Sen. Christopher Belt

Filed: 3/8/2024

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1 AMENDMENT TO SENATE BILL 2234

2 AMENDMENT NO. ______. Amend Senate Bill 2234 by replacing

3 everything after the enacting clause with the following:

4 "Section 1. Short title. This Act may be cited as the

5 Consumer Protections for Small Business Act.

6 Section 2. Purpose and construction. The purpose of this

7 Act is to protect business owners. This Act shall be liberally

8 construed to effectuate its purpose.

9 Section 5. Definitions. As used in this Act:

10 "Applicant" means a person who has submitted an

11 application for a license under this Act.

12 "Closed-end financing" means a closed-end extension of

13 credit, secured or unsecured, recourse or nonrecourse,

14 including equipment financing that does not meet the

15 definition of a lease under Section 2A-103 of the Uniform

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1 Commercial Code, that the recipient does not intend to use for

2 personal, family, or household purposes. "Closed-end

3 financing" includes financing with an established principal

4 amount and duration.

5 "Commercial financing database" means a reporting database

6 certified by the Department as effective in receiving a report

7 of commercial financing made under this Act.

8 "Commercial financing database provider" means an entity

9 that provides a reporting database certified by the Department

10 under this Act.

11 "Commercial financing" means open-end financing,

12 closed-end financing, sales-based financing, factoring

13 transaction, or other form of financing, the proceeds of which

14 the recipient does not intend to use primarily for personal,

15 family, or household purposes. For purposes of determining

16 whether a financing is a commercial financing, the provider

17 may rely on any statement of intended purposes by the

18 recipient. The statement may be a separate statement signed by

19 the recipient; may be contained in the financing application,

20 financing agreement, or other document signed or consented to

21 by the recipient; or may be provided orally by the recipient so

22 long as it is documented in the recipient's application file

23 by the provider. Electronic signatures and consents are valid

24 for purposes of the foregoing sentence. The provider shall not

25 be required to ascertain that the proceeds of a commercial

26 financing are used in accordance with the recipient's

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1 statement of intended purposes.

2 "Department" means the Department of Financial and

3 Professional Regulation.

4 "Division of Financial Institutions" or "Division" means

5 the Division of Financial Institutions of the Department of

6 Financial and Professional Regulation.

7 "Factoring transaction" means an accounts receivable

8 purchase transaction that includes an agreement to purchase,

9 transfer, or sell a legally enforceable claim for payment held

10 by a recipient for goods the recipient has supplied or

11 services the recipient has rendered that have been ordered but

12 for which payment has not yet been made.

13 "Finance charge" means the cost of financing as a dollar

14 amount. "Finance charge" includes any charge payable directly

15 or indirectly by the recipient and imposed directly or

16 indirectly by the provider as an incident to or a condition of

17 the extension of financing. "Finance charge" includes any

18 charges as determined by the Secretary. For the purposes of an

19 open-end financing, "finance charge" means the maximum amount

20 of credit available to the recipient, in each case, that is

21 drawn and held for the duration of the term or draw period. For

22 the purposes of a factoring transaction, "finance charge"

23 includes the discount taken on the face value of the accounts

24 receivable. In addition, the finance charge shall include any

25 charges determined by the Secretary.

26 "Open-end financing" means an agreement for one or more

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1 extensions of open-end credit, secured or unsecured, that the

2 recipient does not intend to use the proceeds of primarily for

3 personal, family, or household purposes. "Open-end financing"

4 includes credit extended by a provider under a plan in which:

5 (i) the provider reasonably contemplates repeated

6 transactions; (ii) the provider may impose a finance charge

7 from time to time on an outstanding unpaid balance; and (iii)

8 the amount of credit that may be extended to the recipient

9 during the term of the plan is generally made available to the

10 extent that any outstanding balance is repaid.

11 "Person" means an individual, entity, corporation,

12 partnership, limited liability company, joint venture,

13 association, joint stock company, trust, or unincorporated

14 organization, including, but not limited to, a sole

15 proprietorship.

16 "Provider" means a person who extends a specific offer of

17 commercial financing to a recipient. "Provider", unless

18 otherwise exempt, includes a person who solicits and presents

19 specific offers of commercial financing on behalf of a third

20 party. The mere extension of a specific offer or provision of

21 disclosures for a commercial financing, is not sufficient to

22 conclude that a provider is originating, making, funding, or

23 providing commercial financing. "Provider" does not include:

24 (1) a bank, trust company, or industrial loan company,

25 or any subsidiary or affiliate thereof, doing business

26 under the authority of, or in accordance with, a license,

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1 certificate or charter issued by the United States, this

2 State, or any other state, district, territory, or

3 commonwealth of the United States that is authorized to

4 transact business in this State;

5 (2) a federally chartered savings and loan

6 association, federal savings bank, or federal credit

7 union, or any subsidiary or affiliate thereof, that is

8 authorized to transact business in this State;

9 (3) a savings and loan association, savings bank, or

10 credit union, or any subsidiary or affiliate thereof,

11 organized under the laws of this State or any other state

12 that is authorized to transact business in this State;

13 (4) a lender regulated under the federal Farm Credit

14 Act; and

15 (5) a person acting as a technology services provider

16 to an entity described by sub-paragraphs (1), (2), or (3)

17 for use as part of that entity's commercial financing

18 program, provided the person has no interest, or

19 arrangement, or agreement to purchase any interest in the

20 commercial financing extended by the entity in connection

21 with the program.

22 "Recipient" means a person who applies for commercial

23 financing and is made a specific offer of commercial financing

24 by a provider. "Recipient" includes an authorized

25 representative of a person who applies for commercial

26 financing and is made a specific offer of commercial financing

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1 by a provider. "Recipient" does not include a person acting as

2 a broker is not a recipient in a transaction they broker.

3 "Sales-based financing" means a transaction that is repaid

4 by the recipient to the provider, over time, as a percentage of

5 sales or revenue, in which the payment amount may increase or

6 decrease according to the volume of sales made or revenue

7 received by the recipient or a transaction that includes a

8 true-up mechanism where the financing is repaid as a fixed

9 payment but provides for a reconciliation process that adjusts

10 the payment to an amount that is a percentage of sales or

11 revenue.

12 "Secretary" means the Secretary of Financial and

13 Professional Regulation or a person authorized by the

14 Secretary to perform the Secretary's responsibilities under

15 this Act.

16 "Specific offer" means the specific terms of commercial

17 financing, including price or amount, that is quoted to a

18 recipient based on information obtained from or about the

19 recipient that, if accepted by a recipient, shall be binding

20 on the provider, as applicable, subject to any specific

21 requirements stated in the specific terms.

22 Section 10. Applicability.

23 (a) Except as otherwise provided in this Section, this Act

24 applies to any person that offers or provides commercial

25 financing in Illinois or is otherwise a provider.

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1 (b) The provisions of this Act apply to any person that

2 seeks to evade its applicability by any device, subterfuge, or

3 pretense whatsoever.

4 (c) The provisions of this Act apply to any person that

5 aids or facilitates a violation of this Act.

6 (d) The provisions of this Act do not apply to:

7 (1) a bank, trust company, or industrial loan company

8 doing business under the authority of, or in accordance

9 with, a license, certificate or charter issued by the

10 United States, this State, or any other state, district,

11 territory, or commonwealth of the United States that is

12 authorized to transact business in this State;

13 (2) a federally chartered savings and loan

14 association, federal savings bank, or federal credit union

15 that is authorized to transact business in this State;

16 (3) a savings and loan association, savings bank, or

17 credit union organized under the laws of this State or any

18 other state that is authorized to transact business in

19 this State;

20 (4) a lender regulated under the federal Farm Credit

21 Act; and

22 (5) a person acting in the person's capacity as a

23 technology services provider to an entity described by

24 sub-paragraphs (1), (2), or (3) for use as part of that

25 entity's commercial financing program, provided the person

26 has no interest, or arrangement, or agreement to purchase

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1 any interest in the commercial financing extended by the

2 entity in connection with the program.

3 Section 15. Division of Financial Institutions. This Act

4 shall be administered by the Division on behalf of the

5 Secretary.

6 Section 20. Licensure requirement. No person shall engage

7 in the conduct regulated by this Act without licensure under

8 this Act. Any Person who provides commercial financing without

9 the license required by this Act is guilty of a Class 4 felony.

10 The Secretary shall be empowered to investigate any person

11 they believe may require licensure under this Act including,

12 but not limited to, compelling production of testimony, books,

13 records, or any other information necessary for the Secretary

14 to determine whether the Person requires licensure.

15 Section 25. Licensee name. No person providing commercial

16 financing may operate the business under a name other than the

17 real names of the entity and individuals conducting the

18 business. The business may operate under an assumed corporate

19 name under the Business Corporation Act of 1983, an assumed

20 limited liability company name under the Limited Liability

21 Company Act, or an assumed business name under the Assumed

22 Business Name Act with written authorization from the

23 Secretary. Each licensee shall update its name with the

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1 Department within 10 days after the change of name.

2 Section 30. Application process; investigation; fees.

3 (a) The Secretary may issue a license to a person after the

4 person completes all of the following:

5 (1) the filing of an application for license with the

6 Secretary or a multistate licensing system as approved by

7 the Secretary;

8 (2) the filing with the Secretary or a multistate

9 licensing system as approved by the Secretary of a listing

10 of judgments entered against, and bankruptcy petitions by,

11 the applicant for the preceding 10 years;

12 (3) the payment, in certified funds, of investigation

13 and application fees, the total of which shall be in an

14 amount equal to $2,500; and

15 (4) the filing of an audited balance sheet, including

16 all footnotes prepared by a certified public accountant in

17 accordance with generally accepted accounting principles

18 and generally accepted auditing standards; notwithstanding

19 the requirements of this paragraph, an applicant that is a

20 subsidiary may submit audited consolidated financial

21 statements of its parent, intermediary parent, or ultimate

22 parent as long as the consolidated statements are

23 supported by consolidating statements that include the

24 applicant's financial statement; if the consolidating

25 statements are unaudited, the applicant's chief financial

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1 officer shall attest to the applicant's financial

2 statements disclosed in the consolidating statements.

3 (b) The Secretary may, for good cause shown, waive or

4 modify the requirements of subsection (a).

5 (c) Upon receipt of the license, a licensee is authorized

6 to engage in conduct regulated by this Act. The license shall

7 remain in full force and effect until it expires, is

8 surrendered by the licensee, or is revoked or suspended as

9 provided in this Act.

10 (d) The Secretary may impose conditions on a license if

11 the Secretary determines that those conditions are necessary

12 or appropriate. These conditions shall be imposed in writing

13 and shall continue in effect for the period prescribed by the

14 Secretary.

15 Section 35. Application form.

16 (a) Application for a license shall be made in accordance

17 with this Act, and in accordance with requirements of the

18 multistate licensing system, if required by the Secretary. The

19 application shall be in writing, under oath, and on a form

20 obtained from and prescribed by the Secretary. The Secretary

21 may change or update the form to carry out the purposes of this

22 Act. The Secretary may require part or all of the application

23 to be submitted electronically, with attestation, to the

24 multistate licensing system.

