Full Text of HB0104 102nd General Assembly
HB0104 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB0104 Introduced 1/14/2021, by Rep. Jonathan Carroll SYNOPSIS AS INTRODUCED: |
| 205 ILCS 405/4 | from Ch. 17, par. 4808 | 205 ILCS 405/13.1 | from Ch. 17, par. 4822 | 205 ILCS 405/14 | from Ch. 17, par. 4823 | 205 ILCS 405/16 | from Ch. 17, par. 4832 | 205 ILCS 660/5 | from Ch. 17, par. 5205 | 205 ILCS 660/6 | from Ch. 17, par. 5206 | 205 ILCS 665/4 | from Ch. 17, par. 5304 | 205 ILCS 665/6 | from Ch. 17, par. 5306 | 205 ILCS 670/2 | from Ch. 17, par. 5402 | 205 ILCS 670/4 | from Ch. 17, par. 5404 | 205 ILCS 670/8 | from Ch. 17, par. 5408 | 205 ILCS 670/11 | from Ch. 17, par. 5411 | 205 ILCS 670/12.5 | | 815 ILCS 122/2-55 | | 815 ILCS 122/3-5 | |
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Amends the Currency Exchange Act, the Sales Finance Agency Act, the Debt Management Service Act, the Consumer Installment Loan Act, and the Payday Loan Reform Act. Changes application fees, license fees, initial license fees, and fees to operate under those Acts. Changes the fine for late annual consumer installment loan reports to $500 (instead of $25) for each day beyond March 1 such report is filed. Establishes an initial license fee to operate as a payday lender in the amount of $1,250. Changes the fine for late annual payday lender reports to $500 (instead of $25) for each day beyond March 1 such report is filed. In the Sales Finance Agency Act, the Consumer Installment Loan Act, and the Payday Loan Reform Act, makes changes to the expiration date of licenses under those Acts and adds a fee to reinstate an expired license. Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Currency Exchange Act is amended by | 5 | | changing Sections 4, 13.1, 14, and 16 as follows:
| 6 | | (205 ILCS 405/4) (from Ch. 17, par. 4808)
| 7 | | Sec. 4. License application; contents; fees. A licensee | 8 | | shall obtain a separate license for each licensed location. | 9 | | Application for such
license shall be in writing under oath | 10 | | and in
the form prescribed and furnished by the Secretary. | 11 | | Each application shall
contain the following:
| 12 | | (a) The applicant's full name and address (both of | 13 | | residence and place of business) if the applicant is a | 14 | | natural person,
and if the applicant is a partnership, | 15 | | limited liability
company, or association, of
every member | 16 | | thereof, and the name and principal office if the | 17 | | applicant is
a corporation;
| 18 | | (b) The county and municipality, with street and | 19 | | number, if any, where
the community currency exchange is | 20 | | to be conducted, if the application is
for a community | 21 | | currency exchange license;
| 22 | | (c) If the application is for an ambulatory currency | 23 | | exchange license,
the name and address of the employer at |
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| 1 | | each location to be served by it;
and
| 2 | | (d) In the case of a licensee's initial license | 3 | | application, the applicant's occupation or profession; a | 4 | | detailed statement of the applicant's
business experience | 5 | | for the 10 years immediately preceding the
application; a | 6 | | detailed statement of the applicant's finances; the | 7 | | applicant's present or previous
connection with any other | 8 | | currency exchange; whether the applicant has ever been
| 9 | | involved in any civil or criminal litigation, and the | 10 | | material facts
pertaining thereto; whether the applicant | 11 | | has ever been committed to any penal
institution or | 12 | | admitted to an institution for the care and treatment of
| 13 | | mentally ill persons; and the nature of applicant's | 14 | | occupancy of the
premises to be licensed where the | 15 | | application is for a community currency
exchange license. | 16 | | If the applicant is a partnership, the information
| 17 | | specified herein shall be required of each partner. If the | 18 | | applicant is a
corporation or limited liability company, | 19 | | the said information shall be required of each controlling | 20 | | person thereof along with disclosure of their ownership
| 21 | | interests.
| 22 | | A licensee's initial community currency exchange license | 23 | | application shall be
accompanied by a fee of $1,000 for the | 24 | | cost of investigating the applicant. A licensee's application | 25 | | for licenses for additional licensed locations shall be | 26 | | accompanied by a fee of $1,500 $1,000 for each additional |
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| 1 | | license. If the ownership of a
licensee or licensed location | 2 | | changes, in whole or in part, a new application must be filed | 3 | | pursuant
to this Section along with a $500 fee if the | 4 | | licensee's ownership interests
have been transferred
or sold | 5 | | to a new person or entity or a fee of $300 if the licensee's
| 6 | | ownership interests have been transferred or sold to a current | 7 | | holder or
holders of the licensee's ownership interests.
