Illinois General Assembly - Bill Status for HB5056

Amends the Transmitters of Money Act. Defines "agent". Changes the term "authorized seller" to "agent" throughout the Act. Links an applicant's license requirements with the applicant's criminal history, if any. Adds provisions concerning application for the appointment of an agent. Provides that the Director of Financial Institutions may issue an order revoking or suspending any authorization if, after a hearing, the Director finds that the agent has violated any rule adopted by the Director under this Act or any fact or condition exists which would be grounds for denying an application for authorizing an agent. Increases certain fees. Makes other changes. Effective immediately.

Replaces everything after the enacting clause. Amends the Transmitters of Money Act. Provides that each licensee must submit to the Director of Financial Institutions as of the close of business on December 31 of each year (i) a written description of the licensee's general procedures by which it intends to enter into contracts to engage in money transmission in this State and (ii) a listing in alphabetical order of its authorized sellers in this State showing their full names and addresses and licensee assigned identification number grouped by the category of transmission activity the licensee has authorized the authorized sellers to conduct on its behalf. Increases the location fee for application for initial licensure, renewal of a license, and application to add an authorized seller's location. Provides that each written contract between a licensee and an authorized seller entered into or renewed after the effective date shall provide (1) a description of the category or categories of money transmission activity the licensee is authorized to lawfully engage in under its license that it may do through an agent; (2) an acknowledgment that the Director reserves the right to inspect, with or without prior notice to the licensee or the licensee's authorized sellers, the books and records of the authorized sellers of the licensee; (3) that authorized sellers shall not sell any travelers check, money order, or other money transmission instrument in this State unless the name of the licensee shall clearly appear on the face of the instrument and the licensee shall not condition its engagement as obligor under the payment instrument upon the remittance of the proceeds of sale from the authorized seller; (4) that an authorized seller shall not sell any travelers check, money order, or other money transmission instrument in this State, unless the authorized sellers has provided the Director with a written and irrevocable consent to examine, have access to, and retain copies of all of its books and records, wherever maintained, relating to these activities; and (5) that authorized sellers in this State are under a duty to act only as authorized under the agency contract and that an authorized seller who exceeds its authority is subject to cancellation of the agency contract and may result in further disciplinary action against the licensee by the Director. Provides that, for contracts entered into before the effective date, a notice containing this information shall be sent by each licensee to each of its agents in Illinois within 45 days after the effective date. Makes other changes.

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