IL
Illinois Senate Bill SB2234

Illinois 2023-2024 Regular Session

Illinois Senate Bill SB2234 Compare Versions

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1+103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2234 Introduced 2/10/2023, by Sen. Laura Ellman SYNOPSIS AS INTRODUCED: New Act815 ILCS 505/2BBBB new Creates the Small Business Truth in Lending Act. Sets forth provisions concerning disclosure requirements for sales-based financing, closed-end commercial financing, open-end commercial financing, factoring transactions, renewal financing, and other forms of financing. Provides that all commercial financing shall include a clear and conspicuous notice on how to file a complaint with the Department of Financial and Professional Regulation. Provides that the Department may adopt rules. Provides that upon a finding by the Secretary of Financial and Professional Regulation that a provider has violated the provisions or rules, the provider shall be ordered to pay the Department a civil penalty for each violation of the provisions or any rule not to exceed $10,000 for each violation, or if a violation is willful, $20,000 for each violation. Sets forth provisions concerning cease and desist orders, injunctions, investigation and examination, civil actions, violations, and registration. Provides that a violation of the provisions constitutes an unlawful practice in violation of the Consumer Fraud and Deceptive Business Practices Act. Defines terms. Makes a conforming change in the Consumer Fraud and Deceptive Business Practices Act. Effective immediately. LRB103 28770 BMS 55153 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2234 Introduced 2/10/2023, by Sen. Laura Ellman SYNOPSIS AS INTRODUCED: New Act815 ILCS 505/2BBBB new New Act 815 ILCS 505/2BBBB new Creates the Small Business Truth in Lending Act. Sets forth provisions concerning disclosure requirements for sales-based financing, closed-end commercial financing, open-end commercial financing, factoring transactions, renewal financing, and other forms of financing. Provides that all commercial financing shall include a clear and conspicuous notice on how to file a complaint with the Department of Financial and Professional Regulation. Provides that the Department may adopt rules. Provides that upon a finding by the Secretary of Financial and Professional Regulation that a provider has violated the provisions or rules, the provider shall be ordered to pay the Department a civil penalty for each violation of the provisions or any rule not to exceed $10,000 for each violation, or if a violation is willful, $20,000 for each violation. Sets forth provisions concerning cease and desist orders, injunctions, investigation and examination, civil actions, violations, and registration. Provides that a violation of the provisions constitutes an unlawful practice in violation of the Consumer Fraud and Deceptive Business Practices Act. Defines terms. Makes a conforming change in the Consumer Fraud and Deceptive Business Practices Act. Effective immediately. LRB103 28770 BMS 55153 b LRB103 28770 BMS 55153 b A BILL FOR
2+103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2234 Introduced 2/10/2023, by Sen. Laura Ellman SYNOPSIS AS INTRODUCED:
3+New Act815 ILCS 505/2BBBB new New Act 815 ILCS 505/2BBBB new
4+New Act
5+815 ILCS 505/2BBBB new
6+Creates the Small Business Truth in Lending Act. Sets forth provisions concerning disclosure requirements for sales-based financing, closed-end commercial financing, open-end commercial financing, factoring transactions, renewal financing, and other forms of financing. Provides that all commercial financing shall include a clear and conspicuous notice on how to file a complaint with the Department of Financial and Professional Regulation. Provides that the Department may adopt rules. Provides that upon a finding by the Secretary of Financial and Professional Regulation that a provider has violated the provisions or rules, the provider shall be ordered to pay the Department a civil penalty for each violation of the provisions or any rule not to exceed $10,000 for each violation, or if a violation is willful, $20,000 for each violation. Sets forth provisions concerning cease and desist orders, injunctions, investigation and examination, civil actions, violations, and registration. Provides that a violation of the provisions constitutes an unlawful practice in violation of the Consumer Fraud and Deceptive Business Practices Act. Defines terms. Makes a conforming change in the Consumer Fraud and Deceptive Business Practices Act. Effective immediately.
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312 1 AN ACT concerning regulation.
413 2 Be it enacted by the People of the State of Illinois,
514 3 represented in the General Assembly:
615 4 Section 1. Short title. This Act may be cited as the Small
7-5 Business Financing Transparency Act.
8-6 Section 2. Purpose and construction. The purpose of this
9-7 Act is to protect business owners. This Act shall be liberally
10-8 construed to effectuate its purpose.
11-9 Section 5. Definitions. As used in this Act:
12-10 "Applicant" means a person who has submitted an
13-11 application for a registration under this Act.
14-12 "Closed-end financing" means a closed-end extension of
15-13 credit, secured or unsecured, recourse or nonrecourse,
16-14 including equipment financing that does not meet the
17-15 definition of a lease under Section 2A-103 of the Uniform
18-16 Commercial Code, that the recipient does not intend to use for
19-17 personal, family, or household purposes. "Closed-end
20-18 financing" includes financing with an established principal
21-19 amount and duration.
22-20 "Commercial financing database" means a reporting database
23-21 certified by the Department as effective in receiving a report
24-22 of commercial financing made under this Act.
16+5 Business Truth in Lending Act.
17+6 Section 3. Applicability. This Act applies to transactions
18+7 occurring on or after January 1, 2024.
19+8 Section 5. Purpose and construction.
20+9 (a) The purpose of this Act is to protect business owners
21+10 from predatory business loans.
22+11 (b) This Act shall be liberally construed to effectuate
23+12 its purpose.
24+13 Section 10. Definitions. As used in this Act:
25+14 "Commercial financing" means open-end financing,
26+15 closed-end financing, sales-based financing, factoring
27+16 transaction, or another form of financing that the recipient
28+17 does not intend to use the proceeds of primarily for personal,
29+18 family, or household purposes. For purposes of determining
30+19 whether a financing is a commercial financing, the provider
31+20 may rely on any statement of intended purposes or on
32+21 electronic signatures or consents by the recipient. The
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33-1 "Commercial financing database provider" means an entity
34-2 that provides a reporting database certified by the Department
35-3 under this Act.
36-4 "Commercial financing" means open-end financing,
37-5 closed-end financing, sales-based financing, factoring
38-6 transaction, or other form of financing, the proceeds of which
39-7 the recipient does not intend to use primarily for personal,
40-8 family, or household purposes. For purposes of determining
41-9 whether a financing is a commercial financing, the provider
42-10 may rely on any statement of intended purposes by the
43-11 recipient. The statement may be a separate statement signed by
44-12 the recipient; may be contained in the financing application,
45-13 financing agreement, or other document signed or consented to
46-14 by the recipient; or may be provided orally by the recipient so
47-15 long as it is documented in the recipient's application file
48-16 by the provider. Electronic signatures and consents are valid
49-17 for purposes of the foregoing sentence. The provider shall not
50-18 be required to ascertain that the proceeds of a commercial
51-19 financing are used in accordance with the recipient's
52-20 statement of intended purposes.
53-21 "Department" means the Department of Financial and
54-22 Professional Regulation.
55-23 "Division of Financial Institutions" or "Division" means
56-24 the Division of Financial Institutions of the Department of
57-25 Financial and Professional Regulation.
58-26 "Factoring transaction" means an accounts receivable
36+103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2234 Introduced 2/10/2023, by Sen. Laura Ellman SYNOPSIS AS INTRODUCED:
37+New Act815 ILCS 505/2BBBB new New Act 815 ILCS 505/2BBBB new
38+New Act
39+815 ILCS 505/2BBBB new
40+Creates the Small Business Truth in Lending Act. Sets forth provisions concerning disclosure requirements for sales-based financing, closed-end commercial financing, open-end commercial financing, factoring transactions, renewal financing, and other forms of financing. Provides that all commercial financing shall include a clear and conspicuous notice on how to file a complaint with the Department of Financial and Professional Regulation. Provides that the Department may adopt rules. Provides that upon a finding by the Secretary of Financial and Professional Regulation that a provider has violated the provisions or rules, the provider shall be ordered to pay the Department a civil penalty for each violation of the provisions or any rule not to exceed $10,000 for each violation, or if a violation is willful, $20,000 for each violation. Sets forth provisions concerning cease and desist orders, injunctions, investigation and examination, civil actions, violations, and registration. Provides that a violation of the provisions constitutes an unlawful practice in violation of the Consumer Fraud and Deceptive Business Practices Act. Defines terms. Makes a conforming change in the Consumer Fraud and Deceptive Business Practices Act. Effective immediately.
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43+A BILL FOR
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69-1 purchase transaction that includes an agreement to purchase,
70-2 transfer, or sell a legally enforceable claim for payment held
71-3 by a recipient for goods the recipient has supplied or
72-4 services the recipient has rendered that have been ordered but
73-5 for which payment has not yet been made.
74-6 "Finance charge" means the cost of financing as a dollar
75-7 amount. "Finance charge" includes any charge payable directly
76-8 or indirectly by the recipient and imposed directly or
77-9 indirectly by the provider as an incident to or a condition of
78-10 the extension of financing. "Finance charge" includes any
79-11 charges as determined by the Secretary. For the purposes of an
80-12 open-end financing, "finance charge" means the maximum amount
81-13 of credit available to the recipient, in each case, that is
82-14 drawn and held for the duration of the term or draw period. For
83-15 the purposes of a factoring transaction, "finance charge"
84-16 includes the discount taken on the face value of the accounts
85-17 receivable. In addition, the finance charge shall include any
86-18 charges determined by the Secretary.
87-19 "Open-end financing" means an agreement for one or more
88-20 extensions of open-end credit, secured or unsecured, that the
89-21 recipient does not intend to use the proceeds of primarily for
90-22 personal, family, or household purposes. "Open-end financing"
91-23 includes credit extended by a provider under a plan in which:
92-24 (i) the provider reasonably contemplates repeated
93-25 transactions; (ii) the provider may impose a finance charge
94-26 from time to time on an outstanding unpaid balance; and (iii)
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105-1 the amount of credit that may be extended to the recipient
106-2 during the term of the plan is generally made available to the
107-3 extent that any outstanding balance is repaid.
108-4 "Person" means an individual, entity, corporation,
109-5 partnership, limited liability company, joint venture,
110-6 association, joint stock company, trust, or unincorporated
111-7 organization, including, but not limited to, a sole
112-8 proprietorship.
113-9 "Provider" means a person who extends a specific offer of
114-10 commercial financing to a recipient. "Provider", unless
115-11 otherwise exempt, includes a person who solicits and presents
116-12 specific offers of commercial financing on behalf of a third
117-13 party. The mere extension of a specific offer or provision of
118-14 disclosures for a commercial financing, is not sufficient to
119-15 conclude that a provider is originating, making, funding, or
120-16 providing commercial financing. "Provider" does not include:
121-17 (1) a bank, trust company, or industrial loan company,
122-18 or any subsidiary or affiliate thereof, doing business
123-19 under the authority of, or in accordance with, a license,
124-20 certificate or charter issued by the United States, this
125-21 State, or any other state, district, territory, or
126-22 commonwealth of the United States that is authorized to
127-23 transact business in this State;
128-24 (2) a federally chartered savings and loan
129-25 association, federal savings bank, or federal credit
130-26 union, or any subsidiary or affiliate thereof, that is
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69+1 statement may be a separate statement signed by the recipient;
70+2 may be contained in the financing application, financing
71+3 agreement, or other document signed or consented to by the
72+4 recipient; or may be provided orally by the recipient so long
73+5 as it is documented in the recipient's application file by the
74+6 provider. The provider shall not be required to ascertain that
75+7 the proceeds of a commercial financing are used in accordance
76+8 with the recipient's statement of intended purposes.
77+9 "Closed-end financing" means a closed-end extension of
78+10 credit, secured or unsecured, recourse or nonrecourse,
79+11 including equipment financing that does not meet the
80+12 definition of a lease under Section 2A-103 of the Uniform
81+13 Commercial Code, that the recipient does not intend to use the
82+14 proceeds of primarily for personal, family, or household
83+15 purposes. "Closed-end financing" includes financing with an
84+16 established principal amount and duration.
85+17 "Department" means the Department of Financial and
86+18 Professional Regulation.
87+19 "Factoring transaction" means an accounts receivable
88+20 purchase transaction that includes an agreement to purchase,
89+21 transfer, or sell a legally enforceable claim for payment held
90+22 by a recipient for goods the recipient has supplied or
91+23 services the recipient has rendered that have been ordered but
92+24 for which payment has not yet been made.
93+25 "Finance charge" means the cost of financing as a dollar
94+26 amount. "Finance charge" includes any charge payable directly
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141-1 authorized to transact business in this State;
142-2 (3) a savings and loan association, savings bank, or
143-3 credit union, or any subsidiary or affiliate thereof,
144-4 organized under the laws of this State or any other state
145-5 that is authorized to transact business in this State;
146-6 (4) a lender regulated under the federal Farm Credit
147-7 Act; and
148-8 (5) a person acting as a technology services provider
149-9 to an entity described by sub-paragraphs (1), (2), or (3)
150-10 for use as part of that entity's commercial financing
151-11 program, provided the person has no interest, or
152-12 arrangement, or agreement to purchase any interest in the
153-13 commercial financing extended by the entity in connection
154-14 with the program.
155-15 "Recipient" means a person located in the State of
156-16 Illinois who applies for commercial financing and is made a
157-17 specific offer of commercial financing by a provider. For the
158-18 purpose of determining whether a recipient is located in
159-19 Illinois, a provider may rely upon (i) any written
160-20 representation by the recipient as to whether it is located in
161-21 Illinois; or (ii) the business address provided by the
162-22 recipient in the application for commercial financing showing
163-23 that the recipient is located in Illinois. "Recipient"
164-24 includes an authorized representative of a person who applies
165-25 for commercial financing and is made a specific offer of
166-26 commercial financing by a provider. "Recipient" does not
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105+1 or indirectly by the recipient and imposed directly or
106+2 indirectly by the provider as an incident to or a condition of
107+3 the extension of financing. "Finance charge" includes all
108+4 charges that would be included under 12 CFR 1026.4 as if the
109+5 transaction were subject to 12 CFR 1026.4. "Finance charge"
110+6 includes any charges as determined by the Secretary. For the
111+7 purposes of an open-end financing, "finance charge" means the
112+8 maximum amount of credit available to the recipient, in each
113+9 case, that is drawn and held for the duration of the term or
114+10 draw period. For the purposes of a factoring transaction,
115+11 "finance charge" includes the discount taken on the face value
116+12 of the accounts receivable.
117+13 "Open-end financing" means an agreement for one or more
118+14 extensions of open-end credit, secured or unsecured, that the
119+15 recipient does not intend to use the proceeds of primarily for
120+16 personal, family, or household purposes. "Open-end financing"
121+17 includes credit extended by a provider under a plan in which:
122+18 (i) the provider reasonably contemplates repeated
123+19 transactions; (ii) the provider may impose a finance charge
124+20 from time to time on an outstanding unpaid balance; and (iii)
125+21 the amount of credit that may be extended to the recipient
126+22 during the term of the plan is generally made available to the
127+23 extent that any outstanding balance is repaid.
128+24 "Person" means an individual, entity, corporation,
129+25 partnership, limited liability company, joint venture,
130+26 association, joint stock company, trust, or unincorporated
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177-1 include a person acting as a broker is not a recipient in a
178-2 transaction they broker.
179-3 "Sales-based financing" means a transaction that is repaid
180-4 by the recipient to the provider, over time, as a percentage of
181-5 sales or revenue, in which the payment amount may increase or
182-6 decrease according to the volume of sales made or revenue
183-7 received by the recipient or a transaction that includes a
184-8 true-up mechanism where the financing is repaid as a fixed
185-9 payment but provides for a reconciliation process that adjusts
186-10 the payment to an amount that is a percentage of sales or
187-11 revenue.
188-12 "Secretary" means the Secretary of Financial and
189-13 Professional Regulation or a person authorized by the
190-14 Secretary to perform the Secretary's responsibilities under
191-15 this Act.
192-16 "Specific offer" means the specific terms of commercial
193-17 financing, including price or amount, that is quoted to a
194-18 recipient based on information obtained from or about the
195-19 recipient that, if accepted by a recipient, shall be binding
196-20 on the provider, as applicable, subject to any specific
197-21 requirements stated in the specific terms.
198-22 "True-up mechanism" means, with respect to sales-based
199-23 financing, a contractual arrangement with all the following
200-24 elements:
201-25 (1) The financer receives periodic payments based upon
202-26 a pre-set amount stated in the contract.
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141+1 organization including, but not limited to, a sole
142+2 proprietorship.
143+3 "Provider" means a person who extends a specific offer of
144+4 commercial financing to a recipient. Unless otherwise exempt,
145+5 "provider" includes a person who solicits and presents
146+6 specific offers of commercial financing on behalf of a third
147+7 party. For purposes of determining whether a financing is a
148+8 commercial financing, the mere extension of a specific offer
149+9 or provision of disclosures for a commercial financing is not
150+10 sufficient to conclude that a provider is originating, making,
151+11 funding, or providing commercial financing.
152+12 "Recipient" means a person who applies for commercial
153+13 financing and is made a specific offer of commercial financing
154+14 by a provider or an authorized representative of such person.
155+15 "Recipient" does not include a person acting as a broker in a
156+16 transaction they broker.
157+17 "Sales-based financing" means a transaction that is repaid
158+18 by the recipient to the provider, over time, as a percentage of
159+19 sales or revenue, in which the payment amount may increase or
160+20 decrease according to the volume of sales made or revenue
161+21 received by the recipient or a transaction that includes a
162+22 true-up mechanism where the financing is repaid as a fixed
163+23 payment but provides for a reconciliation process that adjusts
164+24 the payment to an amount that is a percentage of sales or
165+25 revenue.
