||||||
6 | (8) If the recipient elects to pay off or refinance | ||||||
7 | the commercial financing before full repayment, the | ||||||
8 | provider shall disclose: | ||||||
9 | (A) whether the recipient would be required to pay | ||||||
10 | any finance charges other than interest accrued since | ||||||
11 | their last payment; if so, disclosure of the | ||||||
12 | percentage of any unpaid portion of the finance charge | ||||||
13 | and maximum dollar amount the recipient could be | ||||||
14 | required to pay; and | ||||||
15 | (B) whether the recipient would be required to pay | ||||||
16 | any additional fees not already included in the | ||||||
17 | finance charge. | ||||||
18 | (9) A description of collateral requirements or | ||||||
19 | security interests, if any. | ||||||
20 | (b) If an advance requires repayment in periodic | ||||||
21 | installments over time and does not qualify as sales-based | ||||||
22 | financing, then the advance qualifies as close-end financing | ||||||
23 | and shall satisfy the disclosure requirements of this Section.
| ||||||
24 | Section 55. Open-end commercial financing disclosure | ||||||
25 | requirements. A provider subject to this Act shall provide the |
| |||||||
| |||||||
1 | following disclosures to a recipient, in a manner prescribed | ||||||
2 | by the Secretary, if any, at the time of extending a specific | ||||||
3 | offer for open-end financing: | ||||||
4 | (1) The maximum amount of credit available to the | ||||||
5 | recipient, such as the credit line amount, and the amount | ||||||
6 | scheduled to be drawn by the recipient at the time the | ||||||
7 | offer is extended, if any, less any amount deducted or | ||||||
8 | withheld at disbursement. | ||||||
9 | (2) The finance charge. | ||||||
10 | (3) The annual percentage rate, using only the words | ||||||
11 | annual percentage rate or the abbreviation "APR", | ||||||
12 | expressed as a nominal yearly rate, inclusive of any fees | ||||||
13 | and finance charges that cannot be avoided by a recipient, | ||||||
14 | and based on the maximum amount of credit available to the | ||||||
15 | recipient and the term resulting from making the minimum | ||||||
16 | required payments term as disclosed. | ||||||
17 | (4) The total repayment amount, which is the draw | ||||||
18 | amount, less any fees deducted or withheld at | ||||||
19 | disbursement, plus the finance charge. The total repayment | ||||||
20 | amount shall assume a draw amount equal to the maximum | ||||||
21 | amount of credit available to the recipient if drawn and | ||||||
22 | held for the duration of the term or draw period. | ||||||
23 | (5) The term of the plan, if applicable, or the period | ||||||
24 | over which a draw is amortized. | ||||||
25 | (6) The payment frequency and amounts, based on the | ||||||
26 | assumptions used in the calculation of the annual |
| |||||||
| |||||||
1 | percentage rate, including a description of payment amount | ||||||
2 | requirements such as a minimum payment amount, and if the | ||||||
3 | payment frequency is other than monthly, the amount of the | ||||||
4 | average projected payments per month. For payment amounts | ||||||
5 | that are variable, the provider should include a payment | ||||||
6 | schedule or a description of the method used to calculate | ||||||
7 | the amounts and frequency of payments and the estimated | ||||||
8 | average monthly payment amount. | ||||||
9 | (7) A description of all other potential fees and | ||||||
10 | charges that can be avoided by the recipient, including, | ||||||
11 | but not limited to, draw fees, late payment fees, and | ||||||
12 | returned payment fees. | ||||||
13 | (8) Were the recipient to elect to pay off or | ||||||
14 | refinance the commercial financing before full repayment, | ||||||
15 | the provider shall disclose: | ||||||
16 | (A) whether the recipient would be required to pay | ||||||
17 | any finance charges other than interest accrued since | ||||||
18 | their last payment; if so, disclosure of the | ||||||
19 | percentage of any unpaid portion of the finance charge | ||||||
20 | and maximum dollar amount the recipient could be | ||||||
21 | required to pay; and | ||||||
22 | (B) whether the recipient would be required to pay | ||||||
23 | any additional fees not already included in the | ||||||
24 | finance charge. | ||||||
25 | (9) A description of collateral requirements or | ||||||
26 | security interests, if any.
|
| |||||||
| |||||||
1 | Section 60. Factoring transaction disclosure requirements. | ||||||
2 | A provider subject to this Act shall provide the following | ||||||
3 | disclosures to a recipient, in a manner prescribed by the | ||||||
4 | Secretary, if any, at the time of extending a specific offer | ||||||
5 | for a factoring transaction: | ||||||
6 | (1) The amount of the receivables purchase price paid | ||||||
7 | to the recipient, and, if different from the purchase | ||||||
8 | price, the disbursement amount after any amount deducted | ||||||
9 | or withheld at disbursement. | ||||||
10 | (2) The finance charge. | ||||||
11 | (3) The estimated annual percentage rate, using that | ||||||
12 | term. To calculate the estimated annual percentage rate, | ||||||
13 | the purchase amount is considered the financing amount, | ||||||
14 | the purchase amount minus the finance charge is considered | ||||||
15 | the payment amount, and the term is established by the | ||||||
16 | payment due date of the receivables. As an alternate | ||||||
17 | method of establishing the term, the provider may estimate | ||||||
18 | the term for a factoring transaction as the average | ||||||
19 | payment period based on its historical data over a period | ||||||
20 | not to exceed the previous 12 months, concerning payment | ||||||
21 | invoices paid by the party or parties owing the accounts | ||||||
22 | receivable in question. | ||||||
23 | (4) The total payment amount, which is the purchase | ||||||
24 | amount plus the finance charge. | ||||||
25 | (5) A description of all other potential fees and |
| |||||||
| |||||||
1 | charges that can be avoided by the recipient. | ||||||
2 | (6) A description of the receivables purchased and any | ||||||
3 | additional collateral requirements or security interests.
| ||||||
4 | Section 65. Other forms of financing disclosure | ||||||
5 | requirements. The Secretary may require disclosure by a | ||||||
6 | provider extending a specific offer of commercial financing | ||||||
7 | which is not an open-end financing, closed-end financing, | ||||||
8 | sales-based financing, or factoring transaction but otherwise | ||||||
9 | meets the definition of commercial financing. Subject to rules | ||||||
10 | adopted by the Secretary, a provider subject to this Act shall | ||||||
11 | provide the following disclosures to a recipient, in a manner | ||||||
12 | prescribed by the Secretary, if any, at the time of extending a | ||||||
13 | specific offer of other forms of financing: | ||||||
14 | (1) The total amount of the commercial financing, and, | ||||||
15 | if different from the financing amount, the disbursement | ||||||
16 | amount after any fees deducted or withheld at | ||||||
17 | disbursement. | ||||||
18 | (2) The finance charge. | ||||||
19 | (3) The annual percentage rate, using only the words | ||||||
20 | annual percentage rate or the abbreviation "APR", | ||||||
21 | expressed as a yearly rate, inclusive of any fees and | ||||||
22 | finance charges. | ||||||
23 | (4) The total repayment amount which is the | ||||||
24 | disbursement amount plus the finance charge. | ||||||
25 | (5) The term of the financing. |
| |||||||
| |||||||
1 | (6) The payment amounts: | ||||||
2 | (A) for payment amounts that are fixed, the | ||||||
3 | payment amounts and frequency, such as daily, weekly, | ||||||
4 | monthly, and the average monthly payment amount; or | ||||||
5 | (B) for payment amounts that are variable, a | ||||||
6 | payment schedule or a description of the method used | ||||||
7 | to calculate the amounts and frequency of payments, | ||||||
8 | and the estimated average monthly payment amount. | ||||||
9 | (7) A description of all other potential fees and | ||||||
10 | charges that can be avoided by the recipient, including, | ||||||
11 | but not limited to, late payment fees and returned payment | ||||||
12 | fees. | ||||||
13 | (8) If the recipient elects to pay off or refinance | ||||||
14 | the commercial financing before full repayment, the | ||||||
15 | provider shall disclose: | ||||||
16 | (A) whether the recipient would be required to pay | ||||||
17 | any finance charges other than interest accrued since | ||||||
18 | their last payment; if so, disclosure of the | ||||||
19 | percentage of any unpaid portion of the finance charge | ||||||
20 | and maximum dollar amount the recipient could be | ||||||
21 | required to pay; and | ||||||
22 | (B) whether the recipient would be required to pay | ||||||
23 | any additional fees not already included in the | ||||||
24 | finance charge. | ||||||
25 | (9) A description of collateral requirements or | ||||||
26 | security interests, if any.
|
| |||||||
| |||||||
1 | Section 70. Disclosure requirements for renewal financing. | ||||||
2 | If, as a condition of obtaining the commercial financing, the | ||||||
3 | provider requires the recipient to pay off the balance of an | ||||||
4 | existing commercial financing from the same provider, the | ||||||
5 | provider shall disclose: | ||||||
6 | (1) The amount of the new commercial financing that is | ||||||
7 | used to pay off the portion of the existing commercial | ||||||
8 | financing that consists of prepayment charges required to | ||||||
9 | be paid and any unpaid interest expense that was not | ||||||
10 | forgiven at the time of renewal. For financing for which | ||||||
11 | the total repayment amount is calculated as a fixed | ||||||
12 | amount, the prepayment charge is equal to the original | ||||||
13 | finance charge multiplied by the amount of the renewal | ||||||
14 | used to pay off existing financing as a percentage of the | ||||||
15 | total repayment amount, minus any portion of the total | ||||||
16 | repayment amount forgiven by the provider at the time of | ||||||
17 | prepayment. If the amount is more than zero, the amount | ||||||
18 | shall be the answer to the following question: "Does the | ||||||
19 | renewal financing include any amount that is used to pay | ||||||
20 | unpaid finance charges or fees, also known as double | ||||||
21 | dipping? Yes, {enter amount}. If the amount is zero, the | ||||||
22 | answer would be no." | ||||||
23 | (2) If the disbursement amount will be reduced to pay | ||||||
24 | down any unpaid portion of the outstanding balance, the | ||||||
25 | actual dollar amount by which the disbursement amount will |
| |||||||
| |||||||
1 | be reduced.
