Illinois Administrative Code Pawnbroker Regulation Provisions

The Illinois Administrative Code lays down provisions for licensing and regulating pawnbrokers.  The sections are specifically stated below: 

Administrative Code
Illinois Administrative Code
Title 38. FINANCIAL INSTITUTIONS (§§ 110.1 - 1075.5030)
Part 360. LICENSING AND REGULATION OF PAWNBROKERS (§§ 360.10 - 361.710)

Source:

Emergency Rule adopted at 22 Ill. Reg. 12963, effective July 1, 1998, for a maximum of 150 days; adopted at 22 Ill. Reg. 19730, effective October 29, 1998; amended at 28 Ill. Reg. 6967, effective April 29, 2004; amended at 35 Ill. Reg. 14957, effective September 9, 2011.

Note:

AUTHORITY: Implementing and authorized by the Pawnbroker Regulation Act [205 ILCS 510 ].

•    Subpart A. DEFINITIONS AND FEES (§§ 360.10 - 360.20)
•    Subpart B. PAWNSHOP LICENSE (§§ 360.100 - 360.170)
•    Subpart C. FORMS (§§ 360.200 - 360.210)
•    Subpart D. UNIFORM RULES FOR HEARINGS BEFORE THE SECRETARY (§§ 360.300 - 360.310)
•    Subpart E. RULES AND PROCEDURES APPLICABLE TO PROCEEDINGS RELATING TO ORDERS
     (§§ 360.400 - 360.420)
•    Subpart F. RULES AND PROCEDURES APPLICABLE TO PROCEEDINGS RELATING TO
     ASSESSMENT AND COLLECTION OF CIVIL MONEY PENALTIES (§§ 360.500 - 360.520)
•    Subpart G. RULES AND PROCEDURES APPLICABLE TO PROCEEDINGS FOR REVOCATION
     OR SUSPENSION OF LICENSE (§§ 360.600 - 360.640)
•    Subpart H. FEE SCHEDULE FOR UNREGISTERED BUYERS (§§ 360.700 - 361.710)

Subpart A. DEFINITIONS AND FEES

§ 360.10. Definitions

For purposes of this Part:
"Act" means the Pawnbroker Regulation Act [205 ILCS 510 ].
"Applicant" means the individual or business entity applying to the Secretary for a license.
"Department" means the Department of Financial and Professional Regulation.
"Director" means the Director of the Division of Banking with the authority delegated by the Secretary.
"Division" means the Department of Financial and Professional Regulation-Division of Banking.
"License" means the authority to operate a pawnshop as issued by the Secretary.
"Licensee" means the individual or business entity who has been issued a license by the Secretary.
"Pawnbroker" shall have the same meaning ascribed to that term in Section 1 of the Pawnbroker Regulation Act [ 205 ILCS 510/1 ].
"Pledger" means any person who has pledged tangible personal property as collateral for a pawn loan.
"Principal party" means any officer or director of a pawnshop or a corporation that owns or seeks to own a pawnshop; any manager of a limited liability company that is a pawnshop or that owns or seeks to own a pawnshop; any shareholder or member owning 10% or more of the outstanding stock or membership interests of a pawnshop or a business entity that owns or seeks to own a pawnshop; or any partner, whether general or limited, of a partnership that is a pawnshop or that owns or seeks to own a pawnshop.
"Respondent" means the person named in an administrative decision.
"Secretary" means the Secretary of the Department of Financial and Professional Regulation.

Source:
Amended at 35 Ill. Reg. 14957, effective September 9, 2011

§ 360.20. Fees

a) Fees
1) Annual License $765.
2) Pawnshop Manger Biennial License $50.
3) Change of Control of Ownership $300.
4) Change of Name $50.
5) Change of Location $50.
6) Issuance of Duplicate License $50.
b) A comprehensive fees schedule will be available on our website at http://www.obre.state.il.us/cbt/PAWNBROK/pawnfee.htm [File Link Not Available] ,and can also be provided in hardcopy upon written request.

