101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2560

 

Introduced , by Rep. Nicholas K. Smith

 

SYNOPSIS AS INTRODUCED:
 
205 ILCS 405/19.3  from Ch. 17, par. 4838

    Amends the Currency Exchange Act. Provides the maximum rates to be charged by community and ambulatory currency exchanges for cashing any check or issuing any money order. Provides that no community or ambulatory currency exchange shall charge a fee for cashing any check or issuing any money order in excess of the maximum rates. Deletes language requiring the Secretary of Financial and Professional Regulation to formulate and issue schedules of reasonable maximum rates for check cashing and money orders.


LRB101 08316 JRG 53385 b

 

 

A BILL FOR

 

HB2560LRB101 08316 JRG 53385 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Currency Exchange Act is amended by changing
5Section 19.3 as follows:
 
6    (205 ILCS 405/19.3)  (from Ch. 17, par. 4838)
7    (Text of Section before amendment by P.A. 100-704)
8    Sec. 19.3. (A) The General Assembly hereby finds and
9declares: community currency exchanges and ambulatory currency
10exchanges provide important and vital services to Illinois
11citizens. In so doing, they transact extensive business
12involving check cashing and the writing of money orders in
13communities in which banking services are generally
14unavailable. Customers of currency exchanges who receive these
15services must be protected from being charged unreasonable and
16unconscionable rates for cashing checks and purchasing money
17orders. The Illinois Department of Financial and Professional
18Regulation has the responsibility for regulating the
19operations of currency exchanges and has the expertise to
20determine reasonable maximum rates to be charged for check
21cashing and money order purchases. Therefore, it is in the
22public interest, convenience, welfare and good to have the
23Department establish reasonable maximum rate schedules for

 

 

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1check cashing and the issuance of money orders and to require
2community and ambulatory currency exchanges to prominently
3display to the public the fees charged for all services. The
4Secretary shall review, each year, the cost of operation of the
5Currency Exchange Section and the revenue generated from
6currency exchange examinations and report to the General
7Assembly if the need exists for an increase in the fees
8mandated by this Act to maintain the Currency Exchange Section
9at a fiscally self-sufficient level. The Secretary shall
10include in such report the total amount of funds remitted to
11the State and delivered to the State Treasurer by currency
12exchanges pursuant to the Revised Uniform Unclaimed Property
13Act.
14    (B) The Secretary shall, by rules adopted in accordance
15with the Illinois Administrative Procedure Act, expeditiously
16formulate and issue schedules of reasonable maximum rates which
17can be charged for check cashing and writing of money orders by
18community currency exchanges and ambulatory currency
19exchanges.
20        (1) In determining the maximum rate schedules for the
21    purposes of this Section the Secretary shall take into
22    account:
23            (a) Rates charged in the past for the cashing of
24        checks and the issuance of money orders by community
25        and ambulatory currency exchanges.
26            (b) Rates charged by banks or other business

 

 

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1        entities for rendering the same or similar services and
2        the factors upon which those rates are based.
3            (c) The income, cost and expense of the operation
4        of currency exchanges.
5            (d) Rates charged by currency exchanges or other
6        similar entities located in other states for the same
7        or similar services and the factors upon which those
8        rates are based.
9            (e) Rates charged by the United States Postal
10        Service for the issuing of money orders and the factors
11        upon which those rates are based.
12            (f) A reasonable profit for a currency exchange
13        operation.
14        (2)(a) The schedule of reasonable maximum rates
15    established pursuant to this Section may be modified by the
16    Secretary from time to time pursuant to rules adopted in
17    accordance with the Illinois Administrative Procedure Act.
18        (b) Upon the filing of a verified petition setting
19    forth allegations demonstrating reasonable cause to
20    believe that the schedule of maximum rates previously
21    issued and promulgated should be adjusted, the Secretary
22    shall expeditiously:
23            (i) reject the petition if it fails to demonstrate
24        reasonable cause to believe that an adjustment is
25        necessary; or
26            (ii) conduct such hearings, in accordance with

 

 

HB2560- 4 -LRB101 08316 JRG 53385 b

1        this Section, as may be necessary to determine whether
2        the petition should be granted in whole or in part.
3        (c) No petition may be filed pursuant to subparagraph
4    (a) of paragraph (2) of subsection (B) unless:
5            (i) at least nine months have expired since the
6        last promulgation of schedules of maximum rates; and
7            (ii) at least one-fourth of all community currency
8        exchange licensees join in a petition or, in the case
9        of ambulatory currency exchanges, a licensee or
10        licensees authorized to serve at least 100 locations
11        join in a petition.
12        (3) Any currency exchange may charge lower fees than
13    those of the applicable maximum fee schedule after filing
14    with the Secretary a schedule of fees it proposes to use.
15(Source: P.A. 100-22, eff. 1-1-18.)
 