25 (b) The application shall contain the name and complete

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1 business and residential address or addresses of the

2 applicant. The application shall also include a description of

3 the activities of the applicant in detail and for the periods

4 as the Secretary may require, including all of the following:

5 (1) an affirmation that the applicant and its members,

6 directors, or principals, as may be appropriate, are at

7 least 18 years of age;

8 (2) information as to the name, complete business

9 address, complete residential address, character, fitness,

10 financial and business responsibility, background,

11 experience, and criminal record of any:

12 (i) person, including an ultimate equitable owner,

13 that directly or indirectly owns or controls 10% or

14 more of any class of stock of the applicant;

15 (ii) person, including an ultimate equitable owner

16 that is not a depository institution, as defined in

17 the Savings Bank Act, that lends, provides, or

18 infuses, directly or indirectly, in any way, funds to

19 or into an applicant in an amount equal to or more than

20 10% of the applicant's net worth;

21 (iii) person, including an ultimate equitable

22 owner that controls, directly or indirectly, the

23 election of 25% or more of the members of the board of

24 directors of an applicant;

25 (iv) person, including an ultimate equitable owner

26 that the Secretary finds influences the management of

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1 the applicant;

2 (v) director or directors of an applicant; and

3 (vi) principal officers of an applicant; and

4 (3) other information as required by the Secretary to

5 assess whether the applicant and its owners, officers, and

6 directors have the financial responsibility, financial

7 condition, business experience, character, and general

8 fitness to justify the confidence of the public and that

9 the applicant and its owners, officers, and directors are

10 fit, willing, and able to carry on the proposed business

11 in a lawful and fair manner.

12 Section 40. Additional license application information.

13 (a) In order to fulfill the purposes of this Act, the

14 Secretary may establish relationships or contracts with a

15 multistate licensing system or other persons to collect and

16 maintain records and process fees related to licensees or

17 other persons subject to this Act.

18 (b) In connection with an application for licensing, the

19 applicant, owners, officers, and directors of an applicant may

20 be required, at a minimum, to furnish to the Secretary or

21 multistate licensing system information concerning the

22 applicant's, owners', officers' and directors' identity,

23 including personal history and experience in a form prescribed

24 by the Secretary or multistate licensing system, including,

25 but not limited to:

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1 (1) a complete and accurate copy of an independent

2 credit report obtained from a consumer reporting agency

3 described in Section 603(p) of the Fair Credit Reporting

4 Act (15 U.S.C. 1681a(p)); and

5 (2) information related to any administrative, civil,

6 or criminal findings by any governmental jurisdiction.

7 (c) For the purposes of this Section, and to reduce the

8 points of contact that the Secretary may have to maintain, the

9 Secretary may use a multistate licensing system as a

10 channeling agent for requesting and distributing information

11 to and from any source.

12 (d) Each application shall be accompanied by averments as

13 determined by the Secretary to fulfill the purposes of this

14 Act.

15 (e) Each applicant shall furnish to the Secretary or

16 multistate licensing system an updated business address within

17 10 days after any change of business address.

18 Section 45. Refusal to issue or renew license. The

19 Secretary may refuse to issue or renew a license if:

20 (1) the Secretary determines that the applicant has

21 not complied with a provision of this Act, its

22 implementing rules, or other laws that apply to the

23 applicant;

24 (2) the Secretary determines that there is substantial

25 continuity between the applicant and any violator of this

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1 Act, its implementing rules, or other laws that apply to

2 the applicant or related violator; or

3 (3) the Secretary determines that the applicant or its

4 owners, officers, or directors do not have the financial

5 responsibility, financial condition, business experience,

6 character, and general fitness of to justify the

7 confidence of the public and that the license applicant

8 and its owners, officers, and directors are fit, willing,

9 and able to carry on the proposed business in a lawful and

10 fair manner.

11 Section 50. License issuance and renewal.

12 (a) Licensees shall apply to renew their license every

13 calendar year. Licensees may submit properly completed renewal

14 application forms and filing fees 60 days before the license

15 expiration date and the same shall be received by the

16 Secretary at least 30 days before the license expiration date.

17 (b) Each licensee shall timely renew its license. Absent a

18 written extension from the Department, a license shall expire

19 on December 31 if a licensee fails to timely submit a properly

20 completed renewal application form and fees.

21 (c) No activity regulated by this Act shall be conducted

22 by a licensee whose license has expired. The Secretary may,

23 within the Secretary's discretion, reinstate an expired

24 license upon payment of the renewal fee, payment of a

25 reactivation fee equal to 5 times the renewal fee, submission

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1 of a completed renewal application, and an affidavit of good

2 cause for late renewal.

3 Section 55. Fees.

4 (a) The persons regulated by this Act shall bear the

5 expenses of administering this Act, including investigations

6 and examinations provided for in this Act. The Secretary may

7 establish fees by rule or modify fees in at least the following

8 categories:

9 (1) application and renewal fees;

10 (2) examination and investigation fees;

11 (3) change fees;

12 (4) contingent fees; and

13 (5) other fees as may be required to administer this

14 Act.

15 (b) The Secretary may modify any fees established by this

16 Act by rule one year after the effective date of this Act.

17 Section 60. Functions; powers; duties. The functions,

18 powers, and duties of the Secretary include, but are not

19 limited to, the following:

20 (1) to issue or refuse to issue any license or

21 renewal;

22 (2) to revoke or suspend for cause any license issued

23 under this Act;

24 (3) to keep records of all licenses issued under this

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1 Act;

2 (4) to receive, consider, investigate, and act upon

3 complaints made by any person in connection with any

4 licensee in this State or unlicensed commercial financing

5 activity of any person;

6 (5) to prescribe the forms of and receive:

7 (A) applications for licenses and renewals; and

8 (B) all reports and all books and records required

9 to be made by any licensee under this Act, including

10 annual audited financial statements if required by the

11 Secretary and annual reports of commercial financing

12 activity;

13 (6) to adopt rules necessary and proper for the

14 administration of this Act, to protect consumers, and

15 promote fair competition or otherwise authorized by this

16 Act;

17 (7) to subpoena documents and witnesses and compel

18 their attendance and production, to administer oaths, and

19 to require the production of any books, papers, or other

20 materials relevant to any inquiry authorized by this Act

21 or its implementing rules;

22 (8) to issue orders against any person if the

23 Secretary has reasonable cause to believe that an unsafe,

24 unsound, or unlawful practice has occurred, is occurring,

25 or is about to occur; if any person is violating, or is

26 about to violate any law, rule, or written agreement with

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1 the Secretary; or for the purpose of administering the

2 provisions of this Act and any rule adopted in accordance

3 with this Act;

4 (9) to address any inquiries to any licensee, or the

5 owners, officers, or directors thereof, in relation to its

6 activities and conditions, or any other matter connected

7 with its affairs, and any licensee or person so addressed

8 shall promptly reply in writing to those inquiries. The

9 Secretary may also require reports from any licensee at

10 any time the Secretary deems desirable;

11 (10) to examine the books and records of every

12 licensee under this Act or any person requiring a license

13 or who the Secretary reasonably believes may require a

14 license;

15 (11) to enforce provisions of this Act and its

16 implementing rules;

17 (12) to levy fees including, but not limited to,

18 assessments, examination fees, and licensing fees, civil

19 penalties, and charges for services performed in

20 administering this Act. The aggregate of all fees

21 collected by the Secretary under this Act shall be paid

22 promptly after receipt into the Financial Institution

23 Fund. The amounts deposited into the Financial Institution

24 Fund shall be used for the ordinary and contingent

25 expenses of the Department. Nothing in this Act prevents

26 paying expenses including salaries, retirement, social

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1 security, and State-paid insurance of State employees, or

2 any other expenses incurred under this Act by

3 appropriation from the General Revenue Fund or any other

4 fund;

5 (13) to issue refunds to licensees of any overpayment

6 for good cause shown;

7 (14) to appoint examiners, supervisors, experts, and

8 special assistants as needed to effectively and

9 efficiently administer this Act;

10 (15) to conduct hearings for the purpose of

11 suspensions, denials, or revocations of licenses, fining,

12 or other discipline of licensees or unlicensed persons or

13 entities;

14 (16) to exercise visitorial power over a licensee;

15 (17) to enter into cooperative agreements with state

16 regulatory authorities of other states to provide for

17 examination of corporate offices or branches of those

18 states, participate in joint examinations with other

19 regulators, and to accept reports of the examinations;

20 (18) to assign an examiner or examiners to monitor the

21 affairs of a licensee with whatever frequency the

22 Secretary determines appropriate and to charge the

23 licensee for reasonable and necessary expenses of the

24 Secretary if in the opinion of the Secretary an emergency

25 exists or appears likely to occur;

26 (19) to impose civil penalties of up to $200 per day

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1 against a licensee for failing to respond to a regulatory

2 request or reporting requirement; and

3 (20) to enter into agreements in connection with a

4 multistate licensing system.

5 Section 65. Examination; prohibited activities.

6 (a) The Secretary shall examine the business affairs of a

7 licensee under this Act as often as the Secretary deems

8 necessary and proper. The Secretary may adopt rules with

9 respect to the frequency and manner of examination. The

10 Secretary shall appoint a suitable person to perform the

11 examination. The Secretary and the Secretary's appointees may

12 examine the entire books, records, documents, and operations

13 of each licensee and its subsidiary, affiliate, or agent, and

14 may examine any of the licensee's or its subsidiaries',

15 owners, affiliates', or agents' officers, directors,

16 employees, and agents under oath.

17 (b) Affiliates of a licensee shall be subject to

18 examination by the Secretary on the same terms as the

19 licensee, but only when reports from or examination of a

20 licensee provides for documented evidence of unlawful activity

21 between a licensee and affiliate benefiting, affecting, or

22 deriving from the activities regulated by this Act.

23 (c) The expenses of any examination of the licensee or its

24 affiliates shall be borne by the licensee and assessed by the

25 Secretary as may be established by rule.

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1 (d) All confidential supervisory information, including

2 the examination report and the work papers of the report,

3 shall belong to the Secretary's office and may not be

4 disclosed to anyone other than the licensee, law enforcement

5 officials, or other regulatory agencies that have an

6 appropriate regulatory interest as determined by the Secretary

7 or to a party presenting a lawful subpoena to the Department.

