ADMINISTRATIVE CODE

Section 125.10 Authority

Section 125.20 Purposes

Section 125.30 Procedure and Criteria for Rate Making

Section 125.40 Procedure for Submission, Consideration and Disposition of Petitions Seeking the Promulgation, Amendment or Repeal of Part 125

Section 125.50 Form and Procedure for the Submission, Consideration and Disposition of Petitions Seeking an Increase of the Rates Set Forth in the Maximum Rate Schedule

Section 125.60 Prohibition Against and Sanctions for Charging More than Rates Set Forth in the Maximum Rate Schedule

Section 125.70 Procedure for Charging Less than Applicable Maximum Rates

Section 125.80 Prohibition Against Charging More than Posted Fees

Section 125.90 Construction of Rules

Section 125.100 Hearing Procedure

Section 125.10 Authority

This Part is issued by the Director of the Department of Financial Institutions (hereinafter referred to as the "Director") pursuant to Section 19.3 of "An Act in relation to the definitions, licensing and regulations of community currency exchanges and ambulatory currency exchanges and the operators and employees thereof, and to make an appropriation therefor, and to provide penalties and remedies for the violation thereof" (Ill. Rev. Stat. 1981, ch. 17, par. 4838), herinafter called the Act, and Sections 5-35, 5-145 and 1-65 of the Illinois Administrative Procedure Act (Ill. Rev. Stat. 1991, ch. 127, pars. 1005-35, 1005-145 and 1001-65).

(Source: Amended at 9 Ill. Reg. 12284, effective July 30, 1985)

Section 125.20 Purposes

Pursuant to the authority set forth in Section 125.10 these Rules accomplish the following purposes:

a) Establish the procedures and criteria to be followed by the Director in establishing maximum rate schedules for the cashing of checks and writing of money orders by community and ambulatory currency exchanges;

b) Establish the procedures to be followed for charging less than the applicable maximum fee schedule;

c) Establish the form and procedure for the submission, consideration and disposition of petitions filed by interested parties requesting an increase of the rates set forth in the maximum rate schedule;

d) Establish the form and procedure for the submission, consideration and disposition of petitions filed by interested parties requesting the promulgation of new Rules or the amendment of any of the Rules set forth hereafter.

TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER I: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 125 THE FORMULATION AND ISSUANCE OF SCHEDULES OF MAXIMUM RATES FOR CHECK CASHING AND THE WRITING OF MONEY ORDERS OF COMMUNITY AND AMBULATORY CURRENCY EXCHANGES
SECTION 125.30 PROCEDURE AND CRITERIA FOR RATE MAKING

Section 125.30 Procedure and Criteria for Rate Making

a) Types of Rates to be Established by the Director

The Director will establish maximum rate schedules for fees charged for check cashing and the issuance of money orders by community and ambulatory currency exchanges. Such schedules of maximum fees to be established by the Director may provide maximum fees for community currency exchanges which may be different than the maximum fees for ambulatory currency exchanges.

b) Criteria

In establishing the maximum rate schedules set forth in paragraph (a) above, the Director will consider the following criteria:

1) Rates charged in the past for the cashing of checks and the issuance of money orders by community and ambulatory currency exchanges;

2) Rates charged by banks or other business entities for rendering the same or similar services and the factors upon which those rates are based;

3) The income, cost and expense of the operation of currency exchanges;

4) Rates charged by currency exchanges or other similar entities located in other states for the same or similar services and the factors upon which those rates are based;

5) Rates charged by the United States Postal Service for the issuing of money orders and the factors upon which those rates are based;

6) A reasonable profit for a currency exchange operation.

c) Matters to be Considered in Setting Rates

1) In establishing the maximum rate schedules set forth in paragraph (a) above, the Director shall consider the oral and written submissions of interested parties as set forth in paragraph (e) herein. In addition, the Director may consider:

A) any of the files, records and documents on file at the Department of Financial Institutions which have been filed or submitted by community or ambulatory currency exchanges pursuant to Section 16 of the Act.

B) any audit or examination reports of currency exchanges on file at the Department prepared by the Department pursuant to Section 16 of the Act and

C) generally recognized technical facts within the Department's specialized knowledge relating to community and ambulatory currency exchanges.