166+26 "Secretary" means the Secretary of Financial and
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213-1 (2) The contract allows the recipient to request, or
214-2 the financer to initiate, adjustments to the payment
215-3 amount, credits to the recipient, or charges to the
216-4 recipient after execution of the contract, so that the
217-5 total amount paid by the recipient more closely reflects a
218-6 split rate listed in the contract.
219-7 Section 10. Applicability.
220-8 (a) Except as otherwise provided in this Section, this Act
221-9 applies to any person that offers or provides commercial
222-10 financing in Illinois or is otherwise a provider.
223-11 (b) The provisions of this Act apply to any person that
224-12 seeks to evade its applicability by any device, subterfuge, or
225-13 pretense whatsoever.
226-14 (c) The provisions of this Act apply to any person that
227-15 aids or facilitates a violation of this Act.
228-16 (d) The provisions of this Act do not apply to:
229-17 (1) a bank, trust company, or industrial loan company
230-18 doing business under the authority of, or in accordance
231-19 with, a license, certificate or charter issued by the
232-20 United States, this State, or any other state, district,
233-21 territory, or commonwealth of the United States that is
234-22 authorized to transact business in this State;
235-23 (2) a federally chartered savings and loan
236-24 association, federal savings bank, or federal credit union
237-25 that is authorized to transact business in this State;
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177+1 Professional Regulation or a person authorized by the
178+2 Secretary.
179+3 "Specific offer" means the specific terms of commercial
180+4 financing, including price or amount, that is quoted to a
181+5 recipient based on information obtained from or about the
182+6 recipient, that, if accepted by a recipient, shall be binding
183+7 on the provider, as applicable, subject to any specific
184+8 requirements stated in such terms.
185+9 Section 15. Exemptions. This Act does not apply to, and
186+10 shall not place any additional requirements or obligations
187+11 upon, any of the following:
188+12 (1) A bank, trust company, or industrial loan company
189+13 doing business under the authority of, or in accordance
190+14 with, a license, certificate, or charter issued by the
191+15 United States, this State, or any other state, district,
192+16 territory, or commonwealth of the United States that is
193+17 authorized to transact business in this State.
194+18 (2) A federally chartered savings and loan
195+19 association, federal savings bank, or federal credit union
196+20 that is authorized to transact business in this State.
197+21 (3) A savings and loan association, savings bank, or
198+22 credit union organized under the laws of this State or any
199+23 other state that is authorized to transact business in
200+24 this State.
201+25 (4) A person acting in its capacity as a technology
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248-1 (3) a savings and loan association, savings bank, or
249-2 credit union organized under the laws of this State or any
250-3 other state that is authorized to transact business in
251-4 this State;
252-5 (4) a lender regulated under the federal Farm Credit
253-6 Act; and
254-7 (5) a person acting in the person's capacity as a
255-8 technology services provider to an entity described by
256-9 sub-paragraphs (1), (2), or (3) for use as part of that
257-10 entity's commercial financing program, provided the person
258-11 has no interest, or arrangement, or agreement to purchase
259-12 any interest in the commercial financing extended by the
260-13 entity in connection with the program.
261-14 Section 15. Division of Financial Institutions. This Act
262-15 shall be administered by the Division on behalf of the
263-16 Secretary.
264-17 Section 20. Registration requirement.
265-18 (a) It is unlawful for a person to engage in the conduct
266-19 regulated by this Act unless the person: (i) registers with
267-20 the Secretary in accordance with this Section; and (ii)
268-21 maintains a valid registration. An officer or employee of a
269-22 person required to register under this Section is not required
270-23 to register if the person for whom the individual is an officer
271-24 or employee is registered.
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212+1 services provider, such as licensing software and
213+2 providing support services, to an entity exempt under this
214+3 Section for use as part of the exempt entity's commercial
215+4 financing program, if such person has no interest,
216+5 arrangement, or agreement to purchase any interest in the
217+6 commercial financing extended by the exempt entity in
218+7 connection with such program.
219+8 (5) A lender regulated under the federal Farm Credit
220+9 Act, 12 U.S.C. 2001 et seq.
221+10 (6) A commercial financing transaction secured by real
222+11 property.
223+12 (7) A lease as defined in Section 2A-103 of the
224+13 Uniform Commercial Code.
225+14 (8) Any person or provider who makes no more than 5
226+15 commercial financing transactions in this State in a
227+16 12-month period.
228+17 (9) An individual commercial financing transaction in
229+18 an amount over $2,500,000.
230+19 (10) A commercial financing transaction in which the
231+20 recipient is a vehicle dealer subject to Section 5-101 or
232+21 5-102 of the Illinois Vehicle Code, an affiliate of such a
233+22 dealer, a rental vehicle company as defined in Section 10
234+23 of the Renter's Financial Responsibility and Protection
235+24 Act, or an affiliate of such a company pursuant to a
236+25 commercial financing agreement or commercial open-end
237+26 credit plan of at least $50,000, including any commercial
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282-1 (b) Application for registration and renewal of
283-2 registration shall be made in accordance with this Act and
284-3 with the requirements of the multistate licensing system, if
285-4 required by the Secretary. The application shall be in
286-5 writing, under oath, and on a form obtained from and
287-6 prescribed by the Secretary. The Secretary may change or
288-7 update the form to carry out the purposes of this Act. The
289-8 Secretary may require part or all of the application to be
290-9 submitted electronically, with attestation, to the multistate
291-10 licensing system.
292-11 (c) Registrants shall apply to renew their registration
293-12 every calendar year. Registrants may submit properly completed
294-13 renewal application forms and filing fees 60 days before the
295-14 registration expiration date, and the same shall be received
296-15 by the Secretary at least 30 days before the registration
297-16 expiration date. Absent a written extension from the
298-17 Department, a registration shall expire on December 31 of each
299-18 year if a registrant fails to timely submit a properly
300-19 completed renewal application and fees.
301-20 (d) Upon receipt of the registration, a registrant is
302-21 authorized to engage in conduct regulated by this Act. The
303-22 registration shall remain in full force and effect until it
304-23 expires, is withdrawn by the registrant, or is revoked or
305-24 suspended as provided in this Act.
306-25 (e) To register under this Section, an applicant shall:
307-26 (1) pay a registration fee of $2,500 to the
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248+1 loan made pursuant to such a commercial financing
249+2 transaction.
250+3 Section 20. Sales-based financing disclosure requirements.
251+4 A provider subject to this Act shall provide the following
252+5 disclosures to a recipient, according to formatting prescribed
253+6 by the Secretary, if any, at the time of extending a specific
254+7 offer of sales-based financing:
255+8 (1) The total amount of the commercial financing, and,
256+9 if different from the financing amount, the disbursement
257+10 amount after any amount deducted or withheld at
258+11 disbursement.
259+12 (2) The finance charge.
260+13 (3) The estimated annual percentage rate, using the
261+14 words annual percentage rate or the abbreviation "APR",
262+15 expressed as a yearly rate, inclusive of any fees and
263+16 finance charges, and calculated in accordance with the
264+17 federal Truth in Lending Act, Regulation Z, 12 CFR
265+18 1026.22, based on the estimated term of repayment and the
266+19 projected periodic payment amounts, regardless of whether
267+20 such act or such rule would require such a calculation.
268+21 The estimated term of repayment and the projected periodic
269+22 payment amounts shall be calculated based on the
270+23 projection of the recipient's sales, which may be referred
271+24 to as the projected sales volume. The projected sales
272+25 volume may be calculated using the historical method or
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318-1 Department; and
319-2 (2) submit a registration statement containing the
320-3 information described in subsection (g).
321-4 (f) To renew a registration under this Section, a person
322-5 shall:
323-6 (1) pay the annual fee of $2,500 to the Department;
324-7 and
325-8 (2) submit a renewal statement containing the
326-9 information described in subsection (g).
327-10 (g) A registration or renewal statement must be submitted
328-11 to the Secretary or to a multistate licensing system as
329-12 approved by the Secretary. The registration or renewal
330-13 statement shall include:
331-14 (1) the name of the person;
332-15 (2) the name in which the business will be transacted
333-16 if different from that required in paragraph (1), which
334-17 must be properly registered as an assumed corporate name
335-18 under the Business Corporation Act of 1983, an assumed
336-19 limited liability company name under the Limited Liability
337-20 Company Act, or an assumed business name under the Assumed
338-21 Business Name Act;
339-22 (3) the address of the person's principal business
340-23 office;
341-24 (4) the address of each office in this State at which
342-25 the person engages in commercial financing transactions;
343-26 (5) if the person engages in commercial financing
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283+1 the opt-in method. The provider shall provide notice to
284+2 the Secretary on which method the provider intends to use
285+3 across all instances of sales-based financing offered in
286+4 calculating the estimated annual percentage rate pursuant
287+5 to this Section, according to the following:
288+6 (i) A provider using the historical method shall
289+7 use an average historical volume of sales or revenue
290+8 by which the financing's payment amounts are based and
291+9 the estimated annual percentage rate is calculated.
292+10 The provider shall fix the historical time period used
293+11 to calculate the average historical volume and use
294+12 such period for all disclosure purposes for all
295+13 sales-based financing products offered. The fixed
296+14 historical time period shall either be the preceding
297+15 time period from the specific offer or, alternatively,
298+16 the provider may use average sales for the same number
299+17 of months with the highest sales volume within the
300+18 past 12 months. The fixed historical time period shall
301+19 be no less than one month and shall not exceed 12
302+20 months.
303+21 (ii) A provider using the opt-in method shall
304+22 determine the estimated annual percentage rate, the
305+23 estimated term, and the projected payments, using a
306+24 projected sales volume that the provider elects for
307+25 each disclosure, if they participate in a review
308+26 process prescribed by the Secretary. A provider shall,
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354-1 transactions in this State but does not maintain an office
355-2 in this State, a brief description of the manner in which
356-3 the business is conducted;
357-4 (6) if the person conducts business through an agent
358-5 located in this State, the name and address in this State
359-6 of the person's agent properly registered with the
360-7 Secretary of State;
361-8 (7) for a registration application, whether the
362-9 person, an officer, director, manager, operator, or
363-10 principal of the person, or an employee of the person
364-11 engaged in the business of commercial financing has been
365-12 convicted of a crime involving an act of fraud,
366-13 dishonesty, breach of trust, or money laundering; if the
367-14 applicant answers yes to this paragraph, then the
368-15 applicant shall report the names, titles or relationship
369-16 to the applicant or registrant, and the nature of the
370-17 covered crime;
371-18 (8) for a renewal application, whether, in the past
372-19 year, the person, an officer, director, manager, operator,
373-20 or principal of the person, or an employee of the person
374-21 engaged in the business of commercial financing has been
375-22 convicted of a crime involving an act of fraud,
376-23 dishonesty, breach of trust, or money laundering; if the
377-24 registrant answers yes to this paragraph, then the
378-25 registrant shall report the names, titles or relationship
379-26 to the applicant or registrant, and the nature of the
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319+1 on an annual basis, report data to the Secretary of
320+2 estimated annual percentage rates disclosed to the
321+3 recipient and actual retrospective annual percentage
322+4 rates of completed transactions. The report shall
323+5 contain such information as the Department may adopt
324+6 by rule as necessary or appropriate for the purpose of
325+7 making a determination of whether the deviation
326+8 between the estimated annual percentage rate and
327+9 actual retrospective annual percentage rates of
328+10 completed transactions was reasonable. The Secretary
329+11 shall establish the method of reporting and may, upon
330+12 a finding that the use of projected sales volume by the
331+13 provider has resulted in an unacceptable deviation
332+14 between estimated and actual annual percentage rate,
333+15 require the provider to use the historical method. The
334+16 Secretary may consider unusual and extraordinary
335+17 circumstances impacting the provider's deviation
336+18 between estimated and actual annual percentage rate in
337+19 the determination of such finding.
338+20 (4) The total repayment amount, which is the
339+21 disbursement amount plus the finance charge.
340+22 (5) The estimated term is the period of time required
341+23 for the periodic payments, based on the projected sales
342+24 volume, to equal the total amount required to be repaid.
343+25 (6) The payment amounts, based on the projected sales
344+26 volume:
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390-1 covered crime;
391-2 (9) a statement of the person's commitment to abide by
392-3 the requirements of registering persons under this Act,
393-4 including providing the required financing disclosures in
394-5 commercial financing offers as required under Sections 45,
395-6 50, 55, 60, 65, and 70 of this Act;
396-7 (10) a copy of the commercial financing disclosure
397-8 form to be used for each type of commercial financing that
398-9 the person offers or intends to offer, and a description
399-10 of when the disclosure will be provided to the recipient;
400-11 (11) information on financing offers presented by
401-12 registrant in Illinois in the previous calendar year,
402-13 including the number of financing offers made, the number
403-14 of financing offers made in which the disclosures as
404-15 required by Sections 45, 50, 55, 60, 65, and 70 were
405-16 offered, and the number of financing offers accepted by
406-17 recipients; and
407-18 (12) any other information deemed necessary by the
408-19 Secretary.
409-20 (h) The Secretary may refuse to accept or renew a
410-21 registration if:
411-22 (1) the Secretary determines that the person has not
412-23 complied with the provisions of this Act, its implementing
413-24 rules, or other laws that apply to the person; or
414-25 (2) the Secretary determines that there is substantial
415-26 continuity between the person and any violator of this
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355+1 (i) for payment amounts that are fixed, the
356+2 payment amounts and frequency (e.g., daily, weekly,
357+3 monthly), and, if the payment frequency is other than
358+4 monthly, the amount of the average projected payments
359+5 per month; or
360+6 (ii) for payment amounts that are variable, a
361+7 payment schedule or a description of the method used
362+8 to calculate the amounts and frequency of payments and
363+9 the amount of the average projected payments per
364+10 month.
365+11 (7) A description of all other potential fees and
366+12 charges not included in the finance charge, including, but
367+13 not limited to, draw fees, late payment fees, and returned
368+14 payment fees.
369+15 (8) If the recipient elects to pay off or refinance
370+16 the commercial financing before full repayment, the
371+17 provider must disclose:
372+18 (i) whether the recipient would be required to pay
373+19 any finance charges other than interest accrued since
374+20 their last payment; if so, disclosure of the
375+21 percentage of any unpaid portion of the finance charge
376+22 and maximum dollar amount the recipient could be
377+23 required to pay; and
378+24 (ii) whether the recipient would be required to
379+25 pay any additional fees not already included in the
380+26 finance charge.
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426-1 Act, its implementing rules, or other laws that apply to
427-2 the person or related violator.
428-3 (i) The Department shall adopt and amend such rules as may
429-4 be required for the proper administration and enforcement of
430-5 this Section, including rules providing for the form, content,
431-6 and filing of a registration and renewal statement.
432-7 Section 25. Additional registration information.
433-8 (a) In order to fulfill the purposes of this Act, the
434-9 Secretary may establish relationships or contracts with a
435-10 multistate licensing system or other persons to collect and
436-11 maintain records and process fees related to registrants or
437-12 other persons subject to this Act.
438-13 (b) For the purposes of this Section, and to reduce the
439-14 points of contact that the Secretary may have to maintain, the
440-15 Secretary may use a multistate licensing system as a
441-16 channeling agent for requesting and distributing information
442-17 to and from any source.
443-18 (c) Each registrant shall furnish to the Secretary or
444-19 multistate licensing system an updated business address within
445-20 10 days after any change of business address.
446-21 Section 30. Registration expiration. No activity regulated
447-22 by this Act shall be conducted by a registrant whose
448-23 registration has expired. The Secretary may, within the
449-24 Secretary's discretion, reinstate an expired registration upon
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391+1 (9) A description of collateral requirements or
392+2 security interests, if any.
393+3 Section 25. Closed-end commercial financing disclosure
394+4 requirements. A provider subject to this Act shall provide the
395+5 following disclosures to a recipient, according to formatting
396+6 prescribed by the Secretary, if any, at the time of extending a
397+7 specific offer for closed-end financing:
398+8 (1) The total amount of the commercial financing, and,
399+9 if different from the financing amount, the disbursement
400+10 amount after any amount deducted or withheld at
401+11 disbursement.
402+12 (2) The finance charge.
403+13 (3) The annual percentage rate, using only the words
404+14 annual percentage rate or the abbreviation "APR",
405+15 expressed as a yearly rate, inclusive of any fees and
406+16 finance charges that cannot be avoided by a recipient, and
407+17 calculated in accordance with the federal Truth in Lending
408+18 Act, Regulation Z, 12 CFR 1026.22, regardless of whether
409+19 such act or such rule would require such a calculation.
410+20 (4) The total repayment amount, which is the
411+21 disbursement amount plus the finance charge.
412+22 (5) The term of the financing.
413+23 (6) The payment amounts:
414+24 (i) for payment amounts that are fixed, the
415+25 payment amounts and frequency (e.g., daily, weekly,
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460-1 payment of the renewal fee, payment of a reactivation fee
461-2 equal to 5 times the renewal fee, submission of a completed
462-3 renewal application, and an affidavit of good cause for late
463-4 renewal.