| ||||||
2 | Section 75. Additional information. Nothing in this Act | ||||||
3 | shall prevent a provider from providing or disclosing | ||||||
4 | additional information on a commercial financing being offered | ||||||
5 | to a recipient, provided however, that the additional | ||||||
6 | information shall not be disclosed as part of the disclosure | ||||||
7 | required by this Act. If other metrics of financing cost are | ||||||
8 | disclosed or used in the application process of a commercial | ||||||
9 | financing, these metrics shall not be presented as a "rate" if | ||||||
10 | they are not the annual interest rate or the annual percentage | ||||||
11 | rate. The term "interest", when used to describe a percentage | ||||||
12 | rate, shall only be used to describe annualized percentage | ||||||
13 | rates, such as the annual interest rate. When a provider | ||||||
14 | states a rate of finance charge or a financing amount to a | ||||||
15 | recipient during an application process for commercial | ||||||
16 | financing, the provider shall also state the rate as an | ||||||
17 | "annual percentage rate", using that term or the abbreviation | ||||||
18 | "APR".
| ||||||
19 | Section 80. Commercial financing disclosure forms approved | ||||||
20 | for use in the other states. The Secretary may approve the use | ||||||
21 | of commercial financing disclosure forms approved for use in | ||||||
22 | other states with commercial financing disclosure requirements | ||||||
23 | that are substantially similar to or exceed the requirements | ||||||
24 | set forth in this Act, including the disclosure requirements |
| |||||||
| |||||||
1 | in Sections 45, 50, 55, 60, 65, and 70 of this Act.
| ||||||
2 | Section 85. Violation of disclosure requirements. If the | ||||||
3 | Secretary finds that a provider who is required to register | ||||||
4 | with the Department according to this Act has violated any | ||||||
5 | disclosure requirements outlined in Sections 45, 50, 55, 60, | ||||||
6 | 65, 70, and 75, that shall be considered a violation of this | ||||||
7 | Act separate from any other violation that may result from | ||||||
8 | operating without a registration as outlined in Section 95.
| ||||||
9 | Section 90. Notification. | ||||||
10 | (a) A registrant must advise the Secretary in writing of | ||||||
11 | any changes to the information submitted on its most recent | ||||||
12 | registration or renewal of registration within 30 days after | ||||||
13 | the change. | ||||||
14 | (b) A registrant must advise the Secretary in writing that | ||||||
15 | the registrant has been disciplined, including denial of | ||||||
16 | licensure, by a licensing authority of this State or another | ||||||
17 | state within 10 days after entry of the discipline.
| ||||||
18 | Section 95. Disciplinary actions. | ||||||
19 | (a) The Secretary may enter an order imposing one or more | ||||||
20 | of the following penalties: | ||||||
21 | (1) revocation of registration; | ||||||
22 | (2) suspension of a registration subject to | ||||||
23 | reinstatement upon satisfying all reasonable conditions |
| |||||||
| |||||||
1 | the Secretary may specify; | ||||||
2 | (3) placement of the registrant or applicant on | ||||||
3 | probation for a period of time and subject to all | ||||||
4 | reasonable conditions as the Secretary may specify; | ||||||
5 | (4) imposition of civil monetary penalties not to | ||||||
6 | exceed $10,000 for each separate offense, but civil | ||||||
7 | penalties may not to exceed $50,000 for all violations | ||||||
8 | arising from the use of the same single transaction, | ||||||
9 | including for financing offers that are not consummated; | ||||||
10 | (5) restitution, refunds, or any other relief | ||||||
11 | necessary to protect recipients; and | ||||||
12 | (6) denial of a registration. | ||||||
13 | (b) Grounds for penalties include: | ||||||
14 | (1) if a registrant has violated or aided another to | ||||||
15 | violate any provision of this Act, any rule adopted by the | ||||||
16 | Secretary, or any other law, rule, or regulation of this | ||||||
17 | State, any other state, or the United States; | ||||||
18 | (2) if a person has violated or aided another to | ||||||
19 | violate any provision of this Act or any rule adopted by | ||||||
20 | the Secretary pursuant to this Act; | ||||||
21 | (3) if a fact or condition exists that, if it had | ||||||
22 | existed at the time of the original application for | ||||||
23 | registration, would have warranted the Secretary in | ||||||
24 | refusing issue the original registration; | ||||||
25 | (4) that a registrant that is not an individual has | ||||||
26 | acted or failed to act in a way that would be cause for |
| |||||||
| |||||||
1 | suspending or revoking a registration to an individual; | ||||||
2 | (5) that a person engaged in unsafe, unsound, unfair, | ||||||
3 | deceptive, or abusive business practices related to the | ||||||
4 | activity covered by this Act; | ||||||
5 | (6) that a registrant or an officer, director, | ||||||
6 | manager, operator, or principal of the registrant, or an | ||||||
7 | employee of the registrant engaged in the business of | ||||||
8 | commercial financing has been adjudicated guilty of a | ||||||
9 | crime against the law of this State, any other state, or of | ||||||
10 | the United States involving moral turpitude, abusive, | ||||||
11 | deceptive, fraudulent, or dishonest dealing; | ||||||
12 | (7) that a final judgment has been entered against | ||||||
13 | registrant or an officer, director, manager, operator, or | ||||||
14 | principal of the registrant, or an employee of the | ||||||
15 | registrant engaged in the business of commercial financing | ||||||
16 | in a civil action upon grounds of abusive conduct, | ||||||
17 | conversion, fraud, misrepresentation, or deceit; | ||||||
18 | (8) that an applicant made a material misstatement in | ||||||
19 | the applicant's application for registration or any other | ||||||
20 | communication to the Secretary; | ||||||
21 | (9) that a person has demonstrated, by course of | ||||||
22 | conduct, negligence or incompetence in performing any act | ||||||
23 | for which it is required to hold a registration under this | ||||||
24 | Act; | ||||||
25 | (10) that a person has failed to advise the Secretary | ||||||
26 | in writing of any changes to the information submitted on |
| |||||||
| |||||||
1 | the person's most recent registration or renewal of | ||||||
2 | registration within 30 days after the change; | ||||||
3 | (11) that a registrant had a license, registration, or | ||||||
4 | the equivalent, to practice any profession, occupation, | ||||||
5 | other industry or activity requiring licensure revoked, | ||||||
6 | suspended, disciplined, or otherwise acted against, | ||||||
7 | including the denial of licensure by a licensing authority | ||||||
8 | of this State or another state, territory, or country for | ||||||
9 | fraud, dishonest dealing, misrepresentations, | ||||||
10 | incompetence, conversion, any act of moral turpitude or | ||||||
11 | any other grounds that would constitute grounds for | ||||||
12 | discipline under this Act; | ||||||
13 | (12) that a person registered under this Act failed to | ||||||
14 | timely notify the Secretary that the person has been | ||||||
15 | disciplined, including denial of licensure, by a licensing | ||||||
16 | authority of this State or another state as required under | ||||||
17 | subsection (b) of Section 90; | ||||||
18 | (13) that a person engaged in activities regulated by | ||||||
19 | this Act without a current, active registration unless | ||||||
20 | specifically exempted by this Act; | ||||||
21 | (14) that a person failed to timely pay any fee, | ||||||
22 | charge, or civil penalty assessed under this Act; and | ||||||
23 | (15) that a person refused, obstructed, evaded, or | ||||||
24 | unreasonably delayed an investigation or information | ||||||
25 | request authorized under this Act, or refused, obstructed, | ||||||
26 | evaded, or unreasonably delayed compliance with the |
| |||||||
| |||||||
1 | Secretary's subpoena or subpoena duces tecum. | ||||||
2 | (c) No registration shall be suspended or revoked, except | ||||||
3 | as provided in this Section, nor shall any person be assessed a | ||||||
4 | civil penalty without notice of his or her right to a hearing. | ||||||
5 | (d) The Secretary may suspend any registration for a | ||||||
6 | period not exceeding 180 days pending investigation for good | ||||||
7 | cause shown that an emergency exists. | ||||||
8 | (e) No revocation, suspension, or surrender of any | ||||||
9 | registration shall impair or affect the obligation of any | ||||||
10 | preexisting lawful contract between the registrant and any | ||||||
11 | person. The Secretary's approval of a registrant's application | ||||||
12 | to surrender its registration shall not affect the | ||||||
13 | registrant's civil or criminal liability for acts committed | ||||||
14 | prior to surrender. Surrender of a registration does not | ||||||
15 | entitle the registrant to a return of any part of the | ||||||
16 | registration fee. | ||||||
17 | (f) Every registration issued under this Act shall remain | ||||||
18 | in force and effect until the registration expires, is | ||||||
19 | surrendered, is revoked, or is suspended in accordance with | ||||||
20 | the provisions of this Act. The Secretary shall have authority | ||||||
21 | to reinstate a suspended registration or to issue a new | ||||||
22 | registration to a registrant whose registration has been | ||||||
23 | revoked or surrendered if no fact or condition then exists | ||||||
24 | which would have warranted the Secretary in refusing | ||||||
25 | originally to issue that registration under this Act. | ||||||
26 | (g) Whenever the Secretary imposes discipline authorized |
| |||||||
| |||||||
1 | by this Section, the Secretary shall execute a written order | ||||||
2 | to that effect. The Secretary shall serve a copy of the order | ||||||
3 | upon the person. The Secretary shall serve the person with | ||||||
4 | notice of the order, including a statement of the reasons for | ||||||
5 | the order personally or by certified mail. Service by | ||||||
6 | certified mail shall be deemed completed when the notice is | ||||||
7 | deposited in the U.S. Mail. | ||||||
8 | (h) An order assessing a civil penalty, an order revoking | ||||||
9 | or suspending a registration, or an order denying renewal of a | ||||||
10 | registration shall take effect upon service of the order | ||||||
11 | unless the registrant serves the Department with a written | ||||||
12 | request for a hearing in the manner required by the order | ||||||
13 | within 10 days after the date of service of the order. If a | ||||||
14 | person requests a hearing, the order shall be stayed from its | ||||||
15 | date of service until the Department enters a final | ||||||
16 | administrative order. Hearings shall be conducted as follows: | ||||||
17 | (1) If the registrant requests a hearing, then the | ||||||
18 | Secretary shall schedule a hearing within 90 days after | ||||||
19 | the request for a hearing unless otherwise agreed to by | ||||||
20 | the parties. | ||||||
21 | (2) The hearing shall be held at the time and place | ||||||
22 | designated by the Secretary. The Secretary and any | ||||||
23 | administrative law judge designated by the Secretary shall | ||||||
24 | have the power to administer oaths and affirmations, | ||||||
25 | subpoena witnesses and compel their attendance, take | ||||||
26 | evidence, and require the production of books, papers, |
| |||||||
| |||||||
1 | correspondence, and other records or information that they | ||||||
2 | consider relevant or material to the inquiry. | ||||||
3 | (i) The costs of administrative hearings conducted under | ||||||
4 | this Section shall be paid by the registrant or other person | ||||||
5 | subject to the hearing. | ||||||
6 | (j) Registrants and other persons subject to this Act | ||||||
7 | shall be subject to the disciplinary actions specified in this | ||||||
8 | Act for any violations conducted by any officer, director, | ||||||
9 | shareholder, joint venture, partner, owner, including, but not | ||||||
10 | limited to, ultimate equitable owner.