2) All written information submitted to the Director, pursuant to this Section, will be made available for examination to any interested persons upon request and will be made available for copying by any interested persons at such person's expense. In supplying such information, the Director will take whatever precautions necessary to insure the anonymity and privacy of those entities submitting confidential information to the Department.

d) Submission of Additional Information Required by the Director

1) In addition to the matters set forth in paragraph (c) above if at any time the Director deems it appropriate to secure any further information from any community or ambulatory currency exchange in order to establish the maximum rate schedules set forth in paragraph (a) above, the Director may require any such currency exchange or exchanges to submit additional data or information. The Director may require that such additional information be submitted under oath, or on forms prescribed by the Director, or both.

2) The Director shall make such request if he or his designee finds that the material(s) originally filed are:

A) Ambiguous, or

B) Not accompanied with specific detail to support allegation(s), or

C) Not complete in substance, or

D) Otherwise do not afford sufficient information to enable the Director to determine whether a change in rates would be warranted.

e) Oral and Written Submissions Allowed

1) All interested persons shall submit data, views, comments or arguments with respect to the maximum rate schedules to be established pursuant to paragraph (a) above; and these submissions may be made either orally or in writing, or both, provided that such submissions comply with the requirements of these Rules.

2) All written submissions which set forth the information in the nature of expert testimony and/or opinions, including but not limited to statistical data, compilations, charts, diagrams, accounting procedures and/or computer printouts, must be filed with the Director at least 15 days prior to the first date for each annual rate hearing.

f) Procedure for Oral Submissions

1) Public Hearings

A) The Director shall conduct public hearings on the establishment, revision or modification of the maximum rate schedules described in paragraph (a) above. Upon written request by an interested party hearings will be conducted annually on the revision, modification or repeal of the maximum rate schedules provided that any request for an increase of the rates set forth in the maximum rate schedule must comply with the requirements of Section 19.3 of the Currency Exchange Act (Ill. Rev. Stat. 1983, ch. 17, par. 4838) and Section 125.50 of this Part.

B) Notification of the exact date or dates, times and location of the hearings must be published in a newspaper of general circulation in the State of Illinois at least forty-five (45) days prior to the commencement of the first day of the hearings.

2) Manner of Making Oral Submissions at Public Hearings

Any interested person who gives timely notice to the Director of his intention to do so as set forth in paragraph (f)(3) below may orally submit data, views, comments or arguments by testifying under oath at the public hearings with respect to the maximum rate schedules to be established by the Director.

3) Notice of Intention to Testify at Public Hearings

Any interested party wishing to testify under oath at the public hearings and submit data, views, comments or arguments on the maximum rate schedules to be established by the Director must give written notice to the Director of his or her intention to do so at least five (5) days prior to the commencement of rate-making hearings. Such notice shall be filed in person or by mail with the Director of the Department of Financial Institutions either at The State of Illinois Building, 100 W. Randolph Suite 15-700, Chicago, Illinois 60601, or at 421 East Capitol Street, Springfield, Illinois 62706. Such notice must be received by the Director no later than 5:00 PM on the fifth day preceding the commencement of the hearing. In the event that the deadline for the filing of such notice falls on a day when the Department is not open for business, then the deadline shall be extended to the next available date on which the Department is open for business. Any person failing to file timely notice under this Section will not be permitted to testify at the public hearings. However, any interested person who fails to file timely notice under this Section will not be precluded from submitting his or her views, comments, data or arguments in writing in accord with the requirements of paragraph (g). With respect to the rate-making hearings, any interested person wishing to orally offer views, comments, data or arguments by testifying under oath at said hearings must file notice of his or her intention to do so with the Director as previously set forth.

4) Availability of Transcript of Proceedings

The proceedings of the public rate-making hearings must be recorded and a transcript of the proceedings will be made available to any person at his or her cost and expense. Orders for such a transcript should be placed directly with the reporting service responsible for recording the proceedings.