464-5 Section 35. Functions; powers; duties. The functions,
465-6 powers, and duties of the Secretary include, but are not
466-7 limited to, the following:
467-8 (1) to issue or refuse to issue any registration or
468-9 renewal;
469-10 (2) to revoke or suspend for cause any registration
470-11 issued under this Act;
471-12 (3) to keep records of all registrations issued under
472-13 this Act;
473-14 (4) to receive, consider, investigate, and act upon
474-15 complaints made by any person in connection with any
475-16 registration in this State or unregistered commercial
476-17 financing activity of any person;
477-18 (5) to adopt rules necessary and proper for the
478-19 administration of this Act, to protect consumers and
479-20 financing recipients, to promote fair competition, and as
480-21 otherwise authorized by this Act;
481-22 (6) to subpoena documents and witnesses and compel
482-23 their attendance and production, to administer oaths, and
483-24 to require the production of any books, papers, or other
484-25 materials relevant to any inquiry authorized by this Act
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426+1 monthly), and, if the term is longer than one month,
427+2 the average monthly payment amount; or
428+3 (ii) for payment amounts that are variable, a full
429+4 payment schedule or a description of the method used
430+5 to calculate the amounts and frequency of payments,
431+6 and, if the term is longer than one month, the
432+7 estimated average monthly payment amount.
433+8 (7) A description of all other potential fees and
434+9 charges that can be avoided by the recipient, including,
435+10 but not limited to, late payment fees and returned payment
436+11 fees.
437+12 (8) If the recipient elects to pay off or refinance
438+13 the commercial financing before full repayment, the
439+14 provider must disclose:
440+15 (i) whether the recipient would be required to pay
441+16 any finance charges other than interest accrued since
442+17 their last payment; if so, disclosure of the
443+18 percentage of any unpaid portion of the finance charge
444+19 and maximum dollar amount the recipient could be
445+20 required to pay; and
446+21 (ii) whether the recipient would be required to
447+22 pay any additional fees not already included in the
448+23 finance charge.
449+24 (9) A description of collateral requirements or
450+25 security interests, if any.
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495-1 or its implementing rules;
496-2 (7) to issue orders against any person if the
497-3 Secretary has reasonable cause to believe that an unsafe,
498-4 unsound, or unlawful practice has occurred, is occurring,
499-5 or is about to occur; if any person is violating, or is
500-6 about to violate any law, rule, or written agreement with
501-7 the Secretary; or for the purpose of administering the
502-8 provisions of this Act and any rule adopted in accordance
503-9 with this Act;
504-10 (8) to address any inquiries to any registrant, or the
505-11 owners, officers, or directors thereof, in relation to its
506-12 activities and conditions, or any other matter connected
507-13 with its affairs, and any registrant or person so
508-14 addressed shall promptly reply in writing to those
509-15 inquiries. The Secretary may also require reports from any
510-16 registrant at any time the Secretary deems desirable;
511-17 (9) to enforce provisions of this Act and its
512-18 implementing rules;
513-19 (10) to levy fees, including, but not limited to,
514-20 assessments, registration fees, civil penalties, and
515-21 charges for services performed in administering this Act.
516-22 The Secretary may establish and modify fees by rule. The
517-23 aggregate of all fees collected by the Secretary under
518-24 this Act shall be paid promptly after receipt into the
519-25 Financial Institution Fund. The amounts deposited into the
520-26 Financial Institution Fund shall be used for the ordinary
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461+1 Section 30. Open-end commercial financing disclosure
462+2 requirements. A provider subject to this Act shall provide the
463+3 following disclosures to a recipient, according to formatting
464+4 prescribed by the Secretary, if any, at the time of extending a
465+5 specific offer for open-end financing:
466+6 (1) The maximum amount of credit available to the
467+7 recipient (e.g., the credit line amount), and the amount
468+8 scheduled to be drawn by the recipient at the time the
469+9 offer is extended, if any, less any amount deducted or
470+10 withheld at disbursement.
471+11 (2) The finance charge.
472+12 (3) The annual percentage rate, using only the words
473+13 annual percentage rate or the abbreviation "APR",
474+14 expressed as a nominal yearly rate, inclusive of any fees
475+15 and finance charges that cannot be avoided by a recipient,
476+16 and calculated in accordance with the federal Truth in
477+17 Lending Act, Regulation Z, 12 CFR 1026.22, and based on
478+18 the maximum amount of credit available to the recipient
479+19 and the term resulting from making the minimum required
480+20 payments term as disclosed, regardless of whether such act
481+21 or such rule would require such a calculation.
482+22 (4) The total repayment amount, which is the draw
483+23 amount, less any fees deducted or withheld at
484+24 disbursement, plus the finance charge. The total repayment
485+25 amount shall assume a draw amount equal to the maximum
486+26 amount of credit available to the recipient if drawn and
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531-1 and contingent expenses of the Department. Nothing in this
532-2 Act prevents paying expenses including salaries,
533-3 retirement, social security, and State-paid insurance of
534-4 State employees, or any other expenses incurred under this
535-5 Act by appropriation from the General Revenue Fund or any
536-6 other fund;
537-7 (11) to issue refunds to registrants of any
538-8 overpayment for good cause shown;
539-9 (12) to appoint experts and special assistants as
540-10 needed to effectively and efficiently administer this Act;
541-11 (13) to conduct hearings for the purpose of
542-12 suspensions, denials, or revocations of registrations,
543-13 fining, or other discipline of registrants or unregistered
544-14 persons or entities;
545-15 (14) to exercise visitorial power over a registrant:
546-16 (A) if the Secretary has reasonable cause to believe that
547-17 an unsafe, unsound, or unlawful practice has occurred, is
548-18 occurring, or is about to occur; or (B) if a person is
549-19 violating or is about to violate any law, rule, or written
550-20 agreement with the Secretary; and
551-21 (15) to enter into cooperative agreements with state
552-22 regulatory authorities of other states to provide for
553-23 examination of corporate offices or branches of those
554-24 states, participate in joint examinations with other
555-25 regulators, and to accept reports of the examinations: (A)
556-26 if the Secretary has reasonable cause to believe that an
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497+1 held for the duration of the term or draw period.
498+2 (5) The term of the plan, if applicable, or the period
499+3 over which a draw is amortized.
500+4 (6) The payment frequency and amounts, based on the
501+5 assumptions used in the calculation of the annual
502+6 percentage rate, including a description of payment amount
503+7 requirements such as a minimum payment amount, and if the
504+8 payment frequency is other than monthly, the amount of the
505+9 average projected payments per month. For payment amounts
506+10 that are variable, the provider should include a payment
507+11 schedule or a description of the method used to calculate
508+12 the amounts and frequency of payments and the estimated
509+13 average monthly payment amount.
510+14 (7) A description of all other potential fees and
511+15 charges that can be avoided by the recipient, including,
512+16 but not limited to, draw fees, late payment fees, and
513+17 returned payment fees.
514+18 (8) Were the recipient to elect to pay off or
515+19 refinance the commercial financing before full repayment,
516+20 the provider must disclose:
517+21 (i) whether the recipient would be required to pay
518+22 any finance charges other than interest accrued since
519+23 their last payment; if so, disclosure of the
520+24 percentage of any unpaid portion of the finance charge
521+25 and maximum dollar amount the recipient could be
522+26 required to pay; and
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567-1 unsafe, unsound, or unlawful practice has occurred, is
568-2 occurring, or is about to occur; or (B) if a person is
569-3 violating or is about to violate any law, rule, or written
570-4 agreement with the Secretary;
571-5 (16) to impose civil penalties of up to $200 per day
572-6 against a registrant for failing to respond to a
573-7 regulatory request or reporting requirement; and
574-8 (17) to enter into agreements in connection with a
575-9 multistate licensing system.
576-10 Section 40. Subpoena power of the Secretary.
577-11 (a) The Secretary may issue and serve subpoenas and
578-12 subpoenas duces tecum to compel the attendance of witnesses
579-13 and the production of all books, accounts, records, and other
580-14 documents and materials relevant to an investigation. The
581-15 Secretary, or the Secretary's duly authorized representative,
582-16 may administer oaths and affirmations to any person.
583-17 (b) If a person does not comply with the Secretary's
584-18 subpoena or subpoena duces tecum, the Secretary may, through
585-19 the Attorney General, petition the circuit court of the county
586-20 in which the subpoenaed person resides or has its principal
587-21 place of business for an order requiring the subpoenaed person
588-22 to testify and to comply with the subpoena duces tecum. The
589-23 court may grant injunctive relief restraining the person from
590-24 engaging in activity regulated by this Act. The court may
591-25 grant other relief, including, but not limited to, the
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533+1 (ii) whether the recipient would be required to
534+2 pay any additional fees not already included in the
535+3 finance charge.
536+4 (9) A description of collateral requirements or
537+5 security interests, if any.
538+6 Section 35. Factoring transaction disclosure requirements.
539+7 A provider subject to this Act shall provide the following
540+8 disclosures to a recipient, according to formatting prescribed
541+9 by the Secretary, if any, at the time of extending a specific
542+10 offer for a factoring transaction:
543+11 (1) The amount of the receivables purchase price paid
544+12 to the recipient, and, if different from the purchase
545+13 price, the disbursement amount after any amount deducted
546+14 or withheld at disbursement.
547+15 (2) The finance charge.
548+16 (3) The estimated annual percentage rate, using that
549+17 term, calculated according to the federal Truth in Lending
550+18 Act, Regulation Z, 12 CFR 1026 Appendix J, as a "single
551+19 advance, single payment transaction", regardless of
552+20 whether such act or such rule would require such a
553+21 calculation. To calculate the estimated annual percentage
554+22 rate, the purchase amount is considered the financing
555+23 amount, the purchase amount minus the finance charge is
556+24 considered the payment amount, and the term is established
557+25 by the payment due date of the receivables. As an
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602-1 restraint, by injunction or appointment of a receiver, of any
603-2 transfer, pledge, assignment, or other disposition of the
604-3 person's assets, concealment, destruction, or other
605-4 disposition of books, accounts, records, or other documents
606-5 and materials, as the court deems appropriate, until the
607-6 person has fully complied with the subpoena or subpoena duces
608-7 tecum and the Secretary has completed an investigation.
609-8 (c) If it appears to the Secretary that the compliance
610-9 with a subpoena or subpoena duces tecum issued or caused to be
611-10 issued by the Secretary under this Section is essential to an
612-11 investigation, the Secretary, in addition to the other
613-12 remedies provided for in this Act, may, through the Attorney
614-13 General, apply for relief to the circuit court of the county in
615-14 which the subpoenaed person resides or has its principal place
616-15 of business. The court shall thereupon direct the issuance of
617-16 an order against the subpoenaed person requiring sufficient
618-17 bond conditioned on compliance with the subpoena or subpoena
619-18 duces tecum. The court shall cause to be endorsed on the order
620-19 a suitable amount of bond or payment pursuant to which the
621-20 person named be freed, having a due regard to the nature of the
622-21 case.
623-22 (d) In addition, the Secretary may, through the Attorney
624-23 General, seek a writ of attachment or an equivalent order from
625-24 the circuit court having jurisdiction over the person who has
626-25 refused to obey a subpoena, who has refused to give testimony,
627-26 or who has refused to produce the matters described in the
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568+1 alternate method of establishing the term, the provider
569+2 may estimate the term for a factoring transaction as the
570+3 average payment period based on its historical data over a
571+4 period not to exceed the previous 12 months, concerning
572+5 payment invoices paid by the party or parties owing the
573+6 accounts receivable in question.
574+7 (4) The total payment amount, which is the purchase
575+8 amount plus the finance charge.
576+9 (5) A description of all other potential fees and
577+10 charges that can be avoided by the recipient.
578+11 (6) A description of the receivables purchased and any
579+12 additional collateral requirements or security interests.
580+13 Section 40. Other forms of financing disclosure
581+14 requirements. The Secretary may require disclosure by a
582+15 provider extending a specific offer of commercial financing
583+16 which is not an open-end financing, closed-end financing,
584+17 sales-based financing, or factoring transaction but otherwise
585+18 meets the definition of commercial financing. Subject to such
586+19 rules by the Secretary, a provider subject to this Act shall
587+20 provide the following disclosures to a recipient, according to
588+21 formatting prescribed by the Secretary, if any, at the time of
589+22 extending a specific offer of other forms of financing:
590+23 (1) The total amount of the commercial financing, and,
591+24 if different from the financing amount, the disbursement
592+25 amount after any fees deducted or withheld at
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638-1 subpoena duces tecum.
639-2 Section 45. Sales-based financing disclosure requirements.
640-3 A provider subject to this Act shall provide the following
641-4 disclosures to a recipient, in a manner prescribed by the
642-5 Secretary, if any, at the time of extending a specific offer of
643-6 sales-based financing:
644-7 (1) The total amount of the commercial financing, and,
645-8 if different from the financing amount, the disbursement
646-9 amount after any amount deducted or withheld at
647-10 disbursement.
648-11 (2) The finance charge.
649-12 (3) The estimated annual percentage rate, using the
650-13 words annual percentage rate or the abbreviation
651-14 "Estimated APR", expressed as a yearly rate, inclusive of
652-15 any fees and finance charges, based on the estimated term
653-16 of repayment and the projected periodic payment amounts.
654-17 The estimated term of repayment and the projected periodic
655-18 payment amounts shall be calculated based on the
656-19 projection of the recipient's sales, which may be referred
657-20 to as the projected sales volume. The projected sales
658-21 volume may be calculated using the historical method or
659-22 the underwriting method. The provider shall provide notice
660-23 to the Secretary on which method the provider intends to
661-24 use across all instances of sales-based financing offered
662-25 in calculating the estimated annual percentage rate under
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603+1 disbursement.
604+2 (2) The finance charge.
605+3 (3) The annual percentage rate, using only the words
606+4 annual percentage rate or the abbreviation "APR",
607+5 expressed as a yearly rate, inclusive of any fees and
608+6 finance charges, and calculated in accordance with the
609+7 relevant sections of the federal Truth in Lending Act,
610+8 Regulation Z, 12 CFR 1026.22, or this Act, regardless of
611+9 whether such act or such rule would require such a
612+10 calculation.
613+11 (4) The total repayment amount which is the
614+12 disbursement amount plus the finance charge.
615+13 (5) The term of the financing.
616+14 (6) The payment amounts:
617+15 (i) for payment amounts that are fixed, the
618+16 payment amounts and frequency (e.g., daily, weekly,
619+17 monthly), and the average monthly payment amount; or
620+18 (ii) for payment amounts that are variable, a
621+19 payment schedule or a description of the method used
622+20 to calculate the amounts and frequency of payments,
623+21 and the estimated average monthly payment amount.
624+22 (7) A description of all other potential fees and
625+23 charges that can be avoided by the recipient, including,
626+24 but not limited to, late payment fees and returned payment
627+25 fees.
628+26 (8) If the recipient elects to pay off or refinance
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673-1 this Section, according to the following:
674-2 (A) A provider using the historical method shall
675-3 use an average historical volume of sales or revenue
676-4 by which the financing's payment amounts are based and
677-5 the estimated annual percentage rate is calculated.
678-6 The provider shall fix the historical time period used
679-7 to calculate the average historical volume and use the
680-8 period for all disclosure purposes for all sales-based
681-9 financing products offered. The fixed historical time
682-10 period shall either be the preceding time period from
683-11 the specific offer or, alternatively, the provider may
684-12 use average sales for the same number of months with
685-13 the highest sales volume within the previous 12
686-14 months. The fixed historical time period shall be no
687-15 less than one month and shall not exceed 12 months.
688-16 (B) A provider using the underwriting method shall
689-17 determine the estimated annual percentage rate, the
690-18 estimated term, and the projected payments, using a
691-19 projected sales volume that the provider elects for
692-20 each disclosure, if they participate in a review
693-21 process prescribed by the Secretary. A provider shall,
694-22 on an annual basis, report data to the Secretary of
695-23 estimated annual percentage rates disclosed to the
696-24 recipient and actual retrospective annual percentage
697-25 rates of completed transactions. The report shall
698-26 contain the information as the Department may adopt by
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639+1 the commercial financing before full repayment, the
640+2 provider must disclose:
641+3 (i) whether the recipient would be required to pay
642+4 any finance charges other than interest accrued since
643+5 their last payment; if so, disclosure of the
644+6 percentage of any unpaid portion of the finance charge
645+7 and maximum dollar amount the recipient could be
646+8 required to pay; and
647+9 (ii) whether the recipient would be required to
648+10 pay any additional fees not already included in the
649+11 finance charge.
650+12 (9) A description of collateral requirements or
651+13 security interests, if any.
652+14 Section 45. Complaint disclosure. All commercial financing
653+15 shall include a clear and conspicuous notice on how to file a
654+16 complaint with the Department.
655+17 Section 50. Disclosure requirements for renewal financing.
656+18 If, as a condition of obtaining the commercial financing, the
657+19 provider requires the recipient to pay off the balance of an
658+20 existing commercial financing from the same provider, then the
659+21 provider must disclose the following:
660+22 (1) The amount of the new commercial financing that is
661+23 used to pay off the portion of the existing commercial
662+24 financing that consists of prepayment charges required to
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709-1 rule as necessary or appropriate for the purpose of
710-2 making a determination of whether the deviation
711-3 between the estimated annual percentage rate and
712-4 actual retrospective annual percentage rates of
713-5 completed transactions was reasonable. The Secretary
714-6 shall establish the method of reporting and may, upon
715-7 a finding that the use of projected sales volume by the
716-8 provider has resulted in an unacceptable deviation
717-9 between estimated and actual annual percentage rate,
718-10 require the provider to use the historical method. The
719-11 Secretary may consider unusual and extraordinary
720-12 circumstances impacting the provider's deviation
721-13 between estimated and actual annual percentage rate in
722-14 the determination of the finding.
723-15 (4) The total repayment amount, which is the
724-16 disbursement amount plus the finance charge.
725-17 (5) The estimated term, which is the period of time
726-18 required for the periodic payments, based on the projected
727-19 sales volume, to equal the total amount required to be
728-20 repaid.