| ||||||
11 | Section 100. Investigation of complaints. The Secretary | ||||||
12 | may investigate any complaints and inquiries made concerning | ||||||
13 | this Act and any registrants or persons the Secretary believes | ||||||
14 | may be required to register under this Act. Each registrant or | ||||||
15 | person the Secretary believes may be required to register | ||||||
16 | under this Act shall open the registrant's or person's books, | ||||||
17 | records, documents, and offices wherever situated to the | ||||||
18 | Secretary as needed to facilitate the investigations.
| ||||||
19 | Section 105. Additional investigation authority. In | ||||||
20 | addition to any authority allowed under this Act, the | ||||||
21 | Secretary may conduct investigations as follows: | ||||||
22 | (1) For purposes of initial registration, registration | ||||||
23 | renewal, registration suspension, registration | ||||||
24 | conditioning, registration probation, registration |
| |||||||
| |||||||
1 | revocation or termination, or general or specific inquiry | ||||||
2 | or investigation to determine compliance with this Act, | ||||||
3 | the Secretary may access, receive, and use any books, | ||||||
4 | accounts, records, files, documents, information, or | ||||||
5 | evidence, including, but not limited to, the following: | ||||||
6 | (A) criminal, civil, registration, and | ||||||
7 | administrative history information, including | ||||||
8 | nonconviction data as specified in the Criminal Code | ||||||
9 | of 2012; (B) personal history and experience | ||||||
10 | information, including independent credit reports | ||||||
11 | obtained from a consumer reporting agency described in | ||||||
12 | Section 603(p) of the federal Fair Credit Reporting | ||||||
13 | Act; and (C) any other documents, information, or | ||||||
14 | evidence the Secretary deems relevant to the inquiry | ||||||
15 | or investigation, regardless of the location, | ||||||
16 | possession, control, or custody of the documents, | ||||||
17 | information, or evidence. | ||||||
18 | (2) For the purposes of investigating violations or | ||||||
19 | complaints arising under this Act, the Secretary may | ||||||
20 | review or investigate any registrant or person subject to | ||||||
21 | this Act as necessary in order to carry out the purposes of | ||||||
22 | this Act. The Secretary may direct, subpoena, or order the | ||||||
23 | attendance of, and examine under oath all persons and | ||||||
24 | order any person to produce records, files, and any other | ||||||
25 | documents the Secretary deems relevant to an inquiry. | ||||||
26 | (3) Each person subject to this Act shall make |
| |||||||
| |||||||
1 | available to the Secretary upon request the books and | ||||||
2 | records relating to the operations of the person subject | ||||||
3 | to this Act. The Secretary shall have access to those | ||||||
4 | books and records and may interview the owners, officers, | ||||||
5 | principals, employees, independent contractors, agents, | ||||||
6 | vendors, and customers of any registrant or person subject | ||||||
7 | to this Act. | ||||||
8 | (4) In making any investigation authorized by this | ||||||
9 | Act, the Secretary may control access to any documents and | ||||||
10 | records of the registrant or person under investigation. | ||||||
11 | The Secretary may take possession of the documents and | ||||||
12 | records or otherwise take constructive control of the | ||||||
13 | documents. During the period of control, no person shall | ||||||
14 | remove or alter any of the documents or records, except | ||||||
15 | pursuant to a court order or with the consent of the | ||||||
16 | Secretary. Unless the Secretary has reasonable grounds to | ||||||
17 | believe the documents or records of the registrant have | ||||||
18 | been or are at risk of being altered or destroyed for | ||||||
19 | purposes of concealing a violation of this Act, the | ||||||
20 | registrant or owner of the documents and records shall | ||||||
21 | have access to the documents or records as necessary to | ||||||
22 | conduct its ordinary business affairs. | ||||||
23 | (5) In order to carry out the purposes of this | ||||||
24 | Section, the Secretary may: | ||||||
25 | (A) retain attorneys, accountants, or other | ||||||
26 | professionals and specialists as auditors or |
| |||||||
| |||||||
1 | investigators to conduct or assist in the conduct of | ||||||
2 | investigations; | ||||||
3 | (B) enter into agreements or relationships with | ||||||
4 | other government officials or regulatory associations | ||||||
5 | to protect consumers or financing recipients, improve | ||||||
6 | efficiencies, and reduce regulatory burden by sharing | ||||||
7 | resources, standardized or uniform methods or | ||||||
8 | procedures, and documents, records, information, or | ||||||
9 | evidence obtained under this Section; | ||||||
10 | (C) use, hire, contract, or employ publicly or | ||||||
11 | privately available analytical systems, methods, or | ||||||
12 | software or investigate the registrant or person | ||||||
13 | subject to this Act; | ||||||
14 | (D) accept and rely on examination or | ||||||
15 | investigation reports made by other government | ||||||
16 | officials, within or outside this State; or | ||||||
17 | (E) accept audit reports made by an independent | ||||||
18 | certified public accountant for the person subject to | ||||||
19 | this Act and may incorporate the audit report in the | ||||||
20 | report of the investigation or other writing of the | ||||||
21 | Secretary. | ||||||
22 | (6) The authority of this Section shall remain in | ||||||
23 | effect, whether the person subject to this Act acts or | ||||||
24 | claims to act under any licensing or registration law of | ||||||
25 | this State or claims to act without the authority. | ||||||
26 | (7) No registrant or person subject to investigation |
| |||||||
| |||||||
1 | or under this Section may knowingly withhold, alter, | ||||||
2 | abstract, remove, mutilate, destroy, hide, or conceal any | ||||||
3 | books, records, computer records, or other information or | ||||||
4 | take actions designed to delay or complicate review of | ||||||
5 | records.
| ||||||
6 | Section 110. Confidentiality. To promote more effective | ||||||
7 | regulation, protect consumers and financing recipients, and | ||||||
8 | reduce regulatory burden through inter-regulatory sharing of | ||||||
9 | confidential supervisory information: | ||||||
10 | (1) The privacy or confidentiality of any information | ||||||
11 | or material provided to a multistate licensing system, | ||||||
12 | including all privileges arising under federal or state | ||||||
13 | court rules and law, shall continue to apply to the | ||||||
14 | information or material after the information or material | ||||||
15 | has been disclosed to the multistate licensing system. | ||||||
16 | Information and material may be shared with a multistate | ||||||
17 | licensing system, federal and state regulatory officials | ||||||
18 | with relevant oversight authority, and law enforcement | ||||||
19 | without the loss of privilege or the loss of | ||||||
20 | confidentiality protections. | ||||||
21 | (2) The Secretary is authorized to enter into | ||||||
22 | agreements or sharing arrangements with other governmental | ||||||
23 | agencies, the Conference of State Bank Supervisors, and | ||||||
24 | other associations representing governmental agencies. | ||||||
25 | (3) Information or material that is privileged or |
| |||||||
| |||||||
1 | confidential under this Act as determined by the Secretary | ||||||
2 | is not subject to the following: | ||||||
3 | (A) disclosure under any State law governing the | ||||||
4 | disclosure to the public of information held by an | ||||||
5 | officer or an agency of the State; or | ||||||
6 | (B) subpoena, discovery, or admission into | ||||||
7 | evidence, in any private civil action or | ||||||
8 | administrative process except as authorized by the | ||||||
9 | Secretary. | ||||||
10 | (4) Any other law relating to the disclosure of | ||||||
11 | confidential supervisory information that is inconsistent | ||||||
12 | with this Act shall be superseded by the requirements of | ||||||
13 | this Section to the extent the other law provides less | ||||||
14 | confidentiality or a weaker privilege for information that | ||||||
15 | is privileged or confidential under this Act. | ||||||
16 | (5) Confidential or privileged information received | ||||||
17 | from a multistate licensing system, another licensing | ||||||
18 | body, federal and state regulatory officials, or law | ||||||
19 | enforcement shall be protected to the same extent as the | ||||||
20 | Secretary's confidential and privileged information is | ||||||
21 | protected under this Act. The Secretary may also protect | ||||||
22 | from disclosure confidential or privileged information | ||||||
23 | that would be exempt from disclosure to the extent it is | ||||||
24 | held directly by the multistate licensing system, another | ||||||
25 | licensing body, federal and state regulatory officials, or | ||||||
26 | law enforcement.
