Illinois 2025-2026 Regular Session

Illinois Senate Bill SB0260 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0260 Introduced 1/24/2025, by Sen. Christopher Belt SYNOPSIS AS INTRODUCED: New Act5 ILCS 140/7.5815 ILCS 505/2HHHH new Creates the Small Business Financing Transparency Act. Sets forth provisions concerning registration requirements for persons providing commercial financing; additional registration information; registration expiration; functions, power, and duties; subpoena power of the Secretary of Financial and Professional Regulation; disclosure requirements; commercial financing disclosure forms approved for use in other states; violation of disclosure requirements; notification; suspension of registrations, civil penalties, and other discipline; investigation of complaints; confidentiality; appeal and review; registration fees; cease and desist orders; injunctions; exemptions; complaint disclosure; rules; violations; limitations on liability; beginning of registration; beginning of disclosure requirements; severability; and a commercial financing database. Amends the Freedom of Information Act and the Consumer Fraud and Deceptive Business Practices Act to make conforming changes. Effective immediately. LRB104 06474 BAB 16510 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0260 Introduced 1/24/2025, by Sen. Christopher Belt SYNOPSIS AS INTRODUCED: New Act5 ILCS 140/7.5815 ILCS 505/2HHHH new New Act 5 ILCS 140/7.5 815 ILCS 505/2HHHH new Creates the Small Business Financing Transparency Act. Sets forth provisions concerning registration requirements for persons providing commercial financing; additional registration information; registration expiration; functions, power, and duties; subpoena power of the Secretary of Financial and Professional Regulation; disclosure requirements; commercial financing disclosure forms approved for use in other states; violation of disclosure requirements; notification; suspension of registrations, civil penalties, and other discipline; investigation of complaints; confidentiality; appeal and review; registration fees; cease and desist orders; injunctions; exemptions; complaint disclosure; rules; violations; limitations on liability; beginning of registration; beginning of disclosure requirements; severability; and a commercial financing database. Amends the Freedom of Information Act and the Consumer Fraud and Deceptive Business Practices Act to make conforming changes. Effective immediately. LRB104 06474 BAB 16510 b LRB104 06474 BAB 16510 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0260 Introduced 1/24/2025, by Sen. Christopher Belt SYNOPSIS AS INTRODUCED:
3	3	New Act5 ILCS 140/7.5815 ILCS 505/2HHHH new New Act 5 ILCS 140/7.5 815 ILCS 505/2HHHH new
4	4	New Act
5	5	5 ILCS 140/7.5
6	6	815 ILCS 505/2HHHH new
7	7	Creates the Small Business Financing Transparency Act. Sets forth provisions concerning registration requirements for persons providing commercial financing; additional registration information; registration expiration; functions, power, and duties; subpoena power of the Secretary of Financial and Professional Regulation; disclosure requirements; commercial financing disclosure forms approved for use in other states; violation of disclosure requirements; notification; suspension of registrations, civil penalties, and other discipline; investigation of complaints; confidentiality; appeal and review; registration fees; cease and desist orders; injunctions; exemptions; complaint disclosure; rules; violations; limitations on liability; beginning of registration; beginning of disclosure requirements; severability; and a commercial financing database. Amends the Freedom of Information Act and the Consumer Fraud and Deceptive Business Practices Act to make conforming changes. Effective immediately.
8	8	LRB104 06474 BAB 16510 b LRB104 06474 BAB 16510 b
9	9	LRB104 06474 BAB 16510 b
10	10	A BILL FOR
11	11	SB0260LRB104 06474 BAB 16510 b SB0260 LRB104 06474 BAB 16510 b
12	12	SB0260 LRB104 06474 BAB 16510 b
13	13	1 AN ACT concerning regulation.
14	14	2 Be it enacted by the People of the State of Illinois,
15	15	3 represented in the General Assembly:
16	16	4 Section 1. Short title. This Act may be cited as the Small
17	17	5 Business Financing Transparency Act.
18	18	6 Section 2. Purpose and construction. The purpose of this
19	19	7 Act is to protect business owners. This Act shall be liberally
20	20	8 construed to effectuate its purpose.
21	21	9 Section 5. Definitions. As used in this Act:
22	22	10 "Applicant" means a person who has submitted an
23	23	11 application for a registration under this Act.
24	24	12 "Closed-end financing" means a closed-end extension of
25	25	13 credit, secured or unsecured, recourse or nonrecourse,
26	26	14 including equipment financing that does not meet the
27	27	15 definition of a lease under Section 2A-103 of the Uniform
28	28	16 Commercial Code, that the recipient does not intend to use for
29	29	17 personal, family, or household purposes. "Closed-end
30	30	18 financing" includes financing with an established principal
31	31	19 amount and duration.
32	32	20 "Commercial financing database" means a reporting database
33	33	21 certified by the Department as effective in receiving a report
34	34	22 of commercial financing made under this Act.
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38	38	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0260 Introduced 1/24/2025, by Sen. Christopher Belt SYNOPSIS AS INTRODUCED:
39	39	New Act5 ILCS 140/7.5815 ILCS 505/2HHHH new New Act 5 ILCS 140/7.5 815 ILCS 505/2HHHH new
40	40	New Act
41	41	5 ILCS 140/7.5
42	42	815 ILCS 505/2HHHH new
43	43	Creates the Small Business Financing Transparency Act. Sets forth provisions concerning registration requirements for persons providing commercial financing; additional registration information; registration expiration; functions, power, and duties; subpoena power of the Secretary of Financial and Professional Regulation; disclosure requirements; commercial financing disclosure forms approved for use in other states; violation of disclosure requirements; notification; suspension of registrations, civil penalties, and other discipline; investigation of complaints; confidentiality; appeal and review; registration fees; cease and desist orders; injunctions; exemptions; complaint disclosure; rules; violations; limitations on liability; beginning of registration; beginning of disclosure requirements; severability; and a commercial financing database. Amends the Freedom of Information Act and the Consumer Fraud and Deceptive Business Practices Act to make conforming changes. Effective immediately.
44	44	LRB104 06474 BAB 16510 b LRB104 06474 BAB 16510 b
45	45	LRB104 06474 BAB 16510 b
46	46	A BILL FOR
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52	52	New Act
53	53	5 ILCS 140/7.5
54	54	815 ILCS 505/2HHHH new
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73	73	1 "Commercial financing database provider" means an entity
74	74	2 that provides a reporting database certified by the Department
75	75	3 under this Act.
76	76	4 "Commercial financing" means open-end financing,
77	77	5 closed-end financing, sales-based financing, factoring
78	78	6 transaction, or other form of financing, the proceeds of which
79	79	7 the recipient does not intend to use primarily for personal,
80	80	8 family, or household purposes. For purposes of determining
81	81	9 whether a financing is a commercial financing, the provider
82	82	10 may rely on any statement of intended purposes by the
83	83	11 recipient. The statement may be a separate statement signed by
84	84	12 the recipient; may be contained in the financing application,
85	85	13 financing agreement, or other document signed or consented to
86	86	14 by the recipient; or may be provided orally by the recipient so
87	87	15 long as it is documented in the recipient's application file
88	88	16 by the provider. Electronic signatures and consents are valid
89	89	17 for purposes of the foregoing sentence. The provider shall not
90	90	18 be required to ascertain that the proceeds of a commercial
91	91	19 financing are used in accordance with the recipient's
92	92	20 statement of intended purposes.
93	93	21 "Department" means the Department of Financial and
94	94	22 Professional Regulation.
95	95	23 "Division of Financial Institutions" or "Division" means
96	96	24 the Division of Financial Institutions of the Department of
97	97	25 Financial and Professional Regulation.
98	98	26 "Factoring transaction" means an accounts receivable
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109	109	1 purchase transaction that includes an agreement to purchase,
110	110	2 transfer, or sell a legally enforceable claim for payment held
111	111	3 by a recipient for goods the recipient has supplied or
112	112	4 services the recipient has rendered that have been ordered but
113	113	5 for which payment has not yet been made.
114	114	6 "Finance charge" means the cost of financing as a dollar
115	115	7 amount. "Finance charge" includes any charge payable directly
116	116	8 or indirectly by the recipient and imposed directly or
117	117	9 indirectly by the provider as an incident to or a condition of
118	118	10 the extension of financing. "Finance charge" includes any
119	119	11 charges as determined by the Secretary. For the purposes of an
120	120	12 open-end financing, "finance charge" means the maximum amount
121	121	13 of credit available to the recipient, in each case, that is
122	122	14 drawn and held for the duration of the term or draw period. For
123	123	15 the purposes of a factoring transaction, "finance charge"
124	124	16 includes the discount taken on the face value of the accounts
125	125	17 receivable. In addition, the finance charge shall include any
126	126	18 charges determined by the Secretary.
127	127	19 "Open-end financing" means an agreement for one or more
128	128	20 extensions of open-end credit, secured or unsecured, that the
129	129	21 recipient does not intend to use the proceeds of primarily for
130	130	22 personal, family, or household purposes. "Open-end financing"
131	131	23 includes credit extended by a provider under a plan in which:
132	132	24 (i) the provider reasonably contemplates repeated
133	133	25 transactions; (ii) the provider may impose a finance charge
134	134	26 from time to time on an outstanding unpaid balance; and (iii)
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145	145	1 the amount of credit that may be extended to the recipient
146	146	2 during the term of the plan is generally made available to the
147	147	3 extent that any outstanding balance is repaid.
148	148	4 "Person" means an individual, entity, corporation,
149	149	5 partnership, limited liability company, joint venture,
150	150	6 association, joint stock company, trust, or unincorporated
151	151	7 organization, including, but not limited to, a sole
152	152	8 proprietorship.
153	153	9 "Provider" means a person who extends a specific offer of
154	154	10 commercial financing to a recipient. "Provider", unless
155	155	11 otherwise exempt, includes a person who solicits and presents
156	156	12 specific offers of commercial financing on behalf of a third
157	157	13 party. The mere extension of a specific offer or provision of
158	158	14 disclosures for a commercial financing, is not sufficient to
159	159	15 conclude that a provider is originating, making, funding, or
160	160	16 providing commercial financing. "Provider" does not include:
161	161	17 (1) a bank, trust company, or industrial loan company,
162	162	18 or any subsidiary or affiliate thereof, doing business
163	163	19 under the authority of, or in accordance with, a license,
164	164	20 certificate or charter issued by the United States, this
165	165	21 State, or any other state, district, territory, or
166	166	22 commonwealth of the United States that is authorized to
167	167	23 transact business in this State;
168	168	24 (2) a federally chartered savings and loan
169	169	25 association, federal savings bank, or federal credit
170	170	26 union, or any subsidiary or affiliate thereof, that is
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181	181	1 authorized to transact business in this State;
182	182	2 (3) a savings and loan association, savings bank, or
183	183	3 credit union, or any subsidiary or affiliate thereof,
184	184	4 organized under the laws of this State or any other state
185	185	5 that is authorized to transact business in this State;
186	186	6 (4) a lender regulated under the federal Farm Credit
187	187	7 Act; and
188	188	8 (5) a person acting as a technology services provider
189	189	9 to an entity described by sub-paragraphs (1), (2), or (3)
190	190	10 for use as part of that entity's commercial financing
191	191	11 program, provided the person has no interest, or
192	192	12 arrangement, or agreement to purchase any interest in the
193	193	13 commercial financing extended by the entity in connection
194	194	14 with the program.
195	195	15 "Recipient" means a person located in the State of
196	196	16 Illinois who applies for commercial financing and is made a
197	197	17 specific offer of commercial financing by a provider. For the
198	198	18 purpose of determining whether a recipient is located in
199	199	19 Illinois, a provider may rely upon (i) any written
200	200	20 representation by the recipient as to whether it is located in
201	201	21 Illinois; or (ii) the business address provided by the
202	202	22 recipient in the application for commercial financing showing
203	203	23 that the recipient is located in Illinois. "Recipient"
204	204	24 includes an authorized representative of a person who applies
205	205	25 for commercial financing and is made a specific offer of
206	206	26 commercial financing by a provider. "Recipient" does not
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217	217	1 include a person acting as a broker is not a recipient in a
218	218	2 transaction they broker.
219	219	3 "Sales-based financing" means a transaction that is repaid
220	220	4 by the recipient to the provider, over time, as a percentage of
221	221	5 sales or revenue, in which the payment amount may increase or
222	222	6 decrease according to the volume of sales made or revenue
223	223	7 received by the recipient or a transaction that includes a
224	224	8 true-up mechanism where the financing is repaid as a fixed
225	225	9 payment but provides for a reconciliation process that adjusts
226	226	10 the payment to an amount that is a percentage of sales or
227	227	11 revenue.
228	228	12 "Secretary" means the Secretary of Financial and
229	229	13 Professional Regulation or a person authorized by the
230	230	14 Secretary to perform the Secretary's responsibilities under
231	231	15 this Act.
232	232	16 "Specific offer" means the specific terms of commercial
233	233	17 financing, including price or amount, that is quoted to a
234	234	18 recipient based on information obtained from or about the
235	235	19 recipient that, if accepted by a recipient, shall be binding
236	236	20 on the provider, as applicable, subject to any specific
237	237	21 requirements stated in the specific terms.
238	238	22 "True-up mechanism" means, with respect to sales-based
239	239	23 financing, a contractual arrangement with all the following
240	240	24 elements:
241	241	25 (1) The financer receives periodic payments based upon
242	242	26 a pre-set amount stated in the contract.
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253	253	1 (2) The contract allows the recipient to request, or
254	254	2 the financer to initiate, adjustments to the payment
255	255	3 amount, credits to the recipient, or charges to the
256	256	4 recipient after execution of the contract, so that the
257	257	5 total amount paid by the recipient more closely reflects a
258	258	6 split rate listed in the contract.
259	259	7 Section 10. Applicability.
260	260	8 (a) Except as otherwise provided in this Section, this Act
261	261	9 applies to any person that offers or provides commercial
262	262	10 financing in Illinois or is otherwise a provider.
263	263	11 (b) The provisions of this Act apply to any person that
264	264	12 seeks to evade its applicability by any device, subterfuge, or
265	265	13 pretense whatsoever.
266	266	14 (c) The provisions of this Act apply to any person that
267	267	15 aids or facilitates a violation of this Act.
268	268	16 (d) The provisions of this Act do not apply to:
269	269	17 (1) a bank, trust company, or industrial loan company
270	270	18 doing business under the authority of, or in accordance
271	271	19 with, a license, certificate or charter issued by the
272	272	20 United States, this State, or any other state, district,
273	273	21 territory, or commonwealth of the United States that is
274	274	22 authorized to transact business in this State;
275	275	23 (2) a federally chartered savings and loan
276	276	24 association, federal savings bank, or federal credit union
277	277	25 that is authorized to transact business in this State;
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288	288	1 (3) a savings and loan association, savings bank, or
289	289	2 credit union organized under the laws of this State or any
290	290	3 other state that is authorized to transact business in
291	291	4 this State;
292	292	5 (4) a lender regulated under the federal Farm Credit
293	293	6 Act; and
294	294	7 (5) a person acting in the person's capacity as a
295	295	8 technology services provider to an entity described by
296	296	9 sub-paragraphs (1), (2), or (3) for use as part of that
297	297	10 entity's commercial financing program, provided the person
298	298	11 has no interest, or arrangement, or agreement to purchase
299	299	12 any interest in the commercial financing extended by the
300	300	13 entity in connection with the program.