When | 8 | | the application for a
community currency exchange license has | 9 | | been approved by the Secretary and
the applicant so advised, | 10 | | an additional sum of $500
$400 as an annual license
fee for a | 11 | | period terminating on the last day of the current calendar | 12 | | year
shall be paid to the Secretary by the applicant; | 13 | | provided, that the license
fee for an applicant applying for | 14 | | such a license after July 1st of any year
shall be $250 $200 | 15 | | for the balance of such year. Upon receipt
of a community | 16 | | currency exchange license application, the
Secretary shall | 17 | | examine the application for completeness and
notify the | 18 | | applicant in writing of any defect within 20 days after
| 19 | | receipt. The applicant must remedy the defect within 10 days | 20 | | after the mailing of the notification of the defect by the | 21 | | Secretary. Failure to timely remedy the defect will void the | 22 | | application. Once the Secretary determines that the | 23 | | application is complete, the Secretary shall have 90 business | 24 | | days to approve or deny the application.
If
the application is | 25 | | denied, the Secretary shall send by United
States mail notice | 26 | | of the denial to the applicant at the
address set forth in the |
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| 1 | | application. If an application is
denied, the applicant may, | 2 | | within 10 days after the date of the
notice of denial, make a | 3 | | written request to the Secretary for a
hearing on the | 4 | | application. The hearing shall be set for a date after the | 5 | | receipt by the Secretary of the request for a hearing, and | 6 | | written notice of the time and place of the hearing shall be | 7 | | mailed to the applicant no later than 15 days before the date | 8 | | of the hearing. The hearing shall be scheduled for a date | 9 | | within 56 days after the date of the receipt of the request for | 10 | | a hearing. The applicant shall pay the actual cost of
making | 11 | | the transcript of the hearing prior to the Secretary's
issuing | 12 | | his or her decision. The Secretary's decision is subject to | 13 | | review as
provided in Section 22.01 of this Act.
| 14 | | An application for an ambulatory currency exchange license | 15 | | shall be
accompanied by a fee of $1,000 $100 , which fee shall | 16 | | be for the cost of
investigating the applicant. An approved | 17 | | applicant shall not be required
to pay the initial | 18 | | investigation fee of $1,000 $100 more than once.
When the | 19 | | application for an ambulatory currency exchange license has
| 20 | | been approved by the Secretary, and such applicant so advised, | 21 | | such
applicant shall pay an annual license fee of $500 $25 for | 22 | | each and every
location to be served by such applicant; | 23 | | provided that such license fee for
an approved applicant | 24 | | applying for such a license after July 1st of any
year shall be | 25 | | $250 $12 for the balance of such year for each and every | 26 | | location
to be served by such applicant. Such an
approved |
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| 1 | | applicant for an ambulatory currency exchange license, when
| 2 | | applying for a license with respect to a particular location, | 3 | | shall file
with the Secretary, at the time of filing an | 4 | | application, a letter of
memorandum, which shall be in writing | 5 | | and under oath, signed by the owner
or authorized | 6 | | representative of the business whose employees are to be
| 7 | | served; such letter or memorandum shall contain a statement | 8 | | that such
service is desired, and that the person signing the | 9 | | same is authorized so
to do. The Secretary shall thereupon | 10 | | verify the authenticity of the letter
or memorandum and the | 11 | | authority of the person who executed it, to do
so. | 12 | | The Department shall have 45 business days to approve or | 13 | | deny a licensee's request to purchase another currency | 14 | | exchange.
| 15 | | (Source: P.A. 99-445, eff. 1-1-16 .)
| 16 | | (205 ILCS 405/13.1) (from Ch. 17, par. 4822)
| 17 | | Sec. 13.1. Consolidation of business locations. Whenever 2 | 18 | | or more
licensees desire to consolidate their places
of | 19 | | business, they shall make application for such consolidation | 20 | | to the
Secretary upon a form provided by him or her. This | 21 | | application shall state: (a) the
name to be adopted and the | 22 | | location at which the business is to be located,
which name and | 23 | | location shall be the same as one of the consolidating
| 24 | | licensees; (b) that the owners or all partners or all | 25 | | stockholders or all
members, as the
case may be, of the |
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| 1 | | licensees involved in the contemplated consolidation,
have | 2 | | approved the application; (c) a certification by the | 3 | | secretary, if any
of the licensees be corporations, that the | 4 | | contemplated consolidation has
been approved by all of the | 5 | | stockholders at a properly convened
stockholders meeting; (d) | 6 | | other relevant information the Secretary may
require. | 7 | | Simultaneously with the approval of the application by the
| 8 | | Secretary, the licensee or licensees who will cease doing | 9 | | business shall:
(a) surrender their license or licenses to the | 10 | | Secretary; (b) transfer all
of their assets and liabilities to | 11 | | the licensee continuing to operate by
virtue of the | 12 | | application; (c) apply to the Secretary of State, if they be
| 13 | | corporations, for surrender of their corporate charter in | 14 | | accordance with
the provisions of the Business Corporation Act | 15 | | of 1983.