|
| |||||||
| |||||||
1 | Section 115. Appeal and review. | ||||||
2 | (a) The Secretary may, in accordance with the Illinois | ||||||
3 | Administrative Procedure Act, adopt rules to provide for | ||||||
4 | review within the Department of their decisions affecting the | ||||||
5 | rights of persons under this Act. The review shall provide | ||||||
6 | for, at a minimum: | ||||||
7 | (1) appointment of a hearing officer; | ||||||
8 | (2) appropriate procedural rules, specific deadlines | ||||||
9 | for filings, and standards of evidence and of proof; and | ||||||
10 | (3) provisions for apportioning costs among parties to | ||||||
11 | the appeal. | ||||||
12 | (b) All final agency determinations of appeals to | ||||||
13 | decisions of the Secretary may be reviewed in accordance with | ||||||
14 | and under the provisions of the Administrative Review Law. | ||||||
15 | Appeals from all final orders and judgments entered by a court | ||||||
16 | in review of any final administrative decision of the | ||||||
17 | Secretary or of any final agency review of a decision of the | ||||||
18 | Secretary may be taken as in other civil cases.
| ||||||
19 | Section 120. Registration fees. | ||||||
20 | (a) The fee for initial registration is $2,500. The fee is | ||||||
21 | nonrefundable. | ||||||
22 | (b) The fee for annual application renewal is $2,500. The | ||||||
23 | fee is nonrefundable. | ||||||
24 | (c) The Department shall impose a contingent fee |
| |||||||
| |||||||
1 | sufficient to cover its operating expenses in administering | ||||||
2 | this Act not otherwise covered by all other revenue collected | ||||||
3 | under this Act. Each registrant shall pay to the Division its | ||||||
4 | pro rata share, based on number or volume of transactions or | ||||||
5 | revenue, of the cost for administration of this Act that | ||||||
6 | exceeds other fees listed in this Section, as estimated by the | ||||||
7 | Division, for the current year and any deficit actually | ||||||
8 | incurred in the administration of this Act in prior years.
| ||||||
9 | Section 125. Cease and desist order. | ||||||
10 | (a) The Secretary may issue a cease and desist order to any | ||||||
11 | registrant or person doing business without the required | ||||||
12 | registration when, in the opinion of the Secretary, the | ||||||
13 | registrant or other person has violated, is violating, or is | ||||||
14 | about to violate any provision of this Act or any rule adopted | ||||||
15 | by the Department under this Act or any requirement imposed in | ||||||
16 | writing by the Department as a condition of granting any | ||||||
17 | authorization permitted by this Act. The cease and desist | ||||||
18 | order authorized by this Section may be issued prior to a | ||||||
19 | hearing. | ||||||
20 | (b) The Secretary shall serve notice of the cease and | ||||||
21 | desist order, either personally or by certified mail. Service | ||||||
22 | by certified mail shall be deemed completed when the notice is | ||||||
23 | deposited in the U.S. Mail. The Secretary's notice shall | ||||||
24 | include a statement of the reasons for the action. | ||||||
25 | (c) Within 10 days after service of the cease and desist |
| |||||||
| |||||||
1 | order, the person subject to the cease and desist order may | ||||||
2 | request a hearing in writing. The Secretary shall schedule a | ||||||
3 | preliminary hearing within 60 days after the request for a | ||||||
4 | hearing unless the parties agree to a later date. | ||||||
5 | (d) If it is determined that the Secretary had the | ||||||
6 | authority to issue the cease and desist order, the Secretary | ||||||
7 | may issue the orders as may be reasonably necessary to | ||||||
8 | correct, eliminate, deter, or remedy the conduct described in | ||||||
9 | the order and resulting harms. | ||||||
10 | (e) The powers vested in the Secretary by this Section are | ||||||
11 | additional to all other powers and remedies vested in the | ||||||
12 | Secretary by any law. Nothing in this Section shall be | ||||||
13 | construed as requiring that the Secretary shall employ the | ||||||
14 | power conferred in this Section instead of or as a condition | ||||||
15 | precedent to the exercise of any other power or remedy vested | ||||||
16 | in the Secretary.
| ||||||
17 | Section 130. Injunctions. The Secretary may maintain an | ||||||
18 | action in the name of the people of this State and may apply | ||||||
19 | for an injunction in the circuit court to enjoin a person from | ||||||
20 | violating this Act or its implementing rules through the | ||||||
21 | Attorney General.
| ||||||
22 | Section 135. Exemptions. This Act does not apply to, and | ||||||
23 | does not place any additional requirements or obligations | ||||||
24 | upon, any of the following: |
| |||||||
| |||||||
1 | (1) any person or entity that is not a provider; | ||||||
2 | (2) a commercial financing transaction secured by real | ||||||
3 | property; | ||||||
4 | (3) a lease as defined in Section 2-A-103 of the | ||||||
5 | Uniform Commercial Code, not including finance leases as | ||||||
6 | defined in paragraph (g) of subsection (1) of Section | ||||||
7 | 2A-103 of the Uniform Commercial Code; or | ||||||
8 | (4) a company primarily in the business of | ||||||
9 | manufacturing equipment, or any subsidiary or affiliate of | ||||||
10 | such a company, when offering a commercial financing | ||||||
11 | transaction for which the majority of the proceeds are | ||||||
12 | used to finance nonfinancial products manufactured by the | ||||||
13 | company, or any subsidiary or affiliate of such a company, | ||||||
14 | or the maintenance of or other services on such products; | ||||||
15 | (5) any person or provider who makes no more than 5 | ||||||
16 | commercial financing transactions in this State in a | ||||||
17 | 12-month period; | ||||||
18 | (6) a single, discrete commercial financing | ||||||
19 | transaction in an amount over $500,000; or | ||||||
20 | (7) a commercial financing transaction in which the | ||||||
21 | recipient is a vehicle dealer subject to Section 5-101 or | ||||||
22 | 5-102 of the Illinois Vehicle Code, an affiliate of a | ||||||
23 | dealer, a rental vehicle company as defined in Section 10 | ||||||
24 | of the Renter's Financial Responsibility and Protection | ||||||
25 | Act, or an affiliate of a company under a commercial | ||||||
26 | financing agreement or commercial open-end credit plan of |
| |||||||
| |||||||
1 | at least $50,000, including any commercial loan made under | ||||||
2 | a commercial financing transaction.
| ||||||
3 | Section 140. Complaint disclosure. All commercial | ||||||
4 | financing shall include a clear and conspicuous notice on how | ||||||
5 | to file a complaint with the Department.
| ||||||
6 | Section 145. Rules. The Secretary may adopt rules to enact | ||||||
7 | and enforce this Act, including, but not limited to: | ||||||
8 | (1) rules defining the terms used in this Act and as | ||||||
9 | may be necessary and appropriate to interpret and | ||||||
10 | implement the provisions of this Act; | ||||||
11 | (2) rules for the enforcement and administration of | ||||||
12 | this Act; | ||||||
13 | (3) rules for the protection of consumers and | ||||||
14 | recipients in this State; | ||||||
15 | (4) rules defining improper or fraudulent business | ||||||
16 | practices in connection with commercial financing; and | ||||||
17 | (5) rules to implement Section 165.
| ||||||
18 | Section 150. Violations. | ||||||
19 | (a) Nothing in this Act shall be construed to restrict the | ||||||
20 | exercise of powers or the performance of the duties that the | ||||||
21 | Attorney General is authorized to exercise or perform by law. | ||||||
22 | (b) Any violation of this Act constitutes an unlawful | ||||||
23 | practice in violation of the Consumer Fraud and Deceptive |
| |||||||
| |||||||
1 | Business Practices Act. The Attorney General may enforce a | ||||||
2 | violation of this Act as an unlawful practice under the | ||||||
3 | Consumer Fraud and Deceptive Business Practices Act.
| ||||||
4 | Section 152. Limitation on liability. No provision of this | ||||||
5 | Act imposes any liability on a provider as a result of the | ||||||
6 | actual annual percentage rate charged by a provider differing | ||||||
7 | from the estimated annual percentage rate disclosed in | ||||||
8 | conformity with any regulation, order, or written interpretive | ||||||
9 | opinion of the Secretary or any such opinion of the Attorney | ||||||
10 | General, whether or not such regulation, order, or written | ||||||
11 | interpretive opinion is later amended, rescinded, or repealed | ||||||
12 | or determined by judicial or other authority to be invalid for | ||||||
13 | any reason.
| ||||||
14 | Section 155. Beginning of registration. No person shall be | ||||||
15 | required to register under this Act before the date | ||||||
16 | established by the Department by rule. The date shall not be | ||||||
17 | before January 1, 2025.
| ||||||
18 | Section 160. Beginning of disclosure requirements. No | ||||||
19 | person shall be required to comply with the disclosure | ||||||
20 | requirements set forth in Sections 45, 50, 55, 60, 65, 70, and | ||||||
21 | 165 before the date established by the Department by rule. The | ||||||
22 | date shall not be before January 1, 2025.