301	301	14 Section 15. Division of Financial Institutions. This Act
302	302	15 shall be administered by the Division on behalf of the
303	303	16 Secretary.
304	304	17 Section 20. Registration requirement.
305	305	18 (a) It is unlawful for a person to engage in the conduct
306	306	19 regulated by this Act unless the person: (i) registers with
307	307	20 the Secretary in accordance with this Section; and (ii)
308	308	21 maintains a valid registration. An officer or employee of a
309	309	22 person required to register under this Section is not required
310	310	23 to register if the person for whom the individual is an officer
311	311	24 or employee is registered.
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322	322	1 (b) Application for registration and renewal of
323	323	2 registration shall be made in accordance with this Act and
324	324	3 with the requirements of the multistate licensing system, if
325	325	4 required by the Secretary. The application shall be in
326	326	5 writing, under oath, and on a form obtained from and
327	327	6 prescribed by the Secretary. The Secretary may change or
328	328	7 update the form to carry out the purposes of this Act. The
329	329	8 Secretary may require part or all of the application to be
330	330	9 submitted electronically, with attestation, to the multistate
331	331	10 licensing system.
332	332	11 (c) Registrants shall apply to renew their registration
333	333	12 every calendar year. Registrants may submit properly completed
334	334	13 renewal application forms and filing fees 60 days before the
335	335	14 registration expiration date, and the same shall be received
336	336	15 by the Secretary at least 30 days before the registration
337	337	16 expiration date. Absent a written extension from the
338	338	17 Department, a registration shall expire on December 31 of each
339	339	18 year if a registrant fails to timely submit a properly
340	340	19 completed renewal application and fees.
341	341	20 (d) Upon receipt of the registration, a registrant is
342	342	21 authorized to engage in conduct regulated by this Act. The
343	343	22 registration shall remain in full force and effect until it
344	344	23 expires, is withdrawn by the registrant, or is revoked or
345	345	24 suspended as provided in this Act.
346	346	25 (e) To register under this Section, an applicant shall:
347	347	26 (1) pay a registration fee of $2,500 to the
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358	358	1 Department; and
359	359	2 (2) submit a registration statement containing the
360	360	3 information described in subsection (g).
361	361	4 (f) To renew a registration under this Section, a person
362	362	5 shall:
363	363	6 (1) pay the annual fee of $2,500 to the Department;
364	364	7 and
365	365	8 (2) submit a renewal statement containing the
366	366	9 information described in subsection (g).
367	367	10 (g) A registration or renewal statement must be submitted
368	368	11 to the Secretary or to a multistate licensing system as
369	369	12 approved by the Secretary. The registration or renewal
370	370	13 statement shall include:
371	371	14 (1) the name of the person;
372	372	15 (2) the name in which the business will be transacted
373	373	16 if different from that required in paragraph (1), which
374	374	17 must be properly registered as an assumed corporate name
375	375	18 under the Business Corporation Act of 1983, an assumed
376	376	19 limited liability company name under the Limited Liability
377	377	20 Company Act, or an assumed business name under the Assumed
378	378	21 Business Name Act;
379	379	22 (3) the address of the person's principal business
380	380	23 office;
381	381	24 (4) the address of each office in this State at which
382	382	25 the person engages in commercial financing transactions;
383	383	26 (5) if the person engages in commercial financing
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394	394	1 transactions in this State but does not maintain an office
395	395	2 in this State, a brief description of the manner in which
396	396	3 the business is conducted;
397	397	4 (6) if the person conducts business through an agent
398	398	5 located in this State, the name and address in this State
399	399	6 of the person's agent properly registered with the
400	400	7 Secretary of State;
401	401	8 (7) for a registration application, whether the
402	402	9 person, an officer, director, manager, operator, or
403	403	10 principal of the person, or an employee of the person
404	404	11 engaged in the business of commercial financing has been
405	405	12 convicted of a crime involving an act of fraud,
406	406	13 dishonesty, breach of trust, or money laundering; if the
407	407	14 applicant answers yes to this paragraph, then the
408	408	15 applicant shall report the names, titles or relationship
409	409	16 to the applicant or registrant, and the nature of the
410	410	17 covered crime;
411	411	18 (8) for a renewal application, whether, in the past
412	412	19 year, the person, an officer, director, manager, operator,
413	413	20 or principal of the person, or an employee of the person
414	414	21 engaged in the business of commercial financing has been
415	415	22 convicted of a crime involving an act of fraud,
416	416	23 dishonesty, breach of trust, or money laundering; if the
417	417	24 registrant answers yes to this paragraph, then the
418	418	25 registrant shall report the names, titles or relationship
419	419	26 to the applicant or registrant, and the nature of the
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430	430	1 covered crime;
431	431	2 (9) a statement of the person's commitment to abide by
432	432	3 the requirements of registering persons under this Act,
433	433	4 including providing the required financing disclosures in
434	434	5 commercial financing offers as required under Sections 45,
435	435	6 50, 55, 60, 65, and 70 of this Act;
436	436	7 (10) a copy of the commercial financing disclosure
437	437	8 form to be used for each type of commercial financing that
438	438	9 the person offers or intends to offer, and a description
439	439	10 of when the disclosure will be provided to the recipient;
440	440	11 (11) information on financing offers presented by
441	441	12 registrant in Illinois in the previous calendar year,
442	442	13 including the number of financing offers made, the number
443	443	14 of financing offers made in which the disclosures as
444	444	15 required by Sections 45, 50, 55, 60, 65, and 70 were
445	445	16 offered, and the number of financing offers accepted by
446	446	17 recipients; and
447	447	18 (12) any other information deemed necessary by the
448	448	19 Secretary.
449	449	20 (h) The Secretary may refuse to accept or renew a
450	450	21 registration if:
451	451	22 (1) the Secretary determines that the person has not
452	452	23 complied with the provisions of this Act, its implementing
453	453	24 rules, or other laws that apply to the person; or
454	454	25 (2) the Secretary determines that there is substantial
455	455	26 continuity between the person and any violator of this
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466	466	1 Act, its implementing rules, or other laws that apply to
467	467	2 the person or related violator.
468	468	3 (i) The Department shall adopt and amend such rules as may
469	469	4 be required for the proper administration and enforcement of
470	470	5 this Section, including rules providing for the form, content,
471	471	6 and filing of a registration and renewal statement.
472	472	7 Section 25. Additional registration information.
473	473	8 (a) In order to fulfill the purposes of this Act, the
474	474	9 Secretary may establish relationships or contracts with a
475	475	10 multistate licensing system or other persons to collect and
476	476	11 maintain records and process fees related to registrants or
477	477	12 other persons subject to this Act.
478	478	13 (b) For the purposes of this Section, and to reduce the
479	479	14 points of contact that the Secretary may have to maintain, the
480	480	15 Secretary may use a multistate licensing system as a
481	481	16 channeling agent for requesting and distributing information
482	482	17 to and from any source.
483	483	18 (c) Each registrant shall furnish to the Secretary or
484	484	19 multistate licensing system an updated business address within
485	485	20 10 days after any change of business address.
486	486	21 Section 30. Registration expiration. No activity regulated
487	487	22 by this Act shall be conducted by a registrant whose
488	488	23 registration has expired. The Secretary may, within the
489	489	24 Secretary's discretion, reinstate an expired registration upon
490	490
491	491
492	492
493	493
494	494
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496	496
497	497
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499	499	SB0260 - 14 - LRB104 06474 BAB 16510 b
500	500	1 payment of the renewal fee, payment of a reactivation fee
501	501	2 equal to 5 times the renewal fee, submission of a completed
502	502	3 renewal application, and an affidavit of good cause for late
503	503	4 renewal.
504	504	5 Section 35. Functions; powers; duties. The functions,
505	505	6 powers, and duties of the Secretary include, but are not
506	506	7 limited to, the following:
507	507	8 (1) to issue or refuse to issue any registration or
508	508	9 renewal;
509	509	10 (2) to revoke or suspend for cause any registration
510	510	11 issued under this Act;
511	511	12 (3) to keep records of all registrations issued under
512	512	13 this Act;
513	513	14 (4) to receive, consider, investigate, and act upon
514	514	15 complaints made by any person in connection with any
515	515	16 registration in this State or unregistered commercial
516	516	17 financing activity of any person;
517	517	18 (5) to adopt rules necessary and proper for the
518	518	19 administration of this Act, to protect consumers and
519	519	20 financing recipients, to promote fair competition, and as
520	520	21 otherwise authorized by this Act;
521	521	22 (6) to subpoena documents and witnesses and compel
522	522	23 their attendance and production, to administer oaths, and
523	523	24 to require the production of any books, papers, or other
524	524	25 materials relevant to any inquiry authorized by this Act
525	525
526	526
527	527
528	528
529	529
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531	531
532	532
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535	535	1 or its implementing rules;
536	536	2 (7) to issue orders against any person if the
537	537	3 Secretary has reasonable cause to believe that an unsafe,
538	538	4 unsound, or unlawful practice has occurred, is occurring,
539	539	5 or is about to occur; if any person is violating, or is
540	540	6 about to violate any law, rule, or written agreement with
541	541	7 the Secretary; or for the purpose of administering the
542	542	8 provisions of this Act and any rule adopted in accordance
543	543	9 with this Act;
544	544	10 (8) to address any inquiries to any registrant, or the
545	545	11 owners, officers, or directors thereof, in relation to its
546	546	12 activities and conditions, or any other matter connected
547	547	13 with its affairs, and any registrant or person so
548	548	14 addressed shall promptly reply in writing to those
549	549	15 inquiries. The Secretary may also require reports from any
550	550	16 registrant at any time the Secretary deems desirable;
551	551	17 (9) to enforce provisions of this Act and its
552	552	18 implementing rules;
553	553	19 (10) to levy fees, including, but not limited to,
554	554	20 assessments, registration fees, civil penalties, and
555	555	21 charges for services performed in administering this Act.
556	556	22 The Secretary may establish and modify fees by rule. The
557	557	23 aggregate of all fees collected by the Secretary under
558	558	24 this Act shall be paid promptly after receipt into the
559	559	25 Financial Institution Fund. The amounts deposited into the
560	560	26 Financial Institution Fund shall be used for the ordinary
561	561
562	562
563	563
564	564
565	565
566	566	SB0260 - 15 - LRB104 06474 BAB 16510 b
567	567
568	568
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570	570	SB0260 - 16 - LRB104 06474 BAB 16510 b
571	571	1 and contingent expenses of the Department. Nothing in this
572	572	2 Act prevents paying expenses including salaries,
573	573	3 retirement, social security, and State-paid insurance of
574	574	4 State employees, or any other expenses incurred under this
575	575	5 Act by appropriation from the General Revenue Fund or any
576	576	6 other fund;
577	577	7 (11) to issue refunds to registrants of any
578	578	8 overpayment for good cause shown;
579	579	9 (12) to appoint experts and special assistants as
580	580	10 needed to effectively and efficiently administer this Act;
581	581	11 (13) to conduct hearings for the purpose of
582	582	12 suspensions, denials, or revocations of registrations,
583	583	13 fining, or other discipline of registrants or unregistered
584	584	14 persons or entities;
585	585	15 (14) to exercise visitorial power over a registrant:
586	586	16 (A) if the Secretary has reasonable cause to believe that
587	587	17 an unsafe, unsound, or unlawful practice has occurred, is
588	588	18 occurring, or is about to occur; or (B) if a person is
589	589	19 violating or is about to violate any law, rule, or written
590	590	20 agreement with the Secretary; and
591	591	21 (15) to enter into cooperative agreements with state
592	592	22 regulatory authorities of other states to provide for
593	593	23 examination of corporate offices or branches of those
594	594	24 states, participate in joint examinations with other
595	595	25 regulators, and to accept reports of the examinations: (A)
596	596	26 if the Secretary has reasonable cause to believe that an
597	597
598	598
599	599
600	600
601	601
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603	603
604	604
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606	606	SB0260 - 17 - LRB104 06474 BAB 16510 b
607	607	1 unsafe, unsound, or unlawful practice has occurred, is
608	608	2 occurring, or is about to occur; or (B) if a person is
609	609	3 violating or is about to violate any law, rule, or written
610	610	4 agreement with the Secretary;
611	611	5 (16) to impose civil penalties of up to $200 per day
612	612	6 against a registrant for failing to respond to a
613	613	7 regulatory request or reporting requirement; and
614	614	8 (17) to enter into agreements in connection with a
615	615	9 multistate licensing system.
616	616	10 Section 40. Subpoena power of the Secretary.
617	617	11 (a) The Secretary may issue and serve subpoenas and
618	618	12 subpoenas duces tecum to compel the attendance of witnesses
619	619	13 and the production of all books, accounts, records, and other
620	620	14 documents and materials relevant to an investigation. The
621	621	15 Secretary, or the Secretary's duly authorized representative,
622	622	16 may administer oaths and affirmations to any person.
623	623	17 (b) If a person does not comply with the Secretary's
624	624	18 subpoena or subpoena duces tecum, the Secretary may, through
625	625	19 the Attorney General, petition the circuit court of the county
626	626	20 in which the subpoenaed person resides or has its principal
627	627	21 place of business for an order requiring the subpoenaed person
628	628	22 to testify and to comply with the subpoena duces tecum. The
629	629	23 court may grant injunctive relief restraining the person from
630	630	24 engaging in activity regulated by this Act. The court may
631	631	25 grant other relief, including, but not limited to, the
632	632
633	633
634	634
635	635
636	636
637	637	SB0260 - 17 - LRB104 06474 BAB 16510 b
638	638
639	639
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641	641	SB0260 - 18 - LRB104 06474 BAB 16510 b
642	642	1 restraint, by injunction or appointment of a receiver, of any
643	643	2 transfer, pledge, assignment, or other disposition of the
644	644	3 person's assets, concealment, destruction, or other
645	645	4 disposition of books, accounts, records, or other documents
646	646	5 and materials, as the court deems appropriate, until the
647	647	6 person has fully complied with the subpoena or subpoena duces
648	648	7 tecum and the Secretary has completed an investigation.
