Sen. Christopher Belt

Filed: 4/9/2024

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1 AMENDMENT TO SENATE BILL 2234

2 AMENDMENT NO. ______. Amend Senate Bill 2234, AS AMENDED,

3 by replacing everything after the enacting clause with the

4 following:

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

6 Business Financing Transparency Act.

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

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

9 construed to effectuate its purpose.

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

11 "Applicant" means a person who has submitted an

12 application for a registration under this Act.

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

14 credit, secured or unsecured, recourse or nonrecourse,

15 including equipment financing that does not meet the

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

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

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

4 financing" includes financing with an established principal

5 amount and duration.

6 "Commercial financing database" means a reporting database

7 certified by the Department as effective in receiving a report

8 of commercial financing made under this Act.

9 "Commercial financing database provider" means an entity

10 that provides a reporting database certified by the Department

11 under this Act.

12 "Commercial financing" means open-end financing,

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

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

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

16 family, or household purposes. For purposes of determining

17 whether a financing is a commercial financing, the provider

18 may rely on any statement of intended purposes by the

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

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

21 financing agreement, or other document signed or consented to

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

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

24 by the provider. Electronic signatures and consents are valid

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

26 be required to ascertain that the proceeds of a commercial

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1 financing are used in accordance with the recipient's

2 statement of intended purposes.

3 "Department" means the Department of Financial and

4 Professional Regulation.

5 "Division of Financial Institutions" or "Division" means

6 the Division of Financial Institutions of the Department of

7 Financial and Professional Regulation.

8 "Factoring transaction" means an accounts receivable

9 purchase transaction that includes an agreement to purchase,

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

11 by a recipient for goods the recipient has supplied or

12 services the recipient has rendered that have been ordered but

13 for which payment has not yet been made.

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

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

16 or indirectly by the recipient and imposed directly or

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

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

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

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

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

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

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

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

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

26 charges determined by the Secretary.

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

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

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

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

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

6 (i) the provider reasonably contemplates repeated

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

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

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

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

11 extent that any outstanding balance is repaid.

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

13 partnership, limited liability company, joint venture,

14 association, joint stock company, trust, or unincorporated

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

16 proprietorship.

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

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

19 otherwise exempt, includes a person who solicits and presents

20 specific offers of commercial financing on behalf of a third

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

22 disclosures for a commercial financing, is not sufficient to

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

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

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

26 or any subsidiary or affiliate thereof, doing business

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

2 certificate or charter issued by the United States, this

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

4 commonwealth of the United States that is authorized to

5 transact business in this State;

6 (2) a federally chartered savings and loan

7 association, federal savings bank, or federal credit

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

9 authorized to transact business in this State;

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

11 credit union, or any subsidiary or affiliate thereof,

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

13 that is authorized to transact business in this State;

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

15 Act; and

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

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

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

19 program, provided the person has no interest, or

20 arrangement, or agreement to purchase any interest in the

21 commercial financing extended by the entity in connection

22 with the program.

23 "Recipient" means a person located in the State of

24 Illinois who applies for commercial financing and is made a

25 specific offer of commercial financing by a provider. For the

26 purpose of determining whether a recipient is located in

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1 Illinois, a provider may rely upon (i) any written

2 representation by the recipient as to whether it is located in

3 Illinois; or (ii) the business address provided by the

4 recipient in the application for commercial financing showing

5 that the recipient is located in Illinois. "Recipient"

6 includes an authorized representative of a person who applies

7 for commercial financing and is made a specific offer of

8 commercial financing by a provider. "Recipient" does not

9 include a person acting as a broker is not a recipient in a

10 transaction they broker.

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

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

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

14 decrease according to the volume of sales made or revenue

15 received by the recipient or a transaction that includes a

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

17 payment but provides for a reconciliation process that adjusts

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

19 revenue.

20 "Secretary" means the Secretary of Financial and

21 Professional Regulation or a person authorized by the

22 Secretary to perform the Secretary's responsibilities under

23 this Act.

24 "Specific offer" means the specific terms of commercial

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

26 recipient based on information obtained from or about the

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

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

3 requirements stated in the specific terms.

4 "True-up mechanism" means, with respect to sales-based

5 financing, a contractual arrangement with all the following

6 elements:

7 (1) The financer receives periodic payments based upon

8 a pre-set amount stated in the contract.

9 (2) The contract allows the recipient to request, or

10 the financer to initiate, adjustments to the payment

11 amount, credits to the recipient, or charges to the

12 recipient after execution of the contract, so that the

13 total amount paid by the recipient more closely reflects a

14 split rate listed in the contract.

15 Section 10. Applicability.

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

17 applies to any person that offers or provides commercial

18 financing in Illinois or is otherwise a provider.

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

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

21 pretense whatsoever.

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

23 aids or facilitates a violation of this Act.

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

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

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1 doing business under the authority of, or in accordance

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

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

4 territory, or commonwealth of the United States that is

5 authorized to transact business in this State;

6 (2) a federally chartered savings and loan

7 association, federal savings bank, or federal credit union

8 that is authorized to transact business in this State;

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

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

11 other state that is authorized to transact business in

12 this State;

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

14 Act; and

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

16 technology services provider to an entity described by

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

18 entity's commercial financing program, provided the person

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

20 any interest in the commercial financing extended by the

21 entity in connection with the program.

22 Section 15. Division of Financial Institutions. This Act

23 shall be administered by the Division on behalf of the

24 Secretary.

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1 Section 20. Registration requirement.

2 (a) It is unlawful for a person to engage in the conduct

3 regulated by this Act unless the person: (i) registers with

4 the Secretary in accordance with this Section; and (ii)

5 maintains a valid registration. An officer or employee of a

6 person required to register under this Section is not required

7 to register if the person for whom the individual is an officer

8 or employee is registered.

9 (b) Application for registration and renewal of

10 registration shall be made in accordance with this Act and

11 with the requirements of the multistate licensing system, if

12 required by the Secretary. The application shall be in

13 writing, under oath, and on a form obtained from and

14 prescribed by the Secretary. The Secretary may change or

15 update the form to carry out the purposes of this Act. The

16 Secretary may require part or all of the application to be

17 submitted electronically, with attestation, to the multistate

18 licensing system.

19 (c) Registrants shall apply to renew their registration

20 every calendar year. Registrants may submit properly completed

21 renewal application forms and filing fees 60 days before the

22 registration expiration date, and the same shall be received

23 by the Secretary at least 30 days before the registration

24 expiration date. Absent a written extension from the

25 Department, a registration shall expire on December 31 of each

26 year if a registrant fails to timely submit a properly

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1 completed renewal application and fees.

2 (d) Upon receipt of the registration, a registrant is

3 authorized to engage in conduct regulated by this Act. The

4 registration shall remain in full force and effect until it

5 expires, is withdrawn by the registrant, or is revoked or

6 suspended as provided in this Act.

7 (e) To register under this Section, an applicant shall:

8 (1) pay a registration fee of $2,500 to the

9 Department; and

10 (2) submit a registration statement containing the

11 information described in subsection (g).

12 (f) To renew a registration under this Section, a person

13 shall:

14 (1) pay the annual fee of $2,500 to the Department;

15 and

16 (2) submit a renewal statement containing the

17 information described in subsection (g).