Source:
Added at 35 Ill. Reg. 14957, effective September 9, 2011

Subpart B. PAWNSHOP LICENSE

§ 360.100. Purpose

a) This Part sets forth:
1) where required applications and notices must be filed;
2) the contents of the application package;
3) the locations where the application package may be obtained;
4) the procedures to be followed by both the Secretary and the applicant during the processing of an application or notice;
5) the fee which will be levied for each type of application or notice;
6) the standards for licensure;
7) the procedures to be followed by both the Secretary and a licensee relating to a change in location or name of a pawnshop;
8) the procedures to be followed by the Secretary, a licensee and an acquiring party relating to a change in control or form of ownership of a pawnshop;
9) the procedures to be followed by both the Secretary and a licensee relating to the renewal of a license; and
10) requirements relating to the display of a license.
b) A comprehensive fee schedule established by the Secretary is set forth in Section 350.20 , will be available on our website athttp://www.obre.state.il.us/cbt/PAWNBROK/pawnfee.htm and can also be provided in hardcopy upon written request.

Source:
Amended at 35 Ill. Reg. 14957, effective September 9, 2011

§ 360.110. Application for License

a) Licensure Requirement, Where to File. Section 0.05(c) of the Pawnbroker Regulation Act [ 205 ILCS 510/0.05(c) ] provides that it is unlawful to operate a pawnshop without a license issued by the Secretary. All requests for an application package must be directed to the Department of Financial and Professional Regulation-Division of Banking, Pawnbroker Regulation Section, 320 W. Washington Street, 6th Floor, Springfield, Illinois 62786; Telephone (217) 785-2900; or IL.Pawnbroker@illinois.gov, by written correspondence, telephone or electronic communication. A separate license is required for each pawnshop location.
b) Instructions, Contents. An application for a license must be submitted on the form prescribed in Section 360.210 of this Part. An application for a license shall be made under oath and state the full name and address of the applicant together with any other relevant information the Secretary shall require. The application shall also include, but not be limited to, the following requirements:
1) Disclosure of Principal Parties. The full name and place of residence of all principal parties must be provided.
2) Background Investigation. The Secretary may require that credit and criminal history record investigations be conducted on each applicant and principal party. Each applicant and principal party shall complete an Authorization For Release of Personal Information form that authorizes the Secretary to conduct a criminal history record investigation and a review of retail credit agencies' records (including credit reports and ratings). At the request of the Secretary, each applicant and principal party shall submit to, and have performed, a criminal history record investigation in the form and manner required by the Department of State Police and the Federal Bureau of Investigation. The Secretary need not cause additional criminal history record investigations to be conducted on an applicant or principal party for whom the Secretary or any other government agency has caused such investigations to have been conducted previously unless such additional investigations are otherwise required by law or unless the Secretary deems such additional investigations to be necessary for the purposes of carrying out the Secretary's statutory powers and responsibilities.
3) Insurance Requirement. The applicant, whether seeking a new license or renewing an existing license, shall provide the Secretary with proof of hazard insurance that evidences the name and address of the insuring company, the insurance policy number, the extent of coverage relating to property in active pawn, the amount of coverage, and the policy's expiration date. Thereafter, this information shall be held in file by the applicant for inspection at all times on demand by the Secretary.
4) Fees. The applicant must submit the Application Fee of $765 with the completed application. Unless otherwise permitted by the Secretary, the payment of all fees shall be made by certified check, money order, an electronic transfer of funds, or an automatic debit of an account. Certified checks or money orders shall be made payable to the Department.