649	649	8 (c) If it appears to the Secretary that the compliance
650	650	9 with a subpoena or subpoena duces tecum issued or caused to be
651	651	10 issued by the Secretary under this Section is essential to an
652	652	11 investigation, the Secretary, in addition to the other
653	653	12 remedies provided for in this Act, may, through the Attorney
654	654	13 General, apply for relief to the circuit court of the county in
655	655	14 which the subpoenaed person resides or has its principal place
656	656	15 of business. The court shall thereupon direct the issuance of
657	657	16 an order against the subpoenaed person requiring sufficient
658	658	17 bond conditioned on compliance with the subpoena or subpoena
659	659	18 duces tecum. The court shall cause to be endorsed on the order
660	660	19 a suitable amount of bond or payment pursuant to which the
661	661	20 person named be freed, having a due regard to the nature of the
662	662	21 case.
663	663	22 (d) In addition, the Secretary may, through the Attorney
664	664	23 General, seek a writ of attachment or an equivalent order from
665	665	24 the circuit court having jurisdiction over the person who has
666	666	25 refused to obey a subpoena, who has refused to give testimony,
667	667	26 or who has refused to produce the matters described in the
668	668
669	669
670	670
671	671
672	672
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674	674
675	675
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677	677	SB0260 - 19 - LRB104 06474 BAB 16510 b
678	678	1 subpoena duces tecum.
679	679	2 Section 45. Sales-based financing disclosure requirements.
680	680	3 A provider subject to this Act shall provide the following
681	681	4 disclosures to a recipient, in a manner prescribed by the
682	682	5 Secretary, if any, at the time of extending a specific offer of
683	683	6 sales-based financing:
684	684	7 (1) The total amount of the commercial financing, and,
685	685	8 if different from the financing amount, the disbursement
686	686	9 amount after any amount deducted or withheld at
687	687	10 disbursement.
688	688	11 (2) The finance charge.
689	689	12 (3) The estimated annual percentage rate, using the
690	690	13 words annual percentage rate or the abbreviation
691	691	14 "Estimated APR", expressed as a yearly rate, inclusive of
692	692	15 any fees and finance charges, based on the estimated term
693	693	16 of repayment and the projected periodic payment amounts.
694	694	17 The estimated term of repayment and the projected periodic
695	695	18 payment amounts shall be calculated based on the
696	696	19 projection of the recipient's sales, which may be referred
697	697	20 to as the projected sales volume. The projected sales
698	698	21 volume may be calculated using the historical method or
699	699	22 the underwriting method. The provider shall provide notice
700	700	23 to the Secretary on which method the provider intends to
701	701	24 use across all instances of sales-based financing offered
702	702	25 in calculating the estimated annual percentage rate under
703	703
704	704
705	705
706	706
707	707
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709	709
710	710
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712	712	SB0260 - 20 - LRB104 06474 BAB 16510 b
713	713	1 this Section, according to the following:
714	714	2 (A) A provider using the historical method shall
715	715	3 use an average historical volume of sales or revenue
716	716	4 by which the financing's payment amounts are based and
717	717	5 the estimated annual percentage rate is calculated.
718	718	6 The provider shall fix the historical time period used
719	719	7 to calculate the average historical volume and use the
720	720	8 period for all disclosure purposes for all sales-based
721	721	9 financing products offered. The fixed historical time
722	722	10 period shall either be the preceding time period from
723	723	11 the specific offer or, alternatively, the provider may
724	724	12 use average sales for the same number of months with
725	725	13 the highest sales volume within the previous 12
726	726	14 months. The fixed historical time period shall be no
727	727	15 less than one month and shall not exceed 12 months.
728	728	16 (B) A provider using the underwriting method shall
729	729	17 determine the estimated annual percentage rate, the
730	730	18 estimated term, and the projected payments, using a
731	731	19 projected sales volume that the provider elects for
732	732	20 each disclosure, if they participate in a review
733	733	21 process prescribed by the Secretary. A provider shall,
734	734	22 on an annual basis, report data to the Secretary of
735	735	23 estimated annual percentage rates disclosed to the
736	736	24 recipient and actual retrospective annual percentage
737	737	25 rates of completed transactions. The report shall
738	738	26 contain the information as the Department may adopt by
739	739
740	740
741	741
742	742
743	743
744	744	SB0260 - 20 - LRB104 06474 BAB 16510 b
745	745
746	746
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748	748	SB0260 - 21 - LRB104 06474 BAB 16510 b
749	749	1 rule as necessary or appropriate for the purpose of
750	750	2 making a determination of whether the deviation
751	751	3 between the estimated annual percentage rate and
752	752	4 actual retrospective annual percentage rates of
753	753	5 completed transactions was reasonable. The Secretary
754	754	6 shall establish the method of reporting and may, upon
755	755	7 a finding that the use of projected sales volume by the
756	756	8 provider has resulted in an unacceptable deviation
757	757	9 between estimated and actual annual percentage rate,
758	758	10 require the provider to use the historical method. The
759	759	11 Secretary may consider unusual and extraordinary
760	760	12 circumstances impacting the provider's deviation
761	761	13 between estimated and actual annual percentage rate in
762	762	14 the determination of the finding.
763	763	15 (4) The total repayment amount, which is the
764	764	16 disbursement amount plus the finance charge.
765	765	17 (5) The estimated term, which is the period of time
766	766	18 required for the periodic payments, based on the projected
767	767	19 sales volume, to equal the total amount required to be
768	768	20 repaid.
769	769	21 (6) The payment amounts, based on the projected sales
770	770	22 volume:
771	771	23 (A) for payment amounts that are fixed, the
772	772	24 payment amounts and frequency, such as, daily, weekly,
773	773	25 monthly, and, if the payment frequency is other than
774	774	26 monthly, the amount of the average projected payments
775	775
776	776
777	777
778	778
779	779
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781	781
782	782
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784	784	SB0260 - 22 - LRB104 06474 BAB 16510 b
785	785	1 per month; or
786	786	2 (B) for payment amounts that are variable, a
787	787	3 payment schedule or a description of the method used
788	788	4 to calculate the amounts and frequency of payments and
789	789	5 the amount of the average projected payments per
790	790	6 month.
791	791	7 (7) A description of all other potential fees and
792	792	8 charges not included in the finance charge, including, but
793	793	9 not limited to, draw fees, late payment fees, and returned
794	794	10 payment fees.
795	795	11 (8) If the recipient elects to pay off or refinance
796	796	12 the commercial financing before full repayment, the
797	797	13 provider shall disclose:
798	798	14 (A) whether the recipient would be required to pay
799	799	15 any finance charges other than interest accrued since
800	800	16 their last payment; if so, disclosure of the
801	801	17 percentage of any unpaid portion of the finance charge
802	802	18 and maximum dollar amount the recipient could be
803	803	19 required to pay; and
804	804	20 (B) whether the recipient would be required to pay
805	805	21 any additional fees not already included in the
806	806	22 finance charge.
807	807	23 (9) A description of collateral requirements or
808	808	24 security interests, if any.
809	809	25 Section 50. Commercial closed-end financing disclosure
810	810
811	811
812	812
813	813
814	814
815	815	SB0260 - 22 - LRB104 06474 BAB 16510 b
816	816
817	817
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819	819	SB0260 - 23 - LRB104 06474 BAB 16510 b
820	820	1 requirements.
821	821	2 (a) A provider subject to this Act shall provide the
822	822	3 following disclosures to a recipient, in a manner prescribed
823	823	4 by the Secretary, if any, at the time of extending a specific
824	824	5 offer for closed-end financing:
825	825	6 (1) The total amount of the commercial financing, and,
826	826	7 if different from the financing amount, the disbursement
827	827	8 amount after any amount deducted or withheld at
828	828	9 disbursement.
829	829	10 (2) The finance charge.
830	830	11 (3) The annual percentage rate, using only the words
831	831	12 annual percentage rate or the abbreviation "APR",
832	832	13 expressed as a yearly rate, inclusive of any fees and
833	833	14 finance charges that cannot be avoided by a recipient.
834	834	15 (4) The total repayment amount, which is the
835	835	16 disbursement amount plus the finance charge.
836	836	17 (5) The term of the financing.
837	837	18 (6) The payment amounts:
838	838	19 (A) for payment amounts that are fixed, the
839	839	20 payment amounts and frequency, such as daily, weekly,
840	840	21 monthly, and, if the term is longer than one month, the
841	841	22 average monthly payment amount; or
842	842	23 (B) for payment amounts that are variable, a full
843	843	24 payment schedule or a description of the method used
844	844	25 to calculate the amounts and frequency of payments,
845	845	26 and, if the term is longer than one month, the
846	846
847	847
848	848
849	849
850	850
851	851	SB0260 - 23 - LRB104 06474 BAB 16510 b
852	852
853	853
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855	855	SB0260 - 24 - LRB104 06474 BAB 16510 b
856	856	1 estimated average monthly payment amount.
857	857	2 (7) A description of all other potential fees and
858	858	3 charges that can be avoided by the recipient, including,
859	859	4 but not limited to, late payment fees and returned payment
860	860	5 fees.
861	861	6 (8) If the recipient elects to pay off or refinance
862	862	7 the commercial financing before full repayment, the
863	863	8 provider shall disclose:
864	864	9 (A) whether the recipient would be required to pay
865	865	10 any finance charges other than interest accrued since
866	866	11 their last payment; if so, disclosure of the
867	867	12 percentage of any unpaid portion of the finance charge
868	868	13 and maximum dollar amount the recipient could be
869	869	14 required to pay; and
870	870	15 (B) whether the recipient would be required to pay
871	871	16 any additional fees not already included in the
872	872	17 finance charge.
873	873	18 (9) A description of collateral requirements or
874	874	19 security interests, if any.
875	875	20 (b) If an advance requires repayment in periodic
876	876	21 installments over time and does not qualify as sales-based
877	877	22 financing, then the advance qualifies as close-end financing
878	878	23 and shall satisfy the disclosure requirements of this Section.
879	879	24 Section 55. Open-end commercial financing disclosure
880	880	25 requirements. A provider subject to this Act shall provide the
881	881
882	882
883	883
884	884
885	885
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887	887
888	888
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890	890	SB0260 - 25 - LRB104 06474 BAB 16510 b
891	891	1 following disclosures to a recipient, in a manner prescribed
892	892	2 by the Secretary, if any, at the time of extending a specific
893	893	3 offer for open-end financing:
894	894	4 (1) The maximum amount of credit available to the
895	895	5 recipient, such as the credit line amount, and the amount
896	896	6 scheduled to be drawn by the recipient at the time the
897	897	7 offer is extended, if any, less any amount deducted or
898	898	8 withheld at disbursement.
899	899	9 (2) The finance charge.
900	900	10 (3) The annual percentage rate, using only the words
901	901	11 annual percentage rate or the abbreviation "APR",
902	902	12 expressed as a nominal yearly rate, inclusive of any fees
903	903	13 and finance charges that cannot be avoided by a recipient,
904	904	14 and based on the maximum amount of credit available to the
905	905	15 recipient and the term resulting from making the minimum
906	906	16 required payments term as disclosed.
907	907	17 (4) The total repayment amount, which is the draw
908	908	18 amount, less any fees deducted or withheld at
909	909	19 disbursement, plus the finance charge. The total repayment
910	910	20 amount shall assume a draw amount equal to the maximum
911	911	21 amount of credit available to the recipient if drawn and
912	912	22 held for the duration of the term or draw period.
913	913	23 (5) The term of the plan, if applicable, or the period
914	914	24 over which a draw is amortized.
915	915	25 (6) The payment frequency and amounts, based on the
916	916	26 assumptions used in the calculation of the annual
917	917
918	918
919	919
920	920
921	921
922	922	SB0260 - 25 - LRB104 06474 BAB 16510 b
923	923
924	924
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926	926	SB0260 - 26 - LRB104 06474 BAB 16510 b
927	927	1 percentage rate, including a description of payment amount
928	928	2 requirements such as a minimum payment amount, and if the
929	929	3 payment frequency is other than monthly, the amount of the
930	930	4 average projected payments per month. For payment amounts
931	931	5 that are variable, the provider should include a payment
932	932	6 schedule or a description of the method used to calculate
933	933	7 the amounts and frequency of payments and the estimated
934	934	8 average monthly payment amount.
935	935	9 (7) A description of all other potential fees and
936	936	10 charges that can be avoided by the recipient, including,
937	937	11 but not limited to, draw fees, late payment fees, and
938	938	12 returned payment fees.
939	939	13 (8) Were the recipient to elect to pay off or
940	940	14 refinance the commercial financing before full repayment,
941	941	15 the provider shall disclose:
942	942	16 (A) whether the recipient would be required to pay
943	943	17 any finance charges other than interest accrued since
944	944	18 their last payment; if so, disclosure of the
945	945	19 percentage of any unpaid portion of the finance charge
946	946	20 and maximum dollar amount the recipient could be
947	947	21 required to pay; and
948	948	22 (B) whether the recipient would be required to pay
949	949	23 any additional fees not already included in the
950	950	24 finance charge.
951	951	25 (9) A description of collateral requirements or
952	952	26 security interests, if any.
953	953
954	954
955	955
956	956
957	957
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959	959
960	960
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962	962	SB0260 - 27 - LRB104 06474 BAB 16510 b
963	963	1 Section 60. Factoring transaction disclosure requirements.
964	964	2 A provider subject to this Act shall provide the following
965	965	3 disclosures to a recipient, in a manner prescribed by the
966	966	4 Secretary, if any, at the time of extending a specific offer
967	967	5 for a factoring transaction:
968	968	6 (1) The amount of the receivables purchase price paid
969	969	7 to the recipient, and, if different from the purchase
970	970	8 price, the disbursement amount after any amount deducted
971	971	9 or withheld at disbursement.
972	972	10 (2) The finance charge.
973	973	11 (3) The estimated annual percentage rate, using that
974	974	12 term. To calculate the estimated annual percentage rate,
975	975	13 the purchase amount is considered the financing amount,
976	976	14 the purchase amount minus the finance charge is considered
977	977	15 the payment amount, and the term is established by the
978	978	16 payment due date of the receivables. As an alternate
979	979	17 method of establishing the term, the provider may estimate
980	980	18 the term for a factoring transaction as the average
981	981	19 payment period based on its historical data over a period
982	982	20 not to exceed the previous 12 months, concerning payment
983	983	21 invoices paid by the party or parties owing the accounts
984	984	22 receivable in question.
985	985	23 (4) The total payment amount, which is the purchase
986	986	24 amount plus the finance charge.
987	987	25 (5) A description of all other potential fees and
988	988
989	989
990	990
991	991
992	992
993	993	SB0260 - 27 - LRB104 06474 BAB 16510 b
994	994
995	995
996	996	SB0260- 28 -LRB104 06474 BAB 16510 b SB0260 - 28 - LRB104 06474 BAB 16510 b
997	997	SB0260 - 28 - LRB104 06474 BAB 16510 b
998	998	1 charges that can be avoided by the recipient.
999	999	2 (6) A description of the receivables purchased and any
1000	1000	3 additional collateral requirements or security interests.