729-21 (6) The payment amounts, based on the projected sales
730-22 volume:
731-23 (A) for payment amounts that are fixed, the
732-24 payment amounts and frequency, such as, daily, weekly,
733-25 monthly, and, if the payment frequency is other than
734-26 monthly, the amount of the average projected payments
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673+1 be paid and any unpaid interest expense that was not
674+2 forgiven at the time of renewal. For financing for which
675+3 the total repayment amount is calculated as a fixed
676+4 amount, the prepayment charge is equal to the original
677+5 finance charge multiplied by the amount of the renewal
678+6 used to pay off existing financing as a percentage of the
679+7 total repayment amount, minus any portion of the total
680+8 repayment amount forgiven by the provider at the time of
681+9 prepayment. If the amount is more than zero, such amount
682+10 shall be the answer to the following question: "Does the
683+11 renewal financing include any amount that is used to pay
684+12 unpaid finance charge or fees, also known as double
685+13 dipping? Yes, [enter amount]. If the amount is zero, the
686+14 answer would be No."
687+15 (2) If the disbursement amount will be reduced to pay
688+16 down any unpaid portion of the outstanding balance, then
689+17 the actual dollar amount by which the disbursement amount
690+18 will be reduced.
691+19 Section 55. Required signature. The provider shall obtain
692+20 the recipient's signature, which may be fulfilled by an
693+21 electronic signature, on all disclosures required to be
694+22 presented to the recipient by this Act before authorizing the
695+23 recipient to proceed further with the commercial financing
696+24 transaction application.
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745-1 per month; or
746-2 (B) for payment amounts that are variable, a
747-3 payment schedule or a description of the method used
748-4 to calculate the amounts and frequency of payments and
749-5 the amount of the average projected payments per
750-6 month.
751-7 (7) A description of all other potential fees and
752-8 charges not included in the finance charge, including, but
753-9 not limited to, draw fees, late payment fees, and returned
754-10 payment fees.
755-11 (8) If the recipient elects to pay off or refinance
756-12 the commercial financing before full repayment, the
757-13 provider shall disclose:
758-14 (A) whether the recipient would be required to pay
759-15 any finance charges other than interest accrued since
760-16 their last payment; if so, disclosure of the
761-17 percentage of any unpaid portion of the finance charge
762-18 and maximum dollar amount the recipient could be
763-19 required to pay; and
764-20 (B) whether the recipient would be required to pay
765-21 any additional fees not already included in the
766-22 finance charge.
767-23 (9) A description of collateral requirements or
768-24 security interests, if any.
769-25 Section 50. Commercial closed-end financing disclosure
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707+1 Section 60. Additional information. Nothing in this Act
708+2 shall prevent a provider from providing or disclosing
709+3 additional information on a commercial financing being offered
710+4 to a recipient, however, such additional information shall not
711+5 be disclosed as part of the disclosure required by this Act. If
712+6 other metrics of financing cost are disclosed or used in the
713+7 application process of a commercial financing, then these
714+8 metrics shall not be presented as a "rate" if they are not the
715+9 annual interest rate or the annual percentage rate. The term
716+10 "interest", when used to describe a percentage rate, shall
717+11 only be used to describe annualized percentage rates, such as
718+12 the annual interest rate. When a provider states a rate of
719+13 finance charge or a financing amount to a recipient during an
720+14 application process for commercial financing, the provider
721+15 shall also state the rate as an "annual percentage rate",
722+16 using that term or the abbreviation "APR".
723+17 Section 65. Rules. The Department is hereby authorized and
724+18 empowered to adopt such rules as may in the judgment of the
725+19 Secretary be consistent with the purposes of this Act, or
726+20 appropriate for the effective administration of this Act,
727+21 including, but not limited to:
728+22 (1) Rules in connection with the calculation or
729+23 determination of any metric required to be disclosed to a
730+24 recipient.
731+25 (2) Rules as necessary to develop and prescribe
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780-1 requirements.
781-2 (a) A provider subject to this Act shall provide the
782-3 following disclosures to a recipient, in a manner prescribed
783-4 by the Secretary, if any, at the time of extending a specific
784-5 offer for closed-end financing:
785-6 (1) The total amount of the commercial financing, and,
786-7 if different from the financing amount, the disbursement
787-8 amount after any amount deducted or withheld at
788-9 disbursement.
789-10 (2) The finance charge.
790-11 (3) The annual percentage rate, using only the words
791-12 annual percentage rate or the abbreviation "APR",
792-13 expressed as a yearly rate, inclusive of any fees and
793-14 finance charges that cannot be avoided by a recipient.
794-15 (4) The total repayment amount, which is the
795-16 disbursement amount plus the finance charge.
796-17 (5) The term of the financing.
797-18 (6) The payment amounts:
798-19 (A) for payment amounts that are fixed, the
799-20 payment amounts and frequency, such as daily, weekly,
800-21 monthly, and, if the term is longer than one month, the
801-22 average monthly payment amount; or
802-23 (B) for payment amounts that are variable, a full
803-24 payment schedule or a description of the method used
804-25 to calculate the amounts and frequency of payments,
805-26 and, if the term is longer than one month, the
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742+1 disclosure formatting to be used by providers that allows
743+2 for recipients to easily compare financing options in a
744+3 clear and conspicuous manner; such rules may include the
745+4 designation and method for disclosing the information
746+5 required in this Act or approving adequate forms and
747+6 methods already used by providers.
748+7 (3) Rules as may define the terms used in this Act and
749+8 as may be necessary and appropriate to interpret and
750+9 implement the provisions of this Act.
751+10 (4) Rules as may be necessary for the enforcement and
752+11 administration of this Act.
753+12 (5) Rules appropriate for the protection of consumers
754+13 in this State.
755+14 (6) Rules as may be necessary and appropriate to
756+15 define improper or fraudulent business practices in
757+16 connection with commercial financing.
758+17 (7) Rules as may be necessary to charge and collect
759+18 fees necessary to cover the costs of administering this
760+19 Act, including, but not limited to, registration,
761+20 investigation, and examination fees.
762+21 The Department may adopt rules pursuant to this Act upon
763+22 this Act becoming law with such rules not to take effect
764+23 earlier than January 1, 2024.
765+24 Section 70. Penalties.
766+25 (a) Upon a finding by the Secretary that a provider has
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816-1 estimated average monthly payment amount.
817-2 (7) A description of all other potential fees and
818-3 charges that can be avoided by the recipient, including,
819-4 but not limited to, late payment fees and returned payment
820-5 fees.
821-6 (8) If the recipient elects to pay off or refinance
822-7 the commercial financing before full repayment, the
823-8 provider shall disclose:
824-9 (A) whether the recipient would be required to pay
825-10 any finance charges other than interest accrued since
826-11 their last payment; if so, disclosure of the
827-12 percentage of any unpaid portion of the finance charge
828-13 and maximum dollar amount the recipient could be
829-14 required to pay; and
830-15 (B) whether the recipient would be required to pay
831-16 any additional fees not already included in the
832-17 finance charge.
833-18 (9) A description of collateral requirements or
834-19 security interests, if any.
835-20 (b) If an advance requires repayment in periodic
836-21 installments over time and does not qualify as sales-based
837-22 financing, then the advance qualifies as close-end financing
838-23 and shall satisfy the disclosure requirements of this Section.
839-24 Section 55. Open-end commercial financing disclosure
840-25 requirements. A provider subject to this Act shall provide the
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777+1 violated the provisions of this Act or the rules adopted
778+2 pursuant to this Act, the provider shall be ordered to pay the
779+3 Department a civil penalty for each violation of this Act or
780+4 any rule a sum not to exceed $10,000 for each violation or, if
781+5 such violation is willful, $20,000 for each violation.
782+6 (b) In addition to any penalty imposed pursuant to
783+7 subsection (a), the Secretary may order additional relief,
784+8 including, but not limited to:
785+9 (i) restitution;
786+10 (ii) refund of moneys or return of real property;
787+11 (iii) disgorgement or compensation for unjust
788+12 enrichment, with any disgorged amounts returned to the
789+13 affected businesses, to the extent practicable; and
790+14 (iv) limits on the activities or functions of the
791+15 person, including, but not limited to, prohibiting a
792+16 person from being a provider.
793+17 (c) The Secretary shall serve notice of the action,
794+18 including, but not limited to, a statement of the reasons for
795+19 the action, either personally or by certified mail. Service by
796+20 certified mail shall be deemed completed when the notice is
797+21 deposited in the U.S. mail.
798+22 (d) Within 10 days after service of the action, the person
799+23 may request a hearing in writing. The Secretary shall schedule
800+24 a hearing within 90 days after the request for a hearing unless
801+25 otherwise agreed to by the parties.
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851-1 following disclosures to a recipient, in a manner prescribed
852-2 by the Secretary, if any, at the time of extending a specific
853-3 offer for open-end financing:
854-4 (1) The maximum amount of credit available to the
855-5 recipient, such as the credit line amount, and the amount
856-6 scheduled to be drawn by the recipient at the time the
857-7 offer is extended, if any, less any amount deducted or
858-8 withheld at disbursement.
859-9 (2) The finance charge.
860-10 (3) The annual percentage rate, using only the words
861-11 annual percentage rate or the abbreviation "APR",
862-12 expressed as a nominal yearly rate, inclusive of any fees
863-13 and finance charges that cannot be avoided by a recipient,
864-14 and based on the maximum amount of credit available to the
865-15 recipient and the term resulting from making the minimum
866-16 required payments term as disclosed.
867-17 (4) The total repayment amount, which is the draw
868-18 amount, less any fees deducted or withheld at
869-19 disbursement, plus the finance charge. The total repayment
870-20 amount shall assume a draw amount equal to the maximum
871-21 amount of credit available to the recipient if drawn and
872-22 held for the duration of the term or draw period.
873-23 (5) The term of the plan, if applicable, or the period
874-24 over which a draw is amortized.
875-25 (6) The payment frequency and amounts, based on the
876-26 assumptions used in the calculation of the annual
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812+1 Section 75. Cease and desist order.
813+2 (a) The Secretary may issue a cease and desist order if, in
814+3 the opinion of the Secretary, a licensee or other person is
815+4 violating or is about to violate any provision of this Act or
816+5 any rule or requirement imposed in writing by the Department.
817+6 The cease and desist order permitted by this Section may be
818+7 issued before a hearing.
819+8 (b) The Secretary shall serve notice of his or her action,
820+9 including, but not limited to, a statement of the reasons for
821+10 the action, either personally or by certified mail. Service by
822+11 certified mail shall be deemed completed when the notice is
823+12 deposited in the U.S. mail.
824+13 (c) Within 10 days after service of the cease and desist
825+14 order, the licensee or other person may request a hearing in
826+15 writing. The Secretary shall schedule a hearing within 90 days
827+16 after the request for a hearing unless otherwise agreed to by
828+17 the parties.
829+18 (d) The Secretary may include in any cease and desist
830+19 order such orders as may be reasonably necessary to correct,
831+20 eliminate, or remedy the conduct.
832+21 (e) The powers vested in the Secretary by this Section are
833+22 in addition to any and all other powers and remedies vested in
834+23 the Secretary by law, and nothing in this Section shall be
835+24 construed as requiring that the Secretary shall employ the
836+25 power conferred in this subsection instead of or as a
837+26 condition precedent to the exercise of any other power or
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887-1 percentage rate, including a description of payment amount
888-2 requirements such as a minimum payment amount, and if the
889-3 payment frequency is other than monthly, the amount of the
890-4 average projected payments per month. For payment amounts
891-5 that are variable, the provider should include a payment
892-6 schedule or a description of the method used to calculate
893-7 the amounts and frequency of payments and the estimated
894-8 average monthly payment amount.
895-9 (7) A description of all other potential fees and
896-10 charges that can be avoided by the recipient, including,
897-11 but not limited to, draw fees, late payment fees, and
898-12 returned payment fees.
899-13 (8) Were the recipient to elect to pay off or
900-14 refinance the commercial financing before full repayment,
901-15 the provider shall disclose:
902-16 (A) whether the recipient would be required to pay
903-17 any finance charges other than interest accrued since
904-18 their last payment; if so, disclosure of the
905-19 percentage of any unpaid portion of the finance charge
906-20 and maximum dollar amount the recipient could be
907-21 required to pay; and
908-22 (B) whether the recipient would be required to pay
909-23 any additional fees not already included in the
910-24 finance charge.
911-25 (9) A description of collateral requirements or
912-26 security interests, if any.
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848+1 remedy vested in the Secretary.
849+2 Section 80. Injunction. The Secretary may, through the
850+3 Attorney General, bring an action in the circuit court to
851+4 enjoin a person from violating this Act in the name of the
852+5 people of the State of Illinois.
853+6 Section 85. Investigation and examination. The Department
854+7 may investigate or examine providers and persons reasonably
855+8 believed to be providers for compliance with this Act and its
856+9 implementing rules.
857+10 Section 90. Civil action. A civil claim may be asserted
858+11 against a provider for violation of this Act. Additionally, a
859+12 prevailing person other than a provider may be awarded
860+13 reasonable attorney's fees and court costs.
861+14 Section 95. Violations.
862+15 (a) Nothing in this Act shall be construed to restrict the
863+16 exercise of powers or the performance of the duties that the
864+17 Illinois Attorney General is authorized to exercise or perform
865+18 by law.
866+19 (b) Any violation of this Act constitutes an unlawful
867+20 practice in violation of the Consumer Fraud and Deceptive
868+21 Business Practices Act.
869+22 (c) The Illinois Attorney General may enforce a violation
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923-1 Section 60. Factoring transaction disclosure requirements.
924-2 A provider subject to this Act shall provide the following
925-3 disclosures to a recipient, in a manner prescribed by the
926-4 Secretary, if any, at the time of extending a specific offer
927-5 for a factoring transaction:
928-6 (1) The amount of the receivables purchase price paid
929-7 to the recipient, and, if different from the purchase
930-8 price, the disbursement amount after any amount deducted
931-9 or withheld at disbursement.
932-10 (2) The finance charge.
933-11 (3) The estimated annual percentage rate, using that
934-12 term. To calculate the estimated annual percentage rate,
935-13 the purchase amount is considered the financing amount,
936-14 the purchase amount minus the finance charge is considered
937-15 the payment amount, and the term is established by the
938-16 payment due date of the receivables. As an alternate
939-17 method of establishing the term, the provider may estimate
940-18 the term for a factoring transaction as the average
941-19 payment period based on its historical data over a period
942-20 not to exceed the previous 12 months, concerning payment
943-21 invoices paid by the party or parties owing the accounts
944-22 receivable in question.
945-23 (4) The total payment amount, which is the purchase
946-24 amount plus the finance charge.
947-25 (5) A description of all other potential fees and
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880+1 of this Act as an unlawful practice under the Consumer Fraud
881+2 and Deceptive Business Practices Act.
882+3 Section 100. No evasion. An agreement, contract, or
883+4 transaction that is structured to evade this Act shall be
884+5 deemed to be covered by this Act.
885+6 Section 105. Registration.
886+7 (a) All providers shall be required to pay a registration
887+8 fee of $1,000 to the Department and register with the
888+9 Department in the manner and form directed by the Secretary
889+10 within one year after the effective date of this Act and renew
890+11 the registration each calendar year thereafter in the manner
891+12 and form directed by the Secretary.
892+13 (b) Before December 1 of each year, a provider must pay to
893+14 the Secretary, and the Department must receive, a registration
894+15 fee of $1,000 for the following calendar year. A provider's
895+16 registration shall automatically expire on January 1 of each
896+17 year unless the registration fee has been paid prior thereto.
897+18 (c) Any commercial financing made or offered by a provider
898+19 that violates this Section is null and void and no person or
899+20 entity shall have any right to collect, attempt to collect,
900+21 receive, or retain any funded amount or charges related to the
901+22 commercial financing.
902+23 Section 110. Judicial review. All final administrative
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958-1 charges that can be avoided by the recipient.
959-2 (6) A description of the receivables purchased and any
960-3 additional collateral requirements or security interests.
961-4 Section 65. Other forms of financing disclosure
962-5 requirements. The Secretary may require disclosure by a
963-6 provider extending a specific offer of commercial financing
964-7 which is not an open-end financing, closed-end financing,
965-8 sales-based financing, or factoring transaction but otherwise
966-9 meets the definition of commercial financing. Subject to rules
967-10 adopted by the Secretary, a provider subject to this Act shall
968-11 provide the following disclosures to a recipient, in a manner
969-12 prescribed by the Secretary, if any, at the time of extending a
970-13 specific offer of other forms of financing:
971-14 (1) The total amount of the commercial financing, and,
972-15 if different from the financing amount, the disbursement
973-16 amount after any fees deducted or withheld at
974-17 disbursement.
975-18 (2) The finance charge.
976-19 (3) The annual percentage rate, using only the words
977-20 annual percentage rate or the abbreviation "APR",
978-21 expressed as a yearly rate, inclusive of any fees and
979-22 finance charges.
980-23 (4) The total repayment amount which is the
981-24 disbursement amount plus the finance charge.
982-25 (5) The term of the financing.
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913+1 decisions of the Department under this Act are subject to
914+2 judicial review under the Administrative Review Law and any
915+3 rules adopted under the Administrative Review Law.
916+4 Section 900. The Consumer Fraud and Deceptive Business
917+5 Practices Act is amended by adding Section 2BBBB as follows:
918+6 (815 ILCS 505/2BBBB new)
919+7 Sec. 2BBBB. Violations of the Small Business Truth in
920+8 Lending Act. Any person who violates the Small Business Truth
921+9 in Lending Act commits an unlawful practice within the meaning
922+10 of this Act.
