SB3412sam001 103RD GENERAL ASSEMBLY

Sen. Laura Ellman

Filed: 4/8/2024

10300SB3412sam001 LRB103 35570 RTM 71958 a

AMENDMENT TO SENATE BILL 3412

AMENDMENT NO. ______. Amend Senate Bill 3412 on page 14, line 6, after "(7)", by adding "or (16)"; and

on page 15, by deleting lines 5 through 7; and

on page 22, line 23, by deleting "that"; and

on page 25, line 4, by deleting "next"; and

on page 26, line 18, by deleting "next"; and

on page 36, line 2, by replacing "The" with "(a) The"; and

on page 57, line 7, by replacing "after" with "of"; and

on page 61, line 21, by replacing "$1,000,000" with "$100,000"; and

on page 67, line 8, by replacing "If" with "In the event of"; and

on page 68, by replacing lines 6 through 22 with the following:

"date of the letter of credit:

(i) the original letter of credit (including any amendments); and

(ii) a written statement from the beneficiary stating that any of the following events have occurred:

(I) the filing of a petition by or against the licensee under the United States Bankruptcy Code, 11 U.S.C. 101 through 110, as amended or recodified from time to time, for bankruptcy or reorganization;

(II) the filing of a petition by or against the licensee for receivership, or the commencement of any other judicial or administrative proceeding for its dissolution or reorganization;

(III) the seizure of assets of a licensee by a Secretary pursuant to an emergency order issued in accordance with applicable law, on the basis of an action, violation, or condition that has caused or is likely to cause the insolvency of the licensee; or

(IV) the beneficiary has received notice of expiration or nonextension of a letter of credit and the licensee failed to demonstrate to the satisfaction of the beneficiary that the licensee will maintain permissible investments in accordance with subsection (a) of Section 10-3 upon the expiration or nonextension of the letter of credit."; and

on page 74, line 4, by replacing "willful blindness" with "grossly negligent inattention to its legal obligations"; and

on page 78, immediately below line 8, by inserting the following:

"Section 11-4. Orders to cease and desist and civil penalties.

(a) If the Secretary determines that a licensee, an authorized delegate, or any other person has engaged or is engaged in practices contrary to this Act, the rules adopted under this Act, or an order issued under this Act, the Secretary may issue an order requiring the licensee or authorized delegate to cease and desist from the violation. The order becomes effective upon service of it upon the licensee or authorized delegate.

(b) The Secretary may issue an order against a licensee to cease and desist from providing money transmission through an authorized delegate that is the subject of a separate order by the Secretary.

(c) The Secretary may, in addition to or without the issuance of a cease and desist order, assess a penalty up to $1,000 against a licensee or other person for each violation of this Act, the rules adopted under this Act, or an order issued under this Act as set forth in Section 11-6. The issuance of an order under this Section shall not be a prerequisite to the taking of any action by the Secretary under this or any other Section of this Act.

(d) The Secretary shall issue a formal written notice of the cease and desist order, setting forth the specific reasons for the order and serve the licensee or the authorized delegate, either personally or by certified mail. Service by certified mail shall be deemed completed when the notice is deposited in the U.S. Mail."; and

on page 82, by replacing lines 10 and 11 with the following:

"(e) A provider of payroll processing services that was not licensed pursuant to the Transmitters of Money Act on the effective date of this Act and transmitted no more than $10,000,000 in calendar year 2023 shall not be required to be licensed and comply with this Act until October 1, 2024. A provider of payroll processing services that was not licensed pursuant to the Transmitters of Money Act on the effective date of this Act and transmitted no more than $10,000,000 in calendar year 2023 shall not be penalized for providing such services before the effective date of this Act if the provider submits a completed application for licensure prior to October 1, 2024.

(f) Except as otherwise stated, this Act supersedes the Transmitters of Money Act.".