1001	1001	4 Section 65. Other forms of financing disclosure
1002	1002	5 requirements. The Secretary may require disclosure by a
1003	1003	6 provider extending a specific offer of commercial financing
1004	1004	7 which is not an open-end financing, closed-end financing,
1005	1005	8 sales-based financing, or factoring transaction but otherwise
1006	1006	9 meets the definition of commercial financing. Subject to rules
1007	1007	10 adopted by the Secretary, a provider subject to this Act shall
1008	1008	11 provide the following disclosures to a recipient, in a manner
1009	1009	12 prescribed by the Secretary, if any, at the time of extending a
1010	1010	13 specific offer of other forms of financing:
1011	1011	14 (1) The total amount of the commercial financing, and,
1012	1012	15 if different from the financing amount, the disbursement
1013	1013	16 amount after any fees deducted or withheld at
1014	1014	17 disbursement.
1015	1015	18 (2) The finance charge.
1016	1016	19 (3) The annual percentage rate, using only the words
1017	1017	20 annual percentage rate or the abbreviation "APR",
1018	1018	21 expressed as a yearly rate, inclusive of any fees and
1019	1019	22 finance charges.
1020	1020	23 (4) The total repayment amount which is the
1021	1021	24 disbursement amount plus the finance charge.
1022	1022	25 (5) The term of the financing.
1023	1023
1024	1024
1025	1025
1026	1026
1027	1027
1028	1028	SB0260 - 28 - LRB104 06474 BAB 16510 b
1029	1029
1030	1030
1031	1031	SB0260- 29 -LRB104 06474 BAB 16510 b SB0260 - 29 - LRB104 06474 BAB 16510 b
1032	1032	SB0260 - 29 - LRB104 06474 BAB 16510 b
1033	1033	1 (6) The payment amounts:
1034	1034	2 (A) for payment amounts that are fixed, the
1035	1035	3 payment amounts and frequency, such as daily, weekly,
1036	1036	4 monthly, and the average monthly payment amount; or
1037	1037	5 (B) for payment amounts that are variable, a
1038	1038	6 payment schedule or a description of the method used
1039	1039	7 to calculate the amounts and frequency of payments,
1040	1040	8 and the estimated average monthly payment amount.
1041	1041	9 (7) A description of all other potential fees and
1042	1042	10 charges that can be avoided by the recipient, including,
1043	1043	11 but not limited to, late payment fees and returned payment
1044	1044	12 fees.
1045	1045	13 (8) If the recipient elects to pay off or refinance
1046	1046	14 the commercial financing before full repayment, the
1047	1047	15 provider shall disclose:
1048	1048	16 (A) whether the recipient would be required to pay
1049	1049	17 any finance charges other than interest accrued since
1050	1050	18 their last payment; if so, disclosure of the
1051	1051	19 percentage of any unpaid portion of the finance charge
1052	1052	20 and maximum dollar amount the recipient could be
1053	1053	21 required to pay; and
1054	1054	22 (B) whether the recipient would be required to pay
1055	1055	23 any additional fees not already included in the
1056	1056	24 finance charge.
1057	1057	25 (9) A description of collateral requirements or
1058	1058	26 security interests, if any.
1059	1059
1060	1060
1061	1061
1062	1062
1063	1063
1064	1064	SB0260 - 29 - LRB104 06474 BAB 16510 b
1065	1065
1066	1066
1067	1067	SB0260- 30 -LRB104 06474 BAB 16510 b SB0260 - 30 - LRB104 06474 BAB 16510 b
1068	1068	SB0260 - 30 - LRB104 06474 BAB 16510 b
1069	1069	1 Section 70. Disclosure requirements for renewal financing.
1070	1070	2 If, as a condition of obtaining the commercial financing, the
1071	1071	3 provider requires the recipient to pay off the balance of an
1072	1072	4 existing commercial financing from the same provider, the
1073	1073	5 provider shall disclose:
1074	1074	6 (1) The amount of the new commercial financing that is
1075	1075	7 used to pay off the portion of the existing commercial
1076	1076	8 financing that consists of prepayment charges required to
1077	1077	9 be paid and any unpaid interest expense that was not
1078	1078	10 forgiven at the time of renewal. For financing for which
1079	1079	11 the total repayment amount is calculated as a fixed
1080	1080	12 amount, the prepayment charge is equal to the original
1081	1081	13 finance charge multiplied by the amount of the renewal
1082	1082	14 used to pay off existing financing as a percentage of the
1083	1083	15 total repayment amount, minus any portion of the total
1084	1084	16 repayment amount forgiven by the provider at the time of
1085	1085	17 prepayment. If the amount is more than zero, the amount
1086	1086	18 shall be the answer to the following question: "Does the
1087	1087	19 renewal financing include any amount that is used to pay
1088	1088	20 unpaid finance charges or fees, also known as double
1089	1089	21 dipping? Yes, {enter amount}. If the amount is zero, the
1090	1090	22 answer would be no."
1091	1091	23 (2) If the disbursement amount will be reduced to pay
1092	1092	24 down any unpaid portion of the outstanding balance, the
1093	1093	25 actual dollar amount by which the disbursement amount will
1094	1094
1095	1095
1096	1096
1097	1097
1098	1098
1099	1099	SB0260 - 30 - LRB104 06474 BAB 16510 b
1100	1100
1101	1101
1102	1102	SB0260- 31 -LRB104 06474 BAB 16510 b SB0260 - 31 - LRB104 06474 BAB 16510 b
1103	1103	SB0260 - 31 - LRB104 06474 BAB 16510 b
1104	1104	1 be reduced.
1105	1105	2 Section 75. Additional information. Nothing in this Act
1106	1106	3 shall prevent a provider from providing or disclosing
1107	1107	4 additional information on a commercial financing being offered
1108	1108	5 to a recipient, provided however, that the additional
1109	1109	6 information shall not be disclosed as part of the disclosure
1110	1110	7 required by this Act. If other metrics of financing cost are
1111	1111	8 disclosed or used in the application process of a commercial
1112	1112	9 financing, these metrics shall not be presented as a "rate" if
1113	1113	10 they are not the annual interest rate or the annual percentage
1114	1114	11 rate. The term "interest", when used to describe a percentage
1115	1115	12 rate, shall only be used to describe annualized percentage
1116	1116	13 rates, such as the annual interest rate. When a provider
1117	1117	14 states a rate of finance charge or a financing amount to a
1118	1118	15 recipient during an application process for commercial
1119	1119	16 financing, the provider shall also state the rate as an
1120	1120	17 "annual percentage rate", using that term or the abbreviation
1121	1121	18 "APR".
1122	1122	19 Section 80. Commercial financing disclosure forms approved
1123	1123	20 for use in the other states. The Secretary may approve the use
1124	1124	21 of commercial financing disclosure forms approved for use in
1125	1125	22 other states with commercial financing disclosure requirements
1126	1126	23 that are substantially similar to or exceed the requirements
1127	1127	24 set forth in this Act, including the disclosure requirements
1128	1128
1129	1129
1130	1130
1131	1131
1132	1132
1133	1133	SB0260 - 31 - LRB104 06474 BAB 16510 b
1134	1134
1135	1135
1136	1136	SB0260- 32 -LRB104 06474 BAB 16510 b SB0260 - 32 - LRB104 06474 BAB 16510 b
1137	1137	SB0260 - 32 - LRB104 06474 BAB 16510 b
1138	1138	1 in Sections 45, 50, 55, 60, 65, and 70 of this Act.
1139	1139	2 Section 85. Violation of disclosure requirements. If the
1140	1140	3 Secretary finds that a provider who is required to register
1141	1141	4 with the Department according to this Act has violated any
1142	1142	5 disclosure requirements outlined in Sections 45, 50, 55, 60,
1143	1143	6 65, 70, and 75, that shall be considered a violation of this
1144	1144	7 Act separate from any other violation that may result from
1145	1145	8 operating without a registration as outlined in Section 95.
1146	1146	9 Section 90. Notification.
1147	1147	10 (a) A registrant must advise the Secretary in writing of
1148	1148	11 any changes to the information submitted on its most recent
1149	1149	12 registration or renewal of registration within 30 days after
1150	1150	13 the change.
1151	1151	14 (b) A registrant must advise the Secretary in writing that
1152	1152	15 the registrant has been disciplined, including denial of
1153	1153	16 licensure, by a licensing authority of this State or another
1154	1154	17 state within 10 days after entry of the discipline.
1155	1155	18 Section 95. Disciplinary actions.
1156	1156	19 (a) The Secretary may enter an order imposing one or more
1157	1157	20 of the following penalties:
1158	1158	21 (1) revocation of registration;
1159	1159	22 (2) suspension of a registration subject to
1160	1160	23 reinstatement upon satisfying all reasonable conditions
1161	1161
1162	1162
1163	1163
1164	1164
1165	1165
1166	1166	SB0260 - 32 - LRB104 06474 BAB 16510 b
1167	1167
1168	1168
1169	1169	SB0260- 33 -LRB104 06474 BAB 16510 b SB0260 - 33 - LRB104 06474 BAB 16510 b
1170	1170	SB0260 - 33 - LRB104 06474 BAB 16510 b
1171	1171	1 the Secretary may specify;
1172	1172	2 (3) placement of the registrant or applicant on
1173	1173	3 probation for a period of time and subject to all
1174	1174	4 reasonable conditions as the Secretary may specify;
1175	1175	5 (4) imposition of civil monetary penalties not to
1176	1176	6 exceed $10,000 for each separate offense, but civil
1177	1177	7 penalties may not to exceed $50,000 for all violations
1178	1178	8 arising from the use of the same single transaction,
1179	1179	9 including for financing offers that are not consummated;
1180	1180	10 (5) restitution, refunds, or any other relief
1181	1181	11 necessary to protect recipients; and
1182	1182	12 (6) denial of a registration.
1183	1183	13 (b) Grounds for penalties include:
1184	1184	14 (1) if a registrant has violated or aided another to
1185	1185	15 violate any provision of this Act, any rule adopted by the
1186	1186	16 Secretary, or any other law, rule, or regulation of this
1187	1187	17 State, any other state, or the United States;
1188	1188	18 (2) if a person has violated or aided another to
1189	1189	19 violate any provision of this Act or any rule adopted by
1190	1190	20 the Secretary pursuant to this Act;
1191	1191	21 (3) if a fact or condition exists that, if it had
1192	1192	22 existed at the time of the original application for
1193	1193	23 registration, would have warranted the Secretary in
1194	1194	24 refusing issue the original registration;
1195	1195	25 (4) that a registrant that is not an individual has
1196	1196	26 acted or failed to act in a way that would be cause for
1197	1197
1198	1198
1199	1199
1200	1200
1201	1201
1202	1202	SB0260 - 33 - LRB104 06474 BAB 16510 b
1203	1203
1204	1204
1205	1205	SB0260- 34 -LRB104 06474 BAB 16510 b SB0260 - 34 - LRB104 06474 BAB 16510 b
1206	1206	SB0260 - 34 - LRB104 06474 BAB 16510 b
1207	1207	1 suspending or revoking a registration to an individual;
1208	1208	2 (5) that a person engaged in unsafe, unsound, unfair,
1209	1209	3 deceptive, or abusive business practices related to the
1210	1210	4 activity covered by this Act;
1211	1211	5 (6) that a registrant or an officer, director,
1212	1212	6 manager, operator, or principal of the registrant, or an
1213	1213	7 employee of the registrant engaged in the business of
1214	1214	8 commercial financing has been adjudicated guilty of a
1215	1215	9 crime against the law of this State, any other state, or of
1216	1216	10 the United States involving moral turpitude, abusive,
1217	1217	11 deceptive, fraudulent, or dishonest dealing;
1218	1218	12 (7) that a final judgment has been entered against
1219	1219	13 registrant or an officer, director, manager, operator, or
1220	1220	14 principal of the registrant, or an employee of the
1221	1221	15 registrant engaged in the business of commercial financing
1222	1222	16 in a civil action upon grounds of abusive conduct,
1223	1223	17 conversion, fraud, misrepresentation, or deceit;
1224	1224	18 (8) that an applicant made a material misstatement in
1225	1225	19 the applicant's application for registration or any other
1226	1226	20 communication to the Secretary;
1227	1227	21 (9) that a person has demonstrated, by course of
1228	1228	22 conduct, negligence or incompetence in performing any act
1229	1229	23 for which it is required to hold a registration under this
1230	1230	24 Act;
1231	1231	25 (10) that a person has failed to advise the Secretary
1232	1232	26 in writing of any changes to the information submitted on
1233	1233
1234	1234
1235	1235
1236	1236
1237	1237
1238	1238	SB0260 - 34 - LRB104 06474 BAB 16510 b
1239	1239
1240	1240
1241	1241	SB0260- 35 -LRB104 06474 BAB 16510 b SB0260 - 35 - LRB104 06474 BAB 16510 b
1242	1242	SB0260 - 35 - LRB104 06474 BAB 16510 b
1243	1243	1 the person's most recent registration or renewal of
1244	1244	2 registration within 30 days after the change;
1245	1245	3 (11) that a registrant had a license, registration, or
1246	1246	4 the equivalent, to practice any profession, occupation,
1247	1247	5 other industry or activity requiring licensure revoked,
1248	1248	6 suspended, disciplined, or otherwise acted against,
1249	1249	7 including the denial of licensure by a licensing authority
1250	1250	8 of this State or another state, territory, or country for
1251	1251	9 fraud, dishonest dealing, misrepresentations,
1252	1252	10 incompetence, conversion, any act of moral turpitude or
1253	1253	11 any other grounds that would constitute grounds for
1254	1254	12 discipline under this Act;
1255	1255	13 (12) that a person registered under this Act failed to
1256	1256	14 timely notify the Secretary that the person has been
1257	1257	15 disciplined, including denial of licensure, by a licensing
1258	1258	16 authority of this State or another state as required under
1259	1259	17 subsection (b) of Section 90;
1260	1260	18 (13) that a person engaged in activities regulated by
1261	1261	19 this Act without a current, active registration unless
1262	1262	20 specifically exempted by this Act;
1263	1263	21 (14) that a person failed to timely pay any fee,
1264	1264	22 charge, or civil penalty assessed under this Act; and
1265	1265	23 (15) that a person refused, obstructed, evaded, or
1266	1266	24 unreasonably delayed an investigation or information
1267	1267	25 request authorized under this Act, or refused, obstructed,
1268	1268	26 evaded, or unreasonably delayed compliance with the
1269	1269
1270	1270
1271	1271
1272	1272
1273	1273
1274	1274	SB0260 - 35 - LRB104 06474 BAB 16510 b
1275	1275
1276	1276
1277	1277	SB0260- 36 -LRB104 06474 BAB 16510 b SB0260 - 36 - LRB104 06474 BAB 16510 b
1278	1278	SB0260 - 36 - LRB104 06474 BAB 16510 b
1279	1279	1 Secretary's subpoena or subpoena duces tecum.