18 (g) A registration or renewal statement must be submitted

19 to the Secretary or to a multistate licensing system as

20 approved by the Secretary. The registration or renewal

21 statement shall include:

22 (1) the name of the person;

23 (2) the name in which the business will be transacted

24 if different from that required in paragraph (1), which

25 must be properly registered as an assumed corporate name

26 under the Business Corporation Act of 1983, an assumed

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1 limited liability company name under the Limited Liability

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

3 Business Name Act;

4 (3) the address of the person's principal business

5 office;

6 (4) the address of each office in this State at which

7 the person engages in commercial financing transactions;

8 (5) if the person engages in commercial financing

9 transactions in this State but does not maintain an office

10 in this State, a brief description of the manner in which

11 the business is conducted;

12 (6) if the person conducts business through an agent

13 located in this State, the name and address in this State

14 of the person's agent properly registered with the

15 Secretary of State;

16 (7) for a registration application, whether the

17 person, an officer, director, manager, operator, or

18 principal of the person, or an employee of the person

19 engaged in the business of commercial financing has been

20 convicted of a crime involving an act of fraud,

21 dishonesty, breach of trust, or money laundering; if the

22 applicant answers yes to this paragraph, then the

23 applicant shall report the names, titles or relationship

24 to the applicant or registrant, and the nature of the

25 covered crime;

26 (8) for a renewal application, whether, in the past

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1 year, the person, an officer, director, manager, operator,

2 or principal of the person, or an employee of the person

3 engaged in the business of commercial financing has been

4 convicted of a crime involving an act of fraud,

5 dishonesty, breach of trust, or money laundering; if the

6 registrant answers yes to this paragraph, then the

7 registrant shall report the names, titles or relationship

8 to the applicant or registrant, and the nature of the

9 covered crime;

10 (9) a statement of the person's commitment to abide by

11 the requirements of registering persons under this Act,

12 including providing the required financing disclosures in

13 commercial financing offers as required under Sections 45,

14 50, 55, 60, 65, and 70 of this Act;

15 (10) a copy of the commercial financing disclosure

16 form to be used for each type of commercial financing that

17 the person offers or intends to offer, and a description

18 of when the disclosure will be provided to the recipient;

19 (11) information on financing offers presented by

20 registrant in Illinois in the previous calendar year,

21 including the number of financing offers made, the number

22 of financing offers made in which the disclosures as

23 required by Sections 45, 50, 55, 60, 65, and 70 were

24 offered, and the number of financing offers accepted by

25 recipients; and

26 (12) any other information deemed necessary by the

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1 Secretary.

2 (h) The Secretary may refuse to accept or renew a

3 registration if:

4 (1) the Secretary determines that the person has not

5 complied with the provisions of this Act, its implementing

6 rules, or other laws that apply to the person; or

7 (2) the Secretary determines that there is substantial

8 continuity between the person and any violator of this

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

10 the person or related violator.

11 (i) The Department shall adopt and amend such rules as may

12 be required for the proper administration and enforcement of

13 this Section, including rules providing for the form, content,

14 and filing of a registration and renewal statement.

15 Section 25. Additional registration information.

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

17 Secretary may establish relationships or contracts with a

18 multistate licensing system or other persons to collect and

19 maintain records and process fees related to registrants or

20 other persons subject to this Act.

21 (b) For the purposes of this Section, and to reduce the

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

23 Secretary may use a multistate licensing system as a

24 channeling agent for requesting and distributing information

25 to and from any source.

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1 (c) Each registrant shall furnish to the Secretary or

2 multistate licensing system an updated business address within

3 10 days after any change of business address.

4 Section 30. Registration expiration. No activity regulated

5 by this Act shall be conducted by a registrant whose

6 registration has expired. The Secretary may, within the

7 Secretary's discretion, reinstate an expired registration upon

8 payment of the renewal fee, payment of a reactivation fee

9 equal to 5 times the renewal fee, submission of a completed

10 renewal application, and an affidavit of good cause for late

11 renewal.

12 Section 35. Functions; powers; duties. The functions,

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

14 limited to, the following:

15 (1) to issue or refuse to issue any registration or

16 renewal;

17 (2) to revoke or suspend for cause any registration

18 issued under this Act;

19 (3) to keep records of all registrations issued under

20 this Act;

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

22 complaints made by any person in connection with any

23 registration in this State or unregistered commercial

24 financing activity of any person;

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1 (5) to adopt rules necessary and proper for the

2 administration of this Act, to protect consumers and

3 financing recipients, to promote fair competition, and as

4 otherwise authorized by this Act;

5 (6) to subpoena documents and witnesses and compel

6 their attendance and production, to administer oaths, and

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

8 materials relevant to any inquiry authorized by this Act

9 or its implementing rules;

10 (7) to issue orders against any person if the

11 Secretary has reasonable cause to believe that an unsafe,

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

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

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

15 the Secretary; or for the purpose of administering the

16 provisions of this Act and any rule adopted in accordance

17 with this Act;

18 (8) to address any inquiries to any registrant, or the

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

20 activities and conditions, or any other matter connected

21 with its affairs, and any registrant or person so

22 addressed shall promptly reply in writing to those

23 inquiries. The Secretary may also require reports from any

24 registrant at any time the Secretary deems desirable;

25 (9) to enforce provisions of this Act and its

26 implementing rules;

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1 (10) to levy fees, including, but not limited to,

2 assessments, registration fees, civil penalties, and

3 charges for services performed in administering this Act.

4 The Secretary may establish and modify fees by rule. The

5 aggregate of all fees collected by the Secretary under

6 this Act shall be paid promptly after receipt into the

7 Financial Institution Fund. The amounts deposited into the

8 Financial Institution Fund shall be used for the ordinary

9 and contingent expenses of the Department. Nothing in this

10 Act prevents paying expenses including salaries,

11 retirement, social security, and State-paid insurance of

12 State employees, or any other expenses incurred under this

13 Act by appropriation from the General Revenue Fund or any

14 other fund;

15 (11) to issue refunds to registrants of any

16 overpayment for good cause shown;

17 (12) to appoint experts and special assistants as

18 needed to effectively and efficiently administer this Act;

19 (13) to conduct hearings for the purpose of

20 suspensions, denials, or revocations of registrations,

21 fining, or other discipline of registrants or unregistered

22 persons or entities;

23 (14) to exercise visitorial power over a registrant:

24 (A) if the Secretary has reasonable cause to believe that

25 an unsafe, unsound, or unlawful practice has occurred, is

26 occurring, or is about to occur; or (B) if a person is

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1 violating or is about to violate any law, rule, or written

2 agreement with the Secretary; and

3 (15) to enter into cooperative agreements with state

4 regulatory authorities of other states to provide for

5 examination of corporate offices or branches of those

6 states, participate in joint examinations with other

7 regulators, and to accept reports of the examinations: (A)

8 if the Secretary has reasonable cause to believe that an

9 unsafe, unsound, or unlawful practice has occurred, is

10 occurring, or is about to occur; or (B) if a person is

11 violating or is about to violate any law, rule, or written

12 agreement with the Secretary;

13 (16) to impose civil penalties of up to $200 per day

14 against a registrant for failing to respond to a

15 regulatory request or reporting requirement; and

16 (17) to enter into agreements in connection with a

17 multistate licensing system.

18 Section 40. 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 investigation. The

23 Secretary, or the Secretary's duly authorized representative,

24 may administer oaths and affirmations to any person.

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

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

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

3 in which the subpoenaed person resides or has its principal

4 place of business for an order requiring the subpoenaed person

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

6 court may grant injunctive relief restraining the person from

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

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

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

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

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

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

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

14 person has fully complied with the subpoena or subpoena duces

15 tecum and the Secretary has completed an investigation.

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

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

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

19 investigation, the Secretary, in addition to the other

20 remedies provided for in this Act, may, through the Attorney

21 General, apply for relief to the circuit court of the county in

22 which the subpoenaed person resides or has its principal place

23 of business. The court shall thereupon direct the issuance of

24 an order against the subpoenaed person requiring sufficient

25 bond conditioned on compliance with the subpoena or subpoena

26 duces tecum. The court shall cause to be endorsed on the order

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1 a suitable amount of bond or payment pursuant to which the

2 person named be freed, having a due regard to the nature of the

3 case.

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

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

6 the circuit court having jurisdiction over the person who has

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

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

9 subpoena duces tecum.

10 Section 45. Sales-based financing disclosure requirements.

11 A provider subject to this Act shall provide the following

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

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

14 sales-based financing:

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

16 if different from the financing amount, the disbursement

17 amount after any amount deducted or withheld at

18 disbursement.

19 (2) The finance charge.

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

21 words annual percentage rate or the abbreviation

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

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

24 of repayment and the projected periodic payment amounts.

25 The estimated term of repayment and the projected periodic

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1 payment amounts shall be calculated based on the

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

3 to as the projected sales volume. The projected sales

4 volume may be calculated using the historical method or

5 the underwriting method. The provider shall provide notice

6 to the Secretary on which method the provider intends to

7 use across all instances of sales-based financing offered

8 in calculating the estimated annual percentage rate under

9 this Section, according to the following:

10 (A) A provider using the historical method shall

11 use an average historical volume of sales or revenue

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

13 the estimated annual percentage rate is calculated.