Source:
Amended at 35 Ill. Reg. 14957, effective September 9, 2011

§ 360.120. Processing of Application

a) Initial Review. The Secretary shall evaluate all applications within 30 business days after receipt and acknowledge completeness, identify deficiencies, and request additional information, if necessary. A completed application is one that conforms to the instructions provided in the application package and for which all fees have been paid. The Secretary may reject an incomplete application.
b) Failure to Complete Application. If a complete application has not been filed with the Secretary within 30 business days after the Secretary's request for additional information, the application shall be denied and the applicable fee shall be forfeited, unless a further extension of time has been granted by the Secretary.
c) Consideration of Completed Application. Upon receipt of a completed application and all required fees, a determination will be made by the Secretary within 30 business days to approve or deny the application request, unless the Secretary determines additional time is necessary (e.g., pending background investigations). A written notice of the Secretary's decision will be mailed to the applicant. The written notice for all denied applications will also include the reasons for denial. The applicable fee for all denied applications will not be refunded to the applicant.
d) Petition for Reconsideration. An applicant has the right to petition the Secretary for reconsideration within 30 business days after receipt of the written notice of license denial. The petition must be in writing and should: address the reasons for denial as cited by the Secretary, specify reasons why the Secretary should reconsider the decision, and provide relevant information that supports the reasons set forth above. The Secretary shall respond to all petitions within 30 business days after receipt, unless the Secretary determines additional time is necessary.

Source:
Amended at 35 Ill. Reg. 14957, effective September 9, 2011

§ 360.130. Standards for Licensure

a) Unless otherwise authorized by the Secretary, in order to be eligible for a license to operate a pawnshop, each applicant and principal party must:
1) if an individual, be 18 years of age or older;
2) not have been convicted of a felony or of any criminal offense relating to dishonesty or breach of trust in connection with the operations of a pawnshop;
3) possess the character and general fitness necessary to warrant belief that the business will be operated in a lawful and fair manner.
b) In determining whether to grant a license, the Secretary shall consider the nature of the offense, the amount of time since the conviction, and any other mitigating factors the Secretary may deem appropriate with regards to an applicant or principal party who has been convicted of a felony or any criminal offense relating to dishonesty or breach of trust in connection with the operations of a pawnshop.

Source:
Amended at 35 Ill. Reg. 14957, effective September 9, 2011

§ 360.135. Licensing Requirements for Pawnbroker Managers

a) Requirements and Conditions. Any individual who manages a pawnshop or who acts in a managerial capacity shall secure a managerial license from the Department. A license will be issued only after the individual has evidenced, through filing with the Department, that the individual has not been convicted of any criminal felony involving dishonesty or breach of trust during the five years preceding the application. The application shall include, but not be limited to:
1) Name of pawnshop manager, director or employee who will operate the pawnshop (applicant);
2) Name of the pawnshop under which the applicant will operate, including any assumed names;
3) The complete address of where the pawnshop is located and the business telephone number;
4) The home address and social security number of the applicant;
5) The question: Have you or any company with which you were associated been convicted of or ever pleaded guilty or nolo contendere (no contest) to any criminal matter (other than minor traffic violations)? If yes, please provide a complete explanation that includes, at a minimum, the name of the offender, the type of offense, the date the offense occurred and any mitigating circumstances. You are not obligated to disclose sealed or expunged records of conviction or arrest;
6) The question: Has the applicant or any principal party ever been adjudged bankrupt or placed in receivership? If yes, please provide a complete explanation that includes, at a minimum, the name of the person or business entity, the type of bankruptcy or receivership, the date of occurrence and any mitigating circumstances;
7) The question: Has the applicant had a business or professional license issued by a governmental agency suspended, revoked or otherwise disciplined? If yes, please provide a complete explanation that includes the type of business or professional license, the governmental agency, the date of the licensing action and any mitigating circumstances;
8) The question: Do you now or have you ever operated a pawnshop in Illinois or any other state? If so, list the names and locations of the shops;
9) Child support certifications. Each sole proprietor must certify to one of the statements listed in subsections (a)(9)(A) through (C). Failure to so certify shall result in disciplinary action, and the making of a false statement may subject the licensee to contempt of court. Failure to certify may also result in a delay in the processing of the application or may result in the application being denied.
A) I am not more than 30 days delinquent in complying with a child support order;
B) I am more than 30 days delinquent in complying with a child support order. (If so, attach a copy of a payment plan approved by the applicable child support enforcement agency.)
C) I am not subject to a child support order;
10) A primary contact person to whom questions and other inquires should be directed concerning this application.
b) Operating Standards. Each pawnshop shall employ at least one individual with the authority to act in a managerial capacity. At all times a pawnshop is open for business, an individual with the authority to act in a managerial capacity must be working.
c) Transferability of License. No managerial license shall be transferable but shall be valid in connection with the holder's employment at any pawnshops regulated by the Department.
d) Fees and Duration. Each managerial license application shall be submitted with a filing fee of $50. Unless revoked or voluntarily surrendered, all managerial licenses issued by the Department shall be valid for a period of two years. This application and any questions concerning this application should be directed to:
Department of Financial and Professional Regulation
Division of Banking
Pawnbroker Regulation Section
320 West Washington Street
Springfield, Illinois 62786
217-785-2900 (Springfield)
217-557-0330 (Fax)
Email: IL.Pawnbrokers@illinois.gov