| 16 | | An application for consolidation shall be approved or | 17 | | rejected by the
Secretary within 30 days after receipt by him | 18 | | of such application and
supporting documents required | 19 | | thereunder. The Secretary shall impose a consolidation fee of | 20 | | $500 $100 per application.
| 21 | | Such consolidation shall not affect suits pending in which | 22 | | the
surrendering licensees are parties; nor shall such | 23 | | consolidation affect
causes of action nor the rights of | 24 | | persons in particular; nor shall suits
brought against such | 25 | | licensees in their former names be abated for that
cause.
| 26 | | Nothing contained herein shall limit or prohibit any |
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| 1 | | action or remedy
available to a licensee or to the Secretary | 2 | | under Sections 15, 15.1 to 15.1e
or 15.2 of this Act.
| 3 | | (Source: P.A. 97-315, eff. 1-1-12.)
| 4 | | (205 ILCS 405/14) (from Ch. 17, par. 4823)
| 5 | | Sec. 14.
Every licensee, shall, on or before November 15, | 6 | | pay to the
Secretary the annual license fee or fees for the | 7 | | next succeeding calendar
year and shall at the same time file | 8 | | with the Secretary the annual bond or bonds and the
insurance | 9 | | policy or policies as and if required by this Act. The annual
| 10 | | license fee for each community currency exchange shall be $500 | 11 | | $400 for each licensee and $500 $400 for each additional | 12 | | licensed location. The annual
license fee for each location | 13 | | served by an ambulatory currency exchange
shall be $500 $25 .
| 14 | | (Source: P.A. 99-445, eff. 1-1-16; 99-549, eff. 7-15-16.)
| 15 | | (205 ILCS 405/16) (from Ch. 17, par. 4832)
| 16 | | Sec. 16. Annual report; investigation; costs. | 17 | | (a) Each licensee shall
annually, on or before the 1st day | 18 | | of
March, file a report with the Secretary for the
calendar | 19 | | year period
from January 1st through December 31st, giving | 20 | | such relevant information
as the Secretary may reasonably | 21 | | require concerning, and for the purpose
of examining, the | 22 | | business and operations during the preceding fiscal
year | 23 | | period of each licensed currency exchange conducted by such
| 24 | | licensee within the State. Such report shall be made under |
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| 1 | | oath and
shall be in the form prescribed by the Secretary. The | 2 | | Secretary may at
any time, and shall at least once in each | 3 | | year, investigate the currency
exchange business of any | 4 | | licensee and of every person, partnership,
association, | 5 | | limited liability company, and corporation who or which shall
| 6 | | be engaged in the
business of operating a currency exchange. | 7 | | For that purpose, the
Secretary shall have free access to the | 8 | | offices and places of business
and to such records of all such | 9 | | persons, firms, partnerships,
associations, limited liability | 10 | | companies and members thereof, and
corporations and to the | 11 | | officers and directors thereof
that shall relate to such | 12 | | currency exchange business.
The investigation may be conducted | 13 | | in conjunction with representatives of
other State agencies or | 14 | | agencies of another state or of the United States as
| 15 | | determined by the Secretary.
The Secretary may
at any time | 16 | | inspect the locations
served by an ambulatory currency | 17 | | exchange, for the purpose of
determining whether such currency | 18 | | exchange is complying with the
provisions of this Act at each | 19 | | location served. The Secretary may require
by subpoena the | 20 | | attendance of and examine under oath all persons whose
| 21 | | testimony he may require relative to such business, and in | 22 | | such cases
the Secretary, or any qualified representative of | 23 | | the Secretary whom the
Secretary may designate, may administer | 24 | | oaths to all such persons called
as witnesses, and the | 25 | | Secretary, or any such qualified representative of
the | 26 | | Secretary, may conduct such examinations, and there shall be |
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| 1 | | paid to
the Secretary for each such examination a fee of $500 | 2 | | $250 for each day
or part
thereof for each qualified | 3 | | representative designated and required to
conduct the | 4 | | examination; provided, however, that in the case of an
| 5 | | ambulatory currency exchange, such fee shall be $150 for each | 6 | | day or part
thereof. | 7 | | (b) Confidentiality. All information collected by the | 8 | | Department in the course of an examination or investigation of | 9 | | an ambulatory or community currency exchange or applicant, | 10 | | including, by not limited to, any complaint against an | 11 | | ambulatory or community currency exchange filed with the | 12 | | Department, and information collected to investigate any such | 13 | | complaint shall be maintained for the confidential use of the | 14 | | Department and shall not be disclosed. The Department may not | 15 | | disclose such information to anyone other than law enforcement | 16 | | officials, other regulatory agencies that have an appropriate | 17 | | regulatory interest as determined by the Secretary, or to a | 18 | | party presenting a lawful subpoena to the Department. | 19 | | Information and documents disclosed to a federal, State, | 20 | | county, or local law enforcement agency shall not be disclosed | 21 | | by the agency for any purpose to any other agency or person. A | 22 | | formal complaint filed against a licensee by the Department or | 23 | | any order issued by the Department against a licensee shall be | 24 | | a public record, except as otherwise prohibited by law.
| 25 | | (Source: P.A. 97-315, eff. 1-1-12.)