14 The provider shall fix the historical time period used

15 to calculate the average historical volume and use the

16 period for all disclosure purposes for all sales-based

17 financing products offered. The fixed historical time

18 period shall either be the preceding time period from

19 the specific offer or, alternatively, the provider may

20 use average sales for the same number of months with

21 the highest sales volume within the previous 12

22 months. The fixed historical time period shall be no

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

24 (B) A provider using the underwriting method shall

25 determine the estimated annual percentage rate, the

26 estimated term, and the projected payments, using a

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1 projected sales volume that the provider elects for

2 each disclosure, if they participate in a review

3 process prescribed by the Secretary. A provider shall,

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

5 estimated annual percentage rates disclosed to the

6 recipient and actual retrospective annual percentage

7 rates of completed transactions. The report shall

8 contain the information as the Department may adopt by

9 rule as necessary or appropriate for the purpose of

10 making a determination of whether the deviation

11 between the estimated annual percentage rate and

12 actual retrospective annual percentage rates of

13 completed transactions was reasonable. The Secretary

14 shall establish the method of reporting and may, upon

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

16 provider has resulted in an unacceptable deviation

17 between estimated and actual annual percentage rate,

18 require the provider to use the historical method. The

19 Secretary may consider unusual and extraordinary

20 circumstances impacting the provider's deviation

21 between estimated and actual annual percentage rate in

22 the determination of the finding.

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

24 disbursement amount plus the finance charge.

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

26 required for the periodic payments, based on the projected

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

2 repaid.

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

4 volume:

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

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

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

8 monthly, the amount of the average projected payments

9 per month; or

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

11 payment schedule or a description of the method used

12 to calculate the amounts and frequency of payments and

13 the amount of the average projected payments per

14 month.

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

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

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

18 payment fees.

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

20 the commercial financing before full repayment, the

21 provider shall disclose:

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

23 any finance charges other than interest accrued since

24 their last payment; if so, disclosure of the

25 percentage of any unpaid portion of the finance charge

26 and maximum dollar amount the recipient could be

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1 required to pay; and

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

3 any additional fees not already included in the

4 finance charge.

5 (9) A description of collateral requirements or

6 security interests, if any.

7 Section 50. Commercial closed-end financing disclosure

8 requirements.

9 (a) A provider subject to this Act shall provide the

10 following disclosures to a recipient, in a manner prescribed

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

12 offer for closed-end financing:

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

14 if different from the financing amount, the disbursement

15 amount after any amount deducted or withheld at

16 disbursement.

17 (2) The finance charge.

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

19 annual percentage rate or the abbreviation "APR",

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

21 finance charges that cannot be avoided by a recipient.

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

23 disbursement amount plus the finance charge.

24 (5) The term of the financing.

25 (6) The payment amounts:

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

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

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

4 average monthly payment amount; or

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

6 payment schedule or a description of the method used

7 to calculate the amounts and frequency of payments,

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

9 estimated average monthly payment amount.

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

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

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

13 fees.

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

15 the commercial financing before full repayment, the

16 provider shall disclose:

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

18 any finance charges other than interest accrued since

19 their last payment; if so, disclosure of the

20 percentage of any unpaid portion of the finance charge

21 and maximum dollar amount the recipient could be

22 required to pay; and

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

24 any additional fees not already included in the

25 finance charge.

26 (9) A description of collateral requirements or

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1 security interests, if any.

2 (b) If an advance requires repayment in periodic

3 installments over time and does not qualify as sales-based

4 financing, then the advance qualifies as close-end financing

5 and shall satisfy the disclosure requirements of this Section.

6 Section 55. Open-end commercial financing disclosure

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

8 following disclosures to a recipient, in a manner prescribed

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

10 offer for open-end financing:

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

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

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

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

15 withheld at disbursement.

16 (2) The finance charge.

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

18 annual percentage rate or the abbreviation "APR",

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

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

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

22 recipient and the term resulting from making the minimum

23 required payments term as disclosed.

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

25 amount, less any fees deducted or withheld at

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1 disbursement, plus the finance charge. The total repayment

2 amount shall assume a draw amount equal to the maximum

3 amount of credit available to the recipient if drawn and

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

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

6 over which a draw is amortized.

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

8 assumptions used in the calculation of the annual

9 percentage rate, including a description of payment amount

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

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

12 average projected payments per month. For payment amounts

13 that are variable, the provider should include a payment

14 schedule or a description of the method used to calculate

15 the amounts and frequency of payments and the estimated

16 average monthly payment amount.

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

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

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

20 returned payment fees.

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

22 refinance the commercial financing before full repayment,

23 the provider shall disclose:

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

25 any finance charges other than interest accrued since

26 their last payment; if so, disclosure of the

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1 percentage of any unpaid portion of the finance charge

2 and maximum dollar amount the recipient could be

3 required to pay; and

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

5 any additional fees not already included in the

6 finance charge.

7 (9) A description of collateral requirements or

8 security interests, if any.

9 Section 60. Factoring transaction disclosure requirements.

10 A provider subject to this Act shall provide the following

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

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

13 for a factoring transaction:

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

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

16 price, the disbursement amount after any amount deducted

17 or withheld at disbursement.

18 (2) The finance charge.

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

20 term. To calculate the estimated annual percentage rate,

21 the purchase amount is considered the financing amount,

22 the purchase amount minus the finance charge is considered

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

24 payment due date of the receivables. As an alternate

25 method of establishing the term, the provider may estimate

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1 the term for a factoring transaction as the average

2 payment period based on its historical data over a period

3 not to exceed the previous 12 months, concerning payment

4 invoices paid by the party or parties owing the accounts

5 receivable in question.

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

7 amount plus the finance charge.

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

9 charges that can be avoided by the recipient.

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

11 additional collateral requirements or security interests.

12 Section 65. Other forms of financing disclosure

13 requirements. The Secretary may require disclosure by a

14 provider extending a specific offer of commercial financing

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

16 sales-based financing, or factoring transaction but otherwise

17 meets the definition of commercial financing. Subject to rules

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

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

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

21 specific offer of other forms of financing:

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

23 if different from the financing amount, the disbursement

24 amount after any fees deducted or withheld at

25 disbursement.

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1 (2) The finance charge.

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

3 annual percentage rate or the abbreviation "APR",

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

5 finance charges.

6 (4) The total repayment amount which is the

7 disbursement amount plus the finance charge.

8 (5) The term of the financing.

9 (6) The payment amounts:

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

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

12 monthly, and the average monthly payment amount; or

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

14 payment schedule or a description of the method used

15 to calculate the amounts and frequency of payments,

16 and the estimated average monthly payment amount.

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

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

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

20 fees.

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

22 the commercial financing before full repayment, the

23 provider shall disclose:

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

25 any finance charges other than interest accrued since

26 their last payment; if so, disclosure of the

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1 percentage of any unpaid portion of the finance charge

2 and maximum dollar amount the recipient could be

3 required to pay; and

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

5 any additional fees not already included in the

6 finance charge.

7 (9) A description of collateral requirements or

8 security interests, if any.

9 Section 70. Disclosure requirements for renewal financing.

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

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

12 existing commercial financing from the same provider, the

13 provider shall disclose:

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

15 used to pay off the portion of the existing commercial

16 financing that consists of prepayment charges required to

17 be paid and any unpaid interest expense that was not

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

19 the total repayment amount is calculated as a fixed

20 amount, the prepayment charge is equal to the original

21 finance charge multiplied by the amount of the renewal

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

23 total repayment amount, minus any portion of the total

24 repayment amount forgiven by the provider at the time of

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

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

2 renewal financing include any amount that is used to pay

3 unpaid finance charges or fees, also known as double

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

5 answer would be no."

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

7 down any unpaid portion of the outstanding balance, the

8 actual dollar amount by which the disbursement amount will

9 be reduced.

10 Section 75. Additional information. Nothing in this Act

11 shall prevent a provider from providing or disclosing

12 additional information on a commercial financing being offered

13 to a recipient, provided however, that the additional

14 information shall not be disclosed as part of the disclosure

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

16 disclosed or used in the application process of a commercial

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

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

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

20 rate, shall only be used to describe annualized percentage

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

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

23 recipient during an application process for commercial

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

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

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1 "APR".

2 Section 80. Commercial financing disclosure forms approved

3 for use in the other states. The Secretary may approve the use

4 of commercial financing disclosure forms approved for use in

5 other states with commercial financing disclosure requirements

6 that are substantially similar to or exceed the requirements

7 set forth in this Act, including the disclosure requirements

8 in Sections 45, 50, 55, 60, 65, and 70 of this Act.