5) Questioning of Persons Testifying

The Director, or any person designated by the Director to assist him in the conduct of the public hearings pursuant to paragraph(i) of this Section, may ask questions of persons testifying at said hearings.

g) Procedure for Filing Written Submissions

1) In addition to or in lieu of offering oral testimony as previously described, any interested person may submit his or her views, comments, data or arguments on the maximum rate schedules to be established by the Director in writing by filing said written submission with the Director by no later than 5:00 PM of the last day of the scheduled public hearings, except as to all written submissions which set forth information in the nature of expert testimony pursuant to paragraph (d) which written submissions must be submitted no later than 15 days prior to the first date for each annual rate hearing along with ten copies of each such written submission. Written submissions may be filed in person or by mail with the Director of the Department of Financial Institutions either at The State of Illinois Building, 100 W. Randolph Suite 15-700, Chicago, Illinois 60601, or 421 East Capitol Street, Springfield, Illinois 62706. Any written submission which is not timely filed will not be considered by the Director in establishing the maximum rate schedules.

2) Expert testimony shall be considered any testimony given by individuals with a specialized knowledge of the currency exchange business or of rate making in general.

h) Procedure for Filing Written Rebuttal Submissions

Any interested person wishing to respond to oral testimony presented at the public hearings and/or written submissions filed with the Director pursuant to paragraph (g) above, may submit his or her views, comments, data, or arguments in writing by filing said written submission with the Director by no later than 5:00 p.m. of the tenth day following the last day of the scheduled public hearings. Such written submissions may be filed in person or by mail with the Director of the Department of Financial Institutions either at the State of Illinois Building, 100 W. Randolph Suite 15-700, Chicago, Illinois 60601, or 421 East Capitol Street, Springfield, Illinois 62706. Any written submission which is not timely filed will not be considered by the Director in establishing the maximum rate schedules.

i) All Written Submissions Available for Public Inspection

All written submissions filed timely with the Director pursuant to paragraph (g) and (h) above will be available for public inspection at any time when the Department is open for business either at The State of Illinois Building, 100 W. Randolph Suite 15-700, Chicago, Illinois 60601, or at 421 East Capitol Street, Springfield, Illinois 62706.

j) Persons Authorized to Assist Director

The Director may seek and contract for legal or technical assistance and advice with persons, partnerships, corporations or businesses who are not employees of the Department in connection with the conduct of the rate-making hearings and the establishment of the maximum rate schedules. The Director may designate any such person or persons and one or more employees of the Department to assist him in the conduct of the public hearings as previously set forth and in the establishment of maximum rate schedules.

k) Filing and Effective Date of Maximum Rate Schedules

1) With respect to the rate-making hearings scheduled to take place, the Director will issue and adopt maximum rate schedules for check cashing and writing of money orders and file said rate schedules with the Administrative Code Unit of the Illinois State Library of the Secretary of State's Office in Springfield, Illinois expeditiously upon approval of said rules by the Joint Committee on Administrative Rules pursuant to the provisions of the Illinois Administrative Procedure Act (Ill. Rev. Stat. 1991, ch. 127, pars. 1001-1 et seq.) Said rates will be effective ten (10) days after such filing.

2) With respect to the future revisions, modification, amendment or repeal of the maximum rate schedules pursuant to public hearings, the Director will file a certified copy of such revisions, modifications, amendments or repeals, as the case may be, with the Administrative Code Unit of the Illinois State Library of the Secretary of State's Office in Springfield pursuant to the requirements of Section 5-40(d) of the Illinois Administrative Procedure Act (Ill. Rev. Stat. 1991, ch. 127, par. 1005-40(d)). Any revisions, modifications, amendments or repeals of the maximum rate schedules will be effective ten (10) days after such filing.

3) At the time the Director issues and adopts the maximum rate schedules, or emergency rates pursuant to this Section, or Section 125.30 (l), or with respect to the future revision, modification, amendment, or repeal of the maximum rate schedules, the Director will also publish in the Illinois Register a statement setting forth the Director's findings regarding the criteria established in Section 125.30(b) and the information upon which such findings are based.

l) Emergency Rates

In the event that the Director deems it appropriate, pursuant to the requirements of Section 5-45 of the Illinois Administrative Procedure Act (Ill. Rev. Stat. 1991, ch. 127, par. 1005-45), the Director may adopt and issue emergency maximum rate schedules which may be effective for a period of not longer than 150 days.

m) Rates and Rules of Practice and Procedure Available for Public Inspection

These Rules and any maximum rate schedules, or any revisions, modifications, amendments or repeal thereof, will be available for public inspection at all times on any day the Department of Financial Institutions is open for business at the offices of the Department located either at The State of Illinois Building, 100 W. Randolph Suite 15-700, Chicago, Illinois 60601, or at 421 East Capitol Street, Springfield, Illinois 62706.