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| 1 | | Section 10. The Sales Finance Agency Act is amended by | 2 | | changing Sections 5 and 6 as follows:
| 3 | | (205 ILCS 660/5) (from Ch. 17, par. 5205)
| 4 | | Sec. 5.
If a licensee fails to renew his or her license by | 5 | | the 1st 31st day of
December, it shall automatically expire on | 6 | | the 31st day of December and the licensee is not entitled to a
| 7 | | hearing; however, the Director in his or her discretion, may | 8 | | reinstate an
expired
license upon payment of the annual | 9 | | renewal fee , and proof of good cause for
failure to renew , and | 10 | | payment of an additional fee for failure to renew in a timely | 11 | | manner as determined by the Director .
| 12 | | (Source: P.A. 90-437, eff. 1-1-98.)
| 13 | | (205 ILCS 660/6) (from Ch. 17, par. 5206)
| 14 | | Sec. 6.
A license fee of $1,250 $300 for the applicant's | 15 | | principal place of
business and $1,000 $100 for each | 16 | | additional place of business for which a license is
sought | 17 | | must be submitted with an application for license made before | 18 | | July 1 of
any year. If application for a license is made on | 19 | | July 1 or thereafter, a
license fee of $150 for the principal | 20 | | place of business and of $50 for each
additional place of | 21 | | business must accompany the application. Each license
remains | 22 | | in force until surrendered, suspended, or revoked. If the | 23 | | application
for license is denied, the original license fee | 24 | | shall be retained by the State
in reimbursement of its costs of |
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| 1 | | investigating that application.
| 2 | | Before the license is granted, the applicant shall prove | 3 | | in form satisfactory
to the Director, that the applicant has a | 4 | | positive net worth of a minimum of
$30,000.
| 5 | | A licensee must pay to the Department, and the Department | 6 | | must receive,
by December 1 of each year, the renewal license | 7 | | application on forms
prescribed by the Director and the | 8 | | following renewal fee
$300 for the license for his principal | 9 | | place of business and one-half of the following renewal fee | 10 | | $100 for each
additional license held as a renewal license fee | 11 | | for the succeeding
calendar year : .
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12 | | TOTAL TRANSACTIONS | RENEWAL FEE | |
13 | | 500 or less .................... | $500 | |
14 | | More than 500 and | | |
15 | | up to and including
1,000 ...... | 16 | | | $500 plus $10 per
50 transactions in excess of
500 transactions | |
17 | | More than 1,000 and | | |
18 | | up to and including
10,000 ..... | 19 | | | $1,000 plus $5 per
100 transactions in excess of
1,000 transactions | |
20 | | More than 10,000 and | | |
21 | | up to and including
100,000 .... | 22 | | | $1,450 plus $2.50 per
1,000 transactions in excess of
10,000 transactions | |
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| 1 | | More than 100,000 .............. | 2 | | | $1,675 plus $1.25
per 10,000 transactions in excess of
100,000 transactions |
| 3 | | As used in this Section, "transactions" means loans made | 4 | | or acquired pursuant to this Act during the calendar year | 5 | | preceding the calendar year for which a licensee seeks to | 6 | | renew its license. | 7 | | (Source: P.A. 92-398, eff. 1-1-02.)
| 8 | | Section 15. The Debt Management Service Act is amended by | 9 | | changing Sections 4 and 6 as follows:
| 10 | | (205 ILCS 665/4) (from Ch. 17, par. 5304)
| 11 | | Sec. 4. Application for license. Application for a license | 12 | | to engage in the debt
management
service
business in this | 13 | | State shall be made to the Secretary and shall
be in writing, | 14 | | under oath, and in the form prescribed by the Secretary.
| 15 | | Each applicant, at the time of making such application, | 16 | | shall pay to the
Secretary the sum of $1,250 $30.00 as a fee | 17 | | for investigation of the applicant, and
the additional sum of | 18 | | $100.00 as a license fee.
| 19 | | Every applicant shall submit to the Secretary, at the time | 20 | | of the
application for a license, a bond to be approved by the | 21 | | Secretary in which
the applicant shall be the obligor, in the | 22 | | sum of $25,000 or
such additional amount as required by the | 23 | | Secretary based on the amount of
disbursements made by the
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| 1 | | licensee in the
previous year, and in which an
insurance | 2 | | company, which is duly authorized by the State of Illinois, to
| 3 | | transact the business of fidelity and surety insurance shall | 4 | | be a surety.
| 5 | | The bond shall run to the Secretary for the use of
the | 6 | | Department or
of any person or persons who may have a cause of | 7 | | action against the obligor
in said bond arising out
of any | 8 | | violation of this
Act or rules by a license.