923+11 Section 997. Severability. The provisions of this Act are
924+12 severable under Section 1.31 of the Statute on Statutes. If
925+13 any clause, sentence, provision, or part of this Act or its
926+14 application to any person or circumstance is adjudged to be
927+15 unconstitutional or invalid for any reason by any court of
928+16 competent jurisdiction, that judgment shall not impair,
929+17 affect, or invalidate other provisions or applications of this
930+18 Act, which shall remain in full force and effect thereafter.
931+19 Section 999. Effective date. This Act takes effect upon
932+20 becoming law.
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993-1 (6) The payment amounts:
994-2 (A) for payment amounts that are fixed, the
995-3 payment amounts and frequency, such as daily, weekly,
996-4 monthly, and the average monthly payment amount; or
997-5 (B) for payment amounts that are variable, a
998-6 payment schedule or a description of the method used
999-7 to calculate the amounts and frequency of payments,
1000-8 and the estimated average monthly payment amount.
1001-9 (7) A description of all other potential fees and
1002-10 charges that can be avoided by the recipient, including,
1003-11 but not limited to, late payment fees and returned payment
1004-12 fees.
1005-13 (8) If the recipient elects to pay off or refinance
1006-14 the commercial financing before full repayment, the
1007-15 provider shall disclose:
1008-16 (A) whether the recipient would be required to pay
1009-17 any finance charges other than interest accrued since
1010-18 their last payment; if so, disclosure of the
1011-19 percentage of any unpaid portion of the finance charge
1012-20 and maximum dollar amount the recipient could be
1013-21 required to pay; and
1014-22 (B) whether the recipient would be required to pay
1015-23 any additional fees not already included in the
1016-24 finance charge.
1017-25 (9) A description of collateral requirements or
1018-26 security interests, if any.
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1029-1 Section 70. Disclosure requirements for renewal financing.
1030-2 If, as a condition of obtaining the commercial financing, the
1031-3 provider requires the recipient to pay off the balance of an
1032-4 existing commercial financing from the same provider, the
1033-5 provider shall disclose:
1034-6 (1) The amount of the new commercial financing that is
1035-7 used to pay off the portion of the existing commercial
1036-8 financing that consists of prepayment charges required to
1037-9 be paid and any unpaid interest expense that was not
1038-10 forgiven at the time of renewal. For financing for which
1039-11 the total repayment amount is calculated as a fixed
1040-12 amount, the prepayment charge is equal to the original
1041-13 finance charge multiplied by the amount of the renewal
1042-14 used to pay off existing financing as a percentage of the
1043-15 total repayment amount, minus any portion of the total
1044-16 repayment amount forgiven by the provider at the time of
1045-17 prepayment. If the amount is more than zero, the amount
1046-18 shall be the answer to the following question: "Does the
1047-19 renewal financing include any amount that is used to pay
1048-20 unpaid finance charges or fees, also known as double
1049-21 dipping? Yes, {enter amount}. If the amount is zero, the
1050-22 answer would be no."
1051-23 (2) If the disbursement amount will be reduced to pay
1052-24 down any unpaid portion of the outstanding balance, the
1053-25 actual dollar amount by which the disbursement amount will
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1064-1 be reduced.
1065-2 Section 75. Additional information. Nothing in this Act
1066-3 shall prevent a provider from providing or disclosing
1067-4 additional information on a commercial financing being offered
1068-5 to a recipient, provided however, that the additional
1069-6 information shall not be disclosed as part of the disclosure
1070-7 required by this Act. If other metrics of financing cost are
1071-8 disclosed or used in the application process of a commercial
1072-9 financing, these metrics shall not be presented as a "rate" if
1073-10 they are not the annual interest rate or the annual percentage
1074-11 rate. The term "interest", when used to describe a percentage
1075-12 rate, shall only be used to describe annualized percentage
1076-13 rates, such as the annual interest rate. When a provider
1077-14 states a rate of finance charge or a financing amount to a
1078-15 recipient during an application process for commercial
1079-16 financing, the provider shall also state the rate as an
1080-17 "annual percentage rate", using that term or the abbreviation
1081-18 "APR".
1082-19 Section 80. Commercial financing disclosure forms approved
1083-20 for use in the other states. The Secretary may approve the use
1084-21 of commercial financing disclosure forms approved for use in
1085-22 other states with commercial financing disclosure requirements
1086-23 that are substantially similar to or exceed the requirements
1087-24 set forth in this Act, including the disclosure requirements
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1098-1 in Sections 45, 50, 55, 60, 65, and 70 of this Act.
1099-2 Section 85. Violation of disclosure requirements. If the
1100-3 Secretary finds that a provider who is required to register
1101-4 with the Department according to this Act has violated any
1102-5 disclosure requirements outlined in Sections 45, 50, 55, 60,
1103-6 65, 70, and 75, that shall be considered a violation of this
1104-7 Act separate from any other violation that may result from
1105-8 operating without a registration as outlined in Section 95.
1106-9 Section 90. Notification.
1107-10 (a) A registrant must advise the Secretary in writing of
1108-11 any changes to the information submitted on its most recent
1109-12 registration or renewal of registration within 30 days after
1110-13 the change.
1111-14 (b) A registrant must advise the Secretary in writing that
1112-15 the registrant has been disciplined, including denial of
1113-16 licensure, by a licensing authority of this State or another
1114-17 state within 10 days after entry of the discipline.
1115-18 Section 95. Disciplinary actions.
1116-19 (a) The Secretary may enter an order imposing one or more
1117-20 of the following penalties:
1118-21 (1) revocation of registration;
1119-22 (2) suspension of a registration subject to
1120-23 reinstatement upon satisfying all reasonable conditions
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1131-1 the Secretary may specify;
1132-2 (3) placement of the registrant or applicant on
1133-3 probation for a period of time and subject to all
1134-4 reasonable conditions as the Secretary may specify;
1135-5 (4) imposition of civil monetary penalties not to
1136-6 exceed $10,000 for each separate offense, but civil
1137-7 penalties may not to exceed $50,000 for all violations
1138-8 arising from the use of the same single transaction,
1139-9 including for financing offers that are not consummated;
1140-10 (5) restitution, refunds, or any other relief
1141-11 necessary to protect recipients; and
1142-12 (6) denial of a registration.
1143-13 (b) Grounds for penalties include:
1144-14 (1) if a registrant has violated or aided another to
1145-15 violate any provision of this Act, any rule adopted by the
1146-16 Secretary, or any other law, rule, or regulation of this
1147-17 State, any other state, or the United States;
1148-18 (2) if a person has violated or aided another to
1149-19 violate any provision of this Act or any rule adopted by
1150-20 the Secretary pursuant to this Act;
1151-21 (3) if a fact or condition exists that, if it had
1152-22 existed at the time of the original application for
1153-23 registration, would have warranted the Secretary in
1154-24 refusing issue the original registration;
1155-25 (4) that a registrant that is not an individual has
1156-26 acted or failed to act in a way that would be cause for
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1167-1 suspending or revoking a registration to an individual;
1168-2 (5) that a person engaged in unsafe, unsound, unfair,
1169-3 deceptive, or abusive business practices related to the
1170-4 activity covered by this Act;
1171-5 (6) that a registrant or an officer, director,
1172-6 manager, operator, or principal of the registrant, or an
1173-7 employee of the registrant engaged in the business of
1174-8 commercial financing has been adjudicated guilty of a
1175-9 crime against the law of this State, any other state, or of
1176-10 the United States involving moral turpitude, abusive,
1177-11 deceptive, fraudulent, or dishonest dealing;
1178-12 (7) that a final judgment has been entered against
1179-13 registrant or an officer, director, manager, operator, or
1180-14 principal of the registrant, or an employee of the
1181-15 registrant engaged in the business of commercial financing
1182-16 in a civil action upon grounds of abusive conduct,
1183-17 conversion, fraud, misrepresentation, or deceit;
1184-18 (8) that an applicant made a material misstatement in
1185-19 the applicant's application for registration or any other
1186-20 communication to the Secretary;
1187-21 (9) that a person has demonstrated, by course of
1188-22 conduct, negligence or incompetence in performing any act
1189-23 for which it is required to hold a registration under this
1190-24 Act;
1191-25 (10) that a person has failed to advise the Secretary
1192-26 in writing of any changes to the information submitted on
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1203-1 the person's most recent registration or renewal of
1204-2 registration within 30 days after the change;
1205-3 (11) that a registrant had a license, registration, or
1206-4 the equivalent, to practice any profession, occupation,
1207-5 other industry or activity requiring licensure revoked,
1208-6 suspended, disciplined, or otherwise acted against,
1209-7 including the denial of licensure by a licensing authority
1210-8 of this State or another state, territory, or country for
1211-9 fraud, dishonest dealing, misrepresentations,
1212-10 incompetence, conversion, any act of moral turpitude or
1213-11 any other grounds that would constitute grounds for
1214-12 discipline under this Act;
1215-13 (12) that a person registered under this Act failed to
1216-14 timely notify the Secretary that the person has been
1217-15 disciplined, including denial of licensure, by a licensing
1218-16 authority of this State or another state as required under
1219-17 subsection (b) of Section 90;
1220-18 (13) that a person engaged in activities regulated by
1221-19 this Act without a current, active registration unless
1222-20 specifically exempted by this Act;
1223-21 (14) that a person failed to timely pay any fee,
1224-22 charge, or civil penalty assessed under this Act; and
1225-23 (15) that a person refused, obstructed, evaded, or
1226-24 unreasonably delayed an investigation or information
1227-25 request authorized under this Act, or refused, obstructed,
1228-26 evaded, or unreasonably delayed compliance with the
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1239-1 Secretary's subpoena or subpoena duces tecum.
1240-2 (c) No registration shall be suspended or revoked, except
1241-3 as provided in this Section, nor shall any person be assessed a
1242-4 civil penalty without notice of his or her right to a hearing.
1243-5 (d) The Secretary may suspend any registration for a
1244-6 period not exceeding 180 days pending investigation for good
1245-7 cause shown that an emergency exists.
1246-8 (e) No revocation, suspension, or surrender of any
1247-9 registration shall impair or affect the obligation of any
1248-10 preexisting lawful contract between the registrant and any
1249-11 person. The Secretary's approval of a registrant's application
1250-12 to surrender its registration shall not affect the
1251-13 registrant's civil or criminal liability for acts committed
1252-14 prior to surrender. Surrender of a registration does not
1253-15 entitle the registrant to a return of any part of the
1254-16 registration fee.
1255-17 (f) Every registration issued under this Act shall remain
1256-18 in force and effect until the registration expires, is
1257-19 surrendered, is revoked, or is suspended in accordance with
1258-20 the provisions of this Act. The Secretary shall have authority
1259-21 to reinstate a suspended registration or to issue a new
1260-22 registration to a registrant whose registration has been
1261-23 revoked or surrendered if no fact or condition then exists
1262-24 which would have warranted the Secretary in refusing
1263-25 originally to issue that registration under this Act.
1264-26 (g) Whenever the Secretary imposes discipline authorized
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1275-1 by this Section, the Secretary shall execute a written order
1276-2 to that effect. The Secretary shall serve a copy of the order
1277-3 upon the person. The Secretary shall serve the person with
1278-4 notice of the order, including a statement of the reasons for
1279-5 the order personally or by certified mail. Service by
1280-6 certified mail shall be deemed completed when the notice is
1281-7 deposited in the U.S. Mail.
1282-8 (h) An order assessing a civil penalty, an order revoking
1283-9 or suspending a registration, or an order denying renewal of a
1284-10 registration shall take effect upon service of the order
1285-11 unless the registrant serves the Department with a written
1286-12 request for a hearing in the manner required by the order
1287-13 within 10 days after the date of service of the order. If a
1288-14 person requests a hearing, the order shall be stayed from its
1289-15 date of service until the Department enters a final
1290-16 administrative order. Hearings shall be conducted as follows:
1291-17 (1) If the registrant requests a hearing, then the
1292-18 Secretary shall schedule a hearing within 90 days after
1293-19 the request for a hearing unless otherwise agreed to by
1294-20 the parties.
1295-21 (2) The hearing shall be held at the time and place
1296-22 designated by the Secretary. The Secretary and any
1297-23 administrative law judge designated by the Secretary shall
1298-24 have the power to administer oaths and affirmations,
1299-25 subpoena witnesses and compel their attendance, take
1300-26 evidence, and require the production of books, papers,
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1311-1 correspondence, and other records or information that they
1312-2 consider relevant or material to the inquiry.
1313-3 (i) The costs of administrative hearings conducted under
1314-4 this Section shall be paid by the registrant or other person
1315-5 subject to the hearing.
1316-6 (j) Registrants and other persons subject to this Act
1317-7 shall be subject to the disciplinary actions specified in this
1318-8 Act for any violations conducted by any officer, director,
1319-9 shareholder, joint venture, partner, owner, including, but not
1320-10 limited to, ultimate equitable owner.
1321-11 Section 100. Investigation of complaints. The Secretary
1322-12 may investigate any complaints and inquiries made concerning
1323-13 this Act and any registrants or persons the Secretary believes
1324-14 may be required to register under this Act. Each registrant or
1325-15 person the Secretary believes may be required to register
1326-16 under this Act shall open the registrant's or person's books,
1327-17 records, documents, and offices wherever situated to the
1328-18 Secretary as needed to facilitate the investigations.
1329-19 Section 105. Additional investigation authority. In
1330-20 addition to any authority allowed under this Act, the
1331-21 Secretary may conduct investigations as follows:
1332-22 (1) For purposes of initial registration, registration
1333-23 renewal, registration suspension, registration
1334-24 conditioning, registration probation, registration
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1345-1 revocation or termination, or general or specific inquiry
1346-2 or investigation to determine compliance with this Act,
1347-3 the Secretary may access, receive, and use any books,
1348-4 accounts, records, files, documents, information, or
1349-5 evidence, including, but not limited to, the following:
1350-6 (A) criminal, civil, registration, and
1351-7 administrative history information, including
1352-8 nonconviction data as specified in the Criminal Code
1353-9 of 2012; (B) personal history and experience
1354-10 information, including independent credit reports
1355-11 obtained from a consumer reporting agency described in
1356-12 Section 603(p) of the federal Fair Credit Reporting
1357-13 Act; and (C) any other documents, information, or
1358-14 evidence the Secretary deems relevant to the inquiry
1359-15 or investigation, regardless of the location,
1360-16 possession, control, or custody of the documents,
1361-17 information, or evidence.
1362-18 (2) For the purposes of investigating violations or
1363-19 complaints arising under this Act, the Secretary may
1364-20 review or investigate any registrant or person subject to
1365-21 this Act as necessary in order to carry out the purposes of
1366-22 this Act. The Secretary may direct, subpoena, or order the
1367-23 attendance of, and examine under oath all persons and
1368-24 order any person to produce records, files, and any other
1369-25 documents the Secretary deems relevant to an inquiry.
1370-26 (3) Each person subject to this Act shall make
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1381-1 available to the Secretary upon request the books and
1382-2 records relating to the operations of the person subject
1383-3 to this Act. The Secretary shall have access to those
1384-4 books and records and may interview the owners, officers,
1385-5 principals, employees, independent contractors, agents,
1386-6 vendors, and customers of any registrant or person subject
1387-7 to this Act.
1388-8 (4) In making any investigation authorized by this
1389-9 Act, the Secretary may control access to any documents and
1390-10 records of the registrant or person under investigation.
1391-11 The Secretary may take possession of the documents and
1392-12 records or otherwise take constructive control of the
1393-13 documents. During the period of control, no person shall
1394-14 remove or alter any of the documents or records, except
1395-15 pursuant to a court order or with the consent of the
1396-16 Secretary. Unless the Secretary has reasonable grounds to
1397-17 believe the documents or records of the registrant have
1398-18 been or are at risk of being altered or destroyed for
1399-19 purposes of concealing a violation of this Act, the
1400-20 registrant or owner of the documents and records shall
1401-21 have access to the documents or records as necessary to
1402-22 conduct its ordinary business affairs.
1403-23 (5) In order to carry out the purposes of this
1404-24 Section, the Secretary may:
1405-25 (A) retain attorneys, accountants, or other
1406-26 professionals and specialists as auditors or
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1417-1 investigators to conduct or assist in the conduct of
1418-2 investigations;
1419-3 (B) enter into agreements or relationships with
1420-4 other government officials or regulatory associations
1421-5 to protect consumers or financing recipients, improve
1422-6 efficiencies, and reduce regulatory burden by sharing
1423-7 resources, standardized or uniform methods or
1424-8 procedures, and documents, records, information, or
1425-9 evidence obtained under this Section;
1426-10 (C) use, hire, contract, or employ publicly or
1427-11 privately available analytical systems, methods, or
1428-12 software or investigate the registrant or person
1429-13 subject to this Act;
1430-14 (D) accept and rely on examination or
1431-15 investigation reports made by other government
1432-16 officials, within or outside this State; or
1433-17 (E) accept audit reports made by an independent
1434-18 certified public accountant for the person subject to
1435-19 this Act and may incorporate the audit report in the
1436-20 report of the investigation or other writing of the
1437-21 Secretary.
1438-22 (6) The authority of this Section shall remain in
1439-23 effect, whether the person subject to this Act acts or
1440-24 claims to act under any licensing or registration law of
1441-25 this State or claims to act without the authority.
1442-26 (7) No registrant or person subject to investigation
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1453-1 or under this Section may knowingly withhold, alter,
1454-2 abstract, remove, mutilate, destroy, hide, or conceal any
1455-3 books, records, computer records, or other information or
1456-4 take actions designed to delay or complicate review of
1457-5 records.