8 The Secretary may, through the Attorney General, immediately

9 appeal to the court of jurisdiction the disclosure of the

10 confidential supervisory information and seek a stay of the

11 subpoena pending the outcome of the appeal. Reports required

12 of licensees by the Secretary under this Act and results of

13 examinations performed by the Secretary under this Act shall

14 be the property of only the Secretary, but may be shared with

15 the licensee. Any person demanded to produce the Department's

16 confidential supervisory information, whether by subpoena,

17 order, or other judicial or administrative process, shall

18 withhold production of the confidential supervisory

19 information and shall notify the Secretary of the demand. The

20 Secretary is authorized to intervene for the purpose of

21 enforcing the limitations of this Section or seeking the

22 withdrawal or termination of the attempt to compel production

23 of the confidential supervisory information. The Secretary may

24 impose any conditions and limitations on the disclosure of

25 confidential supervisory information that are necessary to

26 protect the confidentiality of that information. The Secretary

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1 may condition a decision to disclose confidential supervisory

2 information on entry of a protective order by the court or

3 administrative tribunal presiding in the particular case or on

4 a written agreement of confidentiality. If a protective order

5 or agreement has already been entered between parties other

6 than the Secretary, then the Secretary may nevertheless

7 condition approval for release of confidential supervisory

8 information upon the inclusion of additional or amended

9 provisions in the protective order. The Secretary may

10 authorize a party who obtained the records for use in one case

11 to provide them to another party in another case, subject to

12 any conditions that the Secretary may impose on either or both

13 parties. The requester shall promptly notify other parties to

14 a case of the release of confidential supervisory information

15 obtained and, upon entry of a protective order, shall provide

16 copies of confidential supervisory information to the other

17 parties.

18 Section 70. Subpoena power of the Secretary.

19 (a) The Secretary may issue and serve subpoenas and

20 subpoenas duces tecum to compel the attendance of witnesses

21 and the production of all books, accounts, records, and other

22 documents and materials relevant to an examination or

23 investigation. The Secretary, or the Secretary's duly

24 authorized representative, may administer oaths and

25 affirmations to any person.

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1 (b) If a person does not comply with the Secretary's

2 subpoena or subpoena duces tecum, the Secretary may, through

3 the Attorney General, petition the circuit court of the county

4 in which the subpoenaed person resides or has its principal

5 place of business for an order requiring the subpoenaed person

6 to testify and to comply with the subpoena duces tecum. The

7 court may grant injunctive relief restraining the person from

8 engaging in activity regulated by this Act. The court may

9 grant other relief, including, but not limited to, the

10 restraint, by injunction or appointment of a receiver, of any

11 transfer, pledge, assignment, or other disposition of the

12 person's assets, concealment, destruction, or other

13 disposition of books, accounts, records, or other documents

14 and materials, as the court deems appropriate, until the

15 person has fully complied with the subpoena or subpoena duces

16 tecum and the Secretary has completed an investigation or

17 examination.

18 (c) If it appears to the Secretary that the compliance

19 with a subpoena or subpoena duces tecum issued or caused to be

20 issued by the Secretary under this Section is essential to an

21 investigation or examination, the Secretary, in addition to

22 the other remedies provided for in this Act, may, through the

23 Attorney General, apply for relief to the circuit court of the

24 county in which the subpoenaed person resides or has its

25 principal place of business. The court shall thereupon direct

26 the issuance of an order against the subpoenaed person

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1 requiring sufficient bond conditioned on compliance with the

2 subpoena or subpoena duces tecum. The court shall cause to be

3 endorsed on the order a suitable amount of bond or payment

4 pursuant to which the person named be freed, having a due

5 regard to the nature of the case.

6 (d) In addition, the Secretary may, through the Attorney

7 General, seek a writ of attachment or an equivalent order from

8 the circuit court having jurisdiction over the person who has

9 refused to obey a subpoena, who has refused to give testimony,

10 or who has refused to produce the matters described in the

11 subpoena duces tecum.

12 Section 75. Reports required.

13 (a) Every licensee shall produce to the Department reports

14 the Secretary requests within 90 days after the Secretary's

15 request unless exigent circumstances require production in a

16 shorter timeframe.

17 (b) Every provider shall produce to the Department a

18 report of its commercial financing activity upon the request

19 of the Secretary. Every provider shall produce its report to

20 the Department within 90 days after the Secretary's request.

21 The Department may require reports under this subsection

22 before a provider shall become licensed under this Act.

23 Section 76. Sales-based financing disclosure requirements.

24 A provider subject to this Act shall provide the following

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1 disclosures to a recipient, in a manner prescribed by the

2 Secretary, if any, at the time of extending a specific offer of

3 sales-based financing:

4 (1) The total amount of the commercial financing, and,

5 if different from the financing amount, the disbursement

6 amount after any amount deducted or withheld at

7 disbursement.

8 (2) The finance charge.

9 (3) The estimated annual percentage rate, using the

10 words annual percentage rate or the abbreviation

11 "Estimated APR", expressed as a yearly rate, inclusive of

12 any fees and finance charges, based on the estimated term

13 of repayment and the projected periodic payment amounts.

14 The estimated term of repayment and the projected periodic

15 payment amounts shall be calculated based on the

16 projection of the recipient's sales, which may be referred

17 to as the projected sales volume. The projected sales

18 volume may be calculated using the historical method or

19 the underwriting method. The provider shall provide notice

20 to the Secretary on which method the provider intends to

21 use across all instances of sales-based financing offered

22 in calculating the estimated annual percentage rate under

23 this Section, according to the following:

24 (A) A provider using the historical method shall

25 use an average historical volume of sales or revenue

26 by which the financing's payment amounts are based and

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1 the estimated annual percentage rate is calculated.

2 The provider shall fix the historical time period used

3 to calculate the average historical volume and use the

4 period for all disclosure purposes for all sales-based

5 financing products offered. The fixed historical time

6 period shall either be the preceding time period from

7 the specific offer or, alternatively, the provider may

8 use average sales for the same number of months with

9 the highest sales volume within the previous 12

10 months. The fixed historical time period shall be no

11 less than one month and shall not exceed 12 months.

12 (B) A provider using the underwriting method shall

13 determine the estimated annual percentage rate, the

14 estimated term, and the projected payments, using a

15 projected sales volume that the provider elects for

16 each disclosure, if they participate in a review

17 process prescribed by the Secretary. A provider shall,

18 on an annual basis, report data to the Secretary of

19 estimated annual percentage rates disclosed to the

20 recipient and actual retrospective annual percentage

21 rates of completed transactions. The report shall

22 contain the information as the Department may adopt by

23 rule as necessary or appropriate for the purpose of

24 making a determination of whether the deviation

25 between the estimated annual percentage rate and

26 actual retrospective annual percentage rates of

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1 completed transactions was reasonable. The Secretary

2 shall establish the method of reporting and may, upon

3 a finding that the use of projected sales volume by the

4 provider has resulted in an unacceptable deviation

5 between estimated and actual annual percentage rate,

6 require the provider to use the historical method. The

7 Secretary may consider unusual and extraordinary

8 circumstances impacting the provider's deviation

9 between estimated and actual annual percentage rate in

10 the determination of the finding.

11 (4) The total repayment amount, which is the

12 disbursement amount plus the finance charge.

13 (5) The estimated term, which is the period of time

14 required for the periodic payments, based on the projected

15 sales volume, to equal the total amount required to be

16 repaid.

17 (6) The payment amounts, based on the projected sales

18 volume:

19 (A) for payment amounts that are fixed, the

20 payment amounts and frequency, such as, daily, weekly,

21 monthly, and, if the payment frequency is other than

22 monthly, the amount of the average projected payments

23 per month; or

24 (B) for payment amounts that are variable, a

25 payment schedule or a description of the method used

26 to calculate the amounts and frequency of payments and

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1 the amount of the average projected payments per

2 month.

3 (7) A description of all other potential fees and

4 charges not included in the finance charge, including, but

5 not limited to, draw fees, late payment fees, and returned

6 payment fees.

7 (8) If the recipient elects to pay off or refinance

8 the commercial financing before full repayment, the

9 provider shall disclose:

10 (A) whether the recipient would be required to pay

11 any finance charges other than interest accrued since

12 their last payment; if so, disclosure of the

13 percentage of any unpaid portion of the finance charge

14 and maximum dollar amount the recipient could be

15 required to pay; and

16 (B) whether the recipient would be required to pay

17 any additional fees not already included in the

18 finance charge.

19 (9) A description of collateral requirements or

20 security interests, if any.

21 Section 77. Closed-end commercial financing disclosure

22 requirements. A provider subject to this Act shall provide the

23 following disclosures to a recipient, in a manner prescribed

24 by the Secretary, if any, at the time of extending a specific

25 offer for closed-end financing:

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1 (1) The total amount of the commercial financing, and,

2 if different from the financing amount, the disbursement

3 amount after any amount deducted or withheld at

4 disbursement.

5 (2) The finance charge.

6 (3) The annual percentage rate, using only the words

7 annual percentage rate or the abbreviation "APR",

8 expressed as a yearly rate, inclusive of any fees and

9 finance charges that cannot be avoided by a recipient.

10 (4) The total repayment amount, which is the

11 disbursement amount plus the finance charge.

12 (5) The term of the financing.

13 (6) The payment amounts:

14 (A) for payment amounts that are fixed, the

15 payment amounts and frequency, such as daily, weekly,

16 monthly, and, if the term is longer than one month, the

17 average monthly payment amount; or

18 (B) for payment amounts that are variable, a full

19 payment schedule or a description of the method used

20 to calculate the amounts and frequency of payments,

21 and, if the term is longer than one month, the

22 estimated average monthly payment amount.

23 (7) A description of all other potential fees and

24 charges that can be avoided by the recipient, including,

25 but not limited to, late payment fees and returned payment

26 fees.

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1 (8) If the recipient elects to pay off or refinance

2 the commercial financing before full repayment, the

3 provider shall disclose:

4 (A) whether the recipient would be required to pay

5 any finance charges other than interest accrued since

6 their last payment; if so, disclosure of the

7 percentage of any unpaid portion of the finance charge

8 and maximum dollar amount the recipient could be

9 required to pay; and

10 (B) whether the recipient would be required to pay

11 any additional fees not already included in the

12 finance charge.

13 (9) A description of collateral requirements or

14 security interests, if any.

15 Section 78. Open-end commercial financing disclosure

16 requirements. A provider subject to this Act shall provide the

17 following disclosures to a recipient, in a manner prescribed

18 by the Secretary, if any, at the time of extending a specific

19 offer for open-end financing:

20 (1) The maximum amount of credit available to the

21 recipient, such as the credit line amount, and the amount

22 scheduled to be drawn by the recipient at the time the

23 offer is extended, if any, less any amount deducted or

24 withheld at disbursement.

25 (2) The finance charge.

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1 (3) The annual percentage rate, using only the words

2 annual percentage rate or the abbreviation "APR",

3 expressed as a nominal yearly rate, inclusive of any fees

4 and finance charges that cannot be avoided by a recipient,

5 and based on the maximum amount of credit available to the

6 recipient and the term resulting from making the minimum

7 required payments term as disclosed.