Such
bond
shall be | 9 | | conditioned that the obligor will faithfully conform to
and | 10 | | abide
by the provisions of this Act and of all rules, | 11 | | regulations and directions
lawfully made by the Secretary and | 12 | | will pay to the Secretary or to
any person or persons any and | 13 | | all money that may become due or owing
to the State or to such | 14 | | person or persons, from said obligor under and by
virtue of the | 15 | | provisions of this Act.
| 16 | | (Source: P.A. 96-1420, eff. 8-3-10.)
| 17 | | (205 ILCS 665/6) (from Ch. 17, par. 5306)
| 18 | | Sec. 6. Renewal of license. Each debt management service | 19 | | provider under the provisions of this Act may
make application | 20 | | to the
Secretary for renewal of its license, which
application | 21 | | for renewal shall be on the form prescribed by the Secretary | 22 | | and
shall be accompanied by a fee of $1,000 $100.00 together | 23 | | with a bond or other
surety as required, in a minimum amount of | 24 | | $25,000 or such an amount as
required by the Secretary based on | 25 | | the amount of disbursements made by the
licensee in the |
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| 1 | | previous year. The application must be received by the
| 2 | | Department no later than December 1 of the year preceding the | 3 | | year for which
the application applies.
| 4 | | (Source: P.A. 96-1420, eff. 8-3-10.)
| 5 | | Section 20. The Consumer Installment Loan Act is amended | 6 | | by changing Sections 2, 4, 8, 11, and 12.5 as follows:
| 7 | | (205 ILCS 670/2) (from Ch. 17, par. 5402)
| 8 | | Sec. 2. Application; fees; positive net worth. Application | 9 | | for such license shall be in writing, and in the
form | 10 | | prescribed by the Director. Such
applicant at the time of | 11 | | making such application shall pay to the
Director the sum of | 12 | | $1,250 $300 as an application fee and the additional
sum of | 13 | | $450
as an annual license
fee, for a period terminating on the | 14 | | last day of the current
calendar year; provided that if the | 15 | | application is filed after June 30th
in any year, such license | 16 | | fee shall be 1/2 of the annual license fee
for such year .
| 17 | | Before the license is granted, every applicant shall prove | 18 | | in form
satisfactory to the Director that the applicant has | 19 | | and will maintain a
positive net
worth of a minimum of $30,000. | 20 | | Every applicant and licensee shall maintain
a surety bond in
| 21 | | the
principal sum of $25,000 issued by a bonding company | 22 | | authorized
to do
business in this State and which shall be | 23 | | approved by the Director. Such
bond shall run to the Director | 24 | | and shall be for the benefit of any consumer
who incurs damages |
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| 1 | | as a result of any violation of the Act or rules by a
licensee. | 2 | | If
the Director finds at any time that a bond is of | 3 | | insufficient size, is
insecure, exhausted, or otherwise | 4 | | doubtful, an additional bond in such
amount as determined by | 5 | | the Director shall be filed by the licensee within
30 days | 6 | | after written demand therefor by the Director.
"Net worth" | 7 | | means total assets minus total liabilities.
| 8 | | (Source: P.A. 92-398, eff. 1-1-02; 93-32, eff. 7-1-03.)
| 9 | | (205 ILCS 670/4) (from Ch. 17, par. 5404)
| 10 | | Sec. 4. Investigation to determine whether license shall | 11 | | be issued. Upon the filing of an application and the payment of | 12 | | the fee,
the Director shall investigate to determine
(1) that | 13 | | the reputation of the applicant, including managers of a | 14 | | limited
liability
company, partners, owners, officers
or | 15 | | directors thereof is such as to
warrant belief that the | 16 | | business will be operated honestly and fairly
within the | 17 | | purposes of this Act and (2) that the applicant meets the | 18 | | positive
net worth requirement set forth in Section 2 of this | 19 | | Act. Unless the Director
makes
findings
hereinabove | 20 | | enumerated, he or she shall not issue a license and
shall | 21 | | notify the
applicant of the denial and return to the applicant | 22 | | the sum paid by the
applicant as a license fee, but shall | 23 | | retain the $1,250 $300 application fee.
The Director shall | 24 | | approve or deny every application for license
hereunder within | 25 | | 60 days from the filing thereof with the fee.