1280	1280	2 (c) No registration shall be suspended or revoked, except
1281	1281	3 as provided in this Section, nor shall any person be assessed a
1282	1282	4 civil penalty without notice of his or her right to a hearing.
1283	1283	5 (d) The Secretary may suspend any registration for a
1284	1284	6 period not exceeding 180 days pending investigation for good
1285	1285	7 cause shown that an emergency exists.
1286	1286	8 (e) No revocation, suspension, or surrender of any
1287	1287	9 registration shall impair or affect the obligation of any
1288	1288	10 preexisting lawful contract between the registrant and any
1289	1289	11 person. The Secretary's approval of a registrant's application
1290	1290	12 to surrender its registration shall not affect the
1291	1291	13 registrant's civil or criminal liability for acts committed
1292	1292	14 prior to surrender. Surrender of a registration does not
1293	1293	15 entitle the registrant to a return of any part of the
1294	1294	16 registration fee.
1295	1295	17 (f) Every registration issued under this Act shall remain
1296	1296	18 in force and effect until the registration expires, is
1297	1297	19 surrendered, is revoked, or is suspended in accordance with
1298	1298	20 the provisions of this Act. The Secretary shall have authority
1299	1299	21 to reinstate a suspended registration or to issue a new
1300	1300	22 registration to a registrant whose registration has been
1301	1301	23 revoked or surrendered if no fact or condition then exists
1302	1302	24 which would have warranted the Secretary in refusing
1303	1303	25 originally to issue that registration under this Act.
1304	1304	26 (g) Whenever the Secretary imposes discipline authorized
1305	1305
1306	1306
1307	1307
1308	1308
1309	1309
1310	1310	SB0260 - 36 - LRB104 06474 BAB 16510 b
1311	1311
1312	1312
1313	1313	SB0260- 37 -LRB104 06474 BAB 16510 b SB0260 - 37 - LRB104 06474 BAB 16510 b
1314	1314	SB0260 - 37 - LRB104 06474 BAB 16510 b
1315	1315	1 by this Section, the Secretary shall execute a written order
1316	1316	2 to that effect. The Secretary shall serve a copy of the order
1317	1317	3 upon the person. The Secretary shall serve the person with
1318	1318	4 notice of the order, including a statement of the reasons for
1319	1319	5 the order personally or by certified mail. Service by
1320	1320	6 certified mail shall be deemed completed when the notice is
1321	1321	7 deposited in the U.S. Mail.
1322	1322	8 (h) An order assessing a civil penalty, an order revoking
1323	1323	9 or suspending a registration, or an order denying renewal of a
1324	1324	10 registration shall take effect upon service of the order
1325	1325	11 unless the registrant serves the Department with a written
1326	1326	12 request for a hearing in the manner required by the order
1327	1327	13 within 10 days after the date of service of the order. If a
1328	1328	14 person requests a hearing, the order shall be stayed from its
1329	1329	15 date of service until the Department enters a final
1330	1330	16 administrative order. Hearings shall be conducted as follows:
1331	1331	17 (1) If the registrant requests a hearing, then the
1332	1332	18 Secretary shall schedule a hearing within 90 days after
1333	1333	19 the request for a hearing unless otherwise agreed to by
1334	1334	20 the parties.
1335	1335	21 (2) The hearing shall be held at the time and place
1336	1336	22 designated by the Secretary. The Secretary and any
1337	1337	23 administrative law judge designated by the Secretary shall
1338	1338	24 have the power to administer oaths and affirmations,
1339	1339	25 subpoena witnesses and compel their attendance, take
1340	1340	26 evidence, and require the production of books, papers,
1341	1341
1342	1342
1343	1343
1344	1344
1345	1345
1346	1346	SB0260 - 37 - LRB104 06474 BAB 16510 b
1347	1347
1348	1348
1349	1349	SB0260- 38 -LRB104 06474 BAB 16510 b SB0260 - 38 - LRB104 06474 BAB 16510 b
1350	1350	SB0260 - 38 - LRB104 06474 BAB 16510 b
1351	1351	1 correspondence, and other records or information that they
1352	1352	2 consider relevant or material to the inquiry.
1353	1353	3 (i) The costs of administrative hearings conducted under
1354	1354	4 this Section shall be paid by the registrant or other person
1355	1355	5 subject to the hearing.
1356	1356	6 (j) Registrants and other persons subject to this Act
1357	1357	7 shall be subject to the disciplinary actions specified in this
1358	1358	8 Act for any violations conducted by any officer, director,
1359	1359	9 shareholder, joint venture, partner, owner, including, but not
1360	1360	10 limited to, ultimate equitable owner.
1361	1361	11 Section 100. Investigation of complaints. The Secretary
1362	1362	12 may investigate any complaints and inquiries made concerning
1363	1363	13 this Act and any registrants or persons the Secretary believes
1364	1364	14 may be required to register under this Act. Each registrant or
1365	1365	15 person the Secretary believes may be required to register
1366	1366	16 under this Act shall open the registrant's or person's books,
1367	1367	17 records, documents, and offices wherever situated to the
1368	1368	18 Secretary as needed to facilitate the investigations.
1369	1369	19 Section 105. Additional investigation authority. In
1370	1370	20 addition to any authority allowed under this Act, the
1371	1371	21 Secretary may conduct investigations as follows:
1372	1372	22 (1) For purposes of initial registration, registration
1373	1373	23 renewal, registration suspension, registration
1374	1374	24 conditioning, registration probation, registration
1375	1375
1376	1376
1377	1377
1378	1378
1379	1379
1380	1380	SB0260 - 38 - LRB104 06474 BAB 16510 b
1381	1381
1382	1382
1383	1383	SB0260- 39 -LRB104 06474 BAB 16510 b SB0260 - 39 - LRB104 06474 BAB 16510 b
1384	1384	SB0260 - 39 - LRB104 06474 BAB 16510 b
1385	1385	1 revocation or termination, or general or specific inquiry
1386	1386	2 or investigation to determine compliance with this Act,
1387	1387	3 the Secretary may access, receive, and use any books,
1388	1388	4 accounts, records, files, documents, information, or
1389	1389	5 evidence, including, but not limited to, the following:
1390	1390	6 (A) criminal, civil, registration, and
1391	1391	7 administrative history information, including
1392	1392	8 nonconviction data as specified in the Criminal Code
1393	1393	9 of 2012; (B) personal history and experience
1394	1394	10 information, including independent credit reports
1395	1395	11 obtained from a consumer reporting agency described in
1396	1396	12 Section 603(p) of the federal Fair Credit Reporting
1397	1397	13 Act; and (C) any other documents, information, or
1398	1398	14 evidence the Secretary deems relevant to the inquiry
1399	1399	15 or investigation, regardless of the location,
1400	1400	16 possession, control, or custody of the documents,
1401	1401	17 information, or evidence.
1402	1402	18 (2) For the purposes of investigating violations or
1403	1403	19 complaints arising under this Act, the Secretary may
1404	1404	20 review or investigate any registrant or person subject to
1405	1405	21 this Act as necessary in order to carry out the purposes of
1406	1406	22 this Act. The Secretary may direct, subpoena, or order the
1407	1407	23 attendance of, and examine under oath all persons and
1408	1408	24 order any person to produce records, files, and any other
1409	1409	25 documents the Secretary deems relevant to an inquiry.
1410	1410	26 (3) Each person subject to this Act shall make
1411	1411
1412	1412
1413	1413
1414	1414
1415	1415
1416	1416	SB0260 - 39 - LRB104 06474 BAB 16510 b
1417	1417
1418	1418
1419	1419	SB0260- 40 -LRB104 06474 BAB 16510 b SB0260 - 40 - LRB104 06474 BAB 16510 b
1420	1420	SB0260 - 40 - LRB104 06474 BAB 16510 b
1421	1421	1 available to the Secretary upon request the books and
1422	1422	2 records relating to the operations of the person subject
1423	1423	3 to this Act. The Secretary shall have access to those
1424	1424	4 books and records and may interview the owners, officers,
1425	1425	5 principals, employees, independent contractors, agents,
1426	1426	6 vendors, and customers of any registrant or person subject
1427	1427	7 to this Act.
1428	1428	8 (4) In making any investigation authorized by this
1429	1429	9 Act, the Secretary may control access to any documents and
1430	1430	10 records of the registrant or person under investigation.
1431	1431	11 The Secretary may take possession of the documents and
1432	1432	12 records or otherwise take constructive control of the
1433	1433	13 documents. During the period of control, no person shall
1434	1434	14 remove or alter any of the documents or records, except
1435	1435	15 pursuant to a court order or with the consent of the
1436	1436	16 Secretary. Unless the Secretary has reasonable grounds to
1437	1437	17 believe the documents or records of the registrant have
1438	1438	18 been or are at risk of being altered or destroyed for
1439	1439	19 purposes of concealing a violation of this Act, the
1440	1440	20 registrant or owner of the documents and records shall
1441	1441	21 have access to the documents or records as necessary to
1442	1442	22 conduct its ordinary business affairs.
1443	1443	23 (5) In order to carry out the purposes of this
1444	1444	24 Section, the Secretary may:
1445	1445	25 (A) retain attorneys, accountants, or other
1446	1446	26 professionals and specialists as auditors or
1447	1447
1448	1448
1449	1449
1450	1450
1451	1451
1452	1452	SB0260 - 40 - LRB104 06474 BAB 16510 b
1453	1453
1454	1454
1455	1455	SB0260- 41 -LRB104 06474 BAB 16510 b SB0260 - 41 - LRB104 06474 BAB 16510 b
1456	1456	SB0260 - 41 - LRB104 06474 BAB 16510 b
1457	1457	1 investigators to conduct or assist in the conduct of
1458	1458	2 investigations;
1459	1459	3 (B) enter into agreements or relationships with
1460	1460	4 other government officials or regulatory associations
1461	1461	5 to protect consumers or financing recipients, improve
1462	1462	6 efficiencies, and reduce regulatory burden by sharing
1463	1463	7 resources, standardized or uniform methods or
1464	1464	8 procedures, and documents, records, information, or
1465	1465	9 evidence obtained under this Section;
1466	1466	10 (C) use, hire, contract, or employ publicly or
1467	1467	11 privately available analytical systems, methods, or
1468	1468	12 software or investigate the registrant or person
1469	1469	13 subject to this Act;
1470	1470	14 (D) accept and rely on examination or
1471	1471	15 investigation reports made by other government
1472	1472	16 officials, within or outside this State; or
1473	1473	17 (E) accept audit reports made by an independent
1474	1474	18 certified public accountant for the person subject to
1475	1475	19 this Act and may incorporate the audit report in the
1476	1476	20 report of the investigation or other writing of the
1477	1477	21 Secretary.
1478	1478	22 (6) The authority of this Section shall remain in
1479	1479	23 effect, whether the person subject to this Act acts or
1480	1480	24 claims to act under any licensing or registration law of
1481	1481	25 this State or claims to act without the authority.
1482	1482	26 (7) No registrant or person subject to investigation
1483	1483
1484	1484
1485	1485
1486	1486
1487	1487
1488	1488	SB0260 - 41 - LRB104 06474 BAB 16510 b
1489	1489
1490	1490
1491	1491	SB0260- 42 -LRB104 06474 BAB 16510 b SB0260 - 42 - LRB104 06474 BAB 16510 b
1492	1492	SB0260 - 42 - LRB104 06474 BAB 16510 b
1493	1493	1 or under this Section may knowingly withhold, alter,
1494	1494	2 abstract, remove, mutilate, destroy, hide, or conceal any
1495	1495	3 books, records, computer records, or other information or
1496	1496	4 take actions designed to delay or complicate review of
1497	1497	5 records.
1498	1498	6 Section 110. Confidentiality. To promote more effective
1499	1499	7 regulation, protect consumers and financing recipients, and
1500	1500	8 reduce regulatory burden through inter-regulatory sharing of
1501	1501	9 confidential supervisory information:
1502	1502	10 (1) The privacy or confidentiality of any information
1503	1503	11 or material provided to a multistate licensing system,
1504	1504	12 including all privileges arising under federal or state
1505	1505	13 court rules and law, shall continue to apply to the
1506	1506	14 information or material after the information or material
1507	1507	15 has been disclosed to the multistate licensing system.
1508	1508	16 Information and material may be shared with a multistate
1509	1509	17 licensing system, federal and state regulatory officials
1510	1510	18 with relevant oversight authority, and law enforcement
1511	1511	19 without the loss of privilege or the loss of
1512	1512	20 confidentiality protections.
1513	1513	21 (2) The Secretary is authorized to enter into
1514	1514	22 agreements or sharing arrangements with other governmental
1515	1515	23 agencies, the Conference of State Bank Supervisors, and
1516	1516	24 other associations representing governmental agencies.
1517	1517	25 (3) Information or material that is privileged or
1518	1518
1519	1519
1520	1520
1521	1521
1522	1522
1523	1523	SB0260 - 42 - LRB104 06474 BAB 16510 b
1524	1524
1525	1525
1526	1526	SB0260- 43 -LRB104 06474 BAB 16510 b SB0260 - 43 - LRB104 06474 BAB 16510 b
1527	1527	SB0260 - 43 - LRB104 06474 BAB 16510 b
1528	1528	1 confidential under this Act as determined by the Secretary
1529	1529	2 is not subject to the following:
1530	1530	3 (A) disclosure under any State law governing the
1531	1531	4 disclosure to the public of information held by an
1532	1532	5 officer or an agency of the State; or
1533	1533	6 (B) subpoena, discovery, or admission into
1534	1534	7 evidence, in any private civil action or
1535	1535	8 administrative process except as authorized by the
1536	1536	9 Secretary.
1537	1537	10 (4) Any other law relating to the disclosure of
1538	1538	11 confidential supervisory information that is inconsistent
1539	1539	12 with this Act shall be superseded by the requirements of
1540	1540	13 this Section to the extent the other law provides less
1541	1541	14 confidentiality or a weaker privilege for information that
1542	1542	15 is privileged or confidential under this Act.
1543	1543	16 (5) Confidential or privileged information received
1544	1544	17 from a multistate licensing system, another licensing
1545	1545	18 body, federal and state regulatory officials, or law
1546	1546	19 enforcement shall be protected to the same extent as the
1547	1547	20 Secretary's confidential and privileged information is
1548	1548	21 protected under this Act. The Secretary may also protect
1549	1549	22 from disclosure confidential or privileged information
1550	1550	23 that would be exempt from disclosure to the extent it is
1551	1551	24 held directly by the multistate licensing system, another
1552	1552	25 licensing body, federal and state regulatory officials, or
1553	1553	26 law enforcement.
1554	1554
1555	1555
1556	1556
1557	1557
1558	1558
1559	1559	SB0260 - 43 - LRB104 06474 BAB 16510 b
1560	1560
1561	1561
1562	1562	SB0260- 44 -LRB104 06474 BAB 16510 b SB0260 - 44 - LRB104 06474 BAB 16510 b
1563	1563	SB0260 - 44 - LRB104 06474 BAB 16510 b
1564	1564	1 Section 115. Appeal and review.