8 (4) The total repayment amount, which is the draw

9 amount, less any fees deducted or withheld at

10 disbursement, plus the finance charge. The total repayment

11 amount shall assume a draw amount equal to the maximum

12 amount of credit available to the recipient if drawn and

13 held for the duration of the term or draw period.

14 (5) The term of the plan, if applicable, or the period

15 over which a draw is amortized.

16 (6) The payment frequency and amounts, based on the

17 assumptions used in the calculation of the annual

18 percentage rate, including a description of payment amount

19 requirements such as a minimum payment amount, and if the

20 payment frequency is other than monthly, the amount of the

21 average projected payments per month. For payment amounts

22 that are variable, the provider should include a payment

23 schedule or a description of the method used to calculate

24 the amounts and frequency of payments and the estimated

25 average monthly payment amount.

26 (7) A description of all other potential fees and

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1 charges that can be avoided by the recipient, including,

2 but not limited to, draw fees, late payment fees, and

3 returned payment fees.

4 (8) Were the recipient to elect to pay off or

5 refinance the commercial financing before full repayment,

6 the provider shall disclose:

7 (A) whether the recipient would be required to pay

8 any finance charges other than interest accrued since

9 their last payment; if so, disclosure of the

10 percentage of any unpaid portion of the finance charge

11 and maximum dollar amount the recipient could be

12 required to pay; and

13 (B) whether the recipient would be required to pay

14 any additional fees not already included in the

15 finance charge.

16 (9) A description of collateral requirements or

17 security interests, if any.

18 Section 79. Factoring transaction disclosure requirements.

19 A provider subject to this Act shall provide the following

20 disclosures to a recipient, in a manner prescribed by the

21 Secretary, if any, at the time of extending a specific offer

22 for a factoring transaction:

23 (1) The amount of the receivables purchase price paid

24 to the recipient, and, if different from the purchase

25 price, the disbursement amount after any amount deducted

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1 or withheld at disbursement.

2 (2) The finance charge.

3 (3) The estimated annual percentage rate, using that

4 term. To calculate the estimated annual percentage rate,

5 the purchase amount is considered the financing amount,

6 the purchase amount minus the finance charge is considered

7 the payment amount, and the term is established by the

8 payment due date of the receivables. As an alternate

9 method of establishing the term, the provider may estimate

10 the term for a factoring transaction as the average

11 payment period based on its historical data over a period

12 not to exceed the previous 12 months, concerning payment

13 invoices paid by the party or parties owing the accounts

14 receivable in question.

15 (4) The total payment amount, which is the purchase

16 amount plus the finance charge.

17 (5) A description of all other potential fees and

18 charges that can be avoided by the recipient.

19 (6) A description of the receivables purchased and any

20 additional collateral requirements or security interests.

21 Section 80. Other forms of financing disclosure

22 requirements. The Secretary may require disclosure by a

23 provider extending a specific offer of commercial financing

24 which is not an open-end financing, closed-end financing,

25 sales-based financing, or factoring transaction but otherwise

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1 meets the definition of commercial financing. Subject to rules

2 adopted by the Secretary, a provider subject to this Act shall

3 provide the following disclosures to a recipient, in a manner

4 prescribed by the Secretary, if any, at the time of extending a

5 specific offer of other forms of financing:

6 (1) The total amount of the commercial financing, and,

7 if different from the financing amount, the disbursement

8 amount after any fees deducted or withheld at

9 disbursement.

10 (2) The finance charge.

11 (3) The annual percentage rate, using only the words

12 annual percentage rate or the abbreviation "APR",

13 expressed as a yearly rate, inclusive of any fees and

14 finance charges.

15 (4) The total repayment amount which is the

16 disbursement amount plus the finance charge.

17 (5) The term of the financing.

18 (6) The payment amounts:

19 (A) for payment amounts that are fixed, the

20 payment amounts and frequency, such as daily, weekly,

21 monthly, and the average monthly payment amount; or

22 (B) for payment amounts that are variable, a

23 payment schedule or a description of the method used

24 to calculate the amounts and frequency of payments,

25 and the estimated average monthly payment amount.

26 (7) A description of all other potential fees and

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1 charges that can be avoided by the recipient, including,

2 but not limited to, late payment fees and returned payment

3 fees.

4 (8) If the recipient elects to pay off or refinance

5 the commercial financing before full repayment, the

6 provider shall disclose:

7 (A) whether the recipient would be required to pay

8 any finance charges other than interest accrued since

9 their last payment; if so, disclosure of the

10 percentage of any unpaid portion of the finance charge

11 and maximum dollar amount the recipient could be

12 required to pay; and

13 (B) whether the recipient would be required to pay

14 any additional fees not already included in the

15 finance charge.

16 (9) A description of collateral requirements or

17 security interests, if any.

18 Section 81. Disclosure requirements for renewal financing.

19 If, as a condition of obtaining the commercial financing, the

20 provider requires the recipient to pay off the balance of an

21 existing commercial financing from the same provider, the

22 provider shall disclose:

23 (1) The amount of the new commercial financing that is

24 used to pay off the portion of the existing commercial

25 financing that consists of prepayment charges required to

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1 be paid and any unpaid interest expense that was not

2 forgiven at the time of renewal. For financing for which

3 the total repayment amount is calculated as a fixed

4 amount, the prepayment charge is equal to the original

5 finance charge multiplied by the amount of the renewal

6 used to pay off existing financing as a percentage of the

7 total repayment amount, minus any portion of the total

8 repayment amount forgiven by the provider at the time of

9 prepayment. If the amount is more than zero, the amount

10 shall be the answer to the following question: "Does the

11 renewal financing include any amount that is used to pay

12 unpaid finance charges or fees, also known as double

13 dipping? Yes, {enter amount}. If the amount is zero, the

14 answer would be no."

15 (2) If the disbursement amount will be reduced to pay

16 down any unpaid portion of the outstanding balance, the

17 actual dollar amount by which the disbursement amount will

18 be reduced.

19 Section 82. Additional information. Nothing in this Act

20 shall prevent a provider from providing or disclosing

21 additional information on a commercial financing being offered

22 to a recipient, provided however, that the additional

23 information shall not be disclosed as part of the disclosure

24 required by this Act. If other metrics of financing cost are

25 disclosed or used in the application process of a commercial

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1 financing, these metrics shall not be presented as a "rate" if

2 they are not the annual interest rate or the annual percentage

3 rate. The term "interest", when used to describe a percentage

4 rate, shall only be used to describe annualized percentage

5 rates, such as the annual interest rate. When a provider

6 states a rate of finance charge or a financing amount to a

7 recipient during an application process for commercial

8 financing, the provider shall also state the rate as an

9 "annual percentage rate", using that term or the abbreviation

10 "APR".

11 Section 83. Violation of disclosure requirements. If the

12 Secretary finds that a provider who is required to obtain a

13 license according to this Act has violated any disclosure

14 requirements outlined in Sections 76 through 82, that shall be

15 considered a violation of this Act separate from any other

16 violation that may result from operating without a license as

17 outlined in Section 20.

18 Section 84. Suspension; revocation of licenses; civil

19 penalties and other discipline.

20 (a) The Secretary may enter an order imposing one or more

21 of the following penalties:

22 (1) revocation of license;

23 (2) suspension of a license subject to reinstatement

24 upon satisfying all reasonable conditions the Secretary

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1 may specify;

2 (3) placement of the licensee or applicant on

3 probation for a period of time and subject to all

4 reasonable conditions as the Secretary may specify;

5 (4) issuance of a reprimand;

6 (5) imposition of civil monetary penalties as follows:

7 (A) a civil penalty not to exceed $10,000 for each

8 separate offense, but civil penalties may not to

9 exceed $50,000 for all violations arising from the use

10 of the same transaction documents or materials,

11 including for financing offers that are not

12 consummated; and

13 (B) if a person violates this Act after receiving

14 written notice of a prior violation, a civil penalty

15 may be imposed not to exceed $10,000 for each count of

16 separate offense, but the civil penalties are not to

17 exceed $100,000 for all violations arising from the

18 use of the same transaction documents or materials,

19 including for financing offers that are not

20 consummated;

21 (6) restitution, refunds, or any other relief

22 necessary to protect consumers; and

23 (7) denial of a license.

24 (b) Grounds for penalties include:

25 (1) if a person has violated or aided another to

26 violate, any provisions of this Act, any rule adopted by

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1 the Secretary, or any other law, rule, or regulation of

2 this State, any other state, or the United States;

3 (2) if a fact or condition exists that, if it had

4 existed at the time of the original application for the

5 license, would have warranted the Secretary in refusing

6 issue the original license;

7 (3) that a licensee that is not an individual has

8 acted or failed to act in a way that would be cause for

9 suspending or revoking a license to an individual;

10 (4) that a person engaged in unsafe, unsound, unfair,

11 deceptive, or abusive business practices related to the

12 activity covered by this Act;

13 (5) that a person has been adjudicated guilty of a

14 crime against the law of this State, any other state, or of

15 the United States involving moral turpitude, abusive,

16 deceptive, fraudulent, or dishonest dealing;

17 (6) that a final judgment has been entered against a

18 person in a civil action upon grounds of abusive conduct,

19 conversion, fraud, misrepresentation, or deceit;

20 (7) that a person made a material misstatement in its

21 application for licensure or any other communication to

22 the Secretary;

23 (8) that a person has demonstrated, by course of

24 conduct, negligence or incompetence in performing any act

25 for which it is required to hold a license under this Act;

26 (9) that a person has failed to advise the Secretary

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1 in writing of any changes to the information submitted on

2 their most recent application for license within 30 days

3 after the change;

4 (10) that a licensee failed to submit to periodic

5 examination by the Secretary as required by this Act or

6 failed to maintain, preserve, and keep available for

7 examination all books, accounts, or other documents

8 required by the provisions of this Act and rules of the

9 Secretary;

10 (11) that a person failed to account or deliver to any

11 person any property, such as any money, fund, deposit,

12 check, draft, or other document or thing of value, that

13 has come into its hands and that is not its property or

14 that it is not in law or equity entitled to retain, under

15 the circumstances and at the time which has been agreed

16 upon or is required by law or, in the absence of a fixed

17 time, upon demand of the person for the accounting and

18 delivery;

19 (12) that a person failed to disburse funds in

20 accordance with agreements or law;

21 (13) that a person had a license, or the equivalent,

22 to practice any profession, occupation, other industry or

23 activity requiring licensure revoked, suspended,

24 disciplined, or otherwise acted against, including the

25 denial of licensure by a licensing authority of this State

26 or another state, territory, or country for fraud,

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1 dishonest dealing, misrepresentations, incompetence,

2 conversion, any act of moral turpitude or any other

3 grounds that would constitute grounds for discipline under

4 this Act;

5 (14) that a person licensed under this Act failed to

6 timely notify the Department that the person has been

7 disciplined, including denial of licensure, by a licensing

8 authority of this State or another state. Timely

9 notification shall be notification to the Department

10 within 10 days after entry of discipline;

11 (15) that a person engaged in activities regulated by

12 this Act without a current, active license unless

13 specifically exempted by this Act;

14 (16) that a person failed to timely pay any fee,

15 charge, or civil penalty assessed under this Act; and

16 (17) that a person refused, obstructed, evaded, or

17 unreasonably delayed an investigation, information

18 request, or examination authorized under this Act, or

19 refused, obstructed, evaded, or unreasonably delayed

20 compliance with the Secretary's subpoena or subpoena duces

21 tecum.