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| 1 | | (Source: P.A. 90-437, eff. 1-1-98; 90-575, eff. 3-20-98.)
| 2 | | (205 ILCS 670/8) (from Ch. 17, par. 5408)
| 3 | | Sec. 8. Annual license fee; expenses fee - Expenses . | 4 | | Before the 1st day of each December, a
licensee must pay to
the | 5 | | Director, and the Department must receive, an the annual | 6 | | license fee calculated as set forth in the following
required | 7 | | by Section 2 for the next
succeeding calendar year. The | 8 | | license shall expire on the first of January
unless the | 9 | | license fee has been paid prior thereto.
| |
10 | | TOTAL TRANSACTIONS | RENEWAL FEE | |
11 | | 500 or less .................... | $500 | |
12 | | More than 500 and | | |
13 | | up to and including
1,000 ...... | 14 | | | $500 plus $10 per
50 transactions in excess of
500 transactions | |
15 | | More than 1,000 and | | |
16 | | up to and including
10,000 ..... | 17 | | | $1,000 plus $5 per
100 transactions in excess of
1,000 transactions | |
18 | | More than 10,000 and | | |
19 | | up to and including
100,000 .... | 20 | | | $1,450 plus $2.50 per
1,000 transactions in excess of
10,000 transactions | |
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| 1 | | More than 100,000 .............. | 2 | | | $1,675 plus $1.25
per 10,000 transactions in excess of
100,000 transactions |
| 3 | | As used in this Section, "transactions" means loans made | 4 | | pursuant to this Act during the calendar year preceding the | 5 | | calendar year for which a licensee seeks to renew its license. | 6 | | In addition to such license fee, the reasonable expense of | 7 | | any
examination, investigation or custody by the Director | 8 | | under any
provisions of this Act shall be borne by the | 9 | | licensee.
| 10 | | If a licensee fails to renew his or her license by the 1st | 11 | | 31st day of
December, it shall automatically expire on the | 12 | | 31st of December and the licensee is not entitled to a
hearing; | 13 | | however, the Director, in his or her discretion, may reinstate | 14 | | an
expired
license upon payment of the annual renewal fee , and | 15 | | proof of good cause for
failure to renew , and payment of an | 16 | | additional fee for failure to renew in a timely manner as | 17 | | determined by the Director .
| 18 | | (Source: P.A. 100-958, eff. 8-19-18.)
| 19 | | (205 ILCS 670/11) (from Ch. 17, par. 5411)
| 20 | | Sec. 11. Books and records - Reports.
| 21 | | (a) Every licensee shall retain and use in his business or | 22 | | at another
location approved by the Director such records as
| 23 | | are required by the Director to enable the Director to | 24 | | determine
whether the licensee is complying with the |
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| 1 | | provisions of this Act and the
rules and regulations | 2 | | promulgated pursuant to this Act. Every
licensee shall | 3 | | preserve the records of any loan for at least 2 years after
| 4 | | making the final entry for such loan.
Accounting systems | 5 | | maintained in whole or in part by mechanical or
electronic | 6 | | data processing methods which provide information equivalent | 7 | | to
that otherwise required and follow generally accepted | 8 | | accounting principles
are acceptable for that purpose, if | 9 | | approved by the Director in writing.
| 10 | | (b) Each licensee shall annually, on or before the first | 11 | | day of March,
file a report with the Director giving such | 12 | | relevant information as
the Director may reasonably require | 13 | | concerning the business and
operations during the preceding | 14 | | calendar year of each licensed place of
business conducted by | 15 | | the licensee. The report must be received by the
Department on | 16 | | or before March 1. The report shall be
made under oath and in a | 17 | | form prescribed by the Director. Whenever a
licensee operates | 18 | | 2 or more licensed offices or whenever 2 or more
affiliated | 19 | | licensees operate licensed offices, a composite report of such
| 20 | | group of licensed offices may be filed in lieu of individual | 21 | | reports. The
Director may make and publish annually an | 22 | | analysis and
recapitulation
of such reports. The Director may | 23 | | fine each licensee $500 $25 for each
day
beyond March 1 such | 24 | | report is filed.
| 25 | | (Source: P.A. 92-398, eff. 1-1-02.)
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| 1 | | (205 ILCS 670/12.5)
| 2 | | Sec. 12.5. Limited purpose branch.
| 3 | | (a) Upon the written approval of the Director, a licensee | 4 | | may maintain a
limited purpose branch for the sole purpose of | 5 | | making loans as permitted by
this Act. A limited purpose | 6 | | branch may include an automatic loan machine. No
other | 7 | | activity shall be conducted at the site, including but not | 8 | | limited to,
accepting payments, servicing the accounts, or | 9 | | collections.
| 10 | | (b) The licensee must submit an application for a limited | 11 | | purpose branch to
the Director on forms prescribed by the | 12 | | Director with an application fee of $1,250
$300 . The approval | 13 | | for the limited purpose branch must be renewed concurrently
| 14 | | with the renewal of the licensee's license along with a | 15 | | renewal fee as set forth in Section 8 of $300 for
the limited | 16 | | purpose branch.
| 17 | | (c) The books, accounts, records, and files of the limited | 18 | | purpose branch's
transactions shall be maintained at the | 19 | | licensee's licensed location. The
licensee shall notify the | 20 | | Director of the licensed location at which the books,
| 21 | | accounts, records, and files shall be maintained.
| 22 | | (d) The licensee shall prominently display at the limited | 23 | | purpose branch the
address and telephone number of the | 24 | | licensee's licensed location.
| 25 | | (e) No other business shall be conducted at the site of the | 26 | | limited purpose
branch unless authorized by the Director.
