Full Text of HB5056 93rd General Assembly
HB5056eng 93RD GENERAL ASSEMBLY
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HB5056 Engrossed |
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LRB093 21020 SAS 47033 b |
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| AN ACT concerning financial regulation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Transmitters of Money Act is amended by | 5 |
| changing Sections 40, 45, and 75 as follows:
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| (205 ILCS 657/40)
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| Sec. 40. Renewals of license.
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| (a) As a condition for renewal of a license,
a
licensee | 9 |
| must submit to the Director, and the Director must receive, on | 10 |
| or
before December 1 of each year, an
application for renewal | 11 |
| made in writing and under oath on a form
prescribed by the
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| Director. A licensee whose application for
renewal is not | 13 |
| received by the Department on or
before December 31 shall not | 14 |
| have its license renewed and
shall be required to submit to the | 15 |
| Director an application for a new license in
accordance with | 16 |
| Section 25. Upon a showing of good cause, the Director may
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| extend the deadline for the filing of an application for | 18 |
| renewal. The
application for renewal of a license shall contain | 19 |
| or be accompanied by all of
the
following:
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| (1) The name of the licensee and the address of the | 21 |
| principal place of
business of the licensee.
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| (2) (Blank)
A list of all locations where the licensee | 23 |
| is conducting business
under its license and a list of all | 24 |
| authorized sellers through whom the
licensee is conducting | 25 |
| business under its license, including the name and
business | 26 |
| address of each authorized seller .
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| (3) Audited financial statements covering the past | 28 |
| year of operations,
prepared in accordance with generally | 29 |
| accepted accounting principles, showing
the financial | 30 |
| condition of the licensee. The licensee shall submit the | 31 |
| audited
financial statement after the application for
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| renewal has been approved. The audited financial statement |
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LRB093 21020 SAS 47033 b |
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| must be received
by the Department no later than 120 days | 2 |
| after the end of the licensee's fiscal
year. If the | 3 |
| licensee is a wholly owned subsidiary or is eligible to
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| file consolidated federal income tax returns with its | 5 |
| parent, the licensee may
submit unaudited financial | 6 |
| statements if accompanied by the audited financial
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| statements of the parent company for its most recently | 8 |
| ended year.
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| (4) A statement of the dollar amount and number of | 10 |
| money transmissions and
payment
instruments sold, issued, | 11 |
| exchanged, or transmitted in this State by the
licensee and
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| its authorized sellers for the past year.
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| (5) A statement of the dollar amount of uncompleted | 14 |
| money transmissions
and
payment
instruments outstanding or | 15 |
| in transit, in this State, as of the most recent
quarter | 16 |
| available.
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| (6) The annual license renewal fees and any penalty | 18 |
| fees as provided by
Section 45 of this Act.
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| (7) Evidence sufficient to prove to the satisfaction of | 20 |
| the Director that
the licensee has complied with all | 21 |
| requirements under Section 20 relating to
its net worth,
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| under Section 30 relating to its surety bond or other | 23 |
| security,
and under Section 50 relating to permissible | 24 |
| investments.
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| (8) A statement of a change in information provided by | 26 |
| the licensee in its
application for a license or its | 27 |
| previous applications for renewal including,
but not | 28 |
| limited to, new directors, officers, authorized sellers, | 29 |
| or clearing
banks and material changes in the operation of | 30 |
| the licensee's business.
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| (b) Each licensee must submit to the Director as of the | 32 |
| close of business on December 31 of each year a written | 33 |
| description of the licensee's general procedures by which it | 34 |
| intends to enter into contracts to engage in money transmission | 35 |
| in this State. This description must include the licensee's | 36 |
| policies and procedures and other details regarding all of the |
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| following matters: | 2 |
| (1) The number of authorized sellers and projected | 3 |
| sales volume for travelers checks, money orders and all | 4 |
| other transmission instruments sold. | 5 |
| (2) The procedures for authorized seller selection, | 6 |
| including the method of ascertaining the authorized | 7 |
| sellers' credit standing. | 8 |
| (3) The procedures that authorized sellers shall | 9 |
| follow relating to: | 10 |
| (A) recordkeeping; | 11 |
| (B) safeguarding travelers checks, money orders, | 12 |
| and all other instruments or orders for the | 13 |
| transmission or payment of money; | 14 |
| (C) remittance of proceeds of sales of travelers | 15 |
| checks, money orders, and all other instruments or | 16 |
| orders for transmission or for payment of money sold to | 17 |
| the public, including the time within which such | 18 |
| proceeds are required to be remitted to the licensee | 19 |
| and remittance procedures; and | 20 |
| (D) reporting procedures to be followed by | 21 |
| authorized sellers when reporting to the licensee the | 22 |
| sale of travelers checks, money orders, and all other | 23 |
| instruments or orders for the transmission or payment | 24 |
| of money sold to the public, including but not limited | 25 |
| to the time within which such sales are to be reported | 26 |
| to the licensee, and procedures for reporting such | 27 |
| sales. | 28 |
| (4) Procedures for distributing policies and | 29 |
| procedures pertaining to authorized sellers and the | 30 |
| licensee's program to ensure authorized sellers' | 31 |
| compliance. | 32 |
| (5) The licensee's policy relating to loans to and | 33 |
| investment in authorized sellers except loans and | 34 |
| investments made by a regulated financial institution in | 35 |
| the ordinary course of its business. | 36 |
| (6) Such other information and documentation as the |
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| Director may require.