22 (c) No license shall be suspended or revoked, except as

23 provided in this Section, nor shall any licensee be assessed a

24 civil penalty without notice of his or her right to a hearing.

25 (d) The Secretary may suspend any license for a period not

26 exceeding 180 days pending investigation for good cause shown

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1 that an emergency exists.

2 (e) No revocation, suspension, or surrender of any license

3 shall impair or affect the obligation of any preexisting

4 lawful contract between the licensee and any person. The

5 Secretary's approval of a licensee's application to surrender

6 its license shall not affect the licensee's civil or criminal

7 liability for acts committed prior to surrender. Surrender of

8 a license does not entitle the licensee to a return of any part

9 of the license fee.

10 (f) Every license issued under this Act shall remain in

11 force and effect until the license expires, is surrendered, is

12 revoked, or is suspended in accordance with the provisions of

13 this Act. The Secretary shall have authority to reinstate a

14 suspended license or to issue a new license to a licensee whose

15 license has been revoked or surrendered if no fact or

16 condition then exists which would have warranted the Secretary

17 in refusing originally to issue that license under this Act.

18 (g) Whenever the Secretary imposes discipline authorized

19 by this Section, the Secretary shall execute a written order

20 to that effect. The Secretary shall serve a copy of the order

21 upon the person. The Secretary shall serve the person with

22 notice of the order, including a statement of the reasons for

23 the order personally or by certified mail. Service by

24 certified mail shall be deemed completed when the notice is

25 deposited in the U.S. Mail.

26 (h) An order assessing a civil penalty, an order revoking

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1 or suspending a license, or an order denying renewal of a

2 license shall take effect upon service of the order unless the

3 licensee serves the Department with a written request for a

4 hearing in the manner required by the order within 10 days

5 after the date of service of the order. If a person requests a

6 hearing, the order shall be stayed from its date of service

7 until the Department enters a final administrative order.

8 Hearings shall be conducted as follows:

9 (1) If the licensee requests a hearing, then the

10 Secretary shall schedule a hearing within 90 days after

11 the request for a hearing unless otherwise agreed to by

12 the parties.

13 (2) The hearing shall be held at the time and place

14 designated by the Secretary. The Secretary and any

15 administrative law judge designated by the Secretary shall

16 have the power to administer oaths and affirmations,

17 subpoena witnesses and compel their attendance, take

18 evidence, and require the production of books, papers,

19 correspondence, and other records or information that they

20 consider relevant or material to the inquiry.

21 (i) The costs of administrative hearings conducted under

22 this Section shall be paid by the licensee or other person

23 subject to the hearing.

24 (j) A licensee and other persons subject to this Act shall

25 be subject to the disciplinary actions specified in this Act

26 for any violations conducted by any officer, director,

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1 shareholder, joint venture, partner, owner, including, but not

2 limited to, ultimate equitable owner.

3 Section 85. Investigation of complaints. The Secretary may

4 investigate any complaints and inquiries made concerning this

5 Act and any licensees or persons the Secretary believes may

6 require a license under this Act. Each licensee or person the

7 Secretary believes may require a license under this Act shall

8 open the licensee's or person's books, records, documents, and

9 offices wherever situated to the Secretary as needed to

10 facilitate the investigations.

11 Section 90. Additional investigation and examination

12 authority. In addition to any authority allowed under this

13 Act, the Secretary may conduct investigations and examinations

14 as follows:

15 (1) For purposes of initial licensing, license

16 renewal, license suspension, license conditioning, license

17 probation, license revocation or termination, or general

18 or specific inquiry or investigation to determine

19 compliance with this Act, the Secretary may access,

20 receive, and use any books, accounts, records, files,

21 documents, information, or evidence, including, but not

22 limited to, the following:

23 (A) criminal, civil, licensure, and administrative

24 history information, including nonconviction data as

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1 specified in the Criminal Code of 2012; (B) personal

2 history and experience information, including

3 independent credit reports obtained from a consumer

4 reporting agency described in Section 603(p) of the

5 federal Fair Credit Reporting Act; and (C) any other

6 documents, information, or evidence the Secretary

7 deems relevant to the inquiry or investigation,

8 regardless of the location, possession, control, or

9 custody of the documents, information, or evidence.

10 (2) For the purposes of investigating violations or

11 complaints arising under this Act or for the purposes of

12 examination, the Secretary may review, investigate, or

13 examine any licensee, individual, or person subject to

14 this Act as often as necessary in order to carry out the

15 purposes of this Act. The Secretary may direct, subpoena,

16 or order the attendance of, and examine under oath all

17 persons and order any person to produce records, files,

18 and any other documents the Secretary deems relevant to an

19 inquiry.

20 (3) Each person subject to this Act shall make

21 available to the Secretary upon request the books and

22 records relating to the operations of the person subject

23 to this Act. The Secretary shall have access to those

24 books and records and may interview the owners, officers,

25 principals, employees, independent contractors, agents,

26 vendors, and customers of any licensee or person subject

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1 to this Act.

2 (4) Each person subject to this Act shall make or

3 compile reports or prepare other information as directed

4 by the Secretary to carry out the purposes of this

5 Section, including, but not limited to:

6 (A) accounting compilations;

7 (B) information lists and data concerning

8 transactions in a format prescribed by the Secretary;

9 or

10 (C) other information deemed necessary to carry

11 out the purposes of this Section.

12 (5) In making any examination or investigation

13 authorized by this Act, the Secretary may control access

14 to any documents and records of the licensee or person

15 under examination or investigation. The Secretary may take

16 possession of the documents and records or otherwise take

17 constructive control of the documents. During the period

18 of control, no person shall remove or alter any of the

19 documents or records, except pursuant to a court order or

20 with the consent of the Secretary. Unless the Secretary

21 has reasonable grounds to believe the documents or records

22 of the licensee have been or are at risk of being altered

23 or destroyed for purposes of concealing a violation of

24 this Act, the licensee or owner of the documents and

25 records shall have access to the documents or records as

26 necessary to conduct its ordinary business affairs.

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1 (6) In order to carry out the purposes of this

2 Section, the Secretary may:

3 (A) retain attorneys, accountants, or other

4 professionals and specialists as examiners, auditors,

5 or investigators to conduct or assist in the conduct

6 of examinations or investigations;

7 (B) enter into agreements or relationships with

8 other government officials or regulatory associations

9 to protect consumers, improve efficiencies, and reduce

10 regulatory burden by sharing resources, standardized

11 or uniform methods or procedures, and documents,

12 records, information, or evidence obtained under this

13 Section;

14 (C) use, hire, contract, or employ publicly or

15 privately available analytical systems, methods, or

16 software to examine or investigate the licensee,

17 individual, or person subject to this Act;

18 (D) accept and rely on examination or

19 investigation reports made by other government

20 officials, within or outside this State; or

21 (E) accept audit reports made by an independent

22 certified public accountant for the person subject to

23 this Act and may incorporate the audit report in the

24 report of the examination, report of investigation, or

25 other writing of the Secretary.

26 (7) The authority of this Section shall remain in

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1 effect, whether the person subject to this Act acts or

2 claims to act under any licensing or registration law of

3 this State or claims to act without the authority.

4 (8) No licensee or person subject to investigation or

5 examination under this Section may knowingly withhold,

6 alter, abstract, remove, mutilate, destroy, hide, or

7 conceal any books, records, computer records, or other

8 information or take actions designed to delay or

9 complicate review of records.

10 Section 95. Confidentiality. To promote more effective

11 regulation, protect consumers, and reduce regulatory burden

12 through inter-regulatory sharing of confidential supervisory

13 information:

14 (1) The privacy or confidentiality of any information

15 or material provided to a multistate licensing system,

16 including all privileges arising under federal or state

17 court rules and law, shall continue to apply to the

18 information or material after the information or material

19 has been disclosed to the multistate licensing system.

20 Information and material may be shared with a multistate

21 licensing system, federal and state regulatory officials

22 with relevant oversight authority, and law enforcement

23 without the loss of privilege or the loss of

24 confidentiality protections.

25 (2) The Secretary is authorized to enter into

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1 agreements or sharing arrangements with other governmental

2 agencies, the Conference of State Bank Supervisors, and

3 other associations representing governmental agencies.

4 (3) Information or material that is privileged or

5 confidential under this Act as determined by the Secretary

6 is not subject to the following:

7 (A) disclosure under any State law governing the

8 disclosure to the public of information held by an

9 officer or an agency of the State; or

10 (B) subpoena, discovery, or admission into

11 evidence, in any private civil action or

12 administrative process except as authorized by the

13 Secretary.

14 (4) Any other law relating to the disclosure of

15 confidential supervisory information that is inconsistent

16 with this Act shall be superseded by the requirements of

17 this Section to the extent the other law provides less

18 confidentiality or a weaker privilege for information that

19 is privileged or confidential under this Act.

20 (5) Confidential or privileged information received

21 from a multistate licensing system, another licensing

22 body, federal and state regulatory officials, or law

23 enforcement shall be protected to the same extent as the

24 Secretary's confidential and privileged information is

25 protected under this Act. The Secretary may also protect

26 from disclosure confidential or privileged information

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1 that would be exempt from disclosure to the extent it is

2 held directly by the multistate licensing system, another

3 licensing body, federal and state regulatory officials, or

4 law enforcement.

5 Section 100. Appeal and review.

6 (a) The Secretary may, in accordance with the Illinois

7 Administrative Procedure Act, adopt rules to provide for

8 review within the Department of their decisions affecting the

9 rights of persons under this Act. The review shall provide

10 for, at a minimum:

11 (1) appointment of a hearing officer;

12 (2) appropriate procedural rules, specific deadlines

13 for filings, and standards of evidence and of proof; and

14 (3) provisions for apportioning costs among parties to

15 the appeal.

16 (b) All final agency determinations of appeals to

17 decisions of the Secretary may be reviewed in accordance with

18 and under the provisions of the Administrative Review Law.

19 Appeals from all final orders and judgments entered by a court

20 in review of any final administrative decision of the

21 Secretary or of any final agency review of a decision of the

22 Secretary may be taken as in other civil cases.

23 Section 105. Licensure fees.

24 (a) The fee for initial licensure is $2,500. The fee is

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1 nonrefundable.

2 (b) The fee for annual application renewal is $2,500. The

3 fee is nonrefundable.