Source:
Added at 35 Ill. Reg. 14957, effective September 9, 2011

§ 360.140. Initial Applications for License from Persons Operating or Who Have Operated a Pawnshop for the Two Years Preceding July 1, 1998

a) Unless otherwise authorized by the Secretary, for persons who have operated a pawnshop at any time between July 1, 1996 through June 30, 1998, in order to be eligible for a license to operate a pawnshop, each applicant and principal party must:
1) not have been convicted of a felony or of any criminal offense relating to dishonesty or breach of trust in connection with the operations of a pawnshop;
2) provide the Secretary with satisfactory evidence (e.g., a copy of a license issued from a municipality or copy of pages from a standard record book) that business activities were being conducted within the time period stated above.
b) In determining whether to grant a license, the Secretary shall consider the nature of the offense, the amount of time since the conviction, and any other mitigating factors the Secretary may deem appropriate with regards to an applicant or principal party who has been convicted of a felony or any criminal offense relating to dishonesty or breach of trust in connection with the operations of a pawnshop.

Source:
Amended at 35 Ill. Reg. 14957, effective September 9, 2011

§ 360.150. Change in Control or Form of Ownership, Change in Location, Change in Name of Pawnshop, Voluntary Surrender of License; Fees

a) Change in Control or Form of Ownership. An application must be filed, by the acquiring party, not less than 30 days prior to the anticipated change in control or change in the form of ownership of a pawnshop. As used in this Section, "control" means a change involving the sale, assignment or transfer of a pawnshop; the addition or elimination of any general or limited partner; or a 10 percent or more change in the ownership of the outstanding stock, or membership interest, of a corporation that owns a pawnshop. A change in the form of ownership is considered to be a change from one type of business entity to another type of business entity (e.g., sole proprietorship to a corporation, partnership to sole proprietorship). The application must be submitted on the form prescribed in Section 360.210 of this Part, in accordance with the Secretary's instructions. The payment of the applicable Change in Control or Form of Ownership Fee must accompany the application. No change in control or form of ownership shall occur until approved by the Secretary. The Secretary may prohibit a change in control or form of ownership from occurring if the licensee does not meet the license standards set forth in Section 360.130 of this Part. The processing of the application shall be conducted in the same manner as provided in Section 360.120 of this Part. The Change of Control or Form of Ownership Fee is $300.
b) Gift, Bequest, or Inheritance. Any person who, by gift, bequest, or inheritance, obtains ownership rights to an existing pawnshop or ownership rights in a company that controls the pawnshop such that ownership rights would constitute control of the pawnshop or company, may obtain title and ownership rights, but may not exercise management or control of the business and affairs of the pawnshop or vote so as to exercise management or control unless and until the Secretary approves an application for the change in control as provided in this Section, unless such person has requested, in writing, and received an exemption from the Secretary.
c) Change in Location
1) An application to change the location of a pawn shop must be filed not less than 45 days prior to the anticipated date of relocation. The application must be submitted on the form prescribed in Section 360.210 of this Part, in accordance with the Secretary's instructions, and the processing of the application shall be conducted in the same manner as provided in Section 360.120 of this Part. The payment of the applicable Change in Location Fee must accompany the application. At a minimum, the application shall include: the present name and address of the licensed pawnshop, the address and phone number of the proposed new location, the anticipated date of relocation, a list of the addresses of all pledgers with open pawn loans, and a sample copy of the written notice that shall be provided to the pledgers of open pawn loans. No relocation of a pawnshop may occur until approved by the Secretary. The Secretary may prohibit a relocation if it adversely affects the ability of pledgers to redeem pledged goods due to the distance between the locations. Upon approval of a change in location by the Secretary, the licensee shall provide notification to all pledgers with open pawn loans by signs and written notice. The written notice shall be mailed to all pledgers with open pawn loans of record, at their last known mailing address, not less than 15 days prior to the anticipated date of relocation. The written notice must include the name of the pawnshop as well as identify both the old and the new locations, the telephone number of the new location, and the anticipated date of relocation. At a minimum, two signs, of reasonable size and visibility, shall be posted on the outside of the pawnshop for 15 business days prior to the relocation. The signs shall include the information provided in substantially the following form:
NOTICE OF CHANGE IN LOCATION (centered, in caps and bold) (DATE)
(Name of Pawnshop) WILL BE MOVING TO (new address)
THE TELEPHONE NUMBER AT THE NEW LOCATION IS (telephone number)
THE ANTICIPATED DATE OF RELOCATION IS (date of relocation)
2) The Secretary may waive the notification to pledgers by mail if a determination has been made that no pledgers will be adversely affected by the relocation (e.g., the pawnshop relocates to a building within close proximity of the former location). Upon receipt of the completed form, payment of the applicable fee, and the Secretary's approval, a new license shall be issued to the licensee. The licensee must surrender its former license to the Secretary not less than 10 business days after the relocation has occurred, unless an exemption has been granted by the Secretary. The Change of Location Fee is $50.
d) Change in Name of Pawnshop. Prior to the change in the name of a pawnshop, the licensee shall provide written notice to the Secretary, not less than 30 days prior to the anticipated change, and pay the applicable fee, as established by the Secretary. Upon receipt of the written notice and applicable fee, the Secretary shall issue a new license. At such time, the licensee must surrender its former license to the Secretary. The Change in Name Fee is $50.
e) Voluntary Surrender of License. Prior to the voluntary surrender of a license, the licensee shall provide not less than 60 days written notice to the Secretary. The licensee shall also provide all pledgers with open pawn loans, at their last known mailing address, with 60 days written notice and shall publish a notice in two consecutive issues of a local newspaper of general circulation. At a minimum, the notice shall contain: the name and address of the pawnshop, the telephone number of the pawnshop, and the anticipated date on which business operations will cease. Prior to the cancellation of any license, the licensee shall certify to the Secretary, in the manner prescribed by the Secretary, that the pawnshop has no open pawn loans and that no further pawn loans shall be made. Upon receiving the certification from the licensee, the Secretary shall cancel the license. At such time, the license shall be surrendered to the Secretary. Ceasing business shall not impair or affect the obligation of either the pawnbroker or the pledger to fulfill the terms of any preexisting contract between them.

Source:
Amended at 35 Ill. Reg. 14957, effective September 9, 2011

§ 360.160. Expiration and Renewal of Licenses; Fees

a) License Expiration. Every license shall expire on June 30 of each year. The holder of a license may request to renew such license by filing an application with the Secretary.
b) License Renewal. All applications for license renewal for the succeeding license period must be mailed to the Secretary and be postmarked no later than June 1 of each year. An application package and related instructions will be mailed to all licensees prior to May 1 of each year at the address listed on their most recent application. All applications must be submitted on the form prescribed in Section 360.210 of this Part, in accordance with the Secretary's instructions. The payment of the Renewal Fee of $765 must accompany the application. In addition to the applicable Renewal Fee, a Late Filing Fee of $50 per day shall be assessed for all applications postmarked after June 1 of each year, unless an exception has been granted by the Secretary. All applications for license renewal will be held to the standards set forth in Section 360.130 of this Part. The application process will be administered according to the rules set forth in Section360.120 of this Part. The Renewal Fee will not be prorated.

Source:
Amended at 35 Ill. Reg. 14957, effective September 9, 2011

§ 360.170. Display of License; Duplicate License

a) The license must be conspicuously displayed for public view at the place of business provided on the license.
b) Upon written request, a licensee may obtain a duplicate license. The fee for the issuance of a duplicate license is $50.