16    (Text of Section after amendment by P.A. 100-704)
17    Sec. 19.3. (A) The General Assembly hereby finds and
18declares: community currency exchanges and ambulatory currency
19exchanges provide important and vital services to Illinois
20citizens. In so doing, they transact extensive business
21involving check cashing and the writing of money orders in
22communities in which banking services are generally
23unavailable. Customers of currency exchanges who receive these
24services must be protected from being charged unreasonable and
25unconscionable rates for cashing checks and purchasing money

 

 

HB2560- 5 -LRB101 08316 JRG 53385 b

1orders. The Illinois Department of Financial and Professional
2Regulation has the responsibility for regulating the
3operations of currency exchanges and has the expertise to
4determine reasonable maximum rates to be charged for check
5cashing and money order purchases. Therefore, it is in the
6public interest, convenience, welfare and good to have the
7Department establish reasonable maximum rate schedules for
8check cashing and the issuance of money orders and to require
9community and ambulatory currency exchanges to prominently
10display to the public the fees charged for all services. The
11Secretary shall review, each year, the cost of operation of the
12Currency Exchange Section and the revenue generated from
13currency exchange examinations and report to the General
14Assembly if the need exists for an increase in the fees
15mandated by this Act to maintain the Currency Exchange Section
16at a fiscally self-sufficient level. The Secretary shall
17include in such report the total amount of funds remitted to
18the State and delivered to the State Treasurer by currency
19exchanges pursuant to the Revised Uniform Unclaimed Property
20Act.
21    (B) The maximum rate to be charged by community and
22ambulatory currency exchanges for cashing any check shall not
23exceed (i) an amount equal to 1.4% of the face amount of the
24check plus a service charge of $1 for all checks $100 or less
25or (ii) an amount equal to 2.25% of the face amount of the
26check for all checks greater than $100.

 

 

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1    The maximum rate to be charged by community and ambulatory
2currency exchanges for issuing any money order shall not exceed
3an amount equal to 1% of the face amount of the money order
4plus a service charge of $0.75.
5    No community or ambulatory currency exchange shall charge a
6fee for cashing any check or issuing any money order in excess
7of the maximum rates. The Secretary shall, by rules adopted in
8accordance with the Illinois Administrative Procedure Act,
9expeditiously formulate and issue schedules of reasonable
10maximum rates which can be charged for check cashing and
11writing of money orders by community currency exchanges and
12ambulatory currency exchanges.
13        (1) In determining the maximum rate schedules for the
14    purposes of this Section the Secretary shall take into
15    account:
16            (a) Rates charged in the past for the cashing of
17        checks and the issuance of money orders by community
18        and ambulatory currency exchanges.
19            (b) Rates charged by banks or other business
20        entities for rendering the same or similar services and
21        the factors upon which those rates are based.
22            (c) The income, cost and expense of the operation
23        of currency exchanges.
24            (d) Rates charged by currency exchanges or other
25        similar entities located in other states for the same
26        or similar services and the factors upon which those

 

 

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1        rates are based.
2            (e) Rates charged by the United States Postal
3        Service for the issuing of money orders and the factors
4        upon which those rates are based.
5            (f) A reasonable profit for a currency exchange
6        operation.
7            (g) The impact on consumers.
8            (h) Whether the rate schedule will
9        disproportionately impact anyone on the basis of any
10        protected characteristic or category listed in
11        subsection (Q) of Section 1-103 of the Illinois Human
12        Rights Act as those terms are defined in that Section.
13        (2)(a) The schedule of reasonable maximum rates
14    established pursuant to this Section may be modified by the
15    Secretary from time to time pursuant to rules adopted in
16    accordance with the Illinois Administrative Procedure Act.
17        (b) Upon the filing of a verified petition setting
18    forth allegations demonstrating reasonable cause to
19    believe that the schedule of maximum rates previously
20    issued and promulgated should be adjusted, the Secretary
21    shall expeditiously:
22            (i) reject the petition if it fails to demonstrate
23        reasonable cause to believe that an adjustment is
24        necessary; or
25            (ii) conduct such hearings, in accordance with
26        this Section, as may be necessary to determine whether

 

 

HB2560- 8 -LRB101 08316 JRG 53385 b

1        the petition should be granted in whole or in part.
2        (c) No petition may be filed pursuant to subparagraph
3    (a) of paragraph (2) of subsection (B) unless:
4            (i) at least nine months have expired since the
5        last promulgation of schedules of maximum rates; and
6            (ii) at least one-fourth of all community currency
7        exchange licensees join in a petition or, in the case
8        of ambulatory currency exchanges, a licensee or
9        licensees authorized to serve at least 100 locations
10        join in a petition.
11        (3) Any currency exchange may charge lower fees than
12    those of the applicable maximum fee schedule after filing
13    with the Secretary a schedule of fees it proposes to use.
14(Source: P.A. 100-22, eff. 1-1-18; 100-704, eff. 6-1-19.)
 
15    Section 95. No acceleration or delay. Where this Act makes
16changes in a statute that is represented in this Act by text
17that is not yet or no longer in effect (for example, a Section
18represented by multiple versions), the use of that text does
19not accelerate or delay the taking effect of (i) the changes
20made by this Act or (ii) provisions derived from any other
21Public Act.