1565	1565	2 (a) The Secretary may, in accordance with the Illinois
1566	1566	3 Administrative Procedure Act, adopt rules to provide for
1567	1567	4 review within the Department of their decisions affecting the
1568	1568	5 rights of persons under this Act. The review shall provide
1569	1569	6 for, at a minimum:
1570	1570	7 (1) appointment of a hearing officer;
1571	1571	8 (2) appropriate procedural rules, specific deadlines
1572	1572	9 for filings, and standards of evidence and of proof; and
1573	1573	10 (3) provisions for apportioning costs among parties to
1574	1574	11 the appeal.
1575	1575	12 (b) All final agency determinations of appeals to
1576	1576	13 decisions of the Secretary may be reviewed in accordance with
1577	1577	14 and under the provisions of the Administrative Review Law.
1578	1578	15 Appeals from all final orders and judgments entered by a court
1579	1579	16 in review of any final administrative decision of the
1580	1580	17 Secretary or of any final agency review of a decision of the
1581	1581	18 Secretary may be taken as in other civil cases.
1582	1582	19 Section 120. Registration fees.
1583	1583	20 (a) The fee for initial registration is $2,500. The fee is
1584	1584	21 nonrefundable.
1585	1585	22 (b) The fee for annual application renewal is $2,500. The
1586	1586	23 fee is nonrefundable.
1587	1587	24 (c) The Department shall impose a contingent fee
1588	1588
1589	1589
1590	1590
1591	1591
1592	1592
1593	1593	SB0260 - 44 - LRB104 06474 BAB 16510 b
1594	1594
1595	1595
1596	1596	SB0260- 45 -LRB104 06474 BAB 16510 b SB0260 - 45 - LRB104 06474 BAB 16510 b
1597	1597	SB0260 - 45 - LRB104 06474 BAB 16510 b
1598	1598	1 sufficient to cover its operating expenses in administering
1599	1599	2 this Act not otherwise covered by all other revenue collected
1600	1600	3 under this Act. Each registrant shall pay to the Division its
1601	1601	4 pro rata share, based on number or volume of transactions or
1602	1602	5 revenue, of the cost for administration of this Act that
1603	1603	6 exceeds other fees listed in this Section, as estimated by the
1604	1604	7 Division, for the current year and any deficit actually
1605	1605	8 incurred in the administration of this Act in prior years.
1606	1606	9 Section 125. Cease and desist order.
1607	1607	10 (a) The Secretary may issue a cease and desist order to any
1608	1608	11 registrant or person doing business without the required
1609	1609	12 registration when, in the opinion of the Secretary, the
1610	1610	13 registrant or other person has violated, is violating, or is
1611	1611	14 about to violate any provision of this Act or any rule adopted
1612	1612	15 by the Department under this Act or any requirement imposed in
1613	1613	16 writing by the Department as a condition of granting any
1614	1614	17 authorization permitted by this Act. The cease and desist
1615	1615	18 order authorized by this Section may be issued prior to a
1616	1616	19 hearing.
1617	1617	20 (b) The Secretary shall serve notice of the cease and
1618	1618	21 desist order, either personally or by certified mail. Service
1619	1619	22 by certified mail shall be deemed completed when the notice is
1620	1620	23 deposited in the U.S. Mail. The Secretary's notice shall
1621	1621	24 include a statement of the reasons for the action.
1622	1622	25 (c) Within 10 days after service of the cease and desist
1623	1623
1624	1624
1625	1625
1626	1626
1627	1627
1628	1628	SB0260 - 45 - LRB104 06474 BAB 16510 b
1629	1629
1630	1630
1631	1631	SB0260- 46 -LRB104 06474 BAB 16510 b SB0260 - 46 - LRB104 06474 BAB 16510 b
1632	1632	SB0260 - 46 - LRB104 06474 BAB 16510 b
1633	1633	1 order, the person subject to the cease and desist order may
1634	1634	2 request a hearing in writing. The Secretary shall schedule a
1635	1635	3 preliminary hearing within 60 days after the request for a
1636	1636	4 hearing unless the parties agree to a later date.
1637	1637	5 (d) If it is determined that the Secretary had the
1638	1638	6 authority to issue the cease and desist order, the Secretary
1639	1639	7 may issue the orders as may be reasonably necessary to
1640	1640	8 correct, eliminate, deter, or remedy the conduct described in
1641	1641	9 the order and resulting harms.
1642	1642	10 (e) The powers vested in the Secretary by this Section are
1643	1643	11 additional to all other powers and remedies vested in the
1644	1644	12 Secretary by any law. Nothing in this Section shall be
1645	1645	13 construed as requiring that the Secretary shall employ the
1646	1646	14 power conferred in this Section instead of or as a condition
1647	1647	15 precedent to the exercise of any other power or remedy vested
1648	1648	16 in the Secretary.
1649	1649	17 Section 130. Injunctions. The Secretary may maintain an
1650	1650	18 action in the name of the people of this State and may apply
1651	1651	19 for an injunction in the circuit court to enjoin a person from
1652	1652	20 violating this Act or its implementing rules through the
1653	1653	21 Attorney General.
1654	1654	22 Section 135. Exemptions. This Act does not apply to, and
1655	1655	23 does not place any additional requirements or obligations
1656	1656	24 upon, any of the following:
1657	1657
1658	1658
1659	1659
1660	1660
1661	1661
1662	1662	SB0260 - 46 - LRB104 06474 BAB 16510 b
1663	1663
1664	1664
1665	1665	SB0260- 47 -LRB104 06474 BAB 16510 b SB0260 - 47 - LRB104 06474 BAB 16510 b
1666	1666	SB0260 - 47 - LRB104 06474 BAB 16510 b
1667	1667	1 (1) any person or entity that is not a provider;
1668	1668	2 (2) a commercial financing transaction secured by real
1669	1669	3 property;
1670	1670	4 (3) a lease as defined in Section 2-A-103 of the
1671	1671	5 Uniform Commercial Code, not including finance leases as
1672	1672	6 defined in paragraph (g) of subsection (1) of Section
1673	1673	7 2A-103 of the Uniform Commercial Code; or
1674	1674	8 (4) a company primarily in the business of
1675	1675	9 manufacturing equipment, or any subsidiary or affiliate of
1676	1676	10 such a company, when offering a commercial financing
1677	1677	11 transaction for which the majority of the proceeds are
1678	1678	12 used to finance nonfinancial products manufactured by the
1679	1679	13 company, or any subsidiary or affiliate of such a company,
1680	1680	14 or the maintenance of or other services on such products;
1681	1681	15 (5) any person or provider who makes no more than 5
1682	1682	16 commercial financing transactions in this State in a
1683	1683	17 12-month period;
1684	1684	18 (6) a single, discrete commercial financing
1685	1685	19 transaction in an amount over $500,000; or
1686	1686	20 (7) a commercial financing transaction in which the
1687	1687	21 recipient is a vehicle dealer subject to Section 5-101 or
1688	1688	22 5-102 of the Illinois Vehicle Code, an affiliate of a
1689	1689	23 dealer, a rental vehicle company as defined in Section 10
1690	1690	24 of the Renter's Financial Responsibility and Protection
1691	1691	25 Act, or an affiliate of a company under a commercial
1692	1692	26 financing agreement or commercial open-end credit plan of
1693	1693
1694	1694
1695	1695
1696	1696
1697	1697
1698	1698	SB0260 - 47 - LRB104 06474 BAB 16510 b
1699	1699
1700	1700
1701	1701	SB0260- 48 -LRB104 06474 BAB 16510 b SB0260 - 48 - LRB104 06474 BAB 16510 b
1702	1702	SB0260 - 48 - LRB104 06474 BAB 16510 b
1703	1703	1 at least $50,000, including any commercial loan made under
1704	1704	2 a commercial financing transaction.
1705	1705	3 Section 140. Complaint disclosure. All commercial
1706	1706	4 financing shall include a clear and conspicuous notice on how
1707	1707	5 to file a complaint with the Department.
1708	1708	6 Section 145. Rules. The Secretary may adopt rules to enact
1709	1709	7 and enforce this Act, including, but not limited to:
1710	1710	8 (1) rules defining the terms used in this Act and as
1711	1711	9 may be necessary and appropriate to interpret and
1712	1712	10 implement the provisions of this Act;
1713	1713	11 (2) rules for the enforcement and administration of
1714	1714	12 this Act;
1715	1715	13 (3) rules for the protection of consumers and
1716	1716	14 recipients in this State;
1717	1717	15 (4) rules defining improper or fraudulent business
1718	1718	16 practices in connection with commercial financing; and
1719	1719	17 (5) rules to implement Section 165.
1720	1720	18 Section 150. Violations.
1721	1721	19 (a) Nothing in this Act shall be construed to restrict the
1722	1722	20 exercise of powers or the performance of the duties that the
1723	1723	21 Attorney General is authorized to exercise or perform by law.
1724	1724	22 (b) Any violation of this Act constitutes an unlawful
1725	1725	23 practice in violation of the Consumer Fraud and Deceptive
1726	1726
1727	1727
1728	1728
1729	1729
1730	1730
1731	1731	SB0260 - 48 - LRB104 06474 BAB 16510 b
1732	1732
1733	1733
1734	1734	SB0260- 49 -LRB104 06474 BAB 16510 b SB0260 - 49 - LRB104 06474 BAB 16510 b
1735	1735	SB0260 - 49 - LRB104 06474 BAB 16510 b
1736	1736	1 Business Practices Act. The Attorney General may enforce a
1737	1737	2 violation of this Act as an unlawful practice under the
1738	1738	3 Consumer Fraud and Deceptive Business Practices Act.
1739	1739	4 Section 152. Limitation on liability. No provision of this
1740	1740	5 Act imposes any liability on a provider as a result of the
1741	1741	6 actual annual percentage rate charged by a provider differing
1742	1742	7 from the estimated annual percentage rate disclosed in
1743	1743	8 conformity with any regulation, order, or written interpretive
1744	1744	9 opinion of the Secretary or any such opinion of the Attorney
1745	1745	10 General, whether or not such regulation, order, or written
1746	1746	11 interpretive opinion is later amended, rescinded, or repealed
1747	1747	12 or determined by judicial or other authority to be invalid for
1748	1748	13 any reason.
1749	1749	14 Section 155. Beginning of registration. No person shall be
1750	1750	15 required to register under this Act before the date
1751	1751	16 established by the Department by rule. The date shall not be
1752	1752	17 before January 1, 2026.
1753	1753	18 Section 160. Beginning of disclosure requirements. No
1754	1754	19 person shall be required to comply with the disclosure
1755	1755	20 requirements set forth in Sections 45, 50, 55, 60, 65, 70, and
1756	1756	21 165 before the date established by the Department by rule. The
1757	1757	22 date shall not be before January 1, 2026.
1758	1758
1759	1759
1760	1760
1761	1761
1762	1762
1763	1763	SB0260 - 49 - LRB104 06474 BAB 16510 b
1764	1764
1765	1765
1766	1766	SB0260- 50 -LRB104 06474 BAB 16510 b SB0260 - 50 - LRB104 06474 BAB 16510 b
1767	1767	SB0260 - 50 - LRB104 06474 BAB 16510 b
1768	1768	1 Section 165. Commercial financing database.
1769	1769	2 (a) A commercial financing database program is established
1770	1770	3 within the Department. The program shall be administered in
1771	1771	4 accordance with this Section. None of the duties, obligations,
1772	1772	5 contingencies, or consequences of or from the program shall be
1773	1773	6 imposed until 6 months after the Department certifies a
1774	1774	7 commercial financing database under subsection (b). The
1775	1775	8 program shall apply to all sales-based financings and
1776	1776	9 commercial closed-end financings for which interest charges
1777	1777	10 that accrue on the outstanding balance represent a minority of
1778	1778	11 the finance charge that are governed by this Act and that are
1779	1779	12 made or taken on or after the inception of the program.
1780	1780	13 (b) The Department shall certify that a commercial
1781	1781	14 financing database is a commercially reasonable method of
1782	1782	15 reporting. Upon certifying that a commercial financing
1783	1783	16 database is a commercially reasonable method of reporting, the
1784	1784	17 Department shall:
1785	1785	18 (1) provide reasonable notice to all registrants
1786	1786	19 identifying the commercially reasonable method of
1787	1787	20 reporting that is available; and
1788	1788	21 (2) no earlier than 6 months after certification,
1789	1789	22 require each registrant offering sales-based financing or
1790	1790	23 commercial closed-end financings for which interest
1791	1791	24 charges that accrue on the outstanding balance represent a
1792	1792	25 minority of the finance charge to use a commercially
1793	1793	26 reasonable method of reporting as a means of complying
1794	1794
1795	1795
1796	1796
1797	1797
1798	1798
1799	1799	SB0260 - 50 - LRB104 06474 BAB 16510 b
1800	1800
1801	1801
1802	1802	SB0260- 51 -LRB104 06474 BAB 16510 b SB0260 - 51 - LRB104 06474 BAB 16510 b
1803	1803	SB0260 - 51 - LRB104 06474 BAB 16510 b
1804	1804	1 with subsection (d) of this Section.
1805	1805	2 (c) The database created under this program shall be
1806	1806	3 maintained and administered by the Department. The database
1807	1807	4 shall be designed to allow providers to submit information to
1808	1808	5 the database online. The database shall not be designed to
1809	1809	6 allow providers to retrieve information from the database,
1810	1810	7 except as otherwise provided in this Act.
1811	1811	8 (d) Within 30 days after providing funds to a recipient,
1812	1812	9 the provider shall submit to the commercial financing database
1813	1813	10 the information delineated in subsections (e) and (f). If at
1814	1814	11 the time funds are provided to a recipient, certain
1815	1815	12 information delineated in this subsection is not known, then
1816	1816	13 the provider shall submit the information to the commercial
1817	1817	14 financing database within 30 days after the information
1818	1818	15 becoming ascertainable.