4 (c) The Department shall impose a contingent fee

5 sufficient to cover its operating expenses in administering

6 this Act not otherwise covered by all other revenue collected

7 under this Act. Each licensee shall pay to the Division its pro

8 rata share, based on number or volume of transactions or

9 revenue, of the cost for administration of this Act that

10 exceeds other fees listed in this Section, as estimated by the

11 Division, for the current year and any deficit actually

12 incurred in the administration of this Act in prior years.

13 Section 110. Cease and desist order.

14 (a) The Secretary may issue a cease and desist order to any

15 licensee or person doing business without the required

16 license, when in the opinion of the Secretary the licensee or

17 other person has violated, is violating, or is about to

18 violate any provision of this Act or any rule adopted by the

19 Department under this Act or any requirement imposed in

20 writing by the Department as a condition of granting any

21 authorization permitted by this Act. The cease and desist

22 order authorized by this Section may be issued prior to a

23 hearing.

24 (b) The Secretary shall serve notice of the cease and

25 desist order, either personally or by certified mail. Service

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1 by certified mail shall be deemed completed when the notice is

2 deposited in the U.S. Mail. The Secretary's notice shall

3 include a statement of the reasons for the action.

4 (c) Within 10 days after service of the cease and desist

5 order, the person subject to the cease and desist order may

6 request a hearing in writing. The Secretary shall schedule a

7 preliminary hearing within 60 days after the request for a

8 hearing unless the parties agree to a later date.

9 (d) If it is determined that the Secretary had the

10 authority to issue the cease and desist order, the Secretary

11 may issue the orders as may be reasonably necessary to

12 correct, eliminate, deter, or remedy the conduct described in

13 the order and resulting harms.

14 (e) The powers vested in the Secretary by this Section are

15 additional to all other powers and remedies vested in the

16 Secretary by any law. Nothing in this Section shall be

17 construed as requiring that the Secretary shall employ the

18 power conferred in this Section instead of or as a condition

19 precedent to the exercise of any other power or remedy vested

20 in the Secretary.

21 Section 115. Injunctions. The Secretary may maintain an

22 action in the name of the people of the State of Illinois and

23 may apply for an injunction in the circuit court to enjoin a

24 person from violating this Act or its implementing rules

25 through the Attorney General.

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1 Section 120. Exemptions. This Act does not apply to, and

2 does not place any additional requirements or obligations

3 upon, any of the following:

4 (1) any person or entity is not a provider;

5 (2) a commercial financing transaction secured by real

6 property;

7 (3) a lease as defined in Section 2-A-103 of the

8 Uniform Commercial Code, not including finance leases as

9 defined in paragraph (g) of subsection (1) of Section

10 2A-103 of the Uniform Commercial Code; or

11 (4) any person or Provider who makes no more than 5

12 commercial financing transactions in this State in a

13 12-month period;

14 (5) a single, discrete commercial financing

15 transaction in an amount over $2,500,000; or

16 (6) a commercial financing transaction in which the

17 recipient is a vehicle dealer subject to Section 5-101 or

18 5-102 of the Illinois Vehicle Code, an affiliate of a

19 dealer, a rental vehicle company as defined in Section 10

20 of the Renter's Financial Responsibility and Protection

21 Act, or an affiliate of a company under a commercial

22 financing agreement or commercial open-end credit plan of

23 at least $50,000, including any commercial loan made under

24 a commercial financing transaction.

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1 Section 125. Complaint disclosure. All commercial

2 financing shall include a clear and conspicuous notice on how

3 to file a complaint with the Department.

4 Section 130. Rules. The Secretary may adopt rules to enact

5 and enforce this Act, including, but not limited to:

6 (1) rules defining the terms used in this Act and as

7 may be necessary and appropriate to interpret and

8 implement the provisions of this Act;

9 (2) rules for the enforcement and administration of

10 this Act;

11 (3) rules for the protection of consumers and

12 recipients in this State;

13 (4) rules defining improper or fraudulent business

14 practices in connection with commercial financing;

15 (5) rules charging and collecting fees necessary to

16 cover the costs of administering this Act, including, but

17 not limited to registration, investigation, and

18 examination fees; and

19 (6) rules to implement Section 155.

20 Section 135. Violations.

21 (a) Nothing in this Act shall be construed to restrict the

22 exercise of powers or the performance of the duties that the

23 Attorney General is authorized to exercise or perform by law.

24 (b) Any violation of this Act constitutes an unlawful

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1 practice in violation of the Consumer Fraud and Deceptive

2 Business Practices Act. The Attorney General may enforce a

3 violation of this Act as an unlawful practice under the

4 Consumer Fraud and Deceptive Business Practices Act.

5 Section 140. Beginning of licensure. No person shall be

6 required to apply for or obtain a license under this Act before

7 the date established by the Department by rule. The date shall

8 not be before January 1, 2025.

9 Section 145. Beginning of disclosure requirements. No

10 person shall be required to comply with the disclosure

11 requirements set forth in Section 155 before the date

12 established by the Department by rule. The date shall not be

13 before January 1, 2025.

14 Section 155. Commercial financing database.

15 (a) A commercial financing database program is established

16 within the Department. The program shall be administered in

17 accordance with this Section. None of the duties, obligations,

18 contingencies, or consequences of or from the program shall be

19 imposed until 6 months after the Department certifies a

20 commercial financing database under subsection (b). The

21 program shall apply to all commercial financings that are

22 governed by this Act and that are made or taken on or after the

23 inception of the program.

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1 (b) The Department shall certify that a commercial

2 financing database is a commercially reasonable method of

3 reporting. Upon certifying that a commercial financing

4 database is a commercially reasonable method of reporting, the

5 Department shall:

6 (1) provide reasonable notice to all licensees

7 identifying the commercially reasonable method of

8 reporting that is available; and

9 (2) immediately upon certification, require each

10 licensee to use a commercially reasonable method of

11 reporting as a means of complying with subsection (d) of

12 this Section.

13 (c) The database created under this program shall be

14 maintained and administered by the Department. The database

15 shall be designed to allow providers to submit information to

16 the database online. The database shall not be designed to

17 allow providers to retrieve information from the database,

18 except as otherwise provided in this Act.

19 (d) Within 30 days after providing funds to a recipient,

20 the provider shall submit to the commercial financing database

21 the information delineated in this subsection, if applicable

22 to the financing. If at the time funds are provided to a

23 recipient, certain information delineated in this subsection

24 is not known, the provider shall submit the information to the

25 commercial financing database within 30 days after the

26 information becoming ascertainable:

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1 (1) FEIN for the recipient;

2 (2) zip code of the recipient;

3 (3) origination date of the commercial financing;

4 (4) description of collateral, if any, securing

5 commercial financing;

6 (5) term, if any, of the commercial financing at the

7 time of origination;

8 (6) in the case of commercial financing without a

9 specific term at the time of origination, the actual term

10 of the commercial financing when known;

11 (7) financing amount, if applicable;

12 (8) maximum amount of credit made available to

13 recipient, if applicable;

14 (9) the amount of the receivables purchase price paid

15 to the recipient and, if different from the purchase

16 price, the amount disbursed to the recipient after any

17 amount deducted or withheld at disbursement, if

18 applicable;

19 (10) the amount scheduled to be drawn by the recipient

20 at the time the offer is extended, if applicable;

21 (11) all fees charged to the recipient at or before

22 the origination date of the commercial financing;

23 (12) all fees, charges, and interest scheduled to be

24 charged over the term of the commercial financing, if

25 applicable;

26 (13) all fees, charges, and interest scheduled to be

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1 charged during any month in which the recipient has a

2 balance on an open-end commercial financing, if

3 applicable; and

4 (14) the APR or Estimated APR, if required by the

5 Department; and

6 (15) all other information requested by the

7 Department.

8 (e) All personally identifiable information and

9 information identifying the identity of a recipient obtained

10 by way of the commercial financing database is strictly

11 confidential and shall be exempt from disclosure under the

12 Freedom of Information Act and any other law or regulation

13 pertaining to the disclosure of information or documents. The

14 Department may, by rule, identify any additional categories of

15 information the disclosure of which would be contrary to the

16 public interest. Any request for production of information

17 from the commercial financing database, whether by subpoena,

18 notice, or any other source, shall be referred to the

19 Department. Any recipient may authorize in writing the release

20 of database information. The Department may use the

21 information in the database without the consent of the

22 recipient or the licensee:

23 (1) for the purposes of administering and enforcing

24 the program;

25 (2) to prepare industry-level reports;

26 (3) to provide information to the appropriate law

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1 enforcement agency or the applicable administrative or

2 regulatory agency with a legitimate interest in the

3 information as determined by the Secretary;

4 (4) as required to comply with applicable law; or

5 (5) in any other manner that the Secretary deems is

6 not contrary to the public interest.

7 (f) A licensee who submits information to a certified

8 database provider in accordance with this Section shall not be

9 liable to any person for any subsequent release or disclosure

10 of that information by the certified database provider, the

11 Department, or any other person acquiring possession of the

12 information, regardless of whether the subsequent release or

13 disclosure was lawful, authorized, or intentional.

14 (g) In certifying a commercially reasonable method of

15 reporting, the Department shall ensure that the commercial

16 financing database:

17 (1) provides real-time access through an Internet

18 connection;

19 (2) is accessible to the Department and to licensees

20 in order to ensure compliance with this Act and in order to

21 provide any other information that the Department deems

22 necessary;

23 (3) requires licensees to input whatever information

24 is required by the Department;

25 (4) maintains a real-time copy of the required

26 reporting information that is available to the Department

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1 at all times and is the property of the Department; and

2 (5) contains safeguards to ensure that all information

3 contained in the database regarding consumers is kept

4 strictly confidential.

5 (h) The certified commercial financing database may charge

6 a fee to a licensee not to exceed $1 for each financing entered

7 into the database. The certified commercial financing database

8 shall not charge any additional fees or charges.

9 (i) The certified commercial financing database provider

10 shall produce an annual report for the Department using the

11 data submitted by licensees to the database. The Department

12 may publish this report to the public.

13 Section 160. Severability. The provisions of this Act are

14 severable under Section 1.31 of the Statute on Statutes.

15 Section 900. The Freedom of Information Act is amended by

16 changing Section 7.5 as follows:

17 (5 ILCS 140/7.5)

18 (Text of Section before amendment by P.A. 103-472)

19 Sec. 7.5. Statutory exemptions. To the extent provided for

20 by the statutes referenced below, the following shall be

21 exempt from inspection and copying:

22 (a) All information determined to be confidential

23 under Section 4002 of the Technology Advancement and

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1 Development Act.

2 (b) Library circulation and order records identifying

3 library users with specific materials under the Library

4 Records Confidentiality Act.

5 (c) Applications, related documents, and medical

6 records received by the Experimental Organ Transplantation

7 Procedures Board and any and all documents or other

8 records prepared by the Experimental Organ Transplantation

9 Procedures Board or its staff relating to applications it

10 has received.