(Source: Amended at 9 Ill. Reg. 12284, effective July 30, 1985)

Section 125.40 Procedure for Submission, Consideration and Disposition of Petitions Seeking the Promulgation, Amendment or Repeal of Part 125

a) Right to Petition

Any interested person may petition the Director requesting the promulgation of a Rule or Rules of Practice and Procedure for rate-making, or for an amendment, modification, revision or repeal of any of this Part regarding rate-making.

b) Form of Petition

1) Petitions to be in Writing and Signed

The petition must be in writing and signed by the party requesting the promulgation, amendment, modification, revision or repeal of any of this Part.

2) Contents of Petition

The petition must set forth the following:

A) A statement of whether the promulgation of a new Rule, or the amendment, modification, revision or repeal of a present Rule, is being sought, and

B) Petition Requirements for New, Amended or Repealed Rules

i) If the petition requests the promulgation of a new Rule, the petition must set forth the full text of the suggested new Rule; or

ii) If the petition requests the amendment, revision or modification of an existing Rule, the petition must identify the existing Rule as to which amendment, revision or modification is being requested and must set forth the full text of the Rule as amended, revised or modified; or

iii) If the petition requests the repeal of an existing Rule, the petition must identify the particular Rule as to which repeal is being requested; and

C) A statement of the petitioner's reasons for requesting the promulgation, amendment, revision, modification or repeal, as the case may be.

3) Filing of Petition

Such petition may be filed in person or by mail with the Director of the Department of Financial Institutions, either at The State of Illinois Building, 100 W. Randolph St. 15-700, Chicago, Illinois 60601, or at 421 East Capitol Avenue, Springfield, Illinois 62706.

c) Disposition of Petition

Within thirty (30) days of the receipt of the petition, the Director will notify the petitioner whether the Director will grant the petition and initiate rule-making proceedings in accord with Section 5-35 of the Illinois Administrative Procedure Act (Ill. Rev. Stat. 1991, ch. 127, par. 1005-35). If, within thirty (30) days after receipt of the petition, the Director has not initiated such rule-making proceedings, the petition shall be deemed to have been denied. The Director will grant the petition if he determines that one or more of the following criteria are established:

1) The current rule or set of rules are outdated and do not reflect present currency exchange operations and serve the needs of the industry and the public.

2) Petition presents new and relevant information/data pertaining to the formulation of rates.

(Source: Amended at 12 Ill. Reg. 17834, effective October 24, 1988)

Section 125.50 Form and Procedure for the Submission, Consideration and Disposition of Petitions Seeking an Increase of the Rates Set Forth in the Maximum Rate Schedule

a) Right to Petition

At least one-fourth of all community currency exchange licensees must join in a petition or, in the case of ambulatory currency exchanges, licensees authorized to serve at least 100 locations, must join in a petition requesting an increase of the rates set forth in the maximum rate schedule established by the Director pursuant to these Rules.

b) Form of Petition

1) Petitions to be in Writing and Signed

The petition must be in writing, signed and verified under oath by all of the licensees requesting an increase of the rates set forth in the maximum rate schedule.

2) Contents of Petition

The petition must set forth the following:

A) A statement identifying the particular rates as to which an increase is being requested and the proposed amounts by which the rates are to be increased; and

B) Allegations demonstrating reasonable cause to believe that the schedule of maximum rates previously issued and promulgated should be increased.