Source:
Amended at 28 Ill. Reg. 6967, effective April 29, 2004

Subpart C. FORMS

§ 360.200. Purpose and Scope

This Subpart sets forth the forms required to be filed by statute or rule for reports, applications, and other requests. The forms and instructions can be obtained from the Division.

Source:
Amended at 35 Ill. Reg. 14957, effective September 9, 2011

§ 360.210. Forms

a) PAWNSHOP DISCLOSURE OF BUSINESS ACTIVITIES REPORT (Disclosure Report). This form is an annual report that shall be completed, by each pawnshop to disclose such information, for the preceding calendar year, as required by the Secretary pursuant to Section 7.5 of the Pawnbroker Regulation Act [ 205 ILCS 510/7.5 ]. The Secretary, as often as the Secretary shall deem necessary or proper, may require a pawnshop to submit a full and detailed report of its operations, including, but not limited to, the number of pawns made, the amount financed on pawn transactions, and the number and amount of pawns surrendered to law enforcement. The licensee must file the Disclosure Report with the Secretary no later than 30 calendar days following the end of each calendar year.
b) APPLICATION FOR LICENSE UNDER THE PAWNBROKER REGULATION ACT. This form shall be completed, according to the Secretary's instructions, in order to apply for a license or renewal of license as required in Section 0.05(c) of the Pawnbroker Regulation Act [ 205 ILCS 510/0.05(c) ] and Section 360.110 and Section 360.160 of this Part.
c) APPLICATION FOR A CHANGE IN CONTROL OR A CHANGE IN THE FORM OF OWNERSHIP OF AN ILLINOIS PAWNSHOP. This form shall be completed, according to the Secretary's instructions, in order to apply for the approval of a change in control or a change in the form of ownership of a pawnshop as required in Section360.150 of this Part.
d) APPLICATION TO CHANGE THE LOCATION OF AN ILLINOIS PAWNSHOP. This form shall be completed, according to the Secretary's instructions, in order to apply for a change in the location of a pawnshop as required in Section 360.150 of this Part.

Source:
Amended at 35 Ill. Reg. 14957, effective September 9, 2011

Subpart D. UNIFORM RULES FOR HEARINGS BEFORE THE SECRETARY

§ 360.300. Scope

This Subpart prescribes rules of practice and procedure applicable to hearings as a result of the following administrative decisions made by the Secretary:
a) orders under Section 0.05(a)(7) of the Pawnbroker Regulation Act [ 205 ILCS 510/0.05(a)(7) ];
b) assessment of civil money penalties under Section 0.05(a)(6) of the Pawnbroker Regulation Act [ 205 ILCS 510/0.05(a)(6) ];
c) suspension of license under Section 0.05(a)(7) of the Pawnbroker Regulation Act [ 205 ILCS 510/0.05(a)(7) ];
d) revocation of license under Section 0.05(a)(10) of the Pawnbroker Regulation Act [ 205 ILCS 510/0.05(a)(10) ]; and
e) denial of an application under Section 360.120 of this Part.

Source:
Amended at 35 Ill. Reg. 14957, effective September 9, 2011

§ 360.310. Procedure for Hearings before the Secretary

If the respondent has specific grounds for believing the evidence upon which an administrative decision is based is not factual, then the respondent may request a hearing before the Secretary. The procedure for hearings before the Secretary will be conducted according to 38 Ill. Adm. Code 392, the Division rules entitled Hearings Before the Division.

Source:
Amended at 35 Ill. Reg. 14957, effective September 9, 2011

Subpart E. RULES AND PROCEDURES APPLICABLE TO PROCEEDINGS RELATING TO ORDERS

§ 360.400. Scope

The rules and procedures in this Subpart shall apply to proceedings in connection with an order issued by the Secretary pursuant to Section 0.05(a)(7) of the Pawnbroker Regulation Act [ 205 ILCS 510/0.05(a)(7) ]. The Secretary may issue an order to a licensee, principal party, employee, agent, or other entity doing business without the required license.

Source:
Amended at 35 Ill. Reg. 14957, effective September 9, 2011

§ 360.410. Grounds for an Order

An order may be issued when, in the opinion of the Secretary, the licensee, principal party, employee, agent, or any other entity doing business without the required license is violating, has violated, or is about to violate, any law, rule, or order relating to a pawnshop or is engaged, has engaged, or is about to engage in any unethical or fraudulent activity.