1458-6 Section 110. Confidentiality. To promote more effective
1459-7 regulation, protect consumers and financing recipients, and
1460-8 reduce regulatory burden through inter-regulatory sharing of
1461-9 confidential supervisory information:
1462-10 (1) The privacy or confidentiality of any information
1463-11 or material provided to a multistate licensing system,
1464-12 including all privileges arising under federal or state
1465-13 court rules and law, shall continue to apply to the
1466-14 information or material after the information or material
1467-15 has been disclosed to the multistate licensing system.
1468-16 Information and material may be shared with a multistate
1469-17 licensing system, federal and state regulatory officials
1470-18 with relevant oversight authority, and law enforcement
1471-19 without the loss of privilege or the loss of
1472-20 confidentiality protections.
1473-21 (2) The Secretary is authorized to enter into
1474-22 agreements or sharing arrangements with other governmental
1475-23 agencies, the Conference of State Bank Supervisors, and
1476-24 other associations representing governmental agencies.
1477-25 (3) Information or material that is privileged or
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1488-1 confidential under this Act as determined by the Secretary
1489-2 is not subject to the following:
1490-3 (A) disclosure under any State law governing the
1491-4 disclosure to the public of information held by an
1492-5 officer or an agency of the State; or
1493-6 (B) subpoena, discovery, or admission into
1494-7 evidence, in any private civil action or
1495-8 administrative process except as authorized by the
1496-9 Secretary.
1497-10 (4) Any other law relating to the disclosure of
1498-11 confidential supervisory information that is inconsistent
1499-12 with this Act shall be superseded by the requirements of
1500-13 this Section to the extent the other law provides less
1501-14 confidentiality or a weaker privilege for information that
1502-15 is privileged or confidential under this Act.
1503-16 (5) Confidential or privileged information received
1504-17 from a multistate licensing system, another licensing
1505-18 body, federal and state regulatory officials, or law
1506-19 enforcement shall be protected to the same extent as the
1507-20 Secretary's confidential and privileged information is
1508-21 protected under this Act. The Secretary may also protect
1509-22 from disclosure confidential or privileged information
1510-23 that would be exempt from disclosure to the extent it is
1511-24 held directly by the multistate licensing system, another
1512-25 licensing body, federal and state regulatory officials, or
1513-26 law enforcement.
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1524-1 Section 115. Appeal and review.
1525-2 (a) The Secretary may, in accordance with the Illinois
1526-3 Administrative Procedure Act, adopt rules to provide for
1527-4 review within the Department of their decisions affecting the
1528-5 rights of persons under this Act. The review shall provide
1529-6 for, at a minimum:
1530-7 (1) appointment of a hearing officer;
1531-8 (2) appropriate procedural rules, specific deadlines
1532-9 for filings, and standards of evidence and of proof; and
1533-10 (3) provisions for apportioning costs among parties to
1534-11 the appeal.
1535-12 (b) All final agency determinations of appeals to
1536-13 decisions of the Secretary may be reviewed in accordance with
1537-14 and under the provisions of the Administrative Review Law.
1538-15 Appeals from all final orders and judgments entered by a court
1539-16 in review of any final administrative decision of the
1540-17 Secretary or of any final agency review of a decision of the
1541-18 Secretary may be taken as in other civil cases.
1542-19 Section 120. Registration fees.
1543-20 (a) The fee for initial registration is $2,500. The fee is
1544-21 nonrefundable.
1545-22 (b) The fee for annual application renewal is $2,500. The
1546-23 fee is nonrefundable.
1547-24 (c) The Department shall impose a contingent fee
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1558-1 sufficient to cover its operating expenses in administering
1559-2 this Act not otherwise covered by all other revenue collected
1560-3 under this Act. Each registrant shall pay to the Division its
1561-4 pro rata share, based on number or volume of transactions or
1562-5 revenue, of the cost for administration of this Act that
1563-6 exceeds other fees listed in this Section, as estimated by the
1564-7 Division, for the current year and any deficit actually
1565-8 incurred in the administration of this Act in prior years.
1566-9 Section 125. Cease and desist order.
1567-10 (a) The Secretary may issue a cease and desist order to any
1568-11 registrant or person doing business without the required
1569-12 registration when, in the opinion of the Secretary, the
1570-13 registrant or other person has violated, is violating, or is
1571-14 about to violate any provision of this Act or any rule adopted
1572-15 by the Department under this Act or any requirement imposed in
1573-16 writing by the Department as a condition of granting any
1574-17 authorization permitted by this Act. The cease and desist
1575-18 order authorized by this Section may be issued prior to a
1576-19 hearing.
1577-20 (b) The Secretary shall serve notice of the cease and
1578-21 desist order, either personally or by certified mail. Service
1579-22 by certified mail shall be deemed completed when the notice is
1580-23 deposited in the U.S. Mail. The Secretary's notice shall
1581-24 include a statement of the reasons for the action.
1582-25 (c) Within 10 days after service of the cease and desist
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1593-1 order, the person subject to the cease and desist order may
1594-2 request a hearing in writing. The Secretary shall schedule a
1595-3 preliminary hearing within 60 days after the request for a
1596-4 hearing unless the parties agree to a later date.
1597-5 (d) If it is determined that the Secretary had the
1598-6 authority to issue the cease and desist order, the Secretary
1599-7 may issue the orders as may be reasonably necessary to
1600-8 correct, eliminate, deter, or remedy the conduct described in
1601-9 the order and resulting harms.
1602-10 (e) The powers vested in the Secretary by this Section are
1603-11 additional to all other powers and remedies vested in the
1604-12 Secretary by any law. Nothing in this Section shall be
1605-13 construed as requiring that the Secretary shall employ the
1606-14 power conferred in this Section instead of or as a condition
1607-15 precedent to the exercise of any other power or remedy vested
1608-16 in the Secretary.
1609-17 Section 130. Injunctions. The Secretary may maintain an
1610-18 action in the name of the people of this State and may apply
1611-19 for an injunction in the circuit court to enjoin a person from
1612-20 violating this Act or its implementing rules through the
1613-21 Attorney General.
1614-22 Section 135. Exemptions. This Act does not apply to, and
1615-23 does not place any additional requirements or obligations
1616-24 upon, any of the following:
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1627-1 (1) any person or entity that is not a provider;
1628-2 (2) a commercial financing transaction secured by real
1629-3 property;
1630-4 (3) a lease as defined in Section 2-A-103 of the
1631-5 Uniform Commercial Code, not including finance leases as
1632-6 defined in paragraph (g) of subsection (1) of Section
1633-7 2A-103 of the Uniform Commercial Code; or
1634-8 (4) a company primarily in the business of
1635-9 manufacturing equipment, or any subsidiary or affiliate of
1636-10 such a company, when offering a commercial financing
1637-11 transaction for which the majority of the proceeds are
1638-12 used to finance nonfinancial products manufactured by the
1639-13 company, or any subsidiary or affiliate of such a company,
1640-14 or the maintenance of or other services on such products;
1641-15 (5) any person or provider who makes no more than 5
1642-16 commercial financing transactions in this State in a
1643-17 12-month period;
1644-18 (6) a single, discrete commercial financing
1645-19 transaction in an amount over $500,000; or
1646-20 (7) a commercial financing transaction in which the
1647-21 recipient is a vehicle dealer subject to Section 5-101 or
1648-22 5-102 of the Illinois Vehicle Code, an affiliate of a
1649-23 dealer, a rental vehicle company as defined in Section 10
1650-24 of the Renter's Financial Responsibility and Protection
1651-25 Act, or an affiliate of a company under a commercial
1652-26 financing agreement or commercial open-end credit plan of
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1663-1 at least $50,000, including any commercial loan made under
1664-2 a commercial financing transaction.
1665-3 Section 140. Complaint disclosure. All commercial
1666-4 financing shall include a clear and conspicuous notice on how
1667-5 to file a complaint with the Department.
1668-6 Section 145. Rules. The Secretary may adopt rules to enact
1669-7 and enforce this Act, including, but not limited to:
1670-8 (1) rules defining the terms used in this Act and as
1671-9 may be necessary and appropriate to interpret and
1672-10 implement the provisions of this Act;
1673-11 (2) rules for the enforcement and administration of
1674-12 this Act;
1675-13 (3) rules for the protection of consumers and
1676-14 recipients in this State;
1677-15 (4) rules defining improper or fraudulent business
1678-16 practices in connection with commercial financing; and
1679-17 (5) rules to implement Section 165.
1680-18 Section 150. Violations.
1681-19 (a) Nothing in this Act shall be construed to restrict the
1682-20 exercise of powers or the performance of the duties that the
1683-21 Attorney General is authorized to exercise or perform by law.
1684-22 (b) Any violation of this Act constitutes an unlawful
1685-23 practice in violation of the Consumer Fraud and Deceptive
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1696-1 Business Practices Act. The Attorney General may enforce a
1697-2 violation of this Act as an unlawful practice under the
1698-3 Consumer Fraud and Deceptive Business Practices Act.
1699-4 Section 152. Limitation on liability. No provision of this
1700-5 Act imposes any liability on a provider as a result of the
1701-6 actual annual percentage rate charged by a provider differing
1702-7 from the estimated annual percentage rate disclosed in
1703-8 conformity with any regulation, order, or written interpretive
1704-9 opinion of the Secretary or any such opinion of the Attorney
1705-10 General, whether or not such regulation, order, or written
1706-11 interpretive opinion is later amended, rescinded, or repealed
1707-12 or determined by judicial or other authority to be invalid for
1708-13 any reason.
1709-14 Section 155. Beginning of registration. No person shall be
1710-15 required to register under this Act before the date
1711-16 established by the Department by rule. The date shall not be
1712-17 before January 1, 2025.
1713-18 Section 160. Beginning of disclosure requirements. No
1714-19 person shall be required to comply with the disclosure
1715-20 requirements set forth in Sections 45, 50, 55, 60, 65, 70, and
1716-21 165 before the date established by the Department by rule. The
1717-22 date shall not be before January 1, 2025.
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1728-1 Section 165. Commercial financing database.
1729-2 (a) A commercial financing database program is established
1730-3 within the Department. The program shall be administered in
1731-4 accordance with this Section. None of the duties, obligations,
1732-5 contingencies, or consequences of or from the program shall be
1733-6 imposed until 6 months after the Department certifies a
1734-7 commercial financing database under subsection (b). The
1735-8 program shall apply to all sales-based financings and
1736-9 commercial closed-end financings for which interest charges
1737-10 that accrue on the outstanding balance represent a minority of
1738-11 the finance charge that are governed by this Act and that are
1739-12 made or taken on or after the inception of the program.
1740-13 (b) The Department shall certify that a commercial
1741-14 financing database is a commercially reasonable method of
1742-15 reporting. Upon certifying that a commercial financing
1743-16 database is a commercially reasonable method of reporting, the
1744-17 Department shall:
1745-18 (1) provide reasonable notice to all registrants
1746-19 identifying the commercially reasonable method of
1747-20 reporting that is available; and
1748-21 (2) no earlier than 6 months after certification,
1749-22 require each registrant offering sales-based financing or
1750-23 commercial closed-end financings for which interest
1751-24 charges that accrue on the outstanding balance represent a
1752-25 minority of the finance charge to use a commercially
1753-26 reasonable method of reporting as a means of complying
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1764-1 with subsection (d) of this Section.
1765-2 (c) The database created under this program shall be
1766-3 maintained and administered by the Department. The database
1767-4 shall be designed to allow providers to submit information to
1768-5 the database online. The database shall not be designed to
1769-6 allow providers to retrieve information from the database,
1770-7 except as otherwise provided in this Act.
1771-8 (d) Within 30 days after providing funds to a recipient,
1772-9 the provider shall submit to the commercial financing database
1773-10 the information delineated in subsections (e) and (f). If at
1774-11 the time funds are provided to a recipient, certain
1775-12 information delineated in this subsection is not known, then
1776-13 the provider shall submit the information to the commercial
1777-14 financing database within 30 days after the information
1778-15 becoming ascertainable.
1779-16 (e) For sales-based financings, the provider shall submit
1780-17 the following information to the commercial financing
1781-18 database:
1782-19 (1) the FEIN for the recipient;
1783-20 (2) the zip code of the recipient;
1784-21 (3) the date on which the disclosure required under
1785-22 Section 45 was provided;
1786-23 (4) the origination date of the sales-based financing;
1787-24 (5) the total amount of commercial financing;
1788-25 (6) the disbursed amount after any amount deducted or
1789-26 withheld at disbursement, if different than the financing
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1800-1 amount;
1801-2 (7) the finance charge;
1802-3 (8) the estimated annual percentage rate as disclosed
1803-4 to the recipient under paragraph (3) of Section 45;
1804-5 (9) the total repayment amount;
1805-6 (10) the estimated term, as disclosed to the recipient
1806-7 under paragraph (5) of Section 45;
1807-8 (11) the percentage of the recipient's sales upon
1808-9 which the payment is calculated;
1809-10 (12) the frequency of payment, and the total amount of
1810-11 average projected payments per month, as disclosed to the
1811-12 recipient under paragraph (6) of Section 45;
1812-13 (13) whether the projected sales volume used to
1813-14 determine the estimated annual percentage rate, estimated
1814-15 term, and projected payments provided in the disclosure
1815-16 under Section 45 were determined according to the
1816-17 historical method described in subparagraph (A) of
1817-18 paragraph (3) of Section 45 or according to the
1818-19 underwriting method described in subparagraph (B) of
1819-20 paragraph (3) of Section 45;
1820-21 (14) the amount of any finance charge the recipient
1821-22 would be required to pay if the recipient elects to pay off
1822-23 or refinance the sales-based financing before full
1823-24 repayment, as disclosed to the recipient;
1824-25 (15) description of collateral, if any, securing the
1825-26 sales-based financing, including any guarantee;
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1836-1 (16) the position of any lien taken;
1837-2 (17) upon full repayment, if the sales-based financing
1838-3 includes a true-up mechanism, the number of true-ups
1839-4 provided;
1840-5 (18) upon full repayment, the actual term of the
1841-6 commercial financing;
1842-7 (19) upon full repayment, the actual annual percentage
1843-8 rate calculated retrospectively based on the actual
1844-9 payments collected; and
1845-10 (20) all other information requested by the
1846-11 Department.
1847-12 (f) For closed-end financing for which interest charges
1848-13 that accrue on the outstanding balance represent a minority of
1849-14 the finance charge submit, the following information to the
1850-15 commercial financing database:
1851-16 (1) the FEIN for the recipient;
1852-17 (2) the zip code of the recipient;
1853-18 (3) the date on which the disclosure required under
1854-19 Section 50 was provided;
1855-20 (4) the origination date;
1856-21 (5) the total amount of commercial financing;
1857-22 (6) the disbursed amount after any amount deducted or
1858-23 withheld at disbursement, if different than the financing
1859-24 amount;
1860-25 (7) the finance charge;
1861-26 (8) the annual percentage rate as disclosed to the
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1872-1 recipient under paragraph (3) of Section 50;
1873-2 (9) the total repayment amount;
1874-3 (10) the term of the financing;
1875-4 (11) the frequency of payment;
1876-5 (12) the amount of the payment, and the total amount
1877-6 of average projected payments per month, as disclosed to
1878-7 the recipient under paragraph (6) of Section 50;
1879-8 (13) the amount of any finance charge the recipient
1880-9 would be required to pay if the recipient elects to pay off
1881-10 or refinance the commercial financing before full
1882-11 repayment, other than interest accrued since the last
1883-12 payment, as disclosed to the recipient;
1884-13 (14) whether the recipient would be required to pay
1885-14 any additional fees not already included in the finance
1886-15 charge if the recipient elects to pay off or refinance the
1887-16 commercial financing before full repayment, as disclosed
1888-17 to the recipient;
1889-18 (15) description of collateral, if any, securing the
1890-19 commercial financing, including any guarantee;
1891-20 (16) the position of any lien taken; and
1892-21 (17) all other information requested by the
1893-22 Department.
1894-23 (g) All personally identifiable information and
1895-24 information identifying the identity of a recipient obtained
1896-25 by way of the commercial financing database is strictly
1897-26 confidential and shall be exempt from disclosure under the
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1908-1 Freedom of Information Act and any other law or regulation
1909-2 pertaining to the disclosure of information or documents. The
1910-3 Department may, by rule, identify any additional categories of
1911-4 information the disclosure of which would be contrary to the
1912-5 public interest. Any request for production of information
1913-6 from the commercial financing database, whether by subpoena,
1914-7 notice, or any other source, shall be referred to the
1915-8 Department. Any recipient may authorize in writing the release
1916-9 of database information. The Department may use the
1917-10 information in the database without the consent of the
1918-11 recipient or the registrant:
1919-12 (1) for the purposes of administering and enforcing
1920-13 the program;
1921-14 (2) to prepare industry-level reports;
1922-15 (3) to provide information to the appropriate law
1923-16 enforcement agency or the applicable administrative or
1924-17 regulatory agency with a legitimate interest in the
1925-18 information as determined by the Secretary;
1926-19 (4) as required to comply with applicable law; or
1927-20 (5) in any other manner that the Secretary deems is
1928-21 not contrary to the public interest.