9 Section 85. Violation of disclosure requirements. If the

10 Secretary finds that a provider who is required to register

11 with the Department according to this Act has violated any

12 disclosure requirements outlined in Sections 45, 50, 55, 60,

13 65, 70, and 75, that shall be considered a violation of this

14 Act separate from any other violation that may result from

15 operating without a registration as outlined in Section 95.

16 Section 90. Notification.

17 (a) A registrant must advise the Secretary in writing of

18 any changes to the information submitted on its most recent

19 registration or renewal of registration within 30 days after

20 the change.

21 (b) A registrant must advise the Secretary in writing that

22 the registrant has been disciplined, including denial of

23 licensure, by a licensing authority of this State or another

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1 state within 10 days after entry of the discipline.

2 Section 95. Disciplinary actions.

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

4 of the following penalties:

5 (1) revocation of registration;

6 (2) suspension of a registration subject to

7 reinstatement upon satisfying all reasonable conditions

8 the Secretary may specify;

9 (3) placement of the registrant or applicant on

10 probation for a period of time and subject to all

11 reasonable conditions as the Secretary may specify;

12 (4) imposition of civil monetary penalties not to

13 exceed $10,000 for each separate offense, but civil

14 penalties may not to exceed $50,000 for all violations

15 arising from the use of the same single transaction,

16 including for financing offers that are not consummated;

17 (5) restitution, refunds, or any other relief

18 necessary to protect recipients; and

19 (6) denial of a registration.

20 (b) Grounds for penalties include:

21 (1) if a registrant has violated or aided another to

22 violate any provision of this Act, any rule adopted by the

23 Secretary, or any other law, rule, or regulation of this

24 State, any other state, or the United States;

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

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1 violate any provision of this Act or any rule adopted by

2 the Secretary pursuant to this Act;

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

4 existed at the time of the original application for

5 registration, would have warranted the Secretary in

6 refusing issue the original registration;

7 (4) that a registrant 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 registration to an individual;

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

11 deceptive, or abusive business practices related to the

12 activity covered by this Act;

13 (6) that a registrant or an officer, director,

14 manager, operator, or principal of the registrant, or an

15 employee of the registrant engaged in the business of

16 commercial financing has been adjudicated guilty of a

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

18 the United States involving moral turpitude, abusive,

19 deceptive, fraudulent, or dishonest dealing;

20 (7) that a final judgment has been entered against

21 registrant or an officer, director, manager, operator, or

22 principal of the registrant, or an employee of the

23 registrant engaged in the business of commercial financing

24 in a civil action upon grounds of abusive conduct,

25 conversion, fraud, misrepresentation, or deceit;

26 (8) that an applicant made a material misstatement in

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1 the applicant's application for registration or any other

2 communication to the Secretary;

3 (9) that a person has demonstrated, by course of

4 conduct, negligence or incompetence in performing any act

5 for which it is required to hold a registration under this

6 Act;

7 (10) that a person has failed to advise the Secretary

8 in writing of any changes to the information submitted on

9 the person's most recent registration or renewal of

10 registration within 30 days after the change;

11 (11) that a registrant had a license, registration, or

12 the equivalent, to practice any profession, occupation,

13 other industry or activity requiring licensure revoked,

14 suspended, disciplined, or otherwise acted against,

15 including the denial of licensure by a licensing authority

16 of this State or another state, territory, or country for

17 fraud, dishonest dealing, misrepresentations,

18 incompetence, conversion, any act of moral turpitude or

19 any other grounds that would constitute grounds for

20 discipline under this Act;

21 (12) that a person registered under this Act failed to

22 timely notify the Secretary that the person has been

23 disciplined, including denial of licensure, by a licensing

24 authority of this State or another state as required under

25 subsection (b) of Section 90;

26 (13) that a person engaged in activities regulated by

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1 this Act without a current, active registration unless

2 specifically exempted by this Act;

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

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

5 (15) that a person refused, obstructed, evaded, or

6 unreasonably delayed an investigation or information

7 request authorized under this Act, or refused, obstructed,

8 evaded, or unreasonably delayed compliance with the

9 Secretary's subpoena or subpoena duces tecum.

10 (c) No registration shall be suspended or revoked, except

11 as provided in this Section, nor shall any person be assessed a

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

13 (d) The Secretary may suspend any registration for a

14 period not exceeding 180 days pending investigation for good

15 cause shown that an emergency exists.

16 (e) No revocation, suspension, or surrender of any

17 registration shall impair or affect the obligation of any

18 preexisting lawful contract between the registrant and any

19 person. The Secretary's approval of a registrant's application

20 to surrender its registration shall not affect the

21 registrant's civil or criminal liability for acts committed

22 prior to surrender. Surrender of a registration does not

23 entitle the registrant to a return of any part of the

24 registration fee.

25 (f) Every registration issued under this Act shall remain

26 in force and effect until the registration expires, is

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1 surrendered, is revoked, or is suspended in accordance with

2 the provisions of this Act. The Secretary shall have authority

3 to reinstate a suspended registration or to issue a new

4 registration to a registrant whose registration has been

5 revoked or surrendered if no fact or condition then exists

6 which would have warranted the Secretary in refusing

7 originally to issue that registration under this Act.

8 (g) Whenever the Secretary imposes discipline authorized

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

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

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

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

13 the order personally or by certified mail. Service by

14 certified mail shall be deemed completed when the notice is

15 deposited in the U.S. Mail.

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

17 or suspending a registration, or an order denying renewal of a

18 registration shall take effect upon service of the order

19 unless the registrant serves the Department with a written

20 request for a hearing in the manner required by the order

21 within 10 days after the date of service of the order. If a

22 person requests a hearing, the order shall be stayed from its

23 date of service until the Department enters a final

24 administrative order. Hearings shall be conducted as follows:

25 (1) If the registrant requests a hearing, then the

26 Secretary shall schedule a hearing within 90 days after

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1 the request for a hearing unless otherwise agreed to by

2 the parties.

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

4 designated by the Secretary. The Secretary and any

5 administrative law judge designated by the Secretary shall

6 have the power to administer oaths and affirmations,

7 subpoena witnesses and compel their attendance, take

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

9 correspondence, and other records or information that they

10 consider relevant or material to the inquiry.

11 (i) The costs of administrative hearings conducted under

12 this Section shall be paid by the registrant or other person

13 subject to the hearing.

14 (j) Registrants and other persons subject to this Act

15 shall be subject to the disciplinary actions specified in this

16 Act for any violations conducted by any officer, director,

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

18 limited to, ultimate equitable owner.

19 Section 100. Investigation of complaints. The Secretary

20 may investigate any complaints and inquiries made concerning

21 this Act and any registrants or persons the Secretary believes

22 may be required to register under this Act. Each registrant or

23 person the Secretary believes may be required to register

24 under this Act shall open the registrant's or person's books,

25 records, documents, and offices wherever situated to the

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1 Secretary as needed to facilitate the investigations.

2 Section 105. Additional investigation authority. In

3 addition to any authority allowed under this Act, the

4 Secretary may conduct investigations as follows:

5 (1) For purposes of initial registration, registration

6 renewal, registration suspension, registration

7 conditioning, registration probation, registration

8 revocation or termination, or general or specific inquiry

9 or investigation to determine compliance with this Act,

10 the Secretary may access, receive, and use any books,

11 accounts, records, files, documents, information, or

12 evidence, including, but not limited to, the following:

13 (A) criminal, civil, registration, and

14 administrative history information, including

15 nonconviction data as specified in the Criminal Code

16 of 2012; (B) personal history and experience

17 information, including independent credit reports

18 obtained from a consumer reporting agency described in

19 Section 603(p) of the federal Fair Credit Reporting

20 Act; and (C) any other documents, information, or

21 evidence the Secretary deems relevant to the inquiry

22 or investigation, regardless of the location,

23 possession, control, or custody of the documents,

24 information, or evidence.

25 (2) For the purposes of investigating violations or

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1 complaints arising under this Act, the Secretary may

2 review or investigate any registrant or person subject to

3 this Act as necessary in order to carry out the purposes of

4 this Act. The Secretary may direct, subpoena, or order the

5 attendance of, and examine under oath all persons and

6 order any person to produce records, files, and any other

7 documents the Secretary deems relevant to an inquiry.

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

9 available to the Secretary upon request the books and

10 records relating to the operations of the person subject

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

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

13 principals, employees, independent contractors, agents,

14 vendors, and customers of any registrant or person subject

15 to this Act.

16 (4) In making any investigation authorized by this

17 Act, the Secretary may control access to any documents and

18 records of the registrant or person under investigation.