Source:
Amended at 35 Ill. Reg. 14957, effective September 9, 2011

§ 360.420. Effective Date of Order; Service

An order issued by the Secretary is effective when served upon the licensee, agent, or other entity doing business without the required license. All orders shall remain effective and enforceable when served, except to the extent they are stayed, modified, terminated, or set aside by the Secretary. Service of an order shall be made upon every party of record by hand delivery or by certified mail, return receipt requested. Delivery to the United States Postal Service shall be presumed to constitute delivery to the respondent, agent, or other entity doing business without the required license.

Source:
Amended at 35 Ill. Reg. 14957, effective September 9, 2011

Subpart F. RULES AND PROCEDURES APPLICABLE TO PROCEEDINGS RELATING TO ASSESSMENT AND COLLECTION OF CIVIL MONEY PENALTIES

§ 360.500. Scope

The rules and procedures of this Subpart shall apply to proceedings to assess and collect civil money penalties. The Secretary has the power to assess civil money penalties pursuant to Section 0.05(a)(6) of the Pawnbroker Regulation Act [ 205 ILCS 510/0.05(a)(6) ].

Source:
Amended at 35 Ill. Reg. 14957, effective September 9, 2011

§ 360.510. Assessment of Penalties

a) Grounds. Pursuant to Section 0.05(a)(6) of the Pawnbroker Regulation Act [ 205 ILCS 510/0.05(a)(6) ], civil penalties may be imposed against any person for each violation of any provision of the Pawnbroker Regulation Act, any rule promulgated in accordance with the Pawnbroker Regulation Act, or any order issued by the Secretary based upon the seriousness of the violation.
b) Amount. The Secretary may assess civil penalties graduated up to $1,000.
c) Relevant Considerations. In determining the amount of the civil penalty to be assessed, the Secretary shall consider the gravity of the violation, the history of previous violations, the financial resources and good faith of the person, and any such other matters as justice may require.

Source:
Amended at 35 Ill. Reg. 14957, effective September 9, 2011

§ 360.520. Effective Date of, Payment under, and Service of an Order to Pay

a) Effective Date. Unless otherwise provided, civil penalties are due and payable 60 days after the order is served on the respondent.
b) If the respondent both requests a hearing before the Secretary and serves an answer, civil penalties are due and payable 60 days from the date of the Secretary's determination or after the respondent's default unless the Secretary's determination provides for a different period of payment or the civil penalty is rescinded.
c) Civil penalties assessed pursuant to an order to pay issued upon consent are due and payable within the time specified therein.
d) Payment. All penalties collected under this Subpart shall be paid by certified check or money order and be made payable to the Division.
e) Service. Service of a civil money penalty shall be made upon each respondent by hand delivery or by certified mail, return receipt requested. Delivery to the United States Postal Service shall be presumed to constitute delivery to the respondent.

Source:
Amended at 35 Ill. Reg. 14957, effective September 9, 2011

Subpart G. RULES AND PROCEDURES APPLICABLE TO PROCEEDINGS FOR REVOCATION OR SUSPENSION OF LICENSE

§ 360.600. Scope

The rules and procedures in this Subpart shall apply to proceedings in connection with the suspension of license of a pawnshop pursuant to Section 0.05(a)(7) of the Pawnbroker Regulation Act [ 205 ILCS 510/0.05(a)(7) ] and the revocation of license of a pawnshop pursuant to Section 0.05(a)(10) of the Pawnbroker Regulation Act [ 205 ILCS 510/0.05(a)(10) ]. The revocation or suspension of license shall not impair or affect the obligation of either the pawnbroker or the pledger to fulfill the terms of any preexisting memorandum, contract, or note.

§ 360.610. Grounds for Suspension of License

The following are grounds for suspension of license pursuant to Section 0.05(a)(7) of the Pawnbroker Regulation Act [ 205 ILCS 510/0.05(a)(7) ]:
a) violations of the Pawnbroker Regulation Act;
b) violations of any rule promulgated in accordance with the Pawnbroker Regulation Act; or
c) violations of any other applicable law in connection with the operations of a pawnshop.