1819	1819	16 (e) For sales-based financings, the provider shall submit
1820	1820	17 the following information to the commercial financing
1821	1821	18 database:
1822	1822	19 (1) the FEIN for the recipient;
1823	1823	20 (2) the zip code of the recipient;
1824	1824	21 (3) the date on which the disclosure required under
1825	1825	22 Section 45 was provided;
1826	1826	23 (4) the origination date of the sales-based financing;
1827	1827	24 (5) the total amount of commercial financing;
1828	1828	25 (6) the disbursed amount after any amount deducted or
1829	1829	26 withheld at disbursement, if different than the financing
1830	1830
1831	1831
1832	1832
1833	1833
1834	1834
1835	1835	SB0260 - 51 - LRB104 06474 BAB 16510 b
1836	1836
1837	1837
1838	1838	SB0260- 52 -LRB104 06474 BAB 16510 b SB0260 - 52 - LRB104 06474 BAB 16510 b
1839	1839	SB0260 - 52 - LRB104 06474 BAB 16510 b
1840	1840	1 amount;
1841	1841	2 (7) the finance charge;
1842	1842	3 (8) the estimated annual percentage rate as disclosed
1843	1843	4 to the recipient under paragraph (3) of Section 45;
1844	1844	5 (9) the total repayment amount;
1845	1845	6 (10) the estimated term, as disclosed to the recipient
1846	1846	7 under paragraph (5) of Section 45;
1847	1847	8 (11) the percentage of the recipient's sales upon
1848	1848	9 which the payment is calculated;
1849	1849	10 (12) the frequency of payment, and the total amount of
1850	1850	11 average projected payments per month, as disclosed to the
1851	1851	12 recipient under paragraph (6) of Section 45;
1852	1852	13 (13) whether the projected sales volume used to
1853	1853	14 determine the estimated annual percentage rate, estimated
1854	1854	15 term, and projected payments provided in the disclosure
1855	1855	16 under Section 45 were determined according to the
1856	1856	17 historical method described in subparagraph (A) of
1857	1857	18 paragraph (3) of Section 45 or according to the
1858	1858	19 underwriting method described in subparagraph (B) of
1859	1859	20 paragraph (3) of Section 45;
1860	1860	21 (14) the amount of any finance charge the recipient
1861	1861	22 would be required to pay if the recipient elects to pay off
1862	1862	23 or refinance the sales-based financing before full
1863	1863	24 repayment, as disclosed to the recipient;
1864	1864	25 (15) description of collateral, if any, securing the
1865	1865	26 sales-based financing, including any guarantee;
1866	1866
1867	1867
1868	1868
1869	1869
1870	1870
1871	1871	SB0260 - 52 - LRB104 06474 BAB 16510 b
1872	1872
1873	1873
1874	1874	SB0260- 53 -LRB104 06474 BAB 16510 b SB0260 - 53 - LRB104 06474 BAB 16510 b
1875	1875	SB0260 - 53 - LRB104 06474 BAB 16510 b
1876	1876	1 (16) the position of any lien taken;
1877	1877	2 (17) upon full repayment, if the sales-based financing
1878	1878	3 includes a true-up mechanism, the number of true-ups
1879	1879	4 provided;
1880	1880	5 (18) upon full repayment, the actual term of the
1881	1881	6 commercial financing;
1882	1882	7 (19) upon full repayment, the actual annual percentage
1883	1883	8 rate calculated retrospectively based on the actual
1884	1884	9 payments collected; and
1885	1885	10 (20) all other information requested by the
1886	1886	11 Department.
1887	1887	12 (f) For closed-end financing for which interest charges
1888	1888	13 that accrue on the outstanding balance represent a minority of
1889	1889	14 the finance charge submit, the following information to the
1890	1890	15 commercial financing database:
1891	1891	16 (1) the FEIN for the recipient;
1892	1892	17 (2) the zip code of the recipient;
1893	1893	18 (3) the date on which the disclosure required under
1894	1894	19 Section 50 was provided;
1895	1895	20 (4) the origination date;
1896	1896	21 (5) the total amount of commercial financing;
1897	1897	22 (6) the disbursed amount after any amount deducted or
1898	1898	23 withheld at disbursement, if different than the financing
1899	1899	24 amount;
1900	1900	25 (7) the finance charge;
1901	1901	26 (8) the annual percentage rate as disclosed to the
1902	1902
1903	1903
1904	1904
1905	1905
1906	1906
1907	1907	SB0260 - 53 - LRB104 06474 BAB 16510 b
1908	1908
1909	1909
1910	1910	SB0260- 54 -LRB104 06474 BAB 16510 b SB0260 - 54 - LRB104 06474 BAB 16510 b
1911	1911	SB0260 - 54 - LRB104 06474 BAB 16510 b
1912	1912	1 recipient under paragraph (3) of Section 50;
1913	1913	2 (9) the total repayment amount;
1914	1914	3 (10) the term of the financing;
1915	1915	4 (11) the frequency of payment;
1916	1916	5 (12) the amount of the payment, and the total amount
1917	1917	6 of average projected payments per month, as disclosed to
1918	1918	7 the recipient under paragraph (6) of Section 50;
1919	1919	8 (13) the amount of any finance charge the recipient
1920	1920	9 would be required to pay if the recipient elects to pay off
1921	1921	10 or refinance the commercial financing before full
1922	1922	11 repayment, other than interest accrued since the last
1923	1923	12 payment, as disclosed to the recipient;
1924	1924	13 (14) whether the recipient would be required to pay
1925	1925	14 any additional fees not already included in the finance
1926	1926	15 charge if the recipient elects to pay off or refinance the
1927	1927	16 commercial financing before full repayment, as disclosed
1928	1928	17 to the recipient;
1929	1929	18 (15) description of collateral, if any, securing the
1930	1930	19 commercial financing, including any guarantee;
1931	1931	20 (16) the position of any lien taken; and
1932	1932	21 (17) all other information requested by the
1933	1933	22 Department.
1934	1934	23 (g) All personally identifiable information and
1935	1935	24 information identifying the identity of a recipient obtained
1936	1936	25 by way of the commercial financing database is strictly
1937	1937	26 confidential and shall be exempt from disclosure under the
1938	1938
1939	1939
1940	1940
1941	1941
1942	1942
1943	1943	SB0260 - 54 - LRB104 06474 BAB 16510 b
1944	1944
1945	1945
1946	1946	SB0260- 55 -LRB104 06474 BAB 16510 b SB0260 - 55 - LRB104 06474 BAB 16510 b
1947	1947	SB0260 - 55 - LRB104 06474 BAB 16510 b
1948	1948	1 Freedom of Information Act and any other law or regulation
1949	1949	2 pertaining to the disclosure of information or documents. The
1950	1950	3 Department may, by rule, identify any additional categories of
1951	1951	4 information the disclosure of which would be contrary to the
1952	1952	5 public interest. Any request for production of information
1953	1953	6 from the commercial financing database, whether by subpoena,
1954	1954	7 notice, or any other source, shall be referred to the
1955	1955	8 Department. Any recipient may authorize in writing the release
1956	1956	9 of database information. The Department may use the
1957	1957	10 information in the database without the consent of the
1958	1958	11 recipient or the registrant:
1959	1959	12 (1) for the purposes of administering and enforcing
1960	1960	13 the program;
1961	1961	14 (2) to prepare industry-level reports;
1962	1962	15 (3) to provide information to the appropriate law
1963	1963	16 enforcement agency or the applicable administrative or
1964	1964	17 regulatory agency with a legitimate interest in the
1965	1965	18 information as determined by the Secretary;
1966	1966	19 (4) as required to comply with applicable law; or
1967	1967	20 (5) in any other manner that the Secretary deems is
1968	1968	21 not contrary to the public interest.
1969	1969	22 (h) A registrant who submits information to a certified
1970	1970	23 database provider in accordance with this Section shall not be
1971	1971	24 liable to any person for any subsequent release or disclosure
1972	1972	25 of that information by the certified database provider, the
1973	1973	26 Department, or any other person acquiring possession of the
1974	1974
1975	1975
1976	1976
1977	1977
1978	1978
1979	1979	SB0260 - 55 - LRB104 06474 BAB 16510 b
1980	1980
1981	1981
1982	1982	SB0260- 56 -LRB104 06474 BAB 16510 b SB0260 - 56 - LRB104 06474 BAB 16510 b
1983	1983	SB0260 - 56 - LRB104 06474 BAB 16510 b
1984	1984	1 information, regardless of whether the subsequent release or
1985	1985	2 disclosure was lawful, authorized, or intentional.
1986	1986	3 (i) In certifying a commercially reasonable method of
1987	1987	4 reporting, the Department shall ensure that the commercial
1988	1988	5 financing database:
1989	1989	6 (1) provides real-time access through an Internet
1990	1990	7 connection;
1991	1991	8 (2) is accessible to the Department and to registrants
1992	1992	9 in order to ensure compliance with this Act and in order to
1993	1993	10 provide any other information that the Department deems
1994	1994	11 necessary;
1995	1995	12 (3) requires registrants to input whatever information
1996	1996	13 is required by the Department;
1997	1997	14 (4) maintains a real-time copy of the required
1998	1998	15 reporting information that is available to the Department
1999	1999	16 at all times and is the property of the Department; and
2000	2000	17 (5) contains safeguards to ensure that all information
2001	2001	18 contained in the database regarding consumers and
2002	2002	19 financing recipients is kept strictly confidential.
2003	2003	20 (j) The certified commercial financing database may charge
2004	2004	21 a fee to a registrant not to exceed $1 for each financing
2005	2005	22 entered into the database. The certified commercial financing
2006	2006	23 database shall not charge any additional fees or charges.
2007	2007	24 (k) The certified commercial financing database provider
2008	2008	25 shall produce an annual report for the Department using the
2009	2009	26 data submitted by registrants to the database. The Department
2010	2010
2011	2011
2012	2012
2013	2013
2014	2014
2015	2015	SB0260 - 56 - LRB104 06474 BAB 16510 b
2016	2016
2017	2017
2018	2018	SB0260- 57 -LRB104 06474 BAB 16510 b SB0260 - 57 - LRB104 06474 BAB 16510 b
2019	2019	SB0260 - 57 - LRB104 06474 BAB 16510 b
2020	2020	1 may publish this report to the public.
2021	2021	2 Section 170. Severability. The provisions of this Act are
2022	2022	3 severable under Section 1.31 of the Statute on Statutes.
2023	2023	4 Section 900. The Freedom of Information Act is amended by
2024	2024	5 changing Section 7.5 as follows:
2025	2025	6 (5 ILCS 140/7.5)
2026	2026	7 Sec. 7.5. Statutory exemptions. To the extent provided for
2027	2027	8 by the statutes referenced below, the following shall be
2028	2028	9 exempt from inspection and copying:
2029	2029	10 (a) All information determined to be confidential
2030	2030	11 under Section 4002 of the Technology Advancement and
2031	2031	12 Development Act.
2032	2032	13 (b) Library circulation and order records identifying
2033	2033	14 library users with specific materials under the Library
2034	2034	15 Records Confidentiality Act.
2035	2035	16 (c) Applications, related documents, and medical
2036	2036	17 records received by the Experimental Organ Transplantation
2037	2037	18 Procedures Board and any and all documents or other
2038	2038	19 records prepared by the Experimental Organ Transplantation
2039	2039	20 Procedures Board or its staff relating to applications it
2040	2040	21 has received.
2041	2041	22 (d) Information and records held by the Department of
2042	2042	23 Public Health and its authorized representatives relating
2043	2043
2044	2044
2045	2045
2046	2046
2047	2047
2048	2048	SB0260 - 57 - LRB104 06474 BAB 16510 b
2049	2049
2050	2050
2051	2051	SB0260- 58 -LRB104 06474 BAB 16510 b SB0260 - 58 - LRB104 06474 BAB 16510 b
2052	2052	SB0260 - 58 - LRB104 06474 BAB 16510 b
2053	2053	1 to known or suspected cases of sexually transmitted
2054	2054	2 infection or any information the disclosure of which is
2055	2055	3 restricted under the Illinois Sexually Transmitted
2056	2056	4 Infection Control Act.
2057	2057	5 (e) Information the disclosure of which is exempted
2058	2058	6 under Section 30 of the Radon Industry Licensing Act.
2059	2059	7 (f) Firm performance evaluations under Section 55 of
2060	2060	8 the Architectural, Engineering, and Land Surveying
2061	2061	9 Qualifications Based Selection Act.
2062	2062	10 (g) Information the disclosure of which is restricted
2063	2063	11 and exempted under Section 50 of the Illinois Prepaid
2064	2064	12 Tuition Act.
2065	2065	13 (h) Information the disclosure of which is exempted
2066	2066	14 under the State Officials and Employees Ethics Act, and
2067	2067	15 records of any lawfully created State or local inspector
2068	2068	16 general's office that would be exempt if created or
2069	2069	17 obtained by an Executive Inspector General's office under
2070	2070	18 that Act.
2071	2071	19 (i) Information contained in a local emergency energy
2072	2072	20 plan submitted to a municipality in accordance with a
2073	2073	21 local emergency energy plan ordinance that is adopted
2074	2074	22 under Section 11-21.5-5 of the Illinois Municipal Code.
2075	2075	23 (j) Information and data concerning the distribution
2076	2076	24 of surcharge moneys collected and remitted by carriers
2077	2077	25 under the Emergency Telephone System Act.
2078	2078	26 (k) Law enforcement officer identification information
2079	2079
2080	2080
2081	2081
2082	2082
2083	2083
2084	2084	SB0260 - 58 - LRB104 06474 BAB 16510 b
2085	2085
2086	2086
2087	2087	SB0260- 59 -LRB104 06474 BAB 16510 b SB0260 - 59 - LRB104 06474 BAB 16510 b
2088	2088	SB0260 - 59 - LRB104 06474 BAB 16510 b
2089	2089	1 or driver identification information compiled by a law
2090	2090	2 enforcement agency or the Department of Transportation
2091	2091	3 under Section 11-212 of the Illinois Vehicle Code.
2092	2092	4 (l) Records and information provided to a residential
2093	2093	5 health care facility resident sexual assault and death
2094	2094	6 review team or the Executive Council under the Abuse
2095	2095	7 Prevention Review Team Act.
2096	2096	8 (m) Information provided to the predatory lending
2097	2097	9 database created pursuant to Article 3 of the Residential
2098	2098	10 Real Property Disclosure Act, except to the extent
2099	2099	11 authorized under that Article.
2100	2100	12 (n) Defense budgets and petitions for certification of
2101	2101	13 compensation and expenses for court appointed trial
2102	2102	14 counsel as provided under Sections 10 and 15 of the
2103	2103	15 Capital Crimes Litigation Act (repealed). This subsection
2104	2104	16 (n) shall apply until the conclusion of the trial of the
2105	2105	17 case, even if the prosecution chooses not to pursue the
2106	2106	18 death penalty prior to trial or sentencing.
2107	2107	19 (o) Information that is prohibited from being
2108	2108	20 disclosed under Section 4 of the Illinois Health and
2109	2109	21 Hazardous Substances Registry Act.
2110	2110	22 (p) Security portions of system safety program plans,
2111	2111	23 investigation reports, surveys, schedules, lists, data, or
2112	2112	24 information compiled, collected, or prepared by or for the
2113	2113	25 Department of Transportation under Sections 2705-300 and
2114	2114	26 2705-616 of the Department of Transportation Law of the
2115	2115
2116	2116
2117	2117
2118	2118
2119	2119
2120	2120	SB0260 - 59 - LRB104 06474 BAB 16510 b
2121	2121
2122	2122
2123	2123	SB0260- 60 -LRB104 06474 BAB 16510 b SB0260 - 60 - LRB104 06474 BAB 16510 b
2124	2124	SB0260 - 60 - LRB104 06474 BAB 16510 b
2125	2125	1 Civil Administrative Code of Illinois, the Regional
2126	2126	2 Transportation Authority under Section 2.11 of the
2127	2127	3 Regional Transportation Authority Act, or the St. Clair
2128	2128	4 County Transit District under the Bi-State Transit Safety
2129	2129	5 Act (repealed).