1929-22 (h) A registrant who submits information to a certified
1930-23 database provider in accordance with this Section shall not be
1931-24 liable to any person for any subsequent release or disclosure
1932-25 of that information by the certified database provider, the
1933-26 Department, or any other person acquiring possession of the
1934-
1935-
1936-
1937-
1938-
1939- SB2234 Engrossed - 55 - LRB103 28770 BMS 55153 b
1940-
1941-
1942-SB2234 Engrossed- 56 -LRB103 28770 BMS 55153 b SB2234 Engrossed - 56 - LRB103 28770 BMS 55153 b
1943- SB2234 Engrossed - 56 - LRB103 28770 BMS 55153 b
1944-1 information, regardless of whether the subsequent release or
1945-2 disclosure was lawful, authorized, or intentional.
1946-3 (i) In certifying a commercially reasonable method of
1947-4 reporting, the Department shall ensure that the commercial
1948-5 financing database:
1949-6 (1) provides real-time access through an Internet
1950-7 connection;
1951-8 (2) is accessible to the Department and to registrants
1952-9 in order to ensure compliance with this Act and in order to
1953-10 provide any other information that the Department deems
1954-11 necessary;
1955-12 (3) requires registrants to input whatever information
1956-13 is required by the Department;
1957-14 (4) maintains a real-time copy of the required
1958-15 reporting information that is available to the Department
1959-16 at all times and is the property of the Department; and
1960-17 (5) contains safeguards to ensure that all information
1961-18 contained in the database regarding consumers and
1962-19 financing recipients is kept strictly confidential.
1963-20 (j) The certified commercial financing database may charge
1964-21 a fee to a registrant not to exceed $1 for each financing
1965-22 entered into the database. The certified commercial financing
1966-23 database shall not charge any additional fees or charges.
1967-24 (k) The certified commercial financing database provider
1968-25 shall produce an annual report for the Department using the
1969-26 data submitted by registrants to the database. The Department
1970-
1971-
1972-
1973-
1974-
1975- SB2234 Engrossed - 56 - LRB103 28770 BMS 55153 b
1976-
1977-
1978-SB2234 Engrossed- 57 -LRB103 28770 BMS 55153 b SB2234 Engrossed - 57 - LRB103 28770 BMS 55153 b
1979- SB2234 Engrossed - 57 - LRB103 28770 BMS 55153 b
1980-1 may publish this report to the public.
1981-2 Section 170. Severability. The provisions of this Act are
1982-3 severable under Section 1.31 of the Statute on Statutes.
1983-4 Section 900. The Freedom of Information Act is amended by
1984-5 changing Section 7.5 as follows:
1985-6 (5 ILCS 140/7.5)
1986-7 (Text of Section before amendment by P.A. 103-472)
1987-8 Sec. 7.5. Statutory exemptions. To the extent provided for
1988-9 by the statutes referenced below, the following shall be
1989-10 exempt from inspection and copying:
1990-11 (a) All information determined to be confidential
1991-12 under Section 4002 of the Technology Advancement and
1992-13 Development Act.
1993-14 (b) Library circulation and order records identifying
1994-15 library users with specific materials under the Library
1995-16 Records Confidentiality Act.
1996-17 (c) Applications, related documents, and medical
1997-18 records received by the Experimental Organ Transplantation
1998-19 Procedures Board and any and all documents or other
1999-20 records prepared by the Experimental Organ Transplantation
2000-21 Procedures Board or its staff relating to applications it
2001-22 has received.
2002-23 (d) Information and records held by the Department of
2003-
2004-
2005-
2006-
2007-
2008- SB2234 Engrossed - 57 - LRB103 28770 BMS 55153 b
2009-
2010-
2011-SB2234 Engrossed- 58 -LRB103 28770 BMS 55153 b SB2234 Engrossed - 58 - LRB103 28770 BMS 55153 b
2012- SB2234 Engrossed - 58 - LRB103 28770 BMS 55153 b
2013-1 Public Health and its authorized representatives relating
2014-2 to known or suspected cases of sexually transmissible
2015-3 disease or any information the disclosure of which is
2016-4 restricted under the Illinois Sexually Transmissible
2017-5 Disease Control Act.
2018-6 (e) Information the disclosure of which is exempted
2019-7 under Section 30 of the Radon Industry Licensing Act.
2020-8 (f) Firm performance evaluations under Section 55 of
2021-9 the Architectural, Engineering, and Land Surveying
2022-10 Qualifications Based Selection Act.
2023-11 (g) Information the disclosure of which is restricted
2024-12 and exempted under Section 50 of the Illinois Prepaid
2025-13 Tuition Act.
2026-14 (h) Information the disclosure of which is exempted
2027-15 under the State Officials and Employees Ethics Act, and
2028-16 records of any lawfully created State or local inspector
2029-17 general's office that would be exempt if created or
2030-18 obtained by an Executive Inspector General's office under
2031-19 that Act.
2032-20 (i) Information contained in a local emergency energy
2033-21 plan submitted to a municipality in accordance with a
2034-22 local emergency energy plan ordinance that is adopted
2035-23 under Section 11-21.5-5 of the Illinois Municipal Code.
2036-24 (j) Information and data concerning the distribution
2037-25 of surcharge moneys collected and remitted by carriers
2038-26 under the Emergency Telephone System Act.
2039-
2040-
2041-
2042-
2043-
2044- SB2234 Engrossed - 58 - LRB103 28770 BMS 55153 b
2045-
2046-
2047-SB2234 Engrossed- 59 -LRB103 28770 BMS 55153 b SB2234 Engrossed - 59 - LRB103 28770 BMS 55153 b
2048- SB2234 Engrossed - 59 - LRB103 28770 BMS 55153 b
2049-1 (k) Law enforcement officer identification information
2050-2 or driver identification information compiled by a law
2051-3 enforcement agency or the Department of Transportation
2052-4 under Section 11-212 of the Illinois Vehicle Code.
2053-5 (l) Records and information provided to a residential
2054-6 health care facility resident sexual assault and death
2055-7 review team or the Executive Council under the Abuse
2056-8 Prevention Review Team Act.
2057-9 (m) Information provided to the predatory lending
2058-10 database created pursuant to Article 3 of the Residential
2059-11 Real Property Disclosure Act, except to the extent
2060-12 authorized under that Article.
2061-13 (n) Defense budgets and petitions for certification of
2062-14 compensation and expenses for court appointed trial
2063-15 counsel as provided under Sections 10 and 15 of the
2064-16 Capital Crimes Litigation Act (repealed). This subsection
2065-17 (n) shall apply until the conclusion of the trial of the
2066-18 case, even if the prosecution chooses not to pursue the
2067-19 death penalty prior to trial or sentencing.
2068-20 (o) Information that is prohibited from being
2069-21 disclosed under Section 4 of the Illinois Health and
2070-22 Hazardous Substances Registry Act.
2071-23 (p) Security portions of system safety program plans,
2072-24 investigation reports, surveys, schedules, lists, data, or
2073-25 information compiled, collected, or prepared by or for the
2074-26 Department of Transportation under Sections 2705-300 and
2075-
2076-
2077-
2078-
2079-
2080- SB2234 Engrossed - 59 - LRB103 28770 BMS 55153 b
2081-
2082-
2083-SB2234 Engrossed- 60 -LRB103 28770 BMS 55153 b SB2234 Engrossed - 60 - LRB103 28770 BMS 55153 b
2084- SB2234 Engrossed - 60 - LRB103 28770 BMS 55153 b
2085-1 2705-616 of the Department of Transportation Law of the
2086-2 Civil Administrative Code of Illinois, the Regional
2087-3 Transportation Authority under Section 2.11 of the
2088-4 Regional Transportation Authority Act, or the St. Clair
2089-5 County Transit District under the Bi-State Transit Safety
2090-6 Act (repealed).
2091-7 (q) Information prohibited from being disclosed by the
2092-8 Personnel Record Review Act.
2093-9 (r) Information prohibited from being disclosed by the
2094-10 Illinois School Student Records Act.
2095-11 (s) Information the disclosure of which is restricted
2096-12 under Section 5-108 of the Public Utilities Act.
2097-13 (t) (Blank).
2098-14 (u) Records and information provided to an independent
2099-15 team of experts under the Developmental Disability and
2100-16 Mental Health Safety Act (also known as Brian's Law).
2101-17 (v) Names and information of people who have applied
2102-18 for or received Firearm Owner's Identification Cards under
2103-19 the Firearm Owners Identification Card Act or applied for
2104-20 or received a concealed carry license under the Firearm
2105-21 Concealed Carry Act, unless otherwise authorized by the
2106-22 Firearm Concealed Carry Act; and databases under the
2107-23 Firearm Concealed Carry Act, records of the Concealed
2108-24 Carry Licensing Review Board under the Firearm Concealed
2109-25 Carry Act, and law enforcement agency objections under the
2110-26 Firearm Concealed Carry Act.
2111-
2112-
2113-
2114-
2115-
2116- SB2234 Engrossed - 60 - LRB103 28770 BMS 55153 b
2117-
2118-
2119-SB2234 Engrossed- 61 -LRB103 28770 BMS 55153 b SB2234 Engrossed - 61 - LRB103 28770 BMS 55153 b
2120- SB2234 Engrossed - 61 - LRB103 28770 BMS 55153 b
2121-1 (v-5) Records of the Firearm Owner's Identification
2122-2 Card Review Board that are exempted from disclosure under
2123-3 Section 10 of the Firearm Owners Identification Card Act.
2124-4 (w) Personally identifiable information which is
2125-5 exempted from disclosure under subsection (g) of Section
2126-6 19.1 of the Toll Highway Act.
2127-7 (x) Information which is exempted from disclosure
2128-8 under Section 5-1014.3 of the Counties Code or Section
2129-9 8-11-21 of the Illinois Municipal Code.
2130-10 (y) Confidential information under the Adult
2131-11 Protective Services Act and its predecessor enabling
2132-12 statute, the Elder Abuse and Neglect Act, including
2133-13 information about the identity and administrative finding
2134-14 against any caregiver of a verified and substantiated
2135-15 decision of abuse, neglect, or financial exploitation of
2136-16 an eligible adult maintained in the Registry established
2137-17 under Section 7.5 of the Adult Protective Services Act.
2138-18 (z) Records and information provided to a fatality
2139-19 review team or the Illinois Fatality Review Team Advisory
2140-20 Council under Section 15 of the Adult Protective Services
2141-21 Act.
2142-22 (aa) Information which is exempted from disclosure
2143-23 under Section 2.37 of the Wildlife Code.
2144-24 (bb) Information which is or was prohibited from
2145-25 disclosure by the Juvenile Court Act of 1987.
2146-26 (cc) Recordings made under the Law Enforcement
2147-
2148-
2149-
2150-
2151-
2152- SB2234 Engrossed - 61 - LRB103 28770 BMS 55153 b
2153-
2154-
2155-SB2234 Engrossed- 62 -LRB103 28770 BMS 55153 b SB2234 Engrossed - 62 - LRB103 28770 BMS 55153 b
2156- SB2234 Engrossed - 62 - LRB103 28770 BMS 55153 b
2157-1 Officer-Worn Body Camera Act, except to the extent
2158-2 authorized under that Act.
2159-3 (dd) Information that is prohibited from being
2160-4 disclosed under Section 45 of the Condominium and Common
2161-5 Interest Community Ombudsperson Act.
2162-6 (ee) Information that is exempted from disclosure
2163-7 under Section 30.1 of the Pharmacy Practice Act.
2164-8 (ff) Information that is exempted from disclosure
2165-9 under the Revised Uniform Unclaimed Property Act.
2166-10 (gg) Information that is prohibited from being
2167-11 disclosed under Section 7-603.5 of the Illinois Vehicle
2168-12 Code.
2169-13 (hh) Records that are exempt from disclosure under
2170-14 Section 1A-16.7 of the Election Code.
2171-15 (ii) Information which is exempted from disclosure
2172-16 under Section 2505-800 of the Department of Revenue Law of
2173-17 the Civil Administrative Code of Illinois.
2174-18 (jj) Information and reports that are required to be
2175-19 submitted to the Department of Labor by registering day
2176-20 and temporary labor service agencies but are exempt from
2177-21 disclosure under subsection (a-1) of Section 45 of the Day
2178-22 and Temporary Labor Services Act.
2179-23 (kk) Information prohibited from disclosure under the
2180-24 Seizure and Forfeiture Reporting Act.
2181-25 (ll) Information the disclosure of which is restricted
2182-26 and exempted under Section 5-30.8 of the Illinois Public
2183-
2184-
2185-
2186-
2187-
2188- SB2234 Engrossed - 62 - LRB103 28770 BMS 55153 b
2189-
2190-
2191-SB2234 Engrossed- 63 -LRB103 28770 BMS 55153 b SB2234 Engrossed - 63 - LRB103 28770 BMS 55153 b
2192- SB2234 Engrossed - 63 - LRB103 28770 BMS 55153 b
2193-1 Aid Code.
2194-2 (mm) Records that are exempt from disclosure under
2195-3 Section 4.2 of the Crime Victims Compensation Act.
2196-4 (nn) Information that is exempt from disclosure under
2197-5 Section 70 of the Higher Education Student Assistance Act.
2198-6 (oo) Communications, notes, records, and reports
2199-7 arising out of a peer support counseling session
2200-8 prohibited from disclosure under the First Responders
2201-9 Suicide Prevention Act.
2202-10 (pp) Names and all identifying information relating to
2203-11 an employee of an emergency services provider or law
2204-12 enforcement agency under the First Responders Suicide
2205-13 Prevention Act.
2206-14 (qq) Information and records held by the Department of
2207-15 Public Health and its authorized representatives collected
2208-16 under the Reproductive Health Act.
2209-17 (rr) Information that is exempt from disclosure under
2210-18 the Cannabis Regulation and Tax Act.
2211-19 (ss) Data reported by an employer to the Department of
2212-20 Human Rights pursuant to Section 2-108 of the Illinois
2213-21 Human Rights Act.
2214-22 (tt) Recordings made under the Children's Advocacy
2215-23 Center Act, except to the extent authorized under that
2216-24 Act.
2217-25 (uu) Information that is exempt from disclosure under
2218-26 Section 50 of the Sexual Assault Evidence Submission Act.
2219-
2220-
2221-
2222-
2223-
2224- SB2234 Engrossed - 63 - LRB103 28770 BMS 55153 b
2225-
2226-
2227-SB2234 Engrossed- 64 -LRB103 28770 BMS 55153 b SB2234 Engrossed - 64 - LRB103 28770 BMS 55153 b
2228- SB2234 Engrossed - 64 - LRB103 28770 BMS 55153 b
2229-1 (vv) Information that is exempt from disclosure under
2230-2 subsections (f) and (j) of Section 5-36 of the Illinois
2231-3 Public Aid Code.
2232-4 (ww) Information that is exempt from disclosure under
2233-5 Section 16.8 of the State Treasurer Act.
2234-6 (xx) Information that is exempt from disclosure or
2235-7 information that shall not be made public under the
2236-8 Illinois Insurance Code.
2237-9 (yy) Information prohibited from being disclosed under
2238-10 the Illinois Educational Labor Relations Act.
2239-11 (zz) Information prohibited from being disclosed under
2240-12 the Illinois Public Labor Relations Act.
2241-13 (aaa) Information prohibited from being disclosed
2242-14 under Section 1-167 of the Illinois Pension Code.
2243-15 (bbb) Information that is prohibited from disclosure
2244-16 by the Illinois Police Training Act and the Illinois State
2245-17 Police Act.
2246-18 (ccc) Records exempt from disclosure under Section
2247-19 2605-304 of the Illinois State Police Law of the Civil
2248-20 Administrative Code of Illinois.
2249-21 (ddd) Information prohibited from being disclosed
2250-22 under Section 35 of the Address Confidentiality for
2251-23 Victims of Domestic Violence, Sexual Assault, Human
2252-24 Trafficking, or Stalking Act.
2253-25 (eee) Information prohibited from being disclosed
2254-26 under subsection (b) of Section 75 of the Domestic
2255-
2256-
2257-
2258-
2259-
2260- SB2234 Engrossed - 64 - LRB103 28770 BMS 55153 b
2261-
2262-
2263-SB2234 Engrossed- 65 -LRB103 28770 BMS 55153 b SB2234 Engrossed - 65 - LRB103 28770 BMS 55153 b
2264- SB2234 Engrossed - 65 - LRB103 28770 BMS 55153 b
2265-1 Violence Fatality Review Act.
2266-2 (fff) Images from cameras under the Expressway Camera
2267-3 Act. This subsection (fff) is inoperative on and after
2268-4 July 1, 2025.
2269-5 (ggg) Information prohibited from disclosure under
2270-6 paragraph (3) of subsection (a) of Section 14 of the Nurse
2271-7 Agency Licensing Act.
2272-8 (hhh) Information submitted to the Illinois State
2273-9 Police in an affidavit or application for an assault
2274-10 weapon endorsement, assault weapon attachment endorsement,
2275-11 .50 caliber rifle endorsement, or .50 caliber cartridge
2276-12 endorsement under the Firearm Owners Identification Card
2277-13 Act.
2278-14 (iii) Data exempt from disclosure under Section 50 of
2279-15 the School Safety Drill Act.
2280-16 (jjj) (hhh) Information exempt from disclosure under
2281-17 Section 30 of the Insurance Data Security Law.
2282-18 (kkk) (iii) Confidential business information
2283-19 prohibited from disclosure under Section 45 of the Paint
2284-20 Stewardship Act.
2285-21 (lll) (Reserved).
2286-22 (mmm) (iii) Information prohibited from being
2287-23 disclosed under subsection (e) of Section 1-129 of the
2288-24 Illinois Power Agency Act.
2289-25 (nnn) Information exempt from disclosure under Section
2290-26 165 of the Small Business Financing Transparency Act.