3) Filing of Petition

Such petition may be filed in person or by mail with the Director of the Department of Financial Institutions, either at The State of Illinois Building, 100 W. Randolph Suite 15-700, Chicago, Illinois 60601, or at 421 East Capitol Street, Springfield, Illinois 62706. No petition may be filed unless at least nine months have expired since the last promulgation of schedules of maximum rates.

c) Disposition of Petition

If the petition makes an initial showing that an increase in the maximum rate schedules is warranted under the standards contained in Section 19.3 (B)(1)(a-f) of the Currency Exchange Act, the Director will then grant the petition and conduct Maximum Rate Schedules Hearings. The Director will otherwise deny the petition. In either event the Director will notify the petitioner of his decision within ten (10) days of the making thereof.

(Source: Amended at 9 Ill. Reg. 12284, effective July 30, 1985)

Section 125.60 Prohibition Against and Sanctions for Charging More than Rates Set Forth in the Maximum Rate Schedule

a) Prohibition

Upon the effective date of the maximum rate schedules established by the Director pursuant to these Rules, each and every community or ambulatory currency exchange may not charge more than the applicable maximum rates set forth on said schedules.

b) Sanctions

1) The Director shall impose a fine up to $100 per violation, or suspension as authorized by Section 15 of the Currency Exchange Act if he finds that any community or ambulatory currency exchange has violated paragraph (a) of this Section.

2) For the first and second violations within a twelve month period the amount of the fine will be determined by duration of the violation and the compliance history of the currency exchange.

3) Any ambulatory or community currency exchange found to be charging over the maximum rates three times within the same twelve month period shall have its license suspended.

(Source: Amended at 9 Ill. Reg. 12284, effective July 30, 1985)

Section 125.70 Procedure for Charging Less than Applicable Maximum Rates

Any currency exchange may charge lower fees than those of the applicable maximum fee schedule after filing with the Director a schedule of the fees it proposes to use. That filing will be made in writing with the Director by email to FPR.CurrencyExchange@illinois.gov or by mail to any of the official addresses of the Illinois Department of Financial & Professional Regulation listed on https://www.idfpr.com. Upon receipt of the schedule of lower fees by the Director, the currency exchange submitting the schedule may not charge more than the fees set forth on the schedule; however, that currency exchange may revert to the maximum fee schedule upon notification to the Director in writing of its intention to do so as provided in this Section.

(Source: Amended at 45 Ill. Reg. 9954, effective July 26, 2021)

Section 125.80 Prohibition Against Charging More than Posted Fees

a) Prohibition

No community or ambulatory currency exchange may charge fees in excess of those posted pursuant to 38 Ill. Adm. Code 120 of the Rules of the State of Illinois, Department of Financial Institutions, Currency Exchange Division.

b) Sanctions

1) The Director shall impose a fine up to $100 per violation or suspension as authorized by Section 15 of the Currency Exchange Act if he finds that any community or ambulatory currency exchange has violated paragraph (a) of this Section.

2) For the first and second violations within a twelve month period the amount of the fine will be determined by the duration of the violation and the compliance history of the currency exchange.

3) Any ambulatory or community currency exchange found to be charging more than the posted fees three times within the same twelve month period shall have its license suspended.

(Source: Amended at 9 Ill. Reg. 12284, effective July 30, 1985)

Section 125.90 Construction of Rules

These Rules shall not be construed to abrogate, modify or limit any rights, privileges or immunities granted or protected by the Constitution or laws of the United States or the Constitution or laws of the State of Illinois. If any provision of these Rules shall be declared unconstitutional or invalid by any court of competent jurisdiction, such declaration shall not invalidate the remaining provisions of these Rules.

(Source: Amended at 4 Ill. Reg. 17, p. 190, effective April 16, 1980)

Section 125.100 Hearing Procedure

a) Authority of Director

Pursuant to Section 125.30(f)(1) of this Part and the Administrative Procedure Act (Ill. Rev. Stat 1991, ch. 127., par. 1010-25), the Director or his designee shall oversee the maximum rate schedules hearings. Any designee named by the Director shall be appointed in writing. The Director or his designee shall have those powers and duties necessary to accomplish this purpose including the following:

1) Scheduling hearings;

2) Administer oaths and affirmations;

3) The Director or his designee shall call upon Department personnel to testify as to information gathered pursuant to Section 19.3B1 of the Currency Exchange Act (Ill. Rev. Stat. 1983, ch. 17, par. 4838).