§ 360.620. Grounds for Revocation of License

The following are grounds for revocation of license pursuant to Section 0.05(a)(10) of the Pawnbroker Regulation Act [ 205 ILCS 510/0.05(a)(10) ]:
a) a licensee has been convicted of a felony in connection with the operations of a pawnshop;
b) a licensee knowingly or recklessly violates, or has continuously violated, the Pawnbroker Regulation Act, a rule promulgated in accordance with the Pawnbroker Regulation Act, or any order of the Secretary;
c) a fact or condition exists that, if it had existed or had been known at the time of the original application, would have justified license refusal; or
d) the licensee knowingly submits materially false or misleading documents with the intent to deceive the Secretary or any other party.

Source:
Amended at 35 Ill. Reg. 14957, effective September 9, 2011

§ 360.630. Notice to Customers

If the Secretary enters an order revoking the license of a pawnshop, the Secretary shall, on the day the order becomes final, or such other day as the order prescribes, mail a written notification of revocation of license to all persons who have things in pledge at the most recent address listed on the pawn ticket. The Secretary shall also publish the notification in two consecutive issues of a local newspaper of general circulation. The Secretary shall be reimbursed by the licensee for all expenses incurred in connection with the notification. The Notification of License Revocation shall include the information provided in substantially the following form:
NOTIFICATION OF LICENSE REVOCATION (centered, in caps and bold)
(DATE)
1. Pursuant to Section 0.05(a)(10) of the Pawnbroker Regulation Act [ 205 ILCS 510/0.05(a)(10) ], the license of (name of pawnshop) has been revoked as of (the date the order becomes final).
2. (Name and address of pawnshop) is no longer permitted to engage in the business of receiving property in pledge or as security for money or other thing advanced.
3. The revocation of license shall not impair or affect the obligation of either the pawnbroker or the pledger to fulfill the terms of any preexisting memorandum, contract, or note.
4. If you have a current business transaction with (name and address of pawnshop), you should contact (address and phone number of Secretary's agent) within 30 business days to make arrangements for the disposition of any business transaction.
5. The grounds for the license revocation are (list all grounds as stated in the order).

Source:
Amended at 35 Ill. Reg. 14957, effective September 9, 2011

§ 360.640. Effective Date of Revocation or Suspension; Service

A revocation or suspension of license issued by the Secretary is effective when served upon the respondent unless another date is specified. A suspension of license shall not exceed 30 days. All revocations or suspensions shall remain effective and enforceable, except to the extent they are stayed, modified, terminated, or set aside by the Secretary. Service of the revocation or suspension of license shall be made upon every respondent by hand delivery or by certified mail, return receipt requested. Delivery to the United States Postal Service shall be presumed to constitute delivery to the respondent.

Source:
Amended at 35 Ill. Reg. 14957, effective September 9, 2011

Subpart H. FEE SCHEDULE FOR UNREGISTERED BUYERS

§ 360.700. Definitions

As stated in Section 15(a) of the Act and for purposes of this Subpart:
"Temporary buying location" means a location used by an unregistered buyer, including, but not limited to, hotels and motels.
"Unregistered buyer" means an individual business, or an agent of an individual business, engaged in the business of purchasing from the public, scrap precious metals, including, but not limited to, jewelry, precious stones, semi-precious stones, coins, silver, gold, and platinum, that conducts transactions at a temporary buying location but is not registered under the Act.

Source:
Added at 35 Ill. Reg. 14957, effective September 9, 2011

§ 361.710. Temporary Buying Location Registration Fees

In all counties of Illinois, prior to commencing business, each unregistered buyer shall pay a registration fee of $100 to the Sheriff of the county in which it seeks to conduct business. The conduct of business at a single temporary buying location, defined in Section 360.700 , for consecutive days will require a single registration fee of $100. A separate registration fee is required for each temporary buying location. Each period of consecutive days, even if only separated by a single day, requires a separate registration fee of $100.

Source:
Added at 35 Ill. Reg. 14957, effective September 9, 2011