2291-
2292-
2293-
2294-
2295-
2296- SB2234 Engrossed - 65 - LRB103 28770 BMS 55153 b
2297-
2298-
2299-SB2234 Engrossed- 66 -LRB103 28770 BMS 55153 b SB2234 Engrossed - 66 - LRB103 28770 BMS 55153 b
2300- SB2234 Engrossed - 66 - LRB103 28770 BMS 55153 b
2301-1 (Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22;
2302-2 102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.
2303-3 8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;
2304-4 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.
2305-5 6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,
2306-6 eff. 1-1-24; 103-508, eff. 8-4-23; 103-580, eff. 12-8-23;
2307-7 revised 1-2-24.)
2308-8 (Text of Section after amendment by P.A. 103-472)
2309-9 Sec. 7.5. Statutory exemptions. To the extent provided for
2310-10 by the statutes referenced below, the following shall be
2311-11 exempt from inspection and copying:
2312-12 (a) All information determined to be confidential
2313-13 under Section 4002 of the Technology Advancement and
2314-14 Development Act.
2315-15 (b) Library circulation and order records identifying
2316-16 library users with specific materials under the Library
2317-17 Records Confidentiality Act.
2318-18 (c) Applications, related documents, and medical
2319-19 records received by the Experimental Organ Transplantation
2320-20 Procedures Board and any and all documents or other
2321-21 records prepared by the Experimental Organ Transplantation
2322-22 Procedures Board or its staff relating to applications it
2323-23 has received.
2324-24 (d) Information and records held by the Department of
2325-25 Public Health and its authorized representatives relating
2326-
2327-
2328-
2329-
2330-
2331- SB2234 Engrossed - 66 - LRB103 28770 BMS 55153 b
2332-
2333-
2334-SB2234 Engrossed- 67 -LRB103 28770 BMS 55153 b SB2234 Engrossed - 67 - LRB103 28770 BMS 55153 b
2335- SB2234 Engrossed - 67 - LRB103 28770 BMS 55153 b
2336-1 to known or suspected cases of sexually transmissible
2337-2 disease or any information the disclosure of which is
2338-3 restricted under the Illinois Sexually Transmissible
2339-4 Disease Control Act.
2340-5 (e) Information the disclosure of which is exempted
2341-6 under Section 30 of the Radon Industry Licensing Act.
2342-7 (f) Firm performance evaluations under Section 55 of
2343-8 the Architectural, Engineering, and Land Surveying
2344-9 Qualifications Based Selection Act.
2345-10 (g) Information the disclosure of which is restricted
2346-11 and exempted under Section 50 of the Illinois Prepaid
2347-12 Tuition Act.
2348-13 (h) Information the disclosure of which is exempted
2349-14 under the State Officials and Employees Ethics Act, and
2350-15 records of any lawfully created State or local inspector
2351-16 general's office that would be exempt if created or
2352-17 obtained by an Executive Inspector General's office under
2353-18 that Act.
2354-19 (i) Information contained in a local emergency energy
2355-20 plan submitted to a municipality in accordance with a
2356-21 local emergency energy plan ordinance that is adopted
2357-22 under Section 11-21.5-5 of the Illinois Municipal Code.
2358-23 (j) Information and data concerning the distribution
2359-24 of surcharge moneys collected and remitted by carriers
2360-25 under the Emergency Telephone System Act.
2361-26 (k) Law enforcement officer identification information
2362-
2363-
2364-
2365-
2366-
2367- SB2234 Engrossed - 67 - LRB103 28770 BMS 55153 b
2368-
2369-
2370-SB2234 Engrossed- 68 -LRB103 28770 BMS 55153 b SB2234 Engrossed - 68 - LRB103 28770 BMS 55153 b
2371- SB2234 Engrossed - 68 - LRB103 28770 BMS 55153 b
2372-1 or driver identification information compiled by a law
2373-2 enforcement agency or the Department of Transportation
2374-3 under Section 11-212 of the Illinois Vehicle Code.
2375-4 (l) Records and information provided to a residential
2376-5 health care facility resident sexual assault and death
2377-6 review team or the Executive Council under the Abuse
2378-7 Prevention Review Team Act.
2379-8 (m) Information provided to the predatory lending
2380-9 database created pursuant to Article 3 of the Residential
2381-10 Real Property Disclosure Act, except to the extent
2382-11 authorized under that Article.
2383-12 (n) Defense budgets and petitions for certification of
2384-13 compensation and expenses for court appointed trial
2385-14 counsel as provided under Sections 10 and 15 of the
2386-15 Capital Crimes Litigation Act (repealed). This subsection
2387-16 (n) shall apply until the conclusion of the trial of the
2388-17 case, even if the prosecution chooses not to pursue the
2389-18 death penalty prior to trial or sentencing.
2390-19 (o) Information that is prohibited from being
2391-20 disclosed under Section 4 of the Illinois Health and
2392-21 Hazardous Substances Registry Act.
2393-22 (p) Security portions of system safety program plans,
2394-23 investigation reports, surveys, schedules, lists, data, or
2395-24 information compiled, collected, or prepared by or for the
2396-25 Department of Transportation under Sections 2705-300 and
2397-26 2705-616 of the Department of Transportation Law of the
2398-
2399-
2400-
2401-
2402-
2403- SB2234 Engrossed - 68 - LRB103 28770 BMS 55153 b
2404-
2405-
2406-SB2234 Engrossed- 69 -LRB103 28770 BMS 55153 b SB2234 Engrossed - 69 - LRB103 28770 BMS 55153 b
2407- SB2234 Engrossed - 69 - LRB103 28770 BMS 55153 b
2408-1 Civil Administrative Code of Illinois, the Regional
2409-2 Transportation Authority under Section 2.11 of the
2410-3 Regional Transportation Authority Act, or the St. Clair
2411-4 County Transit District under the Bi-State Transit Safety
2412-5 Act (repealed).
2413-6 (q) Information prohibited from being disclosed by the
2414-7 Personnel Record Review Act.
2415-8 (r) Information prohibited from being disclosed by the
2416-9 Illinois School Student Records Act.
2417-10 (s) Information the disclosure of which is restricted
2418-11 under Section 5-108 of the Public Utilities Act.
2419-12 (t) (Blank).
2420-13 (u) Records and information provided to an independent
2421-14 team of experts under the Developmental Disability and
2422-15 Mental Health Safety Act (also known as Brian's Law).
2423-16 (v) Names and information of people who have applied
2424-17 for or received Firearm Owner's Identification Cards under
2425-18 the Firearm Owners Identification Card Act or applied for
2426-19 or received a concealed carry license under the Firearm
2427-20 Concealed Carry Act, unless otherwise authorized by the
2428-21 Firearm Concealed Carry Act; and databases under the
2429-22 Firearm Concealed Carry Act, records of the Concealed
2430-23 Carry Licensing Review Board under the Firearm Concealed
2431-24 Carry Act, and law enforcement agency objections under the
2432-25 Firearm Concealed Carry Act.
2433-26 (v-5) Records of the Firearm Owner's Identification
2434-
2435-
2436-
2437-
2438-
2439- SB2234 Engrossed - 69 - LRB103 28770 BMS 55153 b
2440-
2441-
2442-SB2234 Engrossed- 70 -LRB103 28770 BMS 55153 b SB2234 Engrossed - 70 - LRB103 28770 BMS 55153 b
2443- SB2234 Engrossed - 70 - LRB103 28770 BMS 55153 b
2444-1 Card Review Board that are exempted from disclosure under
2445-2 Section 10 of the Firearm Owners Identification Card Act.
2446-3 (w) Personally identifiable information which is
2447-4 exempted from disclosure under subsection (g) of Section
2448-5 19.1 of the Toll Highway Act.
2449-6 (x) Information which is exempted from disclosure
2450-7 under Section 5-1014.3 of the Counties Code or Section
2451-8 8-11-21 of the Illinois Municipal Code.
2452-9 (y) Confidential information under the Adult
2453-10 Protective Services Act and its predecessor enabling
2454-11 statute, the Elder Abuse and Neglect Act, including
2455-12 information about the identity and administrative finding
2456-13 against any caregiver of a verified and substantiated
2457-14 decision of abuse, neglect, or financial exploitation of
2458-15 an eligible adult maintained in the Registry established
2459-16 under Section 7.5 of the Adult Protective Services Act.
2460-17 (z) Records and information provided to a fatality
2461-18 review team or the Illinois Fatality Review Team Advisory
2462-19 Council under Section 15 of the Adult Protective Services
2463-20 Act.
2464-21 (aa) Information which is exempted from disclosure
2465-22 under Section 2.37 of the Wildlife Code.
2466-23 (bb) Information which is or was prohibited from
2467-24 disclosure by the Juvenile Court Act of 1987.
2468-25 (cc) Recordings made under the Law Enforcement
2469-26 Officer-Worn Body Camera Act, except to the extent
2470-
2471-
2472-
2473-
2474-
2475- SB2234 Engrossed - 70 - LRB103 28770 BMS 55153 b
2476-
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2478-SB2234 Engrossed- 71 -LRB103 28770 BMS 55153 b SB2234 Engrossed - 71 - LRB103 28770 BMS 55153 b
2479- SB2234 Engrossed - 71 - LRB103 28770 BMS 55153 b
2480-1 authorized under that Act.
2481-2 (dd) Information that is prohibited from being
2482-3 disclosed under Section 45 of the Condominium and Common
2483-4 Interest Community Ombudsperson Act.
2484-5 (ee) Information that is exempted from disclosure
2485-6 under Section 30.1 of the Pharmacy Practice Act.
2486-7 (ff) Information that is exempted from disclosure
2487-8 under the Revised Uniform Unclaimed Property Act.
2488-9 (gg) Information that is prohibited from being
2489-10 disclosed under Section 7-603.5 of the Illinois Vehicle
2490-11 Code.
2491-12 (hh) Records that are exempt from disclosure under
2492-13 Section 1A-16.7 of the Election Code.
2493-14 (ii) Information which is exempted from disclosure
2494-15 under Section 2505-800 of the Department of Revenue Law of
2495-16 the Civil Administrative Code of Illinois.
2496-17 (jj) Information and reports that are required to be
2497-18 submitted to the Department of Labor by registering day
2498-19 and temporary labor service agencies but are exempt from
2499-20 disclosure under subsection (a-1) of Section 45 of the Day
2500-21 and Temporary Labor Services Act.
2501-22 (kk) Information prohibited from disclosure under the
2502-23 Seizure and Forfeiture Reporting Act.
2503-24 (ll) Information the disclosure of which is restricted
2504-25 and exempted under Section 5-30.8 of the Illinois Public
2505-26 Aid Code.
2506-
2507-
2508-
2509-
2510-
2511- SB2234 Engrossed - 71 - LRB103 28770 BMS 55153 b
2512-
2513-
2514-SB2234 Engrossed- 72 -LRB103 28770 BMS 55153 b SB2234 Engrossed - 72 - LRB103 28770 BMS 55153 b
2515- SB2234 Engrossed - 72 - LRB103 28770 BMS 55153 b
2516-1 (mm) Records that are exempt from disclosure under
2517-2 Section 4.2 of the Crime Victims Compensation Act.
2518-3 (nn) Information that is exempt from disclosure under
2519-4 Section 70 of the Higher Education Student Assistance Act.
2520-5 (oo) Communications, notes, records, and reports
2521-6 arising out of a peer support counseling session
2522-7 prohibited from disclosure under the First Responders
2523-8 Suicide Prevention Act.
2524-9 (pp) Names and all identifying information relating to
2525-10 an employee of an emergency services provider or law
2526-11 enforcement agency under the First Responders Suicide
2527-12 Prevention Act.
2528-13 (qq) Information and records held by the Department of
2529-14 Public Health and its authorized representatives collected
2530-15 under the Reproductive Health Act.
2531-16 (rr) Information that is exempt from disclosure under
2532-17 the Cannabis Regulation and Tax Act.
2533-18 (ss) Data reported by an employer to the Department of
2534-19 Human Rights pursuant to Section 2-108 of the Illinois
2535-20 Human Rights Act.
2536-21 (tt) Recordings made under the Children's Advocacy
2537-22 Center Act, except to the extent authorized under that
2538-23 Act.
2539-24 (uu) Information that is exempt from disclosure under
2540-25 Section 50 of the Sexual Assault Evidence Submission Act.
2541-26 (vv) Information that is exempt from disclosure under
2542-
2543-
2544-
2545-
2546-
2547- SB2234 Engrossed - 72 - LRB103 28770 BMS 55153 b
2548-
2549-
2550-SB2234 Engrossed- 73 -LRB103 28770 BMS 55153 b SB2234 Engrossed - 73 - LRB103 28770 BMS 55153 b
2551- SB2234 Engrossed - 73 - LRB103 28770 BMS 55153 b
2552-1 subsections (f) and (j) of Section 5-36 of the Illinois
2553-2 Public Aid Code.
2554-3 (ww) Information that is exempt from disclosure under
2555-4 Section 16.8 of the State Treasurer Act.
2556-5 (xx) Information that is exempt from disclosure or
2557-6 information that shall not be made public under the
2558-7 Illinois Insurance Code.
2559-8 (yy) Information prohibited from being disclosed under
2560-9 the Illinois Educational Labor Relations Act.
2561-10 (zz) Information prohibited from being disclosed under
2562-11 the Illinois Public Labor Relations Act.
2563-12 (aaa) Information prohibited from being disclosed
2564-13 under Section 1-167 of the Illinois Pension Code.
2565-14 (bbb) Information that is prohibited from disclosure
2566-15 by the Illinois Police Training Act and the Illinois State
2567-16 Police Act.
2568-17 (ccc) Records exempt from disclosure under Section
2569-18 2605-304 of the Illinois State Police Law of the Civil
2570-19 Administrative Code of Illinois.
2571-20 (ddd) Information prohibited from being disclosed
2572-21 under Section 35 of the Address Confidentiality for
2573-22 Victims of Domestic Violence, Sexual Assault, Human
2574-23 Trafficking, or Stalking Act.
2575-24 (eee) Information prohibited from being disclosed
2576-25 under subsection (b) of Section 75 of the Domestic
2577-26 Violence Fatality Review Act.
2578-
2579-
2580-
2581-
2582-
2583- SB2234 Engrossed - 73 - LRB103 28770 BMS 55153 b
2584-
2585-
2586-SB2234 Engrossed- 74 -LRB103 28770 BMS 55153 b SB2234 Engrossed - 74 - LRB103 28770 BMS 55153 b
2587- SB2234 Engrossed - 74 - LRB103 28770 BMS 55153 b
2588-1 (fff) Images from cameras under the Expressway Camera
2589-2 Act. This subsection (fff) is inoperative on and after
2590-3 July 1, 2025.
2591-4 (ggg) Information prohibited from disclosure under
2592-5 paragraph (3) of subsection (a) of Section 14 of the Nurse
2593-6 Agency Licensing Act.
2594-7 (hhh) Information submitted to the Illinois State
2595-8 Police in an affidavit or application for an assault
2596-9 weapon endorsement, assault weapon attachment endorsement,
2597-10 .50 caliber rifle endorsement, or .50 caliber cartridge
2598-11 endorsement under the Firearm Owners Identification Card
2599-12 Act.
2600-13 (iii) Data exempt from disclosure under Section 50 of
2601-14 the School Safety Drill Act.
2602-15 (jjj) (hhh) Information exempt from disclosure under
2603-16 Section 30 of the Insurance Data Security Law.
2604-17 (kkk) (iii) Confidential business information
2605-18 prohibited from disclosure under Section 45 of the Paint
2606-19 Stewardship Act.
2607-20 (lll) (iii) Data exempt from disclosure under Section
2608-21 2-3.196 of the School Code.
2609-22 (mmm) (iii) Information prohibited from being
2610-23 disclosed under subsection (e) of Section 1-129 of the
2611-24 Illinois Power Agency Act.
2612-25 (nnn) Information exempt from disclosure under Section
2613-26 165 of the Small Business Financing Transparency Act.
2614-
2615-
2616-
2617-
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2619- SB2234 Engrossed - 74 - LRB103 28770 BMS 55153 b
2620-
2621-
2622-SB2234 Engrossed- 75 -LRB103 28770 BMS 55153 b SB2234 Engrossed - 75 - LRB103 28770 BMS 55153 b
2623- SB2234 Engrossed - 75 - LRB103 28770 BMS 55153 b
2624-1 (Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22;
2625-2 102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.
2626-3 8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;
2627-4 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.
2628-5 6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,
2629-6 eff. 1-1-24; 103-472, eff. 8-1-24; 103-508, eff. 8-4-23;
2630-7 103-580, eff. 12-8-23; revised 1-2-24.)
2631-8 Section 905. The Consumer Fraud and Deceptive Business
2632-9 Practices Act is amended by adding Section 2EEEE as follows:
2633-10 (815 ILCS 505/2EEEE new)
2634-11 Sec. 2EEEE. Violations of the Small Business Financing
2635-12 Transparency Act. Any person who violates the Small Business
2636-13 Financing Transparency Act commits an unlawful practice within
2637-14 the meaning of this Act.
2638-15 Section 995. No acceleration or delay. Where this Act
2639-16 makes changes in a statute that is represented in this Act by
2640-17 text that is not yet or no longer in effect (for example, a
2641-18 Section represented by multiple versions), the use of that
2642-19 text does not accelerate or delay the taking effect of (i) the
2643-20 changes made by this Act or (ii) provisions derived from any
2644-21 other Public Act.
2645-
2646-
2647-
2648-
2649-
2650- SB2234 Engrossed - 75 - LRB103 28770 BMS 55153 b
938+ SB2234 - 26 - LRB103 28770 BMS 55153 b