|
| |||||||
| |||||||
1 | Section 165. Commercial financing database. | ||||||
2 | (a) A commercial financing database program is established | ||||||
3 | within the Department. The program shall be administered in | ||||||
4 | accordance with this Section. None of the duties, obligations, | ||||||
5 | contingencies, or consequences of or from the program shall be | ||||||
6 | imposed until 6 months after the Department certifies a | ||||||
7 | commercial financing database under subsection (b). The | ||||||
8 | program shall apply to all sales-based financings and | ||||||
9 | commercial closed-end financings for which interest charges | ||||||
10 | that accrue on the outstanding balance represent a minority of | ||||||
11 | the finance charge that are governed by this Act and that are | ||||||
12 | made or taken on or after the inception of the program. | ||||||
13 | (b) The Department shall certify that a commercial | ||||||
14 | financing database is a commercially reasonable method of | ||||||
15 | reporting. Upon certifying that a commercial financing | ||||||
16 | database is a commercially reasonable method of reporting, the | ||||||
17 | Department shall: | ||||||
18 | (1) provide reasonable notice to all registrants | ||||||
19 | identifying the commercially reasonable method of | ||||||
20 | reporting that is available; and | ||||||
21 | (2) no earlier than 6 months after certification, | ||||||
22 | require each registrant offering sales-based financing or | ||||||
23 | commercial closed-end financings for which interest | ||||||
24 | charges that accrue on the outstanding balance represent a | ||||||
25 | minority of the finance charge to use a commercially | ||||||
26 | reasonable method of reporting as a means of complying |
| |||||||
| |||||||
1 | with subsection (d) of this Section. | ||||||
2 | (c) The database created under this program shall be | ||||||
3 | maintained and administered by the Department. The database | ||||||
4 | shall be designed to allow providers to submit information to | ||||||
5 | the database online. The database shall not be designed to | ||||||
6 | allow providers to retrieve information from the database, | ||||||
7 | except as otherwise provided in this Act. | ||||||
8 | (d) Within 30 days after providing funds to a recipient, | ||||||
9 | the provider shall submit to the commercial financing database | ||||||
10 | the information delineated in subsections (e) and (f). If at | ||||||
11 | the time funds are provided to a recipient, certain | ||||||
12 | information delineated in this subsection is not known, then | ||||||
13 | the provider shall submit the information to the commercial | ||||||
14 | financing database within 30 days after the information | ||||||
15 | becoming ascertainable. | ||||||
16 | (e) For sales-based financings, the provider shall submit | ||||||
17 | the following information to the commercial financing | ||||||
18 | database: | ||||||
19 | (1) the FEIN for the recipient; | ||||||
20 | (2) the zip code of the recipient; | ||||||
21 | (3) the date on which the disclosure required under | ||||||
22 | Section 45 was provided; | ||||||
23 | (4) the origination date of the sales-based financing; | ||||||
24 | (5) the total amount of commercial financing; | ||||||
25 | (6) the disbursed amount after any amount deducted or | ||||||
26 | withheld at disbursement, if different than the financing |
| |||||||
| |||||||
1 | amount; | ||||||
2 | (7) the finance charge; | ||||||
3 | (8) the estimated annual percentage rate as disclosed | ||||||
4 | to the recipient under paragraph (3) of Section 45; | ||||||
5 | (9) the total repayment amount; | ||||||
6 | (10) the estimated term, as disclosed to the recipient | ||||||
7 | under paragraph (5) of Section 45; | ||||||
8 | (11) the percentage of the recipient's sales upon | ||||||
9 | which the payment is calculated; | ||||||
10 | (12) the frequency of payment, and the total amount of | ||||||
11 | average projected payments per month, as disclosed to the | ||||||
12 | recipient under paragraph (6) of Section 45; | ||||||
13 | (13) whether the projected sales volume used to | ||||||
14 | determine the estimated annual percentage rate, estimated | ||||||
15 | term, and projected payments provided in the disclosure | ||||||
16 | under Section 45 were determined according to the | ||||||
17 | historical method described in subparagraph (A) of | ||||||
18 | paragraph (3) of Section 45 or according to the | ||||||
19 | underwriting method described in subparagraph (B) of | ||||||
20 | paragraph (3) of Section 45; | ||||||
21 | (14) the amount of any finance charge the recipient | ||||||
22 | would be required to pay if the recipient elects to pay off | ||||||
23 | or refinance the sales-based financing before full | ||||||
24 | repayment, as disclosed to the recipient; | ||||||
25 | (15) description of collateral, if any, securing the | ||||||
26 | sales-based financing, including any guarantee; |
| |||||||
| |||||||
1 | (16) the position of any lien taken; | ||||||
2 | (17) upon full repayment, if the sales-based financing | ||||||
3 | includes a true-up mechanism, the number of true-ups | ||||||
4 | provided; | ||||||
5 | (18) upon full repayment, the actual term of the | ||||||
6 | commercial financing; | ||||||
7 | (19) upon full repayment, the actual annual percentage | ||||||
8 | rate calculated retrospectively based on the actual | ||||||
9 | payments collected; and | ||||||
10 | (20) all other information requested by the | ||||||
11 | Department. | ||||||
12 | (f) For closed-end financing for which interest charges | ||||||
13 | that accrue on the outstanding balance represent a minority of | ||||||
14 | the finance charge submit, the following information to the | ||||||
15 | commercial financing database: | ||||||
16 | (1) the FEIN for the recipient; | ||||||
17 | (2) the zip code of the recipient; | ||||||
18 | (3) the date on which the disclosure required under | ||||||
19 | Section 50 was provided; | ||||||
20 | (4) the origination date; | ||||||
21 | (5) the total amount of commercial financing; | ||||||
22 | (6) the disbursed amount after any amount deducted or | ||||||
23 | withheld at disbursement, if different than the financing | ||||||
24 | amount; | ||||||
25 | (7) the finance charge; | ||||||
26 | (8) the annual percentage rate as disclosed to the |
| |||||||
| |||||||
1 | recipient under paragraph (3) of Section 50; | ||||||
2 | (9) the total repayment amount; | ||||||
3 | (10) the term of the financing; | ||||||
4 | (11) the frequency of payment; | ||||||
5 | (12) the amount of the payment, and the total amount | ||||||
6 | of average projected payments per month, as disclosed to | ||||||
7 | the recipient under paragraph (6) of Section 50; | ||||||
8 | (13) the amount of any finance charge the recipient | ||||||
9 | would be required to pay if the recipient elects to pay off | ||||||
10 | or refinance the commercial financing before full | ||||||
11 | repayment, other than interest accrued since the last | ||||||
12 | payment, as disclosed to the recipient; | ||||||
13 | (14) whether the recipient would be required to pay | ||||||
14 | any additional fees not already included in the finance | ||||||
15 | charge if the recipient elects to pay off or refinance the | ||||||
16 | commercial financing before full repayment, as disclosed | ||||||
17 | to the recipient; | ||||||
18 | (15) description of collateral, if any, securing the | ||||||
19 | commercial financing, including any guarantee; | ||||||
20 | (16) the position of any lien taken; and | ||||||
21 | (17) all other information requested by the | ||||||
22 | Department. | ||||||
23 | (g) All personally identifiable information and | ||||||
24 | information identifying the identity of a recipient obtained | ||||||
25 | by way of the commercial financing database is strictly | ||||||
26 | confidential and shall be exempt from disclosure under the |
| |||||||
| |||||||
1 | Freedom of Information Act and any other law or regulation | ||||||
2 | pertaining to the disclosure of information or documents. The | ||||||
3 | Department may, by rule, identify any additional categories of | ||||||
4 | information the disclosure of which would be contrary to the | ||||||
5 | public interest. Any request for production of information | ||||||
6 | from the commercial financing database, whether by subpoena, | ||||||
7 | notice, or any other source, shall be referred to the | ||||||
8 | Department. Any recipient may authorize in writing the release | ||||||
9 | of database information. The Department may use the | ||||||
10 | information in the database without the consent of the | ||||||
11 | recipient or the registrant: | ||||||
12 | (1) for the purposes of administering and enforcing | ||||||
13 | the program; | ||||||
14 | (2) to prepare industry-level reports; | ||||||
15 | (3) to provide information to the appropriate law | ||||||
16 | enforcement agency or the applicable administrative or | ||||||
17 | regulatory agency with a legitimate interest in the | ||||||
18 | information as determined by the Secretary; | ||||||
19 | (4) as required to comply with applicable law; or | ||||||
20 | (5) in any other manner that the Secretary deems is | ||||||
21 | not contrary to the public interest. | ||||||
22 | (h) A registrant who submits information to a certified | ||||||
23 | database provider in accordance with this Section shall not be | ||||||
24 | liable to any person for any subsequent release or disclosure | ||||||
25 | of that information by the certified database provider, the | ||||||
26 | Department, or any other person acquiring possession of the |
| |||||||
| |||||||
1 | information, regardless of whether the subsequent release or | ||||||
2 | disclosure was lawful, authorized, or intentional. | ||||||
3 | (i) In certifying a commercially reasonable method of | ||||||
4 | reporting, the Department shall ensure that the commercial | ||||||
5 | financing database: | ||||||
6 | (1) provides real-time access through an Internet | ||||||
7 | connection; | ||||||
8 | (2) is accessible to the Department and to registrants | ||||||
9 | in order to ensure compliance with this Act and in order to | ||||||
10 | provide any other information that the Department deems | ||||||
11 | necessary; | ||||||
12 | (3) requires registrants to input whatever information | ||||||
13 | is required by the Department; | ||||||
14 | (4) maintains a real-time copy of the required | ||||||
15 | reporting information that is available to the Department | ||||||
16 | at all times and is the property of the Department; and | ||||||
17 | (5) contains safeguards to ensure that all information | ||||||
18 | contained in the database regarding consumers and | ||||||
19 | financing recipients is kept strictly confidential. | ||||||
20 | (j) The certified commercial financing database may charge | ||||||
21 | a fee to a registrant not to exceed $1 for each financing | ||||||
22 | entered into the database. The certified commercial financing | ||||||
23 | database shall not charge any additional fees or charges. | ||||||
24 | (k) The certified commercial financing database provider | ||||||
25 | shall produce an annual report for the Department using the | ||||||
26 | data submitted by registrants to the database. The Department |
| |||||||
| |||||||
1 | may publish this report to the public.
| ||||||
2 | Section 170. Severability. The provisions of this Act are | ||||||
3 | severable under Section 1.31 of the Statute on Statutes.