4) Subpoena Power

The Director or his designee will issue a subpoena upon request or when the Director determines that information otherwise unavailable is necessary to assist him in the ratemaking process. The Director, for purposes of maximum rate schedules hearing shall have the same subpoena power as in the Currency Exchange Act, (Ill. Rev. Stat. 1983, ch. 17, par. 4818).

b) Notice, Time and Place of Hearings

All hearings pursuant to this Part shall be open to the public. Notification of said hearings shall be done in accordance with Section 125.30(f)(1)(B) of this Part. There shall be one hearing held in Chicago and one held in Springfield and at such time and date designated by the Director so that persons affected by the outcome of the proceedings, such as currency exchange owners and currency exchange customers, may attend the hearing.

c) Recording Appearances

All parties and staff witnesses shall enter their appearances at the beginning of the hearing by giving their names, addresses, telephone numbers and whom they represent, in writing to the court reporter who will include the same in the record of the hearing. The Director or his designee shall require each witness to state his or her name.

d) Transcripts

Transcripts will be made pursuant to Section 125.30(f)(4) of this Part.

e) Testimony to be Under Oath or Affirmation

All testimony to be considered by the Director shall be sworn or affirmed testimony.

f) Conduct of Hearings

1) The Director or his designee shall open the hearing(s) by presenting for the record a copy of the petition requesting an increase in the maximum rate schedules, and shall continue the hearing if time does not permit all persons to be heard on the same day.

2) The Director or his designee shall call upon those persons who, in the manners set forth in Sections 125.30(e)(1), 125.30(f)(2) and 125.30(f)(3) of this Part, have given proper notice pursuant to these sections of their intention to give oral testimony at the hearing(s). Person testifying will be called in the following order:

A) Expert testimony; expert testimony being that defined in Section 125.30(g)(2) of this Part;

B) Consumer groups;

C) Any individual having an interest in a currency exchange and the general public including users of currency exchange services;

D) State and governmental Departments and/or agencies and private business entities;

E) Department of Financial Institutions staff;

F) The above order (A-E) will change in the event of any of the parties presenting testimony have time constraints due to distance travelled or medical restrictions.

3) Rebuttal will be done pursuant to Section 125.30(h) of this Part.

4) The Director and a designee to assist in the conduct of the hearings may ask questions of any person presenting oral testimony pursuant to Section 125.30(f) for the purpose of clarification and information.

5) Upon receipt of more than 30 written notices of intent to testify pursuant to Section 125.30(f)(3) on a particular day, the Director or his designee shall set time limitations for such testimony. This will ensure the opportunity for each individual having given notice pursuant to Section 125.30 to testify.

6) The Director or his designee shall halt testimony which is repetitious and which is not relevant to the ratemaking at issue.

g) Hearing Decorum

1) All parties to these hearing(s) shall conduct themselves in a manner such that all parties may make their presentation.

2) When there is a threat to a participant or to the proceedings, the hearings shall be recessed until the threat has been removed. A threat shall consist of a physical, verbal or written act.

3) The Director or his designee shall remove from the hearing any individual(s) who conduct themselves in such a manner as to prevent all parties from making their presentations.

h) Decision of Director

1) The final decision regarding the new rate shall be made only by the Director.

2) The decision by the Director will be in writing and will state the basis for the finding in accordance with the criteria listed in Section 19.3 B of the Currency Exchange Act.

i) Time Schedules

The Director shall adhere to the following time schedules with respect to the Rate Making Process.

1) When the petition as outlined in Section 125.50(c) of this Part is granted Maximum Rate Schedule Hearings must be conducted within 75 days of the Director granting said petition.

2) After the Maximum Rate Schedule Hearings have been completed and the Rebuttal period pursuant to Section 125.30(h) of this Part has occurred, the Director shall have 30 days to make his finding pursuant to Section 125.30(i)(2) of this Part.

3) The Director shall have 30 days after issuing his finding to initiate rulemaking for a modification and or change in rates. This rulemaking shall be conducted pursuant to the Illinois Administrative Procedure Act, Ill. Rev. Stat. 1991, ch. 127, par. 1001-1 et seq.

(Source: Added at 11 Ill. Reg. 686, effective December 20, 1986)