Such information shall be provided | 2 |
| within 45 days of December 31, and at such other times as | 3 |
| the Director may require. | 4 |
| In addition, each licensee shall submit to the Director as | 5 |
| of the close of business on December 31 of each year a listing | 6 |
| in alphabetical order of its authorized sellers in this State | 7 |
| showing their full names and addresses and licensee assigned | 8 |
| identification number grouped by the category of transmission | 9 |
| activity the licensee has authorized the authorized sellers to | 10 |
| conduct on its behalf. | 11 |
| (c) Where possible, all information required to be provided | 12 |
| under this Section must be provided by electronic means.
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| (Source: P.A. 92-400, eff. 1-1-02.)
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| (205 ILCS 657/45)
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| Sec. 45. Fees.
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| (a) The Director shall charge and collect fees,
which shall | 17 |
| be nonrefundable unless otherwise indicated, in accordance | 18 |
| with the
provisions of this Act as follows:
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| (1) For applying for a license, an application fee of | 20 |
| $100 and a
license
fee, which shall be refunded if the | 21 |
| application is denied or withdrawn, of
$100 plus $50
$10
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| for each location at which the applicant and its authorized
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| sellers are conducting business or propose to conduct | 24 |
| business excepting the
applicant's principal place of | 25 |
| business.
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| (2) For renewal of a license, a fee of $100 plus $50
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| $10 for each location at
which the licensee and its | 28 |
| authorized sellers are conducting business, except
the | 29 |
| licensee's principal place of business.
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| (3) For an application to add an authorized seller | 31 |
| location, $50
$10 for each
authorized seller location.
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| (4) For service of process or other notice upon the | 33 |
| Director as provided
by
Section 100, a fee of $10.
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| (5) For an application for renewal of a license | 35 |
| received by the
Department after
December 1, a penalty fee |
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| of $10 per day for each day after December
1 in addition to | 2 |
| any other
fees required under this Act unless an extension | 3 |
| of time has been granted by
the
Director.
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| (6) For failure to submit financial statements as | 5 |
| required by Section 40,
a penalty fee of $10 per day for | 6 |
| each day the
statement is late
unless an extension of time | 7 |
| has been granted by the Director.
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| (b) Beginning one year after the effective date of this | 9 |
| Act,
the Director may, by rule, amend the fees set forth in | 10 |
| this Section.
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| (c) All moneys received by the Department under this Act | 12 |
| shall be deposited
into the Financial Institutions Fund.
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| (Source: P.A. 92-400, eff. 1-1-02.)
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| (205 ILCS 657/75)
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| Sec. 75. Authorized sellers.
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| (a) A licensee may conduct the business regulated
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| this Act at one or more locations in this State through | 18 |
| authorized
sellers designated by the licensee.
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| (b) A licensee shall not allow a person to act as its | 20 |
| authorized seller
until all applicable requirements of this Act | 21 |
| have been complied with and the
name and address of the person, | 22 |
| on a form prescribed by the Director, along
with all applicable | 23 |
| fees have been submitted to the Department by the licensee.
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| (c) A licensee shall enter into a contract with its | 25 |
| authorized
seller detailing the nature and scope of the | 26 |
| relationship between the licensee
and the authorized seller. | 27 |
| The contract between a licensee and an authorized
seller must | 28 |
| require the authorized seller to operate in full compliance | 29 |
| with
the laws of this State and of the United States.
The | 30 |
| licensee shall provide the Director
with the sample written | 31 |
| contract.