| ||||||
4 | Section 900. The Freedom of Information Act is amended by | ||||||
5 | changing Section 7.5 as follows:
| ||||||
6 | (5 ILCS 140/7.5) | ||||||
7 | (Text of Section before amendment by P.A. 103-472 ) | ||||||
8 | Sec. 7.5. Statutory exemptions. To the extent provided for | ||||||
9 | by the statutes referenced below, the following shall be | ||||||
10 | exempt from inspection and copying: | ||||||
11 | (a) All information determined to be confidential | ||||||
12 | under Section 4002 of the Technology Advancement and | ||||||
13 | Development Act. | ||||||
14 | (b) Library circulation and order records identifying | ||||||
15 | library users with specific materials under the Library | ||||||
16 | Records Confidentiality Act. | ||||||
17 | (c) Applications, related documents, and medical | ||||||
18 | records received by the Experimental Organ Transplantation | ||||||
19 | Procedures Board and any and all documents or other | ||||||
20 | records prepared by the Experimental Organ Transplantation | ||||||
21 | Procedures Board or its staff relating to applications it | ||||||
22 | has received. | ||||||
23 | (d) Information and records held by the Department of |
| |||||||
| |||||||
1 | Public Health and its authorized representatives relating | ||||||
2 | to known or suspected cases of sexually transmissible | ||||||
3 | disease or any information the disclosure of which is | ||||||
4 | restricted under the Illinois Sexually Transmissible | ||||||
5 | Disease Control Act. | ||||||
6 | (e) Information the disclosure of which is exempted | ||||||
7 | under Section 30 of the Radon Industry Licensing Act. | ||||||
8 | (f) Firm performance evaluations under Section 55 of | ||||||
9 | the Architectural, Engineering, and Land Surveying | ||||||
10 | Qualifications Based Selection Act. | ||||||
11 | (g) Information the disclosure of which is restricted | ||||||
12 | and exempted under Section 50 of the Illinois Prepaid | ||||||
13 | Tuition Act. | ||||||
14 | (h) Information the disclosure of which is exempted | ||||||
15 | under the State Officials and Employees Ethics Act, and | ||||||
16 | records of any lawfully created State or local inspector | ||||||
17 | general's office that would be exempt if created or | ||||||
18 | obtained by an Executive Inspector General's office under | ||||||
19 | that Act. | ||||||
20 | (i) Information contained in a local emergency energy | ||||||
21 | plan submitted to a municipality in accordance with a | ||||||
22 | local emergency energy plan ordinance that is adopted | ||||||
23 | under Section 11-21.5-5 of the Illinois Municipal Code. | ||||||
24 | (j) Information and data concerning the distribution | ||||||
25 | of surcharge moneys collected and remitted by carriers | ||||||
26 | under the Emergency Telephone System Act. |
| |||||||
| |||||||
1 | (k) Law enforcement officer identification information | ||||||
2 | or driver identification information compiled by a law | ||||||
3 | enforcement agency or the Department of Transportation | ||||||
4 | under Section 11-212 of the Illinois Vehicle Code. | ||||||
5 | (l) Records and information provided to a residential | ||||||
6 | health care facility resident sexual assault and death | ||||||
7 | review team or the Executive Council under the Abuse | ||||||
8 | Prevention Review Team Act. | ||||||
9 | (m) Information provided to the predatory lending | ||||||
10 | database created pursuant to Article 3 of the Residential | ||||||
11 | Real Property Disclosure Act, except to the extent | ||||||
12 | authorized under that Article. | ||||||
13 | (n) Defense budgets and petitions for certification of | ||||||
14 | compensation and expenses for court appointed trial | ||||||
15 | counsel as provided under Sections 10 and 15 of the | ||||||
16 | Capital Crimes Litigation Act (repealed) . This subsection | ||||||
17 | (n) shall apply until the conclusion of the trial of the | ||||||
18 | case, even if the prosecution chooses not to pursue the | ||||||
19 | death penalty prior to trial or sentencing. | ||||||
20 | (o) Information that is prohibited from being | ||||||
21 | disclosed under Section 4 of the Illinois Health and | ||||||
22 | Hazardous Substances Registry Act. | ||||||
23 | (p) Security portions of system safety program plans, | ||||||
24 | investigation reports, surveys, schedules, lists, data, or | ||||||
25 | information compiled, collected, or prepared by or for the | ||||||
26 | Department of Transportation under Sections 2705-300 and |
| |||||||
| |||||||
1 | 2705-616 of the Department of Transportation Law of the | ||||||
2 | Civil Administrative Code of Illinois, the Regional | ||||||
3 | Transportation Authority under Section 2.11 of the | ||||||
4 | Regional Transportation Authority Act, or the St. Clair | ||||||
5 | County Transit District under the Bi-State Transit Safety | ||||||
6 | Act (repealed) . | ||||||
7 | (q) Information prohibited from being disclosed by the | ||||||
8 | Personnel Record Review Act. | ||||||
9 | (r) Information prohibited from being disclosed by the | ||||||
10 | Illinois School Student Records Act. | ||||||
11 | (s) Information the disclosure of which is restricted | ||||||
12 | under Section 5-108 of the Public Utilities Act. | ||||||
13 | (t) (Blank). | ||||||
14 | (u) Records and information provided to an independent | ||||||
15 | team of experts under the Developmental Disability and | ||||||
16 | Mental Health Safety Act (also known as Brian's Law). | ||||||
17 | (v) Names and information of people who have applied | ||||||
18 | for or received Firearm Owner's Identification Cards under | ||||||
19 | the Firearm Owners Identification Card Act or applied for | ||||||
20 | or received a concealed carry license under the Firearm | ||||||
21 | Concealed Carry Act, unless otherwise authorized by the | ||||||
22 | Firearm Concealed Carry Act; and databases under the | ||||||
23 | Firearm Concealed Carry Act, records of the Concealed | ||||||
24 | Carry Licensing Review Board under the Firearm Concealed | ||||||
25 | Carry Act, and law enforcement agency objections under the | ||||||
26 | Firearm Concealed Carry Act. |
| |||||||
| |||||||
1 | (v-5) Records of the Firearm Owner's Identification | ||||||
2 | Card Review Board that are exempted from disclosure under | ||||||
3 | Section 10 of the Firearm Owners Identification Card Act. | ||||||
4 | (w) Personally identifiable information which is | ||||||
5 | exempted from disclosure under subsection (g) of Section | ||||||
6 | 19.1 of the Toll Highway Act. | ||||||
7 | (x) Information which is exempted from disclosure | ||||||
8 | under Section 5-1014.3 of the Counties Code or Section | ||||||
9 | 8-11-21 of the Illinois Municipal Code. | ||||||
10 | (y) Confidential information under the Adult | ||||||
11 | Protective Services Act and its predecessor enabling | ||||||
12 | statute, the Elder Abuse and Neglect Act, including | ||||||
13 | information about the identity and administrative finding | ||||||
14 | against any caregiver of a verified and substantiated | ||||||
15 | decision of abuse, neglect, or financial exploitation of | ||||||
16 | an eligible adult maintained in the Registry established | ||||||
17 | under Section 7.5 of the Adult Protective Services Act. | ||||||
18 | (z) Records and information provided to a fatality | ||||||
19 | review team or the Illinois Fatality Review Team Advisory | ||||||
20 | Council under Section 15 of the Adult Protective Services | ||||||
21 | Act. | ||||||
22 | (aa) Information which is exempted from disclosure | ||||||
23 | under Section 2.37 of the Wildlife Code. | ||||||
24 | (bb) Information which is or was prohibited from | ||||||
25 | disclosure by the Juvenile Court Act of 1987. | ||||||
26 | (cc) Recordings made under the Law Enforcement |
| |||||||
| |||||||
1 | Officer-Worn Body Camera Act, except to the extent | ||||||
2 | authorized under that Act. | ||||||
3 | (dd) Information that is prohibited from being | ||||||
4 | disclosed under Section 45 of the Condominium and Common | ||||||
5 | Interest Community Ombudsperson Act. | ||||||
6 | (ee) Information that is exempted from disclosure | ||||||
7 | under Section 30.1 of the Pharmacy Practice Act. | ||||||
8 | (ff) Information that is exempted from disclosure | ||||||
9 | under the Revised Uniform Unclaimed Property Act. | ||||||
10 | (gg) Information that is prohibited from being | ||||||
11 | disclosed under Section 7-603.5 of the Illinois Vehicle | ||||||
12 | Code. | ||||||
13 | (hh) Records that are exempt from disclosure under | ||||||
14 | Section 1A-16.7 of the Election Code. | ||||||
15 | (ii) Information which is exempted from disclosure | ||||||
16 | under Section 2505-800 of the Department of Revenue Law of | ||||||
17 | the Civil Administrative Code of Illinois. | ||||||
18 | (jj) Information and reports that are required to be | ||||||
19 | submitted to the Department of Labor by registering day | ||||||
20 | and temporary labor service agencies but are exempt from | ||||||
21 | disclosure under subsection (a-1) of Section 45 of the Day | ||||||
22 | and Temporary Labor Services Act. | ||||||
23 | (kk) Information prohibited from disclosure under the | ||||||
24 | Seizure and Forfeiture Reporting Act. | ||||||
25 | (ll) Information the disclosure of which is restricted | ||||||
26 | and exempted under Section 5-30.8 of the Illinois Public |
| |||||||
| |||||||
1 | Aid Code. | ||||||
2 | (mm) Records that are exempt from disclosure under | ||||||
3 | Section 4.2 of the Crime Victims Compensation Act. | ||||||
4 | (nn) Information that is exempt from disclosure under | ||||||
5 | Section 70 of the Higher Education Student Assistance Act. | ||||||
6 | (oo) Communications, notes, records, and reports | ||||||
7 | arising out of a peer support counseling session | ||||||
8 | prohibited from disclosure under the First Responders | ||||||
9 | Suicide Prevention Act. | ||||||
10 | (pp) Names and all identifying information relating to | ||||||