2130	2130	6 (q) Information prohibited from being disclosed by the
2131	2131	7 Personnel Record Review Act.
2132	2132	8 (r) Information prohibited from being disclosed by the
2133	2133	9 Illinois School Student Records Act.
2134	2134	10 (s) Information the disclosure of which is restricted
2135	2135	11 under Section 5-108 of the Public Utilities Act.
2136	2136	12 (t) (Blank).
2137	2137	13 (u) Records and information provided to an independent
2138	2138	14 team of experts under the Developmental Disability and
2139	2139	15 Mental Health Safety Act (also known as Brian's Law).
2140	2140	16 (v) Names and information of people who have applied
2141	2141	17 for or received Firearm Owner's Identification Cards under
2142	2142	18 the Firearm Owners Identification Card Act or applied for
2143	2143	19 or received a concealed carry license under the Firearm
2144	2144	20 Concealed Carry Act, unless otherwise authorized by the
2145	2145	21 Firearm Concealed Carry Act; and databases under the
2146	2146	22 Firearm Concealed Carry Act, records of the Concealed
2147	2147	23 Carry Licensing Review Board under the Firearm Concealed
2148	2148	24 Carry Act, and law enforcement agency objections under the
2149	2149	25 Firearm Concealed Carry Act.
2150	2150	26 (v-5) Records of the Firearm Owner's Identification
2151	2151
2152	2152
2153	2153
2154	2154
2155	2155
2156	2156	SB0260 - 60 - LRB104 06474 BAB 16510 b
2157	2157
2158	2158
2159	2159	SB0260- 61 -LRB104 06474 BAB 16510 b SB0260 - 61 - LRB104 06474 BAB 16510 b
2160	2160	SB0260 - 61 - LRB104 06474 BAB 16510 b
2161	2161	1 Card Review Board that are exempted from disclosure under
2162	2162	2 Section 10 of the Firearm Owners Identification Card Act.
2163	2163	3 (w) Personally identifiable information which is
2164	2164	4 exempted from disclosure under subsection (g) of Section
2165	2165	5 19.1 of the Toll Highway Act.
2166	2166	6 (x) Information which is exempted from disclosure
2167	2167	7 under Section 5-1014.3 of the Counties Code or Section
2168	2168	8 8-11-21 of the Illinois Municipal Code.
2169	2169	9 (y) Confidential information under the Adult
2170	2170	10 Protective Services Act and its predecessor enabling
2171	2171	11 statute, the Elder Abuse and Neglect Act, including
2172	2172	12 information about the identity and administrative finding
2173	2173	13 against any caregiver of a verified and substantiated
2174	2174	14 decision of abuse, neglect, or financial exploitation of
2175	2175	15 an eligible adult maintained in the Registry established
2176	2176	16 under Section 7.5 of the Adult Protective Services Act.
2177	2177	17 (z) Records and information provided to a fatality
2178	2178	18 review team or the Illinois Fatality Review Team Advisory
2179	2179	19 Council under Section 15 of the Adult Protective Services
2180	2180	20 Act.
2181	2181	21 (aa) Information which is exempted from disclosure
2182	2182	22 under Section 2.37 of the Wildlife Code.
2183	2183	23 (bb) Information which is or was prohibited from
2184	2184	24 disclosure by the Juvenile Court Act of 1987.
2185	2185	25 (cc) Recordings made under the Law Enforcement
2186	2186	26 Officer-Worn Body Camera Act, except to the extent
2187	2187
2188	2188
2189	2189
2190	2190
2191	2191
2192	2192	SB0260 - 61 - LRB104 06474 BAB 16510 b
2193	2193
2194	2194
2195	2195	SB0260- 62 -LRB104 06474 BAB 16510 b SB0260 - 62 - LRB104 06474 BAB 16510 b
2196	2196	SB0260 - 62 - LRB104 06474 BAB 16510 b
2197	2197	1 authorized under that Act.
2198	2198	2 (dd) Information that is prohibited from being
2199	2199	3 disclosed under Section 45 of the Condominium and Common
2200	2200	4 Interest Community Ombudsperson Act.
2201	2201	5 (ee) Information that is exempted from disclosure
2202	2202	6 under Section 30.1 of the Pharmacy Practice Act.
2203	2203	7 (ff) Information that is exempted from disclosure
2204	2204	8 under the Revised Uniform Unclaimed Property Act.
2205	2205	9 (gg) Information that is prohibited from being
2206	2206	10 disclosed under Section 7-603.5 of the Illinois Vehicle
2207	2207	11 Code.
2208	2208	12 (hh) Records that are exempt from disclosure under
2209	2209	13 Section 1A-16.7 of the Election Code.
2210	2210	14 (ii) Information which is exempted from disclosure
2211	2211	15 under Section 2505-800 of the Department of Revenue Law of
2212	2212	16 the Civil Administrative Code of Illinois.
2213	2213	17 (jj) Information and reports that are required to be
2214	2214	18 submitted to the Department of Labor by registering day
2215	2215	19 and temporary labor service agencies but are exempt from
2216	2216	20 disclosure under subsection (a-1) of Section 45 of the Day
2217	2217	21 and Temporary Labor Services Act.
2218	2218	22 (kk) Information prohibited from disclosure under the
2219	2219	23 Seizure and Forfeiture Reporting Act.
2220	2220	24 (ll) Information the disclosure of which is restricted
2221	2221	25 and exempted under Section 5-30.8 of the Illinois Public
2222	2222	26 Aid Code.
2223	2223
2224	2224
2225	2225
2226	2226
2227	2227
2228	2228	SB0260 - 62 - LRB104 06474 BAB 16510 b
2229	2229
2230	2230
2231	2231	SB0260- 63 -LRB104 06474 BAB 16510 b SB0260 - 63 - LRB104 06474 BAB 16510 b
2232	2232	SB0260 - 63 - LRB104 06474 BAB 16510 b
2233	2233	1 (mm) Records that are exempt from disclosure under
2234	2234	2 Section 4.2 of the Crime Victims Compensation Act.
2235	2235	3 (nn) Information that is exempt from disclosure under
2236	2236	4 Section 70 of the Higher Education Student Assistance Act.
2237	2237	5 (oo) Communications, notes, records, and reports
2238	2238	6 arising out of a peer support counseling session
2239	2239	7 prohibited from disclosure under the First Responders
2240	2240	8 Suicide Prevention Act.
2241	2241	9 (pp) Names and all identifying information relating to
2242	2242	10 an employee of an emergency services provider or law
2243	2243	11 enforcement agency under the First Responders Suicide
2244	2244	12 Prevention Act.
2245	2245	13 (qq) Information and records held by the Department of
2246	2246	14 Public Health and its authorized representatives collected
2247	2247	15 under the Reproductive Health Act.
2248	2248	16 (rr) Information that is exempt from disclosure under
2249	2249	17 the Cannabis Regulation and Tax Act.
2250	2250	18 (ss) Data reported by an employer to the Department of
2251	2251	19 Human Rights pursuant to Section 2-108 of the Illinois
2252	2252	20 Human Rights Act.
2253	2253	21 (tt) Recordings made under the Children's Advocacy
2254	2254	22 Center Act, except to the extent authorized under that
2255	2255	23 Act.
2256	2256	24 (uu) Information that is exempt from disclosure under
2257	2257	25 Section 50 of the Sexual Assault Evidence Submission Act.
2258	2258	26 (vv) Information that is exempt from disclosure under
2259	2259
2260	2260
2261	2261
2262	2262
2263	2263
2264	2264	SB0260 - 63 - LRB104 06474 BAB 16510 b
2265	2265
2266	2266
2267	2267	SB0260- 64 -LRB104 06474 BAB 16510 b SB0260 - 64 - LRB104 06474 BAB 16510 b
2268	2268	SB0260 - 64 - LRB104 06474 BAB 16510 b
2269	2269	1 subsections (f) and (j) of Section 5-36 of the Illinois
2270	2270	2 Public Aid Code.
2271	2271	3 (ww) Information that is exempt from disclosure under
2272	2272	4 Section 16.8 of the State Treasurer Act.
2273	2273	5 (xx) Information that is exempt from disclosure or
2274	2274	6 information that shall not be made public under the
2275	2275	7 Illinois Insurance Code.
2276	2276	8 (yy) Information prohibited from being disclosed under
2277	2277	9 the Illinois Educational Labor Relations Act.
2278	2278	10 (zz) Information prohibited from being disclosed under
2279	2279	11 the Illinois Public Labor Relations Act.
2280	2280	12 (aaa) Information prohibited from being disclosed
2281	2281	13 under Section 1-167 of the Illinois Pension Code.
2282	2282	14 (bbb) Information that is prohibited from disclosure
2283	2283	15 by the Illinois Police Training Act and the Illinois State
2284	2284	16 Police Act.
2285	2285	17 (ccc) Records exempt from disclosure under Section
2286	2286	18 2605-304 of the Illinois State Police Law of the Civil
2287	2287	19 Administrative Code of Illinois.
2288	2288	20 (ddd) Information prohibited from being disclosed
2289	2289	21 under Section 35 of the Address Confidentiality for
2290	2290	22 Victims of Domestic Violence, Sexual Assault, Human
2291	2291	23 Trafficking, or Stalking Act.
2292	2292	24 (eee) Information prohibited from being disclosed
2293	2293	25 under subsection (b) of Section 75 of the Domestic
2294	2294	26 Violence Fatality Review Act.
2295	2295
2296	2296
2297	2297
2298	2298
2299	2299
2300	2300	SB0260 - 64 - LRB104 06474 BAB 16510 b
2301	2301
2302	2302
2303	2303	SB0260- 65 -LRB104 06474 BAB 16510 b SB0260 - 65 - LRB104 06474 BAB 16510 b
2304	2304	SB0260 - 65 - LRB104 06474 BAB 16510 b
2305	2305	1 (fff) Images from cameras under the Expressway Camera
2306	2306	2 Act. This subsection (fff) is inoperative on and after
2307	2307	3 July 1, 2025.
2308	2308	4 (ggg) Information prohibited from disclosure under
2309	2309	5 paragraph (3) of subsection (a) of Section 14 of the Nurse
2310	2310	6 Agency Licensing Act.
2311	2311	7 (hhh) Information submitted to the Illinois State
2312	2312	8 Police in an affidavit or application for an assault
2313	2313	9 weapon endorsement, assault weapon attachment endorsement,
2314	2314	10 .50 caliber rifle endorsement, or .50 caliber cartridge
2315	2315	11 endorsement under the Firearm Owners Identification Card
2316	2316	12 Act.
2317	2317	13 (iii) Data exempt from disclosure under Section 50 of
2318	2318	14 the School Safety Drill Act.
2319	2319	15 (jjj) Information exempt from disclosure under Section
2320	2320	16 30 of the Insurance Data Security Law.
2321	2321	17 (kkk) Confidential business information prohibited
2322	2322	18 from disclosure under Section 45 of the Paint Stewardship
2323	2323	19 Act.
2324	2324	20 (lll) Data exempt from disclosure under Section
2325	2325	21 2-3.196 of the School Code.
2326	2326	22 (mmm) Information prohibited from being disclosed
2327	2327	23 under subsection (e) of Section 1-129 of the Illinois
2328	2328	24 Power Agency Act.
2329	2329	25 (nnn) Materials received by the Department of Commerce
2330	2330	26 and Economic Opportunity that are confidential under the
2331	2331
2332	2332
2333	2333
2334	2334
2335	2335
2336	2336	SB0260 - 65 - LRB104 06474 BAB 16510 b
2337	2337
2338	2338
2339	2339	SB0260- 66 -LRB104 06474 BAB 16510 b SB0260 - 66 - LRB104 06474 BAB 16510 b
2340	2340	SB0260 - 66 - LRB104 06474 BAB 16510 b
2341	2341	1 Music and Musicians Tax Credit and Jobs Act.
2342	2342	2 (ooo) (nnn) Data or information provided pursuant to
2343	2343	3 Section 20 of the Statewide Recycling Needs and Assessment
2344	2344	4 Act.
2345	2345	5 (ppp) (nnn) Information that is exempt from disclosure
2346	2346	6 under Section 28-11 of the Lawful Health Care Activity
2347	2347	7 Act.
2348	2348	8 (qqq) (nnn) Information that is exempt from disclosure
2349	2349	9 under Section 7-101 of the Illinois Human Rights Act.
2350	2350	10 (rrr) (mmm) Information prohibited from being
2351	2351	11 disclosed under Section 4-2 of the Uniform Money
2352	2352	12 Transmission Modernization Act.
2353	2353	13 (sss) (nnn) Information exempt from disclosure under
2354	2354	14 Section 40 of the Student-Athlete Endorsement Rights Act.
2355	2355	15 (ttt) Information exempt from disclosure under Section
2356	2356	16 165 of the Small Business Financing Transparency Act.
2357	2357	17 (Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22;
2358	2358	18 102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.
2359	2359	19 8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;
2360	2360	20 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.
2361	2361	21 6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,
2362	2362	22 eff. 1-1-24; 103-472, eff. 8-1-24; 103-508, eff. 8-4-23;
2363	2363	23 103-580, eff. 12-8-23; 103-592, eff. 6-7-24; 103-605, eff.
2364	2364	24 7-1-24; 103-636, eff. 7-1-24; 103-724, eff. 1-1-25; 103-786,
2365	2365	25 eff. 8-7-24; 103-859, eff. 8-9-24; 103-991, eff. 8-9-24;
2366	2366	26 103-1049, eff. 8-9-24; revised 11-26-24.)
2367	2367
2368	2368
2369	2369
2370	2370
2371	2371
2372	2372	SB0260 - 66 - LRB104 06474 BAB 16510 b
2373	2373
2374	2374
2375	2375	SB0260- 67 -LRB104 06474 BAB 16510 b SB0260 - 67 - LRB104 06474 BAB 16510 b
2376	2376	SB0260 - 67 - LRB104 06474 BAB 16510 b
2377	2377	1 Section 905. The Consumer Fraud and Deceptive Business
2378	2378	2 Practices Act is amended by adding Section 2HHHH as follows:
2379	2379	3 (815 ILCS 505/2HHHH new)
2380	2380	4 Sec. 2HHHH. Violations of the Small Business Financing
2381	2381	5 Transparency Act. Any person who violates the Small Business
2382	2382	6 Financing Transparency Act commits an unlawful practice within
2383	2383	7 the meaning of this Act.
2384	2384
2385	2385
2386	2386
2387	2387
2388	2388
2389	2389	SB0260 - 67 - LRB104 06474 BAB 16510 b