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| Each written contract between a licensee and an authorized | 33 |
| seller entered into or renewed after the effective date of this | 34 |
| amendatory Act of the 93rd General Assembly shall provide all | 35 |
| of the following: |
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| (1) A description of the category or categories of | 2 |
| money transmission activity the licensee is authorized to | 3 |
| lawfully engage in under its license that it may do through | 4 |
| an agent. | 5 |
| (2) An acknowledgment that the Director reserves the | 6 |
| right to inspect, with or without prior notice to the | 7 |
| licensee or the licensee's authorized sellers, the books | 8 |
| and records of the authorized sellers of the licensee. | 9 |
| (3) That authorized sellers shall not sell any | 10 |
| travelers check, money order, or other money transmission | 11 |
| instrument in this State unless the name of the licensee | 12 |
| shall clearly appear on the face of the instrument and the | 13 |
| licensee shall not condition its engagement as obligor | 14 |
| under the payment instrument upon the remittance of the | 15 |
| proceeds of sale from the authorized seller. | 16 |
| (4) That an authorized seller shall not sell any | 17 |
| travelers check, money order, or other money transmission | 18 |
| instrument in this State unless the authorized seller has | 19 |
| provided the Director with a written and irrevocable | 20 |
| consent to examine, have access to, and retain copies of | 21 |
| all of its books and records, wherever maintained, relating | 22 |
| to these activities. | 23 |
| (5) That authorized sellers in this State are under a | 24 |
| duty to act only as authorized under the agency contract | 25 |
| and that an authorized seller that exceeds its authority is | 26 |
| subject to cancellation of the agency contract and may | 27 |
| result in further disciplinary action against the licensee | 28 |
| by the Director. | 29 |
| For each contract entered into before the effective date of | 30 |
| this amendatory Act of the 93rd General Assembly, a notice | 31 |
| containing the information in items (1) through (5) of this | 32 |
| subsection shall be sent by each licensee to each of its agents | 33 |
| in Illinois within 45 days after the effective date of this | 34 |
| amendatory Act of the 93rd General Assembly.
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| (d) The financial responsibility of a licensee for the | 36 |
| actions of its
authorized seller shall not exceed the amount of |
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| funds received by the
authorized seller on behalf of its | 2 |
| licensee for transmission.
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| (e) An authorized seller has an affirmative duty not to (1) | 4 |
| commit fraud or
misrepresentation and (2) submit fraudulent | 5 |
| statements to the licensee. A
licensee shall, as soon as | 6 |
| practical, report to the Director and to any other
appropriate
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| official of this State or of the United States when it has | 8 |
| probable cause to
believe an authorized seller has violated the | 9 |
| affirmative duty set forth in
this subsection.
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| (f) The licensee shall require the authorized seller to | 11 |
| hold in trust for
the licensee from the moment of receipt the | 12 |
| proceeds of any business transacted
under this Act in an amount | 13 |
| equal to the amount of proceeds due the
licensee less the | 14 |
| amount due the authorized seller. The funds shall remain
the | 15 |
| property of the licensee whether or not commingled by the | 16 |
| authorized seller
with its own funds. In the event that the | 17 |
| license is revoked by the Director,
all proceeds then held in | 18 |
| trust by authorized sellers of that licensee shall be
deemed to | 19 |
| have been assigned to the Director. If an
authorized seller | 20 |
| fails to remit funds to the licensee in accordance with the
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| time
specified in its contract with the licensee, the licensee | 22 |
| may bring
a civil action against the authorized seller for 3 | 23 |
| times the actual damages.
The Director may provide by rule a | 24 |
| maximum remittance time for authorized
sellers.
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| (g) A licensee shall, upon discovery, immediately report to | 26 |
| the Director,
and an authorized seller, shall upon discovery, | 27 |
| immediately report to its
licensee, the
theft or loss of any | 28 |
| payment instrument from the licensee or authorized seller
in | 29 |
| Illinois, having a value in excess of $100 or an aggregate | 30 |
| value of $1,000
in any 3 month period.
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| (h) Upon suspension or revocation of a license, the failure | 32 |
| of a licensee to
renew its license, or the denial of the | 33 |
| renewal of a license, the licensee
shall
notify its authorized | 34 |
| sellers of the Director's action and require them
to | 35 |
| immediately cease operation as its authorized sellers.
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| (i) A licensee shall report the
removal of an authorized |
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| seller location or the termination of operations of an
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| authorized seller location
to the Director on a quarterly | 3 |
| basis.
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| (j) No authorized seller shall act outside its scope of | 5 |
| authority as defined
by this Act and by its contract with the | 6 |
| licensee with regard to any
transaction regulated by this Act.
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| (Source: P.A. 88-643, eff. 1-1-95.)
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