11 | an employee of an emergency services provider or law | ||||||
12 | enforcement agency under the First Responders Suicide | ||||||
13 | Prevention Act. | ||||||
14 | (qq) Information and records held by the Department of | ||||||
15 | Public Health and its authorized representatives collected | ||||||
16 | under the Reproductive Health Act. | ||||||
17 | (rr) Information that is exempt from disclosure under | ||||||
18 | the Cannabis Regulation and Tax Act. | ||||||
19 | (ss) Data reported by an employer to the Department of | ||||||
20 | Human Rights pursuant to Section 2-108 of the Illinois | ||||||
21 | Human Rights Act. | ||||||
22 | (tt) Recordings made under the Children's Advocacy | ||||||
23 | Center Act, except to the extent authorized under that | ||||||
24 | Act. | ||||||
25 | (uu) Information that is exempt from disclosure under | ||||||
26 | Section 50 of the Sexual Assault Evidence Submission Act. |
| |||||||
| |||||||
1 | (vv) Information that is exempt from disclosure under | ||||||
2 | subsections (f) and (j) of Section 5-36 of the Illinois | ||||||
3 | Public Aid Code. | ||||||
4 | (ww) Information that is exempt from disclosure under | ||||||
5 | Section 16.8 of the State Treasurer Act. | ||||||
6 | (xx) Information that is exempt from disclosure or | ||||||
7 | information that shall not be made public under the | ||||||
8 | Illinois Insurance Code. | ||||||
9 | (yy) Information prohibited from being disclosed under | ||||||
10 | the Illinois Educational Labor Relations Act. | ||||||
11 | (zz) Information prohibited from being disclosed under | ||||||
12 | the Illinois Public Labor Relations Act. | ||||||
13 | (aaa) Information prohibited from being disclosed | ||||||
14 | under Section 1-167 of the Illinois Pension Code. | ||||||
15 | (bbb) Information that is prohibited from disclosure | ||||||
16 | by the Illinois Police Training Act and the Illinois State | ||||||
17 | Police Act. | ||||||
18 | (ccc) Records exempt from disclosure under Section | ||||||
19 | 2605-304 of the Illinois State Police Law of the Civil | ||||||
20 | Administrative Code of Illinois. | ||||||
21 | (ddd) Information prohibited from being disclosed | ||||||
22 | under Section 35 of the Address Confidentiality for | ||||||
23 | Victims of Domestic Violence, Sexual Assault, Human | ||||||
24 | Trafficking, or Stalking Act. | ||||||
25 | (eee) Information prohibited from being disclosed | ||||||
26 | under subsection (b) of Section 75 of the Domestic |
| |||||||
| |||||||
1 | Violence Fatality Review Act. | ||||||
2 | (fff) Images from cameras under the Expressway Camera | ||||||
3 | Act. This subsection (fff) is inoperative on and after | ||||||
4 | July 1, 2025. | ||||||
5 | (ggg) Information prohibited from disclosure under | ||||||
6 | paragraph (3) of subsection (a) of Section 14 of the Nurse | ||||||
7 | Agency Licensing Act. | ||||||
8 | (hhh) Information submitted to the Illinois State | ||||||
9 | Police in an affidavit or application for an assault | ||||||
10 | weapon endorsement, assault weapon attachment endorsement, | ||||||
11 | .50 caliber rifle endorsement, or .50 caliber cartridge | ||||||
12 | endorsement under the Firearm Owners Identification Card | ||||||
13 | Act. | ||||||
14 | (iii) Data exempt from disclosure under Section 50 of | ||||||
15 | the School Safety Drill Act. | ||||||
16 | (jjj) (hhh) Information exempt from disclosure under | ||||||
17 | Section 30 of the Insurance Data Security Law. | ||||||
18 | (kkk) (iii) Confidential business information | ||||||
19 | prohibited from disclosure under Section 45 of the Paint | ||||||
20 | Stewardship Act. | ||||||
21 | (lll) (Reserved). | ||||||
22 | (mmm) (iii) Information prohibited from being | ||||||
23 | disclosed under subsection (e) of Section 1-129 of the | ||||||
24 | Illinois Power Agency Act. | ||||||
25 | (nnn) Information exempt from disclosure under Section | ||||||
26 | 165 of the Small Business Financing Transparency Act. |
| |||||||
| |||||||
1 | (Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22; | ||||||
2 | 102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff. | ||||||
3 | 8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22; | ||||||
4 | 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff. | ||||||
5 | 6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372, | ||||||
6 | eff. 1-1-24; 103-508, eff. 8-4-23; 103-580, eff. 12-8-23; | ||||||
7 | revised 1-2-24.)
| ||||||
8 | (Text of Section after amendment by P.A. 103-472 ) | ||||||
9 | Sec. 7.5. Statutory exemptions. To the extent provided for | ||||||
10 | by the statutes referenced below, the following shall be | ||||||
11 | exempt from inspection and copying: | ||||||
12 | (a) All information determined to be confidential | ||||||
13 | under Section 4002 of the Technology Advancement and | ||||||
14 | Development Act. | ||||||
15 | (b) Library circulation and order records identifying | ||||||
16 | library users with specific materials under the Library | ||||||
17 | Records Confidentiality Act. | ||||||
18 | (c) Applications, related documents, and medical | ||||||
19 | records received by the Experimental Organ Transplantation | ||||||
20 | Procedures Board and any and all documents or other | ||||||
21 | records prepared by the Experimental Organ Transplantation | ||||||
22 | Procedures Board or its staff relating to applications it | ||||||
23 | has received. | ||||||
24 | (d) Information and records held by the Department of | ||||||
25 | Public Health and its authorized representatives relating |
| |||||||
| |||||||
1 | to known or suspected cases of sexually transmissible | ||||||
2 | disease or any information the disclosure of which is | ||||||
3 | restricted under the Illinois Sexually Transmissible | ||||||
4 | Disease Control Act. | ||||||
5 | (e) Information the disclosure of which is exempted | ||||||
6 | under Section 30 of the Radon Industry Licensing Act. | ||||||
7 | (f) Firm performance evaluations under Section 55 of | ||||||
8 | the Architectural, Engineering, and Land Surveying | ||||||
9 | Qualifications Based Selection Act. | ||||||
10 | (g) Information the disclosure of which is restricted | ||||||
11 | and exempted under Section 50 of the Illinois Prepaid | ||||||
12 | Tuition Act. | ||||||
13 | (h) Information the disclosure of which is exempted | ||||||
14 | under the State Officials and Employees Ethics Act, and | ||||||
15 | records of any lawfully created State or local inspector | ||||||
16 | general's office that would be exempt if created or | ||||||
17 | obtained by an Executive Inspector General's office under | ||||||
18 | that Act. | ||||||
19 | (i) Information contained in a local emergency energy | ||||||
20 | plan submitted to a municipality in accordance with a | ||||||
21 | local emergency energy plan ordinance that is adopted | ||||||
22 | under Section 11-21.5-5 of the Illinois Municipal Code. | ||||||
23 | (j) Information and data concerning the distribution | ||||||
24 | of surcharge moneys collected and remitted by carriers | ||||||
25 | under the Emergency Telephone System Act. | ||||||
26 | (k) Law enforcement officer identification information |
| |||||||
| |||||||
1 | or driver identification information compiled by a law | ||||||
2 | enforcement agency or the Department of Transportation | ||||||
3 | under Section 11-212 of the Illinois Vehicle Code. | ||||||
4 | (l) Records and information provided to a residential | ||||||
5 | health care facility resident sexual assault and death | ||||||
6 | review team or the Executive Council under the Abuse | ||||||
7 | Prevention Review Team Act. | ||||||
8 | (m) Information provided to the predatory lending | ||||||
9 | database created pursuant to Article 3 of the Residential | ||||||
10 | Real Property Disclosure Act, except to the extent | ||||||
11 | authorized under that Article. | ||||||
12 | (n) Defense budgets and petitions for certification of | ||||||
13 | compensation and expenses for court appointed trial | ||||||
14 | counsel as provided under Sections 10 and 15 of the | ||||||
15 | Capital Crimes Litigation Act (repealed) . This subsection | ||||||
16 | (n) shall apply until the conclusion of the trial of the | ||||||
17 | case, even if the prosecution chooses not to pursue the | ||||||
18 | death penalty prior to trial or sentencing. | ||||||
19 | (o) Information that is prohibited from being | ||||||
20 | disclosed under Section 4 of the Illinois Health and | ||||||
21 | Hazardous Substances Registry Act. | ||||||
22 | (p) Security portions of system safety program plans, | ||||||
23 | investigation reports, surveys, schedules, lists, data, or | ||||||
24 | information compiled, collected, or prepared by or for the | ||||||
25 | Department of Transportation under Sections 2705-300 and | ||||||
26 | 2705-616 of the Department of Transportation Law of the |
| |||||||
| |||||||
1 | Civil Administrative Code of Illinois, the Regional | ||||||
2 | Transportation Authority under Section 2.11 of the | ||||||
3 | Regional Transportation Authority Act, or the St. Clair | ||||||
4 | County Transit District under the Bi-State Transit Safety | ||||||
5 | Act (repealed) . | ||||||
6 | (q) Information prohibited from being disclosed by the | ||||||
7 | Personnel Record Review Act. | ||||||
8 | (r) Information prohibited from being disclosed by the | ||||||
9 | Illinois School Student Records Act. | ||||||
10 | (s) Information the disclosure of which is restricted | ||||||
11 | under Section 5-108 of the Public Utilities Act. | ||||||
12 | (t) (Blank). | ||||||
13 | (u) Records and information provided to an independent | ||||||
14 | team of experts under the Developmental Disability and | ||||||
15 | Mental Health Safety Act (also known as Brian's Law). | ||||||
16 | (v) Names and information of people who have applied | ||||||
17 | for or received Firearm Owner's Identification Cards under | ||||||
18 | the Firearm Owners Identification Card Act or applied for | ||||||