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| 1 | | (f) The Director shall make and enforce reasonable rules | 2 | | for the conduct of
a limited purpose branch.
| 3 | | (g) A limited purpose branch may not be located
within | 4 | | 1,000 feet of a facility operated by an inter-track wagering | 5 | | licensee or
an organization licensee subject to the Illinois | 6 | | Horse Racing Act of 1975,
on a riverboat or in a casino subject | 7 | | to
the Illinois Gambling Act, or within 1,000 feet of the | 8 | | location at which the
riverboat docks or within 1,000 feet of a | 9 | | casino.
| 10 | | (Source: P.A. 101-31, eff. 6-28-19.)
| 11 | | Section 25. The Payday Loan Reform Act is amended by | 12 | | changing Sections 2-55 and 3-5 as follows: | 13 | | (815 ILCS 122/2-55)
| 14 | | Sec. 2-55. Information, reporting, and examination. | 15 | | (a) A licensee shall keep and use books, accounts, and | 16 | | records that
will enable the Secretary to determine if the | 17 | | licensee is complying with the
provisions of this Act and | 18 | | maintain any other records as required by the
Secretary.
| 19 | | (b) A licensee shall collect and maintain information | 20 | | annually for a report that shall
disclose in detail and under | 21 | | appropriate headings:
| 22 | | (1) the total number of payday loans made during the
| 23 | | preceding calendar year;
| 24 | | (2) the total number of payday loans outstanding as of |
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| 1 | | December 31 of
the preceding calendar year;
| 2 | | (3) the minimum, maximum, and average dollar amount of | 3 | | payday loans made during the preceding calendar year;
| 4 | | (4) the average annual percentage rate and the average | 5 | | term of payday loans made during the preceding calendar | 6 | | year; and
| 7 | | (5) the total number of payday loans paid in full, the | 8 | | total number of loans that went into default, and the
| 9 | | total number of loans written off during the preceding | 10 | | calendar year.
| 11 | | The report shall be verified by the oath or affirmation of | 12 | | the owner,
manager, or president of the licensee. The report | 13 | | must be filed with the
Secretary no later than March 1 of the | 14 | | year following the year for which
the report discloses the | 15 | | information specified in this subsection (b). The
Secretary | 16 | | may impose upon the licensee a fine of $500 $25 per day for | 17 | | each day
beyond the filing deadline that the report is not | 18 | | filed.
| 19 | | (c) No later than July 31 of the second year following the | 20 | | effective date of this Act, the Department shall publish a | 21 | | biennial report that contains a compilation of aggregate data | 22 | | concerning the payday lending industry and shall make the | 23 | | report available to the Governor, the General Assembly, and | 24 | | the general public. | 25 | | (d) The Department shall have the authority to conduct | 26 | | examinations of
the books, records, and loan documents at any |
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| 1 | | time.
| 2 | | (Source: P.A. 94-13, eff. 12-6-05.) | 3 | | (815 ILCS 122/3-5)
| 4 | | Sec. 3-5. Licensure. | 5 | | (a) A license to make a payday loan shall state the | 6 | | address,
including city and state, at which
the business is to | 7 | | be conducted and shall state fully the name of the licensee.
| 8 | | The license shall be conspicuously posted in the place of | 9 | | business of the
licensee and shall not be transferable or | 10 | | assignable.
| 11 | | (b) An application for a license shall be in writing and in | 12 | | a form
prescribed by the Secretary. The Secretary may not | 13 | | issue a payday loan
license unless and until the following | 14 | | findings are made:
| 15 | | (1) that the financial responsibility, experience, | 16 | | character, and general
fitness of the applicant are such | 17 | | as to command the confidence of the public
and to warrant | 18 | | the belief that the business will be operated lawfully and
| 19 | | fairly and within the provisions and purposes of this Act; | 20 | | and
| 21 | | (2) that the applicant has submitted such other | 22 | | information as the
Secretary may deem necessary.
| 23 | | (c) A license shall be issued for no longer than one year, | 24 | | and no renewal
of a license may be provided if a licensee has | 25 | | substantially violated this
Act and has not cured the |
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| 1 | | violation to the satisfaction of the Department.
| 2 | | (d) A licensee shall appoint, in writing, the Secretary as | 3 | | attorney-in-fact
upon whom all lawful process against the | 4 | | licensee may be served with the
same legal force and validity | 5 | | as if served on the licensee. A copy of the
written | 6 | | appointment, duly certified, shall be filed in the office of | 7 | | the
Secretary, and a copy thereof certified by the Secretary | 8 | | shall be sufficient
evidence to subject a licensee to | 9 | | jurisdiction in a court of law. This appointment shall remain | 10 | | in effect while any liability remains
outstanding in this | 11 | | State against the licensee. When summons is served upon
the | 12 | | Secretary as attorney-in-fact for a licensee, the Secretary | 13 | | shall immediately
notify the licensee by registered mail, | 14 | | enclosing the summons and specifying
the hour and day of | 15 | | service.