19 The Secretary may take possession of the documents and

20 records or otherwise take constructive control of the

21 documents. During the period of control, no person shall

22 remove or alter any of the documents or records, except

23 pursuant to a court order or with the consent of the

24 Secretary. Unless the Secretary has reasonable grounds to

25 believe the documents or records of the registrant have

26 been or are at risk of being altered or destroyed for

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1 purposes of concealing a violation of this Act, the

2 registrant or owner of the documents and records shall

3 have access to the documents or records as necessary to

4 conduct its ordinary business affairs.

5 (5) In order to carry out the purposes of this

6 Section, the Secretary may:

7 (A) retain attorneys, accountants, or other

8 professionals and specialists as auditors or

9 investigators to conduct or assist in the conduct of

10 investigations;

11 (B) enter into agreements or relationships with

12 other government officials or regulatory associations

13 to protect consumers or financing recipients, improve

14 efficiencies, and reduce regulatory burden by sharing

15 resources, standardized or uniform methods or

16 procedures, and documents, records, information, or

17 evidence obtained under this Section;

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

19 privately available analytical systems, methods, or

20 software or investigate the registrant or person

21 subject to this Act;

22 (D) accept and rely on examination or

23 investigation reports made by other government

24 officials, within or outside this State; or

25 (E) accept audit reports made by an independent

26 certified public accountant for the person subject to

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1 this Act and may incorporate the audit report in the

2 report of the investigation or other writing of the

3 Secretary.

4 (6) The authority of this Section shall remain in

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

6 claims to act under any licensing or registration law of

7 this State or claims to act without the authority.

8 (7) No registrant or person subject to investigation

9 or under this Section may knowingly withhold, alter,

10 abstract, remove, mutilate, destroy, hide, or conceal any

11 books, records, computer records, or other information or

12 take actions designed to delay or complicate review of

13 records.

14 Section 110. Confidentiality. To promote more effective

15 regulation, protect consumers and financing recipients, and

16 reduce regulatory burden through inter-regulatory sharing of

17 confidential supervisory information:

18 (1) The privacy or confidentiality of any information

19 or material provided to a multistate licensing system,

20 including all privileges arising under federal or state

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

22 information or material after the information or material

23 has been disclosed to the multistate licensing system.

24 Information and material may be shared with a multistate

25 licensing system, federal and state regulatory officials

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1 with relevant oversight authority, and law enforcement

2 without the loss of privilege or the loss of

3 confidentiality protections.

4 (2) The Secretary is authorized to enter into

5 agreements or sharing arrangements with other governmental

6 agencies, the Conference of State Bank Supervisors, and

7 other associations representing governmental agencies.

8 (3) Information or material that is privileged or

9 confidential under this Act as determined by the Secretary

10 is not subject to the following:

11 (A) disclosure under any State law governing the

12 disclosure to the public of information held by an

13 officer or an agency of the State; or

14 (B) subpoena, discovery, or admission into

15 evidence, in any private civil action or

16 administrative process except as authorized by the

17 Secretary.

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

19 confidential supervisory information that is inconsistent

20 with this Act shall be superseded by the requirements of

21 this Section to the extent the other law provides less

22 confidentiality or a weaker privilege for information that

23 is privileged or confidential under this Act.

24 (5) Confidential or privileged information received

25 from a multistate licensing system, another licensing

26 body, federal and state regulatory officials, or law

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1 enforcement shall be protected to the same extent as the

2 Secretary's confidential and privileged information is

3 protected under this Act. The Secretary may also protect

4 from disclosure confidential or privileged information

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

6 held directly by the multistate licensing system, another

7 licensing body, federal and state regulatory officials, or

8 law enforcement.

9 Section 115. Appeal and review.

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

11 Administrative Procedure Act, adopt rules to provide for

12 review within the Department of their decisions affecting the

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

14 for, at a minimum:

15 (1) appointment of a hearing officer;

16 (2) appropriate procedural rules, specific deadlines

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

18 (3) provisions for apportioning costs among parties to

19 the appeal.

20 (b) All final agency determinations of appeals to

21 decisions of the Secretary may be reviewed in accordance with

22 and under the provisions of the Administrative Review Law.

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

24 in review of any final administrative decision of the

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

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1 Secretary may be taken as in other civil cases.

2 Section 120. Registration fees.

3 (a) The fee for initial registration is $2,500. The fee is

4 nonrefundable.

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

6 fee is nonrefundable.

7 (c) The Department shall impose a contingent fee

8 sufficient to cover its operating expenses in administering

9 this Act not otherwise covered by all other revenue collected

10 under this Act. Each registrant shall pay to the Division its

11 pro rata share, based on number or volume of transactions or

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

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

14 Division, for the current year and any deficit actually

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

16 Section 125. Cease and desist order.

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

18 registrant or person doing business without the required

19 registration when, in the opinion of the Secretary, the

20 registrant or other person has violated, is violating, or is

21 about to violate any provision of this Act or any rule adopted

22 by the Department under this Act or any requirement imposed in

23 writing by the Department as a condition of granting any

24 authorization permitted by this Act. The cease and desist

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

2 hearing.

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

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

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

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

7 include a statement of the reasons for the action.

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

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

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

11 preliminary hearing within 60 days after the request for a

12 hearing unless the parties agree to a later date.

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

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

15 may issue the orders as may be reasonably necessary to

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

17 the order and resulting harms.

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

19 additional to all other powers and remedies vested in the

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

21 construed as requiring that the Secretary shall employ the

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

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

24 in the Secretary.

25 Section 130. Injunctions. The Secretary may maintain an

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1 action in the name of the people of this State and may apply

2 for an injunction in the circuit court to enjoin a person from

3 violating this Act or its implementing rules through the

4 Attorney General.

5 Section 135. Exemptions. This Act does not apply to, and

6 does not place any additional requirements or obligations

7 upon, any of the following:

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

9 (2) a commercial financing transaction secured by real

10 property;

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

12 Uniform Commercial Code, not including finance leases as

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

14 2A-103 of the Uniform Commercial Code; or

15 (4) a company primarily in the business of

16 manufacturing equipment, or any subsidiary or affiliate of

17 such a company, when offering a commercial financing

18 transaction for which the majority of the proceeds are

19 used to finance nonfinancial products manufactured by the

20 company, or any subsidiary or affiliate of such a company,

21 or the maintenance of or other services on such products;

22 (5) any person or provider who makes no more than 5

23 commercial financing transactions in this State in a

24 12-month period;

25 (6) a single, discrete commercial financing

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

2 (7) a commercial financing transaction in which the

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

4 5-102 of the Illinois Vehicle Code, an affiliate of a

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

6 of the Renter's Financial Responsibility and Protection

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

8 financing agreement or commercial open-end credit plan of

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

10 a commercial financing transaction.

11 Section 140. Complaint disclosure. All commercial

12 financing shall include a clear and conspicuous notice on how

13 to file a complaint with the Department.

14 Section 145. Rules. The Secretary may adopt rules to enact

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

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

17 may be necessary and appropriate to interpret and

18 implement the provisions of this Act;

19 (2) rules for the enforcement and administration of

20 this Act;

21 (3) rules for the protection of consumers and

22 recipients in this State;

23 (4) rules defining improper or fraudulent business

24 practices in connection with commercial financing; and

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1 (5) rules to implement Section 165.

2 Section 150. Violations.

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

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

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

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

7 practice in violation of the Consumer Fraud and Deceptive

8 Business Practices Act. The Attorney General may enforce a

9 violation of this Act as an unlawful practice under the

10 Consumer Fraud and Deceptive Business Practices Act.

11 Section 152. Limitation on liability. No provision of this

12 Act imposes any liability on a provider as a result of the

13 actual annual percentage rate charged by a provider differing

14 from the estimated annual percentage rate disclosed in

15 conformity with any regulation, order, or written interpretive

16 opinion of the Secretary or any such opinion of the Attorney

17 General, whether or not such regulation, order, or written

18 interpretive opinion is later amended, rescinded, or repealed

19 or determined by judicial or other authority to be invalid for

20 any reason.

21 Section 155. Beginning of registration. No person shall be

22 required to register under this Act before the date

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

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1 before January 1, 2025.

2 Section 160. Beginning of disclosure requirements. No

3 person shall be required to comply with the disclosure

4 requirements set forth in Sections 45, 50, 55, 60, 65, 70, and

5 165 before the date established by the Department by rule. The

6 date shall not be before January 1, 2025.