11 (d) Information and records held by the Department of

12 Public Health and its authorized representatives relating

13 to known or suspected cases of sexually transmissible

14 disease or any information the disclosure of which is

15 restricted under the Illinois Sexually Transmissible

16 Disease Control Act.

17 (e) Information the disclosure of which is exempted

18 under Section 30 of the Radon Industry Licensing Act.

19 (f) Firm performance evaluations under Section 55 of

20 the Architectural, Engineering, and Land Surveying

21 Qualifications Based Selection Act.

22 (g) Information the disclosure of which is restricted

23 and exempted under Section 50 of the Illinois Prepaid

24 Tuition Act.

25 (h) Information the disclosure of which is exempted

26 under the State Officials and Employees Ethics Act, and

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1 records of any lawfully created State or local inspector

2 general's office that would be exempt if created or

3 obtained by an Executive Inspector General's office under

4 that Act.

5 (i) Information contained in a local emergency energy

6 plan submitted to a municipality in accordance with a

7 local emergency energy plan ordinance that is adopted

8 under Section 11-21.5-5 of the Illinois Municipal Code.

9 (j) Information and data concerning the distribution

10 of surcharge moneys collected and remitted by carriers

11 under the Emergency Telephone System Act.

12 (k) Law enforcement officer identification information

13 or driver identification information compiled by a law

14 enforcement agency or the Department of Transportation

15 under Section 11-212 of the Illinois Vehicle Code.

16 (l) Records and information provided to a residential

17 health care facility resident sexual assault and death

18 review team or the Executive Council under the Abuse

19 Prevention Review Team Act.

20 (m) Information provided to the predatory lending

21 database created pursuant to Article 3 of the Residential

22 Real Property Disclosure Act, except to the extent

23 authorized under that Article.

24 (n) Defense budgets and petitions for certification of

25 compensation and expenses for court appointed trial

26 counsel as provided under Sections 10 and 15 of the

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1 Capital Crimes Litigation Act (repealed). This subsection

2 (n) shall apply until the conclusion of the trial of the

3 case, even if the prosecution chooses not to pursue the

4 death penalty prior to trial or sentencing.

5 (o) Information that is prohibited from being

6 disclosed under Section 4 of the Illinois Health and

7 Hazardous Substances Registry Act.

8 (p) Security portions of system safety program plans,

9 investigation reports, surveys, schedules, lists, data, or

10 information compiled, collected, or prepared by or for the

11 Department of Transportation under Sections 2705-300 and

12 2705-616 of the Department of Transportation Law of the

13 Civil Administrative Code of Illinois, the Regional

14 Transportation Authority under Section 2.11 of the

15 Regional Transportation Authority Act, or the St. Clair

16 County Transit District under the Bi-State Transit Safety

17 Act (repealed).

18 (q) Information prohibited from being disclosed by the

19 Personnel Record Review Act.

20 (r) Information prohibited from being disclosed by the

21 Illinois School Student Records Act.

22 (s) Information the disclosure of which is restricted

23 under Section 5-108 of the Public Utilities Act.

24 (t) (Blank).

25 (u) Records and information provided to an independent

26 team of experts under the Developmental Disability and

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1 Mental Health Safety Act (also known as Brian's Law).

2 (v) Names and information of people who have applied

3 for or received Firearm Owner's Identification Cards under

4 the Firearm Owners Identification Card Act or applied for

5 or received a concealed carry license under the Firearm

6 Concealed Carry Act, unless otherwise authorized by the

7 Firearm Concealed Carry Act; and databases under the

8 Firearm Concealed Carry Act, records of the Concealed

9 Carry Licensing Review Board under the Firearm Concealed

10 Carry Act, and law enforcement agency objections under the

11 Firearm Concealed Carry Act.

12 (v-5) Records of the Firearm Owner's Identification

13 Card Review Board that are exempted from disclosure under

14 Section 10 of the Firearm Owners Identification Card Act.

15 (w) Personally identifiable information which is

16 exempted from disclosure under subsection (g) of Section

17 19.1 of the Toll Highway Act.

18 (x) Information which is exempted from disclosure

19 under Section 5-1014.3 of the Counties Code or Section

20 8-11-21 of the Illinois Municipal Code.

21 (y) Confidential information under the Adult

22 Protective Services Act and its predecessor enabling

23 statute, the Elder Abuse and Neglect Act, including

24 information about the identity and administrative finding

25 against any caregiver of a verified and substantiated

26 decision of abuse, neglect, or financial exploitation of

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1 an eligible adult maintained in the Registry established

2 under Section 7.5 of the Adult Protective Services Act.

3 (z) Records and information provided to a fatality

4 review team or the Illinois Fatality Review Team Advisory

5 Council under Section 15 of the Adult Protective Services

6 Act.

7 (aa) Information which is exempted from disclosure

8 under Section 2.37 of the Wildlife Code.

9 (bb) Information which is or was prohibited from

10 disclosure by the Juvenile Court Act of 1987.

11 (cc) Recordings made under the Law Enforcement

12 Officer-Worn Body Camera Act, except to the extent

13 authorized under that Act.

14 (dd) Information that is prohibited from being

15 disclosed under Section 45 of the Condominium and Common

16 Interest Community Ombudsperson Act.

17 (ee) Information that is exempted from disclosure

18 under Section 30.1 of the Pharmacy Practice Act.

19 (ff) Information that is exempted from disclosure

20 under the Revised Uniform Unclaimed Property Act.

21 (gg) Information that is prohibited from being

22 disclosed under Section 7-603.5 of the Illinois Vehicle

23 Code.

24 (hh) Records that are exempt from disclosure under

25 Section 1A-16.7 of the Election Code.

26 (ii) Information which is exempted from disclosure

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1 under Section 2505-800 of the Department of Revenue Law of

2 the Civil Administrative Code of Illinois.

3 (jj) Information and reports that are required to be

4 submitted to the Department of Labor by registering day

5 and temporary labor service agencies but are exempt from

6 disclosure under subsection (a-1) of Section 45 of the Day

7 and Temporary Labor Services Act.

8 (kk) Information prohibited from disclosure under the

9 Seizure and Forfeiture Reporting Act.

10 (ll) Information the disclosure of which is restricted

11 and exempted under Section 5-30.8 of the Illinois Public

12 Aid Code.

13 (mm) Records that are exempt from disclosure under

14 Section 4.2 of the Crime Victims Compensation Act.

15 (nn) Information that is exempt from disclosure under

16 Section 70 of the Higher Education Student Assistance Act.

17 (oo) Communications, notes, records, and reports

18 arising out of a peer support counseling session

19 prohibited from disclosure under the First Responders

20 Suicide Prevention Act.

21 (pp) Names and all identifying information relating to

22 an employee of an emergency services provider or law

23 enforcement agency under the First Responders Suicide

24 Prevention Act.

25 (qq) Information and records held by the Department of

26 Public Health and its authorized representatives collected

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1 under the Reproductive Health Act.

2 (rr) Information that is exempt from disclosure under

3 the Cannabis Regulation and Tax Act.

4 (ss) Data reported by an employer to the Department of

5 Human Rights pursuant to Section 2-108 of the Illinois

6 Human Rights Act.

7 (tt) Recordings made under the Children's Advocacy

8 Center Act, except to the extent authorized under that

9 Act.

10 (uu) Information that is exempt from disclosure under

11 Section 50 of the Sexual Assault Evidence Submission Act.

12 (vv) Information that is exempt from disclosure under

13 subsections (f) and (j) of Section 5-36 of the Illinois

14 Public Aid Code.

15 (ww) Information that is exempt from disclosure under

16 Section 16.8 of the State Treasurer Act.

17 (xx) Information that is exempt from disclosure or

18 information that shall not be made public under the

19 Illinois Insurance Code.

20 (yy) Information prohibited from being disclosed under

21 the Illinois Educational Labor Relations Act.

22 (zz) Information prohibited from being disclosed under

23 the Illinois Public Labor Relations Act.

24 (aaa) Information prohibited from being disclosed

25 under Section 1-167 of the Illinois Pension Code.

26 (bbb) Information that is prohibited from disclosure

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1 by the Illinois Police Training Act and the Illinois State

2 Police Act.

3 (ccc) Records exempt from disclosure under Section

4 2605-304 of the Illinois State Police Law of the Civil

5 Administrative Code of Illinois.

6 (ddd) Information prohibited from being disclosed

7 under Section 35 of the Address Confidentiality for

8 Victims of Domestic Violence, Sexual Assault, Human

9 Trafficking, or Stalking Act.

10 (eee) Information prohibited from being disclosed

11 under subsection (b) of Section 75 of the Domestic

12 Violence Fatality Review Act.

13 (fff) Images from cameras under the Expressway Camera

14 Act. This subsection (fff) is inoperative on and after

15 July 1, 2025.

16 (ggg) Information prohibited from disclosure under

17 paragraph (3) of subsection (a) of Section 14 of the Nurse

18 Agency Licensing Act.

19 (hhh) Information submitted to the Illinois State

20 Police in an affidavit or application for an assault

21 weapon endorsement, assault weapon attachment endorsement,

22 .50 caliber rifle endorsement, or .50 caliber cartridge

23 endorsement under the Firearm Owners Identification Card

24 Act.

25 (iii) Data exempt from disclosure under Section 50 of

26 the School Safety Drill Act.

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1 (jjj) ~~(hhh)~~ Information exempt from disclosure under

2 Section 30 of the Insurance Data Security Law.

3 (kkk) ~~(iii)~~ Confidential business information

4 prohibited from disclosure under Section 45 of the Paint

5 Stewardship Act.

6 (lll) (Reserved).

7 (mmm) ~~(iii)~~ Information prohibited from being

8 disclosed under subsection (e) of Section 1-129 of the

9 Illinois Power Agency Act.

10 (nnn) Information exempt from disclosure under Section

11 155 of the Consumer Protections for Small Business Act.

12 (Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22;

13 102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.

14 8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;

15 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.

16 6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,

17 eff. 1-1-24; 103-508, eff. 8-4-23; 103-580, eff. 12-8-23;

18 revised 1-2-24.)

19 (Text of Section after amendment by P.A. 103-472)

20 Sec. 7.5. Statutory exemptions. To the extent provided for

21 by the statutes referenced below, the following shall be

22 exempt from inspection and copying:

23 (a) All information determined to be confidential

24 under Section 4002 of the Technology Advancement and

25 Development Act.

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1 (b) Library circulation and order records identifying

2 library users with specific materials under the Library

3 Records Confidentiality Act.

4 (c) Applications, related documents, and medical

5 records received by the Experimental Organ Transplantation

6 Procedures Board and any and all documents or other

7 records prepared by the Experimental Organ Transplantation

8 Procedures Board or its staff relating to applications it

9 has received.