| 16 | | (e) A licensee must pay an initial annual fee of $1,250 and | 17 | | an annual renewal fee as set forth in the following: $1,000. | |
18 | | TOTAL TRANSACTIONS | RENEWAL FEE | |
19 | | 500 or less .................... | $500 | |
20 | | More than 500 and | | |
21 | | up to and including
1,000 ...... | 22 | | | $500 plus $10 per
50 transactions in excess of
500 transactions | |
23 | | More than 1,000 and | | |
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| 1 | | up to and including
10,000 ..... | 2 | | | $1,000 plus $5 per
100 transactions in excess of
1,000 transactions | |
3 | | More than 10,000 and | | |
4 | | up to and including
100,000 .... | 5 | | | $1,450 plus $2.50 per
1,000 transactions in excess of
10,000 transactions | |
6 | | More than 100,000 .............. | 7 | | | $1,675 plus $1.25
per 10,000 transactions in excess of
100,000 transactions | | | |
| 8 | | As used in this Section, "transactions" means loans made | 9 | | or acquired pursuant to this Act during the calendar year | 10 | | preceding the calendar year for which a licensee seeks to | 11 | | renew its license. | 12 | | | | | In addition to the
license fee, the reasonable expense of | 13 | | any examination or hearing
by the Secretary under any | 14 | | provisions of this Act shall be borne by
the licensee. If a | 15 | | licensee fails to renew its license by December 1,
its license
| 16 | | shall automatically expire on December 31 | | | ; however, the | 17 | | Secretary, in his or her discretion,
may reinstate an expired | 18 | | license upon:
| 19 | | (1) payment of the annual fee within 30 days of the | 20 | | date of
expiration; and
| 21 | | (2) proof of good cause for failure to renew ; and .
| 22 | | (3) payment of an additional fee for failure to renew | 23 | | in a timely manner as determined by the Secretary. |
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| 1 | | (f) Not more than one place of business shall be | 2 | | maintained under the
same license, but the Secretary may issue | 3 | | more than one license to the same
licensee upon compliance | 4 | | with all the provisions of this Act governing
issuance of a | 5 | | single license. The location, except those locations already | 6 | | in
existence as of June 1, 2005, may not be within one mile of | 7 | | a
horse race track subject to the Illinois Horse Racing Act of | 8 | | 1975,
within one mile of a facility at which gambling is | 9 | | conducted under the Illinois
Gambling Act, within one mile of | 10 | | the location at which a
riverboat subject to the Illinois | 11 | | Gambling Act docks, or within one mile of
any State of Illinois | 12 | | or United States military base or naval installation.
| 13 | | (g) No licensee shall conduct the business of making loans | 14 | | under this
Act within any office, suite, room, or place of | 15 | | business in which (1) any loans are offered or made under the | 16 | | Consumer Installment Loan Act other than title secured loans | 17 | | as defined in subsection (a) of Section 15 of the Consumer | 18 | | Installment Loan Act and governed by Title 38, Section 110.330 | 19 | | of the Illinois Administrative Code or (2) any other
business | 20 | | is solicited or engaged in unless the other business is | 21 | | licensed by the Department or, in the opinion of the | 22 | | Secretary, the
other business would not be contrary to the | 23 | | best interests of consumers and
is authorized by the Secretary | 24 | | in writing.
| 25 | | (g-5) Notwithstanding subsection (g) of this Section, a | 26 | | licensee may obtain a license under the Consumer Installment |
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| 1 | | Loan Act (CILA) for the exclusive purpose and use of making | 2 | | title secured loans, as defined in subsection (a) of Section | 3 | | 15 of CILA and governed by Title 38, Section 110.300 of the | 4 | | Illinois Administrative Code. A licensee may continue to | 5 | | service Consumer Installment Loan Act loans that were | 6 | | outstanding as of the effective date of this amendatory Act of | 7 | | the 96th General Assembly. | 8 | | (h) The Secretary shall maintain a list of licensees that | 9 | | shall be
available to interested consumers and lenders and the | 10 | | public. The Secretary
shall maintain a toll-free number | 11 | | whereby consumers may obtain
information about licensees. The | 12 | | Secretary shall also establish a complaint
process under which | 13 | | an aggrieved consumer
may file a complaint against a licensee | 14 | | or non-licensee who violates any
provision of this Act.
| 15 | | (Source: P.A. 100-958, eff. 8-19-18; 101-31, eff. 6-28-19.)
| 16 | | Section 99. Effective date. This Act takes effect upon | 17 | | becoming law.
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