7 Section 165. Commercial financing database.

8 (a) A commercial financing database program is established

9 within the Department. The program shall be administered in

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

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

12 imposed until 6 months after the Department certifies a

13 commercial financing database under subsection (b). The

14 program shall apply to all sales-based financings and

15 commercial closed-end financings for which interest charges

16 that accrue on the outstanding balance represent a minority of

17 the finance charge that are governed by this Act and that are

18 made or taken on or after the inception of the program.

19 (b) The Department shall certify that a commercial

20 financing database is a commercially reasonable method of

21 reporting. Upon certifying that a commercial financing

22 database is a commercially reasonable method of reporting, the

23 Department shall:

24 (1) provide reasonable notice to all registrants

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1 identifying the commercially reasonable method of

2 reporting that is available; and

3 (2) no earlier than 6 months after certification,

4 require each registrant offering sales-based financing or

5 commercial closed-end financings for which interest

6 charges that accrue on the outstanding balance represent a

7 minority of the finance charge to use a commercially

8 reasonable method of reporting as a means of complying

9 with subsection (d) of this Section.

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

11 maintained and administered by the Department. The database

12 shall be designed to allow providers to submit information to

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

14 allow providers to retrieve information from the database,

15 except as otherwise provided in this Act.

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

17 the provider shall submit to the commercial financing database

18 the information delineated in subsections (e) and (f). If at

19 the time funds are provided to a recipient, certain

20 information delineated in this subsection is not known, then

21 the provider shall submit the information to the commercial

22 financing database within 30 days after the information

23 becoming ascertainable.

24 (e) For sales-based financings, the provider shall submit

25 the following information to the commercial financing

26 database:

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1 (1) the FEIN for the recipient;

2 (2) the zip code of the recipient;

3 (3) the date on which the disclosure required under

4 Section 45 was provided;

5 (4) the origination date of the sales-based financing;

6 (5) the total amount of commercial financing;

7 (6) the disbursed amount after any amount deducted or

8 withheld at disbursement, if different than the financing

9 amount;

10 (7) the finance charge;

11 (8) the estimated annual percentage rate as disclosed

12 to the recipient under paragraph (3) of Section 45;

13 (9) the total repayment amount;

14 (10) the estimated term, as disclosed to the recipient

15 under paragraph (5) of Section 45;

16 (11) the percentage of the recipient's sales upon

17 which the payment is calculated;

18 (12) the frequency of payment, and the total amount of

19 average projected payments per month, as disclosed to the

20 recipient under paragraph (6) of Section 45;

21 (13) whether the projected sales volume used to

22 determine the estimated annual percentage rate, estimated

23 term, and projected payments provided in the disclosure

24 under Section 45 were determined according to the

25 historical method described in subparagraph (A) of

26 paragraph (3) of Section 45 or according to the

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1 underwriting method described in subparagraph (B) of

2 paragraph (3) of Section 45;

3 (14) the amount of any finance charge the recipient

4 would be required to pay if the recipient elects to pay off

5 or refinance the sales-based financing before full

6 repayment, as disclosed to the recipient;

7 (15) description of collateral, if any, securing the

8 sales-based financing, including any guarantee;

9 (16) the position of any lien taken;

10 (17) upon full repayment, if the sales-based financing

11 includes a true-up mechanism, the number of true-ups

12 provided;

13 (18) upon full repayment, the actual term of the

14 commercial financing;

15 (19) upon full repayment, the actual annual percentage

16 rate calculated retrospectively based on the actual

17 payments collected; and

18 (20) all other information requested by the

19 Department.

20 (f) For closed-end financing for which interest charges

21 that accrue on the outstanding balance represent a minority of

22 the finance charge submit, the following information to the

23 commercial financing database:

24 (1) the FEIN for the recipient;

25 (2) the zip code of the recipient;

26 (3) the date on which the disclosure required under

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1 Section 50 was provided;

2 (4) the origination date;

3 (5) the total amount of commercial financing;

4 (6) the disbursed amount after any amount deducted or

5 withheld at disbursement, if different than the financing

6 amount;

7 (7) the finance charge;

8 (8) the annual percentage rate as disclosed to the

9 recipient under paragraph (3) of Section 50;

10 (9) the total repayment amount;

11 (10) the term of the financing;

12 (11) the frequency of payment;

13 (12) the amount of the payment, and the total amount

14 of average projected payments per month, as disclosed to

15 the recipient under paragraph (6) of Section 50;

16 (13) the amount of any finance charge the recipient

17 would be required to pay if the recipient elects to pay off

18 or refinance the commercial financing before full

19 repayment, other than interest accrued since the last

20 payment, as disclosed to the recipient;

21 (14) whether the recipient would be required to pay

22 any additional fees not already included in the finance

23 charge if the recipient elects to pay off or refinance the

24 commercial financing before full repayment, as disclosed

25 to the recipient;

26 (15) description of collateral, if any, securing the

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1 commercial financing, including any guarantee;

2 (16) the position of any lien taken; and

3 (17) all other information requested by the

4 Department.

5 (g) All personally identifiable information and

6 information identifying the identity of a recipient obtained

7 by way of the commercial financing database is strictly

8 confidential and shall be exempt from disclosure under the

9 Freedom of Information Act and any other law or regulation

10 pertaining to the disclosure of information or documents. The

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

12 information the disclosure of which would be contrary to the

13 public interest. Any request for production of information

14 from the commercial financing database, whether by subpoena,

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

16 Department. Any recipient may authorize in writing the release

17 of database information. The Department may use the

18 information in the database without the consent of the

19 recipient or the registrant:

20 (1) for the purposes of administering and enforcing

21 the program;

22 (2) to prepare industry-level reports;

23 (3) to provide information to the appropriate law

24 enforcement agency or the applicable administrative or

25 regulatory agency with a legitimate interest in the

26 information as determined by the Secretary;

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

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

3 not contrary to the public interest.

4 (h) A registrant who submits information to a certified

5 database provider in accordance with this Section shall not be

6 liable to any person for any subsequent release or disclosure

7 of that information by the certified database provider, the

8 Department, or any other person acquiring possession of the

9 information, regardless of whether the subsequent release or

10 disclosure was lawful, authorized, or intentional.

11 (i) In certifying a commercially reasonable method of

12 reporting, the Department shall ensure that the commercial

13 financing database:

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

15 connection;

16 (2) is accessible to the Department and to registrants

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

18 provide any other information that the Department deems

19 necessary;

20 (3) requires registrants to input whatever information

21 is required by the Department;

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

23 reporting information that is available to the Department

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

25 (5) contains safeguards to ensure that all information

26 contained in the database regarding consumers and

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1 financing recipients is kept strictly confidential.

2 (j) The certified commercial financing database may charge

3 a fee to a registrant not to exceed $1 for each financing

4 entered into the database. The certified commercial financing

5 database shall not charge any additional fees or charges.

6 (k) The certified commercial financing database provider

7 shall produce an annual report for the Department using the

8 data submitted by registrants to the database. The Department

9 may publish this report to the public.

10 Section 170. Severability. The provisions of this Act are

11 severable under Section 1.31 of the Statute on Statutes.

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

13 changing Section 7.5 as follows:

14 (5 ILCS 140/7.5)

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

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

17 by the statutes referenced below, the following shall be

18 exempt from inspection and copying:

19 (a) All information determined to be confidential

20 under Section 4002 of the Technology Advancement and

21 Development Act.

22 (b) Library circulation and order records identifying

23 library users with specific materials under the Library

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1 Records Confidentiality Act.

2 (c) Applications, related documents, and medical

3 records received by the Experimental Organ Transplantation

4 Procedures Board and any and all documents or other

5 records prepared by the Experimental Organ Transplantation

6 Procedures Board or its staff relating to applications it

7 has received.

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

9 Public Health and its authorized representatives relating

10 to known or suspected cases of sexually transmissible

11 disease or any information the disclosure of which is

12 restricted under the Illinois Sexually Transmissible

13 Disease Control Act.

14 (e) Information the disclosure of which is exempted

15 under Section 30 of the Radon Industry Licensing Act.

16 (f) Firm performance evaluations under Section 55 of

17 the Architectural, Engineering, and Land Surveying

18 Qualifications Based Selection Act.

19 (g) Information the disclosure of which is restricted

20 and exempted under Section 50 of the Illinois Prepaid

21 Tuition Act.

22 (h) Information the disclosure of which is exempted

23 under the State Officials and Employees Ethics Act, and

24 records of any lawfully created State or local inspector

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

26 obtained by an Executive Inspector General's office under

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1 that Act.