10 (d) Information and records held by the Department of

11 Public Health and its authorized representatives relating

12 to known or suspected cases of sexually transmissible

13 disease or any information the disclosure of which is

14 restricted under the Illinois Sexually Transmissible

15 Disease Control Act.

16 (e) Information the disclosure of which is exempted

17 under Section 30 of the Radon Industry Licensing Act.

18 (f) Firm performance evaluations under Section 55 of

19 the Architectural, Engineering, and Land Surveying

20 Qualifications Based Selection Act.

21 (g) Information the disclosure of which is restricted

22 and exempted under Section 50 of the Illinois Prepaid

23 Tuition Act.

24 (h) Information the disclosure of which is exempted

25 under the State Officials and Employees Ethics Act, and

26 records of any lawfully created State or local inspector

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1 general's office that would be exempt if created or

2 obtained by an Executive Inspector General's office under

3 that Act.

4 (i) Information contained in a local emergency energy

5 plan submitted to a municipality in accordance with a

6 local emergency energy plan ordinance that is adopted

7 under Section 11-21.5-5 of the Illinois Municipal Code.

8 (j) Information and data concerning the distribution

9 of surcharge moneys collected and remitted by carriers

10 under the Emergency Telephone System Act.

11 (k) Law enforcement officer identification information

12 or driver identification information compiled by a law

13 enforcement agency or the Department of Transportation

14 under Section 11-212 of the Illinois Vehicle Code.

15 (l) Records and information provided to a residential

16 health care facility resident sexual assault and death

17 review team or the Executive Council under the Abuse

18 Prevention Review Team Act.

19 (m) Information provided to the predatory lending

20 database created pursuant to Article 3 of the Residential

21 Real Property Disclosure Act, except to the extent

22 authorized under that Article.

23 (n) Defense budgets and petitions for certification of

24 compensation and expenses for court appointed trial

25 counsel as provided under Sections 10 and 15 of the

26 Capital Crimes Litigation Act (repealed). This subsection

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1 (n) shall apply until the conclusion of the trial of the

2 case, even if the prosecution chooses not to pursue the

3 death penalty prior to trial or sentencing.

4 (o) Information that is prohibited from being

5 disclosed under Section 4 of the Illinois Health and

6 Hazardous Substances Registry Act.

7 (p) Security portions of system safety program plans,

8 investigation reports, surveys, schedules, lists, data, or

9 information compiled, collected, or prepared by or for the

10 Department of Transportation under Sections 2705-300 and

11 2705-616 of the Department of Transportation Law of the

12 Civil Administrative Code of Illinois, the Regional

13 Transportation Authority under Section 2.11 of the

14 Regional Transportation Authority Act, or the St. Clair

15 County Transit District under the Bi-State Transit Safety

16 Act (repealed).

17 (q) Information prohibited from being disclosed by the

18 Personnel Record Review Act.

19 (r) Information prohibited from being disclosed by the

20 Illinois School Student Records Act.

21 (s) Information the disclosure of which is restricted

22 under Section 5-108 of the Public Utilities Act.

23 (t) (Blank).

24 (u) Records and information provided to an independent

25 team of experts under the Developmental Disability and

26 Mental Health Safety Act (also known as Brian's Law).

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1 (v) Names and information of people who have applied

2 for or received Firearm Owner's Identification Cards under

3 the Firearm Owners Identification Card Act or applied for

4 or received a concealed carry license under the Firearm

5 Concealed Carry Act, unless otherwise authorized by the

6 Firearm Concealed Carry Act; and databases under the

7 Firearm Concealed Carry Act, records of the Concealed

8 Carry Licensing Review Board under the Firearm Concealed

9 Carry Act, and law enforcement agency objections under the

10 Firearm Concealed Carry Act.

11 (v-5) Records of the Firearm Owner's Identification

12 Card Review Board that are exempted from disclosure under

13 Section 10 of the Firearm Owners Identification Card Act.

14 (w) Personally identifiable information which is

15 exempted from disclosure under subsection (g) of Section

16 19.1 of the Toll Highway Act.

17 (x) Information which is exempted from disclosure

18 under Section 5-1014.3 of the Counties Code or Section

19 8-11-21 of the Illinois Municipal Code.

20 (y) Confidential information under the Adult

21 Protective Services Act and its predecessor enabling

22 statute, the Elder Abuse and Neglect Act, including

23 information about the identity and administrative finding

24 against any caregiver of a verified and substantiated

25 decision of abuse, neglect, or financial exploitation of

26 an eligible adult maintained in the Registry established

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1 under Section 7.5 of the Adult Protective Services Act.

2 (z) Records and information provided to a fatality

3 review team or the Illinois Fatality Review Team Advisory

4 Council under Section 15 of the Adult Protective Services

5 Act.

6 (aa) Information which is exempted from disclosure

7 under Section 2.37 of the Wildlife Code.

8 (bb) Information which is or was prohibited from

9 disclosure by the Juvenile Court Act of 1987.

10 (cc) Recordings made under the Law Enforcement

11 Officer-Worn Body Camera Act, except to the extent

12 authorized under that Act.

13 (dd) Information that is prohibited from being

14 disclosed under Section 45 of the Condominium and Common

15 Interest Community Ombudsperson Act.

16 (ee) Information that is exempted from disclosure

17 under Section 30.1 of the Pharmacy Practice Act.

18 (ff) Information that is exempted from disclosure

19 under the Revised Uniform Unclaimed Property Act.

20 (gg) Information that is prohibited from being

21 disclosed under Section 7-603.5 of the Illinois Vehicle

22 Code.

23 (hh) Records that are exempt from disclosure under

24 Section 1A-16.7 of the Election Code.

25 (ii) Information which is exempted from disclosure

26 under Section 2505-800 of the Department of Revenue Law of

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1 the Civil Administrative Code of Illinois.

2 (jj) Information and reports that are required to be

3 submitted to the Department of Labor by registering day

4 and temporary labor service agencies but are exempt from

5 disclosure under subsection (a-1) of Section 45 of the Day

6 and Temporary Labor Services Act.

7 (kk) Information prohibited from disclosure under the

8 Seizure and Forfeiture Reporting Act.

9 (ll) Information the disclosure of which is restricted

10 and exempted under Section 5-30.8 of the Illinois Public

11 Aid Code.

12 (mm) Records that are exempt from disclosure under

13 Section 4.2 of the Crime Victims Compensation Act.

14 (nn) Information that is exempt from disclosure under

15 Section 70 of the Higher Education Student Assistance Act.

16 (oo) Communications, notes, records, and reports

17 arising out of a peer support counseling session

18 prohibited from disclosure under the First Responders

19 Suicide Prevention Act.

20 (pp) Names and all identifying information relating to

21 an employee of an emergency services provider or law

22 enforcement agency under the First Responders Suicide

23 Prevention Act.

24 (qq) Information and records held by the Department of

25 Public Health and its authorized representatives collected

26 under the Reproductive Health Act.

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1 (rr) Information that is exempt from disclosure under

2 the Cannabis Regulation and Tax Act.

3 (ss) Data reported by an employer to the Department of

4 Human Rights pursuant to Section 2-108 of the Illinois

5 Human Rights Act.

6 (tt) Recordings made under the Children's Advocacy

7 Center Act, except to the extent authorized under that

8 Act.

9 (uu) Information that is exempt from disclosure under

10 Section 50 of the Sexual Assault Evidence Submission Act.

11 (vv) Information that is exempt from disclosure under

12 subsections (f) and (j) of Section 5-36 of the Illinois

13 Public Aid Code.

14 (ww) Information that is exempt from disclosure under

15 Section 16.8 of the State Treasurer Act.

16 (xx) Information that is exempt from disclosure or

17 information that shall not be made public under the

18 Illinois Insurance Code.

19 (yy) Information prohibited from being disclosed under

20 the Illinois Educational Labor Relations Act.

21 (zz) Information prohibited from being disclosed under

22 the Illinois Public Labor Relations Act.

23 (aaa) Information prohibited from being disclosed

24 under Section 1-167 of the Illinois Pension Code.

25 (bbb) Information that is prohibited from disclosure

26 by the Illinois Police Training Act and the Illinois State

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1 Police Act.

2 (ccc) Records exempt from disclosure under Section

3 2605-304 of the Illinois State Police Law of the Civil

4 Administrative Code of Illinois.

5 (ddd) Information prohibited from being disclosed

6 under Section 35 of the Address Confidentiality for

7 Victims of Domestic Violence, Sexual Assault, Human

8 Trafficking, or Stalking Act.

9 (eee) Information prohibited from being disclosed

10 under subsection (b) of Section 75 of the Domestic

11 Violence Fatality Review Act.

12 (fff) Images from cameras under the Expressway Camera

13 Act. This subsection (fff) is inoperative on and after

14 July 1, 2025.

15 (ggg) Information prohibited from disclosure under

16 paragraph (3) of subsection (a) of Section 14 of the Nurse

17 Agency Licensing Act.

18 (hhh) Information submitted to the Illinois State

19 Police in an affidavit or application for an assault

20 weapon endorsement, assault weapon attachment endorsement,

21 .50 caliber rifle endorsement, or .50 caliber cartridge

22 endorsement under the Firearm Owners Identification Card

23 Act.

24 (iii) Data exempt from disclosure under Section 50 of

25 the School Safety Drill Act.

26 (jjj) ~~(hhh)~~ Information exempt from disclosure under

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1 Section 30 of the Insurance Data Security Law.

2 (kkk) ~~(iii)~~ Confidential business information

3 prohibited from disclosure under Section 45 of the Paint

4 Stewardship Act.

5 (lll) ~~(iii)~~ Data exempt from disclosure under Section

6 2-3.196 of the School Code.

7 (mmm) ~~(iii)~~ Information prohibited from being

8 disclosed under subsection (e) of Section 1-129 of the

9 Illinois Power Agency Act.

10 (nnn) Information exempt from disclosure under Section

11 155 of the Consumer Protections for Small Business Act.

12 (Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22;

13 102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.

14 8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;

15 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.

16 6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,

17 eff. 1-1-24; 103-472, eff. 8-1-24; 103-508, eff. 8-4-23;

18 103-580, eff. 12-8-23; revised 1-2-24.)

19 Section 905. The Consumer Fraud and Deceptive Business

20 Practices Act is amended by adding Section 2EEEE as follows:

21 (815 ILCS 505/2EEEE new)

22 Sec. 2EEEE. Violations of the Consumer Protections for

23 Small Business Act. Any person who violates the Consumer

24 Protections for Small Business Act commits an unlawful

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1 practice within the meaning of this Act.

2 Section 995. No acceleration or delay. Where this Act

3 makes changes in a statute that is represented in this Act by

4 text that is not yet or no longer in effect (for example, a

5 Section represented by multiple versions), the use of that

6 text does not accelerate or delay the taking effect of (i) the

7 changes made by this Act or (ii) provisions derived from any

8 other Public Act.