19 | or received a concealed carry license under the Firearm | ||||||
20 | Concealed Carry Act, unless otherwise authorized by the | ||||||
21 | Firearm Concealed Carry Act; and databases under the | ||||||
22 | Firearm Concealed Carry Act, records of the Concealed | ||||||
23 | Carry Licensing Review Board under the Firearm Concealed | ||||||
24 | Carry Act, and law enforcement agency objections under the | ||||||
25 | Firearm Concealed Carry Act. | ||||||
26 | (v-5) Records of the Firearm Owner's Identification |
| |||||||
| |||||||
1 | Card Review Board that are exempted from disclosure under | ||||||
2 | Section 10 of the Firearm Owners Identification Card Act. | ||||||
3 | (w) Personally identifiable information which is | ||||||
4 | exempted from disclosure under subsection (g) of Section | ||||||
5 | 19.1 of the Toll Highway Act. | ||||||
6 | (x) Information which is exempted from disclosure | ||||||
7 | under Section 5-1014.3 of the Counties Code or Section | ||||||
8 | 8-11-21 of the Illinois Municipal Code. | ||||||
9 | (y) Confidential information under the Adult | ||||||
10 | Protective Services Act and its predecessor enabling | ||||||
11 | statute, the Elder Abuse and Neglect Act, including | ||||||
12 | information about the identity and administrative finding | ||||||
13 | against any caregiver of a verified and substantiated | ||||||
14 | decision of abuse, neglect, or financial exploitation of | ||||||
15 | an eligible adult maintained in the Registry established | ||||||
16 | under Section 7.5 of the Adult Protective Services Act. | ||||||
17 | (z) Records and information provided to a fatality | ||||||
18 | review team or the Illinois Fatality Review Team Advisory | ||||||
19 | Council under Section 15 of the Adult Protective Services | ||||||
20 | Act. | ||||||
21 | (aa) Information which is exempted from disclosure | ||||||
22 | under Section 2.37 of the Wildlife Code. | ||||||
23 | (bb) Information which is or was prohibited from | ||||||
24 | disclosure by the Juvenile Court Act of 1987. | ||||||
25 | (cc) Recordings made under the Law Enforcement | ||||||
26 | Officer-Worn Body Camera Act, except to the extent |
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1 | authorized under that Act. | ||||||
2 | (dd) Information that is prohibited from being | ||||||
3 | disclosed under Section 45 of the Condominium and Common | ||||||
4 | Interest Community Ombudsperson Act. | ||||||
5 | (ee) Information that is exempted from disclosure | ||||||
6 | under Section 30.1 of the Pharmacy Practice Act. | ||||||
7 | (ff) Information that is exempted from disclosure | ||||||
8 | under the Revised Uniform Unclaimed Property Act. | ||||||
9 | (gg) Information that is prohibited from being | ||||||
10 | disclosed under Section 7-603.5 of the Illinois Vehicle | ||||||
11 | Code. | ||||||
12 | (hh) Records that are exempt from disclosure under | ||||||
13 | Section 1A-16.7 of the Election Code. | ||||||
14 | (ii) Information which is exempted from disclosure | ||||||
15 | under Section 2505-800 of the Department of Revenue Law of | ||||||
16 | the Civil Administrative Code of Illinois. | ||||||
17 | (jj) Information and reports that are required to be | ||||||
18 | submitted to the Department of Labor by registering day | ||||||
19 | and temporary labor service agencies but are exempt from | ||||||
20 | disclosure under subsection (a-1) of Section 45 of the Day | ||||||
21 | and Temporary Labor Services Act. | ||||||
22 | (kk) Information prohibited from disclosure under the | ||||||
23 | Seizure and Forfeiture Reporting Act. | ||||||
24 | (ll) Information the disclosure of which is restricted | ||||||
25 | and exempted under Section 5-30.8 of the Illinois Public | ||||||
26 | Aid Code. |
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1 | (mm) Records that are exempt from disclosure under | ||||||
2 | Section 4.2 of the Crime Victims Compensation Act. | ||||||
3 | (nn) Information that is exempt from disclosure under | ||||||
4 | Section 70 of the Higher Education Student Assistance Act. | ||||||
5 | (oo) Communications, notes, records, and reports | ||||||
6 | arising out of a peer support counseling session | ||||||
7 | prohibited from disclosure under the First Responders | ||||||
8 | Suicide Prevention Act. | ||||||
9 | (pp) Names and all identifying information relating to | ||||||
10 | an employee of an emergency services provider or law | ||||||
11 | enforcement agency under the First Responders Suicide | ||||||
12 | Prevention Act. | ||||||
13 | (qq) Information and records held by the Department of | ||||||
14 | Public Health and its authorized representatives collected | ||||||
15 | under the Reproductive Health Act. | ||||||
16 | (rr) Information that is exempt from disclosure under | ||||||
17 | the Cannabis Regulation and Tax Act. | ||||||
18 | (ss) Data reported by an employer to the Department of | ||||||
19 | Human Rights pursuant to Section 2-108 of the Illinois | ||||||
20 | Human Rights Act. | ||||||
21 | (tt) Recordings made under the Children's Advocacy | ||||||
22 | Center Act, except to the extent authorized under that | ||||||
23 | Act. | ||||||
24 | (uu) Information that is exempt from disclosure under | ||||||
25 | Section 50 of the Sexual Assault Evidence Submission Act. | ||||||
26 | (vv) Information that is exempt from disclosure under |
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1 | subsections (f) and (j) of Section 5-36 of the Illinois | ||||||
2 | Public Aid Code. | ||||||
3 | (ww) Information that is exempt from disclosure under | ||||||
4 | Section 16.8 of the State Treasurer Act. | ||||||
5 | (xx) Information that is exempt from disclosure or | ||||||
6 | information that shall not be made public under the | ||||||
7 | Illinois Insurance Code. | ||||||
8 | (yy) Information prohibited from being disclosed under | ||||||
9 | the Illinois Educational Labor Relations Act. | ||||||
10 | (zz) Information prohibited from being disclosed under | ||||||
11 | the Illinois Public Labor Relations Act. | ||||||
12 | (aaa) Information prohibited from being disclosed | ||||||
13 | under Section 1-167 of the Illinois Pension Code. | ||||||
14 | (bbb) Information that is prohibited from disclosure | ||||||
15 | by the Illinois Police Training Act and the Illinois State | ||||||
16 | Police Act. | ||||||
17 | (ccc) Records exempt from disclosure under Section | ||||||
18 | 2605-304 of the Illinois State Police Law of the Civil | ||||||
19 | Administrative Code of Illinois. | ||||||
20 | (ddd) Information prohibited from being disclosed | ||||||
21 | under Section 35 of the Address Confidentiality for | ||||||
22 | Victims of Domestic Violence, Sexual Assault, Human | ||||||
23 | Trafficking, or Stalking Act. | ||||||
24 | (eee) Information prohibited from being disclosed | ||||||
25 | under subsection (b) of Section 75 of the Domestic | ||||||
26 | Violence Fatality Review Act. |
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1 | (fff) Images from cameras under the Expressway Camera | ||||||
2 | Act. This subsection (fff) is inoperative on and after | ||||||
3 | July 1, 2025. | ||||||
4 | (ggg) Information prohibited from disclosure under | ||||||
5 | paragraph (3) of subsection (a) of Section 14 of the Nurse | ||||||
6 | Agency Licensing Act. | ||||||
7 | (hhh) Information submitted to the Illinois State | ||||||
8 | Police in an affidavit or application for an assault | ||||||
9 | weapon endorsement, assault weapon attachment endorsement, | ||||||
10 | .50 caliber rifle endorsement, or .50 caliber cartridge | ||||||
11 | endorsement under the Firearm Owners Identification Card | ||||||
12 | Act. | ||||||
13 | (iii) Data exempt from disclosure under Section 50 of | ||||||
14 | the School Safety Drill Act. | ||||||
15 | (jjj) (hhh) Information exempt from disclosure under | ||||||
16 | Section 30 of the Insurance Data Security Law. | ||||||
17 | (kkk) (iii) Confidential business information | ||||||
18 | prohibited from disclosure under Section 45 of the Paint | ||||||
19 | Stewardship Act. | ||||||
20 | (lll) (iii) Data exempt from disclosure under Section | ||||||
21 | 2-3.196 of the School Code. | ||||||
22 | (mmm) (iii) Information prohibited from being | ||||||
23 | disclosed under subsection (e) of Section 1-129 of the | ||||||
24 | Illinois Power Agency Act. | ||||||
25 | (nnn) Information exempt from disclosure under Section | ||||||
26 | 165 of the Small Business Financing Transparency Act. |
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1 | (Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22; | ||||||
2 | 102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff. | ||||||
3 | 8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22; | ||||||
4 | 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff. | ||||||
5 | 6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372, | ||||||
6 | eff. 1-1-24; 103-472, eff. 8-1-24; 103-508, eff. 8-4-23; | ||||||
7 | 103-580, eff. 12-8-23; revised 1-2-24.)
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8 | Section 905. The Consumer Fraud and Deceptive Business | ||||||
9 | Practices Act is amended by adding Section 2EEEE as follows:
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10 | (815 ILCS 505/2EEEE new) | ||||||
11 | Sec. 2EEEE. Violations of the Small Business Financing | ||||||
12 | Transparency Act. Any person who violates the Small Business | ||||||
13 | Financing Transparency Act commits an unlawful practice within | ||||||
14 | the meaning of this Act.
| ||||||
15 | Section 995. No acceleration or delay. Where this Act | ||||||
16 | makes changes in a statute that is represented in this Act by | ||||||
17 | text that is not yet or no longer in effect (for example, a | ||||||
18 | Section represented by multiple versions), the use of that | ||||||
19 | text does not accelerate or delay the taking effect of (i) the | ||||||
20 | changes made by this Act or (ii) provisions derived from any | ||||||
21 | other Public Act.
|