2 (i) Information contained in a local emergency energy

3 plan submitted to a municipality in accordance with a

4 local emergency energy plan ordinance that is adopted

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

6 (j) Information and data concerning the distribution

7 of surcharge moneys collected and remitted by carriers

8 under the Emergency Telephone System Act.

9 (k) Law enforcement officer identification information

10 or driver identification information compiled by a law

11 enforcement agency or the Department of Transportation

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

13 (l) Records and information provided to a residential

14 health care facility resident sexual assault and death

15 review team or the Executive Council under the Abuse

16 Prevention Review Team Act.

17 (m) Information provided to the predatory lending

18 database created pursuant to Article 3 of the Residential

19 Real Property Disclosure Act, except to the extent

20 authorized under that Article.

21 (n) Defense budgets and petitions for certification of

22 compensation and expenses for court appointed trial

23 counsel as provided under Sections 10 and 15 of the

24 Capital Crimes Litigation Act (repealed). This subsection

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

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

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1 death penalty prior to trial or sentencing.

2 (o) Information that is prohibited from being

3 disclosed under Section 4 of the Illinois Health and

4 Hazardous Substances Registry Act.

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

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

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

8 Department of Transportation under Sections 2705-300 and

9 2705-616 of the Department of Transportation Law of the

10 Civil Administrative Code of Illinois, the Regional

11 Transportation Authority under Section 2.11 of the

12 Regional Transportation Authority Act, or the St. Clair

13 County Transit District under the Bi-State Transit Safety

14 Act (repealed).

15 (q) Information prohibited from being disclosed by the

16 Personnel Record Review Act.

17 (r) Information prohibited from being disclosed by the

18 Illinois School Student Records Act.

19 (s) Information the disclosure of which is restricted

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

21 (t) (Blank).

22 (u) Records and information provided to an independent

23 team of experts under the Developmental Disability and

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

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

26 for or received Firearm Owner's Identification Cards under

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1 the Firearm Owners Identification Card Act or applied for

2 or received a concealed carry license under the Firearm

3 Concealed Carry Act, unless otherwise authorized by the

4 Firearm Concealed Carry Act; and databases under the

5 Firearm Concealed Carry Act, records of the Concealed

6 Carry Licensing Review Board under the Firearm Concealed

7 Carry Act, and law enforcement agency objections under the

8 Firearm Concealed Carry Act.

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

10 Card Review Board that are exempted from disclosure under

11 Section 10 of the Firearm Owners Identification Card Act.

12 (w) Personally identifiable information which is

13 exempted from disclosure under subsection (g) of Section

14 19.1 of the Toll Highway Act.

15 (x) Information which is exempted from disclosure

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

17 8-11-21 of the Illinois Municipal Code.

18 (y) Confidential information under the Adult

19 Protective Services Act and its predecessor enabling

20 statute, the Elder Abuse and Neglect Act, including

21 information about the identity and administrative finding

22 against any caregiver of a verified and substantiated

23 decision of abuse, neglect, or financial exploitation of

24 an eligible adult maintained in the Registry established

25 under Section 7.5 of the Adult Protective Services Act.

26 (z) Records and information provided to a fatality

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1 review team or the Illinois Fatality Review Team Advisory

2 Council under Section 15 of the Adult Protective Services

3 Act.

4 (aa) Information which is exempted from disclosure

5 under Section 2.37 of the Wildlife Code.

6 (bb) Information which is or was prohibited from

7 disclosure by the Juvenile Court Act of 1987.

8 (cc) Recordings made under the Law Enforcement

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

10 authorized under that Act.

11 (dd) Information that is prohibited from being

12 disclosed under Section 45 of the Condominium and Common

13 Interest Community Ombudsperson Act.

14 (ee) Information that is exempted from disclosure

15 under Section 30.1 of the Pharmacy Practice Act.

16 (ff) Information that is exempted from disclosure

17 under the Revised Uniform Unclaimed Property Act.

18 (gg) Information that is prohibited from being

19 disclosed under Section 7-603.5 of the Illinois Vehicle

20 Code.

21 (hh) Records that are exempt from disclosure under

22 Section 1A-16.7 of the Election Code.

23 (ii) Information which is exempted from disclosure

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

25 the Civil Administrative Code of Illinois.

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

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1 submitted to the Department of Labor by registering day

2 and temporary labor service agencies but are exempt from

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

4 and Temporary Labor Services Act.

5 (kk) Information prohibited from disclosure under the

6 Seizure and Forfeiture Reporting Act.

7 (ll) Information the disclosure of which is restricted

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

9 Aid Code.

10 (mm) Records that are exempt from disclosure under

11 Section 4.2 of the Crime Victims Compensation Act.

12 (nn) Information that is exempt from disclosure under

13 Section 70 of the Higher Education Student Assistance Act.

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

15 arising out of a peer support counseling session

16 prohibited from disclosure under the First Responders

17 Suicide Prevention Act.

18 (pp) Names and all identifying information relating to

19 an employee of an emergency services provider or law

20 enforcement agency under the First Responders Suicide

21 Prevention Act.

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

23 Public Health and its authorized representatives collected

24 under the Reproductive Health Act.

25 (rr) Information that is exempt from disclosure under

26 the Cannabis Regulation and Tax Act.

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

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

3 Human Rights Act.

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

5 Center Act, except to the extent authorized under that

6 Act.

7 (uu) Information that is exempt from disclosure under

8 Section 50 of the Sexual Assault Evidence Submission Act.

9 (vv) Information that is exempt from disclosure under

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

11 Public Aid Code.

12 (ww) Information that is exempt from disclosure under

13 Section 16.8 of the State Treasurer Act.

14 (xx) Information that is exempt from disclosure or

15 information that shall not be made public under the

16 Illinois Insurance Code.

17 (yy) Information prohibited from being disclosed under

18 the Illinois Educational Labor Relations Act.

19 (zz) Information prohibited from being disclosed under

20 the Illinois Public Labor Relations Act.

21 (aaa) Information prohibited from being disclosed

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

23 (bbb) Information that is prohibited from disclosure

24 by the Illinois Police Training Act and the Illinois State

25 Police Act.

26 (ccc) Records exempt from disclosure under Section

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1 2605-304 of the Illinois State Police Law of the Civil

2 Administrative Code of Illinois.

3 (ddd) Information prohibited from being disclosed

4 under Section 35 of the Address Confidentiality for

5 Victims of Domestic Violence, Sexual Assault, Human

6 Trafficking, or Stalking Act.

7 (eee) Information prohibited from being disclosed

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

9 Violence Fatality Review Act.

10 (fff) Images from cameras under the Expressway Camera

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

12 July 1, 2025.

13 (ggg) Information prohibited from disclosure under

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

15 Agency Licensing Act.

16 (hhh) Information submitted to the Illinois State

17 Police in an affidavit or application for an assault

18 weapon endorsement, assault weapon attachment endorsement,

19 .50 caliber rifle endorsement, or .50 caliber cartridge

20 endorsement under the Firearm Owners Identification Card

21 Act.

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

23 the School Safety Drill Act.

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

25 Section 30 of the Insurance Data Security Law.

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

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1 prohibited from disclosure under Section 45 of the Paint

2 Stewardship Act.

3 (lll) (Reserved).

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

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

6 Illinois Power Agency Act.

7 (nnn) Information exempt from disclosure under Section

8 165 of the Small Business Financing Transparency Act.

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

10 102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.

11 8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;

12 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.

13 6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,

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

15 revised 1-2-24.)

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

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

18 by the statutes referenced below, the following shall be

19 exempt from inspection and copying:

20 (a) All information determined to be confidential

21 under Section 4002 of the Technology Advancement and

22 Development Act.

23 (b) Library circulation and order records identifying

24 library users with specific materials under the Library

25 Records Confidentiality Act.

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1 (c) Applications, related documents, and medical

2 records received by the Experimental Organ Transplantation

3 Procedures Board and any and all documents or other

4 records prepared by the Experimental Organ Transplantation

5 Procedures Board or its staff relating to applications it

6 has received.

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

8 Public Health and its authorized representatives relating

9 to known or suspected cases of sexually transmissible

10 disease or any information the disclosure of which is

11 restricted under the Illinois Sexually Transmissible

12 Disease Control Act.

13 (e) Information the disclosure of which is exempted

14 under Section 30 of the Radon Industry Licensing Act.

15 (f) Firm performance evaluations under Section 55 of

16 the Architectural, Engineering, and Land Surveying

17 Qualifications Based Selection Act.

18 (g) Information the disclosure of which is restricted

19 and exempted under Section 50 of the Illinois Prepaid

20 Tuition Act.

21 (h) Information the disclosure of which is exempted

22 under the State Officials and Employees Ethics Act, and

23 records of any lawfully created State or local inspector

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

25 obtained by an Executive Inspector General's office under

26 that Act.

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1 (i) Information contained in a local emergency energy

2 plan submitted to a municipality in accordance with a

3 local emergency energy plan ordinance that is adopted

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

5 (j) Information and data concerning the distribution

6 of surcharge moneys collected and remitted by carriers

7 under the Emergency Telephone System Act.

8 (k) Law enforcement officer identification information

9 or driver identification information compiled by a law

10 enforcement agency or the Department of Transportation

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

12 (l) Records and information provided to a residential

13 health care facility resident sexual assault and death

14 review team or the Executive Council under the Abuse

15 Prevention Review Team Act.

16 (m) Information provided to the predatory lending

17 database created pursuant to Article 3 of the Residential

18 Real Property Disclosure Act, except to the extent

19 authorized under that Article.

20 (n) Defense budgets and petitions for certification of

21 compensation and expenses for court appointed trial

22 counsel as provided under Sections 10 and 15 of the

23 Capital Crimes Litigation Act (repealed). This subsection

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

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

26 death penalty prior to trial or sentencing.

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1 (o) Information that is prohibited from being

2 disclosed under Section 4 of the Illinois Health and

3 Hazardous Substances Registry Act.

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

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

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

7 Department of Transportation under Sections 2705-300 and

8 2705-616 of the Department of Transportation Law of the

9 Civil Administrative Code of Illinois, the Regional

10 Transportation Authority under Section 2.11 of the

11 Regional Transportation Authority Act, or the St. Clair

12 County Transit District under the Bi-State Transit Safety

13 Act (repealed).

14 (q) Information prohibited from being disclosed by the

15 Personnel Record Review Act.

16 (r) Information prohibited from being disclosed by the

17 Illinois School Student Records Act.

18 (s) Information the disclosure of which is restricted

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

20 (t) (Blank).

21 (u) Records and information provided to an independent

22 team of experts under the Developmental Disability and

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

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

25 for or received Firearm Owner's Identification Cards under

26 the Firearm Owners Identification Card Act or applied for

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1 or received a concealed carry license under the Firearm

2 Concealed Carry Act, unless otherwise authorized by the

3 Firearm Concealed Carry Act; and databases under the

4 Firearm Concealed Carry Act, records of the Concealed

5 Carry Licensing Review Board under the Firearm Concealed

6 Carry Act, and law enforcement agency objections under the

7 Firearm Concealed Carry Act.

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

9 Card Review Board that are exempted from disclosure under

10 Section 10 of the Firearm Owners Identification Card Act.

11 (w) Personally identifiable information which is

12 exempted from disclosure under subsection (g) of Section

13 19.1 of the Toll Highway Act.

14 (x) Information which is exempted from disclosure

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

16 8-11-21 of the Illinois Municipal Code.

17 (y) Confidential information under the Adult

18 Protective Services Act and its predecessor enabling

19 statute, the Elder Abuse and Neglect Act, including

20 information about the identity and administrative finding

21 against any caregiver of a verified and substantiated

22 decision of abuse, neglect, or financial exploitation of

23 an eligible adult maintained in the Registry established

24 under Section 7.5 of the Adult Protective Services Act.

25 (z) Records and information provided to a fatality

26 review team or the Illinois Fatality Review Team Advisory

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1 Council under Section 15 of the Adult Protective Services

2 Act.

3 (aa) Information which is exempted from disclosure

4 under Section 2.37 of the Wildlife Code.

5 (bb) Information which is or was prohibited from

6 disclosure by the Juvenile Court Act of 1987.

7 (cc) Recordings made under the Law Enforcement

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

9 authorized under that Act.

10 (dd) Information that is prohibited from being

11 disclosed under Section 45 of the Condominium and Common

12 Interest Community Ombudsperson Act.

13 (ee) Information that is exempted from disclosure

14 under Section 30.1 of the Pharmacy Practice Act.

15 (ff) Information that is exempted from disclosure

16 under the Revised Uniform Unclaimed Property Act.

17 (gg) Information that is prohibited from being

18 disclosed under Section 7-603.5 of the Illinois Vehicle

19 Code.

20 (hh) Records that are exempt from disclosure under

21 Section 1A-16.7 of the Election Code.

22 (ii) Information which is exempted from disclosure

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

24 the Civil Administrative Code of Illinois.

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

26 submitted to the Department of Labor by registering day

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1 and temporary labor service agencies but are exempt from

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

3 and Temporary Labor Services Act.

4 (kk) Information prohibited from disclosure under the

5 Seizure and Forfeiture Reporting Act.

6 (ll) Information the disclosure of which is restricted

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

8 Aid Code.

9 (mm) Records that are exempt from disclosure under

10 Section 4.2 of the Crime Victims Compensation Act.

11 (nn) Information that is exempt from disclosure under

12 Section 70 of the Higher Education Student Assistance Act.

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

14 arising out of a peer support counseling session

15 prohibited from disclosure under the First Responders

16 Suicide Prevention Act.

17 (pp) Names and all identifying information relating to

18 an employee of an emergency services provider or law

19 enforcement agency under the First Responders Suicide

20 Prevention Act.

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

22 Public Health and its authorized representatives collected

23 under the Reproductive Health Act.

24 (rr) Information that is exempt from disclosure under

25 the Cannabis Regulation and Tax Act.

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

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

2 Human Rights Act.

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

4 Center Act, except to the extent authorized under that

5 Act.

6 (uu) Information that is exempt from disclosure under

7 Section 50 of the Sexual Assault Evidence Submission Act.

8 (vv) Information that is exempt from disclosure under

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

10 Public Aid Code.

11 (ww) Information that is exempt from disclosure under

12 Section 16.8 of the State Treasurer Act.

13 (xx) Information that is exempt from disclosure or

14 information that shall not be made public under the

15 Illinois Insurance Code.

16 (yy) Information prohibited from being disclosed under

17 the Illinois Educational Labor Relations Act.

18 (zz) Information prohibited from being disclosed under

19 the Illinois Public Labor Relations Act.

20 (aaa) Information prohibited from being disclosed

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

22 (bbb) Information that is prohibited from disclosure

23 by the Illinois Police Training Act and the Illinois State

24 Police Act.

25 (ccc) Records exempt from disclosure under Section

26 2605-304 of the Illinois State Police Law of the Civil

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1 Administrative Code of Illinois.

2 (ddd) Information prohibited from being disclosed

3 under Section 35 of the Address Confidentiality for

4 Victims of Domestic Violence, Sexual Assault, Human

5 Trafficking, or Stalking Act.

6 (eee) Information prohibited from being disclosed

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

8 Violence Fatality Review Act.

9 (fff) Images from cameras under the Expressway Camera

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

11 July 1, 2025.

12 (ggg) Information prohibited from disclosure under

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

14 Agency Licensing Act.

15 (hhh) Information submitted to the Illinois State

16 Police in an affidavit or application for an assault

17 weapon endorsement, assault weapon attachment endorsement,

18 .50 caliber rifle endorsement, or .50 caliber cartridge

19 endorsement under the Firearm Owners Identification Card

20 Act.

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

22 the School Safety Drill Act.

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

24 Section 30 of the Insurance Data Security Law.

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

26 prohibited from disclosure under Section 45 of the Paint

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1 Stewardship Act.

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

3 2-3.196 of the School Code.

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

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

6 Illinois Power Agency Act.

7 (nnn) Information exempt from disclosure under Section

8 165 of the Small Business Financing Transparency Act.

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

10 102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.

11 8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;

12 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.

13 6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,

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

15 103-580, eff. 12-8-23; revised 1-2-24.)

16 Section 905. The Consumer Fraud and Deceptive Business

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

18 (815 ILCS 505/2EEEE new)

19 Sec. 2EEEE. Violations of the Small Business Financing

20 Transparency Act. Any person who violates the Small Business

21 Financing Transparency Act commits an unlawful practice within

22 the meaning of this Act.

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

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

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

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

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

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

6 other Public Act.